LandAmerica Announces Second Quarter Results
July 25, 2002
RICHMOND, Va., /PRNewswire-FirstCall/ -- LandAmerica Financial Group, Inc. (NYSE: LFG - News), reported earnings for the second quarter ended June 30, 2002 of $25.8 million, or $1.38 per diluted share, compared to $28.5 million, or $1.54 per diluted share in the comparable quarter of 2001. The second quarter results for 2002 included after-tax charges of $9.2 million, or $.49 per share, for exit and termination costs associated with the company's previously announced contribution of its residential appraisal operations into a joint venture with The First American Corporation (NYSE: FAF - News).
The results for the second quarter of 2002, reflecting the new accounting rules in effect for goodwill, included $123,000 of amortization of acquisition-related intangibles, compared to $2.1 million in the second quarter of 2001. The second quarter of 2002 included after-tax losses from the sale of investments of $125,000, or $.01 per diluted share, while the second quarter of 2001 included after-tax losses from the sale of investments of $235,000, or $.01 per diluted share.
Operating revenues, excluding investment income, for the second quarter of 2002, increased 11.6% to $604.0 million, compared to $541.1 million in the comparable quarter of 2001.
During the second quarter of 2002, new open order counts totaled 240,200 compared to 254,400 in the same quarter of 2001, when we were seeing the strong effects of the declining interest rate environment on refinancing transactions.
For the first half of 2002, net income was $43.2 million, compared to $35.2 million for the first half of 2001. The first half results for 2002 include after-tax charges of $11.3 million related to termination and restructuring charges associated with the residential appraisal operations. The results for the first half of 2002, reflecting the new accounting rules in effect for goodwill, included $245,000 of amortization of acquisition-related intangibles, compared to $4.9 million for the first half of 2001. The first half of 2002 included after-tax losses from the sale of investments of $14,000, which had no effect on earnings per share, compared to after-tax losses from the sale of investments of $497,000, or $.03 per diluted share, for the 2001 period.
Commenting on the company's performance, chairman and chief executive officer Charles H. Foster, Jr. said, "We are pleased with our second quarter results. Quarterly operating revenues topped the $600 million mark for the first time in the company's history. Excluding the exit and termination charges, our operating income of $35.0 million surpassed any other second quarter in the company's history by a significant margin.
"LandAmerica continues to benefit from a favorable environment for real estate-related products and services. The housing market remains robust and, with the recent decline in mortgage rates, refinancing activity is again increasing. Given these current market dynamics, we expect to finish the year with a solid performance."
Source: LandAmerica Financial Group, Inc.