EX-11.1 5 h48935exv11w1.htm COMPUTATION OF PER SHARE EARNINGS exv11w1
 

EXHIBIT 11.1
CARRIAGE SERVICES, INC.
COMPUTATION OF PER SHARE EARNINGS
(unaudited and in thousands, except per share data)
     Earnings per share for the three and six months ended June 30, 2006 and 2007 is calculated based on the weighted average number of common and common equivalent shares outstanding during the periods as prescribed by SFAS 128. The following table sets forth the computation of the basic and diluted earnings per share for the three and six month periods ended June 30, 2006 and 2007, in thousands except for earnings per share:
                                 
    Three months     Six months  
    ended June 30,     ended June 30,  
    2006     2007     2006     2007  
Net income from continuing operations
   $ 629     $ 1,923     $ 2,891     $ 4,950  
Income (loss) from discontinued operations
     74       32       (3,923 )     426  
 
                        
Net income (loss)
   $ 703     $ 1,955     $ (1,032 )   $ 5,376  
 
                        
 
                                
Weighted average number of common shares outstanding for basic EPS computation
     18,545       18,963       18,514       18,864  
Effect of dilutive securities:
                                
Stock options
     357       479       374       500  
 
                        
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation
     18,902       19,442       18,888       19,364  
 
                        
 
                                
Basic earnings (loss) per common share (a):
                                
Continuing operations
   $ 0.03     $ 0.10     $ 0.16     $ 0.26  
Discontinued operations
     —       —       (0.20 )     0.02  
 
                        
 
                                
Net income (loss)
   $ 0.04     $ 0.10     $ (0.04 )   $ 0.28  
 
                        
 
                                
Diluted earnings (loss) per common share (a):
                               
Continuing operations
   $ 0.03     $ 0.10     $ 0.15     $ 0.26  
Discontinued operations
     —       —       (0.20 )     0.02  
 
                        
 
                                
Net income (loss)
   $ 0.04     $ 0.10     $ (0.05 )   $ 0.28  
 
                        
     Options to purchase approximately 150,000 shares were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2006 because the effect would be antidilutive.
     Options to purchase approximately 36,000 shares were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2007, because the effect would be antidilutive.
     The convertible junior subordinated debenture is convertible into 4.6 million shares of common stock and is not included in the computation of diluted earnings per share because the effect would be antidilutive.
     (a) Earnings per share are computed independently for each category of earnings presented. Therefore, the sum of earnings (loss) per share from continuing and discontinued operations may not equal net income (loss) per share due to rounding.