Security National Financial Corporation Reports Financial Results for the Quarter Ended September 30, 2020
November 16 2020 - 8:00AM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the quarter ended
September 30, 2020.
For the three months ended September 30, 2020,
SNFC’s after-tax earnings from operations increased 710.2% from
$3,617,000 in 2019 to $29,305,000 in 2020, on a 94.0% increase in
revenues to $146,205,000. SNFC’s after tax earnings for the nine
months ended September 30, 2020 increased 468.1% to $51,286,000
from $9,028,000 in 2019.
Scott M. Quist, President of the Company, said,
“For the quarter, revenues increased 94%, profitability increased
700%, and YTD we have a 26% return on equity. I believe our third
quarter is the best operational third quarter ever for each of our
business segments. Those are spectacular results that have been
delivered in difficult circumstances. I applaud the efforts of all
our teams in their considerable accomplishment. Every business
segment delivered impressive results.
“Our mortgage segment has taken great advantage
of the circumstances presented this year. The pandemic-created
interest rate decline spurred refinance volumes, made purchase
transactions more affordable, and provided generally higher margins
on the sale of loans for those institutions having the sales,
operational, and financial wherewithal to take advantage. Our
hardworking staff met the challenge of the more than doubled
volumes by increasing efficiency in a very difficult workplace
environment, such that costs only increased about 60% - an enviable
accomplishment.
“Our insurance segment’s operational income
reflects similar accomplishment. Our Kilpatrick Life Insurance
Company acquisition, which closed last December, has been
integrated. Much of that work was accomplished in difficult
COVID-related circumstances. While Kilpatrick experienced losses
during the first four months of 2020, as was anticipated, it is now
profitable and contributing beyond expectations. COVID-related
death claims have become more pronounced with death claims
increasing about 20% YTD, and for September increasing
approximately 65% over September 2019. I don’t know if the 65%
number is a fair predictor of the future, but obviously COVID-19
claims are having, and will continue to have, an impact. Lastly,
obtaining necessary investment 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 similarly delivered very
solid Q3 and YTD result with revenues increasing 54% for the
quarter and operational income increasing 100% YTD. Substantially
contributing to those results is increased preneed cemetery sales,
but mortuary and cemetery operations were also significant
contributors. This excellent performance is not an isolated
instance. It is instructive to note that our Memorial segment has
achieved an average 24% compound annual growth rate in operational
income over the last six years. In my view, such excellent
financial results are the natural consequence of continuously
providing superb customer care and consumer experience during very
difficult times.”
SNFC has three business segments. The following
table shows the revenues and earnings before taxes for the three
months ended September 30, 2020, as compared to 2019, for each of
the three business segments:
|
Revenues |
|
Earnings before Taxes |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
|
Life Insurance |
$ |
39,261,000 |
|
$ |
29,825,000 |
|
31.6 |
% |
|
$ |
4,807,000 |
|
$ |
1,264,000 |
|
280.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
5,496,000 |
|
$ |
3,570,000 |
|
53.9 |
% |
|
$ |
1,322,000 |
|
$ |
213,000 |
|
520.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
101,448,000 |
|
$ |
41,985,000 |
|
141.6 |
% |
|
$ |
32,455,000 |
|
$ |
3,283,000 |
|
888.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
146,205,000 |
|
$ |
75,380,000 |
|
94.0 |
% |
|
$ |
38,584,000 |
|
$ |
4,760,000 |
|
710.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
Earnings before Taxes |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
|
Life
Insurance |
$ |
110,255,000 |
|
$ |
88,937,000 |
|
24.0 |
% |
|
$ |
5,408,000 |
|
$ |
4,568,000 |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
14,816,000 |
|
$ |
12,473,000 |
|
18.8 |
% |
|
$ |
2,976,000 |
|
$ |
2,422,000 |
|
22.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
219,404,000 |
|
$ |
103,909,000 |
|
111.2 |
% |
|
$ |
58,868,000 |
|
$ |
4,826,000 |
|
1,119.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
344,475,000 |
|
$ |
205,319,000 |
|
67.8 |
% |
|
$ |
67,252,000 |
|
$ |
11,816,000 |
|
469.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share was $1.51 for the
three months ended September 30, 2020, 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 $13.53 as
of September 30, 2020, compared to $10.86 as of December 31,
2019.
The Company has two classes of common stock
outstanding, Class A and Class C. There were 18,919,980 Class A
equivalent shares outstanding as of September 30, 2020.
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
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