EXHIBIT 11.1
CARRIAGE SERVICES, INC.
COMPUTATION OF PER SHARE EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Loss per share is calculated based on the weighted average number of common
and common equivalent shares outstanding during the period using guidance
provided by the SEC for companies contemplating an initial public offering. Loss
per share has been presented as if the reverse stock split had occurred at the
beginning of the earliest period presented. Loss per common and common
equivalent share for the three and six month periods ending June 30, 1996 and
1995 was as follows:
For the three months For the six months
ended June 30, ended June 30,
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1996 1995 1996 1995
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(unaudited) (unaudited) (unaudited)
Net (loss) ......................................................... $ (468) $ (367) $ (661) $ (698)
Preferred stock dividend requirements .............................. 91 -- 101 --
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Net (loss) attributable to Common stockholders ..................... $ (559) $ (367) $ (762) $ (698)
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Common shares outstanding(a) ....................................... 2,520 2,520 2,520 2,520
Common equivalent shares:
Stock options, treasury stock method(b) .................. 23 23 23 23
Assumed conversion of preferred stock(c) ................. 1,973 1,000 1,969 1,000
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Total weighted average common and common
equivalent shares outstanding ................................. 4,516 3,543 4,512 3,543
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(Loss) per common and common equivalent share ...................... $ (.12) $ (.10) $ (.17) $ (.20)
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(a) Effective January 1, 1994, the shareholders of three affiliated
companies which had common ownership and management exchanged their stock in
those companies for Common Stock of the Company. In this transaction, the assets
and liabilities were recorded at historical cost in a manner similar to a
pooling-of-interests. Accordingly, loss per share has been presented as if the
Common Stock has been outstanding for all periods presented at the conversion
rate utilized at January 1, 1994.
(b) In accordance with SEC's Staff Accounting Bulletin No., 83, the loss per
share has been presented assuming that all stock options granted by the Company
within one year of the Company's initial public offering have been outstanding
for all periods presented. The effect of such stock options has been calculated
using the "treasury stock" method (using an initial public offering price of
$13.50 per share) and has been included in the calculation of common equivalent
shares outstanding despite the fact that the effect of the assumed exercise of
such options is anti-dilutive.
(c) Pursuant to the terms of their respective agreements, the Company's
Series A, B and C Preferred Stocks automatically converted to Common Stock upon
the Company's initial public offering. Therefore, in accordance with SEC's
position relative to securities with these conversion characteristics, the
effect of such conversions has been reflected from the respective dates of
issuance of the preferred stocks in common equivalent shares outstanding,
despite the fact that the effect of the assumed conversion is anti-dilutive.