EXHIBIT 12
CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED AND IN THOUSANDS)
1997 1998 1999 2000* 2001
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Fixed charges:
Interest expense ........................... $ 5,689 $ 9,570 $ 17,116 $ 19,679 $ 19,585
Amortization of capitalized
expenses related to debt ................ 200 150 242 1,026 759
Rental expense ............................. 629 720 876 1,606 1,516
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Total fixed charges before
capitalized interest and
preferred stock dividends .................. 6,518 10,440 18,234 22,311 21,860
Capitalized interest ............................ 450 600 686 770 298
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Total fixed charges ........................ 6,968 11,040 18,920 23,081 22,158
Preferred stock dividends ....................... 1,627 1,082 167 88 46
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Total fixed charges
plus preferred dividends ................ $ 8,595 $ 12,122 $ 19,087 $ 23,169 $ 22,204
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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 .................................. $ 8,217 $ 17,023 $ 19,361 $(101,035) $ 11,253
Add fixed charges before
capitalized interest and
preferred stock dividends .................. 6,518 10,440 18,234 22,311 21,860
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Total earnings (loss) available
for fixed charges .......................... $ 14,735 $ 27,463 $ 37,595 $ (78,724) $ 33,113
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Ratio of earnings (loss) to
fixed charges (1) .......................... 2.11 2.49 1.99 (3.41) 1.49
========= ========= ========= ========= =========
Ratio of earnings (loss) to fixed
charges plus dividends (1) ................ 1.71 2.27 1.97 (3.40) 1.49
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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
$101,893,000 for 2000.