NASDAQ$ITIC

Investors Title Co · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Record fourth quarter and fiscal year 2019 results were announced.

Investors Title Company reported record fourth quarter net income of $11.4 million, or $6.00 per diluted share, compared to $135,000, or $0.07 per diluted share, in the prior year period. The company's revenues for the year increased by 17.4% to a record $183.5 million.

  • The Company set new records for revenues, premiums, and earnings for both the quarter and the year.
  • A strong economy led to another year of increases in the level of home sales and average real estate values.
  • Historically low interest rates drove a sharp increase in the level of refinance activity.
  • The Company continued to experience a low level of overall claims activity.

Headline financials

Total Revenue

$52.9M

Previous: $32.3M+63.8%
EPS (adj)

$6.00

Previous: $0.07+8471.4%
Capital Expenditures

$466K

Previous: $279K+67.0%
Free Cash Flow

$10.5M

Previous: $8.79M+19.4%
Net Income

$11.4M

Previous: $133K+8456.4%
Operating Income

$14.6M

No prior period
Gross Profit

$52.9M

Previous: $32.3M+63.8%
Cash & Equivalents

$25.9M

Previous: $18.7M+38.8%
Total Assets

$264M

Previous: $244M+8.0%
Stock-Based Comp

$60K

Previous: $88K-31.8%

Revenue & EPS history

Investors Title · Revenue · Quarterly

$52.9M

Q4 2019+63.8%vs Q4 2018

Revenue by segment

Investors Title · $48.8M total across 7 segments · Q4 2019

  • Net premiums written
    $41.9M
  • Non-title services
    $2.48M
  • Escrow & title-related fees
    $1.86M
  • Interest and dividends
    $1.15M
  • Other investment income
    $1.15M
  • Net investment gains
    $141K
  • Other revenue
    $128K

Forward guidance

The Company is optimistic that the strength in the economy will result in conditions favorable for continued strength in the real estate market and remains focused on enhancing competitive strengths, profitably expanding market presence, and strengthening the financial position.

Tailwinds

  • Strength in the economy
  • Favorable conditions for continued strength in the real estate market
  • Enhancing competitive strengths
  • Profitably expanding market presence
  • Strengthening financial position

Headwinds

  • Cyclical demand for title insurance
  • Occurrence of fraud, defalcation or misconduct
  • Variances between actual claims experience and underwriting and reserving assumptions
  • Declines in the performance of the Company’s investments
  • Government regulation and changes in the economy

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 Q4 2019

Historical avgQ4 2019

+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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