Investors Title Company (Nasdaq: ITIC) today announced results
for the second quarter ended June 30, 2024. The Company reported
net income of $8.9 million, or $4.70 per diluted share, compared
with $7.6 million, or $4.00 per diluted share, for the prior year
period.
Revenues increased 12.1% to $65.4 million, compared to $58.3
million in the prior year period, primarily due to an increase in
premiums written stemming from higher activity levels in certain
markets and continued increases in average home prices.
Operating expenses increased 11.7% compared to the prior year
period, mostly driven by higher agent commissions and other
expenses which fluctuate with the level of title-related revenues.
Personnel expenses decreased due to lower staffing levels. Other
categories of operating expenses were in line with the prior year
period.
Income before income taxes increased to $11.3 million for the
current year quarter, versus $9.8 million in the prior year period.
Excluding the impact of net investment gains, adjusted income
before income taxes (non-GAAP) increased to $10.0 million for the
current year quarter, versus $8.8 million in the prior year period
(see Appendix A for a reconciliation of this non-GAAP measure to
the most directly comparable GAAP measure).
For the six months ended June 30, 2024, net income increased
$4.6 million to $13.4 million, or $7.10 per diluted share, versus
$8.8 million, or $4.62 per diluted share, for the prior year
period. Revenues increased 8.4% to $118.8 million, compared with
$109.7 million for the prior year period. Operating expenses
increased 3.6% to $101.8 million, compared to $98.3 million for the
prior year period. Aside from changes in net investment gains,
overall results for the year-to-date period have been shaped
predominantly by the same factors that affected the second quarter.
Positive changes in the estimated fair value of equity security
investments resulted in higher net investment gains compared to the
prior year period.
Chairman J. Allen Fine commented, “We are pleased to report a
17.0% increase in net income for the second quarter as compared to
the prior year period, our most profitable quarter in over two
years, with profit margins comparable to pre-pandemic levels.
Premiums written increased due to higher activity levels and higher
average real estate sales prices. Our expense level continued to
improve as a result of ongoing expense management efforts. Expenses
in the quarter were also favorably impacted by relatively low
claims experience versus historical norms.
"Real estate sales activity in the market improved during the
quarter on a seasonal basis and relative to the prior year period.
By quarter end, mortgage rates had declined over a full percentage
point from their peak in the fourth quarter of 2023, and
inventories of homes available for sale had increased substantially
since the beginning of the year. If such trends persist, they may
bring about an overall improvement to conditions in the real estate
market."
Investors Title Company’s subsidiaries issue and underwrite
title insurance policies. The Company also provides investment
management services and services in connection with tax-deferred
exchanges of like-kind property.
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Cautionary Statements Regarding
Forward-Looking Statements
Certain statements contained herein constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements may be identified by the use
of words such as “plan,” expect,” “aim,” “believe,” “project,”
“anticipate,” “intend,” “estimate,” “should,” “could,” “would,” and
other expressions that indicate future events and trends. Such
statements include, among others, any statements regarding the
Company’s expected performance for this year, future home price
fluctuations, changes in home purchase or refinance demand,
activity and the mix thereof, interest rate changes, expansion of
the Company’s market presence, enhancing competitive strengths,
development in housing affordability, wages, unemployment or
overall economic conditions or statements regarding our actuarial
assumptions and the application of recent historical claims
experience to future periods. These statements involve a number of
risks and uncertainties that could cause actual results to differ
materially from anticipated and historical results. Such risks and
uncertainties include, without limitation: the cyclical demand for
title insurance due to changes in the residential and commercial
real estate markets; the occurrence of fraud, defalcation or
misconduct; variances between actual claims experience and
underwriting and reserving assumptions, including the limited
predictive power of historical claims experience; declines in the
performance of the Company’s investments; government regulations;
changes in the economy; the impact of inflation and responses by
government regulators, including the Federal Reserve, such as
changes in interest rates; loss of agency relationships, or
significant reductions in agent-originated business; difficulties
managing growth, whether organic or through acquisitions and other
considerations set forth under the caption “Risk Factors” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 as filed with the Securities and Exchange Commission, and
in subsequent filings.
# # # #
Investors Title Company and
Subsidiaries
Consolidated Statements of
Operations
For the Three and Six Months
Ended June 30, 2024 and 2023
(in thousands, except per
share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenues:
Net premiums written
$
51,416
$
44,005
$
91,596
$
82,971
Escrow and other title-related fees
4,801
4,604
8,524
8,259
Non-title services
4,304
4,565
8,608
9,877
Interest and dividends
2,568
2,150
5,088
4,224
Other investment income
890
1,648
1,001
2,401
Net investment gains
1,242
1,092
3,664
1,535
Other
161
250
360
390
Total Revenues
65,382
58,314
118,841
109,657
Operating Expenses:
Commissions to agents
26,550
20,603
46,420
39,929
Provision for claims
905
991
1,815
2,059
Personnel expenses
18,154
18,548
36,736
39,368
Office and technology expenses
4,308
4,513
8,773
8,913
Other expenses
4,198
3,813
8,033
7,981
Total Operating Expenses
54,115
48,468
101,777
98,250
Income before Income Taxes
11,267
9,846
17,064
11,407
Provision for Income Taxes
2,396
2,261
3,668
2,641
Net Income
$
8,871
$
7,585
$
13,396
$
8,766
Basic Earnings per Common Share
$
4.71
$
4.00
$
7.10
$
4.62
Weighted Average Shares Outstanding –
Basic
1,884
1,895
1,886
1,896
Diluted Earnings per Common
Share
$
4.70
$
4.00
$
7.10
$
4.62
Weighted Average Shares Outstanding –
Diluted
1,886
1,896
1,887
1,896
Investors Title Company and
Subsidiaries
Consolidated Balance
Sheets
As of June 30, 2024 and
December 31, 2023
(in thousands)
(unaudited)
June 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
26,686
$
24,031
Investments:
Fixed maturity securities,
available-for-sale, at fair value
93,479
63,847
Equity securities, at fair value
36,837
37,212
Short-term investments
84,480
110,224
Other investments
21,670
17,385
Total investments
236,466
228,668
Premiums and fees receivable
13,478
13,338
Accrued interest and dividends
1,321
978
Prepaid expenses and other receivables
10,829
13,525
Property, net
26,516
23,886
Goodwill and other intangible assets,
net
15,630
16,249
Lease assets
6,205
6,303
Other assets
2,643
2,500
Current income taxes recoverable
558
1,081
Total Assets
$
340,332
$
330,559
Liabilities and Stockholders’
Equity
Liabilities:
Reserve for claims
$
37,204
$
37,147
Accounts payable and accrued
liabilities
31,469
31,864
Lease liabilities
6,427
6,449
Deferred income taxes, net
3,416
3,546
Total liabilities
78,516
79,006
Stockholders’ Equity:
Common stock – no par value (10,000
authorized shares; 1,884 and 1,891 shares issued and outstanding as
of June 30, 2024 and December 31, 2023, respectively, excluding in
each period 292 shares of common stock held by the Company's
subsidiary)
—
—
Retained earnings
261,648
250,915
Accumulated other comprehensive income
168
638
Total stockholders’ equity
261,816
251,553
Total Liabilities and Stockholders’
Equity
$
340,332
$
330,559
Investors Title Company and
Subsidiaries
Direct and Agency Net Premiums
Written
For the Three and Six Months
Ended June 30, 2024 and 2023
(in thousands)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
%
2023
%
2024
%
2023
%
Direct
$
15,531
30.2
$
15,776
35.9
$
28,852
31.5
$
28,490
34.3
Agency
35,885
69.8
28,229
64.1
62,744
68.5
54,481
65.7
Total
$
51,416
100.0
$
44,005
100.0
$
91,596
100.0
$
82,971
100.0
Investors Title Company and Subsidiaries
Appendix A Non-GAAP Measures Reconciliation For
the Three and Six Months Ended June 30, 2024 and 2023 (in
thousands) (unaudited)
Management uses various financial and operational measurements,
including financial information not prepared in accordance with
generally accepted accounting principles ("GAAP"), to analyze
Company performance. This includes adjusting revenues to remove the
impact of net investment gains and losses, which are recognized in
net income under GAAP. Net investment gains and losses include
realized gains and losses on sales of investment securities and
changes in the estimated fair value of equity security investments.
Management believes that these measures are useful to evaluate the
Company's internal operational performance from period to period
because they eliminate the effects of external market fluctuations.
The Company also believes users of the financial results would
benefit from having access to such information, and that certain of
the Company’s peers make available similar information. This
information should not be used as a substitute for, or considered
superior to, measures of financial performance prepared in
accordance with GAAP, and may be different from similarly titled
non-GAAP financial measures used by other companies.
The following tables reconcile non-GAAP financial measurements
used by Company management to the comparable measurements using
GAAP:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenues
Total revenues (GAAP)
$
65,382
$
58,314
$
118,841
$
109,657
Subtract: Net investment gains
(1,242
)
(1,092
)
(3,664
)
(1,535
)
Adjusted revenues (non-GAAP)
$
64,140
$
57,222
$
115,177
$
108,122
Income before Income Taxes
Income before income taxes (GAAP)
$
11,267
$
9,846
$
17,064
$
11,407
Subtract: Net investment gains
(1,242
)
(1,092
)
(3,664
)
(1,535
)
Adjusted income before income taxes
(non-GAAP)
$
10,025
$
8,754
$
13,400
$
9,872
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version on businesswire.com: https://www.businesswire.com/news/home/20240805438678/en/
Elizabeth B. Lewter (919) 968-2200
Investors Title (NASDAQ:ITIC)
過去 株価チャート
から 8 2024 まで 9 2024
Investors Title (NASDAQ:ITIC)
過去 株価チャート
から 9 2023 まで 9 2024