Exhibit 99.1
NEWS from:
STEWART INFORMATION SERVICES CORPORATION
P.O. Box 2029, Houston, Texas
77252-2029 www.stewart.com
Contact: Ted C. Jones
Director - Investor Relations
713.625.8014
FOR RELEASE 6AM CDT APRIL 25
STEWART SHATTERS FIRST QUARTER REVENUES, EARNINGS AND EARNINGS PER SHARE RECORDS
AND SETS ALL-TIME HIGH ORDER COUNT
HOUSTON, April 25, 2003 -- Stewart Information Services Corporation (NYSE: STC)
reported all-time record highs for revenues, earnings and earnings per share for
any first quarter in the 110-year history of the company. Earnings for the three
months ended March 31, 2003 were $19.9 million compared with $11.3 million for
the first quarter of 2002. On a diluted per share basis, net earnings were $1.11
for the first quarter of 2003 compared with $.63 for the first quarter of 2002.
Revenues in the first quarter increased 27 percent to $441 million from $348
million in the same period last year.
Title orders in the first quarter of 2003 were 263,000, an all-time high for any
quarter in the company's history. Orders for the month and quarter ended March
31, 2003 were 69 percent and 52 percent higher, respectively, than the same
periods a year ago, indicating a strong carry-over of business into the second
quarter of 2003.
"We have increased our revenues, earnings and earnings per share, in comparing
results to the same quarter a year earlier, for the seventh consecutive
quarter," said Stewart Morris, Jr., president and co-chief executive officer.
"While our core commercial and residential sales segments performed extremely
well in the quarter, explosive refinance activity created the largest total
order count in any quarter in Stewart's 110-year history. Loan applications for
one to four family residences, as reported by the Mortgage Bankers Association,
were up more than 130 percent in the first quarter when compared to the same
period last year. Through the use of proprietary technology we have been able to
service unprecedented demand while controlling our underlying cost structures to
keep a sharp focus on profit margins and productivity.
"SureClose(R), Stewart's e-delivery and e-commerce transaction management
platform, is now installed and running in more than 165 offices and agencies
across the country. SureClose provides the Realtor(R), lender, buyer and seller
with detailed information as to the progress of the transaction. The dramatic
improvement in customer service results with informed participants and improved
closing experience as the documents are made available via the Internet in
advance of closing," said Morris. "In addition, SureClose provides a vehicle for
the paperless title office, deleting the need for physical files."
"The tally of 2002 title industry data shows Stewart posting the largest growth
in the title industry in national market share," said Malcolm S. Morris,
chairman and co-chief executive officer. "Our growth strategy includes opening
new offices, ongoing acquisition of title agencies, adding
new agencies, increasing commercial market share and expanding internationally.
Australia is our latest addition to the stable of international operations in
which title insurance reduces risks and dramatically compresses the time
required to close real estate transactions.
"While title insurance represents our largest single line of business, we
continue to expand our higher-margin ancillary services, many of which are
included in the bundle of services for the lending industry," added Malcolm
Morris. "Technology is increasing our productivity across all business lines.
More than 86 percent of our flood determinations are immediately delivered
electronically from the more than 130 million property geocoded flood database.
While others continue to talk about the future possibilities of electronic
documents, Stewart's Online Documents subsidiary delivers complete eMortgageDocs
today using the MISMO standards and Fannie Mae's XHTML document technology
requirements, moving one step closer to the paperless real estate transaction.
"GlobeXplorer, Stewart's Internet-based satellite and aerial photograph
subsidiary, acquired Citipix aerial imagery from Eastman Kodak Company this past
quarter," added Malcolm Morris. "These new high resolution images include 65
metropolitan areas. GlobeXplorer satellite images encompass nearly 300 terabytes
of data, which is three times the data in the Library of Congress. The vast
array of GlobeXplorer's images can be seen at http://www.globexplorer.com."
Stewart Information Services Corporation is a technology driven, strategically
competitive, global real estate information company. Stewart provides title
insurance and related information services through more than 6,600 issuing
locations in the United States and several international markets. Stewart meets
the needs of the real estate and mortgage industries through the delivery of
information services required for settlement using e-commerce. These services
include title reports, flood determinations, document preparation, property
reports, background checks and online property auctions. Stewart also supplies
post-closing services to lenders, automated county clerk land records, property
and land ownership mapping and GIS for governmental entities. Stewart also
provides expertise in tax-deferred exchanges. More information about Stewart can
be found at http://www.stewart.com/.
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Stewart Information Services Corporation
Three months ended
March 31
--------
2003 2002
---- ----
Revenues....................... $ 440,924,000 $ 347,974,000
Net earnings................... $ 19,875,000 $ 11,344,000
Average shares - diluted....... 17,831,000 17,957,000
Earnings per share:
Basic....................... $ 1.12 $ 0.64
Diluted..................... $ 1.11 $ 0.63
STEWART INFORMATION SERVICES CORPORATION
STATEMENTS OF EARNINGS
(In thousands of dollars, except per share)
Three months ended
March 31
2003 2002
---- ----
Revenues
Title insurance:
Direct operations................................ 193,293 146,405
Agency operations................................ 224,002 180,272
Real estate information services................... 19,050 16,042
Investment income.................................. 4,783 4,903
Investment (losses) gains - net.................... (204) 352
------- -------
440,924 347,974
Expenses
Amounts retained by agencies....................... 184,749 148,289
Employee costs..................................... 132,002 104,565
Other operating expenses........................ 66,848 55,204
Title losses and related claims.................... 17,956 14,366
Depreciation....................................... 5,909 5,385
Interest........................................... 215 255
Minority interests................................. 2,338 1,530
------- -------
410,017 329,594
Earnings before taxes.............................. 30,907 18,380
Income taxes....................................... 11,032 7,036
------- -------
Net earnings....................................... 19,875 11,344
======= =======
Average number of diluted shares (000)............. 17,831 17,957
Earnings per share - diluted....................... 1.11 .63
======= =======
Segment information:
Title revenues.................................... 421,874 331,932
Title pretax earnings............................. 27,896 17,716
REI revenues...................................... 19,050 16,042
REI pretax earnings............................... 3,011 664
Selected financial information (000):
Cash flow from operations......................... 22,538 17,115
Title loss payments - net of recoveries........... 11,590 10,304
Other comprehensive earnings (loss) - net of taxes 872 (2,330)
Average number of basic shares.................... 17,742 17,810
Number of title orders opened..................... 263 171
STEWART INFORMATION SERVICES CORPORATION
BALANCE SHEETS (condensed)
(In thousands of dollars)
March 31 December 31
2003 2002
------- -----
Assets
Cash and cash equivalents........................... 122,813 139,156
Short-term investments.............................. 52,117 50,673
Investments - statutory reserve funds............... 327,042 306,501
Investments - other................................. 74,429 69,260
Receivables......................................... 61,360 69,041
Property and equipment.............................. 63,851 60,592
Title plants........................................ 41,332 40,307
Goodwill............................................ 72,779 66,885
Other assets........................................ 40,568 39,858
------- -------
856,291 842,273
======= =======
Liabilities
Notes payable....................................... 18,373 14,195
Accounts payable and accrued liabilities............ 62,510 82,248
Estimated title losses.............................. 237,624 230,058
Deferred income taxes............................... 11,326 11,284
Minority interests.................................. 11,331 10,896
Contingent liabilities and commitments
Stockholders' equity
Common and Class B Common Stock and
additional paid-in capital........................ 135,715 134,927
Retained earnings................................... 373,101 353,226
Accumulated other comprehensive earnings............ 10,216 9,344
Treasury stock...................................... (3,905) (3,905)
------- -------
Total stockholders' equity 515,127 493,592
------- -------
856,291 842,273
======= =======
April 25, 2003