SECURITY NATIONAL FINANCIAL CORPORATION Security National Financial Corporation (SNFC) (NASDAQ: SNFCA) announced financial results for the quarter ended March 31, 2015.
For the three months ended March 31, 2015, SNFC’s pre-tax earnings from operations increased 1,706% from $166,000 in 2014 to $2,998,000 in 2015, on a 42% increase in revenues to $64,049,000. After tax earnings increased 1,241% from $139,000 in 2014 to $1,864,000 in 2015.
Scott Quist, Chairman of the Board, President and Chief Executive Officer of the Company, said: “We are very pleased with the performance of our Company this past quarter. In our Life Insurance Segment, earnings improved 5.5% on a revenue improvement of 13.6%. First year premium growth remained strong through the first quarter, but death claims increased and investment results moderated in comparison to 2014.
In our Cemetery and Mortuary Segment, the management changes that have been implemented over the last 5 months have begun to bear fruit. EBITD increased from $461,000 (15% of net revenue) in 1st quarter 2014, to $627,000 (21% of net revenue) in 2015. This represents the best operating income for this segment for at least the past 10 years. The improvement resulted from an increased case count at our cemetery locations and better expense control in our sales efforts. Preneed sales volumes and mortuary results were essentially flat as compared to the prior year; thus we believe there is ample room for additional income growth.
Year-to-date Mortgage Segment income is significantly greater than last year, improving from a loss in 1st quarter 2014 to a profit of nearly $1.2 million in 2015. Significantly, our mortgage origination volume for the quarter increased 74% over the prior year. Further, in addition to benefitting from an industrywide increase in refinance volumes, the Mortgage Segment also experienced an increase in its core purchase-loan originations, where it focuses most its marketing efforts, of slightly over 22%.
SNFC has three business segments. The following table shows the revenues and earnings before taxes for the three months ended March 31, 2015, as compared to 2014 for each of the segments:
| Revenues | Earnings before Taxes | |||||||||||||||||||||||||
| 2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||||
| Life Insurance | $ | 20,985,000 |
| $ | 18,473,000 | 13.6 | % | $ | 1,404,000 | $ | 1,331,000 | 5.5 | % | |||||||||||||
| Cemeteries/Mortuaries | 3,098,000 | 3,040,000 | 1.9 | % | 409,000 | 183,000 | 123.5 | % | ||||||||||||||||||
| Mortgages | 39,966,000 | 23,540,000 | 69.8 | % | 1,185,000 | (1,348,000 | ) | 187.9 | % | |||||||||||||||||
| Total | $ | 64,049,000 | $ | 45,053,000 | 42.2 | % | $ | 2,998,000 | $ | 166,000 | 1,706.0 | % | ||||||||||||||
The net gain per common share was $.14 for the three months ended March 31, 2015, compared to a net gain of $.01 per share for the same period last year, as adjusted for the effect of annual stock dividends. Book value per common share was $7.75 as of March 31, 2015, compared to $7.54 as of December 31, 2014. The Company has two classes of common stock outstanding, Class A and Class C. As of March 31, 2015, there were 12,980,166 shares outstanding.
If there are any questions, please contact Mr. Scott M. Quist or Mr. Garrett S. Sill at:
Security National Financial Corporation
P.O. Box 57250
Salt
Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882
