Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2024

Rhea-AI Summary

Security National Financial (NASDAQ: SNFCA) reported strong financial results for Q2 2024. After-tax earnings increased by 15% to $7,272,000 for the quarter and 94% to $14,746,000 for the first half of 2024. The company's diverse business segments showed mixed performance:

- Life Insurance: Revenue down 1.7%, earnings before taxes down 21.8% for Q2
- Cemeteries/Mortuaries: Revenue down 6.1%, earnings before taxes down 26.1% for Q2
- Mortgages: Revenue up 12.3%, returned to profitability with $134,000 earnings before taxes for Q2

Overall, total revenue increased by 2.3% to $85,791,000 for Q2. Net earnings per share reached $0.62 for the first half of 2024, compared to $0.32 in 2023. Book value per share stood at $13.91 as of June 30, 2024.

Positive

• After-tax earnings increased 15% for Q2 and 94% for H1 2024
• Total revenue grew 2.3% to $85,791,000 in Q2 2024
• Mortgage segment returned to profitability after 8 consecutive quarters of industry-wide losses
• Net earnings per share doubled from $0.32 to $0.62 for H1 2024
• Memorial segment achieved over 20% improvement in mortuary and cemetery operations

Negative

• Life Insurance segment revenue decreased 1.7% and earnings before taxes fell 21.8% in Q2
• Cemeteries/Mortuaries segment revenue dropped 6.1% and earnings before taxes declined 26.1% in Q2
• Book value per share decreased from $14.11 to $13.91 between December 31, 2023, and June 30, 2024

News Market Reaction – SNFCA

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+3.65% News Effect

On the day this news was published, SNFCA gained 3.65%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALT LAKE CITY, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended June 30, 2024.

For the three months ended June 30, 2024, SNFC’s after tax earnings increase nearly 15% from $6,353,000 in 2023 to $7,272,000 in 2024. For the six months ended June 30, 2024, after tax earnings increased 94% to $14,746,000 from $7,593,000 in 2023.

Scott M. Quist, President of the Company, said:

“I am quite pleased with our Company’s financial performance in the first half of 2024. To have a 95% increase in pretax income over 2023 is an excellent performance. In my view our operational income was even better. Because we have substantial real estate investments, sometimes the associated investment income can be a little “lumpy”, just given its nature. This lumpiness occurred, especially in our Life Insurance and Memorial segments, comparing 2024 to 2023. From an operational perspective our Memorial Team achieved an admirable 20% plus improvement in the first half of the year in both mortuary and cemetery operations. Our Insurance Team continued to hold costs steady in the inflationary environment and improved our premium rates significantly. The improved premium rates will not show up in the financial statement for a while since they apply only to new business, but they nevertheless represent significant effort and achievement in understanding and adapting to our changing markets. Our Mortgage Segment, through extraordinary continuous effort, achieved the first quarter of profitability in the last nine quarters. As an instructional backdrop, the Mortgage Bankers Association reports an unprecedented 8 consecutive quarters of industry-wide negative production profit. Previously the MBA had never reported 2 consecutive quarters of negative production profit and only 3 total quarters going back to Q3 2008. To say that the mortgage market has been challenged over the last two years is an understatement. Our Mortgage Team continues to tackle costs which are still arguably high, but coming down, and have attracted new top-notch talent in both production and back-office roles. To have achieved a $4,000,000 improvement in income on essentially the same loan volume is noteworthy. I believe 2024 again demonstrates the financially balanced nature of our Company and the excellent and continuously improving quality of our teams, which enable us to thrive in a variety of economic climates.”  

SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended June 30, 2024, as compared to 2023, for each of the three business segments:

	Revenues								Earnings before Taxes
		2024			2023					2024				2023
Life Insurance	$	47,237,000		$	48,071,000		(1.7%)		$	7,165,000			$	9,158,000			(21.8%)
Cemeteries/Mortuaries	$	8,278,000		$	8,812,000		(6.1%)		$	2,091,000			$	2,828,000			(26.1%)
Mortgages	$	30,276,000		$	26,963,000		12.3%		$	134,000			$	(3,837,000	)		103.5%
Total	$	85,791,000		$	83,846,000		2.3%		$	9,390,000			$	8,149,000			15.2%
For the six months ended June 30, 2024:
	Revenues								Earnings before Taxes
		2024			2023					2024				2023
Life Insurance	$	97,208,000		$	93,486,000		4.0%		$	15,694,000			$	12,842,000			22.2%
Cemeteries/Mortuaries	$	17,066,000		$	16,011,000		6.6%		$	5,144,000			$	4,613,000			11.5%
Mortgages	$	52,706,000		$	53,850,000		(2.1%)		$	(1,829,000	)		$	(7,721,000	)		(76.3%)
Total	$	166,980,000		$	163,347,000		2.2%		$	19,009,000			$	9,734,000			95.3%

Net earnings per common share was $.62 for the six months ended June 30, 2024, compared to net earnings of $.32 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $13.91 as of June 30, 2024, compared to $14.11 as of December 31, 2023.

The Company has two classes of common stock outstanding, Class A and Class C. There were 23,413,999 Class A equivalent shares outstanding as of June 30, 2024.

If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott Quist at:

Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882

This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Security National Financial Corporation and its business. The predictions in the statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.

FAQ

What was SNFCA's after-tax earnings growth for Q2 2024?

SNFCA's after-tax earnings increased by 15% to $7,272,000 in Q2 2024 compared to $6,353,000 in Q2 2023.

How did SNFCA's mortgage segment perform in Q2 2024?

SNFCA's mortgage segment returned to profitability in Q2 2024, with earnings before taxes of $134,000, compared to a loss of $3,837,000 in Q2 2023. Revenue increased by 12.3% to $30,276,000.

What was SNFCA's net earnings per share for the first half of 2024?

SNFCA reported net earnings of $0.62 per share for the six months ended June 30, 2024, compared to $0.32 per share in the same period of 2023.

How did SNFCA's Life Insurance segment perform in Q2 2024?

SNFCA's Life Insurance segment saw a 1.7% decrease in revenue to $47,237,000 and a 21.8% decrease in earnings before taxes to $7,165,000 in Q2 2024 compared to Q2 2023.