Exhibit 12
STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------------------
2005 2004 2003 2002 2001 2000
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Earnings (loss) from continuing
operations before income taxes ............ $ 9,001(2)(3) $ 68,680(4) $ (54,484)(5) $ 47,461(6) $(197,903)(7)(8) $ 103,319
Fixed charges:
Interest charges (1) ...................... 17,194 47,735 53,797 62,655 64,235 62,748
Interest portion of lease expense ......... 784 1,918 1,933 2,258 2,882 3,379
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Total fixed charges ......................... 17,978 49,653 55,730 64,913 67,117 66,127
Earnings (loss) from continuing
operations before income taxes and
fixed charges, less capitalized interest... $ 26,832(2)(3) $117,933(4) $ 927(5) $112,058(6) $(131,449)(7)(8) $ 168,092
======== ======== ========= ======== ========= =========
Ratio of earnings to fixed charges .......... 1.49(2)(3) 2.38(4) -(5) 1.73(6) - (7)(8) 2.54
======== ======== ========= ======== ========= =========
(1) Includes capitalized interest expense of $147 for the six months ended
April 30, 2005 and $400, $319, $316, $663 and $1,354 for 2004, 2003, 2002,
2001 and 2000, respectively.
(2) Excludes cumulative effect of change in accounting principle of $141,318
(net of a $93,235 income tax benefit).
(3) Includes $1,147 of gains on dispositions and impairment (losses), net and
a charge of $32,708 for the loss on early extinguishment of debt.
(4) Includes a charge of $3,435 for severance and other costs related to
workforce reductions announced in December 2003 and separation payments to
a former executive officer, and $564 of gains on dispositions and
impairment (losses), net.
(5) 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 executive officers. 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.
(6) Includes a noncash charge of $18,500 recorded in connection with the
write-down of assets held for sale.
(7) Excludes cumulative effect of change in accounting principles of $250,004
(net of a $166,669 income tax benefit).
(8) 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.
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