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Capital Stock
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Capital Stock

12) Capital Stock

 

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

 

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one to one ratio. The decrease in treasury stock was the result of treasury stock being used to fund the company’s 401(k) and deferred compensation plans.

 

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the year 2021, as authorized by the Company’s Board of Directors.

 

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

 

The following table summarizes the activity in shares of capital stock.

 

   Class A   Class C 
Outstanding shares at December 31, 2019   16,107,779    2,500,887 
           
Exercise of stock options   68,970    130,820 
Stock dividends   405,210    61,720 
Conversion of Class C to Class A   13,824    (13,824)
           
Outstanding shares at December 31, 2020   16,595,783    2,679,603 
           
Exercise of stock options   160,282    104,656 
Stock dividends   837,410    131,553 
Conversion of Class C to Class A   49,247    (49,247)
           
Outstanding shares at December 31, 2021   17,642,722    2,866,565 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020

 

12) Capital Stock (Continued)

 

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

 

   2021   2020 
   Years Ended December 31 
   2021   2020 
Numerator:        
Net earnings  $39,518,990   $55,596,613 
           
Denominator:          
Denominator for basic earnings per share-weighted-average shares   20,154,878    19,788,984 
           
Effect of dilutive securities          
Employee stock options   774,206    465,423 
Dilutive potential common shares   774,206    465,423 
           
Denominator for diluted earnings per share-adjusted weighted-average          
shares and assumed conversions   20,929,084    20,254,407 
           
Basic earnings per share  $1.96   $2.81 
Diluted earnings per share  $1.89   $2.74 

 

For the years ended December 31, 2021 and 2020, there were 50,000 and -0- of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020