Investors Title Company today announced its results for the
fourth quarter and year ended December 31, 2015.
For the year, net income attributable to the Company increased
29.9% to $12.5 million, or $6.30 per diluted share, versus $9.6
million, or $4.74 per diluted share, for the prior year. For the
quarter, net income attributable to the Company decreased 18.5% to
$2.2 million, or $1.12 per diluted share, versus $2.7 million, or
$1.33 per diluted share, for the prior year period.
Revenues for the year reached $127.2 million, a new record for
the Company, which represents an increase of 3.3% versus the prior
year. Growth in premium revenues was driven primarily by growth in
real estate values, higher levels of home sales, and to a lesser
extent, higher levels of refinance activity. Revenues from direct
operations comprised 25.3% of premiums for the year, up from 21.9%
last year.
Operating expenses were $109.4 million, and remained virtually
flat with the prior year. Commissions decreased 5.3% due to a
favorable mix of direct business. Claims expense, which continues
to benefit from the absence of large claims related to defalcations
in recent policy years, decreased 14.4% versus the prior year due
to fewer new claim filings. Payroll expenses increased 11.2%, due
to normal inflationary increases in wages and benefits, higher
staffing levels supporting ongoing software development activities,
and higher levels of incentive compensation. All other expenses
increased 8.7%, mainly due to higher transaction volumes and
increased software development activity.
For the quarter, revenues decreased 9.6% versus the prior year
period, which can be attributed to lower levels of premiums written
in the Texas market, partially offset by growth in other markets.
Overall, transaction volume increased substantially versus the
prior year period, with increases in both purchase and refinance
activity. Operating expenses decreased 8.5%, primarily due to the
impact of lower Texas volumes on commissions, as well as overall
favorable claims experience. The lower commissions and claims
expenses were partially offset by increases in other expense
categories, mainly due to the same factors that influenced results
for the year.
Chairman J. Allen Fine commented, “I am pleased with the
Company’s strong results for both the year and the fourth quarter.
The record level of revenues we achieved in 2015 is the result of a
strong real estate market as well as our continued efforts to
develop relationships in the markets we serve.”
“Revenues in the fourth quarter held up well, considering
potential impacts of the new federally mandated disclosure
requirements that went into effect during the quarter, as well as
the Fed’s first rate hike in almost a decade. In addition, we
successfully reached key milestone objectives in our technology
program, while investing significant energy into preparing
ourselves and our clients for implementation of the new mortgage
disclosures.”
“We are optimistic that the strong housing market will continue
into 2016, with potential improvements in both transaction levels
and home prices,” added Mr. Fine. “For the coming year and beyond,
we will remain focused on long-term strategies to enhance our
competitive strengths and financial position, and to profitably
expand our market presence.”
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.
----------------------------------------------------------------------------------------------------------------------------------
Certain statements contained herein may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
among others, any statements regarding future home price increases,
changes in home purchase or refinance activity, interest rate
changes, expansion of the Company’s market presence, enhancing
competitive strengths, positive development in housing
affordability, 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 regulation; changes in the economy; the
possible loss of agency relationships, or significant reductions in
agent-originated business 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, 2014, as filed with the
Securities and Exchange Commission, and in subsequent filings.
Investors Title Company and
Subsidiaries
Consolidated Statements of
Income
For the Three and Twelve Months Ended
December 31, 2015 and 2014
(Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2015 2014
2015 2014
Revenues: Net premiums written
$
26,103,532 $ 28,847,616
$ 112,475,686 $
109,963,556 Investment income
– interest and dividends
1,104,264 1,128,655
4,531,319 4,259,501 Net realized
(loss) gain on investments
(717,499 ) (324,614 )
(116,163 ) 268,294 Other
2,384,901
2,283,772
10,309,230
8,627,935 Total Revenues
28,875,198
31,935,429
127,200,072
123,119,286
Operating Expenses: Commissions to
agents
13,780,748 17,389,430
62,174,301 65,632,353
Provision for claims
857,093 1,052,238
4,478,494
5,229,716 Salaries, employee benefits and payroll taxes
6,939,258 5,968,109
28,041,213 25,218,225 Office
occupancy and operations
1,795,530 1,365,982
5,885,336 5,049,962 Business development
739,912
751,619
2,373,270 2,333,491 Filing fees, franchise and local
taxes
160,364 169,887
732,985 817,909 Premium and
retaliatory taxes
476,897 519,275
2,161,571 1,851,767
Professional and contract labor fees
764,942 700,211
2,691,411 2,676,483 Other
175,520
164,229
884,438 820,882
Total Operating Expenses
25,690,264 28,080,980
109,423,019 109,630,788
Income before Income Taxes 3,184,934 3,854,449
17,777,053 13,488,498
Provision for Income
Taxes 978,000 1,160,000
5,228,000 3,816,000
Net
Income 2,206,934 2,694,449
12,549,053 9,672,498
Net Income Attributable to Noncontrolling Interests
(10,612 ) —
(15,148
) (23,523 )
Net Income Attributable to the
Company $ 2,196,322 $ 2,694,449
$ 12,533,905 $ 9,648,975
Basic Earnings per Common Share $
1.13 $ 1.33
$ 6.32
$ 4.75
Weighted Average Shares
Outstanding – Basic 1,952,077 2,026,125
1,984,360 2,031,760
Diluted Earnings per Common Share $
1.12 $ 1.33
$ 6.30
$ 4.74
Weighted Average Shares
Outstanding – Diluted 1,958,484 2,031,660
1,989,799 2,037,534
Investors Title Company and
Subsidiaries
Consolidated Balance Sheets
As of December 31, 2015 and
2014
(Unaudited)
December 31, 2015 December 31,2014
Assets: Investments in securities: Fixed maturities,
available-for-sale, at fair value
$ 106,066,384 $
109,048,290 Equity securities, available-for-sale, at fair value
37,513,464 39,254,981 Short-term investments
6,865,406 2,576,993 Other investments
10,106,828
8,530,929 Total investments
160,552,082
159,411,193 Cash and cash equivalents
21,790,068 15,826,515 Premium and fees receivable
8,392,697 8,544,183 Accrued interest and dividends
1,004,126 1,063,837 Prepaid expenses and other assets
12,634,105 7,732,677 Property, net
7,148,951
5,460,805
Total Assets $ 211,522,029
$ 198,039,210
Liabilities and Stockholders’
Equity Liabilities: Reserves for claims
$
37,788,000 $ 36,677,000 Accounts payable and accrued
liabilities
25,043,588 18,290,819 Current income taxes
payable
210,355 92,192 Deferred income taxes, net
5,703,006 5,415,493 Total liabilities
68,744,949 60,475,504
Stockholders’
Equity:
Common stock - no par value (10,000,000
authorized shares; 1,949,797 and 2,023,270shares issued and
outstanding 2015 and 2014, respectively, excluding 291,676
sharesfor 2015 and 2014 of common stock held by the Company's
subsidiary)
1 1 Retained earnings
131,186,866 124,707,196
Accumulated other comprehensive income
11,483,015
12,856,509 Total stockholders’ equity attributable to the
Company
142,669,882 137,563,706 Noncontrolling interests
107,198 — Total stockholders’ equity
142,777,080 137,563,706
Total Liabilities
and Stockholders’ Equity $ 211,522,029
$ 198,039,210
Investors Title Company and
Subsidiaries
Net Premiums Written By Branch and
Agency
For the Three and Twelve Months Ended
December 31, 2015 and 2014
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31, 2015 %
2014 %
2015 % 2014
%
Branch $ 7,119,168 27.3
$ 6,134,866 21.3
$ 28,400,531
25.3 $ 24,057,032 21.9
Agency
18,984,364 72.7 22,712,750
78.7
84,075,155 74.7
85,906,524 78.1
Total $
26,103,532 100.0 $ 28,847,616
100.0
$ 112,475,686
100.0 $ 109,963,556 100.0
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160210005207/en/
Investors Title CompanyElizabeth B. Lewter, 919-968-2200
Investors Title (NASDAQ:ITIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Investors Title (NASDAQ:ITIC)
Historical Stock Chart
From Jul 2023 to Jul 2024