Capital Title Group Delivers Strong Operating Results for Second Quarter
|July 27, 2004|
SCOTTSDALE, Ariz., Capital Title Group, Inc. (Nasdaq: CTGI) reported revenue for the second quarter ended June 30, 2004 was $79.5 million up 16% over revenue of $68.3 million for the same period in 2003. For the six- month period ended June 30, 2004, revenue increased to $131.1 million, up 5% over the same period ended June 30, 2003 when revenue was $124.8 million. The increase in revenue is primarily attributed to the additional operations obtained from the strategic acquisition of Nationwide Appraisal Services in May 2004 and a continued favorable real estate environment where the company experienced a shift toward more residential resale orders that typically result in higher revenue per order than refinance orders.
Net income available for common shares was $5.2 million or $.23 per diluted share for the three-month period ended June 30, 2004 and $5.4 million or $.26 per diluted share for the six-month period ended June 30, 2004.
"We are very pleased with our performance for the second quarter of 2004. The quarter was particularly rewarding as the refinance market was substantially below the level for the same period in 2003. However, we benefited from a good overall real estate market and the strength in our core market of resale transactions. The 16% increase in revenue we posted reflects the underlying strategic directions we are taking as a national company," stated Donald R. Head, chairman, president and chief executive officer of Capital Title Group. "Our management teams have factored into account the interest rate environment for the next two quarters and will monitor staffing requirements associated with our volume of business. We anticipate the integration of our recent acquisitions to bode well for operating results for the balance of the year. Our management team and employees are committed to increasing shareholder value by building a profitable national company."
Continuing Head stated, "We have successfully integrated the operations of Nationwide Appraisal Services, and with that integration incurred costs we do not anticipate will reoccur, thus we look for Nationwide's business to provide us with increased margins as those operations mature."
Source: Capital Title Group, Inc.