EX-99 2 a4626532ex991.txt INVESTORS TITLE COMPANY EXHIBIT 99.1 Exhibit 99.1 Investors Title Company Announces First Quarter 2004 Results CHAPEL HILL, N.C.--(BUSINESS WIRE)--April 27, 2004--J. Allen Fine, Chairman of Investors Title Company (NASDAQ: ITIC), announced that for the quarter ended March 31, 2004, the Company reported net income of $2,221,604, a decrease of 15% compared with $2,608,561 for the prior year period. Net income per diluted share equaled $.84 versus $1.00 per diluted share in the same period last year. Net premiums written decreased 14% to $16,981,756 and revenues decreased 11% to $18,616,569 compared with the prior year period. Chairman Fine added, "Premiums written declined from the prior year reflecting significantly lower mortgage refinancing. However, with mortgage rates remaining relatively low, the decline in premium revenue was offset by ongoing strength in real estate activity." 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. Policies are issued 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 risk, 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, 2003, as filed with the Securities and Exchange Commission. Investors Title Company and Subsidiaries Consolidated Statements of Income March 31, 2004 and 2003 (Unaudited) For The Three Months Ended March 31 ----------------------- 2004 2003 ----------- ----------- Revenues: Underwriting income: Premiums Written $17,051,282 $19,765,174 Less-premiums for reinsurance ceded 69,526 97,189 ----------- ----------- Net premiums written 16,981,756 19,667,985 Investment income-interest and dividends 673,326 674,578 Net realized gain on sales of investments 3,431 23,047 Exchange services revenue 479,894 101,089 Other 478,162 561,744 ----------- ----------- Total 18,616,569 21,028,443 ----------- ----------- Operating Expenses: Commissions to agents 6,998,595 9,392,790 Provision for claims 1,844,379 2,083,038 Salaries, employee benefits and payroll taxes 3,847,905 3,547,057 Office occupancy and operations 1,210,298 1,097,116 Business development 353,414 380,952 Taxes, other than payroll and income 201,114 54,123 Premium and retaliatory taxes 333,004 421,286 Professional fees 410,675 207,344 Other 31,374 51,931 ----------- ----------- Total 15,230,758 17,235,637 ----------- ----------- Income Before Income Taxes 3,385,811 3,792,806 ----------- ----------- Provision For Income Taxes 1,164,207 1,184,245 ----------- ----------- Net Income $ 2,221,604 $ 2,608,561 =========== =========== Basic Earnings Per Common Share $ 0.89 $ 1.04 =========== =========== Weighted Average Shares Outstanding - Basic 2,505,368 2,513,507 =========== =========== Diluted Earnings Per Common Share $ 0.84 $ 1.00 =========== =========== Weighted Average Shares Outstanding - Diluted 2,638,264 2,610,242 =========== =========== Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2004 and December 31, 2003 March 31, December 31, 2004 2003 (Unaudited) (Audited) ------------ ------------ Assets Cash and cash equivalents $ 4,761,041 $ 5,125,356 Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost 3,343,339 3,526,030 Available-for-sale, at fair value 68,857,649 60,803,807 Equity securities, at fair value 8,359,781 14,556,785 Other investments 1,166,963 955,561 ------------ ------------ Total investments 81,727,732 79,842,183 Premiums receivable, net 6,980,662 8,031,803 Accrued interest and dividends 606,992 667,147 Prepaid expenses and other assets 1,291,678 934,345 Property acquired in settlement of claims 286,517 286,517 Property, net 3,963,749 4,099,243 Deferred income taxes, net 1,126,027 1,485,217 ------------ ------------ Total Assets $100,744,398 $100,471,811 ============ ============ Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 30,500,000 $ 30,031,000 Accounts payable and accrued liabilities 3,488,727 5,782,470 Commissions and reinsurance payables 390,899 726,191 Premium taxes payable 235,279 461,436 Current income taxes payable 778,370 281,968 ------------ ------------ Total liabilities 35,393,275 37,283,065 ------------ ------------ Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,505,815 and 2,503,923 shares issued and outstanding 2004 and 2003, respectively, excluding 349,929 and 351,821 shares 2004 and 2003, respectively, of common stock held by the Company's subsidiary) 1 1 Retained earnings 61,841,289 59,756,927 Accumulated other comprehensive income (net unrealized gain on investments) 3,509,833 3,431,818 ------------ ------------ Total stockholders' equity 65,351,123 63,188,746 ------------ ------------ Total Liabilities and Stockholders' Equity $100,744,398 $100,471,811 ============ ============ Investors Title Company and Subsidiaries Net Premiums Written By State For the Three Months Ended March 31, 2004 and 2003 (Unaudited) 2004 2003 --------------------------------------------------------------------- Alabama $ 328,316 $ 283,071 Arkansas (108) 12,018 District of Columbia 3,245 3,025 Florida 355,604 14,980 Georgia 20,433 6,774 Illinois 263,728 312,449 Indiana 30,112 87,216 Kentucky 400,030 430,354 Louisiana 2,237 1,204 Maryland 334,860 411,566 Michigan 1,222,800 1,894,508 Minnesota 246,360 606,998 Mississippi 246,275 237,485 Missouri 75,477 6,582 Nebraska 218,924 497,932 New Jersey 7,182 17,084 New York 816,340 1,413,227 North Carolina 7,588,636 6,960,371 Ohio 7,827 24,286 Pennsylvania 574,826 1,568,738 South Carolina 1,773,897 1,570,562 Tennessee 710,915 917,978 Virginia 1,448,438 2,042,970 West Virginia 374,928 440,311 Wisconsin - (100) ----------- ----------- Direct Premiums 17,051,282 19,761,589 Reinsurance Assumed - 3,585 Reinsurance Ceded (69,526) (97,189) ----------- ----------- Net Premiums Written $16,981,756 $19,667,985 =========== =========== Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency March 31, 2004 and 2003 (Unaudited) For The Three Months Ended March 31 ---------------------------------------------- 2004 % 2003 % ---------------------------------------------- Branch $7,459,411 44 $7,001,693 36 Agency 9,522,345 56 12,666,292 64 ---------------------------------------------- Total $16,981,756 100 $19,667,985 100 ============================================== CONTACT: Investors Title Company Elizabeth B. Lewter, 919-968-2200