| | ||||||||||||||||||||||||
Title of each Class of Securities
to be Registered |
| |
Amount to be
Registered(2) |
| |
Maximum Offering
Price Per Share |
| |
Maximum Aggregate
Offering Price |
| |
Amount of
Registration Fee(3) |
| ||||||||||||
Common stock, par value $1.00 per share
|
| | | | 3,026,340 | | | | | $ | 38.00 | | | | | $ | 115,000,920 | | | | | $ | 14,927.12 | | |
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 38.000 | | | | | $ | 100,000,800.00 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 1.805 | | | | | $ | 4,750,038.00 | | |
Proceeds, before expenses, to Stewart Information Services Corporation.
|
| | | $ | 36.195 | | | | | $ | 95,250,762.00 | | |
|
Dowling & Partners Securities, LLC
|
| |
Keefe, Bruyette & Woods
A Stifel Company
|
| |
Stephens Inc.
|
|
| | |
Page
|
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| | | | S-1 | | | |
| | | | S-3 | | | |
| | | | S-3 | | | |
| | | | S-4 | | | |
| | | | S-5 | | | |
| | | | S-6 | | | |
| | | | S-12 | | | |
| | | | S-15 | | | |
| | | | S-16 | | | |
| | | | S-17 | | | |
| | | | S-20 | | | |
| | | | S-21 | | | |
| | | | S-23 | | | |
| | | | S-31 | | | |
| | | | S-31 | | |
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Page
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| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 12 | | | |
| | | | 13 | | | |
| | | | 13 | | |
| | |
For the
Six Months Ended June 30, |
| |
For the Years
Ended December 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(In thousands, except per share data)
|
| |||||||||||||||||||||||||||
Income Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Title revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct operations
|
| | | $ | 416,496 | | | | | $ | 389,130 | | | | | $ | 869,457 | | | | | $ | 833,200 | | | | | $ | 862,392 | | |
Agency operations
|
| | | | 519,417 | | | | | | 445,680 | | | | | | 970,540 | | | | | | 1,003,959 | | | | | | 1,016,356 | | |
Ancillary services
|
| | | | 16,616 | | | | | | 22,080 | | | | | | 37,456 | | | | | | 50,723 | | | | | | 55,837 | | |
Total Operating Revenues
|
| | | | 952,529 | | | | | | 856,890 | | | | | | 1,877,453 | | | | | | 1,887,882 | | | | | | 1,934,585 | | |
Investment income
|
| | | | 9,503 | | | | | | 9,879 | | | | | | 19,795 | | | | | | 19,737 | | | | | | 18,932 | | |
Net realized and unrealized gains (losses)
|
| | | | (6,027) | | | | | | 3,826 | | | | | | 42,760 | | | | | | 53 | | | | | | 2,207 | | |
| | | | | 956,005 | | | | | | 870,595 | | | | | | 1,940,008 | | | | | | 1,907,672 | | | | | | 1,955,724 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amounts retained by agencies
|
| | | | 428,086 | | | | | | 367,586 | | | | | | 799,229 | | | | | | 827,046 | | | | | | 837,100 | | |
Employee costs
|
| | | | 273,180 | | | | | | 269,151 | | | | | | 567,173 | | | | | | 562,469 | | | | | | 566,178 | | |
Other operating expenses
|
| | | | 146,473 | | | | | | 163,207 | | | | | | 345,349 | | | | | | 345,307 | | | | | | 351,511 | | |
Title losses and related claims
|
| | | | 40,172 | | | | | | 34,473 | | | | | | 84,423 | | | | | | 71,514 | | | | | | 96,532 | | |
Depreciation and amortization
|
| | | | 8,292 | | | | | | 11,764 | | | | | | 22,526 | | | | | | 24,932 | | | | | | 25,878 | | |
Interest
|
| | | | 1,513 | | | | | | 2,288 | | | | | | 4,341 | | | | | | 3,875 | | | | | | 3,458 | | |
| | | | | 897,716 | | | | | | 848,469 | | | | | | 1,823,041 | | | | | | 1,835,143 | | | | | | 1,880,657 | | |
Income before taxes and noncontrolling
interests |
| | | | 58,289 | | | | | | 22,126 | | | | | | 116,967 | | | | | | 72,529 | | | | | | 75,067 | | |
Income tax expense
|
| | | | (13,235) | | | | | | (4,585) | | | | | | (26,695) | | | | | | (13,507) | | | | | | (14,921) | | |
Net Income
|
| | | | 45,054 | | | | | | 17,541 | | | | | | 90,272 | | | | | | 59,022 | | | | | | 60,146 | | |
Less net income attributable to noncontrolling interests
|
| | | | 5,731 | | | | | | 5,001 | | | | | | 11,657 | | | | | | 11,499 | | | | | | 11,487 | | |
Net income attributable to Stewart
|
| | |
|
39,323
|
| | | |
|
12,540
|
| | | |
|
78,615
|
| | | |
|
47,523
|
| | | |
|
48,659
|
| |
Net earnings per diluted share attributable to Stewart
|
| | | | 1.66 | | | | | | 0.53 | | | | | | 3.31 | | | | | | 2.01 | | | | | | 2.06 | | |
Diluted average shares outstanding
|
| | | | 23,757 | | | | | | 23,750 | | | | | | 23,753 | | | | | | 23,685 | | | | | | 23,597 | | |
| | |
For the
Six Months Ended June 30, |
| |
For the Years
Ended December 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(In millions, except per share data)
|
| |||||||||||||||||||||||||||
Other Financial Data: | | | | | | | |||||||||||||||||||||||||
Adjusted revenues(1)
|
| | | | 962.0 | | | | | | 866.8 | | | | | | 1,897.2 | | | | | | 1,907.6 | | | | | | 1,953.5 | | |
Adjusted net income attributable to Stewart(2)
|
| | | | 45.9 | | | | | | 15.0 | | | | | | 65.4 | | | | | | 59.6 | | | | | | 55.0 | | |
Adjusted net income per diluted Stewart share(2)
|
| | | | 1.93 | | | | | | 0.63 | | | | | | 2.75 | | | | | | 2.52 | | | | | | 2.33 | | |
| | |
For the
Six Months Ended June 30, |
| |
For the Years
Ended December 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(In millions)
|
| |||||||||||||||||||||||||||
Total revenues
|
| | | | 956.0 | | | | | | 870.6 | | | | | | 1,940.0 | | | | | | 1,907.7 | | | | | | 1,955.7 | | |
Net realized and unrealized (gains) losses(a)
|
| | | | 6.0 | | | | | | (3.8) | | | | | | (42.8) | | | | | | (0.1) | | | | | | (2.2) | | |
Adjusted revenues
|
| | | | 962.0 | | | | | | 866.8 | | | | | | 1,897.2 | | | | | | 1,907.6 | | | | | | 1,953.5 | | |
| | |
For the
Six Months Ended June 30, |
| |
For the Years
Ended December 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(In millions, except per share data)
|
| |||||||||||||||||||||||||||
Net income attributable to Stewart
|
| | | | 39.3 | | | | | | 12.5 | | | | | | 78.6 | | | | | | 47.5 | | | | | | 48.7 | | |
Net income per diluted Stewart share
|
| | | | 1.66 | | | | | | 0.53 | | | | | | 3.31 | | | | | | 2.01 | | | | | | 2.06 | | |
Non-GAAP pretax adjustments:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized (gains) losses(a)
|
| | | | 6.0 | | | | | | (3.8) | | | | | | (42.8) | | | | | | (0.1) | | | | | | (2.2) | | |
Cost initiatives severance expenses
|
| | | | 2.8 | | | | | | — | | | | | | 6.5 | | | | | | — | | | | | | — | | |
FNF merger / strategic alternatives expenses
|
| | | | — | | | | | | 5.7 | | | | | | 6.8 | | | | | | 12.6 | | | | | | 2.9 | | |
Acquisition integration expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.4 | | |
Executive severance expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1.0 | | | | | | 1.7 | | |
Large escrow losses
|
| | | | — | | | | | | — | | | | | | 1.7 | | | | | | — | | | | | | — | | |
Office closure costs
|
| | | | — | | | | | | — | | | | | | 6.6 | | | | | | 0.8 | | | | | | 3.2 | | |
Executive insurance policy settlement
|
| | | | — | | | | | | — | | | | | | 2.2 | | | | | | — | | | | | | — | | |
Litigation expense accruals
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1.2 | | | | | | 0.3 | | |
Other non-operating charges
|
| | | | — | | | | | | 1.5 | | | | | | 2.1 | | | | | | — | | | | | | — | | |
Net tax effects of non-GAAP adjustments
|
| | | | (2.2) | | | | | | (0.9) | | | | | | 3.7 | | | | | | (3.4) | | | | | | (2.0) | | |
Non-GAAP adjustments, after taxes
|
| | | | 6.6 | | | | | | 2.5 | | | | | | (13.2) | | | | | | 12.1 | | | | | | 6.3 | | |
Adjusted net income attributable to Stewart
|
| | | | 45.9 | | | | | | 15.0 | | | | | | 65.4 | | | | | | 59.6 | | | | | | 55.0 | | |
Diluted average shares outstanding
|
| | | | 23.8 | | | | | | 23.8 | | | | | | 23.8 | | | | | | 23.7 | | | | | | 23.6 | | |
Adjusted net income per diluted Stewart share
|
| | | | 1.93 | | | | | | 0.63 | | | | | | 2.75 | | | | | | 2.52 | | | | | | 2.33 | | |
| | |
June 30, 2020
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(unaudited)
(in thousands, except share and per share data) |
| |||||||||
Cash, cash equivalents
|
| | | $ | 310,806 | | | | | $ | 405,557 | | |
Notes payable
|
| | | $ | 101,702 | | | | | $ | 101,702 | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock ($1 par value) per share and additional paid-in capital, 51,500,000 shares authorized, 23,699,228 shares issued and outstanding, actual, 51,500,000 shares authorized, 26,330,828 shares issued and outstanding, as adjusted
|
| | | | 190,260 | | | | | | 290,261 | | |
Retained earnings
|
| | | | 589,424 | | | | | | 589,424 | | |
Accumulated other comprehensive income (loss): | | | | | | | | | | | | | |
Net unrealized gains on debt securities investments
|
| | | | (20,275) | | | | | | (20,275) | | |
Foreign currency translation adjustments
|
| | | | 24,362 | | | | | | 24,362 | | |
Treasury stock – 352,161 common shares, at cost
|
| | | | (2,666) | | | | | | (2,666) | | |
Stockholders’ equity attributable to Stewart
|
| | | | 781,105 | | | | | | 881,106 | | |
Noncontrolling interests
|
| | | | 6,227 | | | | | | 6,227 | | |
Total stockholders’ equity (23,699,228 shares, actual, 26,330,828 shares, as adjusted)
|
| | | $ | 787,332 | | | | | $ | 887,333 | | |
Total capitalization
|
| | | $ | 889,034 | | | | | $ | 989,035 | | |
Name
|
| |
Number of Shares
|
| |||
Goldman Sachs & Co. LLC
|
| | | | 2,105,280 | | |
Dowling & Partners Securities, LLC
|
| | | | 175,440 | | |
Keefe, Bruyette & Woods, Inc.
|
| | | | 175,440 | | |
Stephens Inc.
|
| | | | 175,440 | | |
Total
|
| | | | 2,631,600 | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per Share
|
| |
No Exercise
|
| |
Full Exercise
|
| |||||||||
Public offering price
|
| | | $ | 38.000 | | | | | $ | 100,000,800.00 | | | | | $ | 115,000,920.00 | | |
Underwriting discounts and commissions
|
| | | $ | 1.805 | | | | | $ | 4,750,038.00 | | | | | $ | 5,462,543.70 | | |
Proceeds, before expenses, to us
|
| | | $ | 36.195 | | | | | $ | 95,250,762.00 | | | | | $ | 109,538,376.30 | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 12 | | | |
| | | | 13 | | | |
| | | | 13 | | |
|
Dowling & Partners Securities, LLC
|
| |
Keefe, Bruyette & Woods
A Stifel Company
|
| |
Stephens Inc.
|
|
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