EX-11.1 2 h59417exv11w1.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 and six months ended June 30, 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 and six month periods ended June 30, 2007 and 2008, in thousands except for earnings per share:
                                 
    Three months     Six months  
    ended June 30,     ended June 30,  
    2007     2008     2007     2008  
Net income from continuing operations
   $ 1,903     $ 43     $ 4,828     $ 3,298  
Income (loss) from discontinued operations
     52       (1,426 )     548       (1,391 )
 
                        
Net income (loss)
     1,955       (1,383 )     5,376       1,907  
Preferred stock dividend
     —       3       —       3  
 
                        
Net income (loss) available to common stockholders
   $ 1,955     $ (1,386 )   $ 5,376     $ 1,904  
 
                        
 
                                
Weighted average number of common shares outstanding for basic EPS computation
     18,963       19,436       18,864       19,390  
Effect of dilutive securities:
                                
Stock options
     479       408       500       417  
 
                        
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation
     19,442       19,844       19,364       19,807  
 
                        
 
                                
Basic earnings per common share:
                                
Continuing operations
   $ 0.10     $ —     $ 0.26     $ 0.17  
Discontinued operations
     —       (0.07 )     0.03       (0.07 )
 
                        
 
                                
Net income
   $ 0.10     $ (0.07 )   $ 0.29     $ 0.10  
 
                        
 
                                
Diluted earnings per common share:
                                
Continuing operations
   $ 0.10     $ —     $ 0.25     $ 0.17  
Discontinued operations
     —       (0.07 )     0.03       (0.07 )
 
                        
 
Net income
   $ 0.10     $ (0.07 )   $ 0.28     $ 0.10  
 
                        
     Options to purchase 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.
     Options to purchase 21,000 and 46,000 shares were not included in the computation of diluted earnings per share for the three and six months ended June 30, 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.