Stewart Information Services Corporation · NYSE:STC
Stewart Information Services — Investor Presentation (2024)
16 slides from Stewart Information Services's investor presentation, 2024
Slide 1: Investor Presentation Fall/Winter 2024
Investor Presentation Fall/Winter 2024 1
Slide 2: Cautionary Statements
Company Overview Performance Opportunity Cautionary Statements Cautionary statement regarding forward-looking statements. Certain statements in this earnings release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-
Slide 3: Who We Are
Company Overview Performance Opportunity Who We Are Committed to Becoming the Premier Title Services Company About Stewart Who We Serve Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers and
Slide 4: What Drives Us
Company Overview Performance Opportunity What Drives Us 4
Slide 5: Core Businesses
Company Overview Performance Opportunity Core Businesses DIRECT OPERATIONS Escrow, title services and underwriting for residential purchase, new build, residential refinance and commercial transactions with a focus on local realtor, builder, lender, and consumer relationships COMMERCIAL SERVICES Tit
Slide 6: Multi-phase Strategic Journey
Company Overview Performance Opportunity Multi-phase Strategic Journey Focus & Fortify Position Expand & Innovate Sustain Performance & Position 2020-2023 2024-2027 2028 & beyond Invest in the company to Win share across all create long-term value core business lines ✓ Gained scale in attractive tit
Slide 7: STC By the Numbers
Company Overview Performance Opportunity STC By the Numbers YTD 2024 as of Q3 2024 results 11% #2 in Canada $1.8B Adjusted Revenues Market share #3 in Direct Channel (FY 2023) #4 in Agency Channel $1.4B Shareholder’s Equity $67.7M Operating Cash Flow 6,800+ Global Employees $62.8M Adjusted Net Incom
Slide 8: Strong Financial Performance & Solid Balance Sheet
Company Overview Performance Opportunity Strong Financial Performance & Solid Balance Sheet Adjusted Revenues Adjusted Pretax Margin $3,282 YTD results (through Q3) have 13.2% $3,032 improved year over year in an even more challenged housing market. 9.9% 9.5% $2,290 $2,257 $1,897 $1,813 $1,680 +8% 5
Slide 9: Margin Improvement On The Journey
Company Overview Performance Opportunity Margin Improvement On The Journey We have stabilized our margin since beginning our journey in 2019, and our margin is stronger than it was the 10 years prior to the journey in even harsher market conditions. 13.2% 9.9% 9.5% 5.2% 5.4% 4.8% 4.7% 4.4% 3.8% 3.8%
Slide 10: Ability to Achieve Consistent Double-Digit Margin
Company Overview Performance Opportunity Ability to Achieve Consistent Double-Digit Margin We have made significant improvements to our operations and believe we will achieve double digit margin when the macro housing environment returns to more normal levels (5M units sold) Focus on Scale Ease of U
Slide 11: Greater Opportunity to Win Share
Company Overview Performance Opportunity Greater Opportunity to Win Share Portion of market available for us to win is significantly larger than that of our competition Title Market Share Commercial Share versus Significant Opportunity to Grow in As of Q4 2023 Top 2 Players Top 10 States (By Premium
Slide 12: Appendix
Appendix Reconciliations FY 2019 - Q3 2024 12
Slide 13: Non-GAAP Reconciliation: Revenue
Appendix Non-GAAP Reconciliation: Revenue YTD YTD 2019 2020 2021 2022 2023 2023 2024 GAAP total revenues $1,940 $2,288 $3,306 $3,069 $2,257 $1,675 $1,824 Non-GAAP adjustments: Net realized and unrealized -$43 $2 -$24 $2 $0 $5 -$11 (gains) losses Other revenues $0 $0 $0 -$39 $0 $0 $0 Adjusted total r
Slide 14: Non-GAAP Reconciliation: Net Income
Appendix Non-GAAP Reconciliation: Net Income YTD YTD 2019 2020 2021 2022 2023 2023 2024 GAAP net income $79 $155 $323 $162 $30 $22 $51 Non-GAAP pretax adjustments: Net realized and ($43) $2 ($24) $2 $0 $5 ($11) unrealized (gains) losses Acquired intangible asset amortization $10 $4 $19 $33 $36 $27 $
Slide 15: Non-GAAP Reconciliation: Pre-Tax Margin
Appendix Non-GAAP Reconciliation: Pre-Tax Margin YTD YTD 2019 2020 2021 2022 2023 2023 2024 GAAP pretax income $117 $219 $434 $233 $61 $42 $79 Non-GAAP pretax adjustments: Net realized and ($43) $2 ($24) $2 $0 $5 ($11) unrealized (gains) losses Acquired intangible asset amortization $10 $4 $19 $33 $
Slide 16: Non-GAAP Reconciliation: Book Value
Appendix Non-GAAP Reconciliation: Book Value YTD YTD 2019 2020 2021 2022 2023 2023 2024 Stockholder equity $747 $1,005 $1,282 $1,362 $1,371 $1,351 $1,407 attributable to Stewart Accumulated other ($3) $17 $253 ($51) ($35) ($59) ($24) comprehensive income/loss (AOCI) Book value (excluding AOCI) $750
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