EX-11.1 3 h51345exv11w1.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 nine months ended September 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 nine month periods ended September 30, 2006 and 2007, in thousands except for earnings per share:
                                 
    Three months     Nine months  
    ended September 30,     ended September 30,  
    2006     2007     2006     2007  
Net income (loss) from continuing operations
   $ (500 )   $ 732     $ 2,333     $ 5,636  
Income (loss) from discontinued operations
     (65 )     (38 )     (3,930 )     432  
 
                        
Net income (loss)
   $ (565 )   $ 694     $ (1,597 )   $ 6,068  
 
                        
 
                                
Weighted average number of common shares outstanding for basic EPS computation
     18,563       19,117       18,531       18,949  
Effect of dilutive securities:
                                
Stock options
     —       469       365       490  
 
                        
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation
     18,563       19,586       18,896       19,439  
 
                        
 
                                
Basic earnings (loss) per common share (a):
                                
Continuing operations
   $ (0.03 )   $ 0.04     $ 0.13     $ 0.30  
Discontinued operations
     —       —       (0.21 )     0.02  
 
                        
 
Net income (loss)
   $ (0.03 )   $ 0.04     $ (0.08 )   $ 0.32  
 
                        
 
                                
Diluted earnings (loss) per common share (a):
                                
Continuing operations
   $ (0.03 )   $ 0.04     $ 0.12     $ 0.29  
Discontinued operations
     —       —       (0.21 )     0.02  
 
                        
 
Net income (loss)
   $ (0.03 )   $ 0.04     $ (0.09 )   $ 0.31  
 
                        
     Options to purchase 0.9 million shares were not included in the computation of diluted earnings per share for the three months ended September 30, 2006, because the effect would be antidilutive and an additional 0.4 million share were also not included because the exercise prices were greater than the average market price of the common shares during the quarter.
     Options to purchase 0.4 million shares were not included in the computation of diluted earnings per share for the nine month period ending September 30, 2006, because the exercise prices were greater than the average market prices during the period.
     Options to purchase approximately 0.03 million shares and 0.1 million shares were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2007, respectively, because the exercise prices were greater than the average market prices during the periods.
     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.