EX-12.1 7 h15537exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 SERVICE CORPORATION INTERNATIONAL RATIO OF EARNINGS TO FIXED CHARGES (In thousands, except ratio amounts)
SIX MONTHS TWELVE MONTHS ENDED DECEMBER 31, ENDED JUNE 30, -------------------------------------------------------- ------------------- 1999 2000 2001 2002 2003 2003 2004 -------- ---------- ---------- ---------- -------- ---------- -------- (RESTATED) (RESTATED) (RESTATED) (RESTATED) Earnings: Income (loss) from continuing operations before income taxes and cumulative effects of accounting changes............................. $(70,266) $(465,933) $(418,617) $(119,850) $111,219 $ 91,194 $ 79,302 Undistributed income of less than 50% owned equity investees.............. 267 (2,510) (939) -- -- -- -- Minority interest in income of majority owned subsidiaries with fixed charges....................... (1,490) 408 (799) 706 715 286 310 Add: fixed charges as adjusted (from below).............................. 274,654 318,204 241,859 180,589 162,348 82,704 77,107 -------- --------- --------- --------- -------- -------- -------- $203,165 $(149,831) $(178,496) $ 61,445 $274,282 $174,184 $156,719 ======== ========= ========= ========= ======== ======== ======== Fixed charges: Interest expense: Corporate......................... $234,476 $ 273,723 $ 204,751 $ 153,770 $133,497 $ 68,459 $ 61,838 Financial services................ 11,805 8,833 -- -- -- -- -- Capitalized....................... 1,430 1 -- -- -- -- -- Amortization of debt cost........... 1,954 6,392 6,106 7,102 9,237 4,674 4,942 1/3 of rental expense............... 26,419 29,256 31,002 19,717 19,614 9,571 10,327 -------- --------- --------- --------- -------- -------- -------- Fixed charges....................... 276,084 318,205 241,859 180,589 162,348 82,704 77,107 Less: Capitalized interest.......... (1,430) (1) -- -- -- -- -- -------- --------- --------- --------- -------- -------- -------- Fixed charges as adjusted........... $274,654 $ 318,204 $ 241,859 $ 180,589 $162,348 $ 82,704 $ 77,107 ======== ========= ========= ========= ======== ======== ======== Ratio (earnings divided by fixed charges)............................ A A A A 1.69 2.11 2.03 ======== ========= ========= ========= ======== ======== ========
--------------- A. Due to the losses from continuing operations before income taxes and cumulative effects of accounting changes in the twelve months ended December 31, 1999, 2000, 2001 and 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 of $72,919, $468,036, $420,355 and $119,144 for the years ended December 31, 1999, 2000, 2001 and 2002, respectively.