Finance

Security National Memorial segment increases earnings 125% for first nine months of 2021

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Security National Financial Corporation (SNFC) released this press release earlier in November which memorialized their operations for the 3rd Quarter of 2021 as well as the first nine-months of 2021.  The Utah based company operates in three business segments with one of those segments being what they call their Memorial Segment.

For the nine months ended on September 30, 2021, the Memorial Segment reported revenue of $20.5 million as compared to nine-month sales in 2020 of $14.8 million. . . that’s a 38.4% increase.  Even more dramatic is that the Memorial Segment’s “Earnings before Taxes” totaled $6.7 million for 2021 as compared to $2.9 million for 2020. . . . .that a 125.7% increase.

Here’s what SNFC President Scott M. Quist said of those results in the press release, “Our Memorial segment also delivered very solid Quarter 3 and year-to-date results with revenues increasing 22% for the quarter and operational income increasing 125% year-to-date. Contributing substantially to those results is an increase in preneed cemetery sales, with improvement in mortuary and cemetery operations also being significant contributors. This excellent performance is not an isolated occurrence. It is instructive to note that our Memorial segment has achieved an average 24% compound annual growth rate in operational income over the last six years.”

SNFC also operates a Life Insurance segment which includes funeral preneed insurance and final expense insurance.  The insurance division also includes C&J Financial, a leader in funeral home insurance assigned funding, and Security National Commercial Capital.

The Insurance Segment reported revenues of $121.6 million for the first nine-months of  2021 as compared to revenues of $110.2 million in 2020. . an increase of a little over 10%.

Here’s what President Quist said of the Insurance Segment, “Our insurance segment’s year-to-date operational income reflects similar solid results, increasing 105% YOY. Death claims are continuing at elevated levels, probably 20% above 2019 baselines. Obviously, COVID-19 claims are having, and will continue to have, an impact. . . .Looking deeper into the revenues, investment income improved significantly, leading to the improved profitability, but premium collections, expenses, and new sales have been essentially flat. . . . . . .obtaining necessary investment yields within acceptable risk tolerances is becoming more difficult in this low interest rate environment.”

Finally, the third leg in the SNFC business portfolio is the Mortgage Segment.  And while not death care related we will note that the nine-month revenues for that division of SNFC has dropped 1.2% for the past nine-month period in comparison to the same period of 2020.  Here’s how President Quist explained that scenario, “. . . .the extraordinary opportunities presented by last year’s confused markets simply have not been available. In a nutshell, our financial performance in 2021 has been very solid and, in many respects, the best in our Company’s history, but the extraordinary gains fueled by the 2020 markets are not being replicated.

Here is the web-site for SNFC’s Memorial Mortuaries and Cemetery segment

Disclaimer:  The author of this article holds a stock position in Security National Financial Corporation.

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