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 six month periods ended June 30, 1999 and 1998 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 six month periods ended June 30, 1998 and 1999: THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ------------------- ------------------- 1998 1999 1998 1999 ------- -------- ------- -------- Net income before extraordinary item ................................. $ 1,803 $ 3,096 $ 4,449 $ 7,474 Extraordinary item ................................................... -- (200) -- (200) ------- -------- ------- -------- Net income ........................................................... 1,803 2,896 4,449 7,274 Preferred stock dividends ............................................ 151 28 301 56 ------- -------- ------- -------- Net income available to common stockholders for basic EPS computation 1,652 2,868 4,148 7,218 Effect of dilutive securities ........................................ -- -- 243 291 ------- -------- ------- -------- Net income available to common stockholders for diluted EPS computation ..................................................... $ 1,652 $ 2,868 $ 4,391 $ 7,509 ======= ======== ======= ======== Weighted average number of common shares outstanding for basic EPS computation ..................................................... 12,393 15,877 11,775 15,843 Effect of dilutive securities: Stock options ................................................... 488 458 377 424 Assumed conversion of preferred stock ........................... -- -- 722 714 ------- -------- ------- -------- Weighted average number of common and common equivalent shares outstanding for diluted EPS computation ......................... 12,881 16,335 12,874 16,981 ======= ======== ======= ======== Basic earnings per share: Net income before extraordinary item ............................ $ .13 $ .19 $ .35 $ .47 Extraordinary item .............................................. -- (.01) -- (.01) ------- -------- ------- -------- Net income ...................................................... $ .13 $ .18 $ .35 $ .46 ======= ======== ======= ======== Diluted earnings per share: Net income before extraordinary item ............................ $ .13 $ .19 $ .35 $ .45 Extraordinary item .............................................. -- (.01) -- (.01) ------- -------- ------- -------- Net income ...................................................... $ .13 $ .18 $ .35 $ .44 ======= ======== ======= ========