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 month periods ended June 30, 2003 and 2004 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, 2003 and 2004:

	Three months ended June 30,					Six months ended June 30,
	2003		2004			2003		2004
Income from continuing operations available to common stockholders	$	2,088	$	1,697		$	3,999	$	4,688
Income (loss) from discontinued operations available to common stockholders	208		(2,155		)	353		(2,094		)
Effect of dilutive securities	—		—			—		—
Net income (loss) available to common stockholders	$	2,296	$	(458	)	$	4,352	$	2,594
Weighted average number of common shares outstanding for basic EPS computation	17,411		17,764			17,365		17,710
Effect of dilutive securities:
Stock options	377		494			375		489
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation	17,788		18,258			17,740		18,199
Basic earnings (loss) per common share:
Continuing operations	$	0.12	$	0.09		$	0.23	$	0.27
Discontinued operations	0.01		(0.12		)	0.02		(0.12		)
Net income (loss)	$	0.13	$	(0.03	)	$	0.25	$	0.15
Diluted earnings (loss) per common share:
Continuing operations	$	0.12	$	0.09		$	0.23	$	0.26
Discontinued operations	0.01		(0.12		)	0.02		(0.12		)
Net income (loss)	$	0.13	$	(0.03	)	$	0.25	$	0.14

Options to purchase 0.6 million shares and 0.2 million shares were not included in the computation of diluted earnings per share for the periods ending June 30, 2003 and 2004, respectively, because the exercise prices of the options were greater than the average market price of the common shares during those periods.