- Total revenues of $716.4 million ($722.8 million on an adjusted basis) compared to $836.7 million ($833.8 million on an adjusted basis) in the prior year quarter
- Net income of $29.4 million ($37.5 million on an adjusted basis) compared to $88.7 million ($86.4 million on an adjusted basis) in the prior year quarter
- Diluted EPS of $1.08 ($1.37 on an adjusted basis) compared to prior year quarter diluted EPS of $3.26 ($3.17 on an adjusted basis)
HOUSTON, Oct. 26, 2022 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart for the third quarter 2022 of $29.4 million ($1.08 per diluted share), compared to net income attributable to Stewart of $88.7 million ($3.26 per diluted share) for the third quarter 2021. On an adjusted basis, Stewart's third quarter 2022 net income was $37.5 million ($1.37 per diluted share) compared to $86.4 million ($3.17 per diluted share) in the third quarter 2021. Third quarter 2022 pretax income before noncontrolling interests was $45.5 million ($56.1 million on an adjusted basis) compared to pretax income before noncontrolling interests of $116.4 million ($113.6 million on an adjusted basis) for the third quarter 2021.
Third quarter 2022 results included $6.4 million of pretax net realized and unrealized losses, primarily related to net unrealized losses on fair value changes of equity securities investments recorded in the title segment. Third quarter 2021 results included $2.9 million of pretax net realized and unrealized gains primarily driven by an acquisition contingent liability adjustment recorded in the real estate solutions segment.
"Our third quarter results reflect the headwinds experienced from increased mortgage interest rates that have significantly impacted the market. We are managing our operations in a disciplined manner during these challenging times," commented Fred Eppinger, chief executive officer. "At the same time, we will continue to invest opportunistically to build a stronger and more resilient company. In line with our long-term focus on improving Stewart, we just welcomed to the Stewart family FNC Title Services, LLC, which specializes in providing title services for reverse mortgage transactions."
Selected Financial Information
Summary results of operations are as follows (dollars in millions, except per share amounts, and amounts may not add as presented due to rounding):
Quarter Ended September 30, |
Nine Months Ended September 30, |
||||
2022 |
2021 |
2022 |
2021 |
||
Total revenues |
716.4 |
836.7 |
2,413.4 |
2,344.1 |
|
Pretax income before noncontrolling interests |
45.5 |
116.4 |
211.9 |
319.9 |
|
Income tax expense |
(10.8) |
(23.1) |
(48.4) |
(70.5) |
|
Net income attributable to noncontrolling interests |
(5.3) |
(4.7) |
(14.5) |
(11.6) |
|
Net income attributable to Stewart |
29.4 |
88.7 |
149.0 |
237.7 |
|
Non-GAAP adjustments, after taxes* |
8.0 |
(2.2) |
14.6 |
(13.7) |
|
Adjusted net income attributable to Stewart* |
37.5 |
86.4 |
163.6 |
224.0 |
|
Net income per diluted Stewart share |
1.08 |
3.26 |
5.45 |
8.78 |
|
Adjusted net income per diluted Stewart share* |
1.37 |
3.17 |
5.98 |
8.27 |
* Adjusted net income and adjusted net income per diluted share are non-GAAP measures. |
Title Segment
Summary results of the title segment are as follows (dollars in millions, except pretax margin):
Quarter Ended September 30, |
|||||||
2022 |
2021 |
% Change |
|||||
Operating revenues |
647.9 |
767.9 |
(16 %) |
||||
Investment income |
5.2 |
4.1 |
27 % |
||||
Net realized and unrealized (losses) gains |
(6.4) |
0.3 |
(2,042 %) |
||||
Pretax income |
51.8 |
119.1 |
(56 %) |
||||
Non-GAAP adjustments to pretax income* |
10.7 |
(0.3) |
|||||
Adjusted pretax income |
62.5 |
118.8 |
(47 %) |
||||
Pretax margin |
8.0 % |
15.4 % |
|||||
Adjusted pretax margin* |
9.6 % |
15.4 % |
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. |
The title segment's operating revenues in the third quarter 2022 decreased $120.0 million, or 16 percent, compared to the third quarter 2021, primarily due to volume declines in our direct title and agency operations. Overall segment operating expenses in the third quarter 2022 decreased $58 million, or 9 percent, compared to the prior year quarter, primarily due to lower agency retention and title loss expenses, consistent with lower title revenues, and lower total employee costs and other operating expenses. Average independent agency remittance rate in the third quarter 2022 was 17.6 percent compared to 17.9 percent in the third quarter 2021. As a percentage of operating revenues, combined title employee costs and other operating expenses were 43.4 percent in the third quarter 2022 compared to 37.5 percent in the third quarter 2021, primarily due to lower revenues in the third quarter 2022.
Title loss expense in the third quarter 2022 decreased by $4.9 million, or 16 percent, compared to the prior year quarter, primarily due to lower title revenues. As a percentage of title revenues, title loss expense in the third quarter 2022 was 3.9 percent compared to 4.0 percent in the third quarter 2021. For the full year 2022, we anticipate our title losses will be approximately 4 percent of title revenues.
The segment's net realized and unrealized losses and gains in the third quarters 2022 and 2021, respectively, were primarily related to fair value changes of equity securities investments. Investment income in the third quarter 2022 increased compared to the prior year quarter, primarily as a result of higher interest income driven by the increased interest rate environment in the third quarter 2022.
Direct title revenues information is presented below (dollars in millions):
Quarter Ended September 30, |
||||
2022 |
2021 |
% Change |
||
Non-commercial: |
||||
Domestic |
204.4 |
249.1 |
(18 %) |
|
International |
33.8 |
44.2 |
(24 %) |
|
238.2 |
293.3 |
(19 %) |
||
Commercial: |
||||
Domestic |
61.0 |
64.5 |
(5 %) |
|
International |
8.2 |
8.3 |
(1 %) |
|
69.2 |
72.8 |
(5 %) |
||
Total direct title revenues |
307.4 |
366.1 |
(16 %) |
|
Total non-commercial revenues declined $55.1 million, or 19 percent, primarily due to significantly lower residential purchase and refinancing activity during the third quarter 2022 compared to the prior year quarter. Domestic commercial revenues decreased $3.5 million, or 5 percent, in the third quarter 2022, primarily due to reduced transaction size compared to the third quarter 2021. Average domestic commercial fee per file was 11 percent lower in the third quarter 2022 at $13,700, compared to $15,400 in the third quarter 2021, while average residential fee per file increased 38 percent to $3,300, compared to $2,400 in the prior year quarter, due to a higher purchase mix in the third quarter 2022. Total international revenues in the third quarter 2022 decreased by $10.5 million, or 20 percent, primarily as a result of lower transaction volumes in our Canadian operations and weaker foreign currency exchange rates against the U.S. dollar compared to the prior year quarter.
Real Estate Solutions Segment
Summary results of the real estate solutions segment are as follows (dollars in millions):
Quarter Ended September 30, |
||||
2022 |
2021 |
% Change |
||
Operating revenues |
69.7 |
61.9 |
13 % |
|
Net realized gains |
- |
2.5 |
(100 %) |
|
Pretax income |
3.4 |
2.8 |
21 % |
|
Pretax margin |
4.8 % |
4.3 % |
Pretax income for the segment improved in the third quarter 2022, compared to the prior year quarter, primarily due to $7.8 million, or 13 percent, net increased revenues, driven by revenues from fourth quarter 2021 acquisitions, partially offset by lower revenues from appraisal management and notary solutions operations due to reduced market activity. Total operating expenses increased $4.7 million, or 8 percent, driven by higher employee costs related to increased employee count resulting from acquisitions and higher purchased intangible asset amortization expenses in the third quarter 2022 compared to the prior year quarter. Total intangible asset amortization expenses in the third quarters 2022 and 2021 were $5.8 million and $4.2 million, respectively; excluding these amortization expenses, pretax margin for the segment was 13.1 percent and 10.8 percent, respectively.
Corporate and Other Segment
Net expenses attributable to corporate operations in the third quarter 2022 increased $4.2 million, or 76 percent, to $9.7 million, compared to $5.5 million in the third quarter 2021, primarily as a result of higher interest expense resulting from debt issued in the fourth quarter 2021.
Expenses
Consolidated employee costs in the third quarter 2022 decreased $2.5 million, or 1 percent, compared to the third quarter 2021, primarily due to lower incentive compensation and temporary labor costs, partially offset by higher salaries and employee benefits primarily resulting from acquisitions. As a percentage of total operating revenues, consolidated employee costs for the third quarter 2022 were 27.2 percent compared to 23.8 percent in the third quarter 2021.
Total other operating expenses in the third quarter 2022 decreased by $1.4 million, or 1 percent, compared to the prior year quarter, primarily as a result of decreased costs tied to lower title and real estate solutions revenues, partially offset by higher technology and office closure costs. As a percentage of total operating revenues, consolidated other operating expenses for the third quarter 2022 were 21.1 percent compared to 18.4 percent in the third quarter 2021. The higher employee cost and other operating expenses ratios in the third quarter 2022 were primarily driven by lower operating revenues compared to the prior year quarter.
Other
Net cash provided by operations in the third quarter 2022 decreased to $48.9 million, compared to net cash provided by operations of $106.9 million in the third quarter 2021, primarily due to lower net income in the third quarter 2022.
Third Quarter Earnings Call
Stewart will hold a conference call to discuss the third quarter 2022 earnings at 8:30 a.m. Eastern Time on Thursday, October 27, 2022. To participate, dial (800) 343-5172 (USA) or (785) 424-1699 (International) - access code STCQ322. Additionally, participants can listen to the conference call through Stewart's Investor Relations website at http://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on October 27, 2022 until midnight on November 3, 2022, by dialing (800) 938-2801 or (402) 220-9031 (International) - the access code is also STCQ322.
About Stewart
Stewart (NYSE:STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage industry, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. More information can be found at http://www.stewart.com, subscribe to the Stewart blog at http://blog.stewart.com or follow Stewart on Twitter® @stewarttitleco.
Cautionary statement regarding forward-looking statements. Certain statements in this earnings release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements relate to future, not past, events and often address our expected future business and financial performance. These statements often contain words such as "may," "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "foresee" or other similar words. Forward-looking statements by their nature are subject to various risks and uncertainties that could cause our actual results to be materially different than those expressed in the forward-looking statements. These risks and uncertainties include, among other things, the volatility of economic conditions, including the duration and ultimate impact of the COVID-19 pandemic; adverse changes in the level of real estate activity; changes in mortgage interest rates, existing and new home sales, and availability of mortgage financing; our ability to respond to and implement technology changes, including the completion of the implementation of our enterprise systems; the impact of unanticipated title losses or the need to strengthen our policy loss reserves; any effect of title losses on our cash flows and financial condition; the ability to attract and retain highly productive sales associates; the impact of vetting our agency operations for quality and profitability; independent agency remittance rates; changes to the participants in the secondary mortgage market and the rate of refinancing that affects the demand for title insurance products; regulatory non-compliance, fraud or defalcations by our title insurance agencies or employees; our ability to timely and cost-effectively respond to significant industry changes and introduce new products and services; the outcome of pending litigation; the impact of changes in governmental and insurance regulations, including any future reductions in the pricing of title insurance products and services; our dependence on our operating subsidiaries as a source of cash flow; our ability to access the equity and debt financing markets when and if needed; our ability to grow our international operations; seasonality and weather; and our ability to respond to the actions of our competitors. These risks and uncertainties, as well as others, are discussed in more detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. All forward-looking statements included in this earnings release are expressly qualified in their entirety by such cautionary statements. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this earnings release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.
ST-IR
STEWART INFORMATION SERVICES CORPORATION |
|||||
CONDENSED STATEMENTS OF INCOME |
|||||
(In thousands of dollars, except per share amounts and except where noted) |
|||||
Quarter Ended September 30, |
Nine Months Ended September 30, |
||||
2022 |
2021 |
2022 |
2021 |
||
Revenues: |
|||||
Title revenues: |
|||||
Direct operations |
307,408 |
366,091 |
976,364 |
999,098 |
|
Agency operations |
340,470 |
401,762 |
1,154,546 |
1,138,023 |
|
Real estate solutions and other |
69,737 |
61,934 |
281,152 |
176,057 |
|
Total operating revenues |
717,615 |
829,787 |
2,412,062 |
2,313,178 |
|
Investment income |
5,158 |
4,053 |
15,519 |
13,127 |
|
Net realized and unrealized (losses) gains |
(6,374) |
2,887 |
(14,194) |
17,816 |
|
716,399 |
836,727 |
2,413,387 |
2,344,121 |
||
Expenses: |
|||||
Amounts retained by agencies |
280,517 |
329,906 |
951,555 |
935,861 |
|
Employee costs |
195,057 |
197,587 |
610,286 |
555,451 |
|
Other operating expenses |
151,208 |
152,587 |
502,966 |
415,864 |
|
Title losses and related claims |
25,486 |
30,345 |
81,105 |
92,687 |
|
Depreciation and amortization |
14,067 |
9,144 |
42,103 |
22,394 |
|
Interest |
4,553 |
712 |
13,471 |
1,960 |
|
670,888 |
720,281 |
2,201,486 |
2,024,217 |
||
Income before taxes and noncontrolling interests |
45,511 |
116,446 |
211,901 |
319,904 |
|
Income tax expense |
(10,783) |
(23,051) |
(48,376) |
(70,547) |
|
Net income |
34,728 |
93,395 |
163,525 |
249,357 |
|
Less net income attributable to noncontrolling interests |
5,294 |
4,732 |
14,534 |
11,639 |
|
Net income attributable to Stewart |
29,434 |
88,663 |
148,991 |
237,718 |
|
Net earnings per diluted share attributable to Stewart |
1.08 |
3.26 |
5.45 |
8.78 |
|
Diluted average shares outstanding (000) |
27,371 |
27,238 |
27,359 |
27,090 |
|
Selected financial information: |
|||||
Net cash provided by operations |
48,853 |
106,865 |
167,040 |
257,317 |
|
Other comprehensive loss |
(24,606) |
(6,781) |
(65,061) |
(12,245) |
Third Quarter Domestic Order Counts: |
|||||||||||
Opened Orders 2022: |
July |
August |
Sept |
Total |
Closed Orders 2022: |
July |
August |
Sept |
Total |
||
Commercial |
1,356 |
1,556 |
1,544 |
4,456 |
Commercial |
1,316 |
1,594 |
1,534 |
4,444 |
||
Purchase |
19,799 |
22,217 |
18,630 |
60,646 |
Purchase |
15,436 |
16,394 |
14,762 |
46,592 |
||
Refinancing |
6,629 |
7,257 |
6,161 |
20,047 |
Refinancing |
4,674 |
5,200 |
4,469 |
14,343 |
||
Other |
405 |
670 |
750 |
1,825 |
Other |
419 |
468 |
532 |
1,419 |
||
Total |
28,189 |
31,700 |
27,085 |
86,974 |
Total |
21,845 |
23,656 |
21,297 |
66,798 |
||
Opened Orders 2021: |
July |
August |
Sept |
Total |
Closed Orders 2021: |
July |
August |
Sept |
Total |
||
Commercial |
1,425 |
1,546 |
1,490 |
4,461 |
Commercial |
1,412 |
1,393 |
1,399 |
4,204 |
||
Purchase |
23,407 |
25,378 |
24,773 |
73,558 |
Purchase |
19,045 |
19,072 |
18,453 |
56,570 |
||
Refinancing |
20,732 |
22,662 |
20,980 |
64,374 |
Refinancing |
14,727 |
16,574 |
16,248 |
47,549 |
||
Other |
507 |
800 |
455 |
1,762 |
Other |
285 |
570 |
284 |
1,139 |
||
Total |
46,071 |
50,386 |
47,698 |
144,155 |
Total |
35,469 |
37,609 |
36,384 |
109,462 |
STEWART INFORMATION SERVICES CORPORATION |
||
CONDENSED BALANCE SHEETS |
||
(In thousands of dollars) |
||
September 30, |
December 31, |
|
Assets: |
||
Cash and cash equivalents |
320,933 |
485,919 |
Short-term investments |
18,077 |
17,650 |
Investments in debt and equity securities, at fair value |
669,627 |
679,214 |
Receivables – premiums from agencies |
43,426 |
45,428 |
Receivables – other |
81,010 |
81,623 |
Allowance for uncollectible amounts |
(7,577) |
(7,711) |
Property and equipment, net |
80,607 |
72,456 |
Operating lease assets, net |
130,316 |
134,578 |
Title plants |
73,358 |
76,859 |
Goodwill |
961,726 |
924,837 |
Intangible assets, net of amortization |
174,430 |
229,804 |
Deferred tax assets |
4,328 |
3,846 |
Other assets |
155,199 |
68,859 |
2,705,460 |
2,813,362 |
|
Liabilities: |
||
Notes payable |
446,372 |
483,491 |
Accounts payable and accrued liabilities |
184,065 |
287,326 |
Operating lease liabilities |
146,309 |
149,417 |
Estimated title losses |
547,214 |
549,614 |
Deferred tax liabilities |
23,999 |
48,779 |
1,347,959 |
1,518,627 |
|
Stockholders' equity: |
||
Common Stock and additional paid-in capital |
321,492 |
309,622 |
Retained earnings |
1,090,938 |
974,800 |
Accumulated other comprehensive (loss) income |
(64,808) |
253 |
Treasury stock |
(2,666) |
(2,666) |
Stockholders' equity attributable to Stewart |
1,344,956 |
1,282,009 |
Noncontrolling interests |
12,545 |
12,726 |
Total stockholders' equity |
1,357,501 |
1,294,735 |
2,705,460 |
2,813,362 |
|
Number of shares outstanding (000) |
27,123 |
26,893 |
Book value per share |
49.59 |
47.67 |
STEWART INFORMATION SERVICES CORPORATION |
|||||||||
SEGMENT INFORMATION |
|||||||||
(In thousands of dollars) |
|||||||||
Quarter Ended: |
September 30, 2022 |
September 30, 2021 |
|||||||
Title |
Real |
Corporate |
Total |
Title |
Real |
Corporate |
Total |
||
Revenues: |
|||||||||
Operating revenues |
647,878 |
69,737 |
- |
717,615 |
767,862 |
61,925 |
- |
829,787 |
|
Investment income |
5,157 |
1 |
- |
5,158 |
4,053 |
- |
- |
4,053 |
|
Net realized and unrealized (losses) gains |
(6,428) |
- |
54 |
(6,374) |
331 |
2,500 |
56 |
2,887 |
|
646,607 |
69,738 |
54 |
716,399 |
772,246 |
64,425 |
56 |
836,727 |
||
Expenses: |
|||||||||
Amounts retained by agencies |
280,517 |
- |
- |
280,517 |
329,906 |
- |
- |
329,906 |
|
Employee costs |
179,911 |
12,357 |
2,789 |
195,057 |
187,151 |
7,574 |
2,862 |
197,587 |
|
Other operating expenses |
101,343 |
47,813 |
2,052 |
151,208 |
101,141 |
49,684 |
1,762 |
152,587 |
|
Title losses and related claims |
25,486 |
- |
- |
25,486 |
30,345 |
- |
- |
30,345 |
|
Depreciation and amortization |
7,467 |
6,204 |
396 |
14,067 |
4,556 |
4,376 |
212 |
9,144 |
|
Interest |
46 |
- |
4,507 |
4,553 |
- |
- |
712 |
712 |
|
594,770 |
66,374 |
9,744 |
670,888 |
653,099 |
61,634 |
5,548 |
720,281 |
||
Income (loss) before taxes |
51,837 |
3,364 |
(9,690) |
45,511 |
119,147 |
2,791 |
(5,492) |
116,446 |
Nine Months Ended: |
September 30, 2022 |
September 30, 2021 |
|||||||
Title |
Real |
Corporate |
Total |
Title |
Real |
Corporate |
Total |
||
Revenues: |
|||||||||
Operating revenues |
2,130,910 |
241,975 |
39,177 |
2,412,062 |
2,137,129 |
176,049 |
- |
2,313,178 |
|
Investment income |
15,501 |
18 |
- |
15,519 |
13,127 |
- |
- |
13,127 |
|
Net realized and unrealized (losses) gains |
(11,411) |
- |
(2,783) |
(14,194) |
7,693 |
2,500 |
7,623 |
17,816 |
|
2,135,000 |
241,993 |
36,394 |
2,413,387 |
2,157,949 |
178,549 |
7,623 |
2,344,121 |
||
Expenses: |
|||||||||
Amounts retained by agencies |
951,555 |
- |
- |
951,555 |
935,861 |
- |
- |
935,861 |
|
Employee costs |
558,376 |
38,603 |
13,307 |
610,286 |
524,468 |
22,071 |
8,912 |
555,451 |
|
Other operating expenses |
294,606 |
167,760 |
40,600 |
502,966 |
269,444 |
140,668 |
5,752 |
415,864 |
|
Title losses and related claims |
81,105 |
- |
- |
81,105 |
92,687 |
- |
- |
92,687 |
|
Depreciation and amortization |
21,098 |
19,381 |
1,624 |
42,103 |
13,579 |
8,155 |
660 |
22,394 |
|
Interest |
48 |
- |
13,423 |
13,471 |
3 |
- |
1,957 |
1,960 |
|
1,906,788 |
225,744 |
68,954 |
2,201,486 |
1,836,042 |
170,894 |
17,281 |
2,024,217 |
||
Income (loss) before taxes |
228,212 |
16,249 |
(32,560) |
211,901 |
321,907 |
7,655 |
(9,658) |
319,904 |
Appendix A
Non-GAAP Adjustments
Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses, and other adjustments (sold real estate brokerage company), and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, office closure and severance expenses, and other adjustments. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses.
Below is a reconciliation of the non-GAAP financial measurements used by management to the most directly comparable GAAP measures for the quarter and nine months ended September 30, 2022 and 2021 (dollars in millions, except share and per share amounts, and amounts may not add as presented due to rounding).
Quarter Ended Sept. 30, |
Nine Months Ended Sept. 30, |
||||||
2022 |
2021 |
% Chg |
2022 |
2021 |
% Chg |
||
Total revenues |
716.4 |
836.7 |
(14 %) |
2,413.4 |
2,344.1 |
3 % |
|
Non-GAAP revenue adjustments: |
|||||||
Net realized and unrealized losses (gains) |
6.4 |
(2.9) |
14.2 |
(17.8) |
|||
Other adjustments |
- |
- |
(39.2) |
- |
|||
Adjusted total revenues |
722.8 |
833.8 |
(13 %) |
2,388.4 |
2,326.3 |
3 % |
|
Pretax income |
45.5 |
116.4 |
(61 %) |
211.9 |
319.9 |
(34 %) |
|
Non-GAAP pretax adjustments: |
|||||||
Net realized and unrealized losses (gains) |
6.4 |
(2.9) |
14.2 |
(17.8) |
|||
Office closure and severance expenses |
4.2 |
- |
4.2 |
- |
|||
Other adjustments |
- |
- |
0.9 |
- |
|||
Adjusted pretax income |
56.1 |
113.6 |
(51 %) |
231.3 |
302.1 |
(23 %) |
|
Adjusted pretax margin |
7.8 % |
13.6 % |
9.7 % |
13.0 % |
|||
Net income attributable to Stewart |
29.4 |
88.7 |
(67 %) |
149.0 |
237.7 |
(37 %) |
|
Non-GAAP pretax adjustments: |
|||||||
Net realized and unrealized losses (gains) |
6.4 |
(2.9) |
14.2 |
(17.8) |
|||
Office closure and severance expenses |
4.2 |
- |
4.2 |
- |
|||
Other adjustments |
- |
- |
0.9 |
- |
|||
Net tax effects of non-GAAP adjustments |
(2.6) |
0.7 |
(4.7) |
4.1 |
|||
Non-GAAP adjustments, after taxes |
8.0 |
(2.2) |
14.6 |
(13.7) |
|||
Adjusted net income attributable to Stewart |
37.5 |
86.4 |
(57 %) |
163.6 |
224.0 |
(27 %) |
|
Diluted average shares outstanding (000) |
27,371 |
27,238 |
27,359 |
27,090 |
|||
Adjusted net income per share |
1.37 |
3.17 |
5.98 |
8.27 |
|||
Title segment revenues |
646.6 |
772.2 |
(16 %) |
2,135.0 |
2,157.9 |
(1 %) |
|
Net realized and unrealized losses (gains) |
6.4 |
(0.3) |
11.4 |
(7.7) |
|||
Adjusted title segment revenues |
653.0 |
771.9 |
(15 %) |
2,146.4 |
2,150.3 |
0 % |
|
Title segment pretax income |
51.8 |
119.1 |
(56 %) |
228.2 |
321.9 |
(29 %) |
|
Non-GAAP revenue adjustments: |
|||||||
Net realized and unrealized losses (gains) |
6.4 |
(0.3) |
11.4 |
(7.7) |
|||
Office closure and severance expenses |
4.2 |
- |
4.2 |
- |
|||
Total adjustments |
10.7 |
(0.3) |
15.7 |
(7.7) |
|||
Adjusted title segment pretax income |
62.5 |
118.8 |
(47 %) |
243.9 |
314.2 |
(22 %) |
|
Adjusted title segment pretax margin |
9.6 % |
15.4 % |
11.4 % |
14.6 % |
SOURCE Stewart Information Services Corporation
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