EXHIBIT 12
CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
--------
1995* 1996* 1997 1998 1999 2000*
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Fixed charges:
Interest expense ....................... $ 3,684 $ 4,347 $ 5,889 $ 9,720 $ 17,358 $ 15,638
Amortization of
capitalized expenses
related to debt ........................ 50 150 200 150 242 383
Rental expense ......................... 317 308 629 720 876 818
-------- -------- -------- -------- -------- --------
Total fixed charges before
capitalized interest and
preferred stock dividends .............. 4,051 4,805 6,718 10,590 18,476 16,839
Capitalized interest ......................... 175 250 450 600 686 550
-------- -------- -------- -------- -------- --------
Total fixed charges .................. 4,226 5,055 7,168 11,190 19,162 17,389
Preferred stock dividends .................... -- 1,037 1,627 1,082 167 72
-------- -------- -------- -------- -------- --------
Total fixed charges
plus preferred dividends ............. 4,226 6,092 8,795 12,272 19,329 17,461
-------- -------- -------- -------- -------- --------
Earnings available for fixed
charges: ............................... (1,800) 345 8,217 17,023 19,361 (9,365)
Add fixed charges before
capitalized interest and
preferred stock dividends .............. 4,051 4,805 6,718 10,590 18,476 16,839
-------- -------- -------- -------- -------- --------
Total earnings available for fixed charges ... $ 2,251 $ 5,150 $ 14,935 $ 27,613 $ 37,837 $ 7,474
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges(1) ........ 0.53 1.02 2.08 2.47 1.97 0.43
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed
charges plus dividends(1) .............. 0.53 0.85 1.70 2.25 1.96 0.43
======== ======== ======== ======== ======== ========
</TABLE>
(1) For purposes of computing the ratios of earnings to fixed charges and
earnings to fixed charges plus dividends: (i) earnings consist of income before
provision for income taxes plus fixed charges (excluding capitalized interest)
and (ii) "fixed charges" consist of interest expensed and capitalized,
amortization of debt discount and expense relating to indebtedness and the
portion of rental expense representative of the interest factor attributable to
leases for rental property. There were no dividends paid or accrued on the
Company's Common Stock during the periods presented above.
* Earnings were inadequate to cover fixed charges. The coverage deficiency was
$1,975,000, $942,000, and $9,987,000 for 1995, 1996, and 2000 respectively.
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