FAF FY 2013 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

FY 2013 Earnings

Reported February 25, 2014

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2013	Prior Q	FY 2012	QoQ Change	YoY Change
Revenue	$5.0B	—	$4.5B	—	9.1%
Op. Income	$311M	—	$467M	—	-33.5%
Gross Margin	56.3%	—	61.1%	—	-4.8pp
Net Margin	3.8%	—	6.6%	—	-2.9pp
EPS (Diluted)	$1.71	—	$2.77	—	-38.3%
Free Cash Flow	$291M	—	$346M	—	-15.7%

Revenue Flow

Item	Amount
REVENUE	$5.0B
Cost of Revenue	$2.2B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.5B
SG&A Expenses	$1.5B
Other Expenses	$988M
Operating Expenses	$2.5B
Cost & Expenses	$4.6B
OPERATING INCOME	$311M
Interest Income	$0
Interest Expense	$15M
Other Income/Expenses	$0
INCOME BEFORE TAX	$311M
Income Tax Expense	$124M
Net Income from Continuing Ops	$187M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$186M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$186M
D&A	$75M
EBIT	$326M
EBITDA	$401M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.0B
Cost of Revenue	$2.2B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.5B
SG&A Expenses	$1.5B
Other Expenses	$988M
Operating Expenses	$2.5B
Cost & Expenses	$4.6B
OPERATING INCOME	$311M
Interest Income	$0
Interest Expense	$15M
Other Income/Expenses	$0
INCOME BEFORE TAX	$311M
Income Tax Expense	$124M
Net Income from Continuing Ops	$187M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$186M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$186M
D&A	$75M
EBIT	$326M
EBITDA	$401M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$187M
Depreciation & Amortization	$75M
Stock-Based Compensation	$22M
Deferred Income Tax	$18M
Other Non-Cash Items	$25M
Change in Working Capital	$52M
OPERATING CASH FLOW	$378M
Capital Expenditure	-$87M
Acquisitions (Net)	-$6M
Purchases of Investments	-$1.5B
Sales/Maturities of Investments	$1.1B
Other Investing Activities	$44M
NET CASH FROM INVESTING	-$465M
Net Debt Issuance	$81M
Common Stock Repurchased	-$65M
Common Dividends Paid	-$51M
Other Financing Activities	$288M
NET CASH FROM FINANCING	$253M
FREE CASH FLOW	$291M
Net Change in Cash	$164M

Balance Sheet

Item	Amount
Cash & Equivalents	$858M
Short-Term Investments	$0
Net Receivables	$237M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.1B
PP&E (Net)	$361M
Goodwill	$846M
Intangible Assets	$46M
Long-Term Investments	$3.2B
Tax Assets	$55M
Other Non-Current Assets	-$3.2B
TOTAL NON-CURRENT ASSETS	$1.3B
TOTAL ASSETS	$9.0B
Account Payables	$26M
Short-Term Debt	$0
Deferred Revenue	$192M
Other Current Liabilities	-$281M
TOTAL CURRENT LIABILITIES	$219M
Long-Term Debt	$310M
Deferred Revenue NC	$192M
Deferred Tax Liabilities	$55M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$557M
TOTAL LIABILITIES	$6.5B
Common Stock	$1.0K
Additional Paid-In Capital	$2.1B
Retained Earnings	$521M
Treasury Stock	$0
Accum. Other Comp. Income	-$146M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.5B
Minority Interest	$3M
TOTAL EQUITY	$2.5B
TOTAL LIABILITIES & EQUITY	$9.0B
Total Debt	$310M
Net Debt	-$548M