- Total revenues of $554.3
million ($547.3 million on an
adjusted basis) compared to $524.3
million ($526.1 million on an
adjusted basis) in the prior year quarter
- Net income of $3.1 million
($4.6 million on an adjusted basis)
compared to net loss of $8.2 million
(net income of $0.2 million on an
adjusted basis) in the prior year quarter
- Diluted earnings per share of $0.11 ($0.17 on an
adjusted basis) compared to prior year quarter loss per diluted
share of $0.30 ($0.01 earnings per share on an adjusted
basis)
HOUSTON, April 24,
2024 /PRNewswire/ -- Stewart Information
Services Corporation (NYSE: STC) today reported net income
attributable to Stewart of $3.1
million ($0.11 per diluted
share) for the first quarter 2024, compared to a net loss of
$8.2 million ($0.30 loss per diluted share) for the first
quarter 2023. On an adjusted basis, Stewart's first quarter 2024
net income was $4.6 million
($0.17 per diluted share) compared to
net income of $0.2 million
($0.01 per diluted share) in the
first quarter 2023. First quarter 2024 pretax income before
noncontrolling interests was $7.1
million ($9.1 million on an
adjusted basis) compared to pretax loss before noncontrolling
interests of $10.2 million (pretax
income of $0.9 million on an adjusted
basis) for the first quarter 2023.
First quarter 2024 results included $7.0
million of pretax net realized and unrealized gains
primarily driven by net unrealized gains on fair value changes of
equity securities investments, while first quarter 2023 results
included $1.8 million of pretax net
realized and unrealized losses, primarily composed of net
unrealized losses on fair value changes of equity securities
investments and realized losses on sales of investment
securities.
"Our first quarter results improved over the first quarter 2023,
but reflect the continuing challenges in the real estate market due
to the higher interest rate environment, which we expect to
continue for several quarters. We are encouraged by the increase in
our commercial revenues this quarter compared to the prior year,
although we anticipate ongoing challenges to residential
transaction volumes," commented Fred
Eppinger, chief executive officer. "We remain focused on our
strategic investments and will continue to focus on balancing
thoughtful cost discipline with investment in long-term enterprise
initiatives to create a stronger and more resilient company."
Selected Financial Information
Summary results of
operations are as follows (dollars in millions, except per share
amounts, pretax margin and adjusted pretax margin, and amounts may
not add as presented due to rounding):
|
|
Quarter
Ended
March 31,
|
|
|
2024
|
2023
|
|
|
|
|
Total
revenues
|
|
554.3
|
524.3
|
Pretax income (loss)
before noncontrolling interests
|
|
7.1
|
(10.2)
|
Income tax (expense)
benefit
|
|
(0.9)
|
4.9
|
Net income attributable
to noncontrolling interests
|
|
(3.1)
|
(3.0)
|
Net income (loss)
attributable to Stewart
|
|
3.1
|
(8.2)
|
Non-GAAP adjustments,
after taxes*
|
|
1.5
|
8.4
|
Adjusted net income
attributable to Stewart*
|
|
4.6
|
0.2
|
Pretax
margin
|
|
1.3 %
|
(1.9 %)
|
Adjusted pretax
margin*
|
|
1.7 %
|
0.2 %
|
Net income (loss) per
diluted Stewart share
|
|
0.11
|
(0.30)
|
Adjusted net income per
diluted Stewart share*
|
|
0.17
|
0.01
|
* Adjusted net income,
adjusted pretax margin and adjusted net income per diluted share
are non-GAAP measures. See Appendix A for explanation and
reconciliation of non-GAAP adjustments.
|
Title Segment
Summary results of the title segment are
as follows (dollars in millions, except pretax margin and adjusted
pretax margin):
|
Quarter Ended March
31,
|
|
|
|
2024
|
2023
|
% Change
|
|
|
|
|
|
|
|
|
Operating
revenues
|
451.4
|
456.9
|
(1 %)
|
|
|
Investment
income
|
12.9
|
6.6
|
96 %
|
|
|
Net realized and
unrealized gains (losses)
|
7.1
|
(1.8)
|
492 %
|
|
|
Pretax income
(loss)
|
10.2
|
(0.7)
|
1,633 %
|
|
|
Non-GAAP adjustments to
pretax income*
|
(3.7)
|
5.3
|
|
|
|
Adjusted pretax
income*
|
6.5
|
4.6
|
41 %
|
|
|
Pretax
margin
|
2.2 %
|
(0.1 %)
|
|
|
|
Adjusted pretax
margin*
|
1.4 %
|
1.0 %
|
|
|
|
* Adjusted
pretax income and adjusted pretax margin are non-GAAP financial
measures. See Appendix A for explanation and reconciliation of
non-GAAP adjustments.
|
|
|
|
|
|
|
|
|
First quarter 2024 title segment operating revenues decreased
$5.5 million, or 1 percent, primarily
as a result of residential volume declines in our direct and agency
title operations, partially offset by increased commercial
revenues, while total segment operating expenses declined by
$1.1 million, which was less than 1
percent, compared to the first quarter 2023. Agency retention
expenses in the first quarter 2024 decreased $5.8 million, or 3 percent, in line with
$8.2 million, or 3 percent, lower
gross agency revenues, while the average independent agency
remittance rate in the first quarter 2024 was approximately 17
percent, compared to 17.4 percent during the prior year
quarter.
Total title segment employee costs and other operating expenses
increased by $4.3 million, or 2
percent, in the first quarter 2024 compared to the prior year
quarter, primarily due to increased outside search expenses related
to higher commercial revenues. As a percentage of operating
revenues, these expenses were 52 percent in the first quarter 2024
compared to 50.4 percent in the prior year quarter. First quarter
title loss expense decreased $0.3
million, or 2 percent, primarily due to lower title revenues
compared to the prior year quarter. As a percentage of title
revenues, title loss expense was 3.9 percent for both the first
quarters 2024 and 2023.
Investment income improved by $6.3
million in the first quarter 2024 compared to the prior year
quarter, primarily due to higher interest income resulting from
earned interest from eligible escrow balances in the first quarter
2024. Non-GAAP adjustments to the title segment's pretax income
included $3.4 million of total
acquisition intangible asset amortization and other expenses for
both the first quarters 2024 and 2023, and $7.1 million and ($1.8)
million of net realized and unrealized gains (losses) in the
first quarters 2024 and 2023, respectively.
Direct title revenues information is presented below (dollars in
millions):
|
Quarter Ended March
31,
|
|
2024
|
2023
|
% Change
|
|
|
|
|
|
|
Non-commercial:
|
|
|
|
|
Domestic
|
135.3
|
150.3
|
(10 %)
|
|
International
|
19.2
|
19.2
|
0 %
|
|
|
154.5
|
169.5
|
(9 %)
|
|
Commercial:
|
|
|
|
|
Domestic
|
49.7
|
32.7
|
52 %
|
|
International
|
6.4
|
5.7
|
12 %
|
|
|
56.1
|
38.4
|
46 %
|
|
Total direct title
revenues
|
210.6
|
207.9
|
1 %
|
|
|
|
|
|
Total non-commercial domestic revenues in the first quarter 2024
declined $15.0 million, or 10
percent, primarily due to a 5 percent decline in total residential
purchase and refinancing transactions and a lower average fee per
file compared to the prior year quarter. First quarter 2024
domestic commercial revenues improved by $17.0 million, or 52 percent, primarily driven by
increased average transaction size, which was partially offset by
fewer commercial transactions. Average domestic commercial fee per
file in the first quarter 2024 was $13,900, or 67 percent higher compared to
$8,300 in the first quarter 2023,
while average residential fee per file in the first quarter 2024
was $2,900, or 16 percent lower
compared to $3,400 in the prior year
quarter, primarily due to a lower purchase transaction mix in the
first quarter 2024.
Real Estate Solutions Segment
Summary results of the
real estate solutions segment are as follows (dollars in millions,
except pretax margin and adjusted pretax margin):
|
Quarter Ended March
31,
|
|
|
2024
|
2023
|
% Change
|
|
|
|
|
|
|
Operating
revenues
|
83.0
|
62.6
|
33 %
|
|
Pretax
income
|
6.7
|
1.4
|
393 %
|
|
Non-GAAP adjustments to
pretax income*
|
5.6
|
5.8
|
|
|
Adjusted pretax
income*
|
12.3
|
7.2
|
71 %
|
|
Pretax
margin
|
8.1 %
|
2.2 %
|
|
|
Adjusted pretax
margin*
|
14.8 %
|
11.5 %
|
|
|
* Adjusted pretax
income and adjusted pretax margin are non-GAAP financial measures.
See Appendix A for an explanation and reconciliation of non-GAAP
adjustments.
|
|
First quarter 2024 segment operating revenues increased
$20.4 million, or 33 percent,
compared to the prior year quarter, primarily driven by higher
revenues from credit information and valuation services. Combined
segment employee costs and other operating expenses increased
$15.1 million, or 27 percent, in the
first quarter 2024 consistent with the higher operating revenues.
Non-GAAP adjustments to pretax income shown in the schedule above
were related to acquisition intangible asset amortization
expenses.
Corporate and Other Segment
The segment's results were
primarily driven by net expenses attributable to corporate
operations, which decreased to $9.7
million in the first quarter 2024, compared to $10.9 million in the first quarter 2023,
primarily driven by management's cost discipline.
Expenses
Consolidated employee costs in the first
quarter 2024 increased slightly by $1.9
million, or 1 percent, compared to the prior year quarter,
while as a percentage of total operating revenues, employee costs
improved to 32.3 percent in the first quarter 2024 compared to 32.8
percent in the prior year quarter.
Total other operating expenses in the first quarter 2024
increased $16.2 million, or 13
percent, primarily driven by higher service expenses and outside
search fees related to increased revenues from real estate
solutions and commercial title operations, respectively, partially
offset by lower third-party outsourcing and litigation settlement
expenses compared to the first quarter 2023. As a percentage of
total operating revenues, consolidated other operating expenses for
the first quarter 2024 were 25.6 percent, compared to 23.2 percent
in the prior year quarter, primarily driven by increased real
estate solutions service expenses.
Other
Net cash used by operations in the first quarter
2024 was $29.6 million compared to
net cash used by operations in the first quarter 2023 of
$51.1 million, primarily as a result
of improved results and lower payments on claims and accounts
payable during the first quarter 2024.
First Quarter Earnings Call
Stewart will hold a
conference call to discuss the first quarter 2024 earnings at
8:30 a.m. Eastern Time on Thursday,
April 25, 2024. To participate, dial (800) 267-6316 (USA) or (203) 518-9783 (International) -
access code STCQ124. Additionally, participants can listen to the
conference call through Stewart's Investor Relations website at
http://investors.stewart.com/news-and-events/events/default.aspx.
The conference call replay will be available from 11:00 a.m. Eastern Time on April 25, 2024 until midnight on May 2, 2024 by dialing (888) 276-5316
(USA) or (402) 220-2333
(International).
About Stewart
Stewart (NYSE-STC) is a global real
estate services company, offering products and services through our
direct operations, network of Stewart Trusted Providersâ„¢ and family
of companies. From residential and commercial title insurance and
closing and settlement services to specialized offerings for the
mortgage and real estate industries, we offer the comprehensive
service, deep expertise and solutions our customers need for any
real estate transaction. At Stewart, we are dedicated to becoming
the premier title services company and we are committed to doing so
by partnering with our customers to create mutual success. Learn
more at stewart.com.
Cautionary statement regarding forward-looking
statements. Certain statements in this earnings release
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. Such
forward-looking statements relate to future, not past, events and
often address our expected future business and financial
performance. These statements often contain words such as "may,"
"expect," "anticipate," "intend," "plan," "believe," "seek,"
"will," "foresee" or other similar words. Forward-looking
statements by their nature are subject to various risks and
uncertainties that could cause our actual results to be materially
different than those expressed in the forward-looking statements.
These risks and uncertainties include, among other things, the
volatility of economic conditions; adverse changes in the level of
real estate activity; changes in mortgage interest rates, existing
and new home sales, and availability of mortgage financing; our
ability to respond to and implement technology changes, including
the completion of the implementation of our enterprise systems; the
impact of unanticipated title losses or the need to strengthen our
policy loss reserves; any effect of title losses on our cash flows
and financial condition; the ability to attract and retain highly
productive sales associates; the impact of vetting our agency
operations for quality and profitability; independent agency
remittance rates; changes to the participants in the secondary
mortgage market and the rate of refinancing that affects the demand
for title insurance products; regulatory non-compliance,
fraud or defalcations by our title insurance agencies
or employees; our ability to timely and cost-effectively respond to
significant industry changes and introduce new products and
services; the outcome of pending litigation; our ability to manage
risks associated with potential cybersecurity or other privacy or
data security breaches; the impact of changes in governmental and
insurance regulations, including any future reductions in the
pricing of title insurance products and services; our dependence on
our operating subsidiaries as a source of cash flow; our ability to
access the equity and debt financing markets when and if needed;
our ability to grow our international operations; seasonality and
weather; and our ability to respond to the actions of our
competitors. These risks and uncertainties, as well as others, are
discussed in more detail in our documents filed with the Securities
and Exchange Commission, including our Annual Report on Form 10-K
for the year ended December 31, 2023,
and if applicable, as supplemented by any risk factors contained in
our Quarterly Reports on Form 10-Q, and our Current Reports on Form
8-K filed subsequently. All forward-looking statements included in
this earnings release are expressly qualified in their entirety by
such cautionary statements. We expressly disclaim any obligation to
update, amend or clarify any forward-looking statements contained
in this earnings release to reflect events or circumstances that
may arise after the date hereof, except as may be required by
applicable law.
ST-IR
STEWART INFORMATION
SERVICES CORPORATION CONDENSED STATEMENTS OF
INCOME (In thousands of dollars, except per share amounts
and except where noted)
|
|
|
Quarter
Ended
March 31
(Unaudited),
|
|
|
2024
|
2023
|
|
Revenues:
|
|
|
|
Title
revenues:
|
|
|
|
Direct
operations
|
210,588
|
207,871
|
|
Agency
operations
|
240,772
|
249,021
|
|
Real estate solutions
and other
|
83,016
|
62,592
|
|
Total operating
revenues
|
534,376
|
519,484
|
|
Investment
income
|
12,901
|
6,599
|
|
Net realized and
unrealized gains (losses)
|
7,038
|
(1,778)
|
|
|
554,315
|
524,305
|
|
Expenses:
|
|
|
|
Amounts retained by
agencies
|
199,976
|
205,738
|
|
Employee
costs
|
172,417
|
170,551
|
|
Other operating
expenses
|
136,951
|
120,743
|
|
Title losses and
related claims
|
17,383
|
17,674
|
|
Depreciation and
amortization
|
15,384
|
14,906
|
|
Interest
|
5,058
|
4,849
|
|
|
547,169
|
534,461
|
|
Income (loss) before
taxes and noncontrolling interests
|
7,146
|
(10,156)
|
|
Income tax (expense)
benefit
|
(936)
|
4,938
|
|
Net income
(loss)
|
6,210
|
(5,218)
|
|
Less net income
attributable to noncontrolling interests
|
3,080
|
2,972
|
|
Net income (loss)
attributable to Stewart
|
3,130
|
(8,190)
|
|
|
|
|
|
Net earnings (loss) per
diluted share attributable to Stewart
|
0.11
|
(0.30)
|
|
Diluted average shares
outstanding (000)
|
28,027
|
27,201
|
|
|
|
|
|
Selected financial
information:
|
|
|
|
Net cash used by
operations
|
(29,588)
|
(51,062)
|
|
Other comprehensive
(loss) income
|
(6,596)
|
7,307
|
|
First Quarter
Domestic Order Counts:
|
|
|
|
|
|
|
|
Opened Orders
2024:
|
Jan
|
Feb
|
Mar
|
Total
|
|
Closed Orders
2024:
|
Jan
|
Feb
|
Mar
|
Total
|
Commercial
|
1,142
|
1,359
|
1,192
|
3,693
|
|
Commercial
|
1,065
|
1,186
|
1,317
|
3,568
|
Purchase
|
14,867
|
15,920
|
17,237
|
48,024
|
|
Purchase
|
8,941
|
9,843
|
10,960
|
29,744
|
Refinancing
|
5,419
|
5,391
|
5,561
|
16,371
|
|
Refinancing
|
2,935
|
3,108
|
3,310
|
9,353
|
Other
|
3,983
|
3,836
|
3,428
|
11,247
|
|
Other
|
2,618
|
2,566
|
2,610
|
7,794
|
Total
|
25,411
|
26,506
|
27,418
|
79,335
|
|
Total
|
15,559
|
16,703
|
18,197
|
50,459
|
|
|
|
|
|
|
|
|
|
|
|
Opened Orders
2023:
|
Jan
|
Feb
|
Mar
|
Total
|
|
Closed Orders
2023:
|
Jan
|
Feb
|
Mar
|
Total
|
Commercial
|
1,156
|
1,204
|
1,482
|
3,842
|
|
Commercial
|
1,186
|
1,103
|
1,635
|
3,924
|
Purchase
|
15,242
|
15,750
|
18,477
|
49,469
|
|
Purchase
|
8,991
|
9,668
|
12,969
|
31,628
|
Refinancing
|
5,072
|
5,219
|
5,838
|
16,129
|
|
Refinancing
|
2,860
|
2,865
|
3,888
|
9,613
|
Other
|
1,394
|
1,394
|
1,633
|
4,421
|
|
Other
|
1,006
|
792
|
936
|
2,734
|
Total
|
22,864
|
23,567
|
27,430
|
73,861
|
|
Total
|
14,043
|
14,428
|
19,428
|
47,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEWART INFORMATION SERVICES
CORPORATION
CONDENSED BALANCE SHEETS
(In thousands of dollars)
|
|
|
March 31,
2024
(Unauited)
|
December 31,
2023
|
Assets:
|
|
|
Cash and cash
equivalents
|
138,351
|
233,365
|
Short-term
investments
|
42,774
|
39,023
|
Investments in debt
and equity securities, at fair value
|
673,950
|
679,936
|
Receivables – premiums
from agencies
|
39,600
|
38,676
|
Receivables –
other
|
111,020
|
93,811
|
Allowance for
uncollectible amounts
|
(8,000)
|
(7,583)
|
Property and
equipment, net
|
82,927
|
82,335
|
Operating lease
assets, net
|
113,617
|
115,879
|
Title
plants
|
73,359
|
73,359
|
Goodwill
|
1,072,315
|
1,072,129
|
Intangible assets, net
of amortization
|
185,067
|
193,196
|
Deferred tax
assets
|
3,719
|
3,776
|
Other
assets
|
122,690
|
84,959
|
|
2,651,389
|
2,702,861
|
Liabilities:
|
|
|
Notes
payable
|
445,433
|
445,290
|
Accounts payable and
accrued liabilities
|
166,376
|
190,054
|
Operating lease
liabilities
|
132,723
|
135,654
|
Estimated title
losses
|
519,229
|
528,269
|
Deferred tax
liabilities
|
23,485
|
25,045
|
|
1,287,246
|
1,324,312
|
Stockholders'
equity:
|
|
|
Common Stock and
additional paid-in capital
|
341,314
|
338,451
|
Retained
earnings
|
1,060,808
|
1,070,841
|
Accumulated other
comprehensive loss
|
(41,811)
|
(35,215)
|
Treasury
stock
|
(2,666)
|
(2,666)
|
Stockholders' equity
attributable to Stewart
|
1,357,645
|
1,371,411
|
Noncontrolling
interests
|
6,498
|
7,138
|
Total stockholders'
equity
|
1,364,143
|
1,378,549
|
|
2,651,389
|
2,702,861
|
|
|
|
Number of shares
outstanding (000)
|
27,581
|
27,370
|
Book value per
share
|
49.22
|
50.11
|
STEWART INFORMATION
SERVICES CORPORATION SEGMENT INFORMATION (In
thousands of dollars)
|
|
Quarter
Ended:
|
March 31,
2024
|
|
March 31,
2023
|
|
Title
|
Real Estate
Solutions
|
Corporate and
Other
|
Total
|
|
Title
|
Real Estate
Solutions
|
Corporate and
Other
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
451,360
|
83,016
|
-
|
534,376
|
|
456,892
|
62,592
|
-
|
519,484
|
Investment
income
|
12,876
|
25
|
-
|
12,901
|
|
6,566
|
33
|
-
|
6,599
|
Net realized and
unrealized gains (losses)
|
7,116
|
-
|
(78)
|
7,038
|
|
(1,813)
|
-
|
35
|
(1,778)
|
|
471,352
|
83,041
|
(78)
|
554,315
|
|
461,645
|
62,625
|
35
|
524,305
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Amounts retained by
agencies
|
199,976
|
-
|
-
|
199,976
|
|
205,738
|
-
|
-
|
205,738
|
Employee
costs
|
156,803
|
12,217
|
3,397
|
172,417
|
|
154,277
|
12,434
|
3,840
|
170,551
|
Other operating
expenses
|
77,901
|
57,817
|
1,234
|
136,952
|
|
76,167
|
42,525
|
2,051
|
120,743
|
Title losses and
related claims
|
17,383
|
-
|
-
|
17,383
|
|
17,674
|
-
|
-
|
17,674
|
Depreciation and
amortization
|
8,729
|
6,275
|
380
|
15,384
|
|
8,104
|
6,300
|
502
|
14,906
|
Interest
|
379
|
-
|
4,679
|
5,058
|
|
349
|
-
|
4,500
|
4,849
|
|
461,171
|
76,309
|
9,690
|
547,170
|
|
462,309
|
61,259
|
10,893
|
534,461
|
Income (loss) before
taxes
|
10,181
|
6,732
|
(9,768)
|
7,145
|
|
(664)
|
1,366
|
(10,858)
|
(10,156)
|
Appendix A
Non-GAAP Adjustments
Management uses a variety of financial and operational
measurements other than its financial statements prepared in
accordance with United States Generally Accepted Accounting
Principles (GAAP) to analyze its performance. These include: (1)
adjusted revenues, which are reported revenues adjusted for net
realized and unrealized gains and losses and (2) adjusted pretax
income and adjusted net income, which are reported pretax income
and reported net income after earnings from noncontrolling
interests, respectively, adjusted for net realized and unrealized
gains and losses, acquired intangible asset amortization, office
closure costs, and executive severance expenses. Adjusted diluted
earnings per share (adjusted diluted EPS) is calculated using
adjusted net income divided by the diluted average weighted
outstanding shares. Adjusted pretax margin is calculated using
adjusted pretax income divided by adjusted total revenues.
Management views these measures as important performance measures
of core profitability for its operations and as key components of
its internal financial reporting. Management believes investors
benefit from having access to the same financial measures that
management uses.
Below are reconciliations of the non-GAAP financial measures
used by management to the most directly comparable GAAP measures
for the quarter ended March 31, 2024
and 2023 (dollars in millions, except shares, per share amounts and
pretax margins, and amounts may not add as presented due to
rounding).
|
|
|
Quarter Ended March
31,
|
|
|
|
2024
|
2023
|
% Chg
|
|
|
|
|
|
|
|
Total
revenues
|
|
554.3
|
524.3
|
6 %
|
|
Non-GAAP revenue
adjustments:
|
|
|
|
|
|
Net realized and
unrealized (gains) losses
|
|
(7.0)
|
1.8
|
|
|
Adjusted total
revenues
|
|
547.3
|
526.1
|
4 %
|
|
|
|
|
|
|
|
Pretax income
(loss)
|
|
7.1
|
(10.2)
|
170 %
|
|
Non-GAAP pretax
adjustments:
|
|
|
|
|
|
Net realized and
unrealized (gains) losses
|
|
(7.0)
|
1.8
|
|
|
Acquired intangible
asset amortization
|
|
8.5
|
8.6
|
|
|
Office closure
costs
|
|
0.2
|
0.1
|
|
|
Executive severance
expenses
|
|
0.3
|
0.7
|
|
|
Adjusted pretax
income
|
|
9.1
|
0.9
|
890 %
|
|
GAAP pretax
margin
|
|
1.3 %
|
(1.9 %)
|
|
|
Adjusted pretax
margin
|
|
1.7 %
|
0.2 %
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Stewart
|
|
3.1
|
(8.2)
|
138 %
|
|
Non-GAAP pretax
adjustments:
|
|
|
|
|
|
Net realized and
unrealized (gains) losses
|
|
(7.0)
|
1.8
|
|
|
Acquired intangible
asset amortization
|
|
8.5
|
8.6
|
|
|
Office closure
costs
|
|
0.2
|
0.1
|
|
|
Executive severance
expenses
|
|
0.3
|
0.7
|
|
|
Net tax effects of
non-GAAP adjustments
|
|
(0.5)
|
(2.7)
|
|
|
Non-GAAP adjustments,
after taxes
|
|
1.5
|
8.4
|
|
|
Adjusted net income
attributable to Stewart
|
|
4.6
|
0.2
|
1,928 %
|
|
|
|
|
|
|
|
Diluted average shares
outstanding (000)
|
|
28,027
|
27,201
|
|
|
GAAP net income (loss)
per share
|
|
0.11
|
(0.30)
|
|
|
Adjusted net income per
share
|
|
0.17
|
0.01
|
|
|
Quarter Ended March
31,
|
|
2024
|
2023
|
% Chg
|
Title
Segment:
|
|
|
|
Revenues
|
471.4
|
461.6
|
2 %
|
Net realized and
unrealized (gains) losses
|
(7.1)
|
1.8
|
|
Adjusted
revenues
|
464.2
|
463.5
|
0 %
|
Pretax income
(loss)
|
10.2
|
(0.7)
|
1,633 %
|
Non-GAAP revenue
adjustments:
|
|
|
|
Net realized and
unrealized (gains) losses
|
(7.1)
|
1.8
|
|
Acquired intangible
asset amortization
|
2.9
|
2.8
|
|
Office closure
costs
|
0.2
|
0.1
|
|
Severance
expenses
|
0.3
|
0.6
|
|
Adjusted pretax
income
|
6.5
|
4.6
|
41 %
|
GAAP pretax
margin
|
2.2 %
|
(0.1 %)
|
|
Adjusted pretax
margin
|
1.4 %
|
1.0 %
|
|
|
|
|
|
Real Estate
Solutions Segment:
|
|
|
|
Revenues
|
83.0
|
62.6
|
33 %
|
Pretax
income
|
6.7
|
1.4
|
393 %
|
Non-GAAP revenue
adjustments:
|
|
|
|
Acquired intangible
asset amortization
|
5.6
|
5.8
|
|
Adjusted pretax
income
|
12.3
|
7.2
|
71 %
|
GAAP pretax
margin
|
8.1 %
|
2.2 %
|
|
Adjusted pretax
margin
|
14.8 %
|
11.5 %
|
|
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SOURCE Stewart Information Services Corporation