STEWART INFORMATION SERVICES ANNOUNCES FINANCIAL RESULTS
STEWART INFORMATION SERVICES ANNOUNCES FINANCIAL RESULTS HOUSTON, Feb. 5 /PRNewswire/ -- Stewart Information Services
Corporation (NASDAQ: SISC) announced today that it earned $3.0 million ($1.6 million excluding investment gains) in the fourth quarter of 1991 as compared to a net loss of $0.3 million in the fourth quarter of 1990. Last year's fourth quarter results did not include any investment gains and were depressed by the Persian Gulf crisis.
In terms of earnings per share, Stewart earned $.73 ($.39 excluding investment gains) in the fourth quarter of 1991 as compared to a loss of $.08 in the same period last year. For the year 1991, Stewart earned $1.7 million ($0.3 million excluding investment gains) as compared to $0.2 million in 1990. Earnings in 1990 did not include any investment gains. In terms of earnings per share, Stewart earned $.41 ($.07 excluding investment gains) as compared to $.04 last year. Stewart lost $4.7 million in the first quarter of 1991, primarily as the result of reduced real estate activity relating to the Persian Gulf War. The company often loses money in the first quarter of the year due to the seasonal nature of the title business. Interest rates fell dramatically at the end of 1991, leading to increased real estate activity, both refinancing and regular transactions. Orders in the fourth quarter of 1991 were up a dramatic 47 percent over the fourth quarter of 1990 (last year's totals were abnormally low because of the Persian Gulf crisis). Orders in the fourth quarter were 9 percent higher than orders in the third quarter of 1991. In the fourth quarter of 1991, the company sold all of its GNMA mortgage-backed securities with coupon rates of 10 percent or more. An after-tax gain on $1.4 million was realized on the sale. The proceeds from the sale were reinvested in GNMAs with lower coupon rates. A significant contribution to 1991's earnings was a "fresh start" tax credit of approximately $1.3 million permitted under a new tax law which requires insurers to recognize certain salvage items for tax purposes. Earnings in 1991 were reduced by an estimated $1.7 million before taxes by certain new operations begun in late 1990 in the Dallas area. The company has installed management with a history of producing profitable operations. The company's policy loss provisions increased an overall net $2.5 million in 1991 because the company provided for a larger number of new major claims in 1991. The amounts provided on normal losses were reduced from the prior year. Stewart's primary business is title insurance. The company issues policies on homes and other real property in all 50 states, the District of Columbia and Canada through over 2,700 issuing locations. In issuing a policy, the title is first searched, examined and then closed. The company also sells computer-related services and information to the real estate industry. Additionally, the company produces mapping products and geographic information systems for government and private entities, both domestic and foreign. STEWART INFORMATION SERVICES CORPORATION Summary of Operations Three months ended Dec. 31: 1991 1990 Earnings per share $ .73(A)(B) $ (.08) Net income $ 2,975,000(A)(B) $(316,000) Revenues $60,154,000 $51,521,000 Average shares outstanding 4,064,000 4,064,000 Year ended Dec. 31: 1991 1990 Earnings per share $ .41(A)(B) $ .04 Net income $ 1,670,000(A)(B) $ 177,000 Revenues $217,069,000 $210,494,000 Average shares outstanding 4,064,000 4,064,000 (A) -- Includes a fresh start tax credit of $209,000 or $.05 per share, for the fourth quarter of 1991 and $1,267,000 or $.31 per share, for the year 1991. (B) -- Includes an after-tax gain on sale of investments, principally GNMAs, of $1,379,000, or $.34 per share, in the fourth quarter of 1991.Stewart Information Services Corporation ST: Texas IN: INS SU: ERN TS -- NY025 -- 7096 02/05/92 10:37 EST
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|Date:||Feb 5, 1992|
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