Landamerica Reports Fourth Quarter & Year 2004 Results
|February 18, 2005|
Announces Quarterly Dividend
Richmond, Virginia - LandAmerica Financial Group, Inc. (NYSE: LFG) reported operating results for fourth quarter and fiscal year ended December 31, 2004.
Fourth Quarter 2004
Operating revenue $922.6 Million
Net income $30.4 Million
Net income per diluted share $1.70
Fourth Quarter 2003
Operating revenue $924.4 Million
Net income $24.7 Million
Net income per diluted share $1.32
Operating revenue $3,444.5 Million
Net income $ 146.3 Million
Net income per diluted share $8.01
Operating revenue $3,345.4 Million
Net income $192.1 Million
Net income per diluted share $10.31
“I am pleased that our fourth quarter 2004 net income was better than expected and significantly improved over fourth quarter 2003,” said President and Chief Executive Officer Theodore L. Chandler, Jr. “Our fourth quarter commercial revenue exceeded $200 million for the first time in any quarter in our history. Additionally, we gained advantages from higher interest rates that produced additional investment income. Our focus on cost structure combined with the strong performance of our acquisitions improved our operating margins in the title segment to 8.4 percent for fourth quarter 2004 compared to 7.0 percent for fourth quarter 2003.”
Chandler continued, “At the start of 2004, many predicted that the year would be much tougher than the record-breaking year before. Compared to 2003 levels, interest rates moved higher though still remained at historically low levels throughout the year. Refinance mortgage originations felt the impact of increased rates with 2004 volume declining 50% from 2003 levels. The buy/sell side of the business remained strong, as purchase mortgage origination volume and new and existing home sales all increased in 2004, and we saw an increase in commercial real estate activity.”
“Acquisitions are a core component of our growth strategy. We use strategic acquisitions to achieve greater penetration with all of our services, including traditional title and closing, and as a way to broaden our real estate transaction services offering,” Chandler stated. “During the fourth quarter 2004, we made acquisitions including LoanCare Servicing Center, the tenth largest mortgage subservicer in the United States, and 3 Arch Financial Services Corporation, which expanded our presence in default management services. We’ve invested over $500 million dollars in the last two years buying over 40 companies to make LandAmerica the largest company in the nation focused exclusively on a broad array of real estate transaction services.”
The board of directors has declared a quarterly dividend of $.15 per share payable on March 15, 2005, to shareholders of record on March 1, 2005.
Source: LandAmerica Financial Group, Inc.