535 West 500 South, Ste. 1 Mortgage Sales Leased (15) 1,500 Bountiful, Utah
(1) The Company leases an additional 5,576 square feet of the facility to unrelated third parties for approximately $96,500 per year, under leases expiring at various dates after 2003.
(1) As of December 31, 2003 there were mortgages of approximately $61,000 collateralized by the property and facilities of Camelback Sunset Funeral Home. (2) As of December 31, 2003, there were mortgages of approximately $1,600,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park, Lakehills Cemetery and Colonial Mortuary. (3) As of December 31, 2003, there was a mortgage of approximately $195,000, collateralized by the property and facilities of Crystal Rose Funeral Home.
On December 17, 1998, the Company purchased all of the outstanding shares of common stock of SSLIC Holding Company ("SSLIC Holding") (formerly "Consolidare Enterprises, Inc.") and Insuradyne Corporation ("Insuradyne") for a total cost of $12,248,194. As of December 31, 2003, SSLIC Holding held approximately 77% of the outstanding shares of common stock of Southern Security Life Insurance Company ("Southern Security").
Mortgage fee income increased by $16,922,000, from $40,086,000 in 2001 to $57,008,000 in 2002. This increase was primarily attributable to a greater number of loan originations during 2002 due to lower interest rates.
I. Summary of Investments -- Other than Investments in Related Parties..................................81
2003 2002 2001 ---- ---- ---- Fixed maturity securities $3,407,177 $3,228,042 $3,776,132 Equity securities 54,481 53,889 49,281 Mortgage loans on real estate 1,931,358 1,350,882 1,570,478 Real estate 1,509,932 1,501,534 1,548,507 Policy loans 676,201 663,554 630,352 Short-term investments 105,094 189,894 379,562 Other 10,813,469 6,501,763 5,973,092 ------------ ------------ ------------ Gross investment income 18,497,712 13,489,558 13,927,404 Investment expenses (1,195,115) (950,128) (980,905) ------------ ------------ ------------ Net investment income $17,302,597 $12,539,430 $12,946,499 ============ ============ ============
6% note payable in monthly installments of $5,693 including principal and interest, collateralized by real property, which book value is approximately $950,000 due September 2010. 662,944 --
In addition to the lines of credit described above, the Company has line of credit agreements with banks for $2,500,000 and $5,000,000, of which none were outstanding at December 31, 2003 or 2002. The lines of credit are for general operating purposes. The $2,500,000 line of credit bears interest at the bank's prime rate and must be repaid every 30 days. The $5,000,000 line of credit bears interest at a variable rate with interest payable monthly and is collateralized by student loans equaling 115% of the unpaid principal balance.
Other notes payable 382,541 449,128 ---------- ---------- Total notes and contracts payable 3,440,694 3,160,009 Less current installments 732,715 447,569 ---------- ----------
The Company owns and operates several endowment care cemeteries, for which it has established and maintains an endowment care fund. The Company records a liability to the fund for each space sold at current statutory rates. As of December 31, 2002 the Company owed the fund $73,151 in excess of the required contribution to the fund, and as of December 31, 2003, the Company owed the fund $41,335.
Basic earnings per share $1.23 $.83 $.63 ===== ==== ==== Diluted earnings per share $1.20 $.80 $.63 ===== ==== ====
Outstanding at December 31, 2002 504,669 $2.02 - $4.46 Dividend 30,609 Granted 371,000 Exercised (263,496) -------------
On March 16, 2004, with the approval of the Louisiana Insurance Department, Security National Life Insurance Company purchased all of the outstanding common stock of Paramount Security Life Insurance Company, a Louisiana domiciled company (Paramount) located in Shreveport, Louisiana. As of December 31, 2003, Paramount had 9,383 policies in force and approximately, 29 agents. The purchase consideration was $4,397,994 and was effective January 26, 2004. For the year ended December 31, 2003, Paramount had revenues of $614,000 and net income of $76,000. As of December 31, 2003, statutory assets and capital and surplus were $6,073,000 and $4,100,000, respectively.
Stockholders' equity: Common Stock: Class A: $2 par value, authorized 10,000,000 shares, issued 6,275,104 shares in 2003 and 5,794,492 shares in 2002 12,550,208 11,588,984 Class C: $0.20 par value, authorized 7,500,000 shares, issued 6,469,638 shares in 2003 and 6,182,669 shares in 2002 1,293,927 1,236,533 ------------ ------------ Total common stock 13,844,135 12,825,517
Revenue: Net investment income $52 $34,053 $188 Fees from affiliates 4,200,683 3,772,293 3,824,259 ----------- ----------- ----------- Total revenue 4,200,735 3,806,346 3,824,447 ----------- ----------- -----------