Exhibit 12
STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
YEARS ENDED OCTOBER 31,
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2003 2002 2001 2000 1999
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Earnings (loss) from operations
before income taxes................................ $(69,470)(2) $ 49,321(3) $(196,301)(4)(5) $105,187 $ 142,551(6)
Fixed charges:
Interest charges (1)............................... 53,797 62,655 64,235 62,748 55,543
Interest portion of lease expense.................. 1,933 2,258 2,882 3,379 2,859
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Total fixed charges.................................. 55,730 64,913 67,117 66,127 58,402
Earnings (loss) from operations before income
taxes and fixed charges, less capitalized
interest........................................... $(14,059)(2) $113,918(3) $(129,847)(4)(5) $169,960 $ 200,118(6)
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Ratio of earnings to fixed charges................... - (2) 1.75(3) - (4)(5) 2.57 3.43(6)
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(1) Includes capitalized interest expense of $319, $316, $663, $1,354, and $835
for 2003, 2002, 2001, 2000 and 1999, respectively.
(2) Includes a charge of $11,289 for the loss on early extinguishment of debt
recorded in connection with the redemption of the Remarketable Or Redeemable
Securities and a noncash charge of $107,300 recorded in connection with
goodwill impairment and long-lived asset impairment charges. As a result of
these charges, the Company's earnings for fiscal year 2003 were insufficient
to cover its fixed charges, and an additional $69,789 in pretax earnings
would have been required to eliminate the coverage deficiency.
(3) Includes a noncash charge of $18,500 recorded in connection with the
writedown of assets held for sale.
(4) Excludes cumulative effect of change in accounting principles of $250,004
(net of a $166,669 income tax benefit).
(5) Includes a noncash charge of $269,158 recorded in connection with the
writedowns of assets held for sale and other charges and a charge of $9,120
for the loss on early extinguishment of debt. As a result of these charges,
the Company's earnings for fiscal year 2001 were insufficient to cover its
fixed charges, and an additional $196,964 in pretax earnings would have been
required to eliminate the coverage deficiency.
(6) Excludes cumulative effect of change in accounting principle of $50,101 (net
of $28,798 income tax benefit).
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During the periods presented, the Company had no preferred stock
outstanding. Therefore, the ratio of earnings to combined fixed charges and
preference dividends was the same as the ratio of earnings to fixed charges for
each of the periods presented.
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