Capital Title Group Inc., a fast-growing Arizona firm that plans to merge with Land America Financial Group, today reported second-quarter revenue was down 19.8 percent from the same quarter last year, to $84.9 million.
Capital Title attributed the drop in revenue — and a decline in earnings per share from 30 cents to 9 cents — to a general slowdown in real estate market activity. The company also had 31 million shares outstanding, compared with 24.2 million at the end of second-quarter 2005, which diluted earnings. Capital Title said legal expenses, professional fees and stock options also contributed to a 3-cents-per-share decline in earnings.
Donald R. Head, Capital Title’s chairman, president and chief executive officer, said a planned merger with LandAmerica continues to move forward. Stockholders must approve the deal at a special meeting Aug. 10.
Named to Fortune’s list of the 100 fastest-growing companies in America for two years running, Scottsdale-based Capital Title and its subsidiaries employ more than 2,200. Subsidiaries include Capital Title Agency, New Century Title Co., United Title Co., First California Title Co., Land Title of Nevada, CTG Real Estate Information Services, Nationwide Appraisal Services, Nationwide TotalFlood Services Inc., NAC1031 Exchange Services, 1031 ExchangePoint Inc. and AdvantageWare. The company is licensed to issue and underwrite title insurance policies in Arizona, California, Florida, Nevada, New York, Pennsylvania and Texas through its underwriting subsidiary, United Capital Title Insurance Co.
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