Exhibit 12
STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
NINE MONTHS
ENDED YEARS ENDED OCTOBER 31,
JULY 31, ---------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
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Earnings (loss) from operations
before income taxes.................. $ 54,964(2) $ (69,470)(3) $ 49,321(4) $ (196,301)(5)(6) $ 105,187 $ 142,551(7)
Fixed charges:
Interest charges (1)................. 36,276 53,797 62,655 64,235 62,748 55,543
Interest portion of lease expense.... 1,425 1,933 2,258 2,882 3,379 2,859
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Total fixed charges.................... 37,701 55,730 64,913 67,117 66,127 58,402
Earnings (loss) from operations before
income taxes and fixed charges, less
Capitalized interest................. $ 92,365(2) $ (14,059)(3) $ 113,918(4) $ (129,847)(5)(6) $ 169,960 $ 200,118(7)
========== ========= ========= ========== ========= =========
Ratio of earnings to fixed charges..... 2.45(2) -(3) 1.75(4) -(5)(6) 2.57 3.43(7)
========== ========= ========= ========== ========= =========
(1) Includes capitalized interest expense of $300 for the nine months ended
July 31, 2004 and $319, $316, $663, $1,354, and $835 for 2003, 2002, 2001,
2000 and 1999, respectively.
(2) Includes separation charges of $3.2 million for costs related to workforce
reductions and separation pay for former executive officers and a charge
of $.5 million for gains on asset disposals.
(3) 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 for the impairment
charges related to goodwill and long-lived asset impairment. 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.
(4) Includes a noncash charge of $18,500 recorded in connection with the
writedown of assets held for sale.
(5) Excludes cumulative effect of change in accounting principles of $250,004
(net of a $166,669 income tax benefit).
(6) 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.
(7) 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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