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Capital Stock
 12 Months Ended
Dec. 31, 2024
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 2024, 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, 2022 (1)   20,712,892    3,180,031 
           
Exercise of stock options   279,177    - 
Vesting of restricted stock units   1,215    - 
Conversion of Class C to Class A   59,599    (59,599)
           
Outstanding shares at December 31, 2023 (1)   21,052,883    3,120,432 
           
Exercise of stock options   200,072    201,667 
Vesting of restricted stock units   1,785    - 
Conversion of Class C to Class A   266    (266)
           
Outstanding shares at December 31, 2024   21,255,006    3,321,833 

 

 

(1)Adjusted retroactively for the effect of annual stock dividends

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023

 

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:

 

   2024   2023 
   Years Ended December 31, 
   2024   2023 
Numerator:        
Net earnings  $26,535,768   $14,495,058 
           
Denominator:          
Denominator for basic earnings per share-weighted-average shares   23,314,643    23,189,418 
           
Effect of dilutive securities          
Employee stock options   660,835    623,906 
Unvested restricted stock units   30    - 
Dilutive potential common shares   660,865    623,906 
           
Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions   23,975,508    23,813,324 
           
Basic earnings per share  $1.14   $0.63 
Diluted earnings per share  $1.11   $0.61 

 

For 2024 and 2023, there were 363,700 and nil 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, 2024 and 2023