LandAmerica Announces First Quarter Results

Apr 25, 2001, 01:00 ET from LandAmerica Financial Group, Inc.

    RICHMOND, Va., April 25 /PRNewswire/ -- LandAmerica Financial Group, Inc.
 (NYSE:   LFG), a premier provider of title insurance and a broad range of real
 estate-related services, announced earnings for the first quarter, ended March
 31, 2001, excluding amortization of goodwill and other acquisition-related
 intangibles, of $9.4 million, or $.50 per diluted share, compared to $687,000,
 or $.04 per diluted share in the comparable quarter of 2000.  The acquisition
 related amortization totaled $2.8 million in the 2001 quarter, compared to
 $2.7 million in the 2000 quarter.
     Including acquisition-related costs, in conformity with generally accepted
 accounting principles, for the 2001 reporting period, net income was $6.6
 million, or $.36 per diluted share, compared to a net loss of $2.1 million in
 the 2000 reporting period.  The 2000 period included an after-tax gain on
 sales of investments of $58,000, while the 2001 period had an after-tax loss
 on sales of investments of $262,000, or $.01 per diluted share.
     Reflecting the lower interest rate environment, and resultant higher
 levels of refinancing activity, operating revenues, excluding investment
 income, improved 8% in the first quarter of 2001 to $426.1 million.
     During the first quarter of 2001, new open order counts totaled 256,900
 compared to 172,900 in the same quarter of 2000.
     Commenting on the company's performance, chairman and chief executive
 officer, Charles H. Foster, Jr. noted, "We are very pleased with the
 strengthening of our results through the quarter and are optimistic about our
 prospects.  In January, we began to see significant improvements in new open
 orders as residential refinancing activity increased sharply in response to
 declining interest rates.  By March, we began to see the effects of this in
 our operating results.
     "While we have enjoyed improved revenue, we are committed to maintaining a
 lean cost structure through this improving business environment.  Operating
 revenues, net of agents' commissions increased by $36 million in the first
 quarter 2001 compared to 2000.  Through our attention to cost, we managed to
 bring over $14 million, or almost 40% of this down to the pre-tax operating
 line."
 
   LandAmerica Financial Group, Inc. and Subsidiaries - Summary of Operations
                      (In thousands except per share data)
 
                                                Three months ended March 31,
                                                         2001           2000
     Title and other operating revenues:
       Direct operations                             $203,787       $164,920
       Agency operations                              222,309        228,859
                                                      426,096        393,779
     Investment income                                 12,918         12,773
     Gain (loss) on sales of investments                 (409)            87
     Total revenues                                   438,605        406,639
 
     Salaries and employee benefits                   140,877        121,047
     Agents' commissions                              174,618        178,321
     Provision for policy and contract claims          16,706         17,371
     Interest expense                                   3,667          3,382
     Goodwill amortization                              2,751          2,738
     General, administrative and other                 89,610         86,888
     Total expenses                                   428,229        409,747
 
     Operating income (loss) before taxes              10,376         (3,108)
     Income tax expense (benefit)                       3,735         (1,057)
     Net income (loss)                                  6,641         (2,051)
     Less preferred dividends                             145          1,925
     Income (loss) available to common shareholders    $6,496        $(3,976)
 
     Net income (loss) per common share                 $0.43         $(0.30)
     Net income (loss) per common share
      assuming dilution                                 $0.36         $(0.11)*
     Average shares outstanding                        15,148         13,442
     Average shares outstanding assuming dilution      18,608             --
 
     Orders opened
       January                                           77.9           50.7
       February                                          83.0           57.0
       March                                             96.0           65.2
         Total orders opened                            256.9          172.9
 
     * With full dilution, i.e. assuming conversion of preferred stock, in the
       first quarter of 2000, the Company reported a net loss of $0.11 per
       diluted share.  Assuming no conversion of preferred stock as required
       under generally accepted accounting principles because of the net loss
       for the quarter, the company reported a per share loss of $0.30.
 
 
                                                     March 31,   December 31,
                                                         2001           2000
 
     Total assets                                  $1,614,166     $1,618,957
     Shareholders' equity                             680,098        664,100
     Book value per share attributable to
      common shareholders                              $37.33         $40.99
 
     The following pro forma supplemental information excludes the effects of
 amortization of goodwill related to acquisitions.  Goodwill amortization is a
 non-cash charge against earnings which is reflected in typical earnings per
 share calculations.  This pro forma data reflects cash earnings per share of
 the company.  This pro forma information is not prepared in accordance with
 accounting principles generally accepted in the United States.
 
 
                                                Three months ended March 31,
                                                         2001           2000
     Pro Forma:
     Operating expenses excluding
      goodwill amortization                          $425,478       $407,009
     Net income excluding goodwill amortization         9,393            687
     Diluted earnings per share excluding
      goodwill amortization                             $0.50          $0.04
     Average shares outstanding assuming dilution      18,608         18,330
 
     The Company cautions readers that the statements contained herein
 regarding the Company's future business plans, operations, opportunities or
 prospects, including any factors which may affect future earnings, are
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements are based upon management's current knowledge and assumptions about
 future events and involve risks and uncertainties that could cause actual
 results to differ materially from anticipated results.  For more details on
 factors that could affect expectations, see the Company's Annual Report on
 Form 10-K for the year ended December 31, 2000, as filed with the Securities
 and Exchange Commission.
 
     LandAmerica Financial Group, Inc. is a leading provider of title insurance
 and a broad range of real estate-related services.  LandAmerica, through its
 subsidiaries Commonwealth Land Title Insurance Company, Lawyers Title
 Insurance Corporation and Transnation Title Insurance Company, services its
 residential and commercial customers with more than 600 offices throughout the
 United States, Canada and the Caribbean.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X66337502
 
 

SOURCE LandAmerica Financial Group, Inc.
    RICHMOND, Va., April 25 /PRNewswire/ -- LandAmerica Financial Group, Inc.
 (NYSE:   LFG), a premier provider of title insurance and a broad range of real
 estate-related services, announced earnings for the first quarter, ended March
 31, 2001, excluding amortization of goodwill and other acquisition-related
 intangibles, of $9.4 million, or $.50 per diluted share, compared to $687,000,
 or $.04 per diluted share in the comparable quarter of 2000.  The acquisition
 related amortization totaled $2.8 million in the 2001 quarter, compared to
 $2.7 million in the 2000 quarter.
     Including acquisition-related costs, in conformity with generally accepted
 accounting principles, for the 2001 reporting period, net income was $6.6
 million, or $.36 per diluted share, compared to a net loss of $2.1 million in
 the 2000 reporting period.  The 2000 period included an after-tax gain on
 sales of investments of $58,000, while the 2001 period had an after-tax loss
 on sales of investments of $262,000, or $.01 per diluted share.
     Reflecting the lower interest rate environment, and resultant higher
 levels of refinancing activity, operating revenues, excluding investment
 income, improved 8% in the first quarter of 2001 to $426.1 million.
     During the first quarter of 2001, new open order counts totaled 256,900
 compared to 172,900 in the same quarter of 2000.
     Commenting on the company's performance, chairman and chief executive
 officer, Charles H. Foster, Jr. noted, "We are very pleased with the
 strengthening of our results through the quarter and are optimistic about our
 prospects.  In January, we began to see significant improvements in new open
 orders as residential refinancing activity increased sharply in response to
 declining interest rates.  By March, we began to see the effects of this in
 our operating results.
     "While we have enjoyed improved revenue, we are committed to maintaining a
 lean cost structure through this improving business environment.  Operating
 revenues, net of agents' commissions increased by $36 million in the first
 quarter 2001 compared to 2000.  Through our attention to cost, we managed to
 bring over $14 million, or almost 40% of this down to the pre-tax operating
 line."
 
   LandAmerica Financial Group, Inc. and Subsidiaries - Summary of Operations
                      (In thousands except per share data)
 
                                                Three months ended March 31,
                                                         2001           2000
     Title and other operating revenues:
       Direct operations                             $203,787       $164,920
       Agency operations                              222,309        228,859
                                                      426,096        393,779
     Investment income                                 12,918         12,773
     Gain (loss) on sales of investments                 (409)            87
     Total revenues                                   438,605        406,639
 
     Salaries and employee benefits                   140,877        121,047
     Agents' commissions                              174,618        178,321
     Provision for policy and contract claims          16,706         17,371
     Interest expense                                   3,667          3,382
     Goodwill amortization                              2,751          2,738
     General, administrative and other                 89,610         86,888
     Total expenses                                   428,229        409,747
 
     Operating income (loss) before taxes              10,376         (3,108)
     Income tax expense (benefit)                       3,735         (1,057)
     Net income (loss)                                  6,641         (2,051)
     Less preferred dividends                             145          1,925
     Income (loss) available to common shareholders    $6,496        $(3,976)
 
     Net income (loss) per common share                 $0.43         $(0.30)
     Net income (loss) per common share
      assuming dilution                                 $0.36         $(0.11)*
     Average shares outstanding                        15,148         13,442
     Average shares outstanding assuming dilution      18,608             --
 
     Orders opened
       January                                           77.9           50.7
       February                                          83.0           57.0
       March                                             96.0           65.2
         Total orders opened                            256.9          172.9
 
     * With full dilution, i.e. assuming conversion of preferred stock, in the
       first quarter of 2000, the Company reported a net loss of $0.11 per
       diluted share.  Assuming no conversion of preferred stock as required
       under generally accepted accounting principles because of the net loss
       for the quarter, the company reported a per share loss of $0.30.
 
 
                                                     March 31,   December 31,
                                                         2001           2000
 
     Total assets                                  $1,614,166     $1,618,957
     Shareholders' equity                             680,098        664,100
     Book value per share attributable to
      common shareholders                              $37.33         $40.99
 
     The following pro forma supplemental information excludes the effects of
 amortization of goodwill related to acquisitions.  Goodwill amortization is a
 non-cash charge against earnings which is reflected in typical earnings per
 share calculations.  This pro forma data reflects cash earnings per share of
 the company.  This pro forma information is not prepared in accordance with
 accounting principles generally accepted in the United States.
 
 
                                                Three months ended March 31,
                                                         2001           2000
     Pro Forma:
     Operating expenses excluding
      goodwill amortization                          $425,478       $407,009
     Net income excluding goodwill amortization         9,393            687
     Diluted earnings per share excluding
      goodwill amortization                             $0.50          $0.04
     Average shares outstanding assuming dilution      18,608         18,330
 
     The Company cautions readers that the statements contained herein
 regarding the Company's future business plans, operations, opportunities or
 prospects, including any factors which may affect future earnings, are
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements are based upon management's current knowledge and assumptions about
 future events and involve risks and uncertainties that could cause actual
 results to differ materially from anticipated results.  For more details on
 factors that could affect expectations, see the Company's Annual Report on
 Form 10-K for the year ended December 31, 2000, as filed with the Securities
 and Exchange Commission.
 
     LandAmerica Financial Group, Inc. is a leading provider of title insurance
 and a broad range of real estate-related services.  LandAmerica, through its
 subsidiaries Commonwealth Land Title Insurance Company, Lawyers Title
 Insurance Corporation and Transnation Title Insurance Company, services its
 residential and commercial customers with more than 600 offices throughout the
 United States, Canada and the Caribbean.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X66337502
 
 SOURCE  LandAmerica Financial Group, Inc.