Capital Title Group Reports Revenue of $79.1 Million in Third Quarter and $210.2 Million for Nine-Months
|October 27, 2004|
SCOTTSDALE, Ariz., -- Capital Title Group, Inc. (Nasdaq: CTGI) -- listed number 21 in FORTUNE'S 100 Fastest Growing Companies in America -- is a national provider of transaction services to the real estate and mortgage lending industries providing services as a title agency, title insurance underwriter and source for real estate-related services. The company today reported financial results for the third quarter and nine months ended September 30, 2004.
Revenue for the third quarter was $79.1 million, up 8% from the $73.5 million reported in the same quarter last year. In the first nine-months of 2004, revenue was $210.2 million, up 6% over the same comparable nine-month period in the prior year when revenue was $198.3 million. Revenue growth experienced in the third quarter and present in the nine-month results is reflective of one of the expected benefits derived from the company's planned growth through acquisitions that have provided revenue diversification in the area of bundled services, which provide one-stop shopping for title, appraisal, flood, credit and closing services.
Earnings available for common shares was $5.3 million or $.23 per diluted share for the three-month period ended September 30, 2004 compared to $5.4 million or $.27 for the same quarter in the prior year. Earnings available for common shares was $10.7 million or $.49 per diluted share for the nine-month period ended September 30, 2004.
Nationally the real estate industry continues to be one of the Nations strongest economic factors despite a softening in demand and the increase in mortgage rates from the historic lows in 2003, both factors in the decline of the refinance market. The decrease in refinance activity is evident in the company's lower open and closed order count reported in the third quarter and nine-month results, while the improvement in average revenue per closed order reflects an increase in business mix in favor of residential resale transactions at typically higher margins.
"We are pleased with the overall increase in revenue resulting from our evolution to a national family of diversified companies. As anticipated, order volumes were down in our core title and escrow services segment from the prior year, but opened orders have been relatively stable over the past several months and we are pleased with recent declines in mortgage interest rates. We continue to stay focused on controlling costs, increasing efficiencies and internal growth," stated Donald R. Head, chairman, president and chief executive officer of Capital Title Group. "Although we issued additional shares of common stock in a private placement earlier this year, we remain unchanged in our guidance that net income attributable to common shares for the full year 2004 will be in the range of $.60 to $.65 per diluted common share."
Source: Capital Title Group, Inc.