Security National Financial (SNFCA) Q2 2024 earnings summary

Executive summary

• Q2 2024 net earnings were $7.3M, up nearly 15% year-over-year, with EPS of $0.31 basic and $0.30 diluted.

• Six-month net earnings reached $14.7M, a 94% increase from the prior year period.

• Revenue for Q2 2024 was $85.8M, up 2.3% year-over-year, driven by higher mortgage fee income and insurance premiums.

• Operational improvements and cost controls were noted across all segments, especially in Insurance.

• Mortgage segment returned to profitability after nine quarters of losses, with a $4M income improvement.

Financial highlights

• Mortgage fee income rose 13.6% year-over-year in Q2 to $29.6M; insurance premiums increased 4% to $30.0M.

• Net investment income declined 10.5% year-over-year to $18.0M in Q2.

• Net mortuary and cemetery sales increased 8.4% to $7.8M in Q2.

• Earnings before taxes for Q2 2024 grew 15.2% to $9.39M.

• Book value per common share was $13.91 as of June 30, 2024.

Outlook and guidance

• Management expects to focus on niche insurance products, expand cemetery and mortuary business, and leverage the housing market.

• Improved premium rates in Insurance are expected to benefit future results, though impact will be delayed.

• The company believes its cash flows and funding sources are adequate for ongoing operations.

• Management highlights a balanced financial structure and adaptability to economic climates.