Stewart Information Services Corporation (STC) has reported a 78.04 percent plunge in profit for the quarter ended Dec. 31, 2015. The company has earned $2.60 million, or $0.11 a share in the quarter, compared with $11.86 million, or $0.49 a share for the same period last year. Revenue during the quarter dropped 4.77 percent to $497.40 million from $522.32 million in the previous year period.
Total expenses come down marginally
Operating income for the quarter was $3.10 million, compared with $16.04 million in the previous year period. Net investment income was at $4.11 million for the quarter, down 2.47 percent or $0.10 million from year-ago period. The company has booked a loss on investments of $2.10 million in the quarter compared with $5.60 million for the previous year period.
"Although total title revenues were essentially the same as last year's fourth quarter, the segment's pretax income increased $9.3 million, or 20.4 percent, compared to last year's fourth quarter," said Matthew W. Morris, chief executive officer. "Pretax margin expanded from 10.2 percent to 12.1 percent in the fourth quarter. "This improvement in earnings is attributable both to savings from the cost management program completed in 2015 and to the rationalization of our network of direct offices. We closed 2015 on a positive note in our title operations notwithstanding the effects of the new integrated disclosure requirements known as 'Know Before You Owe', which became effective October 3, 2015."
Assets, liabilities fall
Total assets decreased 5.09 percent or $70.89 million to $1,321.59 million on Dec. 31, 2015. On the other hand, total liabilities were at $684.46 million as on Dec. 31, 2015, down 1.09 percent or $7.57 million from year-ago. Return on assets stood at 0.44 percent in the quarter, down 0.62 from 1.06 percent in the last year period. At the same time, return on equity was at 0.41 percent in the quarter, down 1.30 from 1.71 percent in the last year period.
Investments move up marginally
Investments stood at $619.56 million as on Dec. 31, 2015, up 2.38 percent or $14.41 million from year-ago. Meanwhile, yield on investments went down 3 basis points to 0.66 percent in the quarter. Total debt was at $102.40 million as on Dec. 31, 2015, up 43.86 percent or $31.22 million from year-ago. Shareholders equity stood at $629.28 million as on Dec. 31, 2015, down 9.22 percent or $63.90 million from year-ago. As a result, debt to equity ratio went up 6 basis points to 0.16 percent in the quarter from 0.10 percent in the last year period.
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