EXHIBIT 11.1 CARRIAGE SERVICES, INC. COMPUTATION OF PER SHARE EARNINGS (UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE DATA) Earnings per share for the three and nine month periods ended September 30, 2000 and 1999 is calculated based on the weighted average number of common and common equivalent shares outstanding during the period as prescribed by SFAS 128. The following table sets forth the computation of the basic and diluted earnings per share for the three and nine month periods ended September 30, 1999 and 2000: THREE MONTHS NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ------------------- -------------------- 1999 2000 1999 2000 -------- -------- -------- -------- Net income before extraordinary item ......................... $ 1,739 $(11,051) $ 9,211 $ (7,979) Extraordinary item ........................................... -- -- (200) -- -------- -------- -------- -------- Net income ................................................... 1,739 (11,051) 9,011 (7,979) Preferred stock dividends .................................... 25 20 78 61 -------- -------- -------- -------- Net income available to common stockholders for basic EPS computation ................................... 1,714 (11,071) 8,933 (8,040) Effect of dilutive securities ................................ -- -- -- -- -------- -------- -------- -------- Net income available to common stockholders for diluted EPS computation ............................................ $ 1,714 $(11,071) $ 8,933 $ (8,040) ======== ======== ======== ======== Weighted average number of common shares outstanding for basic EPS computation ...................................... 15,906 16,084 15,864 16,030 Effect of dilutive securities: Stock options ........................................... 77 -- 185 -- Assumed conversion of preferred stock ................... -- -- -- -- -------- -------- -------- -------- Weighted average number of common and common equivalent shares outstanding for diluted EPS computation ................. 15,983 16,084 16,049 16,030 ======== ======== ======== ======== Basic earnings per share: Net income before extraordinary item .................... $ .11 $ (.69) $ .58 $ (.50) Extraordinary item ...................................... -- -- (.01) -- -------- -------- -------- -------- Net income .............................................. $ .11 $ (.69) $ .57 $ (.50) ======== ======== ======== ======== Diluted earnings per share: Net income before extraordinary item .................... $ .11 $ (.69) $ .57 $ (.50) Extraordinary item ...................................... -- -- (.01) -- -------- -------- -------- -------- Net income .............................................. $ .11 $ (.69) $ .56 $ (.50) ======== ======== ======== ======== 21