STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Exhibit 12
YEARS ENDED OCTOBER 31,
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2006 2005 2004 2003 2002
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Earnings from continuing operations before income
taxes............................................. $ 58,797 (3) $ 11,991 (4)(5) $ 49,132 (6) $ 5,173 (7) $ 17,639 (8)(9)
Fixed charges:
Interest charges (1).............................. 30,203 30,793 47,735 53,962 62,296
Interest portion of lease expense (2)............. 1,604 1,567 1,918 1,933 2,258
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Total fixed charges................................. 31,807 32,360 49,653 55,895 64,554
Earnings from continuing operations before income
taxes and fixed charges, less capitalized interest $ 90,034 (3) $ 44,018 (4)(5) $ 98,385 (6) $ 60,749 (7) $ 81,877 (8)(9)
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Ratio of earnings to fixed charges.................. 2.83 (3) 1.36 (4)(5) 1.98 (6) 1.09 (7) 1.27 (8)(9)
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(1) Includes cap italized interest expense of $570, $333, $400, $319 and $316
for 2006, 2005, 2004, 2003 and 2002, respectively.
(2) The interest portion of lease expense is one-third of total lease expense.
(3) Includes a net recovery of $1,628 related to Hurricane Katrina expenses,
business interruption insurance proceeds of $3,169 related to Hurricane
Katrina, a charge of $991 for separation charges related to the July 2005
restructuring of the Company's divisions and retirement of an executive
officer and ($353) of gains on dispositions, net of impairment losses.
(4) Excludes cumulative effect of change in accounting principle of $153,180
(net of a $101,061 income tax benefit).
(5) Includes a charge of $9,366 for net expenses related to Hurricane Katrina,
a charge of $1,507 for separation charges related to the July 2005
restructuring of the Company's divisions, $1,234 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.
(6) 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 ($225) of gains on dispositions, net of
impairment losses.
(7) 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 $9,562 recorded in connection
with long-lived asset impairment and $2,450 of separation payments to
former executives.
(8) Includes a noncash charge of $18,500 recorded in connection with the
write-down of assets held for sale.
(9) Excludes cumulative effect of change in accounting principle of $193,090
(net of a $16,310 income tax benefit).
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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