Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA")
announced financial results for the third quarter ended September 30,
2012.
SNFC announced revenues of $63,748,000 for the three months ended
September 30, 2012. This represents a 54% increase from 2011. Pre-tax
earnings from operations for the three-month period increased 634% from
$835,000 in 2011 to $6,132,000. After-tax earnings increased 482% from
$770,000 in 2011 to $3,990,000 in 2012.
SNFC announced revenues of $167,599,000 for the nine months ended
September 30, 2012. This represents a 50% increase from 2011. Pre-tax
earnings from operations for the nine-month period increased from a loss
of ($347,000) in 2011 to a gain of $13,497,000 in 2012. After-tax
earnings increased from $457,000 in 2011 to $9,245,000 in 2012.
Scott Quist, Chairman of the Board, President and Chief Executive
Officer of the Company, said, “Our life segment continues its excellent
profitability results. These results represented the third-best third
quarter ever for our life segment; this result has been accomplished
despite record low interest rates. Nevertheless, low interest rates
continue to plague increased profitability. Our death care segment
operating profit is actually 233% above prior year to date numbers, but
the results continue to be masked by the depreciation charges the
segment incurs by virtue of the REO they have undertaken and manage for
its sister companies. We also continue to see cremation rates rise in
all markets we serve. We have accomplished considerable change in our
mortgage segment converting to a retail dominated distribution model.
Without question, the low interest rates have materially benefited our
mortgage segment, but significantly the percentage of our business that
is purchased originated, rather than simply refinance, is approximately
two times national averages. Thus, we believe that our mortgage model
will be more sustainable versus its peers as interest rate normalize.”
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, 2012 as compared to 2011 for each of the three business
segments:
For the three months ended September 30, 2012:
|
|
|
|
Revenues
|
|
|
Earnings (Losses) before Taxes
|
|
|
|
|
2012
|
|
2011
|
|
%
|
|
|
2012
|
|
2011
|
|
%
|
|
Life Insurance
|
|
|
$
|
16,346,000
|
|
$
|
16,681,000
|
|
(2.0
|
%)
|
|
|
$
|
938,000
|
|
|
$
|
773,000
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries
|
|
|
|
2,704,000
|
|
|
2,446,000
|
|
10.5
|
%
|
|
|
|
(92,000
|
)
|
|
|
(318,000
|
)
|
|
71.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages
|
|
|
|
44,698,000
|
|
|
22,198,000
|
|
101.4
|
%
|
|
|
|
5,286,000
|
|
|
|
380,000
|
|
|
1,291.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
63,748,000
|
|
$
|
41,325,000
|
|
54.3
|
%
|
|
|
$
|
6,132,000
|
|
|
$
|
835,000
|
|
|
634.4
|
%
|
For the nine months ended September 30, 2012:
|
|
|
|
Revenues
|
|
|
Earnings (Losses) before Taxes
|
|
|
|
|
2012
|
|
2011
|
|
%
|
|
|
2012
|
|
2011
|
|
%
|
|
Life Insurance
|
|
|
$
|
51,455,000
|
|
$
|
50,428,000
|
|
2.0
|
%
|
|
|
$
|
3,830,000
|
|
$
|
2,191,000
|
|
|
74.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries
|
|
|
|
8,394,000
|
|
|
9,203,000
|
|
(8.8
|
%)
|
|
|
|
57,000
|
|
|
496,000
|
|
|
(88.5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages
|
|
|
|
107,750,000
|
|
|
52,333,000
|
|
105.9
|
%
|
|
|
|
9,610,000
|
|
|
(3,034,000
|
)
|
|
416.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
167,599,000
|
|
$
|
111,964,000
|
|
49.7
|
%
|
|
|
$
|
13,497,000
|
|
$
|
(347,000
|
)
|
|
3,989.6
|
%
|
Net earnings per common share were $.42 for the three months ended
September 30, 2012, compared to $.08 per share for the prior year as
adjusted for the effect of annual stock dividends. Net earnings per
common share was $.97 for the nine months ended September 30, 2012,
compared to $.05 per share for the prior year as adjusted for the effect
of annual stock dividends. Book value per common share was $7.38 as of
September 30, 2012, compared to $6.48 as of December 31, 2011. 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 9,592,385
Class A equivalent shares outstanding as of September 30, 2012.
If there are any questions, please contact Mr. Scott M. Quist or Mr.
Stephen M. Sill at:
Security National Financial Corporation
P.O. Box 57250
Salt
Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882
