Security National Financial Corporation Reports Financial Results for the Quarter Ended March 31, 2021

Rhea-AI Summary

Security National Financial Corporation (SNFCA) reported a significant increase in financial results for Q1 2021. After-tax earnings surged by 751%, rising from $1,424,000 in 2020 to $12,129,000 in 2021. Revenues also grew by 54% to $122,659,000. The Life Insurance segment faced a 37% rise in death claims, influenced by the pandemic, contrasting with increased profitability in the Memorial segment due to better preneed sales. The net earnings per share improved to $0.61 from $0.08 year-over-year, and book value per share rose to $14.18.

Positive

• Net earnings increased 751% to $12,129,000.
• Revenues grew by 54% to $122,659,000.
• Net earnings per common share rose to $0.61.
• Book value per common share improved to $14.18.

Negative

• Life segment experienced a 37% increase in death claims due to Covid-19.

SALT LAKE CITY, May 17, 2021 (GLOBE NEWSWIRE) -- Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the quarter ended March 31, 2021.

For the three months ended March 31, 2021, SNFC’s after-tax earnings from operations increased 751% from $1,424,000 in 2020 to $12,129,000 in 2021, on a 54% increase in revenues to $122,659,000.

Scott M. Quist, President of the Company, said: “I can’t help but admire the execution excellence our teams have accomplished in the first quarter.  Overall earnings are up 1,000%.  The low interest rate environment has provided our Mortgage Segment a favorable tailwind but note that every segment’s earnings are up triple digits. The Covid induced climate brings blessings and curses.  In no way do we minimize the personal hardships and losses the Pandemic has inflicted on so many individuals and families - our insurance and memorial businesses essentially have front row seats to observe some of those effects.  From a financial point of view, low interest rates have helped our Mortgage Segment, but low rates and higher death claims have hurt our Life Segment.  In total, death claims increased 37% over 2020 levels with the major part of that increase being Covid related.  Better cash and expense management has helped to offset the increased death claims.  While our Memorial segment has experienced higher death counts, a major factor in its increased profitability has been improved preneed sales.  Again, our job is to execute our business plans in whatever environment we have, and I believe our teams have done that in an admirable fashion.” 

SNFC has three business segments.  The following table shows the revenues and earnings before taxes for the three months ended March 31, 2021, as compared to 2020, for each of the three business segments:

	Revenues									Earnings before Taxes
		2021			2020						2021			2020
Life Insurance	$	38,944,000		$	33,206,000		17.3	%		$	2,695,000		$	(3,069,000	)		187.8	%
Cemeteries/Mortuaries	$	6,999,000		$	4,014,000		74.4	%		$	2,701,000		$	105,000			2,472.4	%
Mortgages	$	76,716,000		$	42,389,000		81.0	%		$	10,959,000		$	4,438,000			146.9	%
Total	$	122,659,000		$	79,609,000		54.1	%		$	16,355,000		$	1,474,000			1,009.6	%

Net earnings per common share was $.61 for the three months ended March 31, 2021, compared to net earnings of $.08 per share for the prior year, as adjusted for the effect of annual stock dividends.  Book value per common share was $14.18 as of March 31, 2021, compared to $13.87 as of December 31, 2020. 

The Company has two classes of common stock outstanding, Class A and Class C.  There were 19,169,211 Class A equivalent shares outstanding as of March 31, 2021.

If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott M. 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 the Company and its business. The predictions in these 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 are the financial results for SNFCA in Q1 2021?

In Q1 2021, SNFCA reported after-tax earnings of $12,129,000, a 751% increase from the previous year, with revenues also up 54% to $122,659,000.

How did SNFCA's net earnings per share change in Q1 2021?

Net earnings per common share for SNFCA in Q1 2021 increased to $0.61 from $0.08 in the prior year.

What was the impact of Covid-19 on SNFCA's life insurance segment?

The life insurance segment of SNFCA faced a 37% rise in death claims in Q1 2021, primarily due to the Covid-19 pandemic.

What was the book value per share for SNFCA at the end of Q1 2021?

The book value per common share for SNFCA increased to $14.18 as of March 31, 2021.