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Globe and Mail
5 days ago
- Business
- Globe and Mail
Investors Title Company Announces Second Quarter 2025 Results
Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2025. The Company reported net income of $12.3 million, or $6.48 per diluted share, compared to $8.9 million, or $4.70 per diluted share, for the prior year period. Revenues increased 12.6% to $73.6 million, compared to $65.4 million in the prior year period. Net premiums written and escrow and title-related fees increased by $4.0 million, primarily driven by higher real estate activity levels. Other revenue increased $2.7 million due to a gain on assets transferred to a joint venture. Non-title services revenue increased $1.2 million, largely attributable to increases in revenue from like-kind exchanges and management services. Net investment gains increased by $862 thousand due to the impact of changes in the estimated fair value of equity security investments. Operating expenses increased 6.9% to $57.9 million, compared to $54.1 million in the prior year period. The increase in operating expenses was largely driven by higher agent commissions and an increase in the provision for claims. The rise in agent commissions corresponds with the growth in agent business. The claims expense increased due to higher reserves on reported claims and a reduction in favorable loss development during the current period. Income before income taxes increased to $15.8 million for the current year quarter, versus $11.3 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $13.7 million for the current year quarter, versus $10.0 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure). For the six months ended June 30, 2025, net income increased $2.1 million to $15.4 million, or $8.16 per diluted share, versus $13.4 million, or $7.10 per diluted share, for the prior year period. Revenues increased 9.6% to $130.2 million, compared with $118.8 million for the prior year period. Operating expenses increased 8.4% to $110.4 million, compared to $101.8 million for the prior year period. Income before income taxes increased to $19.9 million for the current year, versus $17.1 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $18.9 million for the current year period, versus $13.4 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure). Overall results for the year-to-date period have been shaped predominantly by the same factors that affected the second quarter. The one notable exception was lower net investment gains for the first six months of 2025, compared to the same prior year period, which were driven by negative changes in the estimated fair value of equity security investments and a decrease in realized gains from the sale of investment securities. Chairman J. Allen Fine commented, 'We are pleased to report our strongest quarterly performance in over three years, reflecting solid execution and broad-based revenue growth. The increase in profitability was driven largely by growth in title insurance revenues, aided by increases in our non-title business segments, particularly our like-kind exchange subsidiary. "Despite ongoing market headwinds, incoming order volumes in the second quarter exceeded those of the same period last year. As a result, we are entering the third quarter with a stronger pipeline of open orders compared to a year ago. We believe this positions us well for continued momentum in the quarters ahead.' Investors Title Company's subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services and services in connection with tax-deferred exchanges of like-kind property. Cautionary Statements Regarding Forward-Looking Statements Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as 'plan,' expect,' 'aim,' 'believe,' 'project,' 'anticipate,' 'intend,' 'estimate,' 'should,' 'could,' 'would,' and other expressions that indicate future events and trends. Such statements include, among others, any statements regarding the Company's expected performance for future periods and the full year, the impact of order volumes on results in future quarters, future home price fluctuations, changes in home purchase or refinance demand, activity and the mix thereof, interest rate changes, expansion of the Company's market presence, enhancement of competitive strengths, execution on expense management strategies, development in housing affordability, wages, unemployment or overall economic conditions or statements regarding our actuarial assumptions and the application of recent historical claims experience to future periods. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: the cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience; declines in the performance of the Company's investments; changes in government regulations and policy, including as a result of the Trump administration such as policies related to tariffs and taxes and their impact on the macroeconomic environment; changes in the economy; the impact of inflation and responses by government regulators, including the Federal Reserve, such as changes in interest rates; loss of agency relationships, or significant reductions in agent-originated business; difficulties managing growth, whether organic or through acquisitions and other considerations set forth under the caption 'Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission, and in subsequent filings. Investors Title Company and Subsidiaries Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2025 and 2024 (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Net premiums written $ 54,496 $ 51,416 $ 100,841 $ 91,596 Escrow and other title-related fees 5,694 4,801 9,586 8,524 Non-title services 5,477 4,304 10,086 8,608 Interest and dividends 2,361 2,568 4,700 5,088 Other investment income 609 890 1,019 1,001 Net investment gains 2,104 1,242 925 3,664 Other 2,908 161 3,057 360 Total Revenues 73,649 65,382 130,214 118,841 Operating Expenses: Commissions to agents 29,077 26,550 53,934 46,420 Provision for claims 2,080 905 2,403 1,815 Personnel expenses 17,460 18,154 35,794 36,736 Office and technology expenses 4,327 4,308 8,867 8,773 Other expenses 4,907 4,198 9,365 8,033 Total Operating Expenses 57,851 54,115 110,363 101,777 Income before Income Taxes 15,798 11,267 19,851 17,064 Provision for Income Taxes 3,520 2,396 4,402 3,668 Net Income $ 12,278 $ 8,871 $ 15,449 $ 13,396 Basic Earnings per Common Share $ 6.51 $ 4.71 $ 8.19 $ 7.10 Weighted Average Shares Outstanding – Basic 1,887 1,884 1,886 1,886 Diluted Earnings per Common Share $ 6.48 $ 4.70 $ 8.16 $ 7.10 Weighted Average Shares Outstanding – Diluted 1,894 1,886 1,894 1,887 Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2025 and December 31, 2024 (in thousands) (unaudited) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 29,683 $ 24,654 Investments: Fixed maturity securities, available-for-sale, at fair value 118,450 112,972 Equity securities, at fair value 34,798 39,893 Short-term investments 60,376 59,101 Other investments 23,029 20,578 Total investments 236,653 232,544 Premiums and fees receivable 16,973 16,054 Accrued interest and dividends 1,611 1,469 Prepaid expenses and other receivables 10,129 7,033 Property, net 28,480 27,935 Goodwill and other intangible assets, net 10,617 15,071 Lease assets 7,781 6,156 Other assets 2,703 2,655 Current income taxes receivable 1,194 — Total Assets $ 345,824 $ 333,571 Liabilities and Stockholders' Equity Liabilities: Reserve for claims $ 38,051 $ 37,060 Accounts payable and accrued liabilities 29,791 34,011 Lease liabilities 8,010 6,356 Current income taxes payable — 276 Deferred income taxes, net 3,795 4,095 Total liabilities 79,647 81,798 Stockholders' Equity: Common stock – no par value (10,000 authorized shares; 1,888 and 1,886 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary) — — Retained earnings 265,355 251,418 Accumulated other comprehensive income 822 355 Total stockholders' equity 266,177 251,773 Total Liabilities and Stockholders' Equity $ 345,824 $ 333,571 Investors Title Company and Subsidiaries Direct and Agency Net Premiums Written For the Three and Six Months Ended June 30, 2025 and 2024 (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 % 2024 % 2025 % 2024 % Direct $ 15,823 29.0 $ 15,531 30.2 $ 29,357 29.1 $ 28,852 31.5 Agency 38,673 71.0 35,885 69.8 71,484 70.9 62,744 68.5 Total $ 54,496 100.0 $ 51,416 100.0 $ 100,841 100.0 $ 91,596 100.0 Investors Title Company and Subsidiaries Appendix A Non-GAAP Measures Reconciliation For the Three and Six Months Ended June 30, 2025 and 2024 (in thousands) (unaudited) Management uses various financial and operational measurements, including financial information not prepared in accordance with generally accepted accounting principles ("GAAP"), to analyze Company performance. This includes adjusting revenues to remove the impact of net investment gains and losses, which are recognized in net income under GAAP. Net investment gains and losses include realized gains and losses on sales of investment securities and changes in the estimated fair value of equity security investments. Management believes that these measures are useful to evaluate the Company's internal operational performance from period to period because they eliminate the effects of external market fluctuations. The Company also believes users of the financial results would benefit from having access to such information, and that certain of the Company's peers make available similar information. This information should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. The following tables reconcile non-GAAP financial measurements used by Company management to the comparable measurements using GAAP: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Total revenues (GAAP) $ 73,649 $ 65,382 $ 130,214 $ 118,841 Subtract: Net investment gains (2,104 ) (1,242 ) (925 ) (3,664 ) Adjusted revenues (non-GAAP) $ 71,545 $ 64,140 $ 129,289 $ 115,177 Income before Income Taxes Income before income taxes (GAAP) $ 15,798 $ 11,267 $ 19,851 $ 17,064 Subtract: Net investment gains (2,104 ) (1,242 ) (925 ) (3,664 ) Adjusted income before income taxes (non-GAAP) $ 13,694 $ 10,025 $ 18,926 $ 13,400 View source version on
Irish Post
30-07-2025
- Business
- Irish Post
Ireland's tourism industry urged to expand beyond US amid sharp drop in visitors
IRELAND'S tourism leaders are calling for a diversification of the country's tourism strategy following a significant drop in international visitor numbers this year. Figures released by Fáilte Ireland reveal an 18% decline in tourists arriving from all major overseas markets between January and April compared to the same period last year. The decline is most pronounced among visitors from key European markets. Revenue generated from British tourists dropped by 52%, while French and German tourist spending fell by 55% and 53%, respectively. The figures have raised alarm within the industry, with stakeholders stressing the need for a broader international outreach to reduce dependency on any single market. Eoghan O'Mara Walsh, chief executive of the Irish Tourism Industry Confederation (ITIC), emphasised the importance of recalibrating Ireland's tourism focus. 'We cannot afford to rely so heavily on North American visitors. A series of economic factors are impacting travel decisions, particularly from the US, and we need to be prepared for that,' he said in an interview with RTÉ Radio 1. Among the challenges cited is the weakening of the US dollar—down approximately 15% in recent months—and mounting concerns over tariffs and geopolitical uncertainty. These factors are making long-haul travel less appealing to US tourists, who have traditionally been Ireland's most valuable market. While Walsh insists the US market must still be defended and nurtured, he believes a strategic pivot is essential. 'We need to deepen ties with the American market, yes—but we also need to be more active in reaching out to Europe and beyond,' he said. However, Ireland's competitiveness as a tourist destination is also under scrutiny. According to Eurostat, Ireland ranks as the second-most expensive holiday spot in Europe, a factor that is likely to dissuade cost-conscious travellers amid tightening economic conditions in countries like Germany, France, and Britain. 'When families are budgeting for holidays, the second or third trip is often the first to be cut,' Walsh explained. 'Ireland, unfortunately, is increasingly being seen as one of those optional destinations that can be skipped.' Another barrier to growth, according to ITIC, is the current cap on passenger numbers at Dublin Airport. The existing limit of 32 million passengers per year is seen as a bottleneck for expansion, particularly as Ireland relies heavily on air travel to connect with overseas markets. 'We're an island—we don't have the luxury of land borders. If we want to grow tourism sustainably, we must expand access, starting with lifting the cap at Dublin Airport,' Walsh argued. He also highlighted the potential role of regional airports in easing the pressure on Dublin and stimulating tourism in less-visited parts of the country. 'There's an opportunity to do more with regional airports. Government could offer better support so those hubs can attract more airlines and open new routes.' As Ireland looks to rebound from the tourism downturn, industry leaders stress that a coordinated and proactive approach is critical. From increasing airport capacity to marketing more broadly across Europe and emerging markets, the message is clear: the status quo is no longer sustainable. 'If we want to remain competitive and protect the 257,900 jobs tied to tourism in Ireland, we must adapt to the new global travel reality,' Walsh concluded. See More: Fáilte Ireland, ITIC, Irish Tourism, Tourism
Irish Independent
29-07-2025
- Business
- Irish Independent
Ireland must ‘diversify' its tourism market to counter drop in visitor numbers, says tourism chief
Tourism is Ireland's biggest indigenous industry and largest regional employer with 257,900 people working in tourism and hospitality businesses nationwide. Figures released by Fáilte Ireland show an 18pc decline in tourists from all major overseas markets between January and April of this year versus the same period in 2024. Tourism operators have also reported that revenue generated by visitors from Great Britain had dropped 52pc compared to last year, while revenues for French holidaymakers dipped by 55pc and Germany by 53pc. Commenting on the figures, chief executive of the Irish Tourism Industry Confederation (ITIC), Eoghan O'Mara Walsh, said that Ireland must lessen its reliance on the North American tourists due to a series of complex economic factors contributing to their decline. 'The dollar is weakened - I think it's about 15pc in the last three or four months,' he told RTÉ Radio 1. "Obviously all the tariffs, we fear, are going to impact on the US economy and there's kind of lots of macroeconomic and geopolitical uncertainty out there, which doesn't suit tourism.' However, Mr Walsh says a proactive approach must be taken to stem the dwindling numbers of US tourists to Ireland. "I think we need to defend and deepen the US market because we can't just turn our back on our most valuable market. "But we do need to be more active and penetrate other markets.' Another challenge facing the tourism sector is Ireland's status as the second-most expensive holiday destination in Europe, according to Eurostat. ADVERTISEMENT Learn more "If you think on holiday destinations, we look at what's in our bank account, what's in our wallet. "Unfortunately the German economy, the French economy, the British economy are all struggling. Therefore, discretionary income is tighter, and therefore the second and third holidays are often sacrificed, and Ireland kind of falls into that category.' Key to fulfilling this objective, Mr Walsh says, is raising the current passenger cap at Dublin Airport to above 32 million in order to secure the arrival of more overseas visitors. 'We are an island nation. There's no roads and no bridges, no tunnels off the island. If we want to activate and we want to secure access to our key source markets, we need headroom at Dublin Airport,' he said. "Government have had an awful lot of time to debate it and tease it out and we're still at the same stage as we have been for a long time.' However, he believes more could be done to incorporate regional airports into the pledge to increase the number of inbound flights. "I think Government could be doing more in terms of supporting some of the spend at those airports, allowing those airports to incentivise airlines into those regional parts of the country.'
Irish Independent
14-06-2025
- Entertainment
- Irish Independent
US tourists flock to Dublin for US country music star Zach Bryan's gigs amid surge in North American visitors
The Oklahoma singer-songwriter will play three concerts at Dublin's Phoenix Park from June 20-22 with a predicted attendance of over 180,000. The gigs have delivered bumper bookings for Dublin hotels while pubs and restaurants are set to enjoy a surge in business over the next 10 days. It is predicted that up to 10,000 US fans will visit Ireland, with the concerts a key reason for their holiday here. Dublin tourism will savour its biggest boost since the Garth Brooks concerts of 2022 as, unlike rock acts such as Bruce Springsteen, Taylor Swift and Coldplay, the majority of ticket sales for country artists are outside the capital region. Only 12pc of ticket sales for the Bryan concerts were in the Dublin area – with huge ticket demand in Connacht, Ulster, the UK and North America. Bryan has enjoyed a stratospheric rise to stardom and will play here just two years after performing to 1,900 fans at The Helix in Dublin. The concerts take place as Ireland is savouring a big recovery in US tourist numbers. Latest figures from the Central Statistics Office (CSO) revealed that one in five foreign holidaymakers who visited Ireland in April were from the US. That represented a significant increase in North American visitor numbers compared with March. While the figure (18pc) was down 1pc compared with the same period last year, it represented an 8pc hike compared with the number of US holidaymakers recorded in April 2023. The UK remains Ireland's biggest tourism market with four in every 10 visitors coming from England, Scotland or Wales. The Irish Tourism Industry Confederation (ITIC) said the sector faces multiple challenges ranging from constrained airline seat capacity, global instability, the potential impact of Donald Trump's 'America First' strategy and economic issues on core visitor markets including the UK and Germany. Irish tourism is expected to deliver revenue growth of between 5pc and 7pc, but growth in the overall number of visitors is expected to slip to its lowest rate for years. The European Travel Commission (ETA) has predicted average tourism growth across the 27 member states will exceed 8pc. ADVERTISEMENT However, the ITIC predicted that Ireland will fall behind the EU average – potentially peaking at 5pc growth. Tourism Ireland estimated that the economy received a €7bn boost from tourism last year. Over 300,000 jobs are supported by overseas tourism, with Tourism Ireland aiming to boost the value of the sector to €9bn by 2030. Tourism revenue growth has been boosted by the fact that inflation has eased and Ireland will be able to offer better value for money in accommodation terms thanks to over 7,000 new hotel rooms being delivered by the construction sector. A significant number of hotel and guest house rooms will also be returned to tourism use as refugees are allocated alternative accommodation. Leading hoteliers said 2024 was a good year and this season was expected to deliver further growth. InterContinental Dublin general manager Nicky Logue said US business was strong while UK trade was down on previous years. 'Last year was a very strong year and, bar any great shocks, I predict the same in 2025, albeit with a lot of pressure on the bottom line with increasing costs of doing business,' Mr Logue said. 'Thankfully we performed well year-on-year due to strong group business from the US in particular and rugby. Ireland and Slovenia are the only two European countries where airline seat capacity will decline in 2025 'Leisure business remains strong from the US, but the UK market is definitely not as strong as it has been in years gone by. Corporate business remains challenging with people travelling less and many still working from home a couple of days a week.' Tourism groups said the main 'handbrake on growth' is the passenger cap at Dublin Airport. Ireland and Slovenia are the only two European countries where airline seat capacity will decline in 2025. In Ireland, seat capacity will fall by 3.3pc. That contrasts with countries like the UK (+3.9pc), France (7.1pc), Spain (+8.1pc), Italy (+6.1pc) and Denmark (+8.3pc). An ITIC spokesperson said: 'With 70pc of the Irish tourism economy dependent on international visitation, it is vital that the main gateway into the country has headroom to grow. 'Although there is a court ruling to put a 'stay' on the cap for next summer, the issue of restrictions at Dublin growth is as pertinent as ever. 'This manifested itself last winter in air access into the country being down 3pc – the only top-20 European destination showing a decline. 'Growth at Shannon and Cork Airports must be facilitated, but this will not compensate for lost business at Dublin.' From January 1 to October 31 last year, Ireland welcomed 5.79 million visitors which was an 8pc increase compared with the same period in 2023. Those visitors spent €5.38bn, an increase of 15pc compared with the same period in 2023. However, Ireland experienced a 5pc decline last October in overseas visitor numbers compared to the previous year – a decline largely triggered by a fall in UK visitors.
Yahoo
01-06-2025
- Business
- Yahoo
Investors Title's (NASDAQ:ITIC) Dividend Will Be $0.46
The board of Investors Title Company (NASDAQ:ITIC) has announced that it will pay a dividend of $0.46 per share on the 30th of June. This makes the dividend yield 6.8%, which will augment investor returns quite nicely. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Based on the last payment, Investors Title was paying only paying out a fraction of earnings, but the payment was a massive 137% of cash flows. The business might be trying to strike a balance between returning cash to shareholders and reinvesting back into the business, but this high of a payout ratio could definitely force the dividend to be cut if the company runs into a bit of a tough spot. Over the next year, EPS could expand by 10.8% if the company continues along the path it has been on recently. If the dividend continues on its recent course, the payout ratio in 12 months could be 102%, which is a bit high and could start applying pressure to the balance sheet. Check out our latest analysis for Investors Title Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was $0.32 in 2015, and the most recent fiscal year payment was $15.84. This works out to be a compound annual growth rate (CAGR) of approximately 48% a year over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Investors Title has seen EPS rising for the last five years, at 11% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Investors Title's prospects of growing its dividend payments in the future. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While Investors Title is earning enough to cover the payments, the cash flows are lacking. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for Investors Title (of which 1 is concerning!) you should know about. Is Investors Title not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
