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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 6, 1998
(Date of earliest event reported)
LAWYERS TITLE CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Virginia 0-13990 54-1589611
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
6630 West Broad Street
Richmond, Virginia 23230
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(804) 281-6700
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Item 5. Other Events.
The press release issued by the Registrant on February 6, 1998 and
attached hereto as Exhibit 99 is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
Exhibit No. Description
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99 Press release issued by the Registrant on
February 6, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
LAWYERS TITLE CORPORATION
Dated: February 6, 1998 By: /s/ G. William Evans
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G. William Evans
Vice President and Treasurer
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INDEX TO EXHIBITS
No. Description
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99 Press release issued by the Registrant on February 6, 1998.
EXHIBIT 99
LAWYERS TITLE CORPORATION CONTACT: H. Randolph Farmer
6630 West Broad Street 804-281-6855
Richmond, Virginia 23230
Telephone: 804-281-6700 G. William Evans
FAX: 804-282-5453 804-281-6752
FOR IMMEDIATE RELEASE
February 6, 1998
Lawyers Title Corporation has record operating performance
for fourth quarter and year
Lawyers Title Corporation (NYSE:LTI), holding company for Lawyers Title
Insurance Corporation, headquartered in Richmond, Virginia, reported net income
of $8.9 million, or $.95 per diluted share, for the fourth quarter ended
December 31, 1997, compared to net income of $16.9 million, or $1.85 per diluted
share, for the fourth quarter ended December 31, 1996. The 1997 quarter included
pretax capital losses of $0.4 million, while the fourth quarter of 1996 included
$18 million of pretax capital gains, largely from a restructuring of the
investment portfolio during that quarter. Net income less after tax capital
gains (losses) of the company in the fourth quarter of 1997 was $9.1 million
compared to $5.2 million in the fourth quarter of 1996, an increase of 75
percent. This is a record operating performance for the company.
For the year ended December 31, 1997, net income was $26.2 million, or
$2.84 per diluted share, compared to $36.5 million, or $4.01 per diluted share,
for the full year 1996. The 1997 year included $.2 million of capital losses,
while the full year 1996 included $23.4 million of pretax capital gains. Net
income less after tax capital gains (losses) improved more than 23 percent, to
$26.3 million from $21.3 million.
The record operating performance for 1997 reflects the effects of the
lower interest rate environment during the year on residential real estate as
well as a strong commercial real estate market.
Record operating revenues, including premiums, title search, escrow and
other, of $183.2 million for the fourth quarter of 1997 were more than 18
percent ahead of year ago levels, while for the full year revenues grew by more
than 11 percent.
As a result of the strong revenue growth and constant monitoring of
staffing and expense levels, the operating margin, before claims and investment
income, in the fourth quarter of 1997 was 10.9 percent, more than two percentage
points stronger than the 8.4 percent realized in the fourth quarter of 1996. For
the full year, the operating margin improved to 9.3 percent in 1997 from 8.7
percent in 1996.
Claims experience continued to be favorable coming in at 5.4 percent of
operating revenues for both the fourth quarter and full year 1997.
According to Chairman and Chief Executive Officer Charles H. Foster,
Jr., "We were gratified with the results of the fourth quarter of 1997. Revenues
from both direct and agency sources showed good growth and we did not lose our
focus on the expense line as we showed significant margin improvement from the
prior year. As we begin 1998, the environment for our business continues to be
very favorable with 30-year fixed rate mortgages around the 7 percent level and
residential refinancing
(more)
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activity at levels not seen since 1993. Our new open order count in the fourth
quarter of 1997 was almost 17 percent ahead of the prior year and represented an
all time high fourth quarter open order count."
<TABLE>
<CAPTION>
Lawyers Title and Subsidiaries - Summary of Operations
(In thousands except per share) Three months ended Dec. 31 Twelve months ended Dec. 31
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1997 1996 1997 1996
- --------------------------------------------- ---------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Premiums $150,249 $127,939 $504,024 $456,377
Title search, escrow and other 32,988 26,878 118,757 101,381
Investment income 3,899 20,986 16,318 36,424
TOTAL REVENUES 187,136 175,803 639,099 594,182
Salaries and employee benefits 51,892 47,147 200,488 184,274
Agents' commissions 68,414 58,474 218,358 192,590
Provision for policy and contract claims 9,839 8,136 33,749 29,211
General, administrative and other 43,041 36,171 146,035 132,567
TOTAL EXPENSES 173,186 149,928 598,630 538,642
Income before taxes 13,950 25,875 40,469 55,540
Income taxes 5,092 8,975 14,312 19,021
Net income 8,858 16,900 26,157 36,519
Basic earnings per share $ .99 $1.90 $2.93 $4.11
Weighted average shares outstanding 8,958 8,890 8,924 8,888
Diluted earnings per share $ .95 $1.85 $2.84 $4.01
Diluted shares outstanding 9,359 9,126 9,224 9,102
Total assets 554,693 520,968
Shareholders' equity 292,404 262,168
Book value per share $32.62 $29.49
Direct orders closed 99.4 71.3 326.0 283.5
Direct orders opened 105.9 90.6 415.0 397.1
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Lawyers Title offers a full line of title insurance services to
residential and commercial customers through its network of subsidiaries, branch
offices, agents and approved attorneys in the U.S., Canada, and the Caribbean.
In addition to title insurance, the company offers access to a broad range of
real estate services, including environmental insurance, document preparation,
tax disbursement and reporting, property appraisals, credit reporting, single
and multisite surveys, flood certifications, relocation services and
tax-deferred property exchanges under Section 1031 of the Internal Revenue Code.
