My Fellow Shareholders:

     I am pleased to report to you on the  affairs of the  Company  for the year
ended December 31, 2004 and invite you to attend the annual stockholders meeting
to be held on July 8, 2005 at the Company's home office in Salt Lake City, Utah.

     2004  was a year  marked  by  transition  for our  Company.  Some  selected
statistics  are  instructive:   In  2004  Cemetery  and  Mortuary  profitability
increased 152% to $1,286,000 on a 6.55% revenue  increase to  $11,661,000;  Life
insurance  profitability  decreased 4% to  $1,933,000  on a revenue  increase of
11.5% to $25,979,000; Mortgage operations resulted in a loss of $562,000, versus
a profit of $6,943,000 in 2003, on a 32% revenue  decrease to $62,689,000.  Cash
flow was sufficient  that we reduced our outside  indebtedness by 32% paying off
some $4,600,000 in debt.

     The  results  in  our  memorial   operations   reflect  the   profitability
initiatives  of the past several  years.  That segment still faces  considerable
challenges  in the  market  transition  from  in  ground  burial  to  cremation.
Cremation  is neither more nor less  profitable  than  traditional  dispositions
depending upon the level of services requested.  Our continuing  challenge is to
train our staff to be attuned to the service needs of the cremation customer.

     Our life  insurance  segment  has done very  well  marketing  its  products
recording significant gains in year over year first year premium sales. This has
occurred  in  both  our  funeral  planning  and  higher  education   markets.  A
considerable  factor in profitability  has been the persistent low interest rate
environment.   The  current  low  interest  rates  are  approaching  our  policy
contractual  minimums,   which  has  reduced  our  interest  rate  spreads  thus
negatively impacting  profitability.  We have undertaken a number of initiatives
to increase our earned interest rates including  opening a construction  lending
operation,  increasing  our commercial  real estate  lending  activities and our
"Fast Funding" insurance policy factoring program. Still, the low interest rates
remain problematical.

     The  interest  rate  environment  also  continues  to impact  our  mortgage
operations.  As interest  rates have  leveled  off we have seen our  origination
volumes  decrease  by 40%.  This  has  been in line  with  industry  experience.
Correspondingly, we have seen a decrease in the margins we are able to attain in
our secondary operations as we sell our completed loans. Our current strategy is
to  maintain  our  existing  18  branches  and bring  each to  profitability  by
increasing their  respective  sales forces.  This strategy to date has met mixed
results,  however, we believe that over the longer term this strategy will yield
positive results.

     Thank you for your continued confidence in our Company.