Security National Financial Corporation (SNFC) filed their 3rd Quarter 2024 Form 10-Q last Thursday and with that filing we got a look at the company’s financial results for the 3rd Quarter of 2024.  In that report we noticed that the Revenue for the company’s Mortuary and Cemetery division dropped by 5.8% as compared to the same quarter of 2023.

 

The Mortuary/Cemetery division of SNFC reported $6.81 million in sales for 3Q24 as compared to $7.2 million in the same quarter of 2023.  Here’s what the company’s Form 10-Q said about that result:

 

“Net mortuary and cemetery sales decreased by $420,000, or 5.8%, to $6,814,000 for the three month period ended September 30, 2024, from $7,234,000 for the comparable period in 2023. This decrease was primarily due to a $612,000 decrease in cemetery pre-need sales and a $113,000 decrease in cemetery at-need sales, which were partially offset by a $305,000 increase in mortuary at-need sales.”

 

As you probably know if you follow SNFC, the company reports in three divisions with Mortuary/Cemetery being only one of those divisions.  The other two divisions include the Mortgage Division and the Life Insurance Division, where SNFC competes in the Preneed funeral insurance market.

 

When those two divisions are added into the SNFC 3rd Quarter 2024 results the picture is much better.  Total Revenues for Security National Financial for the 3Q24 period total $88.2 million which is a 10.0% increase over the same period of 2023 ($80.2 million).

 

The Insurance Segment, on its own, had a 3.8% increase over last year’s 3rd Quarter bringing its Revenue to $30.0 million for the quarter.  That’s up from $28.9 million in 3Q23.  Here’s what the company’s Form 10-Q had to say about the 3Q24 Insurance Segment:

 

“Insurance premiums and other considerations increased by $1,104,000, or 3.8%, to $30,011,000 for the three month period ended September 30, 2024, from $28,907,000 for the comparable period in 2023. This increase was primarily due to an increase of $1,199,000 in renewal premiums, which was partially offset by a decrease of $95,000 in first year premiums.”

 

For the Nine-month period ending with the 3rd Quarter on September 30, 2024, all three segments have increased Revenues over the same period in 2023.  For that period, the Mortgage segment has improved by 6.1%, the Insurance segment by 5.0%, and the Mortuary/Cemetery segment by 3.1%.

 

Those Revenue increases have filtered to the bottom line for SNFC as Nine-Month Net Earnings for the company sit at $26.5 million as of September 30, 2024, as compared to $11.6 million on the same date in 2023.  That’s a 128% increase on that metric for the company over the past year.

 

Security National Financial Corporation’s Form 10-Q describes their Death Care related businesses as such in that document:

 

“The Company’s life insurance business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident and health insurance products. The Company places specific marketing emphasis on funeral plans through pre-need planning.”

 

“The Company sells mortuary services and products through its nine mortuaries in Utah and three mortuaries in New Mexico. The Company also sells cemetery products and services through its five cemeteries in Utah, one cemetery in San Diego County, California, and one cemetery in Santa Fe, New Mexico. At-need product sales and services are recognized as revenue when the services are performed or when the products are delivered. Pre-need cemetery product sales are deferred until the merchandise is delivered and services performed. Recognition of revenue for cemetery land sales occurs when 10% of the purchase price is received.”

 

You can click here to access the company’s Security and Exchange Form 10-Q for the 3rd Quarter of 2024.

 

Disclaimer — The author of this article for Funeral Director Daily is a shareholder of SNFC.

 

Funeral Director Daily take:  The decrease in cemetery pre-need sales and the increase in funeral at-need sales is somewhat contradictory to what we have seen in other public company reports for this time period.  However, the SNFC Mortuary/Cemetery segment is somewhat of a small sample size, only regionally exposed, and probably not reflective in getting a  reading on the momentum in the USA in general.

 

SNFC’s Mortuary/Cemetery segment over a longer period of time can be an indication of how some of the larger regional or area firms may be doing.  I don’t think one quarter is really indicative of where they have been, where they are, or where they are headed.

 

Funeral Director Daily has filed this summary on the basis of Security National Financial Corporation’s Form 10-Q for the 3rd Quarter of 2024.  Generally, we also look to a press release by the company for their thoughts on the quarterly report.  However, as of yesterday we were not able to locate a press release on the results from SNFC.  If and when one is published we will share it with our readers.

 

More news from the world of Death Care:

• Two local Dignity Memorial properties win Excellence award at NFDA convention.  Biz New Orleans (LA)
• Gen Z more likely to want a traditional burial than Baby Boomers.  Axios – New Orleans (LA)
• FEMA offering disaster funeral assistance in Georgia.  WJBF News Channel 6 – Augusta (GA)

 

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