NASDAQ$ITIC

Investors Title Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Record results achieved due to strong rebound in the housing market and record refinance activity.

Investors Title Company announced record results for the second quarter ended June 30, 2020. Revenues increased 44.5% to an all-time quarterly record of $61.7 million. Net income was reported as $14.5 million, or $7.65 per diluted share.

  • Revenues increased 44.5% to an all-time quarterly record of $61.7 million.
  • Net income was $14.5 million, or $7.65 per diluted share.
  • Net premiums written increased 35.7% versus the prior year period.
  • Income before income taxes increased 159.0% to $17.9 million.

Headline financials

Total Revenue

$61.7M

Previous: $42.7M+44.5%
EPS (adj)

$7.65

Previous: $2.42+216.1%
Capital Expenditures

-$1.45M

Previous: -$642K-125.2%
Free Cash Flow

$13M

Previous: $4.86M+168.6%
Net Income

$14.5M

Previous: $5.5M+163.5%
Operating Income

$32.4M

Previous: $20.5M+58.3%
Gross Profit

$59.8M

Previous: $40.3M+48.1%
Cash & Equivalents

$29.7M

Previous: $36.7M-19.0%
Total Assets

$280M

Previous: $256M+9.1%
Stock-Based Comp

$37K

Previous: $59K-37.3%

Revenue & EPS history

Investors Title · Revenue · Quarterly

$61.7M

Q2 2020+44.5%vs Q2 2019

Revenue by segment

Investors Title · $53.8M total across 7 segments · Q2 2020

  • Net premiums written
    $47.5M+35.7%
  • Escrow & title-related fees
    $2.02M
  • Non-title services
    $1.98M-21.5%
  • Interest and dividends
    $1.11M
  • Net investment gains
    $553K
  • Other investment income
    $526K
  • Other revenue
    $120K

Forward guidance

The company is optimistic that low interest rates and generally stable home values will result in a continuation of strong demand for housing for the second half of the year.

Tailwinds

  • Low interest rates
  • Generally stable home values
  • Strong demand for housing
  • Pent up demand from the first quarter
  • Initiatives from industry participants to enable loan closings during the pandemic

Headwinds

  • High level of risk and uncertainty in the economy
  • The ultimate impacts of COVID-19 on the overall economy remain unknown
  • Impacts of COVID-19 on the title insurance industry remain unknown
  • Impacts of COVID-19 on the Company’s own business remain unknown
  • Predictions about the impact of the virus on home sales are constantly evolving

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.7%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+12.5%

Q3 2024

Best reaction

-6.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+0.6%+3.1%
Q4 2025+0.4%-17.5%-18.6%
Q3 2025+6.5%+4.6%-5.5%
Q1 2025+2.1%-4.0%-17.2%
Q4 2024+4.2%+4.1%+8.5%
Q3 2024+12.5%+9.9%+18.8%
Q2 2024+3.4%+5.0%+14.8%
Q1 2024-0.3%-1.6%+13.5%
Q4 2023-2.3%-5.5%-6.0%
Q3 2023+3.0%+0.6%+5.9%
Q2 2023+1.6%-0.5%-3.9%
Q1 2023-0.7%-0.6%-6.6%
Q4 2022-1.0%+1.4%-7.2%
Q3 2022+4.8%+2.8%+5.7%
Q2 2022+1.5%+0.9%-11.9%
Q1 2022-6.0%-13.3%-8.6%
Q4 2021+4.9%+1.2%+5.0%
Q3 2021+10.1%+12.0%-4.3%
Q2 2021+9.1%+11.7%+15.4%
Q1 2021+4.7%+5.4%+0.8%
Q4 2020-0.2%+0.9%+3.7%
Q3 2020+9.5%+7.5%+14.1%
Q2 2020+3.5%+6.8%+13.9%
Q1 2020+4.5%+2.6%+7.6%
Q4 2019+4.0%+9.7%-14.1%
Q3 2019-2.0%-0.1%+1.2%
Q2 2019-2.3%-2.4%-3.7%
Q1 2019-1.4%-1.5%-7.1%
Q4 2018-4.8%-4.6%-2.8%
Q3 2018+4.6%+5.4%+4.4%
Q2 2018+1.7%+1.6%+1.0%
Q1 2018-0.0%+0.2%-1.6%
Q4 2017+0.5%+2.9%+3.5%
Q3 2017-0.9%-1.6%+7.3%
Q2 2017+1.6%+2.2%+0.0%
Q1 2017+0.8%+8.9%+6.8%
Q4 2016+4.6%+5.7%+7.6%
Q3 2016+10.2%+10.2%+38.4%
Q2 2016-0.8%-1.3%+1.3%
Q1 2016-0.5%
Q4 2015+2.6%
Q3 2015+5.8%
Q2 2015+1.8%
Q1 2015-3.9%
Q4 2014+8.3%
Q3 2014-0.4%
Q2 2014-0.8%
Q1 2014-2.1%
Q4 2013-0.7%
Q3 2013+1.7%
Q2 2013-0.0%
Q1 2013+1.5%
Q4 2012-0.5%
Q3 2012+0.0%
Q2 2012+4.6%
Q1 2011-0.4%
Q1 2012+0.8%
Q4 2011-4.2%
Q3 2011+1.2%
Q3 2010+1.2%
Q2 2010+0.0%
Q2 2011+0.0%
Q4 2010+0.0%
Q1 2010+0.3%

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