Capital Title Group Reports Second Quarter Results
July 25, 2002
Adds Nine Branches in Second Quarter
PHOENIX, /PRNewswire-FirstCall/ -- Capital Title Group, Inc. (Nasdaq: CTGI - News) -- a leading regional provider of title insurance and real estate-related services, today reported results for the second quarter and six months ended June 30, 2002.
For the three month period ended June 30, 2002, revenue increased 17.7% to $20,678,610 compared to $17,568,380 for the same period in the prior year. The company reported income before taxes of $1,186,384 and net income after tax of $646,347 or $0.04 per diluted share. For the comparable period ended June 30, 2001, the company was not subject to income tax and therefore reported both before and after tax net income of $2,100,948 or $0.12 per diluted share. If income tax were applied to the 2001 period, after tax net income would have been $1,144,605 or $0.06 per diluted share.
Revenue for the six month period rose to $40,073,440, a 34.1% increase compared with $29,891,285 for the six months ended June 30, 2001. Income before taxes for the first six months of the year was $3,065,340 with after tax net income of $1,765,303 or $0.10 per diluted share compared to the same period in 2001 when the company was not subject to income tax and reported both before and after tax net income of $2,602,506 or $0.15 per diluted share. If income tax were applied to the 2001 period, after tax net income would have been $1,498,761 or $0.08 per diluted share.
"As indicated by the increase in reported revenue, we continued to make progress during the second quarter in our growth strategy through the opening of new branch locations and increases in market share in existing locations. Our revenue also improved with the asset purchase of five branch offices from BridgeSpan Title Company that immediately doubled the number of counties served by our northern California operations," stated Donald R. Head, chairman, president and chief executive officer of Capital Title Group. "At the same time, control of the five branch offices, purchased as a turnaround opportunity, was delayed by regulatory approval which denied us the ability to retain critical personnel and, as we were aware, business had deteriorated by the time we assumed ownership. Net income for the quarter was reduced by approximately $500,000, attributable to this asset purchase. In the long term the purchase that included ownership in title plants, places us in new markets that are fundamental to our future growth in the northern California market."
Head continued, "July opened order counts continue to trend upward given current market conditions. We remain pleased with the markets in which we operate and intend to continue expansion by capitalizing on available opportunities. We anxiously await regulatory approval on our recently announced merger with Nations Holding Group, which not only will expand our presence in the California market, it also adds a new revenue source by way of Nations' licensed title insurance company.
"It is our opinion mortgage rates will not increase dramatically through the end of the year, which will create a healthy market for home purchases and refinancing opportunities for the consumer. The title industry will benefit from this environment," Head concluded.
Headquartered in Phoenix, Arizona, Capital Title Group, Inc.