Capital Title Group Reports First Quarter Results
May 3, 2004
Capital Title Group, Inc. (Nasdaq: CTGI reported results for the first quarter ended March 31, 2004.
Revenue for the three month period was $51.5 million compared with $56.5 million in the first quarter period 2003. Net income available for common shares was $0.2 million or $0.01 per diluted share for the three month period compared to $3.0 million or $0.16 per diluted share in the same period of the prior year.
Capital Title's results for the three month period reflect the historical seasonal pattern of lower residential real estate activity in the fourth quarter of 2003 and the first quarter of 2004 coupled with a decline in the record pace of refinancings that occurred during 2003. As a result, opened orders decreased from approximately 130,000 in the third quarter of 2003 to 62,500 in the fourth quarter of 2003 resulting in lower revenue in the first quarter of 2004 due to a closing cycle of approximately 45 days from when an order is opened. Opened order counts increased significantly for the first quarter of 2004 to total 97,900.
"With the rebound in orders, revenue for March 2004 actually exceeded revenue for March 2003 by $2.4 million," stated Donald R. Head, chairman, president and chief executive officer. "However, March's upsurge was not sufficient to offset weaker results in January and February that reflected lower open order counts produced in the seasonally slower months at the end of 2003. "Typically, when we experience a reduction in order counts, we reduce staff levels accordingly," Head said. "With the continuation of an active housing market we anticipated an increase in open order counts in the spring, therefore we maintained a staff level adequate to service the anticipated increase in order counts. While this contributed to lower earnings in the first quarter, we felt it was important to maintain customer service levels, which is a cornerstone of our business model."
Concluding Head stated, "We anticipate strong improvement in our operating results for the balance of the year."
Sourec: Capital Title Group, Inc.