Stewart Enterprises Reports an 80 Percent Increase in Earnings per Share to $.18 and $15.5 Million in Earnings From Continuing

Stewart Enterprises Reports an 80 Percent Increase in Earnings per Share to
$.18 and $15.5 Million in Earnings From Continuing Operations for the First
Quarter of 2013

NEW ORLEANS, March 11, 2013 (GLOBE NEWSWIRE) -- Stewart Enterprises, Inc.
(Nasdaq:STEI) reported today its results for the first quarter of 2013.
Earnings from continuing operations were $15.5 million compared to $8.8
million for the first quarter of 2012. On a diluted per share basis for the
three months ended January 31, 2013, the Company reported earnings from
continuing operations of $.18 and adjusted earnings from continuing operations
of $.15 per share, compared to $.10 per share for reported and adjusted
earnings per share for the same period of last year.

                           Three Months Ended January 31,
                           2013                      2012
                           millions     per share    millions    per share
Net earnings                $15.5      $.18       $8.5      $.10
Net earnings from           $15.5      $.18       $8.8      $.10
continuing operations
Adjusted earnings from      $13.1      $.15       $9.1      $.10
continuing operations ^(1)
                                                              
^(1) See table "Reconciliation of Non-GAAP Financial Measures" for additional
information on adjusted earnings and adjusted earnings per share from
continuing operations.

Thomas M. Kitchen, President and Chief Executive Officer, stated, "For the
first quarter of 2013, we generated the highest quarterly net earnings and
earnings per share in more than 10 years.We are particularly pleased with the
balance we achieved between our funeral and cemetery segments.Our funeral
businesses turned in a superb performance during the first quarter of 2013,
highlighted by a more than 8 percent increase in same-store funeral
services.While we believe deaths in our markets increased period-over-period,
our increase in funeral services is particularly strong compared to
industry-wide data and is the third consecutive quarter of increased funeral
services.This improvement in services contributed to an 8.5 percent
improvement in funeral revenue, a 14 percent improvement in funeral gross
profit and a 140 basis point improvement in funeral gross profit margin.We
are also very pleased with the strong performance of our cemetery segment,
where we generated a 9 percent increase in cemetery revenue, a 63 percent
improvement in cemetery gross profit and a 620 basis point improvement in
cemetery gross margin.We have started fiscal 2013 strong by growing first
quarter revenue and profitability and continuing the positive momentum we
generated during fiscal year 2012.Some highlights of the first quarter of
2013 compared to the prior year include:

  *Improving same-store funeral services by 8.4 percent, resulting in the
    third consecutive quarter of increased funeral services;
    
  *Generating a 9 percent increase in revenue, a 27 percent increase in gross
    profit, a 76 percent increase in earnings from continuing operations and
    an 80 percent increase in earnings per share;
    
  *Increasing cemetery gross profit by 63 percent and funeral gross profit by
    14 percent, while expanding cemetery gross profit margin by 620 basis
    points and funeral gross profit margin by 140 basis points;
    
  *Realizing a 24 percent improvement in adjusted EBITDA to $32.5 million or
    a 24 percent adjusted EBITDA margin, as discussed in the table
    "Reconciliation of Non-GAAP Financial Measures;"
    
  *Producing total returns for the first three months of fiscal year 2013 of
    4.5 percent in our preneed trusts and 3.8 percent in our cemetery
    perpetual care trusts; and
    
  *Generating operating cash flow of $11.9 million, an improvement of $4.1
    million, and free cash flow of $6.8 million, an improvement of $3.0
    million."

Mr. Kitchen concluded, "Our balance sheet and liquidity remain strong with $78
million in cash and marketable securities on hand and no amounts borrowed on
our $150 million credit facility.Overall, we are very pleased to report these
strong operating and financial results for the first quarter. We believe
these strong results demonstrate the power of leverage in our business and the
importance of continuing to effectively manage our costs.We produced a 9
percent improvement in total revenue, which led to a 27 percent improvement in
total gross profit and an 80 percent increase in earnings per share compared
to the same period of last year.By continuing to execute our strategic plan
and maintaining our focus on employees and customers, we are well positioned
to deliver stable, sustainable results over the long-term."

First Quarter Results

FUNERAL

  *Funeral revenue increased $6.1 million, or 8.5 percent, to $78.1 million
    for the first quarter of 2013.
    
  *Same-store funeral services increased 8.4 percent, or 1,176 events.The
    Company's same-store funeral operations generated a 1.2 percent increase
    in average revenue per traditional funeral service and a 1.4 percent
    increase in average revenue per cremation service.
    
  *Funeral gross profit increased $2.7 million, or 14.4 percent, to $21.4
    million for the first quarter of 2013 compared to $18.7 million for the
    same period of 2012.Funeral gross profit margin improved 140 basis points
    to 27.4 percent for the first quarter of 2013 from 26.0 percent for the
    first quarter of 2012.The increase is primarily due to the $6.1 million
    improvement in revenue, as previously noted.
    
  *The cremation rate for the Company's same-store operations declined to
    42.2 percent for the first quarter of 2013 compared to 43.3 percent for
    the first quarter of 2012.
    
  *Net preneed funeral sales decreased 7.3 percent during the first quarter
    of 2013 compared to the first quarter of 2012. Preneed funeral sales are
    deferred until the underlying contracts are performed and have no impact
    on current revenue.

CEMETERY

  *Cemetery revenue increased $4.8 million, or 9.1 percent, to $57.6 million
    for the first quarter of 2013.The improvement is primarily a result of a
    $4.3 million increase in revenue recognized for cemetery property sales
    for which the down payment required for revenue recognition was received
    in the first quarter of 2013.In addition, merchandise delivered and
    services performed improved by $1.8 million, revenue related to trust
    activities increased by $1.4 million and revenue recognized for cemetery
    property sales for which construction was completed increased by $1.3
    million. These improvements were partially offset by a $0.5 million
    decline in finance charges as a result of reduced interest rates in this
    low interest rate environment.
    
  *Cemetery property sales declined $3.2 million, or 13.6 percent, compared
    to the first quarter of 2012.As part of the integration of its operations
    and sales teams, the Company revised its structure and compensation
    packages, which affected cemetery property sales, as well as preneed
    funeral sales during the quarter.In addition, during the quarter the
    Company tightened its sales terms for cemetery property sales.The Company
    knew these changes would create challenges, particularly during the first
    quarter in light of declining consumer confidence, increases in payroll
    taxes and economic uncertainty.The decline in preneed production is
    isolated to six funeral homes and ten cemeteries.The Company firmly
    believes the current organization provides the foundation to improve its
    customer service and enhance sales production over time.
    
  *Cemetery gross profit increased $4.2 million, or 62.7 percent, to $10.9
    million for the first quarter of 2013.Cemetery gross profit margin
    improved 620 basis points to 18.9 percent for the first quarter of 2013
    from 12.7 percent for the same period of 2012.The improvement is
    primarily due to the increase in cemetery revenue, as previously noted.

OTHER

  *Corporate general and administrative expenses increased $0.7 million to
    $7.4 million for the first quarter of 2013, compared to $6.7 million for
    the same period of 2012.Due to the strong operating results for the first
    quarter of 2013, the Company increased its accrual for annual incentive
    compensation during the period.
    
  *Other operating income, net increased $0.7 million to $0.9 million,
    primarily due to the sale of undeveloped cemetery property during the
    first quarter of 2013.
    
  *The effective tax rate for continuing operations for the quarter ended
    January 31, 2013 was 24.9 percent compared to 34.0 percent for the same
    period in 2012.For the first quarter of 2013, the Company benefitted from
    a $2.7 million reduction in the valuation allowance for capital losses,
    associated with the positive performance of its trust portfolio.
    
  *During the first quarter of 2013, the Company repurchased 0.2 million
    shares of its Class A common stock for $1.8 million under its stock
    repurchase program.As of January 31, 2013, the Company had $14.6 million
    remaining under its $125.0 million program.

Cash Flow Results and Debt for Total Operations

  *Cash flow provided by operating activities for the first quarter of fiscal
    year 2013 was $11.9 million compared to $7.8 million for the same period
    of last year.The improvement in operating cash flow is primarily driven
    by the improvement in net earnings.In addition, the Company received $2.3
    million in proceeds from the sale of undeveloped cemetery property during
    the first quarter of 2013.These increases were partially offset by a
    change in working capital during the first three months of 2013 partly
    driven by the timing of trust withdrawals and deposits.
    
  *Free cash flow was $6.8 million for the first quarter of 2013 compared to
    $3.8 million for the first quarter of 2012.See table "Reconciliation of
    Non-GAAP Financial Measures" for additional information on free cash flow.
    
  *The Company paid $3.4 million, or $.04 per share, in dividends for the
    first quarter of 2013, compared to $3.1 million, or $.035 per share, in
    dividends during the first quarter of 2012.

Trust Performance

The following total returns include realized and unrealized gains and losses:

  *For the quarter ended January 31, 2013, the Company's preneed funeral and
    cemetery merchandise and services trusts experienced a total return of 4.5
    percent, and its cemetery perpetual care trusts experienced a total return
    of 3.8 percent.
    
  *For the twelve months ended January 31, 2013, the Company's preneed
    funeral and cemetery merchandise and services trusts experienced a total
    return of 11.8 percent, and its cemetery perpetual care trusts experienced
    a total return of 13.1 percent.
    
  *For the three years ended January 31, 2013, the Company's preneed funeral
    and cemetery merchandise and services trusts experienced an average annual
    total return of 10.1 percent, and its cemetery perpetual care trusts
    experienced an average annual total return of 10.6 percent.
    
  *For the five years ended January 31, 2013, the Company's preneed funeral
    and cemetery merchandise and services trusts experienced an average annual
    total return of 4.1 percent, and its cemetery perpetual care trusts
    experienced an average annual total return of 5.7 percent.
    
  *For the last twelve months ended January 31, 2013, the fair market value
    of the Company's portfolio improved $53.1 million to $881.8 million.

Founded in 1910, Stewart Enterprises, Inc. is the second largest provider of
products and services in the death care industry in the United States. The
Company currently owns and operates 217 funeral homes and 141 cemeteries in
the United States and Puerto Rico. Through its subsidiaries, the Company
provides a complete range of funeral and cremation merchandise and services,
along with cemetery property, merchandise and services, both at the time of
need and on a preneed basis.

Stewart Enterprises, Inc. will host its quarterly conference call for
investors to discuss first quarter results on Tuesday, March 12, 2013 at 10
a.m. CentralDaylight Time.The teleconference dial-in number is
1-800-303-0442, using pass code 34362089.To participate, please call the
number at least 15 minutes prior to the call.If you are calling from outside
the United States, the dial-in number is 1-847-413-3733.A replay of the call
will be available by dialing 1-888-843-7419 (from within the continental
United States) or 1-630-652-3042 (from outside the continental United States),
and using pass code 34362089 until March 26, 2013, at 11:59 p.m.
CentralDaylight Time.Interested parties will also have the opportunity to
listen to the live conference call via the Internet through Stewart
Enterprises' website http://www.stewartenterprises.com.To listen to the live
call, please go to the website at least 15 minutes early to register, download
and install any necessary audio software.A replay will be available at this
website shortly following the conference call and will be available at the
website until April 12, 2013.

STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
                                                         
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
                                                         
                                     Three Months Ended January 31,
                                     2013                 2012
Revenues:                                                 
Funeral                               $78,065            $72,011
Cemetery                              57,616             52,813
                                     135,681            124,824
Costs and expenses:                                       
Funeral                               56,664             53,354
Cemetery                              46,701             46,074
                                     103,365            99,428
Gross profit                          32,316             25,396
Corporate general and administrative  (7,388)             (6,692)
expenses
Restructuring and other charges       (81)                —
Net gain on dispositions              721                343
Other operating income, net           921                194
Operating earnings                    26,489             19,241
Interest expense                      (5,916)             (5,867)
Investment and other income, net      124                46
Earnings from continuing operations   20,697             13,420
before income taxes
Income taxes                          5,163              4,562
Earnings from continuing operations   15,534             8,858
Discontinued operations:                                  
Loss from discontinued operations     (88)                (367)
before income taxes
Income tax benefit                    (31)                (54)
Loss from discontinued operations     (57)                (313)
Net earnings                          $15,477            $8,545
                                                         
Basic earnings per common share:                          
Earnings from continuing operations   $.18               $.10
Loss from discontinued operations     —                  —
Net earnings                          $.18               $.10
                                                         
Diluted earnings per common share:                        
Earnings from continuing operations   $.18               $.10
Loss from discontinued operations     —                  —
Net earnings                          $.18               $.10
                                                         
Weighted average common shares                            
outstanding (in thousands):
Basic                                 84,394             87,037
Diluted                               84,930             87,349
                                                         
Dividends declared per common share   $— ^(1)             $.035
                                                         
^(1) The first quarter dividend historically declared in December and paid in
January (both the Company's first quarter) was declared in October 2012 (the
Company's fourth quarter) and paid in December 2012.The acceleration of the
declaration and payment of the first quarter 2013 dividend resulted in no
dividends being declared in the first quarter of 2013, although the dividend
was paid in the first quarter of 2013.The Company paid $3.4 million, or $.04
per share, in dividends for the first quarter of 2013, compared to $3.1
million, or $.035 per share, in dividends during the first quarter of 2012.




STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
                                                            
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per share amounts)
                                                            
ASSETS                                       January 31, 2013 October 31, 2012
                                                            
Current assets:                                              
Cash and cash equivalents                    $63,356        $68,187
Restricted cash and cash equivalents         6,250          6,250
Marketable securities                        14,653         10,514
Receivables, net of allowances               54,336         52,441
Inventories                                  36,537         36,495
Prepaid expenses                             10,101         4,923
Deferred income taxes, net                   22,862         30,671
Total current assets                         208,095        209,481
Receivables due beyond one year, net of      71,267         72,620
allowances
Preneed funeral receivables and trust        441,783        432,422
investments
Preneed cemetery receivables and trust       233,514        225,048
investments
Goodwill                                     249,584        249,584
Cemetery property, at cost                   400,599        401,670
Property and equipment, at cost:                             
Land                                         49,765         49,085
Buildings                                    366,452        360,852
Equipment and other                          205,741        204,971
                                            621,958        614,908
Less accumulated depreciation                329,023        323,648
Net property and equipment                   292,935        291,260
Deferred income taxes, net                   65,994         62,125
Cemetery perpetual care trust investments    270,293        263,663
Other assets                                 13,046         13,812
Total assets                                 $2,247,110     $2,221,685




STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
                                                            
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per share amounts)
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY         January 31, 2013 October 31, 2012
                                                            
Current liabilities:                                         
Current maturities of long-term debt         $6             $6
Accounts payable and accrued expenses        23,572         25,214
Accrued payroll and other benefits           14,074         19,964
Accrued insurance                            22,122         22,152
Accrued interest                             4,254          2,161
Estimated obligation to fund cemetery        11,956         11,965
perpetual care trust
Other current liabilities                    8,590          14,723
Income taxes payable                         1,589          1,004
Total current liabilities                    86,183         97,189
Long-term debt, less current maturities      322,948        321,887
Deferred income taxes, net                   4,201          4,931
Deferred preneed funeral revenue             239,681        240,415
Deferred preneed cemetery revenue            263,514        265,347
Deferred preneed funeral and cemetery        601,934        585,164
receipts held in trust
Perpetual care trusts' corpus                267,192        261,883
Other long-term liabilities                  20,986         20,548
Total liabilities                            1,806,619      1,797,364
Commitments and contingencies                               
                                                            
Shareholders' equity:                                        
Preferred stock, $1.00 par value, 5,000,000  —              —
shares authorized; no shares issued
Common stock, $1.00 stated value:                           
Class A authorized 200,000,000 shares;
issued and outstanding 81,797,232 and        81,797         81,360
81,359,536 shares at January 31, 2013 and
October 31, 2012, respectively
Class B authorized 5,000,000 shares; issued
and outstanding 3,555,020 shares at January
31, 2013 and October 31, 2012; 10 votes per  3,555          3,555
share convertible into an equal number of
Class A shares
Additional paid-in capital                   479,337        479,060
Accumulated deficit                          (124,219)       (139,696)
Accumulated other comprehensive income:                      
Unrealized appreciation of investments       21             42
Total accumulated other comprehensive income 21             42
Total shareholders' equity                   440,491        424,321
Total liabilities and shareholders' equity   $2,247,110     $2,221,685



STEWART ENTERPRISES, INC.
AND SUBSIDIARIES
                                                              
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands, except per share amounts)
                                                              
                                               Three Months Ended January 31,
                                               2013            2012
Cash flows from operating activities:                          
Net earnings                                    $15,477       $8,545
Adjustments to reconcile net earnings to net                   
cash provided by operating activities:
Net gain on dispositions                        (633)         (343)
Depreciation and amortization                   6,487         6,552
Non-cash interest and amortization of discount  1,429         1,365
on senior convertible notes
Provision for doubtful accounts                 1,886        1,278
Share-based compensation                        981          1,144
Excess tax benefits from share-based payment    (74)           (23)
arrangements
Provision for deferred income taxes             3,923         3,613
Estimated obligation to fund cemetery perpetual —             642
care trust
Other                                          37            4
Changes in assets and liabilities:                             
(Increase) decrease in receivables              (2,516)        559
Increase in prepaid expenses                    (5,178)        (4,138)
(Increase) decrease in inventories and cemetery 1,022         (2,596)
property
Decrease in accounts payable and accrued        (6,226)        (7,482)
expenses
Net effect of preneed funeral production and                   
maturities:
Increase in preneed funeral receivables and     (731)          (725)
trust investments
Decrease in deferred preneed funeral revenue    (706)          (1,012)
Decrease in deferred preneed funeral receipts   (412)          (67)
held in trust
Net effect of preneed cemetery production and                 
deliveries:
Increase in preneed cemetery receivables and    (3,222)        (1,642)
trust investments
Decrease in deferred preneed cemetery revenue   (1,833)        (439)
Increase in deferred preneed cemetery receipts  1,795         2,299
held in trust
Increase in other                               390           251
Net cash provided by operating activities       11,896        7,785
                                                              
Cash flows from investing activities:                          
Proceeds from sales/maturities of marketable    —             250
securities 
Deposits of restricted funds and purchases of   (3,956)        (1,756)
marketable securities
Proceeds from sale of assets                    778           233
Additions to property and equipment             (9,250)        (6,524)
Other                                          48            23
Net cash used in investing activities           (12,380)       (7,774)
                                                              
Cash flows from financing activities:                          
Repayments of long-term debt                    (1)            (1)
Debt refinancing costs                          —             (34)
Issuance of common stock                        787           117
Purchase and retirement of common stock         (1,833)        (7,847)
Dividends                                       (3,374)        (3,062)
Excess tax benefits from share-based payment    74            23
arrangements
Net cash used in financing activities           (4,347)        (10,804)
                                                              
Net decrease in cash                            (4,831)        (10,793)
Cash and cash equivalents, beginning of period  68,187        65,688
Cash and cash equivalents, end of period        $63,356       $54,895
                                                              
Supplemental cash flow information:                            
Cash paid (received) during the period for:                    
Income taxes, net                               $484          $(197)
Interest                                        $2,432        $2,435
                                                              
Non-cash investing and financing activities:                   
Issuance of common stock to directors           $133          $437
Issuance of restricted stock, net of            $374          $300
forfeitures
                                                              
                                                              
                                                              

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS ENDED JANUARY 31, 2013 AND 2012
(Unaudited)

The Company recorded several items during the three months ended January 31,
2013 and 2012 that impacted earnings from continuing operations: a non-cash
interest expense related to the Company's senior convertible notes, a
perpetual care funding obligation, net gain on dispositions and unusual tax
adjustments.The Company is presenting adjusted earnings in the table below to
eliminate the effects of the specified items.

                             Three Months Ended January 31,
Adjusted Balances are Net of  2013                     2012
Tax
                             millions    per share    millions    per share
Consolidated net earnings     $ 15.5     $.18       $8.5      $.10    
Add:Loss from discontinued   —         —          0.3       —       
operations
Earnings from continuing      15.5      .18        8.8       .10     
operations
Add:Non-cash interest
expense on senior convertible 0.7       .01        0.7       .01     
notes ^(1)
Add: Perpetual care funding   —         —          0.4       —       
obligation ^(2)
Subtract:Net gain on         (0.4)       (.01)        (0.2)       —       
dispositions ^(3)
Subtract:Unusual tax         (2.7)       (.03)        (0.6)       (.01)     
adjustments ^(4)
Adjusted earnings from        $ 13.1     $ .15       $ 9.1      $ .10    
continuing operations
                                                                        
^(1) Effective November 1, 2009, the Company adopted Financial Accounting
Standards Board guidance that relates to the Company's senior convertible
notes, which has been applied retrospectively in the Company's financial
statements.For additional information, see Note 3 to the financial          
statements included in the Company's Form 10-K for the year ended October
31, 2012.The tax rate associated with the interest expense related to the
Company's senior convertible notes was 38.0 percent for the three months
ended January 31, 2013 and 2012.
                                                                        
^(2) As a result of Eastman Kodak's bankruptcy, the Company recorded a
charge to record a probable funding obligation related to the Company's
perpetual care trusts during the first quarter of 2012.The tax rate         
associated with the Company's adjustment for the perpetual care funding
obligation for the three months ended January 31, 2012 was 38.0 percent.
                                                                        
^(3) The tax rate associated with the Company's adjustment for the net gain
on dispositions for the three months ended January 31, 2013 and 2012 was     
38.0 percent.
                                                                        
^(4) For the three months ended January 31, 2013 and 2012, the Company
recorded reductions in the tax valuation allowance for capital losses,       
associated with the positive performance of its trust portfolio.



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS ENDED JANUARY 31, 2013 AND 2012
(Unaudited)

Free cash flow is defined as net cash provided by operating activities less
maintenance capital expenditures. Management believes that free cash flow is a
useful measure of the Company's ability to make strategic investments,
repurchase stock, repay debt or pay dividends (subject to the restrictions in
its debt agreements). The following table provides a reconciliation between
net cash provided by operating activities (the GAAP financial measure that the
Company believes is most directly comparable to free cash flow) and free cash
flow for the three months ended January 31, 2013 and 2012:

Free Cash Flow                           Three Months Ended
                                         January 31,
(Dollars in millions)                    2013                2012
                                                           
Net cash provided by operating           $11.9             $7.8
activities ^(1)
Less:Maintenance capital expenditures   (5.1)              (4.0)
Free cash flow                           $6.8              $3.8
                                                           
^(1) Cash flow provided by operating activities for the first quarter of
fiscal year 2013 was $11.9 million compared to $7.8 million for the same
period of last year.The improvement in operating cash flow is primarily
driven by an improvement in net earnings.In addition, the Company received
$2.3 million in proceeds from the sale of undeveloped cemetery property during
the first quarter of 2013.These increases were partially offset by a change
in working capital during the first three months of 2013 partly driven by the
timing of trust withdrawals and deposits.




RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE PERIODS ENDED JANUARY 31, 2013 AND 2012
(Unaudited)

Adjusted EBITDA is defined as earnings from continuing operations plus
depreciation and amortization, interest expense, perpetual care funding
obligations, restructuring and other charges, income taxes and less net gain
on dispositions.Adjusted EBITDA margins are calculated by dividing adjusted
EBITDA by revenue.

Management believes that adjusted EBITDA is a useful measure for providing
additional insight into the Company's operating performance.Due to the
Company's significant cash investment in preneed activity, management does not
view adjusted EBITDA as a measure of the Company's cash flow.Investors should
be aware that adjusted EBITDA may not be comparable to similarly titled
measures presented by other companies. The following table provides a
reconciliation between net earnings (the GAAP financial measure that the
Company believes is most directly comparable to adjusted EBITDA) and adjusted
EBITDA for the three months ended January 31, 2013 and 2012:

Adjusted EBITDA                              Three Months Ended
                                             January 31,
(Dollars in millions)                        2013             2012
                                                            
Consolidated net earnings                    $15.5          $8.5
Add:Loss from discontinued operations       —              0.3
Earnings from continuing operations          15.5           8.8
Add:Depreciation and amortization           6.5            6.6
Add:Interest expense                        5.9            5.9
Add:Perpetual care funding obligation ^(1)  —              0.6
Add:Restructuring and other charges         0.1            —
Add:Income taxes                            5.2            4.6
Subtract:Net gain on dispositions           (0.7)           (0.3)
Adjusted EBITDA                              $32.5          $26.2
Adjusted EBITDA margin                       23.9 %          21.0 %
                                                            
^(1) As a result of Eastman Kodak's bankruptcy, the Company recorded a charge
to record a probable funding obligation related to the Company's perpetual
care trusts during the first quarter of 2012.



                          STEWART ENTERPRISES, INC.
                               AND SUBSIDIARIES

                            CAUTIONARY STATEMENTS

This press release includes forward-looking statements that are generally
identifiable through the use of words such as "believe," "expect," "intend,"
"plan," "estimate," "anticipate," "project," "will" and similar
expressions.These forward-looking statements rely on assumptions, estimates
and predictions that could be inaccurate and that are subject to risks and
uncertainties that could cause actual results to differ materially from our
goals or forecasts.These risks and uncertainties include, but are not limited
to:

  *effects on our trusts and escrow accounts of changes in stock and bond
    prices and interest and dividend rates;
    
  *effects of the substantial unrealized losses in the investments in our
    trusts, including:

    *decreased future cash flow and earnings as a result of reduced earnings
      from our trusts and trust fund management;
      
    *the potential to realize additional losses and additional cemetery
      perpetual care funding obligations and tax valuation allowances;

  *effects on at-need and preneed sales of a weak economy;
    
  *effects on revenue due to the changes in the number of deaths in our
    markets and recent annual declines in funeral call volume;
    
  *effects on our revenue and earnings of the continuing national trend
    toward increased cremation and the increases in the percentage of
    cremations performed by us that are inexpensive direct cremations;
    
  *effects on our future revenue and costs of our organizational
    restructuring designed to better integrate operations and sales,
    implemented primarily during the latter part of fiscal year 2012 and the
    beginning of fiscal year 2013;
    
  *effects on cash flow and earnings as a result of increased costs,
    particularly supply costs related to increases in commodity prices;
    
  *effects on our market share, prices, revenues and margins of intensified
    price competition or improved advertising and marketing by competitors,
    including low-cost casket providers and increased offerings of products or
    services over the Internet;
    
  *risk of loss due to hurricanes and other natural disasters;
    
  *effects of the call options the Company purchased and the warrants the
    Company sold on our Class A common stock and the effects of the
    outstanding warrants on the ownership interest of our current
    stockholders;
    
  *our ability to pay future dividends on and repurchase our common stock;
    
  *our ability to consummate significant acquisitions of our investments in
    death care or related businesses successfully;
    
  *the effects on us as a result of our industry's complex accounting model;

and other risks and uncertainties described in our Form 10-K for the year
ended October 31, 2012, filed with the Securities and Exchange Commission.We
disclaim any obligation or intent to update or revise any forward-looking
statements in order to reflect events or circumstances after the date of this
release.

CONTACT: Lewis J. Derbes, Jr.
         Stewart Enterprises, Inc.
         1333 S. Clearview Parkway
         Jefferson, LA 70121
         504-729-1400

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