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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2005 2004 2003 2002 2001
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(RESTATED) (RESTATED) (RESTATED) (RESTATED)
Earnings (loss) from continuing
operations before income taxes............ $ 12,108(3)(4) $ 49,231(5) $ 4,656(6) $ 17,625(7)(8) $ (229,262)(9)(10)
Fixed charges:
Interest charges (1) .................. 30,793 47,735 54,156 62,296 64,235
Interest portion of lease expense(2)... 1,604 1,918 1,933 2,258 2,882
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Total fixed charges ....................... 32,397 49,653 56,089 64,554 67,117
Earnings (loss) from continuing operations
before income taxes and fixed charges,
less capitalized interest ................ $ 44,172(3)(4) 98,484(5) $60,426(6) $ 81,863(7)(8) $ (162,808)(9)(10)
========= ======== ======= ======== ==========
Ratio of earnings to fixed charges ........ 1.36(3)(4) 1.98(5) 1.08(6) 1.27(7)(8) --(9)(10)
========= ======== ======= ======== ==========
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(1) Includes capitalized interest expense of $333, $400, $319, $316, and $663
for 2005, 2004, 2003, 2002 and 2001, respectively.
(2) The interest portion of lease expense is one-third of total lease expense.
(3) Excludes cumulative effect of change in accounting principle of $153,180
(net of a $101,061 income tax benefit).
(4) Includes a charge of $9,366 for expenses related to Hurricane Katrina, a
charge of $1,507 for separation charges related to the July 2005
restructuring of the Company's divisions, $1,297 of gains on disposition,
net of impairment losses and $32,822 for the loss on early extinguishment
of debt related to the 2005 debt refinancings.
(5) 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 ($204) of gains on dispositions, net of
impairment losses.
(6) 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 $10,206 recorded in connection
with long-lived asset impairment and $2,450 of separation payments to
former executives.
(7) Includes a noncash charge of $18,500 recorded in connection with the
write-down of assets held for sale.
(8) Excludes cumulative effect of change in accounting principle of $193,090
(net of a $16,310 income tax benefit).
(9) Excludes cumulative effect of change in accounting principles of $248,666
(net of a $167,562 income tax benefit).
(10) 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 $229,925 in pretax earnings
would have been required to eliminate the coverage deficiency.
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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