SECURITY NATIONAL FINANCIAL CORPORATION REPORTS FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2019
March 31 2020 - 1:00PM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the year ended December
31, 2019.
For the twelve months ended December 31, 2019,
SNFC’s after-tax earnings from operations decreased 49.8% from
$21,686,000 in 2018 to $10,894,000 in 2019, on a 1.2% increase in
revenues to $283,061,000.
Scott Quist, Chairman of the Board, President,
and Chief Executive Officer of SNFC, said, “We are pleased with our
operational performance in 2019. Excluding extraordinary
items, meaning the gain from the sale of our Dry Creek Apartments
in 2018 and the write down on our Wichita office building in 2019,
our pre-tax Operational Earnings increased from $3.9 million in
2018 to $16.6 million in 2019, or a 322% YOY improvement.
While it is true that much of that improvement was centered in our
mortgage segment, all of our business segments experienced
significant and measurable operational improvement in 2019.
“In addition to the excellent operational
performance in 2019, we were able to accomplish a significant
acquisition. In December we closed on the purchase of
Kilpatrick Life Insurance Company. Kilpatrick was founded in
1935, is located in Shreveport Louisiana, and occupies a prominent
position in its respective markets. The basic insurance
business of Kilpatrick is funeral related insurance, similar to
what the Company sells as its main insurance product. Several
of the former Principals of Kilpatrick have agreed to continue
their service as members of the Kilpatrick Board of Directors thus
continuing their oversight of Kilpatrick and ensuring the same
quality service the company has been known for. With the
acquisition of Kilpatrick, the Company’s assets increased 27% YOY
to $1.334 Billion.
“Of course, the world today is a much different
place than it was in 2019, and much different even than it was a
month ago. I believe our company has reacted well to the
tremendous challenges placed upon it and our staff over that last
month. A month ago, we had probably 85-90% of our staff
working in our offices, today, we have probably 20-25% working at
our offices. The remaining approximately 75-80% are now working
remotely from their homes. I am very proud of how quickly our
IT staff was able to install such functionality.
“Financial markets have reacted with wide swings
in both the fixed income and equity markets. Interest rates have
dropped precipitously with the two-year treasury bill even dipping
into negative interest rate territory briefly. While the
lowered rates have sparked additional activity in our mortgage
segment, profitably deploying cash has become more
troublesome.
“We are fortunate that most, if not all, of our
businesses to date have been considered not “non-essential”.
However, even such formerly simple tasks as deed recordings
and professional licensing have now become problematic.
Traditionally a large percentage of our new customer sales activity
has been consumer direct in-home sales. Such in-home
transactions are becoming increasingly rare. We have reacted
speedily with video and other remotely based sales presentation
capabilities. The training of our sales force and the market
acceptance of such new sales methods remains to be seen. Even
where there is consistent demand, such as in funeral services,
providing those services in today’s environment has been
challenging. While it is hazardous to guess how long such
conditions will linger it is nevertheless our job to understand and
react to the present environment and continue to provide our needed
services and products on a profitable basis.”
SNFC has three business segments. The
following table shows the revenues and earnings before taxes for
the twelve months ended December 31, 2019, as compared to 2018, for
each of the three business segments:
|
Revenues |
|
Earnings before Taxes |
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
Life Insurance |
$ |
125,739,000 |
|
$ |
137,683,000 |
|
(8.7%) |
|
$ |
6,566,000 |
|
$ |
30,124,000 |
|
|
(78.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
16,502,000 |
|
$ |
16,440,000 |
|
0.4% |
|
$ |
2,660,000 |
|
$ |
3,916,000 |
|
|
(32.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
140,820,000 |
|
$ |
125,496,000 |
|
12.2% |
|
$ |
4,718,000 |
|
$ |
(7,860,000 |
) |
|
160.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
283,061,000 |
|
$ |
279,619,000 |
|
1.2% |
|
$ |
13,944,000 |
|
$ |
26,180,000 |
|
|
(46.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share was $0.60 for the
twelve months ended December 31, 2019, compared to net earnings of
$1.19 per share for the prior year, as adjusted for the effect of
annual stock dividends. Book value per common share was
$10.86 as of December 31, 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 18,117,843 Class
A equivalent shares outstanding as of December 31, 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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