Stewart 报告第 2019 季度业绩

- Title revenues of $499.2 million, an increase of $13.2 million, or 3 percent, compared to the prior year quarter

- Commercial revenues of $55.8 million, an increase of $3.8 million, or 7 percent, compared to the prior year quarter

- Net income of $66.1 million and adjusted net income of $30.4 million, compared to third quarter 2018 net income of $17.6 million and adjusted net income of $20.0 million

- Diluted EPS of $2.78 and adjusted diluted EPS of $1.28, compared to third quarter 2018 diluted EPS of $0.74 and adjusted diluted EPS of $0.85

HOUSTON, Oct. 22, 2019 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $66.1 million ($2.78 per diluted share) for the third quarter 2019, compared to net income attributable to Stewart of $17.6 million ($0.74 per diluted share) for the third quarter 2018. 第 2019 季度非控制性权益前的税前收入为 91.100 万美元，而第 2018 季度非控制性权益前的税前收入为 24.800 万美元。

Third quarter 2019 results included:

• $46.9 million of net investment and other 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) following the termination of the merger transaction 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.

Third quarter 2018 results included:

• $6.8 million of third-party advisory expenses related to the FNF merger transaction recorded in other operating expenses within the ancillary services and corporate segment, and
• 3.600 万美元的净投资和其他收益。

"I am pleased with our results this quarter given the timing of the merger termination announcement. I would like to commend our people for their focus on delivering these results and providing our customers with exceptional service during a time of significant uncertainty," stated Fred Eppinger, Stewart's recently appointed chief executive officer. "While refinancing orders benefited from rate-related tailwinds, our operating results were solid across the board, with year-over-year growth in direct commercial, residential and international operations, and sequential growth in our agency business. With respect to the termination of our proposed merger with Fidelity National, customers across all of our channels have made it clear that they want Stewart as an independent force in the market. It is now up to us to capitalize on this opportunity by leveraging the power of our brand and people to grow and unlock value," concluded Eppinger.

Selected Financial Information Summary results of operations are as follows (dollars in millions, except share and per share amounts):

标题段的标题段摘要结果如下（百万美元，税前保证金除外）：

Title operating revenues in the third quarter 2019 increased 3 percent compared to the prior year quarter primarily due to a 15 percent improvement in direct title revenues, which was partially offset by a 7 percent decline in independent agency gross revenues. The segment's overall operating expenses in the third quarter 2019 decreased $5.5 million (1 percent) compared to the prior year quarter, primarily resulting from a 7 percent lower agency retention expense, largely resulting from lower agency gross revenues, partially offset by a 5 percent increase in combined employee and other operating costs primarily due to increased direct title revenues.

During the third quarters 2019 and 2018, the segment recorded $0.3 million of net unrealized losses and $2.2 million of net unrealized gains, respectively, relating to changes in fair value of equity securities investments. Excluding the effects of these equity securities' fair value remeasurements and the $2.7 million impairment charge on an equity method investment, the title segment's pretax income in the third quarter 2019 was $52.5 million, an increase of $18.7 million, or 55 percent, compared to pretax income of $33.8 million in the third quarter 2018.

直接产权收入信息如下所示（百万美元）：

Non-commercial domestic revenues increased in the third quarter 2019, compared to the prior year quarter, primarily as a result of increased closed orders driven by lower interest rates. Domestic commercial revenues increased due to a higher fee per file during the third quarter 2019 compared to the prior year quarter. Third quarter 2019 domestic commercial fee per file increased 22 percent to approximately $12,600 as a result of increased transaction sizes, while domestic residential fee per file decreased 4 percent to approximately $2,200 primarily due to the higher ratio of refinancing to purchase orders in the third quarter 2019 versus the prior year quarter. Total international title revenues increased $3.2 million, or 10 percent, primarily driven by increased volumes in Canada and the United Kingdom.

Gross revenues from independent agency operations declined 7 percent in the third quarter 2019 compared to the third quarter 2018. The independent agency remittance rate in the third quarter 2019 was 17.8 percent, a slight improvement from 17.6 percent in the prior year quarter.

辅助服务和公司分部摘要结果如下（以百万美元计）：

The segment's operating revenues decreased $4.6 million in the third quarter 2019 compared to the prior year quarter, primarily due to lower revenues from search and valuation services as a result of reductions in orders from several significant customers. The segment's results for the third quarter 2019 and 2018 included approximately $7.3 million and $12.6 million, respectively, of net expenses attributable to parent company and corporate operations, with the higher expenses in the prior year quarter being driven by increased merger-related charges. Excluding the FNF merger termination fee and merger-related expenses, the third quarter 2019 pretax loss would have been $7.4 million versus $5.6 million in the prior year quarter.

Expenses Employee costs for the third quarter 2019 were $143.8 million, an increase of 4 percent from $138.3 million in the third quarter 2018. This increase was primarily due to increased incentive compensation consistent with higher direct title revenues, partially offset by reduced salaries expense resulting from lower average employee counts in the third quarter 2019 compared to the prior year quarter. As a percentage of total operating revenues, employee costs for the third quarter 2019 and 2018 were 28.3 percent and 27.7 percent, respectively.

Other operating expenses in the third quarter 2019 were $87.8 million, a decrease of 3 percent from $90.8 million in the third quarter 2018. This decrease was primarily driven by lower professional fee expenses in the third quarter 2019, partially offset by higher outside search fees, principally related to increased commercial revenues. 在总营业收入中，第 2019 季度的其他营业费用为 17.3%，而去年同期为 18.2%。Excluding the non-operating charges mentioned above, the other operating expenses ratio for the third quarters 2019 and 2018 were 17.1 percent and 16.8 percent, respectively.

Title loss expense for the third quarter 2019 was $21.1 million, which was 2 percent lower compared to $21.5 million from the prior year quarter. Title losses, as a percentage of title revenues, were 4.2 percent in the third quarter 2019, compared to 4.4 percent in the third quarter 2018. We expect our title losses to remain at approximately 4.2 percent of title revenues for the year 2019.

Other Net cash provided by operations in the third quarter 2019 was $115.7 million, compared to net cash provided of $36.4 million in the prior year quarter. This increase was primarily due to the higher net income, which included the merger termination fee, and lower payments on accounts payables during the third quarter 2019.

Third Quarter Earnings Call Stewart will hold a conference call to discuss the third quarter 2019 earnings at 上午 8:30 Eastern Time on 星期三, 十月 23, 2019. To participate, dial (800) 894-5910 (USA) and (785) 424-1052 (International) - access code STCQ319. 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 下午 4:00 Eastern Time on 2019 年 10 月 23 日 until midnight on 2019 年 10 月 30 日, by dialing (800) 688-4915 (USA) or (402) 220-1319 (International) - the access code is also STCQ319.

关于 Stewart Stewart Information Services Corporation （NYSE：STC） 是一家全球房地产服务公司，通过我们的直接运营、Stewart Trusted Providers 网络和公司家族提供产品和服务。从住宅和商业产权保险以及成交和结算服务，到抵押贷款行业的专业产品，我们为客户提供任何房地产交易所需的全面服务、深厚的专业知识和解决方案。在斯图尔特，我们相信建立牢固的关系 - 这些伙伴关系是每笔成交，每笔交易和每笔交易的基石。Stewart. 真正的房地产合作伙伴。真正的可能性。如需更多信息，请访问公司网站 stewart.com，或订阅 Stewart 博客 blog.stewart.com，或在 Twitter^® @stewarttitleco 上关注 Stewart。

前瞻性陈述。本新闻稿中的某些声明是“私人证券诉讼改革法案” 1995 所指的“前瞻性声明”。此类前瞻性陈述与未来而非过去的事件有关，通常涉及我们预期的未来业务和财务业绩。这些陈述通常包含诸如“期望”、“预期”、“打算”、“计划”、“相信”、“寻求”、“将”、“预见”或其他类似词语。前瞻性陈述的性质受到各种风险和不确定性的影响，可能导致我们的实际结果与前瞻性陈述中表达的结果存在重大差异。These risks and uncertainties include, among other things, the volatility of economic conditions; 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. 我们在提交给证券交易委员会的文件中更详细地讨论了这些风险和不确定性，包括截至 2018 年 12 月 31 日1 的年度 10-K 表年度报告，以及适用的 10-Q 表季度报告和 8-K 表当前报告。本新闻稿中包含的所有前瞻性陈述均明确符合此类警示性陈述的全部条件。我们明确否认有任何义务更新、修改或澄清本新闻稿中包含的任何前瞻性陈述，以反映本新闻稿日期后可能出现的事件或情况，除非适用法律要求。

附录 A
Non-GAAP Adjustments

除了根据美国公认会计原则 （GAAP） 编制的财务报表外，管理层还使用各种财务和运营衡量指标来分析其绩效。这些包括：(1) adjusted revenues, which are reported revenues adjusted for any net investment and other gains and losses and (2) net income after earnings from noncontrolling interests and adjusted for net investment and other gains and losses and other non-operating costs such as FNF merger expenses and other third-party advisory costs (adjusted net income). Adjusted diluted earnings per share (adjusted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. 管理层将这些衡量指标视为其运营核心盈利能力的重要绩效衡量指标，以及其内部财务报告的关键组成部分。管理层认为，投资者可以从获得与管理层相同的财务措施中受益。

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the quarter and nine months ended 2019 年 9 月 30 日 and 2018 (dollars in millions, except share and per share amounts).

联系人：Nat Otis，财务/投资者关系高级副总裁，（713） 625-8360

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