FAF FY 2011 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

FY 2011 Earnings

Reported February 27, 2012

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$3.8B	—	$3.9B	—	-2.2%
Op. Income	$130M	—	$212M	—	-38.6%
Gross Margin	57.7%	—	60.5%	—	-2.8pp
Net Margin	2.0%	—	3.3%	—	-1.2pp
EPS (Diluted)	$0.73	—	$1.20	—	-39.2%
Free Cash Flow	$64M	—	$67M	—	-4.2%

Revenue Flow

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$1.6B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$1.2B
General & Administrative	$1.2B
SG&A Expenses	$1.2B
Other Expenses	$896M
Operating Expenses	$2.1B
Cost & Expenses	$3.7B
OPERATING INCOME	$130M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$130M
Income Tax Expense	$52M
Net Income from Continuing Ops	$79M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$78M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$78M
D&A	$77M
EBIT	$142M
EBITDA	$219M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$1.6B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$1.2B
General & Administrative	$1.2B
SG&A Expenses	$1.2B
Other Expenses	$896M
Operating Expenses	$2.1B
Cost & Expenses	$3.7B
OPERATING INCOME	$130M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$130M
Income Tax Expense	$52M
Net Income from Continuing Ops	$79M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$78M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$78M
D&A	$77M
EBIT	$142M
EBITDA	$219M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$79M
Depreciation & Amortization	$77M
Stock-Based Compensation	$15M
Deferred Income Tax	$3M
Other Non-Cash Items	$429M
Change in Working Capital	-$469M
OPERATING CASH FLOW	$134M
Capital Expenditure	-$70M
Acquisitions (Net)	-$7M
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$998M
Other Investing Activities	$54M
NET CASH FROM INVESTING	-$30M
Net Debt Issuance	$1M
Common Stock Repurchased	-$3M
Common Dividends Paid	-$25M
Other Financing Activities	-$389M
NET CASH FROM FINANCING	-$414M
FREE CASH FLOW	$64M
Net Change in Cash	-$310M

Balance Sheet

Item	Amount
Cash & Equivalents	$418M
Short-Term Investments	$0
Net Receivables	$228M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$646M
PP&E (Net)	$338M
Goodwill	$818M
Intangible Assets	$60M
Long-Term Investments	$2.4B
Tax Assets	$40M
Other Non-Current Assets	-$2.4B
TOTAL NON-CURRENT ASSETS	$1.3B
TOTAL ASSETS	$5.4B
Account Payables	$28M
Short-Term Debt	$0
Deferred Revenue	$156M
Other Current Liabilities	-$231M
TOTAL CURRENT LIABILITIES	$183M
Long-Term Debt	$300M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	-$300M
TOTAL NON-CURRENT LIABILITIES	$300M
TOTAL LIABILITIES	$3.3B
Common Stock	$1.0K
Additional Paid-In Capital	$2.1B
Retained Earnings	$125M
Treasury Stock	$0
Accum. Other Comp. Income	-$177M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.0B
Minority Interest	$6M
TOTAL EQUITY	$2.0B
TOTAL LIABILITIES & EQUITY	$5.4B
Total Debt	$300M
Net Debt	-$118M