Stewart announces record results for fourth quarter and year 2002

Subscribe to RSS Feed
• What is RSS?

HOUSTON, Feb. 14-- Stewart Information Services Corporation (NYSE: STC - News) today reported results for the fourth quarter and year ended 2002. For the fourth quarter of 2002, Stewart's revenues, net earnings and earnings per share were the highest for any quarter in the history of the company. Revenues, net earnings and earnings per share for the year 2002 were also the highest year in the company's history.

Stewart earned $43.8 million, or $2.46 per diluted share, for the fourth quarter of 2002, compared to earnings of $17.2 million, or $.96 per diluted share, for the fourth quarter of 2001. Revenues increased 49 percent to $551.3 million.

Revenues for the year 2002 were $1.8 billion, a 40 percent increase from 2001. Net earnings for the year 2002 were $94.5 million, or $5.30 per diluted share, as compared to net earnings of $48.7 million, or $2.98 per diluted share, for 2001.

"For the second year in a row Stewart has been included on the prestigious Forbes Platinum 400 list of the best performing big companies in America," said Malcolm S. Morris, chairman of the board and co-chief executive officer. "Once again, we topped the entire insurance segment with the best five-year compound annual earnings per share growth rate. Stewart also posted the best increase in revenue in the past 12 months. We were pleased with the results of our reengineering of the company in 2000, helping us to deliver a record financial performance. We strive to inform prospective investors about Stewart's strong balance sheet, growing profitability and outstanding associates."

"SureClose?, Stewart's electronic transaction management platform facilitating communication to all parties of a real estate transaction, is now up and running at 123 sites across the country," said Stewart Morris, Jr., president and co-chief executive officer. "Parties to the transaction are able to track the closing process, receive electronic notification of scheduled and completed events and view documents prior to closing, 24 hours a day, seven days a week. This Internet-based e-commerce site saves time, reduces expenses, streamlines the closing process and helps build solid long- term business relations with our customers."

"The number of orders was a new record for any fourth quarter in our history. The outlook for 2003 is for strong sales and construction levels at just slightly reduced levels from the prior year," added Stewart Morris, Jr. "The outlook for commercial real estate transaction volume should benefit from the terrorism insurance bill passed by Congress. Our National Title Services group continues to deliver a growing pipeline of pending commercial and relocation transactions. Growing global recognition of the value of and need for title insurance bodes well for ongoing international expansion, growth and profitability. With continued market share growth and execution of our strategies, we expect a good 2003."

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 6,400 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 insurance, title reports, flood determinations, property appraisals, surveys, document preparation, electronic real estate auctions, property reports, background checks and online property auctions. Stewart also supplies post-closing services to lenders, automated county clerk land records and geographic information systems for governmental entities. Stewart provides expertise in tax-deferred exchanges. More information about Stewart can be found at www.stewart.com.

This press release may contain forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements are not guarantees of performance and no assurance can be given that Stewart's expectations will be achieved. In particular, historical order counts do not necessarily indicate future revenues because Stewart cannot predict the number of orders that will result in closings.

Stewart Information Services Corporation

 

Three months

 

ended December 31

 

2002 2001

     

Revenues

$551,269,000

$370,057,000

Net earnings

$43,828,000

$17,172,000

Average shares - diluted

17,800,000

17,959,000

Earnings per share:

   

Basic

$2.47

$.97

Diluted

 

$2.46

$.96


 

 

Year Ended

 

December 31

 

2002 2001

     

Revenues

$1,779,716,000

$1,271,585,000

Net earnings

$94,480,000

$48,686,000

Average shares - diluted

$94,480,000

$48,686,000

Earnings per share:

   

Basic

$5.33

$3.01

Diluted

$5.30

$2.98

STEWART INFORMATION SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of dollars, except per share amounts)

 

Three months

Year ended

 

ended December 31

December 31

 

2002 2001

2002 2001

Revenues

Title Insurance

       
Direct operations
214,965

154,028

689,588

525,543

Agency operations

307,342

194,566

995,283

661,943

 

 

 

 

 

Real estate information services

19,495

16,748

71,119

63,821

Investment income
5,601
5,129
20,694
19,922
Investment gains (losses) - net
3,866
(414)
3,032
356
 

551,269

370,057

1,779,716

1,271,585

Expenses

Amounts retained by agencies

249,418

156,224

814,651

539,369

Employee costs

127,862

100,841

453,304

365,562

Other operating expenses

70,697

59,772

250,933

202,342

Title losses and related claims

23,970

16,699

75,920

51,454

Depreciation

5,559

4,969

21,383

19,637

Goodwill

---

1,102

---

3,011

Interest

32

168

725

2,216

Minority interests

2,431

2,226

8,940

7,414

 

479,969

342,001

1,625,856

1,191,005

         

Earnings before
taxes

71,300

28,056

153.,860

80,580

Income taxes

27,472

10,884

59,380

31,894

Net earnings

43,828

17,172

94,480

48,686

         

Average number shares outstanding (000)

17,800

17,959

17,826

16,348

Earnings per share - diluted

2.46

.96

5.30

2.98

Segment information:

Title revenues

531,774

353,309

1,708,597

1,207,764

Title pretax earnings

68,892

27,674

145,059

75,294

         

REI revenues

19,495

16,748

71,119

63,821

REI pretax earnings

2,408

382

8,801

5,286

Selected financial information (000):

Cash flow from operations

70,133

27,351

162,551

108,186

Title loss payments - net
of recoveries

15,270

13,248

48,406

39,721

Other comprehensive earnings (loss) -net of recoveries

(2,016)

(1,516)

5,195

2,151

Average number of basic shares

17,722

17,791

17,736

16,195

Number of title orders opened

240.6

203.8

833.3

679.8

STEWART INFORMATION SERVICES CORPORATION
BALANCE SHEETS (condensed)

(In thousands of dollars)

 

 

December 31

December 31

 

2002

2001

Assets

Cash and cash equivalents

139,156

60,706

Short-term investments

50,673

56,267

Investments-statutory reserve funds

306,501

239,084

Investments-other

69,260

86,046

Receivables

69,041

52,036

Property and equipment

60,863

48,772

Title plants

40,036

37,715

Goodwill

66,885

52,971

Deferred income taxes

---

4,288

Other

39,858

39,978

 

842,273

677,863

Liabilities

Notes payable

14,195

13,794

Accounts payable and
accrued liabilities

82,248

57,752

Deferred income taxes
11,284
---

Estimated title losses

230,058

202,544

Minority interests

10,896

9,233

Contingent liabilities and commitments

Stockholders' equity

Common and Class B Common Stock and
additional paid-in capital

134,927

133,157

Retained earnings

353,226

258,746

Accumulated other comprehensive
earnings

9,344

4,149

Treasury stock

(3,905)

(1,512)

Total stockholders' equity
($27.84 and $22.16 per share)

493,592

394,540

 

842,273

677,863

February 14, 2003


click here to view 2014 news releases
click here to view 2013 archived news releases
click here to view 2012 archived news releases
click here to view 2011 archived news releases
click here to view 2010 archived news releases
click here to view 2009 archived news releases
click here to view 2008 archived news releases
click here to view 2007 archived news releases
click here to view 2006 archived news releases
click here to view 2005 archived news releases
click here to view 2004 archived news releases
click here to view 2003 archived news releases
click here to view 2002 archived news releases
click here to view 2001 archived news releases
click here to view 2000 archived news releases