-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VUKWviHGLHnR07Y5SbJVPeChWZ0Z3BQ1tqUXevNRhfpEEy8NPvcWSQhYrjhtUsbi TwFfZ+iywfx9eiP8YPlUNg== 0001157523-04-001241.txt : 20040211 0001157523-04-001241.hdr.sgml : 20040211 20040211171041 ACCESSION NUMBER: 0001157523-04-001241 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040211 ITEM INFORMATION: FILED AS OF DATE: 20040211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESTORS TITLE CO CENTRAL INDEX KEY: 0000720858 STANDARD INDUSTRIAL CLASSIFICATION: TITLE INSURANCE [6361] IRS NUMBER: 561110199 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11774 FILM NUMBER: 04587253 BUSINESS ADDRESS: STREET 1: 121 N COLUMBIA ST STREET 2: P O DRAWER 2687 CITY: CHAPEL HILL STATE: NC ZIP: 27514 BUSINESS PHONE: 9199682200 MAIL ADDRESS: STREET 1: 121 NORTH COLUMBIA STREET CITY: CHAPEL HILL STATE: NC ZIP: 27514 8-K 1 a4570850.txt INVESTORS TITLE 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 February 11, 2004 ------------------------------------------------------- Date of Report (Date of earliest event reported) INVESTORS TITLE COMPANY ------------------------------------------------------- (Exact name of Registrant as specified in its charter) North Carolina 0-11774 56-1110199 - -------------------------------------------------------------------------------- (State or Other Jurisdiction of (Commission (I.R.S. Employer Incorporation or Organization) File Number) Identification No.) 121 North Columbia Street Chapel Hill, North Carolina 27514 ----------------------------------------------------- (Address of Principal Executive Offices) (919) 968-2200 ----------------------------------------------------- Registrant's telephone number, including area code ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release of Investors Title Company, dated February 11, 2004, reporting Investors Title Company's financial results for the fiscal quarter and the fiscal year ended December 31, 2003. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INVESTORS TITLE COMPANY Date: February 11, 2004 By: /s/ J. Allen Fine ----------------- J. Allen Fine Chairman and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description - ---------- ----------- 99.1 Press release issued by Investors Title Company on February 11, 2004. EX-99.1 4 a4570850ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Investors Title Company Announces All-Time Record Annual Earnings CHAPEL HILL, N.C.--(BUSINESS WIRE)--xx--Investors Title Company today announced operating results for the quarter and year ended December 31, 2003. For the quarter ended December 31, 2003, net income decreased 15% to $2,305,202 from $2,714,640, and diluted earnings per share decreased 15% to $.88 from $1.04, all compared with the same quarter in the prior year. Net premiums written decreased 12% to $17,467,108 and total revenues decreased 10% to $19,298,546. For the year ended December 31, 2003, net income increased 35% to $10,965,014 or $4.18 per diluted share versus net income of $8,108,842 or $3.12 per diluted share in the prior year. Net premiums written increased 25% to $83,927,312 and total revenues increased 25% to $90,829,871. "I am extremely pleased with the Company's financial results in 2003," said Chairman and CEO J. Allen Fine. "We achieved all-time records for net income and revenue, and broke the $100 million mark in assets. In the fourth quarter, net income and revenue were most significantly impacted by the dramatic roll over in mortgage refinance volume from the levels set mid-year. Interest rates rose off the lows set earlier in the year and refinance activity declined on the order of 75% from the record pace of originations in the second quarter. Mortgage rates remain historically low, however, and transaction activity in the residential and commercial real estate markets remained healthy through 2003. " Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. Title insurance is typically sold when real estate is purchased and upon refinancing of loans secured by real estate. Premiums are written through 28 branch offices and a network of agents in 24 states and the District of Columbia. The Company also provides services in connection with tax-free exchanges of like-kind property as well as investment management services to individuals, trusts, foundations and businesses. Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. For more details on risks, uncertainties and other factors that could affect expectations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2002, as filed with the Securities and Exchange Commission. Investors Title Company and Subsidiaries Consolidated Balance Sheets As of December 31, 2003 and December 31, 2002 (Unaudited) December 31, December 31, 2003 2002 ----------------------------------- Assets Cash and cash equivalents $ 5,125,356 $ 3,781,961 Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost 3,526,030 4,395,081 Available-for-sale, at fair value 60,803,807 52,491,648 Equity securities, at fair value 14,556,785 7,884,928 Other investments 955,561 564,782 ------------- ----------- Total investments 79,842,183 65,336,439 Premiums receivable, net 8,031,803 7,949,904 Accrued interest and dividends 667,147 720,902 Prepaid expenses and other assets 934,345 1,095,230 Property acquired in settlement of claims 286,517 749,562 Property, net 4,099,243 4,109,885 Deferred income taxes, net 1,485,217 893,263 ------------- ----------- Total Assets $ 100,471,811 $84,637,146 ============= =========== Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 30,031,000 $25,630,000 Accounts payable and accrued liabilities 5,782,470 4,780,865 Commissions and reinsurance payables 726,191 401,040 Premium taxes payable 461,436 268,972 Current income taxes payable 281,968 888,085 ------------- ----------- Total liabilities 37,283,065 31,968,962 ------------- ----------- Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,503,923 and 2,515,804 shares issued and outstanding 2003 and 2002, respectively, excluding 351,821 and 339,940 shares 2003 and 2002, respectively, of common stock held by the Company's subsidiary) 1 1 Retained earnings 59,756,927 49,613,044 Accumulated other comprehensive income (net unrealized gain on investments) 3,431,818 3,055,139 ------------- ----------- Total stockholders' equity 63,188,746 52,668,184 ------------- ----------- Total Liabilities and Stockholders' Equity $ 100,471,811 $84,637,146 ============= =========== Investors Title Company and Subsidiaries Consolidated Statements of Income December 31, 2003 and 2002 (Unaudited) For The Three For The Twelve Months Ended Months Ended December 31 December 31 ----------------------- ----------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- Revenues: Underwriting income: Premiums Written $17,600,672 $19,830,993 $84,365,541 $67,647,012 Less-premiums for reinsurance ceded 133,564 25,719 438,229 348,395 ----------- ----------- ----------- ----------- Net premiums written 17,467,108 19,805,274 83,927,312 67,298,617 Investment income- interest and dividends 670,853 763,998 2,691,687 2,806,808 Net realized gain (loss) on sales of investments 192,674 (21,431) 258,718 279,301 Other 967,911 953,770 3,952,154 2,467,614 ----------- ----------- ----------- ----------- Total 19,298,546 21,501,611 90,829,871 72,852,340 ----------- ----------- ----------- ----------- Operating Expenses: Commissions to agents 7,227,935 9,614,410 39,113,544 32,006,188 Provision for claims 1,822,576 1,539,717 9,292,739 6,871,822 Salaries, employee benefits and payroll taxes 4,248,118 3,817,900 15,644,097 12,591,736 Office occupancy and operations 1,364,840 1,271,847 5,149,386 4,810,283 Business development 430,329 603,707 1,905,609 2,161,928 Taxes, other than payroll and income 70,726 123,293 347,186 387,594 Premium and retaliatory taxes 333,410 391,434 1,680,952 1,378,880 Professional fees 354,584 204,616 1,137,648 772,096 Other 100,071 70,047 387,696 202,971 ----------- ----------- ----------- ----------- Total 15,952,589 17,636,971 74,658,857 61,183,498 ----------- ----------- ----------- ----------- Income Before Income Taxes 3,345,957 3,864,640 16,171,014 11,668,842 ----------- ----------- ----------- ----------- Provision For Income Taxes 1,040,755 1,150,000 5,206,000 3,560,000 ----------- ----------- ----------- ----------- Net Income $ 2,305,202 $ 2,714,640 $10,965,014 $ 8,108,842 =========== =========== =========== =========== Basic Earnings Per Common Share $ 0.92 $ 1.08 $ 4.38 $ 3.22 =========== =========== =========== =========== Weighted Average Shares Outstanding - Basic 2,503,689 2,517,254 2,503,659 2,517,328 =========== =========== =========== =========== Diluted Earnings Per Common Share $ 0.88 $ 1.04 $ 4.18 $ 3.12 =========== =========== =========== =========== Weighted Average Shares Outstanding - Diluted 2,630,855 2,609,003 2,624,473 2,597,979 =========== =========== =========== =========== Investors Title Company and Subsidiaries Net Premiums Written By State For the Twelve Months Ended December 31, 2003 and 2002 (Unaudited) 2003 2002 - ------------------------------------------------------------------- Alabama $ 1,286,681 $ 654,345 Arkansas 21,523 58,455 District of Columbia 9,735 2,441 Florida 392,602 1,745 Georgia 135,226 125,580 Illinois 1,219,212 57,758 Indiana 320,191 296,471 Kentucky 1,800,258 1,282,772 Louisiana 2,786 - Maryland 1,707,678 1,428,140 Michigan 7,230,906 9,492,665 Minnesota 2,186,522 1,180,153 Mississippi 1,092,772 1,011,538 Missouri 136,091 - Nebraska 1,777,174 1,348,139 New Jersey 61,267 46,901 New York 5,605,642 3,911,191 North Carolina 31,102,294 24,112,712 Ohio 107,129 48,264 Pennsylvania 5,838,436 4,462,864 South Carolina 7,512,259 5,638,718 Tennessee 3,686,677 3,239,109 Virginia 9,101,185 7,577,229 West Virginia 2,025,557 1,638,306 Wisconsin (493) 10,776 ------------ ----------- Direct Premiums 84,359,310 67,626,272 Reinsurance Assumed 6,231 20,740 Reinsurance Ceded (438,229) (348,395) -------------------------- Net Premiums Written $ 83,927,312 $67,298,617 ============ =========== Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency December 31, 2003 and 2002 (Unaudited) For The Three Months Ended December 31 --------------------------------------------------------------- 2003 % 2002 % --------------------------------------------------------------- Branch $7,497,052 43 $7,093,695 36 Agency 9,970,056 57 12,711,579 64 --------------------------------------------------------------- Total $17,467,108 100 $19,805,274 100 =============================================================== For The Twelve Months Ended December 31 ------------------------------------------------------------- 2003 % 2002 % ------------------------------------------------------------- Branch $31,072,768 37 $24,232,600 36 Agency 52,854,544 63 43,066,017 64 ------------------------------------------------------------- Total $83,927,312 100 $67,298,617 100 ============================================================= CONTACT: Investors Title Company Elizabeth B. Lewter, 919-968-2200 -----END PRIVACY-ENHANCED MESSAGE-----