FAF FY 2020 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

FY 2020 Earnings

Reported February 16, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2020	Prior Q	FY 2019	QoQ Change	YoY Change
Revenue	$7.1B	—	$6.2B	—	14.2%
Op. Income	$923M	—	$905M	—	2.0%
Gross Margin	61.0%	—	62.6%	—	-1.6pp
Net Margin	9.8%	—	11.4%	—	-1.6pp
EPS (Diluted)	$6.16	—	$6.22	—	-1.0%
Free Cash Flow	$971M	—	$806M	—	20.4%

Revenue Flow

Item	Amount
REVENUE	$7.1B
Cost of Revenue	$2.8B
GROSS PROFIT	$4.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.9B
SG&A Expenses	$1.9B
Other Expenses	$1.5B
Operating Expenses	$3.4B
Cost & Expenses	$6.2B
OPERATING INCOME	$923M
Interest Income	$206M
Interest Expense	$57M
Other Income/Expenses	$0
INCOME BEFORE TAX	$923M
Income Tax Expense	$223M
Net Income from Continuing Ops	$700M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$696M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$696M
D&A	$149M
EBIT	$980M
EBITDA	$1.1B
EPS	$6
EPS Diluted	$6

Income Statement

Item	Amount
REVENUE	$7.1B
Cost of Revenue	$2.8B
GROSS PROFIT	$4.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.9B
SG&A Expenses	$1.9B
Other Expenses	$1.5B
Operating Expenses	$3.4B
Cost & Expenses	$6.2B
OPERATING INCOME	$923M
Interest Income	$206M
Interest Expense	$57M
Other Income/Expenses	$0
INCOME BEFORE TAX	$923M
Income Tax Expense	$223M
Net Income from Continuing Ops	$700M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$696M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$696M
D&A	$149M
EBIT	$980M
EBITDA	$1.1B
EPS	$6
EPS Diluted	$6

Cash Flow Statement

Item	Amount
Net Income	$700M
Depreciation & Amortization	$149M
Stock-Based Compensation	$52M
Deferred Income Tax	-$10M
Other Non-Cash Items	$68M
Change in Working Capital	$125M
OPERATING CASH FLOW	$1.1B
Capital Expenditure	-$114M
Acquisitions (Net)	-$462M
Purchases of Investments	-$2.9B
Sales/Maturities of Investments	$2.5B
Other Investing Activities	-$446M
NET CASH FROM INVESTING	-$1.4B
Net Debt Issuance	$515M
Common Stock Repurchased	-$139M
Common Dividends Paid	-$199M
Other Financing Activities	-$63M
NET CASH FROM FINANCING	$114M
FREE CASH FLOW	$971M
Net Change in Cash	-$210M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$386M
Inventory	$0
Other Current Assets	-$1.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$711M
Goodwill	$1.4B
Intangible Assets	$779M
Long-Term Investments	$7.1B
Tax Assets	$0
Other Non-Current Assets	-$10.0B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$12.8B
Account Payables	$56M
Short-Term Debt	$516M
Deferred Revenue	$0
Other Current Liabilities	-$1.1B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.0B
Deferred Revenue NC	$272M
Deferred Tax Liabilities	$291M
Other Non-Current Liabilities	-$1.9B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$7.9B
Common Stock	$0
Additional Paid-In Capital	$2.2B
Retained Earnings	$2.7B
Treasury Stock	$0
Accum. Other Comp. Income	$40M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.9B
Minority Interest	$12M
TOTAL EQUITY	$4.9B
TOTAL LIABILITIES & EQUITY	$12.8B
Total Debt	$1.8B
Net Debt	$502M