NASDAQ$ITIC

Investors Title Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Achieved record quarterly results driven by strong refinance activity and home sales.

Investors Title Company reported record second-quarter results, with a 37.6% increase in revenues to $85.0 million and net income of $19.8 million, or $10.42 per diluted share, driven by strong refinance activity and home sales.

  • Company set all-time quarterly records for total revenues, net premiums written and net income.
  • Revenues for the quarter increased 37.6% to $85.0 million.
  • Net income reached $19.8 million, or $10.42 per diluted share.
  • The company experienced revenue growth in all of its key markets and across all channels.

Headline financials

Total Revenue

$85M

Previous: $61.7M+37.6%
EPS (adj)

$10.42

Previous: $7.65+36.2%
Capital Expenditures

-$6.06M

Previous: -$1.45M-319.1%
Free Cash Flow

$13.7M

Previous: $13M+5.2%
Net Income

$19.8M

Previous: $14.5M+36.5%
Operating Income

$48.1M

Previous: $32.4M+48.6%
Gross Profit

$83.5M

Previous: $59.8M+39.8%
Cash & Equivalents

$31.6M

Previous: $29.7M+6.3%
Total Assets

$317M

Previous: $280M+13.2%
Stock-Based Comp

$67K

Previous: $37K+81.1%

Revenue & EPS history

Investors Title · Revenue · Quarterly

$85M

Q2 2021+37.6%vs Q2 2020

Revenue by segment

Investors Title · $62.2M total across 6 segments · Q3 2023

  • Net premiums written
    $49.8M-25.3%
  • Escrow & title-related fees
    $4.68M-21.5%
  • Non-title services
    $4.64M+20.4%
  • Interest and dividends
    $2.31M
  • Other investment income
    $514K
  • Other revenue
    $257K

Forward guidance

The outlook for real estate activity for the remainder of the year continues to be generally positive, and the company believes 2021 will be another record year for the industry.

Tailwinds

  • Mortgage interest rates continue to hover near record low levels, and have offset some of the impact of higher prices.
  • The economy overall is showing clear signs of recovery amid strong government stimulus measures.
  • More than half of the population receiving vaccinations.
  • More establishments reopening.
  • Unemployment levels continuing to fall.

Headwinds

  • The pace of existing home sales has slowed in recent months as prices have continued to rise.
  • Severity and duration of the COVID-19 pandemic (including any of its variants) and its effects on the economy and the Company’s business.
  • The cyclical demand for title insurance due to changes in the residential and commercial real estate markets.
  • Variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience.
  • Loss of agency relationships, or significant reductions in agent-originated business.

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 2021

Historical avgQ2 2021

+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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