Carriage Services (CSV) 10-K 2008 FY Annual report

EXHIBIT 12

CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited and in thousands)

	2004		2005			2006		2007		2008
Fixed charges:
Interest expense	$	15,972	$	24,770		$	17,794	$	17,630	$	17,606
Amortization of capitalized expenses related to debt		924		754			714		714		725
Rental expense factor		1,208		1,268			1,245		1,235		1,278
Total fixed charges before capitalized interest		18,104		26,792			19,753		19,579		19,609
Capitalized interest		24		46			50		59		56
Total fixed charges	$	18,128	$	26,838		$	19,803	$	19,638	$	19,665
Earnings available for fixed charges:
Earnings (loss) before income taxes and cumulative effect of change in accounting principle	$	10,401	$	(1,939	)	$	5,842	$	12,317	$	3,529
Add fixed charges before capitalized interest	18,104		26,792			19,753		19,579		19,609
Total earnings available for fixed charges	$	28,505	$	24,853		$	25,595	$	31,896	$	23,138
Ratio of earnings to fixed charges (1)		1.57		0.93			1.29		1.62		1.18

(1) For purposes of computing the ratios of earnings to fixed charges and earnings to fixed charges plus dividends: (i) earnings consist of income from continuing operations before provision for income taxes plus fixed charges (excluding capitalized interest) and (ii) “fixed charges” consist of interest expensed and capitalized, amortization of debt discount and expense relating to indebtedness and the portion of rental expense representative of the interest factor attributable to leases for rental property. There were no dividends paid or accrued on the Company’s Common Stock during the periods presented above.