SALT LAKE CITY--(BUSINESS WIRE)--
Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA")
announced financial results for the third quarter ended September 30,
2013.
SNFC announced revenues of $50,552,000 for the three months ended
September 30, 2013. This represents a 20.7% decrease from 2012. Pre-tax
earnings from operations for the three month period decreased 67.9% from
$6,132,000 in 2012 to $1,964,000. After-tax earnings decreased 68.2%
from $3,990,000 in 2012 to $1,266,000.
SNFC announced revenues of $166,737,000 for the nine months ended
September 30, 2013. This represents a .5% decrease from 2012. Pre-tax
earnings from operations for the nine month period decreased from
$13,497,000 in 2012 to $9,661,000. After-tax earnings also decreased
from $9,245,000 in 2012 to $6,099,000.
Scott Quist, Chairman of the Board, President and Chief Executive
Officer of the Company, said, "I am particularly pleased with the
results of our operations for the first three quarters of 2013.
Companywide this was our fourth best nine month result in the history of
the Company. As we entered 2013 we had cash and short term investments
of almost $80 million due primarily to a late 2012 reinsurance
acquisition. That level of uninvested assets gave the Life Segment a
slow start to the year, but we have invested $26 million of that amount
which has improved our profitability markedly. Mortality and persistency
continue very positive trends and that with our improved investment
income resulted in the Life Segment's best third quarter. As we continue
our investing efforts, profitability should continue to improve.
"Our Mortgage Segment is dealing well with the increase in interest
rates and the resulting loss of refinance volumes. As we all know, in
May and June interest rates essentially rose by a full percentage point,
which effectively shut off the majority of refinance transactions. Prior
to that time, industrywide refinance transactions comprised 77% of the
loans closed nationwide. Our Company's refinance percentage was never
that high and as a result, we believe that we have gained market share
as the market has shrunk. During the third quarter our loan origination
volume decreased 25% versus 2012, which we believe is a smaller decrease
than that experienced by our competitors as reported by the popular
press. Currently, we expect our origination volumes to be $2.2 billion
at year end, a 12% decrease from 2012, which we believe, if
accomplished, will represent a gain in market share. Profitability has
been negatively affected as we rationalize costs to reflect our current
volumes and by margin compression from our competitors, but we believe
we have reason for optimism. Finally, over the last year we have
retained servicing rights from some of our own loan originations and
currently have a portfolio of about $750 million.
"Our Death Care Segment improved its earnings from operations prior to
REO related depreciation by 38% versus 2012. By way of explanation, much
of our REO is held by our Death Care Segment. The fluctuation of the
depreciation expense generated by our REO makes year to year comparisons
of the death care operations difficult. Nevertheless, our Death Care
Segment EBITD margin was slightly higher than 16% at the end of the
third quarter and has consistently improved over the last several years."
SNFC has three business segments. The following table shows the revenues
and earnings before taxes for the three months and nine months ended
September 30, 2013 as compared to 2012 for each of the three business
segments:
For the three months ended September 30, 2013:
|
|
|
|
Revenues
|
|
|
Earnings (Losses) before Taxes
|
|
|
|
|
2013
|
|
2012
|
|
%
|
|
|
2013
|
|
2012
|
|
|
%
|
|
Life Insurance
|
|
|
$
|
17,341,000
|
|
$
|
16,330,000
|
|
6.2
|
%
|
|
|
$
|
1,102,000
|
|
$
|
922,000
|
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries
|
|
|
|
2,959,000
|
|
|
2,720,000
|
|
8.8
|
%
|
|
|
|
13,000
|
|
|
(76,000
|
)
|
|
117.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages
|
|
|
|
30,252,000
|
|
|
44,698,000
|
|
(32.3
|
%)
|
|
|
|
849,000
|
|
|
5,286,000
|
|
|
(83.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
50,552,000
|
|
$
|
63,748,000
|
|
(20.7
|
%)
|
|
|
$
|
1,964,000
|
|
$
|
6,132,000
|
|
|
(67.9
|
%)
|
For the nine months ended September 30, 2013:
|
|
|
|
Revenues
|
|
|
Earnings (Losses) before Taxes
|
|
|
|
|
2013
|
|
2012
|
|
%
|
|
|
2013
|
|
2012
|
|
%
|
|
Life Insurance
|
|
|
$
|
51,383,000
|
|
$
|
51,439,000
|
|
(0.1
|
%)
|
|
|
$
|
2,358,000
|
|
$
|
3,814,000
|
|
(38.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries
|
|
|
|
9,320,000
|
|
|
8,410,000
|
|
10.8
|
%
|
|
|
|
197,000
|
|
|
73,000
|
|
169.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages
|
|
|
|
106,034,000
|
|
|
107,750,000
|
|
(1.6
|
%)
|
|
|
|
7,106,000
|
|
|
9,610,000
|
|
(26.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
166,737,000
|
|
$
|
167,599,000
|
|
(0.5
|
%)
|
|
|
$
|
9,661,000
|
|
$
|
13,497,000
|
|
(28.4
|
%)
|
Net earnings per common share were $.11 for the three months ended
September 30, 2013, compared to $.36 per share for the prior year as
adjusted for the effect of annual stock dividends. Net earnings per
common share was $.52 for the nine months ended September 30, 2013,
compared to $.92 per share for the prior year as adjusted for the effect
of annual stock dividends. Book value per common share was $7.56 as of
September 30, 2013, compared to $7.36 as of December 31, 2012. The
Company has two classes of common stock outstanding, Class A and Class
C. The Class C shares share in distribution of earnings and capital on a
10-for-1 basis with the Class A shares; therefore, for earnings per
share and book value per share calculations, the Class C shares are
converted to Class A shares on a 10-for-1 basis. There were 11,383,867
Class A equivalent shares outstanding as of September 30, 2013.
If there are any questions, please contact Mr. Scott M. Quist or Mr.
Garrett S. Sill at:
Security National Financial Corporation
P.O. Box 57250
Salt
Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882
Security National Financial Corporation
Scott M. Quist or Garrett
S. Sill, 801-264-1060
fax: 801-265-9882
Source: Security National Financial Corporation
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