Capital Title Group Reports a Sharp Increase in Operating Results for the 1st Quarter 2005
April 26, 2005
Earnings Rose 620% and Revenue Advances 59% in 2005 Compared to 2004
SCOTTSDALE, Ariz.-- Capital Title Group Inc. (Nasdaq: CTGI) -- listed No. 21 in FORTUNE'S 100 Fastest Growing Companies in America and a national provider of title, appraisal and other transaction services to the real estate and mortgage lending industries -- today reported results for the first quarter ended March 31, 2005, that include an increase of 620% in earnings attributable to common shares (despite a one-time, pre-tax charge of $0.7 million taken during the quarter) and an increase in revenue of 59% for the three-month period. These increases resulted from acquisitions completed subsequent to the first quarter of 2004, along with revenue and earnings increases from existing operations.
During the first quarter ended March 31, 2005, earnings were $.07 per diluted share compared to the same period in the prior year when earnings per diluted share were $.01. Earnings for the three-month period ended March 31, 2005, were $1.8 million, versus $0.2 million in the three-month period ended March 31, 2004. Earnings for the three-month period ended March 31, 2005, included a one-time, pre-tax charge of $0.7 million related to a payment to the former shareholders of Nationwide Appraisal to obtain a tax election, which should result in lower taxes in future years by allowing a tax deduction for the amortization of goodwill. Without the one-time charge, earnings in the first quarter 2005 would have been $.09 per diluted share. Revenue for the three-month period ended March 31, 2005, increased 59% to $82.1 million compared to $51.5 million in the first quarter period 2004.
"We had a great first quarter and I am pleased to report the results to our shareholders. We reported a higher closed order count in the first quarter 2005, when compared to 2004, while activity in the refinance market has declined. We reported an increase in the average revenue per closed order, pointing to a positive trend in the mix of our business to a greater percent of higher margin residential resale transactions. Revenue increases also benefited from 2004 acquisitions completed to intensify our bundled settlement services on a national basis," stated Donald R. Head, chairman, president and chief executive officer. "We maintained a disciplined focus on expenses that decreased as a percent of revenue in the first quarter and without the one-time charge to earnings, we would have reported $.09 per diluted share.
"Generally the first quarter is the slowest period in our industry with activity increasing in the second and third quarters. Our strong first quarter bodes well for our second quarter operating results. We remain focused on overall growth from the diversified revenue sources we established during 2004," Head added.
Source: Capital Title Group Inc.