EXHIBIT 12.1
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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2004 2003 2002 2001 2000
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Earnings (loss) from continuing operations
before income taxes................................ $ 68,680(2) $ (54,484)(3) $ 47,461(4) $ (197,903)(5)(6) $ 103,319
Fixed charges:
Interest charges (1)............................... 47,735 53,797 62,655 64,235 62,748
Interest portion of lease expense.................. 1,918 1,933 2,258 2,882 3,379
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Total fixed charges.................................. 49,653 55,730 64,913 67,117 66,127
Earnings (loss) from continuing operations before
income taxes and fixed charges, less capitalized
interest............................................ $ 117,933(2) $ 927(3) $ 112,058(4) $ (131,449)(5)(6) $ 168,092
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Ratio of earnings to fixed charges................... 2.38(2) --(3) 1.73(4) --(5)(6) 2.54
============ ========== ========= ========== =========
(1) Includes capitalized interest expense of $400, $319, $316, $663 and $1,354
for 2004, 2003, 2002, 2001 and 2000, respectively.
(2) Includes a charge of $3,435 for severance and other charges relating to
the workforce reduction announced in December 2003 and separation payments
to a former executive and $564 of gains on dispositions, net of impairment
losses.
(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, a noncash charge of $73,000 recorded in connection
with goodwill impairment, a noncash charge of $18,972 recorded in
connection with long-lived asset impairment and $2,450 of separation
payments to former executives. As a result of these charges, the Company's
earnings for fiscal year 2003 were insufficient to cover its fixed
charges, and an additional $54,803 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
write-down 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
write-down 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 $198,556 in pretax earnings
would have been required to eliminate the coverage deficiency.
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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.
STEWART ENTERPRISES, INC.
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AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
THREE MONTHS THREE MONTHS
ENDED ENDED
JANUARY 31, JANUARY 31,
2005 2004
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Earnings from operations
before income taxes.................. $ 15,334(2) $ 18,495(3)
Fixed charges:
Interest charges (1)................. 10,389 12,621
Interest portion of lease expense.... 392 475
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Total fixed charges.................... 10,781 13,096
Earnings from operations before
income taxes and fixed charges, less
capitalized interest................. $ 26,102(2) $ 31,491(3)
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Pro forma ratio of earnings
to fixed charges..................... 2.42(2) 2.40(3)
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(1) Includes capitalized interest expense of $13 and $100 for the three months
ended January 31, 2005 and 2004, respectively.
(2) Includes $331 of gains on dispositions, net of impairment losses and a
charge of $2,651 for the loss on early extinguishment of debt.
(3) Includes a charge of $1,993 for severance and other costs related to
workforce reductions announced in December 2003 and $603 of gains on
dispositions, net of impairment losses.
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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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