Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA") announced financial results for the year ended December 31, 2011.
SNFC announced revenues of $159,589,000 for the year ending December 31, 2011. Pre-tax earnings from operations increased from a loss of $1,090,000 in 2010 to a gain of $1,237,000 in 2011. Net after tax earnings for the 12 month period increased from a loss of $430,000 to a gain of $1,299,000.
Scott Quist, President of SNFC, noted: "The 4 th quarter marked continued improvement in all of our segments which is reflected in our much improved year end results. In our life segment, focusing on year end numbers, we realized a 45% increase in earnings before taxes on a 22% increase in life related revenues. These improvements reflect the results of our acquisition strategy, continued improvement in the quality of our direct life sales, and improved investment results. Considerable effort has gone into improving policy persistency and mortality, and the financial results are indicative of that effort.
"In our death care segment, our operating profit before depreciation of REO and realized gains swung from a loss of $300,000 in 2010 to a profit of over $300,000 in 2011. Those results are reflective of our 2011 disposition of two of our Arizona entities who had difficulty achieving profitability and improved performance of our ongoing operations. Thus while total revenues were essentially flat, the increase in earnings I believe demonstrates considerable operational improvement. Again, as a note of explanation, our death care operating results are sometimes difficult to interpret because that segment includes our REO and its attendant depreciation and cost numbers. Nevertheless, our death care operating results showed impressive improvement in 2011."We are particularly pleased with the results of our mortgage segment. Over the last 24 months we have spent considerable effort converting what had been a wholesale mortgage origination sales force to a retail mortgage origination sales force. The cost of that conversion, both in terms of dollar outlay and management time, has been significant. Whereas previously we had been as much as 90% wholesale and 10% retail, we are now 71% retail and 29% wholesale in our originations. In addition, significantly, we believe our percentage of purchase related transactions is significantly higher than national averages which indicates a more stable origination platform. While our whole year segment loss for 2011 is essentially equal to the segment loss in 2010, the quarterly results are that our mortgage segment made $380,000 in the third quarter and $1,112,000 in the fourth quarter for a total of $1,492,000 for the second half of the year. Those earnings were accomplished despite a volume contraction, consistent with the industry, of about 1/3 during 2011. Despite the industry wide volume decrease in 2011, we believe we gained market share in the second half of the year. While there remains considerable uncertainty in the mortgage and housing markets we believe our results show positive adaptation to circumstances and give reason for optimism."