Security National Financial Corporation Reports Financial Results for the Quarter Ended September 30, 2018
November 14 2018 - 9:30AM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the quarter ended
September 30, 2018.
For the three months ended September 30, 2018,
SNFC’s after-tax earnings from operations increased 83.6% from
$1,097,000 in 2017 to $2,014,000 in 2018, on a 6.4% decrease in
revenues to $67,223,000. SNFC’s after tax earnings for the
nine months ended September 30, 2018 increased 307.5% to
$22,178,000 from $5,443,000 in 2017.
Scott M. Quist, President of the Company, said,
“We are always pleased when we can report an increase in
profitability, especially a nearly 100% improvement in
profitability as measured by 3rd quarter over prior year 3rd
quarter. On a year to date basis we have accomplished a
nearly 16% return on equity during the first 9 months. Our life
insurance segment, a primary driver of this improvement, has shown
excellent revenue growth of 15.5% and more than excellent
profitability growth of nearly 341%, especially when one considers
the depreciation and interest costs related to our Center 53
project that are accounted for in that calculation.
“Our Memorial Mortuary & Cemetery group is
the second primary driver of our increased profitability.
Stripping out non-operational real estate related activities,
operational earnings improved 227% for the 3rd quarter as compared
to the prior year. We have made great progress on our
pre-need cemetery sales, those being up more than 40% for the same
period. We have also seen an improvement on the investment returns
on our various trust deposits.
“Our Mortgage segment continues to navigate in a
particularly challenged industry. Consistent with the
industry we are experiencing lower volumes and margin
compression. Our own experience has been a 10% decrease in
funded volume for the 3rd quarter as compared to the prior
year. Our team has worked very hard on efficiencies and
decreased costs over 20% for the same period. But margin
compression, caused by increased competitive pressures due to the
decrease in industry volume, decreased revenue 22% for the same
period.
“Nevertheless, given the challenges we continue
to face, we are pleased to report the improvement in total
profitability.”
SNFC has three business segments. The
following table shows the revenues and earnings before taxes for
the three months ended September 30, 2018, as compared to 2017, for
each of the three business segments:
|
|
Revenues |
|
Earnings before Taxes |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Life
Insurance |
$ |
28,962,000 |
|
$ |
25,078,000 |
|
15.5 |
% |
|
$ |
2,192,000 |
|
|
$ |
497,000 |
|
341.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
4,009,000 |
|
$ |
2,999,000 |
|
33.7 |
% |
|
$ |
782,000 |
|
|
$ |
248,000 |
|
215.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
34,252,000 |
|
$ |
43,754,000 |
|
(21.7 |
%) |
|
$ |
(762,000 |
) |
|
$ |
393,000 |
|
(293.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
67,223,000 |
|
$ |
71,831,000 |
|
(6.4 |
%) |
|
$ |
2,212,000 |
|
|
$ |
1,138,000 |
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2018:
|
|
Revenues |
|
Earnings before Taxes |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Life
Insurance |
$ |
109,199,000 |
|
$ |
77,112,000 |
|
41.6 |
% |
|
$ |
28,841,000 |
|
|
$ |
4,780,000 |
|
503.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
13,060,000 |
|
$ |
9,907,000 |
|
31.8 |
% |
|
$ |
3,714,000 |
|
|
$ |
1,332,000 |
|
178.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
95,905,000 |
|
$ |
128,954,000 |
|
(25.6 |
%) |
|
$ |
(4,994,000 |
) |
|
$ |
1,918,000 |
|
(360.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
218,164,000 |
|
$ |
215,973,000 |
|
1.0 |
% |
|
$ |
27,561,000 |
|
|
$ |
8,030,000 |
|
243.2 |
% |
|
|
|
|
|
|
Net earnings per common share was $.12 for the three months
ended September 30, 2018, compared to net earnings of $.07 per
share for the prior year, as adjusted for the effect of annual
stock dividends. Book value per common share was $10.53 as of
September 30, 2018, compared to $9.23 as of December 31,
2017.
The Company has two classes of common stock
outstanding, Class A and Class C. There were 16,334,192 Class
A equivalent shares outstanding as of September 30, 2018.
If there are any questions, please contact Mr.
Garrett S. Sill, Mr. Brian Nelsen or Mr. Scott Quist at:
Security National Financial
Corporation
P.O. Box
57250
Salt Lake City, Utah
84157
Phone: (801) 264-1060
Fax: (801) 265-9882
Security National Financ... (NASDAQ:SNFCA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Security National Financ... (NASDAQ:SNFCA)
Historical Stock Chart
From Apr 2023 to Apr 2024