Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the year ended December 31, 2010.
SNFC announced revenues of $168,530,000 for the year ending December 31, 2010. Pre-tax earnings from operations decreased from $6,348,000 in 2009, to a loss of $1,090,000 in 2010. Net after-tax earnings for the 12-month period decreased from $3,774,000 to a loss of $430,000.
Scott Quist, President of SNFC, noted: "The economic environment within which we must operate continues to be very troubled. With the technical ending of the great recession, we had hoped that our customer base would rebound back to more normal activity. The opposite appears to be the case, and it seems many of our customers, instead of resuming what previously would have been considered normal activity, instead appear to be retrenching further. With regard to our life operations, we have seen some rebound in investment income, and have taken further cost-cutting measures, and the result has been a return to profitability in that segment. New premium sales improved in our middle income markets, but declined during 2010 in our lower income markets that had previously been strong. Those sales appear to be coming back in the early forecasts of 2011.
"In our death care segment, one needs to look behind the results for the causes of the decrease in profitability. About $600,000 of the loss in that segment comes from depreciation of REO, which was not on their statement a year ago, and is not reflective of core operations. We have placed the REO in that segment because of their expertise in property management, and for regulatory and tax considerations. Nevertheless, even removing the effects of the REO, we experienced very poor results in the fourth quarter at our mortuaries that serve a more modest clientele. We have determined that low-cost mortuaries are not a segment within which we can be profitable, and thus will be disposing of those operations over time. Our other more mainstream death care operations appear profitable.
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