Capital Title Group Reports a Significant Increase in Operating Results for the 1st Quarter 2005; Earnings Rose 620% and Revenue Advances 59% in 2005 Compared to 2004.SCOTTSDALE, Ariz. -- Capital Title Group Inc. (Nasdaq: CTGI CTGI Capital Title Group Inc ) -- listed No. 21 in FORTUNE'S 100 Fastest Growing Companies in America and a national provider of title, appraisal and other transaction services to the real estate and mortgage lending industries -- today reported results for the first quarter ended March 31, 2005, that include an increase of 620% in earnings attributable to common shares (despite a one-time, pre-tax charge of $0.7 million taken during the quarter) and an increase in revenue of 59% for the three-month period. These increases resulted from acquisitions completed subsequent to the first quarter of 2004, along with revenue and earnings increases from existing operations. During the first quarter ended March 31, 2005, earnings were $.07 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 the same period in the prior year when earnings per diluted share were $.01. Earnings for the three-month period ended March 31, 2005, were $1.8 million, versus $0.2 million in the three-month period ended March 31, 2004. Earnings for the three-month period ended March 31, 2005, included a one-time, pre-tax charge of $0.7 million related to a payment to the former shareholders of Nationwide Appraisal to obtain a tax election, which should result in lower taxes in future years by allowing a tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. for the amortization of goodwill. Without the one-time charge, earnings in the first quarter 2005 would have been $.09 per diluted share. Revenue for the three-month period ended March 31, 2005, increased 59% to $82.1 million compared to $51.5 million in the first quarter period 2004. "We had a great first quarter and I am pleased to report the results to our shareholders. We reported a higher closed order count in the first quarter 2005, when compared to 2004, while activity in the refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. market has declined. We reported an increase in the average revenue per closed order, pointing to a positive trend in the mix of our business to a greater percent of higher margin residential resale transactions. Revenue increases also benefited from 2004 acquisitions completed to intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our bundled settlement services on a national basis," stated Donald R. Head, chairman, president and chief executive officer. "We maintained a disciplined focus on expenses that decreased as a percent of revenue in the first quarter and without the one-time charge to earnings, we would have reported $.09 per diluted share. "Generally the first quarter is the slowest period in our industry with activity increasing in the second and third quarters. Our strong first quarter bodes well for our second quarter operating results. We remain focused on overall growth from the diversified revenue sources we established during 2004," Head added. 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., NAC See network access control. 1031 Exchange Services, 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., Real Estate Appraisal Real estate appraisal An estimate of the value of property using various methods. Services Inc. and AdvantageWare -- with strategically located offices in Arizona, California, Nevada, Ohio Nevada (pronounced nah-VAY-da) is a village in Wyandot County, Ohio, United States. The population was 814 at the 2000 census. Nevada was the home of Dr. Charles E. Sawyer, a homeopathic physician who is blamed for giving a false diagnosis of U.S. President Warren G. , 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 and Nevada through 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
May we have your opinion? http://www.b2i.us/sendFeedBack.asp?B=576&RL=9239&S=14523 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. FINANCIAL TABLE FOLLOWS:
CAPITAL TITLE GROUP INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2005 2004
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(in thousands, except per
share data)
Revenue $82,109 $51,547
Expenses 78,544 50,542
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Income before income taxes 3,565 1,005
Income tax expense 1,434 408
-------------------------
Net income 2,131 597
Dividends on preferred stock 345 349
-------------------------
Earnings attributable to
common shares $1,786 $248
=========================
Earnings per common share:
Basic $0.08 $0.01
Diluted $0.07 $0.01
Weighted average number of
common shares outstanding:
Basic 21,624,131 18,369,646
Diluted 24,013,980 20,253,508
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