Stewart Information Services Corp. (STC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Stewart Information Services Corp. has a market cap of $206 million; its shares were traded at around $11.3 with and P/S ratio of 0.1. The dividend yield of Stewart Information Services Corp. stocks is 0.4%.STC is in the portfolios of Arnold Schneider of Schneider Capital Management, Chuck Royce of Royce& Associates, Charles Brandes of Brandes Investment, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
For the three months ended March 31, 2009, investment and other gains (losses) net included realized losses of $6.6 million from the impairment of equity method and cost-basis investments, $1.3 million from the impairment of equity securities available-for-sale and $1.0 million from office closure costs. The realized losses were partially offset by realized gains of $0.6 million from the sale of debt and equity investments available-for-sale.
Cash payments on title claims for the first quarters of 2010 and 2009 were $38.1 million and $36.5 million, respectively. Claims payments remain elevated as payments are made on previously accrued title losses. Claim payments made during the first quarter 2010 and 2009 include $9.5 million and $4.6 million, respectively, on large title claims. Also, more than 65% of total claim payments relating to independent agents made in the first quarter of 2010 were for losses arising from now-canceled independent agents. As the losses from those agents are paid out, we expect the overall amount of cash paid on title claims to decline.
Cash from investing activities was generated principally by proceeds from investments matured and sold in the amounts of $58.0 million and $68.9 million for the first quarters of 2010 and 2009, respectively. We used cash for the purchases of investments in the amounts of $44.9 million and $25.9 million for the first quarters of 2010 and 2009, respectively. The cash from sales and maturities not reinvested was used principally to fund operations and, to a lesser extent, reduce notes payable.
During 2008, we purchased $241.5 million of investments from our exchanger funds. To fund these purchases, we drew $241.5 million under the related line of credit and pledged the investments to secure the line. Under the terms of the line of credit and related settlement agreement, we expect to repay it by June 30, 2010 by surrendering the related investments pledged. Prior to June 30, 2010, any redemptions by the issuers of the investments owned by us will be utilized to reduce the corresponding line of credit. During the first quarter of 2010, issuers of the investments redeemed $9.3 million, thereby, reducing the principal amount of investments pledged. The related line of credit was reduced by proceeds from the investments redeemed plus excess interest earned aggregating $9.6 million and $0.9 million for the first quarters of 2010 and 2009, respectively, which is included in cash flows from financing activities.
Other comprehensive earnings (loss). Unrealized gains and losses on investments and changes in foreign currency exchange rates are reported net of deferred taxes in accumulated other comprehensive earnings, a component of stockholders equity, until realized. For the three months ended March 31, 2010, net unrealized investment gains of $1.0 million, which decreased our comprehensive loss, were primarily related to temporary increases in market values of corporate bond investments. For the three months ended March 31, 2009, net unrealized investment losses of $2.5 million, which increased our comprehensive loss, were related to temporary decreases in market values of corporate and government bond investments, partially offset by increases in municipal bond and equity investments. Changes in foreign currency exchange rates, primarily related to our Canadian operations, decreased comprehensive loss by $1.0 million, net of taxes, for the three months ended March 31, 2010 and increased comprehensive loss $1.5 million, net of taxes, for the three months ended March 31, 2009.
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Stewart Information Services Corp. has a market cap of $206 million; its shares were traded at around $11.3 with and P/S ratio of 0.1. The dividend yield of Stewart Information Services Corp. stocks is 0.4%.STC is in the portfolios of Arnold Schneider of Schneider Capital Management, Chuck Royce of Royce& Associates, Charles Brandes of Brandes Investment, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We reported a net loss attributable to Stewart of $29.0 million for the three months ended March 31, 2010 compared with a net loss attributable to Stewart of $37.6 million for the same period in 2009. On a basic and diluted per share basis, our net loss attributable to Stewart was $1.59 for the first three months of 2010 compared with a net loss attributable to Stewart of $2.07 for the first three months of 2009. Revenues were $351.3 million for the three months ended March 31, 2010 compared with $313.5 million for the three months ended March 31, 2009.For the three months ended March 31, 2009, investment and other gains (losses) net included realized losses of $6.6 million from the impairment of equity method and cost-basis investments, $1.3 million from the impairment of equity securities available-for-sale and $1.0 million from office closure costs. The realized losses were partially offset by realized gains of $0.6 million from the sale of debt and equity investments available-for-sale.
Cash payments on title claims for the first quarters of 2010 and 2009 were $38.1 million and $36.5 million, respectively. Claims payments remain elevated as payments are made on previously accrued title losses. Claim payments made during the first quarter 2010 and 2009 include $9.5 million and $4.6 million, respectively, on large title claims. Also, more than 65% of total claim payments relating to independent agents made in the first quarter of 2010 were for losses arising from now-canceled independent agents. As the losses from those agents are paid out, we expect the overall amount of cash paid on title claims to decline.
Cash from investing activities was generated principally by proceeds from investments matured and sold in the amounts of $58.0 million and $68.9 million for the first quarters of 2010 and 2009, respectively. We used cash for the purchases of investments in the amounts of $44.9 million and $25.9 million for the first quarters of 2010 and 2009, respectively. The cash from sales and maturities not reinvested was used principally to fund operations and, to a lesser extent, reduce notes payable.
During 2008, we purchased $241.5 million of investments from our exchanger funds. To fund these purchases, we drew $241.5 million under the related line of credit and pledged the investments to secure the line. Under the terms of the line of credit and related settlement agreement, we expect to repay it by June 30, 2010 by surrendering the related investments pledged. Prior to June 30, 2010, any redemptions by the issuers of the investments owned by us will be utilized to reduce the corresponding line of credit. During the first quarter of 2010, issuers of the investments redeemed $9.3 million, thereby, reducing the principal amount of investments pledged. The related line of credit was reduced by proceeds from the investments redeemed plus excess interest earned aggregating $9.6 million and $0.9 million for the first quarters of 2010 and 2009, respectively, which is included in cash flows from financing activities.
Other comprehensive earnings (loss). Unrealized gains and losses on investments and changes in foreign currency exchange rates are reported net of deferred taxes in accumulated other comprehensive earnings, a component of stockholders equity, until realized. For the three months ended March 31, 2010, net unrealized investment gains of $1.0 million, which decreased our comprehensive loss, were primarily related to temporary increases in market values of corporate bond investments. For the three months ended March 31, 2009, net unrealized investment losses of $2.5 million, which increased our comprehensive loss, were related to temporary decreases in market values of corporate and government bond investments, partially offset by increases in municipal bond and equity investments. Changes in foreign currency exchange rates, primarily related to our Canadian operations, decreased comprehensive loss by $1.0 million, net of taxes, for the three months ended March 31, 2010 and increased comprehensive loss $1.5 million, net of taxes, for the three months ended March 31, 2009.
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