Security National Financial Corporation (SNFC) is a diverse, but integrated company. They are diverse in that they have three distinct segments – Mortgages, Life Insurance, and Cemeteries/Mortuaries – under their umbrella. They are an integrated company in that all segments report together to bring a bottom line to the company.
And, the integration was good for the Salt Lake City based public company in the 2nd Quarter of 2020 as you can read in their recently released financial results for 2Q 2020. You can access that report here.
While all three segments had increases in revenue for the quarter it was the Mortgage segment that really took off. Revenues increased over the same period in 2019 114% which led to a 490% increase in after-tax earnings for the company. The after-tax earnings for SNFC for 2Q 2020 increased from $3.4 million in 2Q 2019 to $20.5 million in 2Q 2020.
Here is what President Scott M Quist said of that segment, ““The majority of our income improvement came from our mortgage segment. . . . . I think it fair to say that in the first half of 2020 mortgage banks that had a strong and liquid capital base and vibrant sales force were economically rewarded.”
While the Mortgage segment did so well, it is really at the other two segments that those of us in the death care profession look at for performance. The insurance segment, which includes preneed insurance and made a major acquisition of Kilpatrick Life Insurance late last year, experienced losses for the first four months of 2020 but now appears to be profitable according to the report. Here is a Funeral Director Daily article on the Kilpatrick acquisition.
President Quist takes a more moderate few of the calendar period in front of them as he says, “. . . . Covid-19 claims are having, and will continue to have, an impact. Lastly, obtaining necessary investment yields within acceptable risk tolerances is becoming more difficult in this low interest rate environment. We do not anticipate those economic circumstances changing over the near term.”
Finally, SNFC reported that their Cemetery/Mortuary segment reported an increase of 16.8% in revenue for 2Q 2020. For the first six months of the year they also report an increase — of 4.7%. Cemetery/Mortuary revenues for the first six month came in at $9.3 million as compared to $8.9% for the same period last year.
In the report, here is what President Quist said of the Cemetery/Mortuary segment, “Our Memorial segment delivered a very solid Q2 and YTD with operational income increasing 42% YTD over 2019. Much of that improvement, but not all, was driven by increasing preneed cemetery sales.”
Funeral Director Daily take: From our point of view it is fun to watch this company grow little by little over the time period that I have been aware of it. We do, as their Kilpatrick acquisition may attest to, see them becoming a little more aggressive in their financial/insurance division which we believe, over time, will serve them well.
Disclaimer: The author of this article holds a stock position in Security National Financial Corporation.
More news from the world of Death Care:
- After a miraculous recovery from a brutal accident, chief embalmer is back on the job during the coronavirus pandemic when he’s need most. San Antonio Express News (TX)
- Diamond Crystal Brands tap new CEO. (The article is about William Goetz, formerly of Carriage Services). Food Business News
- Racist graffiti painted on headstone at Massachusetts cemetery. Video and article. NBC 10 Boston (MA)
- How are C-Suite award nominees are managing the pandemic. (Includes Joy Symonds, Symonds-Madison Funeral Home). Daily Herald of Suburban Chicago (IL)