LandAmerica Announces First Quarter Results
|April 28, 2005|
RICHMOND, Va., /PRNewswire-FirstCall/ -- LandAmerica Financial Group, Inc. (NYSE: LFG) reported operating results for the first quarter ended March 31, 2005.
|First Quarter 2005||First Quarter 2004|
|Operating revenue||$814.7 Million||$759.9 Million|
|Net income||$30.3 Million||$20.9 Million|
|Net income per diluted share||$1.68||$1.11|
Title Insurance -- -- Operating revenue from direct title operations increased $39.2 million, or 14%, in first quarter 2005 over first quarter
2004. The increase in first quarter 2005 was primarily the result of acquisitions made in 2004 and an increase in the revenue per order. These
increases were offset in part by a decrease in the number of title policies issued by the Company's direct title operations. During first quarter 2005, the Company continued to experience strong commercial and buy/sell activity, which tends to have higher revenue per order, and reduced refinance activity, which tends to have lower revenue per order. Closed orders for the Company's direct title operations were 195,100, with an average fee of $1,656 per closed order, during first quarter 2005 and 201,900, with an average fee of $1,407 per closed order, during first quarter 2004. Operating revenue from agency title operations decreased $19.4 million, or 5%, in first quarter 2005 from first quarter 2004. This decrease was primarily due to acquisitions of title agencies reflected as direct revenue in first quarter 2005 and reduced levels of refinancing activity. Pretax earnings for the Title Insurance segment were $45.2 million for first quarter 2005 compared to $46.8 million for first quarter 2004. The claims provision in the Title Insurance segment increased to 6.4% of operating revenues in first quarter 2005 from 5.5% in first quarter 2004 due primarily from a large claim of approximately $7.4 million. The remaining pretax expenses decreased to 89.2% of operating revenues in the first quarter of 2005 from 89.8% in the first quarter of 2004 due primarily to cost reduction initiatives partially offset by the increase in non-cash amortization expenses.
Lender Services -- Operating revenue in the Lender Services segment increased $23.4 million, or 58%, in first quarter 2005 over first quarter 2004. During first quarter 2005, Lender Services recognized approximately $25.8 million of deferred revenue resulting from the cancellation of tax certification servicing contracts for two customers of the Company's tax and flood business. These cancellations eliminated the remaining obligation for life of loan servicing and therefore the deferred revenue associated with these contracts was recognized into revenue during first quarter 2005. Additionally, revenue from the remaining businesses in this segment increased $4.0 million in first quarter 2005 over first quarter 2004 due primarily to acquisitions made in fourth quarter 2004.
Financial Services -- The Financial Services segment had pretax earnings of $2.9 million in first quarter 2005 compared to $2.2 million in first quarter 2004. This increase was due to growth of the loan and investment portfolio of 51%, which exceeded the increase in its interest bearing liabilities and resulted in higher operating income.
Source: LandAmerica Financial Group, Inc.