Republished by Mark Maupin
CHAPEL HILL, N.C., Aug. 7, 2007 (PRIME NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the second quarter ended June 30, 2007, the Company reported net income of $1,154,149, a decrease of 73.3% compared with $4,315,537 for the same three-month period in 2006. Net income per diluted share equaled $0.46, a decrease of 72.6% compared with $1.68 per diluted share in the same period last year. Net premiums written decreased 2.6% to $18,626,179, investment income increased 22.9% to $1,271,755 and revenues decreased 4.4% to $22,107,533 compared with the prior year period.
For the six-month period ended June 30, 2007, the Company reported net income of $3,476,363, a decrease of 51.7%, compared with $7,190,478 for the same six-month period in 2006. Diluted earnings per share were $1.38, a decrease of 50.5% compared with $2.79 for the same six-month ended period in 2006. Net premiums written decreased 0.9% to $35,418,721, investment income increased 22.3% to $2,481,362 and revenues decreased 2.0% to $42,441,302 compared with the prior year.
Chairman Fine added, "Net income was significantly impacted by an increase in the provision for claims resulting from the occurrence of two large fraud claims. Revenues in the title segment held up relatively well given ongoing weakness in real estate transaction volume and mortgage originations. The exchange services segment experienced a decline in revenue related to a decrease in demand and interest income earned on exchange funds. Commissions to agents were higher due to an increase in agency premiums."
"We are pleased to see some relative strength in revenue in our title segment given the soft conditions in the housing market," Fine continued, "and will continue to direct our efforts toward managing operations during a softening period for real estate activity."
Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property and investment management services to individuals, companies, banks and trusts.
The Investors Title Company logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3951
Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include any predictions regarding activity in the U.S. real estate market. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. For more details on risk, uncertainties and other factors that could affect expectations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2006, as filed with the Securities and Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
June 30, 2007 and 2006
(Unaudited)
For The Three For The Six
Months Ended Months Ended
June 30 June 30
------------------------ ------------------------
2007 2006 2007 2006
---- ---- ---- ----
Revenues:
Underwriting
income:
Premiums Written $18,715,760 $19,222,175 $35,590,737 $35,968,444
Less-premiums
for reinsurance
ceded 89,581 98,584 172,016 213,227
----------- ----------- ----------- -----------
Net premiums
written 18,626,179 19,123,591 35,418,721 35,755,217
Investment
income-interest
and dividends 1,271,755 1,034,696 2,481,362 2,028,750
Net realized gain
(loss) on sales
of investments 200,023 (17,190) 366,203 544,457
Exchange services
revenue 870,083 1,908,357 2,115,562 2,936,089
Other 1,139,493 1,077,167 2,059,454 2,040,956
----------- ----------- ----------- -----------
Total Revenues 22,107,533 23,126,621 42,441,302 43,305,469
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 7,733,004 7,289,322 14,578,292 13,572,718
Provision for
claims 4,352,005 2,030,412 6,161,438 3,885,691
Salaries, employee
benefits and
payroll taxes 5,091,139 4,917,022 10,365,514 9,922,869
Office occupancy
and operations 1,452,901 1,266,042 2,889,024 2,731,355
Business
development 556,734 547,505 1,079,916 1,053,163
Filing fees and
taxes, other
than payroll
and income 126,455 142,850 291,668 293,708
Premium and
retaliatory taxes 395,262 328,542 837,182 670,610
Professional and
contract labor
fees 826,140 737,534 1,471,150 1,325,156
Other 278,744 222,885 500,755 441,751
----------- ----------- ----------- -----------
Total Operating
Expenses 20,812,384 17,482,114 38,174,939 33,897,021
----------- ----------- ----------- -----------
Income Before
Income Taxes 1,295,149 5,644,507 4,266,363 9,408,448
----------- ----------- ----------- -----------
Provision For
Income Taxes 141,000 1,328,970 790,000 2,217,970
----------- ----------- ----------- -----------
Net Income $ 1,154,149 $ 4,315,537 $ 3,476,363 $ 7,190,478
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 0.46 $ 1.70 $ 1.40 $ 2.83
=========== =========== =========== ===========
Weighted Average
Shares Outstanding
- Basic 2,484,874 2,537,883 2,491,955 2,543,475
=========== =========== =========== ===========
Diluted Earnings
Per Common Share $ 0.46 $ 1.68 $ 1.38 $ 2.79
=========== =========== =========== ===========
Weighted Average
Shares Outstanding
- Diluted 2,518,206 2,572,062 2,526,844 2,578,743
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2007 and December 31, 2006
(Unaudited)
June 30, December 31,
2007 2006
------------ ------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost $ 1,194,304 $ 1,195,617
Available-for-sale, at fair value 105,281,130 101,954,292
Equity securities, available-for-sale at
fair value 13,492,236 12,495,923
Short-term investments 1,733,603 4,460,911
Other investments 1,736,647 1,473,303
------------ ------------
Total investments 123,437,920 121,580,046
Cash and cash equivalents 3,169,702 3,458,432
Premiums and fees receivable, net 7,901,074 6,693,706
Accrued interest and dividends 1,303,050 1,336,790
Prepaid expenses and other assets 1,554,422 1,479,366
Property acquired in settlement of claims 312,038 303,538
Property, net 5,650,209 6,134,304
Deferred income taxes, net 3,388,953 2,530,196
------------ ------------
Total Assets $146,717,368 $143,516,378
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 40,560,000 $ 36,906,000
Accounts payable and accrued liabilities 9,062,960 10,537,992
Commissions and reinsurance payables 277,052 470,468
Current income taxes payable 185,879 326,255
------------ ------------
Total liabilities 50,085,891 48,240,715
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,483,415 and
2,507,325 shares issued and outstanding
2007 and 2006, respectively, excluding
291,676 shares for 2007 and 2006 of
common stock held by the Company's
subsidiary) 1 1
Retained earnings 93,960,059 92,134,608
Accumulated other comprehensive income 2,671,417 3,141,054
------------ ------------
Total stockholders' equity 96,631,477 95,275,663
------------ ------------
Total Liabilities and Stockholders' Equity $146,717,368 $143,516,378
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
June 30, 2007 and 2006
(Unaudited)
For the Three Months For the Six Months
Ended Ended
June 30 June 30
------------------------ ------------------------
State 2007 2006 2007 2006
------------------------------------------ -------------------------
Alabama $ 151,318 $ 330,545 $ 290,678 $ 574,181
Florida 461,498 327,956 1,290,045 606,291
Illinois 460,531 280,013 849,488 527,908
Kentucky 675,454 583,539 1,225,144 1,157,037
Maryland 310,321 407,905 597,192 781,674
Michigan 798,861 881,521 1,578,186 1,758,830
Minnesota 150,535 304,900 269,217 642,069
Mississippi 271,235 167,225 535,077 301,677
Nebraska 203,768 197,136 377,092 331,446
New York 658,675 709,195 1,165,434 1,212,791
North Carolina 9,218,284 9,773,452 17,131,757 18,214,934
Pennsylvania 406,236 410,595 732,890 726,507
South Carolina 1,857,204 1,536,781 3,573,604 2,938,854
Tennessee 732,461 614,769 1,381,851 1,281,092
Virginia 1,572,652 1,897,939 3,133,156 3,572,042
West Virginia 545,827 640,423 1,013,752 1,095,841
Other 236,163 158,281 434,507 238,844
----------- ----------- ----------- -----------
Direct Premiums 18,711,023 19,222,175 35,579,070 35,962,018
Reinsurance Assumed 4,737 -- 11,667 6,426
Reinsurance Ceded (89,581) (98,584) (172,016) (213,227)
----------- ----------- ----------- -----------
Net Premiums
Written $18,626,179 $19,123,591 $35,418,721 $35,755,217
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2007 and 2006
(Unaudited)
For The Three Months Ended For The Six Months Ended
June 30 June 30
------------------------------- --------------------------------
2007 % 2006 % 2007 % 2006 %
------------------------------- --------------------------------
Branch $ 7,907,600 42 $ 9,004,581 47 $15,040,911 42 $16,730,965 47
Agency 10,718,579 58 10,119,010 53 20,377,810 58 19,024,252 53
------------------------------- --------------------------------
Total $18,626,179 100 $19,123,591 100 $35,418,721 100 $35,755,217 100
=============================== ================================
CONTACT: Investors Title Company
Elizabeth B. Lewter
(919) 968-2200
posted by Ralph Marcus (Mark) Maupin | 11:48 AM
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