Item 2.02 Results of Operations and Financial Condition.
The financial information, results of operation and other information regarding
the quarter ended September 30, 2009 included in the "Recent Developments"
discussion furnished herewith as Exhibit 99.1, as described below under
Item 7.01, is incorporated by reference into this Item 2.02.
Item 7.01. Regulation FD Disclosure.
On October 8, 2009, we announced our intention to offer, subject to market and
other conditions, $60,000,000 aggregate principal amount of convertible senior
notes due 2014 (the "Notes") to "qualified institutional buyers" as that term is
defined in, and in accordance with Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). We do not as a matter of course make public
disclosure of results for a partial quarterly period. However, in the context of
this offering our management is disclosing the information furnished herewith as
Exhibit 99.1. The financial information, results of operation and other
information presented in Exhibit 99.1 was prepared on a reasonable basis,
reflects the best currently available results, estimates and judgments, and
presents, to the best of management's knowledge and belief, the expected
results.
Neither our independent registered public accountants, nor any other independent
registered public accountants, have compiled, examined or performed any
procedures with respect to the financial information contained therein, nor have
they expressed any opinion on such information or its achievability, and assume
no responsibility for, and disclaim any association with, the information.
The information contained in this Current Report on Form 8-K under Item 2.02 and
Item 7.01, including Exhibit 99.1, is not deemed to be "filed" for the purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, and is not
incorporated by reference into any filing under the Securities Act, except as is
expressly set forth by specific reference in such a filing. In furnishing this
information, including Exhibit 99.1 hereto, we make no admission as to the
materiality of any such information.
Forward-looking statements.
Certain statements in this Current Report on Form 8-K are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements relate to future, not past, events and
often address our expected future business and financial performance. These
statements often contain words such as "expect," "anticipate," "intend," "plan,"
"believe," "seek," "will" or other similar words. Forward-looking statements by
their nature are subject to various risks and uncertainties that could cause our
actual results to be materially different than those expressed in the
forward-looking statements. These risks and uncertainties include, among other
things, the severity and duration of current financial and economic conditions,
continued weakness or further adverse changes in the level of real estate
activity, our ability to respond to and implement technology changes, including
the completion of the implementation of our enterprise systems, including the
implementation of our enterprise systems the impact of unanticipated title
losses on the need to further strengthen our policy loss reserves, any effect of
title losses on our cash flows and financial condition, the impact of our
increased diligence and inspections in our agency operations, the impact of
changes in governmental and insurance regulations, our dependence on our
operating subsidiaries as a source of cash flow, the continued realization of
expected expense savings resulting from our expense reduction steps taken in
2008, our ability to access the equity and debt financing markets, our ability
to grow our international operations, and our ability to respond to the actions
of our competitors. These risks and uncertainties, as well as others, are
discussed in more detail in our documents filed with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year ended
December 31, 2008 and our Current Reports on Form 8-K. We expressly disclaim any
obligation to update any forward-looking statements contained in this news
release to reflect events or circumstances that may arise after the date hereof,
except as may be required by applicable law.
Item 8.01 Other Events.
On October 8, 2009, we issued a press release announcing our intention to offer,
subject to market and other conditions, the Notes to qualified institutional
buyers in accordance with Rule 144A under the Securities Act.
Neither the press release nor this Current Report on Form 8-K constitutes an
offer to sell or the solicitation of an offer to buy securities. Any offers of
the securities will be made only by means of a private offering memorandum. The
Notes, the subsidiary guarantees and the underlying shares of common stock that
may be delivered upon conversion of the Notes have not been registered under the
Securities Act, and may not be offered or sold in the United States except
pursuant to an effective registration statement or an exemption from the
registration requirements of the Securities Act and applicable state laws.
A copy of the press release is attached to this Current Report on Form 8-K as
Exhibit 99.2 and is incorporated by reference herein and filed for the purpose
of complying with Rule 135c under the Securities Act.
Item 9.01. Financial Statements and Exhibits.
99.1 Recent Developments
99.2 Press Release of Stewart Information Services Corporation, dated
October 8, 2009.