EXHIBIT 12
CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE 30,
--------------
1995* 1996* 1997 1998 1999 2000
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<S> <C> <C> <C> <C> <C> <C>
Fixed charges:
Interest expense ......... $ 3,684 $ 4,347 $ 5,889 $ 9,720 $ 17,358 $ 10,434
Amortization of
capitalized expenses
related to debt ........ 50 150 200 150 242 248
Rental expense ......... 317 308 629 720 876 548
-------- -------- -------- -------- -------- --------------
Total fixed charges before
capitalized interest and
preferred stock dividends. 4,051 4,805 6,718 10,590 18,476 11,230
Capitalized interest .......... 175 250 450 600 686 322
-------- -------- -------- -------- -------- --------------
Total fixed charges .... 4,226 5,055 7,168 11,190 19,162 11,552
Preferred stock dividends ..... -- 1,037 1,627 1,082 167 77
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Total fixed charges
plus preferred
dividends ............ 4,226 6,092 8,795 12,272 19,329 11,629
-------- -------- -------- -------- -------- --------------
Earnings available for fixed
charges: ................. (1,800) 345 8,217 17,023 19,361 5,898
Add fixed charges before
capitalized interest and
preferred stock dividends. 4,051 4,805 6,718 10,590 18,476 11,230
-------- -------- -------- -------- -------- --------------
Total earnings available
For fixed charges ........ $ 2,251 $ 5,150 $ 14,935 $ 27,613 $ 37,837 $ 17,128
======== ======== ======== ======== ======== ==============
Ratio of earnings to
fixed charges (1) ........ 0.53 1.02 2.08 2.47 1.97 1.48
======== ======== ======== ======== ======== ==============
Ratio of earnings to fixed
charges plus dividends (1) 0.53 0.85 1.70 2.25 1.96 1.47
======== ======== ======== ======== ======== ==============
</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 and $942,000 for 1995 and 1996 respectively.
