Capital Title Group Reports Strong Results in Third Quarter and for Nine-Month Period; 3rd Quarter - Earnings Increased 32%; 9-Months - Earnings Increased 49%.SCOTTSDALE, Ariz. -- 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 and other transaction services to the real estate and mortgage lending industries. Reporting results for the third quarter and nine-month period ended Sept. 30, 2005, the company announced today it had reached a new record level for revenue and net income compared to prior years. Earnings for the third quarter ended Sept. 30, 2005, increased 32% to $7.0 million, or $.28 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 of $5.3 million or $.23 per diluted share for the third quarter ended Sept. 30, 2004. Revenue during the third quarter of 2005 increased $18.0 million to $97.1 million, an increase of 23% over revenue of $79.1 million in the third quarter of 2004. The third quarter results include a reduction to revenue of approximately $1.1 million related to a change in accounting for flood zone determinations provided through the company's lender services segment. This change resulted in a reduction of earnings per diluted share of approximately $.03 in the third quarter. For the nine-month period ended Sept. 30, 2005, earnings increased 49% to $16.0 million, or $.66 per diluted share compared to earnings of $10.7 million or $.49 per diluted share for the nine-month period ended Sept. 30, 2004. Revenue for the nine-month period ended Sept. 30, 2005, was $282.2 million, an increase of 34% over revenue of $210.2 million in the same 2004 period. "Capital Title's third quarter results demonstrate the continued growth of our traditional title and escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. services within the markets we already serve. These are gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. results as we move forward on our growth strategy designed to enhance our national platform," said Donald R. Head, chairman, president and chief executive officer. 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 Corp., 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, 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 United Capital Title Insurance Co. The combined companies have in excess of 2,600 employees. Visit our Web sites for more information on the company and its subsidiaries: www.capitaltitlegroup.com www.capitaltitle.com www.newcenturytitle.com www.nationwide-totalflood.com www.landtitlenv.com www.firstcal.com www.nationwidesolution.com www.unitedtitle.com www.nascopgh.com www.awiware.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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 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 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, 2004, as filed with the Securities and Exchange Commission.
CAPITAL TITLE GROUP INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
Sept. 30, Sept. 30,
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2005 2004 2005 2004
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(in thousands, except per share data)
Revenue $97,107 $79,070 $282,170 $210,155
Expenses 84,188 69,897 252,522 190,725
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Income before
income taxes 12,919 9,173 29,648 19,430
Income tax expense 5,520 3,488 12,596 7,642
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Net income 7,399 5,685 17,052 11,788
Dividends on
preferred stock 353 353 1,048 1,052
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Earnings
attributable to
common stock $7,046 $5,332 $16,004 $10,736
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Net Income per
common share:
Basic $0.32 $0.25 $0.73 $0.54
Diluted $0.28 $0.23 $0.66 $0.49
Weighted average
number of common
shares outstanding
Basic 22,343,756 21,307,906 21,978,428 20,039,866
Diluted 24,820,795 23,127,132 24,352,314 21,782,955
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