EXHIBIT 12
CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED AND IN THOUSANDS)
THREE
MONTHS ENDED
MARCH 31,
1996* 1997 1998 1999 2000** 2001
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Fixed charges:
Interest expense $ 4,347 $ 5,889 $ 9,720 $ 17,358 $ 20,705 $ 5,327
Amortization of capitalized
expenses related to debt 150 200 150 242 1,026 190
Rental expense 308 629 720 876 1,606 379
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Total fixed charges before
capitalized interest and
preferred stock dividends 4,805 6,718 10,590 18,476 23,337 5,896
Capitalized interest 250 450 600 686 770 125
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Total fixed charges 5,055 7,168 11,190 19,162 24,107 6,021
Preferred stock dividends 1,037 1,627 1,082 167 88 25
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Total fixed charges
plus preferred dividends 6,092 8,795 12,272 19,329 24,195 6,046
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Earnings (loss) available for fixed
charges:
Earnings (loss) before income taxes,
extraordinary item and cumulative
effect of change in accounting
principle 345 8,217 17,023 19,361 (101,035) 4,748
Add fixed charges before
capitalized interest and
preferred stock dividends 4,805 6,718 10,590 18,476 23,337 5,896
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Total earnings (loss) available
for fixed charges $ 5,150 $ 14,935 $ 27,613 $ 37,837 $ (77,698) $ 10,644
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Ratio of earnings (loss) to
fixed charges (1) 1.02 2.08 2.47 1.97 (3.22) 1.77
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Ratio of earnings (loss) to fixed
charges plus dividends (1) 0.85 1.70 2.25 1.96 (3.21) 1.76
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(1) For purposes of computing the ratios of earnings to fixed charges and
earnings to fixed charges plus dividends: (i) earnings consist of income
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.
* Earnings were inadequate to cover fixed charges. The coverage deficiency
was $942,000 for 1996.
** Earnings were inadequate to cover fixed charges. The coverage deficiency
was $101,893,000 for 2000.