Security National Financial Corporation Reports Financial Results For the Quarter Ended September 30, 2019
November 18 2019 - 8:00AM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the quarter ended
September 30, 2019.
For the three months ended September 30, 2019,
SNFC’s pre-tax earnings increased 115.2% from $2,212,000 in 2018 to
$4,760,000 in 2019, on a 12.1% increase in revenues to $75,380,000.
SNFC’s pre-tax earnings for the nine months ended September
30, 2019 decreased 57% to $11,816,000 from $27,561,000 in 2018, on
a 5.9% decrease in revenue.
Scott M. Quist, President of the Company, said,
“I am pleased with the year to date operational performance of our
Company. First, I would note our momentum. We have
clearly improved each quarter this year. But disregarding
quarterly momentum, on a year to date basis, adjusting out
investment gains, primarily the sale of our Dry Creek Apartments in
2018, and asset impairments, primarily a write down of our Kansas
property in Q3 2019, our year to date operational income increased
166% to $14,153,000 pre-tax against year to date 2018 pre-tax
operational income of $5,309,000.
“In some respects, our compare to last year is
easier given the poor 2018 results we experienced in our Mortgage
Segment. In that regard, I would say that our much-improved
Mortgage Segment results this year are not merely a function of the
market, although market forces have been favorable. During
the first 9 months of 2019 our Mortgage Segment replaced about half
of its Regional Managers and added significant executive level
production talent. Those management changes led to our
significantly improved performance. I believe that we have much
room and great expectations for further growth and
improvement. For example, we have earned this year (ytd)
almost exactly what we lost last year (ytd). We have
accomplished a great turn around. But, excluding 2018, our
5-year average Mortgage Segment income (ytd) is about $6.5 million,
or about 35% higher than this year’s results. With the
management team we now have in place we believe we will return to
and exceed that baseline.
“While our Mortgage Segment has the most
dramatic year over year results, our Insurance and Memorial
Segments continue to achieve very solid progress. Our year to
date Insurance Segment operational income is up about 10% over
2018, and our year to date Memorial Segment operational income is
up about 11%. In my view, those results are enviable in our
marketplaces. Lastly, it should not go without saying that
obtaining the necessary yields within acceptable risk tolerances
for our Insurance Segment continues to be difficult in this low
interest rate environment.”
SNFC has three business segments. The
following table shows the revenues and earnings before taxes for
the three months ended September 30, 2019, as compared to 2018, for
each of the three business segments:
|
Revenues |
|
|
Earnings before Taxes |
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Life Insurance |
$ |
29,825,000 |
|
$ |
28,962,000 |
|
3.0 |
% |
|
$ |
1,264,000 |
|
$ |
2,192,000 |
|
|
(42.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
3,570,000 |
|
$ |
4,009,000 |
|
(11.0 |
%) |
|
$ |
213,000 |
|
$ |
782,000 |
|
|
(72.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
41,985,000 |
|
$ |
34,252,000 |
|
22.6 |
% |
|
$ |
3,283,000 |
|
$ |
(762,000 |
) |
|
530.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
75,380,000 |
|
$ |
67,223,000 |
|
12.1 |
% |
|
$ |
4,760,000 |
|
$ |
2,212,000 |
|
|
115.2 |
% |
For the nine months ended September 30,
2019:
|
Revenues |
|
Earnings before Taxes |
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Life Insurance |
$ |
88,937,000 |
|
$ |
109,199,000 |
|
(18.6 |
%) |
|
$ |
4,568,000 |
|
$ |
28,841,000 |
|
|
(84.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
12,473,000 |
|
$ |
13,060,000 |
|
(4.5 |
%) |
|
$ |
2,422,000 |
|
$ |
3,714,000 |
|
|
(34.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
103,909,000 |
|
$ |
95,905,000 |
|
8.3 |
% |
|
$ |
4,826,000 |
|
$ |
(4,994,000 |
) |
|
196.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
205,319,000 |
|
$ |
218,164,000 |
|
(5.9 |
%) |
|
$ |
11,816,000 |
|
$ |
27,561,000 |
|
|
(57.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share was $0.21 for the
three months ended September 30, 2019, compared to net earnings of
$.12 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, 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 17,196,141 Class
A equivalent shares outstanding as of September 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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