EX-12.1 7 h00147exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 SERVICE CORPORATION INTERNATIONAL RATIO OF EARNINGS TO FIXED CHARGES
TWELVE MONTHS ENDED DECEMBER 31, -------------------------------------------------------- 2001 2000 1999 1998 1997 --------- --------- --------- --------- --------- (THOUSANDS, EXCEPT RATIO AMOUNTS) Pretax loss from continued operations.......... $(535,428) $(516,978) $ (66,693) $ 499,966 $ 573,261 Undistributed income of less than 50% owned equity investees...................... (939) (2,510) 267 (7,652) (4,267) Minority interest in income of majority owned subsidiaries with fixed charges............. (799) 408 (1,490) 818 124 Add fixed charge as adjusted (from below)...... 242,628 319,637 276,419 207,475 170,278 --------- --------- --------- --------- --------- $(294,538) $(199,443) $ 208,503 $ 700,607 $ 739,396 Fixed charges: Interest expense: Corporate................................ $ 205,520 $ 275,156 $ 236,241 $ 177,436 $ 135,560 Financial services........................ -- 8,833 11,805 13,695 8,015 Capitalized............................... -- 1 1,430 3,028 3,787 Amortization of debt costs................ 6,106 6,392 1,954 (383) 1,160 1/3 of rental expense.......................... 31,002 29,256 26,419 16,727 21,161 Dividends on convertible preferred stock of subsidiary ............................ -- -- -- -- 4,382 --------- --------- --------- --------- --------- Fixed charges.................................. 242,628 319,638 277,849 210,503 174,065 Less: Capitalized interest..................... -- (1) (1,430) (3,028) (3,787) --------- --------- --------- --------- --------- Fixed charges as adjusted...................... $ 242,628 $ 319,637 $ 276,419 $ 207,475 $ 170,278 ========= ========= ========= ========= ========= Ratio (earnings divided by fixed charges)...... (A) (A) (A) 3.33 4.25 ========= ========= ========= ========= =========
------------- (A) Due to losses for the years ended December 31, 2001, 2000, and 1999 and the nine months ended September 30, 2002, the ratio coverage was less than 1:1. In order to achieve a coverage of 1:1, the Company would have had to generate additional income before income taxes, extraordinary items and cumulative effects of accounting changes of $537,166. 519,080 and 67,916 for the years ended December 31, 2001, 2000 and 1999, respectively.