Exhibit 99.1
Investors Title Company Announces Fourth Quarter and Full Year 2005 Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--Feb. 13, 2006--Investors Title Company
(NASDAQ: ITIC) today announced record revenues and net income for the fourth
quarter ended December 31, 2005. The Company reported net income of $3,520,902,
an increase of 30.9% compared with $2,689,303 for the fourth quarter of 2004.
Diluted earnings per share were $1.36 for the quarter ended December 31, 2005
versus $1.03 for the prior year quarter. Net premiums written increased 9.5% to
$18,422,813 and total revenues increased 12.5% to $21,646,914 compared with the
fourth quarter of 2004.
For the year ended December 31, 2005, the Company reported record net
income of $13,292,923, an increase of 24% compared with 2004. Diluted earnings
per share were $5.10 versus $4.09 in the prior year period. Net premiums written
increased 6.5% to $76,522,266 and total revenues increased 10% to $87,863,878
compared with 2004.
"Net earnings for the period were the highest for any fourth quarter,"
stated J. Allen Fine, Chairman of Investors Title Company. "Operating results
were driven by growth in revenue and an increase in profit margin. Revenue in
our title insurance and 1031 exchange segments was favorably impacted by the
ongoing strength in real estate activity. Nationally, the pace of existing home
sales declined in the fourth quarter from earlier in the year but remained above
the prior year period. For 2005, existing home sales hit a new record level for
the fifth year in a row."
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 23 states and the District of Columbia. The
Company also provides services in connection with tax-deferred 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. 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, 2004, as filed with the Securities and
Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
December 31, 2005 and 2004
(Unaudited)
For The Three For The Twelve
Months Ended Months Ended
December 31 December 31
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues:
Underwriting income:
Premiums written $18,504,712 $16,918,555 $76,838,399 $72,138,084
Less-premiums for
reinsurance
ceded 81,899 93,821 316,133 294,639
----------- ----------- ----------- -----------
Net premiums written 18,422,813 16,824,734 76,522,266 71,843,445
Investment income-
interest and
dividends 961,784 830,323 3,335,767 2,752,838
Net realized gain on
sales of
investments 29,511 53,989 119,015 93,656
Exchange services
revenue 1,271,065 848,244 4,543,099 2,801,888
Other 961,741 682,506 3,343,731 2,349,349
----------- ----------- ----------- -----------
Total 21,646,914 19,239,796 87,863,878 79,841,176
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 7,259,076 6,868,738 30,309,405 29,152,645
Provision for
claims 1,810,298 1,844,784 8,164,783 7,984,339
Salaries, employee
benefits and
payroll taxes 4,815,158 4,084,329 19,136,098 16,303,351
Office occupancy
and operations 1,358,190 1,364,134 5,080,829 4,849,944
Business
development 590,151 575,219 2,073,518 1,899,315
Taxes, other than
payroll and
income 136,246 111,477 523,464 453,354
Premium and
retaliatory
taxes 352,130 326,444 1,556,529 1,406,083
Professional fees 475,755 593,904 1,937,233 2,074,520
Other 201,008 76,464 499,096 215,459
----------- ----------- ----------- -----------
Total 16,998,012 15,845,493 69,280,955 64,339,010
----------- ----------- ----------- -----------
Income Before Income
Taxes 4,648,902 3,394,303 18,582,923 15,502,166
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,128,000 705,000 5,290,000 4,783,000
----------- ----------- ----------- -----------
Net Income $ 3,520,902 $ 2,689,303 $13,292,923 $10,719,166
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.38 $ 1.08 $ 5.19 $ 4.29
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,554,935 2,484,883 2,560,418 2,496,711
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.36 $ 1.03 $ 5.10 $ 4.09
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,596,541 2,617,022 2,607,633 2,620,916
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2005 and 2004
(Unaudited)
December 31, December 31,
2005 2004
--------------------------
Assets
Cash and cash equivalents $ 14,608,481 $ 4,726,443
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 1,648,708 2,202,635
Available-for-sale, at fair value 75,472,342 72,471,766
Equity securities, available-for-sale
at fair value 9,437,678 7,240,306
Short term investments 7,257,734 10,134,321
Other investments 1,336,111 1,211,517
------------ ------------
Total investments 95,152,573 93,260,545
Premiums receivable, net 7,818,558 6,679,994
Accrued interest and dividends 1,010,198 753,638
Prepaid expenses and other assets 1,592,326 1,410,584
Property acquired in settlement of claims 359,980 322,517
Property, net 5,466,765 4,592,784
Deferred income taxes, net 2,462,647 1,440,247
------------ ------------
Total Assets $128,471,528 $113,186,752
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 34,857,000 $ 31,842,000
Accounts payable and accrued liabilities 7,928,384 7,919,651
Commissions and reinsurance payables 442,098 551,662
Current income taxes payable 946,790 366,168
------------ ------------
Total liabilities 44,174,272 40,679,481
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares authorized
10,000,000; 2,549,434 and 2,481,024 shares issued and
outstanding 2005 and 2004, respectively, excluding
297,783 and 374,720 shares 2005 and 2004,
respectively, of common stock held by
the Company's subsidiary) 1 1
Retained earnings 81,477,022 69,272,092
Accumulated other comprehensive income
(net unrealized gain on investments) 2,820,233 3,235,178
------------ ------------
Total stockholders' equity 84,297,256 72,507,271
------------ ------------
Total Liabilities and Stockholders' Equity $128,471,528 $113,186,752
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
December 31, 2005 and 2004
(Unaudited)
For the Three Months For the Twelve Months
Ended Ended
December 31 December 31
----------------------- -----------------------
State 2005 2004 2005 2004
- ---------------------------------------------- -----------------------
Alabama $ 270,588 $ 350,050 $ 1,304,820 $ 1,361,437
Florida 370,267 291,783 1,552,282 1,190,399
Illinois 264,832 205,655 1,000,273 948,022
Kentucky 513,753 392,093 2,115,579 1,710,387
Maryland 422,875 343,137 1,754,867 1,494,686
Michigan 976,655 1,107,046 4,591,639 4,896,239
Minnesota 319,513 233,323 1,076,155 1,063,819
Mississippi 166,074 231,529 977,395 990,203
Nebraska 148,615 174,547 746,514 783,398
New York 889,671 794,212 3,248,635 3,495,587
North Carolina 8,792,267 7,474,235 36,269,649 32,515,123
Pennsylvania 399,762 559,103 1,687,410 2,634,407
South Carolina 1,874,160 1,593,239 7,011,099 6,464,495
Tennessee 701,180 620,602 2,767,576 2,954,957
Virginia 1,708,028 1,857,365 7,740,671 7,038,474
West Virginia 505,804 470,672 2,246,142 1,864,216
Other States 173,738 214,001 726,717 726,272
----------- ----------- ----------- -----------
Direct Premiums 18,497,782 16,912,592 76,817,423 72,132,121
Reinsurance Assumed 6,930 5,963 20,976 5,963
Reinsurance Ceded (81,899) (93,821) (316,133) (294,639)
----------- ----------- ----------- -----------
Net Premiums Written $18,422,813 $16,824,734 $76,522,266 $71,843,445
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
December 31, 2005 and 2004
(Unaudited)
For The Three Months Ended For The Twelve Months Ended
December 31 December 31
----------------------------------------------------------------
2005 % 2004 % 2005 % 2004 %
--------------- --------------- --------------- ---------------
Branch $ 8,090,934 44 $ 7,122,836 42 $34,108,923 45 $31,606,909 44
Agency 10,331,879 56 9,701,898 58 42,413,343 55 40,236,536 56
--------------- --------------- --------------- ---------------
Total $18,422,813 100 $16,824,734 100 $76,522,266 100 $71,843,445 100
=============== =============== =============== ===============
CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200