Security National Financial Corporation Reports Financial Results for the Quarter Ended June 30, 2022
15 Agosto 2022 - 11:01AM
Security National Financial Corporation (SNFC) (NASDAQ symbol
"SNFCA") announced financial results for the quarter ended June 30,
2022.
For the three months ended June 30, 2022, SNFC’s
pretax earnings decreased 68% from $14,677,000 in 2021 to
$4,730,000 in 2022. For the six months ended June 30, 2022, pretax
earnings decreased 70% to $9,173,000 from $31,032,000 in 2021.
Scott M. Quist, President of the Company,
said:
“2022 is proving to be a very challenging year
for our Company given the dramatic rise in interest rates, the
significant declines in the stock markets, the continuing tight
labor markets, and the meteoric rise of inflationary pressures.
Regarding our Mortgage Segment, earnings decreased 95%, directly
attributable to the rapid rise in interest rates. Industry wide,
refinance loan volumes have decreased 80% and purchase mortgage
loan volumes have decreased 19% on a year-over-year basis. That
huge volume decrease put terrific downward pressure on margins and
mandated rapid expense realignments, including in staffing size.
Suffice it to say that operational losses are extant in the
mortgage world. Many thanks are in order to our management team
which stepped up to the plate to perform the necessary tasks in the
face of a very difficult macro environment.
“Our Life Insurance and Cemetery/Mortuary
Segments similarly rose to the occasion and significantly improved
operational earnings. Adjusting pretax earnings to remove
unrealized stock gains and losses, our Life Insurance Segment’s
income is 25% above 2021 and our Cemetery Mortuary Segment’s income
is 12% above 2021 levels. Unrealized gains and losses relating to
the stock market declines exceed $2.8 million dollars for 2022 and
represent a swing of over $4.1 million dollars compared to our June
2021 results. Referring to the ongoing effects of COVID 19, in our
Life Insurance Segment we believe we are seeing a leveling off
(albeit at a seemingly higher base) of death claims, which is
financially positive. However, we are seeing a corresponding
decrease in case volumes from 2020/2021 levels in our Cemetery
Mortuary Segment, which is financially negative. In both instances
it has required considerable management skill and efforts to adjust
to the very different operating environments that have been rapidly
presented to us. For all of our segments, as work volumes have
increased hiring has been difficult and as work volumes have
decreased inflation has significantly hampered cost reduction
efforts. Many thanks are owed to our talented management and
operational teams.”
SNFC has three business segments. The following
table shows the revenues and earnings before taxes for the three
months ended June 30, 2022, as compared to 2021, for each of the
three business segments:
|
Revenues |
|
Earnings before Taxes |
|
|
2022 |
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
Life Insurance |
$ |
41,166,000 |
|
$ |
40,657,000 |
|
1.3% |
|
|
$ |
3,932,000 |
|
|
$ |
4,694,000 |
|
(16.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
7,291,000 |
|
$ |
6,808,000 |
|
7.1% |
|
|
$ |
1,486,000 |
|
|
$ |
2,269,000 |
|
(34.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
47,110,000 |
|
$ |
69,285,000 |
|
(32.0%) |
|
|
$ |
(688,000 |
) |
|
$ |
7,714,000 |
|
(108.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
95,567,000 |
|
$ |
116,750,000 |
|
(18.1%) |
|
|
$ |
4,730,000 |
|
|
$ |
14,677,000 |
|
(67.8%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2022:
|
Revenues |
|
Earnings before Taxes |
|
|
2022 |
|
|
2021 |
|
|
|
|
2022 |
|
|
2021 |
|
|
Life Insurance |
$ |
82,668,000 |
|
$ |
79,601,000 |
|
3.9% |
|
|
$ |
4,748,000 |
|
$ |
7,389,000 |
|
(35.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cemeteries/Mortuaries |
$ |
14,754,000 |
|
$ |
13,807,000 |
|
6.9% |
|
|
$ |
3,506,000 |
|
$ |
4,970,000 |
|
(29.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
$ |
100,570,000 |
|
$ |
146,001,000 |
|
(31.1%) |
|
|
$ |
919,000 |
|
$ |
18,673,000 |
|
(95.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
197,992,000 |
|
$ |
239,409,000 |
|
(17.3%) |
|
|
$ |
9,173,000 |
|
$ |
31,032,000 |
|
(70.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share was $.31 for the
six months ended June 30, 2022, compared to net earnings of $1.07
per share for the prior year, as adjusted for the effect of annual
stock dividends. Book value per common share was $13.47 as of June
30, 2022, compared to $14.77 as of December 31, 2021.
The Company has two classes of common stock
outstanding, Class A and Class C. There were 20,826,605 Class A
equivalent shares outstanding as of June 30, 2022.
If there are any questions, please contact Mr.
Garrett S. Sill, Mr. Brian Nelsen 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
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