Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2019
August 14 2019 - 1:30PM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the quarter ended June 30,
2019.
For the three months ended June 30, 2019, SNFC’s
after-tax earnings from operations increased 7.5% from $4,162,000
in 2018 to $4,624,000 in 2019, on a 0.6% decrease in revenues to
$68,445,000. SNFC’s after tax earnings for the six months
ended June 30, 2019 decreased 73.2% to $5,410,000 from $25,349,000
in 2018.
Scott M. Quist, President of the Company, said,
“I am quite pleased with the operational performance of our company
during the second quarter, and year-to-date for that matter.
Adjusting out the investment gains, losses, or asset write-downs
for the given periods, operational income increased 308% over 2nd
quarter 2018, and 627% over year-to-date 2018.
“Within those impressive increases there was
considerable variability within our business segments. The
bulk of that operational income improvement came from our mortgage
segment which swung from a considerable loss in 2018 to
profitability in 2019. While, as noted in our Q1 press
release, volume for that quarter decreased 10% from 2018, Q2 2019
volume was actually a touch higher than Q2 2018 volume, which is
the first time that has happened for some time. Margins
appear to be stabilizing somewhat and costs are being
rationalized.
“In our insurance segments operational income
was essentially flat. While total assets increased about 5%,
investment income actually decreased modestly, which directly
affects profitability. Obtaining necessary yields within
acceptable risk tolerances is becoming more difficult in this low
interest rate environment. We do not anticipate those
economic circumstances changing over the near term.
“Our Memorial segment delivered a very solid
quarter with operational income increasing 40% year-to-date over
2018. Much of that improvement has been driven by increasing
preneed cemetery sales. It is instructive to note that our
Memorial segment has achieved a 24% compound annual growth rate in
operational income over the last four years.”
SNFC has three business segments. The
following table shows the revenues and earnings before taxes for
the three months ended June 30, 2019, as compared to 2018, for each
of the three business segments:
|
Revenues |
|
Earnings before Taxes |
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Life Insurance |
$ |
28,607,000 |
|
$ |
29,371,000 |
|
(2.6%) |
|
|
$ |
1,219,000 |
|
$ |
2,937,000 |
|
|
(58.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
4,543,000 |
|
$ |
5,281,000 |
|
(14.0%) |
|
|
$ |
1,024,000 |
|
$ |
2,072,000 |
|
|
(50.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
35,295,000 |
|
$ |
34,213,000 |
|
3.2% |
|
|
$ |
2,381,000 |
|
$ |
(847,000 |
) |
|
381.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
68,445,000 |
|
$ |
68,865,000 |
|
(0.6%) |
|
|
$ |
4,624,000 |
|
$ |
4,162,000 |
|
|
11.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2019:
|
Revenues |
|
Earnings before Taxes |
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Life Insurance |
$ |
59,113,000 |
|
$ |
80,236,000 |
|
(26.3%) |
|
|
$ |
3,304,000 |
|
$ |
26,649,000 |
|
|
(87.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
8,902,000 |
|
$ |
9,052,000 |
|
(1.7%) |
|
|
$ |
2,209,000 |
|
$ |
2,932,000 |
|
|
(24.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
61,924,000 |
|
$ |
61,653,000 |
|
0.4% |
|
|
$ |
1,543,000 |
|
$ |
(4,232,000 |
) |
|
136.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
129,939,000 |
|
$ |
150,941,000 |
|
(13.9%) |
|
|
$ |
7,056,000 |
|
$ |
25,349,000 |
|
|
(72.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share was $0.20 for the three months
ended June 30, 2019, compared to net earnings of $0.19 per share
for the prior year, as adjusted for the effect of annual stock
dividends. Book value per common share was $10.30 as of June
30, 2019, compared to $9.99 as of December 31, 2018.
The Company has two classes of common stock
outstanding, Class A and Class C. There were 17,242,381 Class
A equivalent shares outstanding as of June 30, 2019.
If there are any questions, please contact Mr.
Garrett S. Sill, Mr. Brian Nelsen or Mr. Scott Quist at:
Security National
Financial CorporationP.O. Box 57250Salt Lake City, Utah 84157Phone
(801) 264-1060Fax (801) 265-9882
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