Capital Title Group Posts Record Level Full Year 2005 Revenue of $380.2 Million; 4th Quarter Revenue of $89.7 Million Hits Record Level.PHOENIX -- Capital Title Group Inc. (Nasdaq: CTGI CTGI Capital Title Group Inc ) -- named for a second consecutive year in FORTUNE'S 100 Fastest Growing Companies in America in 2005 -- is a national provider of title, appraisal, flood and other transaction services to the real estate and mortgage lending industries. Capital Title reported record revenue of $380.2 million for the year ended Dec. 31, 2005, an increase of $79.9 million or 26.6% compared to revenue of $300.3 million for the full year 2004. Earnings attributable to common stock for 2005 was $19.7 million or $0.79 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to earnings attributable to common stock for the year 2004 of $14.2 million or $0.64 per diluted share. The company benefited from a full year of operations in its Lender Services segment as acquisitions were made in midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. 2004. Fourth quarter revenue climbed to $89.7 million, rising 7.9% compared to revenue of $83.2 million for the corresponding 2004 fourth quarter. Earnings attributable to common stock for the three-month period was $3.7 million or $0.14 per diluted share compared to $3.4 million or $0.15 per diluted share in the comparable 2004 three-month period. "We are very pleased to report that we set new records in 2005 with revenues of $380.2 million and diluted earnings attributable to common stock of $0.79 per share. We capitalized on acquisitions made in 2004 that were accretive to earnings, provided diversification to our revenue stream and established a national footprint for the company," stated Donald R. Head, chairman of the board, president and chief executive officer. "We held the line on operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , which, primarily as a result of higher revenue levels, decreased as a percentage of revenue by 1.2% in 2005. Open and closed order counts, along with our average fee per closed order, increased in 2005, reflecting that a strong real estate market continued in 2005 following the record levels we experienced in 2004. "We are proud of the accomplishments our dedicated executive management team and entire staff produced in 2005. We believe the strength of our group, coupled with our financial strength, positions us to take full advantage of additional growth and diversification opportunities as they become available," Head concluded. There will be a delay in the filing of Capital Title Group Inc.'s Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2005, that is primarily attributable to completion of the new audit procedures required by Section 404 of the Sarbanes-Oxley Act See SOX. of 2002, which have taken longer to complete than expected because this is the first year for compliance with such requirements. The company expects to file its Annual Report on Form 10-K for the year ended Dec. 31, 2005, on or before March 31, 2006. Headquartered in Scottsdale, Ariz., Capital Title Group Inc., through its subsidiaries, offers services throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for title insurance, appraisal and valuation services, and other related services to residential and commercial customers in the real estate and mortgage lending industries. Subsidiary companies include Capital Title Agency, New Century Title Co., United Title Co., First California Title Co., Land Title of Nevada, CTG CTG Cartridge CTG Center for Technology in Government (SUNY, Albany, New York) CTG Center for Technology in Government CTG Computer Task Group (IT consulting company; Buffalo, NY, USA) Real Estate Information Services See Information Systems. , Nationwide Appraisal Services, Nationwide TotalFlood Services Inc., NAC See network access control. 1031 Exchange Services, 1031 ExchangePoint Inc. and AdvantageWare -- with strategically located offices in Arizona, California, Nevada, Pennsylvania and Texas. The company is also licensed to issue and underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. title insurance policies in Arizona, California, Florida, Nevada, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Pennsylvania and Texas through its underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. subsidiary, United Capital Title Insurance Co. The combined companies have in excess of 2,500 employees. Visit our Web sites for more information on the company and its subsidiaries: www.capitaltitlegroup.com www.capitaltitle.com www.nationwide-totalflood.com www.landtitlenv.com www.nationwidesolution.com www.unitedtitle.com www.newcenturytitle.com www.firstcal.com www.awiware.com www.nascopgh.com www.nac1031.com www.1031exchangepoint.com Certain statements in this release may be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's products and services; and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: fluctuations in interest rates that can affect operating results, intense competition, past and future acquisitions, expanding operations into new markets, risk of business interruption, management of rapid growth, need for additional financing, changing customer demands, dependence on key personnel, sales and income tax uncertainty and increasing marketing, management, occupancy and other administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These factors are discussed in greater detail in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2004, as filed with the Securities and Exchange Commission.
CAPITAL TITLE GROUP INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED TWELVE MONTHS ENDED
DEC. 31, DEC. 31,
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2005 2004 2005 2004
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(in thousands, except per share data)
Revenue(1) $89,709 $83,159 $380,204 $300,301
Expenses 82,449 76,911 343,296 274,623
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Income before income
taxes 7,260 6,248 36,908 25,678
Income tax expense 3,235 2,448 15,830 10,090
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Net income 4,025 3,800 21,078 15,588
Dividends on
preferred stock 353 353 1,401 1,405
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Earnings attributable
to common stocks $3,672 $3,447 $19,677 $14,183
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Net Income per
common share:
Basic $0.14 $0.16 $0.86 $0.70
Diluted $0.14 $0.15 $0.79 $0.64
Weighted average number
of common shares
outstanding
Basic 25,356,171 21,448,044 22,829,804 20,393,834
Diluted 26,766,506 23,675,491 24,962,802 22,258,012
(1) A reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of a revenue line item previously netted with expenses has been reflected in 2004 for consistency with the presentation used in 2005. |
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