Stewart(STC) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2024 were $667.9 million, a 10.9% increase from$ 601.7 million in Q3 2023[1] - Net income attributable to Stewart for Q3 2024 was $30.1 million, compared to$ 14.0 million in Q3 2023, representing a 114.3% increase[1] - Diluted earnings per share for Q3 2024 were $1.07, up from$ 0.51 in Q3 2023, marking a 109.8% increase[1] - Total operating revenues for the nine months ended September 30, 2024, reached $1.772 billion, up 7.6% from$ 1.648 billion in the same period of 2023[19] - Other comprehensive income for the quarter was $18.259 million, a significant recovery from a loss of$ 13.295 million in the same quarter of 2023[18] - Adjusted net income attributable to Stewart for Q3 2024 was $33.1 million, representing a 39% increase from$ 23.9 million in Q3 2023[26] - GAAP net income per share for Q3 2024 was $1.07, compared to$ 0.51 in Q3 2023[26] - Adjusted net income per share for Q3 2024 was $1.17, up from$ 0.86 in Q3 2023, marking a 36% increase[26] Revenue Segments - The title segment's operating revenues increased by $31.2 million, or 6%, driven by higher domestic commercial and agency title operations[5] - Domestic commercial revenues in the title segment rose by$ 15.5 million, or 30%, due to a higher average transaction size[8] - The real estate solutions segment's operating revenues increased by $28.2 million, or 41%, primarily from improved revenues in credit information and valuation services[11] - Total revenues in the Real Estate Solutions segment for Q3 2024 were$ 96.4 million, a 41% increase from $68.2 million in Q3 2023[27] - Adjusted pretax income in the Real Estate Solutions segment for Q3 2024 was$ 12.9 million, a 45% increase from $8.9 million in Q3 2023[27] Operational Metrics - Net cash provided by operations in Q3 2024 was$ 76.1 million, compared to $59.5 million in Q3 2023, reflecting improved consolidated net income[14] - The company reported net cash provided by operations of$ 76.121 million for the quarter, compared to $59.533 million in the same quarter of 2023, reflecting a 27.8% increase[18] - Total opened orders for 2024 reached 87,464, a 7.6% increase compared to 81,267 in the same period of 2023[20] Expenses and Liabilities - Consolidated employee costs increased by$ 12.4 million, or 7%, due to higher incentive compensation related to increased revenues[13] - Employee costs for the quarter ended September 30, 2024, were $193.862 million, an increase of 6.8% from$ 181.493 million in the same quarter of 2023[19] - Total other operating expenses increased by $25.2 million, or 19%, primarily due to higher service expenses related to real estate solutions[13] - The company’s total liabilities as of September 30, 2024, were$ 1.315 billion, a slight decrease from $1.324 billion at the end of 2023[21] Investment and Cash Position - Cash and cash equivalents decreased to$ 183.772 million as of September 30, 2024, from $233.365 million at the end of 2023, representing a decline of 21.2%[21] - Investment income for the nine months ended September 30, 2024, was$ 40.833 million, up 27.2% from $32.114 million in the same period of 2023[19] Margins - The adjusted pretax margin for the title segment was 7.7% in Q3 2024, compared to 7.8% in Q3 2023[4] - Pretax income for Q3 2024 was$ 42.8 million, up 58% from $27.1 million in Q3 2023[26] - Adjusted pretax income for Q3 2024 increased by 17% to$ 46.8 million, compared to $40.0 million in Q3 2023[26]