Core Viewpoint - Security National Financial Corporation (SNFC) reported a significant decrease in after-tax earnings for Q1 2025, down approximately 42% compared to the same period in 2024, primarily due to declines in investment income and increased personnel costs [1][2][6]. Financial Performance - After-tax earnings for Q1 2025 were $4.338 million, down from $7.475 million in Q1 2024, representing a decrease of approximately $3.1 million [1]. - Pre-tax earnings also decreased by about 42%, or $4.05 million, to $5.571 million [1]. - Net earnings per common share fell to $0.18 from $0.31 year-over-year, while book value per common share increased slightly to $14.68 from $14.45 [8]. Segment Performance - The Life Insurance segment reported revenues of $49.287 million, a decrease of 1.4% from $49.971 million in 2024, with pre-tax earnings down 37.5% to $5.327 million [8]. - The Cemeteries/Mortuaries segment saw revenues decline by 7.6% to $8.119 million, with pre-tax earnings down 26.7% to $2.238 million [8]. - The Mortgages segment experienced a revenue increase of 12.9% to $25.334 million, although it reported a slight pre-tax loss of $1.994 million [8]. Investment Income Analysis - Approximately 75% of the $4.05 million decrease in pre-tax income was attributed to declines in realized and unrealized investment income, with a notable $3 million decline in investment income [2][4]. - Of the $3 million decline in investment income, about 56% ($1.7 million) was related to decreased construction profits and fewer home closings compared to Q1 2024 [3]. - The stock market decline accounted for roughly 42% ($1.25 million) of the investment income decrease, with the company opting not to liquidate positions, resulting in unrealized losses [4]. Personnel Costs and Strategic Investments - Personnel costs rose by 11.7%, or approximately $2.2 million, primarily due to annual compensation increases and strategic hiring to enhance sales and fulfillment capabilities [6]. - The increase in personnel costs is viewed as a necessary investment for future growth, despite the immediate impact on earnings [6]. Operational Highlights - Despite the decrease in income, the company achieved a 4% increase in families served in the Death Care Segment and improved premium margins in the Insurance Segment [7]. - The Mortgage Segment reported an 11% increase in volume compared to Q1 2024, indicating positive operational performance [7].

Company Overview - Matthews Memorialization, a division of Matthews International Corporation, has acquired The Dodge Company for $57 million, enhancing its product offerings in the death care industry [1] - The Dodge Company is recognized as the largest supplier of embalming chemicals and cosmetics in North America, providing a wide range of products for funeral service providers since its founding in 1893 [5] Strategic Implications - The acquisition aligns with Matthews' strategy to offer a comprehensive range of products and solutions to funeral homes and cemeteries, thereby strengthening its market position [1][2] - Dodge's established customer relationships and reputation for quality in embalming solutions are expected to complement Matthews' existing offerings and enhance customer service continuity [2] Operational Continuity - Post-acquisition, Dodge customers will experience no changes in their purchasing processes, maintaining their relationships with existing sales and customer service representatives [2][3] - Tim Collison, the CEO of Dodge, will continue to lead the company as part of Matthews, ensuring stability and continuity in operations [2] Corporate Structure - Matthews International operates through two main segments: Industrial Technologies and Memorialization, focusing on operational efficiency and long-term growth through innovation and strategic expansion [4] - The Memorialization segment is a leading provider of memorialization products, including caskets and cremation equipment, primarily serving cemetery and funeral home customers [4]