Stewart Information Services Corporation (STC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $4.09 million, or $ 0.17 a share in the quarter, against a net loss of $11.19 million, or $0.48 a share in the last year period.
Revenue during the quarter went up marginally by 1.10 percent to $443.04 million from $438.23 million in the previous year period.
Total expenses come down marginally
Operating income for the quarter was $5.86 million, compared with an operating loss of $15.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.80 million compared to negative $0.90 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.89 percent for the quarter compared to negative 0.21 percent in the last year period.
Net investment income was at $4.67 million for the quarter, down 7.87 percent or $0.40 million from year-ago period. The company has recorded a gain on investments of $0.29 million in the quarter compared with a gain of $0.49 million for the previous year period.
We are pleased with our first quarter results, and encouraged by the solid foundation we have set for the remainder of the year," said Matthew W. Morris, chief executive officer. "We reported pretax income of $6 million, an approximately $22 million improvement on operating revenue growth of $5 million when compared to the prior year quarter. Employee and other operating costs declined almost $20 million due to our ongoing cost discipline as well as the actions taken in 2016 to focus on our core title operations. Gains in operational efficiency were achieved in both the title segment and ancillary services and corporate segment, with pretax margins improving solidly from the prior year's first quarter. We remain focused on generating core title revenue growth in target markets and are investing as necessary in initiatives to that end. We believe that smart revenue growth coupled with further production cost efficiency will yield sustainable margin improvement."
Total assets stood at $1,307.97million as on Mar. 31, 2017. On the other hand, total liabilities were at $658.87 million as on Mar. 31, 2017.
Return on assets was at 0.52 percent in the quarter. At the same time, return on equity was at 0.63 percent in the quarter.
Investments stood at $679.04 million as on Mar. 31, 2017. Meanwhile, yield on investments was at 0.69 percent in the quarter.
Total debt was at $100.84 million as on Mar. 31, 2017. Shareholders equity was at $649.10 million as on Mar. 31, 2017. As a result, debt to equity ratio was at 0.16 percent in the quarter.
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