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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2008 2007 2006 2005 2004
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Earnings from continuing operations
before income taxes $18,714(3) $57,413(4) $58,734(5) $11,281(6)(7) $48,527(8)
Fixed charges:
Interest charges (1) 24,253 26,023 30,203 30,793 47,735
Interest portion of lease expense (2) 1,428 1,470 1,604 1,567 1,918
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Total fixed charges 25,681 27,493 31,807 32,360 49,653
Earnings from continuing operations
before income taxes and fixed charges,
less capitalized interest $44,257(3) $83,948(4) $89,971(5) $43,308(6)(7) $97,780(8)
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Ratio of earnings to fixed charges 1.72(3) 3.05(4) 2.83(5) 1.34(6)(7) 1.97(8)
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(1) Includes capitalized interest expense of $138, $958, $570, $333 and $400
for 2008, 2007, 2006, 2005 and 2004, respectively.
(2) The interest portion of lease expense is one-third of total lease expense.
(3) Includes a charge of $2,297 for net expenses related to Hurricanes Katrina
and Ike, a charge of $25,952 related to impairment of goodwill, a $13,281
charge related to the estimated probable obligation to fund the cemetery
perpetual care trust net realized losses and ($353) of gains on
dispositions, net of impairment losses.
(4) Includes a charge of $2,533 for net expenses related to Hurricane Katrina,
a charge of $580 for separation charges related to the July 2005
restructuring of the Company's divisions and retirement of an executive
officer, ($44) of gains on dispositions, net of impairment losses and $677
for the loss on early extinguishment of debt related to the June 2007
senior convertible debt transaction.
(5) 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 ($153) of gains on dispositions, net of impairment losses.
(6) Excludes cumulative effect of change in accounting principle of $153,180
(net of a $101,061 income tax benefit).
(7) 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, $1,311 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.
(8) Includes a charge of $3,427 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.
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.
138