<Page> EXHIBIT 12 CARRIAGE SERVICES, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED AND IN THOUSANDS) <Table> <Caption> NINE MONTHS ENDED SEPTEMBER 30, 1996* 1997 1998 1999 2000** 2001 ----------- ----------- ----------- ----------- ----------- ------------- Fixed charges: Interest expense $ 4,347 $ 5,889 $ 9,720 $ 17,358 $ 20,705 $ 15,359 Amortization of capitalized expenses related to debt 150 200 150 242 1,026 570 Rental expense 308 629 720 876 1,606 1,127 ----------- ----------- ----------- ----------- ----------- ----------- Total fixed charges before capitalized interest and preferred stock dividends 4,805 6,718 10,590 18,476 23,337 17,056 Capitalized interest 250 450 600 686 770 250 ----------- ----------- ----------- ----------- ----------- ----------- Total fixed charges 5,055 7,168 11,190 19,162 24,107 17,306 Preferred stock dividends 1,037 1,627 1,082 167 88 44 ----------- ----------- ----------- ----------- ----------- ----------- Total fixed charges plus preferred dividends 6,092 8,795 12,272 19,329 24,195 17,350 ----------- ----------- ----------- ----------- ----------- ----------- 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) 8,083 Add fixed charges before capitalized interest and preferred stock dividends 4,805 6,718 10,590 18,476 23,337 17,056 ----------- ----------- ----------- ----------- ----------- ----------- Total earnings (loss) available for fixed charges $ 5,150 $ 14,935 $ 27,613 $ 37,837 $ (77,698) $ 25,139 =========== =========== =========== =========== =========== =========== Ratio of earnings (loss) to fixed charges (1) 1.02 2.08 2.47 1.97 (3.22) 1.45 =========== =========== =========== =========== =========== =========== Ratio of earnings (loss) to fixed charges plus dividends (1) 0.85 1.70 2.25 1.96 (3.21) 1.45 =========== =========== =========== =========== =========== =========== </Table> (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 and preferred stock dividends by $942,000 for 1996. ** Earnings were inadequate to cover fixed charges and to cover fixed charges plus preferred stock dividends by $101,805,000 and $101,893,000, respectively, for 2000.