Stewart Reports Third Quarter 2024 Results
Stewart Information Services (NYSE: STC) reported strong third quarter 2024 results with total revenues of $667.9 million, up from $601.7 million in Q3 2023. Net income more than doubled to $30.1 million ($1.07 per diluted share) compared to $14.0 million ($0.51 per diluted share) in the prior year quarter. The title segment saw a 6% increase in operating revenues, driven by higher domestic commercial and agency title operations. The real estate solutions segment showed significant growth with a 41% revenue increase. Despite challenging residential market conditions, the company demonstrated improved performance across multiple business lines.
Stewart Information Services (NYSE: STC) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi totali di 667,9 milioni di dollari, in aumento rispetto a 601,7 milioni di dollari nel terzo trimestre del 2023. L'utile netto è più che raddoppiato, raggiungendo 30,1 milioni di dollari (1,07 dollari per azione diluita), rispetto ai 14,0 milioni di dollari (0,51 dollari per azione diluita) dello stesso trimestre dell'anno precedente. Il segmento dei titoli ha registrato un aumento del 6% dei ricavi operativi, grazie a un incremento delle operazioni commerciali e agenziali domestiche. Il segmento delle soluzioni immobiliari ha mostrato una crescita significativa con un aumento dei ricavi del 41%. Nonostante le condizioni di mercato residenziale sfidanti, l'azienda ha dimostrato un miglioramento delle prestazioni in diversi settori.
Stewart Information Services (NYSE: STC) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos totales de 667,9 millones de dólares, un aumento respecto a 601,7 millones de dólares en el tercer trimestre de 2023. El ingreso neto se más que duplicó, alcanzando 30,1 millones de dólares (1,07 dólares por acción diluida) en comparación con 14,0 millones de dólares (0,51 dólares por acción diluida) en el mismo trimestre del año anterior. El segmento de títulos vio un aumento del 6% en los ingresos operativos, impulsado por un mayor volumen de operaciones comerciales y de agencias. El segmento de soluciones inmobiliarias mostró un crecimiento significativo con un aumento del 41% en los ingresos. A pesar de las condiciones desafiantes del mercado residencial, la compañía demostró un rendimiento mejorado en múltiples líneas de negocio.
스튜어트 정보 서비스 (NYSE: STC)는 2024년 3분기 강력한 실적을 발표했으며, 총 수익은 6억 6천 790만 달러로, 2023년 3분기의 6억 1천 170만 달러에서 증가했습니다. 순이익은 3천만 달러 (희석 주당 1.07 달러)로 두 배 이상 증가했으며, 전년도 같은 분기의 1천 400만 달러 (희석 주당 0.51 달러)와 비교됩니다. 타이틀 부문은 국내 상업 및 에이전시 타이틀 운영 증가에 힘입어 운영 수익이 6% 증가했습니다. 부동산 솔루션 부문은 41%의 수익 증가로 상당한 성장을 보여주었습니다. 어려운 주거 시장 환경에도 불구하고, 회사는 여러 비즈니스 라인에서 향상된 성과를 보여주었습니다.
Stewart Information Services (NYSE: STC) a annoncé des résultats solides pour le troisième trimestre 2024, avec des revenus totaux de 667,9 millions de dollars, en hausse par rapport à 601,7 millions de dollars au troisième trimestre 2023. Le bénéfice net a plus que doublé, atteignant 30,1 millions de dollars (1,07 dollar par action diluée) contre 14,0 millions de dollars (0,51 dollar par action diluée) au même trimestre de l'année précédente. Le segment des titres a connu une augmentation de 6 % des revenus opérationnels, soutenue par des opérations commerciales et d'agence nationales plus élevées. Le segment des solutions immobilières a affiché une croissance significative avec une augmentation de 41 % des revenus. En dépit des conditions difficiles du marché résidentiel, l'entreprise a démontré une performance améliorée à travers plusieurs lignes d'affaires.
Stewart Information Services (NYSE: STC) meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Gesamtumsatz von 667,9 Millionen Dollar, ein Anstieg von 601,7 Millionen Dollar im dritten Quartal 2023. Der Nettogewinn hat sich mehr als verdoppelt auf 30,1 Millionen Dollar (1,07 Dollar pro verwässerter Aktie) im Vergleich zu 14,0 Millionen Dollar (0,51 Dollar pro verwässerter Aktie) im Vorjahresquartal. Der Titelsegment verzeichnete einen Anstieg der Betriebseinnahmen um 6%, unterstützt durch höhere inländische kommerzielle und Agenturtiteloperationen. Der Immobilienlösungsbereich zeigte ein signifikantes Wachstum mit einem Umsatzanstieg von 41%. Trotz herausfordernder Bedingungen im Wohnungsmarkt zeigte das Unternehmen in mehreren Geschäftsfeldern eine verbesserte Leistung.
- Total revenues increased 11% YoY to $667.9 million
- Net income more than doubled to $30.1 million from $14.0 million YoY
- Domestic commercial revenues grew 30% with higher average transaction size
- Real estate solutions segment revenue increased 41% YoY
- Title segment operating revenues improved 6%
- Employee costs as percentage of revenue improved to 29.8% from 30.7%
- Residential purchase market conditions remain difficult
- International commercial revenues declined 22%
- Other operating expenses increased to 24.0% of revenue from 22.1% YoY
Insights
Stewart Information Services delivered strong Q3 2024 results with significant improvements across key metrics. Total revenues increased
The real estate solutions segment showed remarkable growth with a
The strong cash flow generation of
- Total revenues of
$667.9 million $663.2 million $601.7 million $603.7 million - Net income of
$30.1 million $33.1 million $14.0 million $23.9 million - Diluted earnings per share of
$1.07 $1.17 $0.51 $0.86
Third quarter 2024 results included
"We are proud of our third quarter results as they reflect continued progress on our journey. Strong topline performance in several lines of business resulted in improved third quarter results when compared to the same quarter last year, even as residential purchase market conditions remain difficult given macro-economic impacts," commented Fred Eppinger, chief executive officer. "We remain focused on investing in ourselves to better the company and our customers and remain dedicated to prioritizing our pursuit of growth and margin improvement across all lines of business."
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 September 30, | Nine Months Ended September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Total revenues | 667.9 | 601.7 | 1,824.5 | 1,675.2 | |
Pretax income before noncontrolling interests | 42.8 | 27.1 | 78.9 | 42.1 | |
Income tax expense | (9.1) | (9.1) | (18.0) | (9.6) | |
Net income attributable to noncontrolling interests | (3.6) | (3.9) | (10.4) | (10.9) | |
Net income attributable to Stewart | 30.1 | 14.0 | 50.6 | 21.6 | |
Non-GAAP adjustments, after taxes* | 3.0 | 9.9 | 12.3 | 27.7 | |
Adjusted net income attributable to Stewart* | 33.1 | 23.9 | 62.8 | 49.4 | |
Pretax margin | 6.4 % | 4.5 % | 4.3 % | 2.5 % | |
Adjusted pretax margin* | 7.1 % | 6.6 % | 5.3 % | 4.7 % | |
Net income per diluted Stewart share | 1.07 | 0.51 | 1.80 | 0.79 | |
Adjusted net income per diluted Stewart share* | 1.17 | 0.86 | 2.24 | 1.80 | |
* 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 September 30, | ||||||
2024 | 2023 | % Change | ||||
Operating revenues | 553.3 | 522.1 | 6 % | |||
Investment income | 13.6 | 13.4 | 2 % | |||
Net realized and unrealized gains (losses) | 4.8 | (1.8) | 361 % | |||
Pretax income | 45.0 | 35.4 | 27 % | |||
Non-GAAP adjustments to pretax income* | (1.6) | 6.6 | ||||
Adjusted pretax income* | 43.4 | 42.0 | 3 % | |||
Pretax margin | 7.9 % | 6.6 % | ||||
Adjusted pretax margin* | 7.7 % | 7.8 % | ||||
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments. | ||||||
Title segment operating revenues in the third quarter 2024 increased
Total title segment employee costs and other operating expenses increased by
In addition to the net realized and unrealized losses and gains presented above, non-GAAP adjustments to the title segment's pretax income for the third quarters 2024 and 2023 included
Direct title revenues information is presented below (dollars in millions):
Quarter Ended September 30, | ||||
2024 | 2023 | % Change | ||
Non-commercial: | ||||
Domestic | 168.2 | 167.6 | 0 % | |
International | 29.0 | 29.1 | 0 % | |
197.2 | 196.7 | 0 % | ||
Commercial: | ||||
Domestic | 67.4 | 51.9 | 30 % | |
International | 6.1 | 7.8 | (22 %) | |
73.5 | 59.7 | 23 % | ||
Total direct title revenues | 270.7 | 256.4 | 6 % | |
Total non-commercial domestic revenues in the third quarter 2024 were comparable to the prior year quarter, primarily due to the higher average fee per file offsetting the slightly lower total non-commercial domestic transactions in the third quarter 2024. Domestic commercial revenues in the third quarter 2024 increased
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 September 30, | ||||
2024 | 2023 | % Change | ||
Operating revenues | 96.3 | 68.2 | 41 % | |
Pretax income | 7.4 | 2.6 | 181 % | |
Non-GAAP adjustments to pretax income* | 5.5 | 6.3 | ||
Adjusted pretax income* | 12.9 | 8.9 | 45 % | |
Pretax margin | 7.7 % | 3.8 % | ||
Adjusted pretax margin* | 13.4 % | 13.0 % | ||
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments. | ||||
Segment operating revenues in the third quarter 2024 increased
Corporate and Other Segment
The segment's results were primarily driven by net expenses attributable to corporate operations, which decreased to
Expenses
Consolidated employee costs in the third quarter 2024 increased
Consolidated other operating expenses in the third quarter 2024 increased
Other
Net cash provided by operations in the third quarter 2024 was
Third quarter Earnings Call
Stewart will hold a conference call to discuss the third quarter 2024 earnings at 8:30 a.m. Eastern Time on Thursday, October 24, 2024. To participate, dial (800) 343-5172 (
About Stewart
Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ 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 September 30, | Nine Months Ended | ||||
2024 | 2023 | 2024 | 2023 | ||
Revenues: | |||||
Title revenues: | |||||
Direct operations | 270,706 | 256,377 | 736,774 | 722,242 | |
Agency operations | 282,549 | 265,700 | 764,081 | 723,476 | |
Real estate solutions | 96,346 | 68,190 | 271,561 | 202,169 | |
Total operating revenues | 649,601 | 590,267 | 1,772,416 | 1,647,887 | |
Investment income | 13,626 | 13,393 | 40,833 | 32,114 | |
Net realized and unrealized gains (losses) | 4,714 | (1,946) | 11,238 | (4,829) | |
667,941 | 601,714 | 1,824,487 | 1,675,172 | ||
Expenses: | |||||
Amounts retained by agencies | 233,980 | 218,983 | 634,083 | 596,498 | |
Employee costs | 193,862 | 181,493 | 545,987 | 534,710 | |
Other operating expenses | 155,646 | 130,455 | 444,890 | 380,530 | |
Title losses and related claims | 21,282 | 22,251 | 59,754 | 59,727 | |
Depreciation and amortization | 15,480 | 16,414 | 46,062 | 46,848 | |
Interest | 4,899 | 5,054 | 14,768 | 14,777 | |
625,149 | 574,650 | 1,745,544 | 1,633,090 | ||
Income before taxes and noncontrolling interests | 42,792 | 27,064 | 78,943 | 42,082 | |
Income tax expense | (9,123) | (9,134) | (17,999) | (9,588) | |
Net income | 33,669 | 17,930 | 60,944 | 32,494 | |
Less net income attributable to noncontrolling interests | 3,573 | 3,931 | 10,375 | 10,870 | |
Net income attributable to Stewart | 30,096 | 13,999 | 50,569 | 21,624 | |
Net earnings per diluted share attributable to Stewart | 1.07 | 0.51 | 1.80 | 0.79 | |
Diluted average shares outstanding (000) | 28,200 | 27,650 | 28,069 | 27,445 | |
Selected financial information: | |||||
Net cash provided by operations | 76,121 | 59,533 | 67,656 | 43,578 | |
Other comprehensive income (loss) | 18,259 | (13,295) | 10,911 | (7,278) | |
Third Quarter Domestic Order Counts: | ||||||||||||
Opened Orders 2024: | July | August | Sept | Total | Closed Orders 2024: | July | August | Sept | Total | |||
Commercial | 1,111 | 1,273 | 1,281 | 3,665 | Commercial | 1,140 | 1,318 | 1,336 | 3,794 | |||
Purchase | 17,796 | 16,403 | 15,259 | 49,458 | Purchase | 12,382 | 12,217 | 10,991 | 35,590 | |||
Refinancing | 6,017 | 7,077 | 7,826 | 20,920 | Refinancing | 3,617 | 4,016 | 4,133 | 11,766 | |||
Other | 3,621 | 3,129 | 6,671 | 13,421 | Other | 4,304 | 2,142 | 1,779 | 8,225 | |||
Total | 28,545 | 27,882 | 31,037 | 87,464 | Total | 21,443 | 19,693 | 18,239 | 59,375 | |||
Opened Orders 2023: | July | August | Sept | Total | Closed Orders 2023: | July | August | Sept | Total | |||
Commercial | 913 | 1,208 | 1,199 | 3,320 | Commercial | 1,036 | 1,320 | 1,305 | 3,661 | |||
Purchase | 17,446 | 19,674 | 16,386 | 53,506 | Purchase | 13,006 | 14,200 | 12,697 | 39,903 | |||
Refinancing | 5,077 | 5,807 | 5,148 | 16,032 | Refinancing | 3,367 | 3,778 | 3,252 | 10,397 | |||
Other | 2,976 | 3,161 | 2,493 | 8,630 | Other | 2,891 | 1,187 | 2,269 | 6,347 | |||
Total | 26,191 | 29,850 | 25,226 | 81,267 | Total | 20,300 | 20,485 | 19,523 | 60,308 | |||
STEWART INFORMATION SERVICES CORPORATION CONDENSED BALANCE SHEETS (In thousands of dollars) | ||
September 30, |
December 31, | |
Assets: | ||
Cash and cash equivalents | 183,772 | 233,365 |
Short-term investments | 44,911 | 39,023 |
Investments in debt and equity securities, at fair value | 688,661 | 679,936 |
Receivables – premiums from agencies | 40,730 | 38,676 |
Receivables – other | 120,457 | 93,811 |
Allowance for uncollectible amounts | (8,851) | (7,583) |
Property and equipment, net | 90,036 | 82,335 |
Operating lease assets, net | 105,510 | 115,879 |
Title plants | 76,028 | 73,359 |
Goodwill | 1,080,681 | 1,072,129 |
Intangible assets, net of amortization | 175,166 | 193,196 |
Deferred tax assets | 3,749 | 3,776 |
Other assets | 128,720 | 84,959 |
2,729,570 | 2,702,861 | |
Liabilities: | ||
Notes payable | 445,704 | 445,290 |
Accounts payable and accrued liabilities | 196,670 | 190,054 |
Operating lease liabilities | 122,788 | 135,654 |
Estimated title losses | 517,592 | 528,269 |
Deferred tax liabilities | 32,481 | 25,045 |
1,315,235 | 1,324,312 | |
Stockholders' equity: | ||
Common Stock and additional paid-in capital | 353,172 | 338,451 |
Retained earnings | 1,080,879 | 1,070,841 |
Accumulated other comprehensive loss | (24,304) | (35,215) |
Treasury stock | (2,666) | (2,666) |
Stockholders' equity attributable to Stewart | 1,407,081 | 1,371,411 |
Noncontrolling interests | 7,254 | 7,138 |
Total stockholders' equity | 1,414,335 | 1,378,549 |
2,729,570 | 2,702,861 | |
Number of shares outstanding (000) | 27,714 | 27,370 |
Book value per share | 50.77 | 50.11 |
| STEWART INFORMATION SERVICES CORPORATION SEGMENT INFORMATION (In thousands of dollars)
| |||||||||
Quarter Ended: | September 30, 2024 | September 30, 2023 | |||||||
Title | Real | Corporate | Total | Title | Real | Corporate | Total | ||
Revenues: | |||||||||
Operating revenues | 553,255 | 96,346 | - | 649,601 | 522,077 | 68,190 | - | 590,267 | |
Investment income | 13,588 | 38 | - | 13,626 | 13,368 | 25 | - | 13,393 | |
Net realized and unrealized gains (losses) | 4,757 | - | (43) | 4,714 | (1,821) | - | (125) | (1,946) | |
571,600 | 96,384 | (43) | 667,941 | 533,624 | 68,215 | (125) | 601,714 | ||
Expenses: | |||||||||
Amounts retained by agencies | 233,980 | - | - | 233,980 | 218,983 | - | - | 218,983 | |
Employee costs | 176,225 | 14,104 | 3,533 | 193,862 | 165,829 | 12,361 | 3,303 | 181,493 | |
Other operating expenses | 85,853 | 68,634 | 1,159 | 155,646 | 81,625 | 46,217 | 2,613 | 130,455 | |
Title losses and related claims | 21,282 | - | - | 21,282 | 22,251 | - | - | 22,251 | |
Depreciation and amortization | 8,860 | 6,264 | 356 | 15,480 | 9,196 | 6,820 | 398 | 16,414 | |
Interest | 406 | - | 4,493 | 4,899 | 355 | 191 | 4,508 | 5,054 | |
526,606 | 89,002 | 9,541 | 625,149 | 498,239 | 65,589 | 10,822 | 574,650 | ||
Income (loss) before taxes | 44,994 | 7,382 | (9,584) | 42,792 | 35,385 | 2,626 | (10,947) | 27,064 | |
Nine Months Ended: | September 30, 2024 | September 30, 2023 | |||||||
Title | Real | Corporate | Total | Title | Real | Corporate | Total | ||
Revenues: | |||||||||
Operating revenues | 1,500,855 | 271,561 | - | 1,772,416 | 1,445,718 | 202,169 | - | 1,647,887 | |
Investment income | 40,746 | 87 | - | 40,833 | 32,033 | 81 | - | 32,114 | |
Net realized and unrealized gains (losses) | 11,387 | - | (149) | 11,238 | (1,658) | - | (3,171) | (4,829) | |
1,552,988 | 271,648 | (149) | 1,824,487 | 1,476,093 | 202,250 | (3,171) | 1,675,172 | ||
Expenses: | |||||||||
Amounts retained by agencies | 634,083 | - | - | 634,083 | 596,498 | - | - | 596,498 | |
Employee costs | 495,943 | 39,904 | 10,140 | 545,987 | 485,690 | 37,333 | 11,687 | 534,710 | |
Other operating expenses | 247,371 | 193,703 | 3,816 | 444,890 | 236,752 | 138,052 | 5,726 | 380,530 | |
Title losses and related claims | 59,754 | - | - | 59,754 | 59,727 | - | - | 59,727 | |
Depreciation and amortization | 26,126 | 18,803 | 1,133 | 46,062 | 26,182 | 19,401 | 1,265 | 46,848 | |
Interest | 1,165 | 7 | 13,596 | 14,768 | 1,063 | 191 | 13,523 | 14,777 | |
1,464,442 | 252,417 | 28,685 | 1,745,544 | 1,405,912 | 194,977 | 32,201 | 1,633,090 | ||
Income (loss) before taxes | 88,546 | 19,231 | (28,834) | 78,943 | 70,181 | 7,273 | (35,372) | 42,082 | |
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, executive severance expenses, and nonrecurring 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 and nine months ended September 30, 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 September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||
Total revenues | 667.9 | 601.7 | 11 % | 1,824.5 | 1,675.2 | 9 % | |
Non-GAAP revenue adjustments: | |||||||
Net realized and unrealized (gains) losses | (4.7) | 1.9 | (11.2) | 4.8 | |||
Adjusted total revenues | 663.2 | 603.7 | 10 % | 1,813.2 | 1,680.0 | 8 % | |
Pretax income | 42.8 | 27.1 | 58 % | 78.9 | 42.1 | 88 % | |
Non-GAAP pretax adjustments: | |||||||
Net realized and unrealized (gains) losses | (4.7) | 1.9 | (11.2) | 4.8 | |||
Acquired intangible asset amortization | 8.3 | 9.6 | 25.1 | 27.3 | |||
Office closure costs | 0.3 | 1.4 | 2.0 | 1.4 | |||
Executive severance expenses | 0.1 | - | 0.7 | 1.7 | |||
State sales tax assessment expense | - | - | - | 1.2 | |||
Adjusted pretax income | 46.8 | 40.0 | 17 % | 95.5 | 78.6 | 22 % | |
GAAP pretax margin | 6.4 % | 4.5 % | 4.3 % | 2.5 % | |||
Adjusted pretax margin | 7.1 % | 6.6 % | 5.3 % | 4.7 % | |||
Net income attributable to Stewart | 30.1 | 14.0 | 115 % | 50.6 | 21.6 | 134 % | |
Non-GAAP pretax adjustments: | |||||||
Net realized and unrealized losses (gains) | (4.7) | 1.9 | (11.2) | 4.8 | |||
Acquired intangible asset amortization | 8.3 | 9.6 | 25.1 | 27.6 | |||
Office closure costs | 0.3 | 1.4 | 2.0 | 1.4 | |||
Executive severance expenses | 0.1 | - | 0.7 | 1.7 | |||
State sales tax assessment expense | - | - | - | 1.2 | |||
Net tax effects of non-GAAP adjustments | (1.0) | (3.1) | (4.3) | (8.8) | |||
Non-GAAP adjustments, after taxes | 3.0 | 9.9 | 12.3 | 27.7 | |||
Adjusted net income attributable to Stewart | 33.1 | 23.9 | 39 % | 62.8 | 49.4 | 27 % | |
Diluted average shares outstanding (000) | 28,200 | 27,650 | 28,069 | 27,445 | |||
GAAP net income per share | 1.07 | 0.51 | 1.80 | 0.79 | |||
Adjusted net income per share | 1.17 | 0.86 | 2.24 | 1.80 | |||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | % Chg | 2024 | 2023 | % Chg | ||
Title Segment:
| |||||||
Total revenues | 571.6 | 533.6 | 7 % | 1,553.0 | 1,476.1 | 5 % | |
Net realized and unrealized (gains) losses | (4.8) | 1.8 | (11.4) | 1.7 | |||
Adjusted total revenues | 566.8 | 535.4 | 6 % | 1,541.6 | 1,477.8 | 4 % | |
Pretax income | 45.0 | 35.4 | 27 % | 88.5 | 70.2 | 26 % | |
Non-GAAP revenue adjustments: | |||||||
Net realized and unrealized (gains) losses | (4.8) | 1.8 | (11.4) | 1.7 | |||
Acquired intangible asset amortization | 2.8 | 3.4 | 8.5 | 9.4 | |||
Office closure costs | 0.3 | 1.4 | 2.0 | 1.4 | |||
Severance expenses | 0.1 | - | 0.7 | 0.4 | |||
Adjusted pretax income | 43.4 | 42.0 | 3 % | 88.3 | 83.1 | 6 % | |
GAAP pretax margin | 7.9 % | 6.6 % | 5.7 % | 4.8 % | |||
Adjusted pretax margin | 7.7 % | 7.8 % | 5.7 % | 5.6 % | |||
Real Estate Solutions Segment:
| |||||||
Total revenues | 96.4 | 68.2 | 41 % | 271.6 | 202.3 | 34 % | |
Pretax income | 7.4 | 2.6 | 181 % | 19.2 | 7.3 | 164 % | |
Non-GAAP revenue adjustments: | |||||||
Acquired intangible asset amortization | 5.5 | 6.3 | 16.6 | 17.9 | |||
State sales tax assessment expense | - | - | - | 1.2 | |||
Adjusted pretax income | 12.9 | 8.9 | 45 % | 35.9 | 26.4 | 36 % | |
GAAP pretax margin | 7.7 % | 3.8 % | 7.1 % | 3.6 % | |||
Adjusted pretax margin | 13.4 % | 13.0 % | 13.2 % | 13.0 % | |||
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SOURCE Stewart Information Services Corporation
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