Exhibit 99.1
Investors Title Reports Third Quarter Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--October 28, 2004--J. Allen Fine,
Chairman of Investors Title Company, (NASDAQ: ITIC) announced that for the
quarter ended September 30, 2004, the Company reported net income of $2,927,864,
a decrease of 1% compared with the same quarter in 2003. Diluted earnings per
share were $1.12 versus $1.13 in the prior year period. Net premiums written
decreased 22% to $18,334,559 from $23,469,590 and total revenues decreased 19%
to $20,503,324.
For the nine-month period ended September 30, 2004, the Company reported
net income of $8,029,863, a decrease of 7% compared with the same nine-month
period in 2003. Diluted earnings per share were $3.06 versus $3.30 in the prior
year period. Net premiums written decreased 17% to $54,965,967 and total
revenues decreased 15% to $60,601,380.
Chairman Fine added, "The decline in premiums written primarily relates to
the decrease in mortgage refinance transactions compared with the prior year.
This decline was partially offset by a fee increase in our largest market which
took effect in the fourth quarter of the preceding year. Sales in our exchange
segment continue to grow as activity in Section 1031 tax-free exchanges remains
strong driven by ongoing low interest rates. Operating results benefited from
higher exchange volume and the increase in title fee income."
Investors Title Company is engaged through its subsidiaries in the business
of issuing and underwriting title insurance policies. Title insurance is
typically sold when real estate is purchased and upon refinancing of loans
secured by real estate. Policies are issued through 29 branch offices and a
network of agents located across 24 states and the District of Columbia. The
Company also provides services in connection with Section 1031 tax-free
exchanges of like-kind property as well as investment management services to
individuals, trusts, foundations and businesses.
Certain statements contained herein may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. 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, 2003, as filed with the Securities and Exchange
Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
September 30, 2004 and 2003
(Unaudited)
For The Three For The Nine
Months Ended Months Ended
September 30 September 30
----------------------- ----------------------
2004 2003 2004 2003
----------- --------- --------- -----------
Revenues:
Underwriting income:
Premiums Written $18,372,069 $23,583,938 $55,166,785 $66,764,869
Less-premiums for
reinsurance ceded 37,510 114,348 200,818 304,665
----------- ----------- ----------- -----------
Net premiums
written 18,334,559 23,469,590 54,965,967 66,460,204
Investment income-
interest and
dividends 597,708 666,399 1,963,030 2,020,834
Net realized gain on
sales of
investments 19,280 1,130 39,667 66,044
Exchange services
revenue 931,446 383,094 1,953,644 873,995
Other 620,331 803,026 1,679,072 2,110,248
----------- ----------- ----------- -----------
Total 20,503,324 25,323,239 60,601,380 71,531,325
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 7,372,112 11,029,831 22,283,907 31,885,609
Provision for
claims 2,110,152 2,699,432 6,139,555 7,470,163
Salaries, employee
benefits and
payroll taxes 4,042,857 4,139,980 12,219,022 11,395,979
Office occupancy
and operations 1,294,766 1,321,753 3,821,520 3,784,546
Business
development 447,159 692,124 1,324,096 1,475,280
Taxes, other than
payroll and income 42,823 101,178 341,877 276,460
Premium and retaliatory
taxes 357,244 463,437 1,079,639 1,347,542
Professional fees 336,919 324,925 1,144,906 783,064
Other 84,428 87,780 138,995 287,625
----------- ----------- ----------- -----------
Total 16,088,460 20,860,440 48,493,517 58,706,268
----------- ----------- ----------- -----------
Income Before Income
Taxes 4,414,864 4,462,799 12,107,863 12,825,057
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,487,000 1,499,000 4,078,000 4,165,245
----------- ----------- ----------- -----------
Net Income $ 2,927,864 $ 2,963,799 $ 8,029,863 $ 8,659,812
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.17 $ 1.18 $ 3.21 $ 3.46
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,493,786 2,503,405 2,500,654 2,503,650
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.12 $ 1.13 $ 3.06 $ 3.30
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,608,160 2,629,026 2,621,922 2,621,504
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2004 and December 31, 2003
Sept. 30, 2004 Dec. 31, 2003
(Unaudited) (Audited)
------------- -------------
Assets
Cash and cash equivalents $ 4,498,084 $ 5,125,356
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized
cost 2,207,241 2,481,353
Available-for-sale, at fair
value 60,057,395 45,100,520
Equity securities, at fair value 6,820,648 14,556,785
Short term investments 18,050,084 16,747,964
Other investments 1,290,798 955,561
------------- -------------
Total investments 88,426,166 79,842,183
Premiums receivable, net 7,146,604 8,031,803
Accrued interest and dividends 651,848 667,147
Prepaid expenses and other assets 1,257,476 934,345
Property acquired in settlement of
claims 286,517 286,517
Property, net 4,501,458 4,099,243
Deferred income taxes, net 927,828 1,485,217
------------- -------------
Total Assets $ 107,695,981 $ 100,471,811
============= =============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 31,541,000 $ 30,031,000
Accounts payable and accrued
liabilities 5,141,775 6,243,906
Commissions and reinsurance payables 484,508 726,191
Current income taxes payable 518,323 281,968
------------- -------------
Total liabilities 37,685,606 37,283,065
------------- -------------
Stockholders' Equity:
Common stock - no par value (shares authorized
10,000,000;
2,488,730 and 2,503,923 shares issued and
outstanding 2004 and 2003,
respectively, excluding 367,014 and 351,821
shares 2004 and 2003,
respectively, of common stock held
by the Company's subsidiary) 1 1
Retained earnings 66,895,192 59,756,927
Accumulated other comprehensive
income 3,115,182 3,431,818
------------- -------------
Total stockholders' equity 70,010,375 63,188,746
------------- -------------
Total Liabilities and Stockholders'
Equity $ 107,695,981 $ 100,471,811
============= =============
Investors Title Company and Subsidiaries
Net Premiums Written By State
September 30, 2004 and 2003
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
State 2004 2003 2004 2003
- ---------------------------------------------------------------------
Alabama $ 297,717 $ 368,624 $ 1,011,387 $ 1,014,151
Florida 243,128 81,997 898,616 107,147
Illinois 193,245 291,780 742,367 1,048,229
Kentucky 449,086 476,897 1,318,294 1,418,543
Maryland 414,501 388,170 1,151,549 1,363,584
Michigan 1,208,766 1,945,041 3,789,193 6,339,491
Minnesota 312,912 531,522 830,496 1,625,270
Mississippi 245,857 362,183 758,674 927,208
Nebraska 153,045 442,975 608,851 1,606,527
New York 869,203 1,690,477 2,701,375 4,796,813
North Carolina 8,419,558 8,599,131 24,988,144 23,508,790
Pennsylvania 615,729 1,836,520 2,075,304 5,134,214
South Carolina 1,625,811 2,014,621 4,871,256 5,287,003
Tennessee 750,156 984,643 2,334,355 3,014,397
Virginia 1,860,509 2,696,344 5,181,109 7,305,163
West Virginia 530,463 607,529 1,393,544 1,641,651
Other States 182,383 265,484 512,271 620,457
------------ ----------- ----------- -----------
Direct Premiums 18,372,069 23,583,938 55,166,785 66,758,638
Reinsurance Assumed - - - 6,231
Reinsurance Ceded (37,510) (114,348) (200,818) (304,665)
------------ ----------- ----------- -----------
Net Premiums
Written $ 18,334,559 $23,469,590 $54,965,967 $66,460,204
============ =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
September 30, 2004 and 2003
(Unaudited)
For The Three Months Ended For The Nine Months Ended
September 30 September 30
- ---------------------------------------------- ---------------------
2004 % 2003 % 2004 % 2003 %
-------------------------------- -------------------------------
Branch $8,143,374 44 $8,577,766 37 $24,431,329 44 $23,575,716 35
Agency 10,191,185 56 14,891,824 63 30,534,638 56 42,884,488 65
-------------------------------- ---------------- --------------
Total $18,334,559 100 $23,469,590 100 $54,965,967 100 $66,460,204 100
================================ ================ ==============
CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200