Stewart Reports First Quarter 2020 Results Provides COVID-19 Update

- Strong liquidity and capital position provides foundation to support customers, employees and the Company's markets during the upcoming period

- Title revenues of $440.3 million, an increase of $64.2 million, or 17 percent, compared to the prior year quarter

- Net income of $5.2 million ($13.3 million on an adjusted basis) versus net loss of $6.8 million ($6.7 million on an adjusted basis) in the prior year quarter

- Diluted EPS of $0.22 ($0.56 on an adjusted basis) compared to first quarter 2019 diluted EPS of -$0.29 (-$0.28 on an adjusted basis)

HOUSTON, 2020 年 4 月 22 日 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported first quarter 2020 net income attributable to Stewart of $5.2 million ($0.22 per diluted share), compared to a net loss attributable to Stewart of $6.8 million ($0.29 per diluted share) for the first quarter 2019. First quarter 2020 pretax income before noncontrolling interests was $9.3 million compared to a pretax loss before noncontrolling interests of $7.2 million for the first quarter 2019.

First quarter 2020 results included $10.6 million of net unrealized losses recorded in the title segment relating to changes in fair value of equity securities investments.

First quarter 2019 results included the following pretax items:

• 203.50 万美元的净未实现收益记录在与股票证券投资公允价值变动相关的产权部分，
• $2.0 million of third-party advisory expenses related to the terminated Fidelity National Financial (FNF) merger transaction included in other operating expenses within the ancillary services and corporate segment,
• 与 2013 个贷款人服务收购相关的 0.800 万美元诉讼费用，包括在辅助服务和公司部门内的其他运营费用中，以及
• 0.700 万美元的办公室关闭成本包含在产权部门内的其他运营费用中。

COVID-19 Update Stewart is closely tracking the COVID-19 pandemic and its impact on our industry and the global economy generally. We enacted our business continuity plan in early March, remaining open for business to underwrite and close real estate transactions for our residential and commercial customers. We continue to take appropriate measures, along with health guidance from industry and governmental bodies, to ensure the safety of all our employees and customers, having been deemed an essential service. Stewart's digital capabilities, including remote online notarization (RON), electronic signature platforms, virtual underwriting, and mobile earnest money transfer tools, continue to help our associates keep the real estate market open and operating in very challenging times. Going forward, we will continue to proactively manage our business through this crisis to assist in maintaining a functioning real estate market, with the safety of our customers and employees being our highest priority. We have significant cash and investments, borrowing availability on our line of credit and a strong balance sheet which we believe will enable us to successfully work through the adverse economic conditions caused by the COVID-19 pandemic.

"While I am pleased with our performance this quarter, as Stewart delivered one of its strongest first quarter performances in its history, the greater measure of our accomplishment is what has been done since the middle of March to support our customers, employees and the real estate markets," commented Fred Eppinger, chief executive officer. "We have been working tirelessly to protect the health and safety of our employees and customers, while rapidly and creatively using all available tools to continue providing leadership in the operations of real estate markets including helping people purchase homes and refinance mortgages. We will continue to carefully monitor the impact of the COVID-19 pandemic on our industry and economy as we provide our customers with the necessary services that are called for in its wake. I remain very optimistic that with our exceptional associates, customer-centric philosophy, and solid balance sheet, Stewart will emerge from this challenging period as a strong, premier provider in title services."

选定的财务信息摘要运营结果如下（以百万美元为单位，每股金额除外）：

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 first quarter 2020 increased $64.2 million, or 17 percent, compared to the prior year quarter, direct title revenues increased $37.0 million, or 23 percent, and gross independent agency revenues increased $27.2 million, or 13 percent. The higher investment income was due to increased interest income primarily resulting from the higher average cash and cash equivalents balances in the first quarter 2020 versus the prior year quarter. The title segment's net realized and unrealized losses and gains were primarily due to $10.6 million of net unrealized losses and $3.5 million of net unrealized gains relating to changes to the fair value of equity securities investments during the first quarters 2020 and 2019, respectively.

With higher title operating revenues, the title segment's overall operating expenses increased $34.8 million, or 9 percent, in the first quarter 2020 compared to the first quarter 2019, primarily driven by a 13 percent higher agency retention expense and a 5 percent increase in combined employee costs and other operating expenses. Our average independent agency remittance rate in the first quarter 2020 was slightly lower at 17.6 percent, compared to 17.9 percent in the first quarter 2019. Title loss expense increased 19 percent in the first quarter 2020; while as a percentage of title revenues, the title loss expense in the first quarter 2020 was 4.2 percent, which was comparable to the prior year quarter.

Excluding the net realized and unrealized losses and gains, and other non-operating expenses discussed above, the title segment's first quarter 2020 pretax income would have been $25.9 million (5.8 percent margin), compared to a pretax loss of $3.3 million (negative 0.9 percent margin) in the first quarter 2019.

直接产权收入信息如下所示（百万美元）：

Direct title revenues increased primarily due to a large number of closed orders during the first quarter 2020 compared to the prior year quarter. First quarter 2020 non-commercial domestic revenues improved as total purchase and refinancing closed orders increased from the prior year quarter, primarily influenced by the lower interest rate environment. Domestic commercial revenues also benefited from 4 percent higher commercial closed orders in the first quarter versus the first quarter 2019. Domestic commercial fee per file in the first quarter 2020 was approximately $11,400, an 18 percent increase versus the first quarter 2019; while domestic residential fee per file was approximately $2,000, an 11 percent decrease from last year's quarter, primarily resulting from a higher mix of refinancing to purchase transactions. Total international title revenues increased $4.0 million, or 20 percent, primarily driven by increased volumes in our Canada and United Kingdom operations.

辅助服务和公司分部摘要结果如下（以百万美元计）：

Segment operating revenues declined in the first quarter 2020 versus the prior year's quarter, primarily driven by lower revenues from the search services business due to significantly lower orders from several customers. The segment's results for the first quarter 2020 and 2019 included approximately $5.1 million and $5.5 million, respectively, of net expenses attributable to parent company and corporate operations.

Expenses Employee costs for the first quarter 2020 increased 5 percent to $135.7 million from $129.3 million in the first quarter 2019, primarily due to increased transaction volumes. As a percentage of total operating revenues, employee costs for the first quarter 2020 improved 270 basis points to 30.4 percent from 33.1 percent in the first quarter 2019.

Other operating expenses decreased 7 percent to $71.9 million in the first quarter 2020 from $77.2 million in the first quarter 2019. This decline primarily resulted from lower outside search fees, reduced rent and other occupancy expenses, and decreased outside consulting expenses. As a percentage of total operating revenues, other operating expenses for the first quarter 2020 improved 370 basis points to 16.1 percent compared to 19.8 percent in the first quarter 2019. Excluding the non-operating charges mentioned above, the other operating expenses ratio for the first quarter 2019 would have been 18.9 percent.

Other Net cash used by operations improved in the first quarter 2020 to $11.4 million, compared to net cash used of $39.9 million in the prior year quarter, primarily due to the net income generated and lower claim payments in the first quarter 2020.

Other comprehensive loss in the first quarter 2020 was $14.1 million, compared to other comprehensive income of $13.8 million in the first quarter 2019, primarily due to the depreciation of foreign currency exchange rates and the financial market downturn during the first quarter 2020.

First Quarter Earnings Call Stewart will hold a conference call to discuss the first quarter 2020 earnings at 上午 8:30 Eastern Time on 星期四, 四月 23, 2020. To participate, dial (877) 876-9174 (USA) and (785) 424-1669 (International) - access code STCQ120. 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 上午 11:00 Eastern Time on 2020 年 4 月 23 日 until midnight on 2020 年 4 月 30 日, by dialing (800) 688-7036 (USA) or (402) 220-1346 (International) - the access code is also STCQ120.

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。这些风险和不确定性包括： 除其他事项外， 经济状况的波动性 包括 COVID-19 疫情的时机和影响； 房地产活动水平的不利变化； 抵押贷款利率的变化， 现有和新的房屋销售 以及抵押贷款融资的可用性； 我们应对和实施技术变革的能力， 包括完成我们企业系统的实施； 意外产权损失或需要加强我们的保单损失准备金的影响； 产权损失对我们现金流和财务状况的任何影响； 吸引和留住高效率销售人员的能力； 审查我们的代理业务对质量和盈利能力的影响； 独立机构汇款率； 二级抵押贷款市场参与者的变化以及影响产权保险产品需求的再融资率； 监管不合规 我们的产权保险机构或员工欺诈或处分； 我们及时、经济高效地应对重大行业变化并引进新产品和服务的能力； 未决诉讼的结果； 政府和保险法规变化的影响， 包括产权保险产品和服务定价的任何未来降低； 我们依赖我们的运营子公司作为现金流的来源； 我们在需要时进入股权和债务融资市场的能力； 我们发展国际业务的能力； 季节性和天气； 以及我们应对竞争对手行为的能力。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 2019 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 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, 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. 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 the most directly comparable GAAP measures for the quarter ended 2020 年 3 月 31 日 and 2019 (dollars in millions, except share and per share amounts).

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