FAF FY 2019 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

FY 2019 Earnings

Reported February 18, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2019	Prior Q	FY 2018	QoQ Change	YoY Change
Revenue	$6.2B	—	$5.7B	—	7.9%
Op. Income	$905M	—	$610M	—	48.5%
Gross Margin	62.6%	—	60.8%	—	1.8pp
Net Margin	11.4%	—	8.3%	—	3.1pp
EPS (Diluted)	$6.22	—	$4.19	—	48.4%
Free Cash Flow	$806M	—	$675M	—	19.4%

Revenue Flow

Item	Amount
REVENUE	$6.2B
Cost of Revenue	$2.3B
GROSS PROFIT	$3.9B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.8B
SG&A Expenses	$1.8B
Other Expenses	$1.2B
Operating Expenses	$3.0B
Cost & Expenses	$5.3B
OPERATING INCOME	$905M
Interest Income	$298M
Interest Expense	$48M
Other Income/Expenses	$0
INCOME BEFORE TAX	$905M
Income Tax Expense	$195M
Net Income from Continuing Ops	$710M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$707M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$707M
D&A	$129M
EBIT	$953M
EBITDA	$1.1B
EPS	$6
EPS Diluted	$6

Income Statement

Item	Amount
REVENUE	$6.2B
Cost of Revenue	$2.3B
GROSS PROFIT	$3.9B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.8B
SG&A Expenses	$1.8B
Other Expenses	$1.2B
Operating Expenses	$3.0B
Cost & Expenses	$5.3B
OPERATING INCOME	$905M
Interest Income	$298M
Interest Expense	$48M
Other Income/Expenses	$0
INCOME BEFORE TAX	$905M
Income Tax Expense	$195M
Net Income from Continuing Ops	$710M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$707M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$707M
D&A	$129M
EBIT	$953M
EBITDA	$1.1B
EPS	$6
EPS Diluted	$6

Cash Flow Statement

Item	Amount
Net Income	$710M
Depreciation & Amortization	$129M
Stock-Based Compensation	$42M
Deferred Income Tax	-$37M
Other Non-Cash Items	$24M
Change in Working Capital	$45M
OPERATING CASH FLOW	$913M
Capital Expenditure	-$107M
Acquisitions (Net)	-$121M
Purchases of Investments	-$2.3B
Sales/Maturities of Investments	$2.3B
Other Investing Activities	-$218M
NET CASH FROM INVESTING	-$452M
Net Debt Issuance	$196M
Common Stock Repurchased	-$2M
Common Dividends Paid	-$188M
Other Financing Activities	-$451M
NET CASH FROM FINANCING	-$445M
FREE CASH FLOW	$806M
Net Change in Cash	$19M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.5B
Short-Term Investments	$0
Net Receivables	$335M
Inventory	$0
Other Current Assets	-$1.9B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$733M
Goodwill	$1.2B
Intangible Assets	$672M
Long-Term Investments	$6.3B
Tax Assets	$0
Other Non-Current Assets	-$8.9B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$11.5B
Account Payables	$59M
Short-Term Debt	$438M
Deferred Revenue	$0
Other Current Liabilities	-$845M
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$568M
Deferred Revenue NC	$252M
Deferred Tax Liabilities	$266M
Other Non-Current Liabilities	-$1.4B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$7.1B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$2.2B
Treasury Stock	$0
Accum. Other Comp. Income	-$41M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.4B
Minority Interest	$5M
TOTAL EQUITY	$4.4B
TOTAL LIABILITIES & EQUITY	$11.5B
Total Debt	$1.3B
Net Debt	-$201M