EX-11.1 2 h56714exv11w1.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 (“EPS”) for the three months ended March 31, 2007 and 2008 is calculated based on the weighted average number of common and common equivalent shares outstanding during the periods as prescribed by SFAS 128 “Earnings per Share”. The following table sets forth the computation of the basic and diluted earnings per share for the three month periods ended March 31, 2007 and 2008, in thousands except for earnings per share:
                 
    Three months  
    ended March 31,  
    2007     2008  
Net income from continuing operations
   $ 2,992     $ 3,289  
Income from discontinued operations
     430       —  
 
            
Net income
   $ 3,422     $ 3,289  
 
            
 
                
Weighted average number of common shares outstanding for basic EPS computation
     18,763       19,344  
Effect of dilutive securities:
                
Stock options
     522       426  
 
            
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation
     19,285       19,770  
 
            
 
                
Basic earnings per common share:
                
Continuing operations
   $ 0.16     $ 0.17  
Discontinued operations
     0.02       —  
 
            
 
                
Net income
   $ 0.18     $ 0.17  
 
            
 
                
Diluted earnings per common share:
                
Continuing operations
   $ 0.16     $ 0.17  
Discontinued operations
     0.02       —  
 
            
 
                
Net income
   $ 0.18     $ 0.17  
 
            
     Options to purchase 44,000 shares were not included in the computation of diluted earnings per share for the three months ended March 31, 2007, because the options contained exercise prices that exceeded the average market price of the Company’s common stock during the period and, therefore, the effect would be antidilutive.
     Options to purchase 25,000 shares were not included in the computation of diluted earnings per share for the three months ended March 31, 2008, because the options contained exercise prices that exceeded the average market price of the Company’s common stock during the period and, therefore, the effect would be antidilutive.
     The convertible junior subordinated debentures due in 2029 are 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.