Security National Financial Corporation Reports Financial Results for the Quarter Ended March 31, 2024

Rhea-AI Summary

Security National Financial (SNFCA) reported significant financial improvements for Q1 2024. Earnings before tax surged by 507%, reaching $9.6M, up from $1.6M in Q1 2023. Revenue grew by 2% to $81.2M. The company attributed the earnings increase to an 8% reduction in total expenses, particularly in selling, general, and administrative costs. The Insurance and Memorial Segments saw revenue growth of 7%, while investment income rose by 12%. The Mortgage Segment reduced its year-over-year loss by 50%. Net earnings per share increased to $0.33 from $0.05, and book value per share rose to $14.40. CEO Scott Quist praised the team's efforts, emphasizing the need for continued focus on top-line revenue growth.

Positive

• Earnings before tax increased by 507% from $1.6M to $9.6M.
• Revenue rose by 2% to $81.2M.
• Total expenses decreased by 8%, primarily due to lower selling, general, and administrative costs.
• Insurance and Memorial Segments achieved 7% revenue growth.
• Investment income increased by 12%.
• Mortgage Segment reduced its YOY loss by 50%.
• Net earnings per share increased from $0.05 to $0.33.
• Book value per share increased from $14.11 to $14.40.

Negative

• Mortgage Segment revenue decreased by 16.6%.
• Despite overall revenue growth, the increase was only 2%, indicating modest top-line growth.

News Market Reaction

+13.36%

1 alert

+13.36% News Effect

On the day this news was published, SNFCA gained 13.36%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SALT LAKE CITY, May 14, 2024 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended March 31, 2024.

For the three months ended March 31, 2024, SNFC’s before tax earnings from operations increased 507% from $1,585,000 in 2023 to $9,619,000 in 2024, on a 2% increase in revenues to $81,188,000.

Scott Quist, Chairman of the Board, President, and Chief Executive Officer of SNFC, said, “Anytime we increase earnings 507% we are pleased. Obviously, since total revenues increased only 2%, the bulk of the earnings improvement came from expense control. Total expenses decreased a little over 8%, with the bulk of the decrease coming from “Selling, general and administrative expenses”. I am pleased with our team’s efforts and results.

In a nutshell, revenues increased, and costs decreased. While cost control is important, and we believe we have more work to do, we are focused on top-line revenue growth. Our Insurance and Memorial Segments both achieved 7% revenue growth and our investment income, across all Segments, increased 12%. We believe we have room to grow our investment income since our cash position increased $23MM, to $151MM, during the quarter. From a profitability viewpoint, our Mortgage Segment decreased its YOY loss by 50% and our Memorial and Insurance Segments experienced their best ever operational results. All in all, I believe this was a very strong quarter for us.”

SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended March 31, 2024, as compared to 2023, for each business segment:

	Revenues												Earnings before Taxes
		2024				2023								2024				2023
Life Insurance	$	49,971,000			$	45,415,000				10.0%			$	8,530,000			$	3,684,000				131.5%
Cemeteries/Mortuaries	$	8,787,000			$	7,199,000				22.1%			$	3,053,000			$	1,784,000				71.1%
Mortgages	$	22,430,000			$	26,887,000				(16.6%)			$	(1,964,000	)		$	(3,883,000	)			49.4%
Total	$	81,188,000			$	79,501,000				2.1%			$	9,619,000			$	1,585,000				506.9%

Net earnings per common share were $.33 for the three months ended March 31, 2024, compared to net earnings of $.05 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $14.40 as of March 31, 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 22,288,158 Class A equivalent shares outstanding as of March 31, 2024.

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.

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

FAQ

How much did SNFCA's earnings before tax increase in Q1 2024?

SNFCA's earnings before tax increased by 507%, reaching $9.6M in Q1 2024, up from $1.6M in Q1 2023.

What was SNFCA's revenue growth in Q1 2024?

SNFCA's revenue grew by 2% to $81.2M in Q1 2024.

What segments contributed to SNFCA's revenue growth in Q1 2024?

The Insurance and Memorial Segments each achieved 7% revenue growth in Q1 2024.

How much did SNFCA reduce its expenses in Q1 2024?

SNFCA reduced its total expenses by 8% in Q1 2024.

What was the net earnings per share for SNFCA in Q1 2024?

Net earnings per share for SNFCA were $0.33 in Q1 2024, up from $0.05 in the previous year.

Did SNFCA's Mortgage Segment improve in Q1 2024?

Yes, the Mortgage Segment reduced its year-over-year loss by 50% in Q1 2024.

What was the book value per share for SNFCA as of March 31, 2024?

The book value per share for SNFCA was $14.40 as of March 31, 2024.

How did SNFCA's investment income perform in Q1 2024?

SNFCA's investment income increased by 12% in Q1 2024.