Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2019
For the three months ended
“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
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
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
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
If there are any questions, please contact Mr.
P.O. Box 57250
Phone (801) 264-1060
Fax (801) 265-9882
Source: Security National Financial Corporation