Stewart, 3분기 2020 결과 보고

- Operating revenues of $590.7 million, an increase of $82.8 million, or 16 percent, compared to the prior year quarter

- Net income of $55.9 million versus net income of $66.1 million ($30.4 million on an adjusted basis) in the prior year quarter

- Diluted EPS of $2.21 compared to prior year quarter diluted EPS of $2.78 ($1.28 on an adjusted basis)

HOUSTON, Oct. 21, 2020 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart for the third quarter 2020 of $55.9 million ($2.21 per diluted share), compared to net income attributable to Stewart of $66.1 million ($2.78 per diluted share) for the third quarter 2019. On an adjusted basis, Stewart's third quarter 2020 net income of $55.9 million ($2.21 per diluted share) increased 84 percent from $30.4 million in the third quarter 2019. Third quarter 2020 pretax income before noncontrolling interests was $76.3 million compared to pretax income before noncontrolling interests of $91.1 million for the third quarter 2019.

Third quarter 2019 results included pretax items of:

• $46.9 million of net realized and unrealized gains, primarily composed of a $50 million gain recorded in the ancillary services and corporate segment related to the merger termination fee paid by Fidelity National Financial (FNF), and a $2.7 million impairment charge on an equity method investment recorded in the title segment, and
• $1.0 million of third-party advisory expenses related to the terminated FNF merger transaction recorded in other operating expenses within the ancillary services and corporate segment.

"In the third quarter, Stewart continued to benefit from a robust real estate transaction environment, as low interest rates continued to impact refinancing activity while purchase orders strengthened," commented Fred Eppinger, chief executive officer. "Together, they helped both our direct and agency operations outperform 2019 revenue levels. In addition, Stewart's more disciplined and focused operating approach allowed for enhanced margins. Lastly, the company closed two acquisitions in the quarter, with their benefits seen immediately in our core title results. As always, I would like to thank our employees for the work they are doing, continuing to tirelessly work under challenging conditions while insuring the safety of our customers and co-workers."

선택된 재무 정보 운영 요약 결과는 다음과 같습니다(단위: 백만 달러, 주당 금액 제외).

제목 세그먼트의 제목 세그먼트 요약 결과는 다음과 같습니다(단위: 백만 달러, 세전 마진 제외).

Title segment pretax income grew $32.9 million, or 66 percent, while pretax margin also improved 460 basis points to 14.5 percent in the third quarter 2020 compared to the prior year quarter. Title operating revenues increased $63.5 million, or 13 percent, resulting from increases in direct title revenues of $35.0 million, or 14 percent, and gross independent agency revenues of $28.5 million, or 11 percent. The effect of changes in the fair value of equity securities investments was minimal during the third quarters of 2020 and 2019; however, during the third quarter 2019, the segment recorded a $2.7 million impairment charge on an equity method investment. Excluding the impairment charge, pretax income for the third quarter 2019 would have been $52.3 million (10.4 percent margin).

Consistent with the increased title revenues in the third quarter 2020, the segment's overall operating expenses increased $33.6 million, or 7 percent, as agency retention expenses and combined title employee costs and other operating expenses increased 11 percent and 3 percent, respectively, from the third quarter 2019. Our average independent agency remittance rate for the third quarter 2020 improved to 18.2 percent compared to 17.8 percent in the prior year quarter; while combined title employee costs and other operating expenses, as a percentage of title revenues, was 39.5 percent in the third quarter 2020 compared to 43.4 percent in the prior year quarter. Title loss expense increased in the third quarter 2020 primarily due to increased title revenues, higher domestic loss provisioning rates due to the current economic environment, and unfavorable loss development in our Canadian business. As a percentage of title revenues, the title loss expense in the third quarter 2020 was 5.1 percent compared to 4.2 percent from the prior year quarter.

직접 소유권 수익 정보는 아래에 나와 있습니다(단위: 백만 달러).

Direct title revenues in the third quarter 2020 increased from the prior year quarter as a result of improved domestic non-commercial revenues, primarily driven by increased purchase and refinancing residential orders from both existing and newly acquired title offices. This increase was partially offset by decreased commercial revenues resulting from reduced transaction sizes and volumes. Domestic commercial fee per file in the third quarter 2020 was approximately $9,700, which was 23 percent lower than the third quarter 2019; while domestic residential fee per file was approximately $1,900, or 11 percent lower than the third quarter 2019, primarily due to a higher mix of refinancing compared to purchase transactions.

보조 서비스 및 회사 부문 보조 서비스 및 회사 부문의 요약 결과는 다음과 같습니다(단위: 백만 달러).

The segment's results for the third quarter 2019 included a $50.0 million realized gain related to the FNF merger termination fee and $1.0 million of merger expenses. Excluding net realized gains and merger expenses, the segment's pretax results for the third quarter 2020 improved $1.1 million, or 15 percent, compared to the prior year quarter. Third quarter segment operating revenues improved, primarily driven by $24.2 million of revenues generated by U.S. Appraisals, which were partially offset by a $4.8 million decline in search and valuation services' revenues due to significantly lower customer orders. The segment's results for the third quarter 2020 and 2019 included approximately $6.3 million and $7.3 million, respectively, of net expenses attributable to parent company and corporate operations, with the higher expenses in the third quarter 2019 being primarily driven by the FNF merger expenses mentioned above.

Expenses For the third quarter 2020, total employee costs and other operating expenses related to new acquisitions aggregated to $6.1 million and $21.7 million, respectively. Excluding these acquisitions, total employee costs increased $5.7 million, or 4 percent, in the third quarter 2020 compared to the third quarter 2019, primarily due to higher incentive compensation on improved overall operating results. As a percentage of total operating revenues, consolidated employee costs for the third quarter 2020 improved to 26.3 percent from 28.3 percent in the third quarter 2019.

Excluding acquisitions, other operating expenses decreased $11.0 million, or 13 percent, in the third quarter 2020 compared to the third quarter 2019. This decline primarily resulted from lower outside title search expenses on lower revenues from commercial services and search and valuation services, and reduced spending related to marketing, travel, rent and other occupancy, and third-party consulting. As a percentage of total operating revenues, consolidated other operating expenses for the third quarter 2020 improved to 16.7 percent compared to 17.3 percent in the third quarter 2019.

Other Net cash provided by operations in the third quarter 2020 was $90.8 million compared to net cash provided by operations of $115.7 million in the prior year quarter. The lower cash from operations in the third quarter 2020 was primarily due to the $50.0 million FNF merger termination fee received in the third quarter 2019, partially offset by a higher third quarter 2020 income from business operations.

Third quarter Earnings Call Stewart will hold a conference call to discuss the third quarter 2020 earnings at 8:30 오전 Eastern Time on 목요일, 10월 22, 2020. To participate, dial (800) 894-5910 (USA) and (785) 424-1052 (International) - access code STCQ320. Additionally, participants can listen to the conference call through Stewart's Investor Relations website at http://www.stewart.com/investor-relations/earnings-call.html. The conference call replay will be available from 11:00 오전 Eastern Time on 10월 22 2020 until midnight on 10월 29 2020, by dialing (800) 938-2796 (USA) or (402) 220-9030 (International) - the access code is also STCQ320.

Stewart 소개 Stewart Information Services Corporation(NYSE:STC)은 당사의 직접 운영, Stewart Trusted Providers™ 및 계열사 네트워크를 통해 제품과 서비스를 제공하는 글로벌 부동산 서비스 회사입니다. 주거용 및 상업용 부동산 권원 보험, 클로징 및 결제 서비스에서 모기지 산업을 위한 전문 오퍼링에 이르기까지 당사는 고객이 부동산 거래에 필요한 포괄적인 서비스, 심층적인 전문 지식 및 솔루션을 제공합니다. Stewart는 강력한 관계를 구축한다고 믿습니다. 이러한 파트너십은 모든 거래 성사, 모든 거래 및 모든 거래의 초석입니다. Stewart. 진정한 파트너. 진정한 가능성.™ 자세한 내용은 회사 웹사이트 stewart.com에서 확인할 수 있으며, Stewart 블로그 blog.stewart.com 또는 Twitter^® @stewarttitleco에서 Stewart를 팔로우할 수 있습니다.

미래 예측 진술. 이 보도 자료의 특정 진술은 1995의 사모 증권 소송 개혁법의 의미 내에서 "미래 예측 진술"입니다. 이러한 미래 예측 진술은 과거가 아닌 미래의 사건과 관련이 있으며 종종 우리의 예상 미래 비즈니스 및 재무 성과를 다룹니다. 이러한 설명에는 종종 "예상", "예상", "의도", "계획", "믿음", "찾기", "의지", "예측" 또는 기타 유사한 단어와 같은 단어가 포함됩니다. 그 성격에 따른 미래 예측 진술은 다양한 위험과 불확실성의 영향을 받으며, 이는 우리의 실제 결과가 미래 예측 진술에 표현된 것과 실질적으로 다를 수 있습니다. 이러한 위험과 불확실성에는 다음이 포함됩니다. 무엇보다도 경제 상황의 변동성, COVID-19 대유행의 시기 및 효과 포함 부동산 활동 수준의 불리한 변화 모기지 금리 변동, 기존 및 신규 주택 판매, 모기지 금융의 가용성, 기술 변화에 대응하고 구현하는 능력, 기업 시스템 구현 완료 포함 예상치 못한 권원 손실의 영향 또는 당사의 정책 손실 준비금을 강화해야 할 필요성 소유권 손실이 현금 흐름 및 재정 상태에 미치는 영향 생산성이 높은 영업 사원을 유치하고 유지하는 능력 품질 및 수익성을 위해 에이전시 운영을 심사하는 것의 영향 독립 기관 송금 비율 부동산 권원 보험 상품 수요에 영향을 미치는 2차 모기지 시장의 참가자 및 재융자 비율의 변화 규제 미준수 당사의 권원 보험 기관 또는 직원에 의한 사기 또는 명예 훼손 중요한 산업 변화에 시기적절하고 비용 효율적으로 대응하고 새로운 제품과 서비스를 도입할 수 있는 능력 계류 중인 소송의 결과 정부 및 보험 규정의 변화로 인한 영향 권원 보험 상품 및 서비스의 향후 가격 인하 포함 현금 흐름의 출처로서 운영 자회사에 대한 의존성 필요할 때 그리고 필요할 경우 주식 및 부채 금융 시장에 접근할 수 있는 당사의 능력 국제 운영을 성장시킬 수 있는 능력 계절성 및 날씨 경쟁사의 행동에 대응하는 능력. 이러한 위험과 불확실성 및 기타 사항은 12월 31 20191 종료 연도의 양식 10-K에 대한 연례 보고서, 양식 10-Q에 대한 분기별 보고서 및 양식 8-K에 대한 현재 보고서에 포함된 위험 요인으로 보완되는 것을 포함하여 증권거래위원회에 제출된 문서에서 더 자세히 논의됩니다. 본 보도 자료에 포함된 모든 미래 예측 진술은 그러한 주의 진술에 의해 전체가 명시적으로 검증됩니다. 당사는 관련 법률에서 요구할 수 있는 경우를 제외하고, 본 보도 자료에 포함된 미래 예측 진술을 업데이트, 수정 또는 명확히 하여 본 보도 자료 날짜 이후에 발생할 수 있는 사건 또는 상황을 반영할 의무를 명시적으로 부인합니다.

부록 A
Non-GAAP Adjustments

경영진은 미국 일반회계원칙(GAAP)에 따라 작성된 재무제표 이외의 다양한 재무 및 운영 측정치를 사용하여 성과를 분석합니다. 여기에는 다음이 포함됩니다. (1) adjusted revenues, which are reported revenues adjusted for any net realized and unrealized gains and losses and (2) net income after earnings from noncontrolling interests and adjusted for net realized and unrealized gains and losses and other non-operating costs such as merger expenses, cost initiative severance expenses, office closure costs and litigation expenses (adjusted net income). Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. 경영진은 이러한 조치를 운영의 핵심 수익성에 대한 중요한 성과 척도 및 내부 재무 보고의 주요 구성요소로 간주합니다. 경영진은 투자자들이 경영진이 사용하는 것과 동일한 재무적 조치에 접근함으로써 이익을 얻을 수 있다고 생각합니다.

The following tables reconcile the non-GAAP financial measurements used by management to the most directly comparable GAAP measures for the quarter and nine months ended 9월 30 2020 and 2019 (dollars in millions, except share and per share amounts).

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