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Capital Stock
 12 Months Ended
Dec. 31, 2023
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.

 

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 years 2021 through 2023, 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, 2021   17,642,722    2,866,565 
           
Exercise of stock options   109,587    - 
Stock dividends   889,554    139,462 
Conversion of Class C to Class A   116,168    (116,168)
           
Outstanding shares at December 31, 2022   18,758,031    2,889,859 
           
Exercise of stock options   279,177    - 
Vesting of restricted stock units   1,215    - 
Stock dividends   949,980    141,594 
Conversion of Class C to Class A   59,599    (59,599)
           
Outstanding shares at December 31, 2023   20,048,002    2,971,854 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

 

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:

  

   2023   2022 
   Years Ended December 31, 
   2023   2022 
Numerator:          
Net earnings  $14,495,058   $25,690,302 
           
Denominator:          
Denominator for basic earnings per share-weighted-average shares   22,083,772    22,187,410 
           
Effect of dilutive securities          
Employee stock options   594,196    848,323 
Unvested restricted stock units   -    395 
Dilutive potential common shares   594,196    848,718 
           
Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions   22,677,968    23,036,128 
           
Basic earnings per share  $0.66   $1.16 
Diluted earnings per share  $0.64   $1.12 

 

For 2023 and 2022, there were nil and 339,150 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. Basic and diluted earnings per share amounts are the same for each class of common stock.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022