EX-99.1 3 a5009248ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Investors Title Company Announces Third Quarter 2005 Results CHAPEL HILL, N.C.--(BUSINESS WIRE)--Nov. 1, 2005--Investors Title Company (NASDAQ:ITIC) today announced results for the third quarter ended September 30, 2005. The Company reported net income of $4,329,529, an increase of 47.9% compared with $2,927,864 for the third quarter of 2004. Diluted earnings per share were $1.67 for the quarter ended September 30, 2005 versus $1.12 for the prior year quarter. Net premiums written increased 14.3% to $20,986,100 and total revenues increased 17.2% to $24,033,323 compared with the third quarter of 2004. For the nine-month period ended September 30, 2005, the Company reported net income of $9,772,021, an increase of 21.7% compared with the same nine-month period in 2004. Diluted earnings per share were $3.74 versus $3.06 in the prior year period. Net premiums written increased 5.6% to $58,099,453 and total revenues increased 9.3% to $66,216,964 compared with the same nine-month period in 2004. "Net earnings for the period represent the second consecutive all time new high reported for any quarter of the Company's operating history", stated J. Allen Fine, Chairman of Investors Title Company. "The overall low level of interest rates continued to fuel strong demand for real estate during the third quarter. Although mortgage rates trended slightly higher as the quarter progressed, activity for the period remained strong. Strength in the real estate markets of our operating territories drove the increases in revenue for both our title insurance and Section 1031 exchange operating segments. Revenue was also favorably impacted by an increase in investment income, resulting primarily from higher rates of interest earned on short-term investments." 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. 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 September 30, 2005 and 2004 (Unaudited) For The Three For The Nine Months Ended Months Ended September 30 September 30 ------------------------ ----------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Revenues: Underwriting income: Premiums written $21,035,519 $18,391,953 $58,333,687 $55,219,529 Less-premiums for reinsurance ceded 49,419 37,510 234,234 200,818 ----------- ----------- ----------- ----------- Net premiums written 20,986,100 18,354,443 58,099,453 55,018,711 Investment income- interest and dividends 812,659 603,584 2,373,983 1,922,515 Net realized gain on sales of investments 69,597 19,280 89,504 39,667 Exchange services revenue 1,222,602 931,446 3,272,034 1,953,644 Other 942,365 594,571 2,381,990 1,666,843 ----------- ----------- ----------- ----------- Total 24,033,323 20,503,324 66,216,964 60,601,380 ----------- ----------- ----------- ----------- Operating Expenses: Commissions to agents 8,209,799 7,372,112 23,050,329 22,283,907 Provision for claims 2,283,372 2,110,152 6,354,485 6,139,555 Salaries, employee benefits and payroll taxes 4,540,061 4,042,857 14,320,940 12,219,022 Office occupancy and operations 1,320,550 1,294,766 4,353,434 3,821,521 Business development 591,506 447,159 1,483,367 1,324,096 Taxes, other than payroll and income 67,234 42,823 387,218 341,877 Premium and retaliatory taxes 411,084 357,244 1,204,399 1,079,639 Professional fees 183,310 336,919 830,683 1,144,905 Other 186,878 84,428 298,088 138,995 ----------- ----------- ----------- ----------- Total 17,793,794 16,088,460 52,282,943 48,493,517 ----------- ----------- ----------- ----------- Income Before Income Taxes 6,239,529 4,414,864 13,934,021 12,107,863 ----------- ----------- ----------- ----------- Provision For Income Taxes 1,910,000 1,487,000 4,162,000 4,078,000 ----------- ----------- ----------- ----------- Net Income $ 4,329,529 $ 2,927,864 $ 9,772,021 $ 8,029,863 =========== =========== =========== =========== Basic Earnings Per Common Share $ 1.69 $ 1.17 $ 3.81 $ 3.21 =========== =========== =========== =========== Weighted Average Shares Outstanding - Basic 2,559,154 2,493,786 2,562,247 2,500,654 =========== =========== =========== =========== Diluted Earnings Per Common Share $ 1.67 $ 1.12 $ 3.74 $ 3.06 =========== =========== =========== =========== Weighted Average Shares Outstanding - Diluted 2,600,289 2,608,160 2,611,073 2,621,922 =========== =========== =========== =========== Investors Title Company and Subsidiaries Consolidated Balance Sheets As of September 30, 2005 and December 31, 2004 (Unaudited) September 30, December 31, 2005 2004 --------------------------- Assets Cash and cash equivalents $ 6,165,400 $ 4,726,443 Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost 1,703,724 2,202,635 Available-for-sale, at fair value 62,511,297 72,471,766 Equity securities, available-for-sale at fair value 7,962,143 7,240,306 Short-term investments 25,825,270 10,134,321 Other investments 1,346,311 1,211,517 ------------- ------------ Total investments 99,348,745 93,260,545 Premiums receivable, net 8,958,003 6,679,994 Accrued interest and dividends 750,600 753,638 Prepaid expenses and other assets 2,005,707 1,410,584 Property acquired in settlement of claims 355,008 322,517 Property, net 4,417,201 4,592,784 Deferred income taxes, net 1,431,563 1,440,247 ------------- ------------ Total Assets $ 123,432,227 $113,186,752 ============= ============ Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 34,308,000 $ 31,842,000 Accounts payable and accrued liabilities 7,130,514 7,919,651 Commissions and reinsurance payables 547,394 551,662 Current income taxes payable 193,410 366,168 ------------- ------------ Total liabilities 42,179,318 40,679,481 ------------- ------------ Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,557,711 and 2,481,024 shares issued and outstanding 2005 and 2004, respectively, excluding 298,033 and 374,720 shares 2005 and 2004, respectively, of common stock held by the Company's subsidiary) 1 1 Retained earnings 78,369,004 69,272,092 Accumulated other comprehensive income (net unrealized gain on investments) 2,883,904 3,235,178 ------------- ------------ Total stockholders' equity 81,252,909 72,507,271 ------------- ------------ Total Liabilities and Stockholders' Equity $ 123,432,227 $113,186,752 ============= ============ Investors Title Company and Subsidiaries Net Premiums Written By State September 30, 2005 and 2004 (Unaudited) For the Three Months For the Nine Months Ended Ended September 30 September 30 ----------------------- ----------------------- State 2005 2004 2005 2004 ---------------------------------------------- ----------------------- Alabama $ 304,229 $ 297,717 $ 1,034,232 $ 1,011,387 Florida 410,075 243,128 1,182,015 898,616 Illinois 244,111 193,245 735,441 742,367 Kentucky 616,986 449,086 1,601,826 1,318,294 Maryland 471,464 414,501 1,331,992 1,151,549 Michigan 1,229,606 1,208,766 3,614,984 3,789,193 Minnesota 227,850 312,912 756,642 830,496 Mississippi 249,728 245,857 811,321 758,674 Nebraska 212,204 153,045 597,899 608,851 New York 998,587 869,203 2,358,964 2,701,375 North Carolina 10,111,914 8,439,442 27,477,382 25,040,888 Pennsylvania 460,000 615,729 1,287,648 2,075,304 South Carolina 1,748,951 1,625,811 5,136,939 4,871,256 Tennessee 775,812 750,156 2,066,396 2,334,355 Virginia 2,078,630 1,860,509 6,032,643 5,181,109 West Virginia 728,273 530,463 1,740,338 1,393,544 Other States 167,099 182,383 552,979 512,271 ----------- ----------- ----------- ----------- Direct Premiums 21,035,519 18,391,953 58,319,641 55,219,529 Reinsurance Assumed - - 14,046 - Reinsurance Ceded (49,419) (37,510) (234,234) (200,818) ----------- ----------- ----------- ----------- Net Premiums Written $20,986,100 $18,354,443 $58,099,453 $55,018,711 =========== =========== =========== =========== Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency September 30, 2005 and 2004 (Unaudited)
For The Three Months Ended For The Nine Months Ended September 30 September 30 ---------------------------------------------- -------------------------------------------- 2005 % 2004 % 2005 % 2004 % ---------------------------------------------- -------------------------------------------- Branch $9,636,878 46 $8,163,258 44 $26,017,989 45 $24,484,073 45 Agency 11,349,222 54 10,191,185 56 32,081,464 55 30,534,638 55 ---------------------------------------------- ------------------ ----------------------- Total $20,986,100 100 $18,354,443 100 $58,099,453 100 $55,018,711 100 ============================================== ================== =======================
CONTACT: Investors Title Company Elizabeth B. Lewter, 919-968-2200