Investors Title Company Announces Third Quarter 2007 Results
CHAPEL HILL, N.C., Nov. 5, 2007 (PRIME NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the third quarter ended September 30, 2007, the Company reported net income of $3,857,892, an increase of 5.1% compared with $3,672,069 for the same three-month period in 2006. Net income per diluted share equaled $1.54, an increase of 6.9% compared with $1.44 per diluted share in the same period last year. Net premiums written increased 4.1% to $18,994,453, investment income increased 25.6% to $1,301,878 and revenues increased 6.2% to $23,058,983 compared with the prior year period.
For the nine-month period ended September 30, 2007, the Company reported net income of $7,334,255, a decrease of 32.5%, compared with $10,862,547 for the same nine-month period in 2006. Diluted earnings per share were $2.91, a decrease of 31.2% compared with $4.23 for the same nine-month ended period in 2006. Net premiums written increased 0.8% to $54,413,174, investment income increased 23.4% to $3,783,240 and revenues increased 0.7% to $65,500,285 compared with the prior year.
For the quarter, an increase in premiums through agents along with a higher level of investment income positively impacted our operating results. Also favorably impacting net income was a lower effective tax rate resulting from a higher mix of tax-exempt income relative to taxable income. Offsetting these items were lower revenues from our tax-deferred exchange subsidiary and an increase in the claims provision.
President Fine added, "We are pleased with the Company's performance this quarter in an increasingly challenging operating environment. Title premiums trended lower over the course of the quarter along with declining real estate activity. While continuing to search for opportunity to profitably expand, we are maintaining our focus on cost control and improving efficiency."
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
September 30, 2007 and 2006
(Unaudited)
For The Three For The Nine
Months Ended Months Ended
September 30 September 30
------------------------- -------------------------
2007 2006 2007 2006
---- ---- ---- ----
Revenues:
Underwriting income:
Premiums
Written $ 19,035,187 $ 18,347,342 $ 54,625,924 $ 54,315,786
Less-premiums
for
reinsurance
ceded 40,734 104,666 212,750 317,893
---------- ---------- ---------- ----------
Net premiums
written 18,994,453 18,242,676 54,413,174 53,997,893
Investment
income-interest
and dividends 1,301,878 1,036,155 3,783,240 3,064,905
Net realized
gain (loss)
on sales of
investments 521,008 (55,930) 887,211 488,527
Exchange
services
revenue 1,042,311 1,604,992 3,157,873 4,541,081
Other 1,199,333 894,441 3,258,787 2,935,397
---------- ---------- ---------- ----------
Total Revenues 23,058,983 21,722,334 65,500,285 65,027,803
---------- ---------- ---------- ----------
Operating Expenses:
Commissions to
agents 7,460,574 6,796,146 22,038,866 20,368,864
Provision for
claims 2,363,841 1,992,901 8,525,279 5,878,592
Salaries,
employee
benefits and
payroll taxes 5,136,337 4,918,008 15,501,851 14,865,309
Office
occupancy and
operations 1,284,093 1,234,013 4,173,117 3,917,797
Business
development 478,397 552,401 1,558,313 1,581,132
Filing fees
and taxes,
other than
payroll and
income 177,917 196,639 469,585 490,346
Premium and
retaliatory
taxes 341,750 396,851 1,178,932 1,067,461
Professional
and contract
labor fees 606,308 555,189 2,077,458 1,904,933
Other 266,874 105,087 767,629 569,822
---------- ---------- ---------- ----------
Total
Operating
Expenses 18,116,091 16,747,235 56,291,030 50,644,256
---------- ---------- ---------- ----------
Income Before
Income Taxes 4,942,892 4,975,099 9,209,255 14,383,547
---------- ---------- ---------- ----------
Provision For
Income Taxes 1,085,000 1,303,030 1,875,000 3,521,000
---------- ---------- ---------- ----------
Net Income $ 3,857,892 $ 3,672,069 $ 7,334,255 $ 10,862,547
========== ========== ========== ==========
Basic Earnings
Per Common
Share $ 1.56 $ 1.46 $ 2.95 $ 4.29
========== ========== ========== ==========
Weighted
Average
Shares
Outstanding -
Basic 2,480,951 2,517,691 2,488,287 2,534,883
========== ========== ========== ==========
Diluted
Earnings Per
Common Share $ 1.54 $ 1.44 $ 2.91 $ 4.23
========== ========== ========== ==========
Weighted
Average
Shares
Outstanding -
Diluted 2,506,949 2,550,607 2,520,383 2,569,585
========== ========== ========== ==========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2007 and December 31, 2006
(Unaudited)
September 30, 2007 December 31, 2006
------------------ -----------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at
amortized cost $ 1,052,204 $ 1,195,617
Available-for-sale, at
fair value 102,528,677 101,954,292
Equity securities,
available-for-sale at
fair value 13,888,652 12,495,923
Short-term investments 9,474,707 4,460,911
Other investments 1,654,542 1,473,303
------------------ -----------------
Total investments 128,598,782 121,580,046
Cash and cash equivalents 2,855,600 3,458,432
Premiums and fees
receivable, net 7,704,503 6,693,706
Accrued interest and
dividends 1,157,567 1,336,790
Prepaid expenses and
other assets 2,135,769 1,479,366
Property acquired in
settlement of claims 294,538 303,538
Property, net 5,490,451 6,134,304
Deferred income taxes,
net 1,875,142 2,530,196
------------------ -----------------
Total Assets $ 150,112,352 $ 143,516,378
================== =================
Liabilities and Stockholders'
Equity
Liabilities:
Reserves for claims $ 38,577,000 $ 36,906,000
Accounts payable and
accrued liabilities 10,207,584 10,537,992
Commissions and
reinsurance payables 273,187 470,468
Current income taxes
payable -- 326,255
------------------ -----------------
Total liabilities 49,057,771 48,240,715
------------------ -----------------
Stockholders' Equity:
Common stock - no par value
(shares authorized 10,000,000;
2,482,472 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 97,531,759 92,134,608
Accumulated other
comprehensive income 3,522,821 3,141,054
------------------ -----------------
Total stockholders'
equity 101,054,581 95,275,663
------------------ -----------------
Total Liabilities and
Stockholders' Equity $ 150,112,352 $ 143,516,378
================== =================
Investors Title Company and Subsidiaries
Net Premiums Written By State
September 30, 2007 and 2006
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30 September 30
-------------------------- -------------------------
State 2007 2006 2007 2006
--------------------------------------- --------------------------
Alabama $ 106,753 $ 185,318 $ 397,431 $ 759,499
Florida 116,530 359,531 1,406,575 965,822
Illinois 431,878 291,810 1,281,366 819,718
Kentucky 654,399 618,829 1,879,543 1,775,866
Maryland 340,011 344,598 937,203 1,126,272
Michigan 771,564 825,711 2,349,750 2,584,541
Minnesota 131,796 200,469 401,013 842,538
Mississippi 204,671 225,319 739,748 526,996
Nebraska 176,385 172,005 553,477 503,451
New York 641,631 602,667 1,807,065 1,815,458
North Carolina 9,733,783 9,185,274 26,865,540 27,400,208
Pennsylvania 409,063 373,498 1,141,953 1,100,005
South Carolina 2,177,495 2,045,816 5,751,099 4,984,670
Tennessee 652,157 686,497 2,034,008 1,967,589
Virginia 1,713,647 1,515,282 4,846,803 5,087,324
West Virginia 531,815 577,884 1,545,567 1,673,725
Other 241,609 135,101 676,116 373,945
---------- ---------- ---------- ----------
Direct
Premiums 19,035,187 18,345,609 54,614,257 54,307,627
Reinsurance
Assumed -- 1,733 11,667 8,159
Reinsurance
Ceded (40,734) (104,666) (212,750) (317,893)
---------- ---------- ---------- ----------
Net Premiums
Written $ 18,994,453 $ 18,242,676 $ 54,413,174 $ 53,997,893
========== ========== ========== ==========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
September 30, 2007 and 2006
(Unaudited)
For The Three Months Ended For The Nine Months Ended
September 30 September 30
-------------------------------------- -------------------------------
2007 % 2006 % 2007 % 2006 %
-------------------------------------- -------------------------------
Branch $ 8,310,859 44 $ 8,602,081 47 $23,351,770 43 $25,333,046 47
Agency $10,683,594 56 $ 9,640,595 53 $31,061,404 57 $28,664,847 53
------------------------------- -------------------------------
Total $18,994,453 100 $18,242,676 100 $54,413,174 100 $53,997,893 100
=============================== ===============================
CONTACT: Investors Title Company
Elizabeth B. Lewter
(919) 968-2200
