FAF Q2 2016 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q2 2016 Earnings

Reported July 21, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$1.4B	$1.2B	—	13.3%	—
Op. Income	$154M	$76M	—	103.2%	—
Gross Margin	61.4%	57.4%	—	4.0pp	—
Net Margin	7.5%	4.4%	—	3.1pp	—
EPS (Diluted)	$0.92	$0.47	—	95.7%	—
Free Cash Flow	$172M	-$86M	—	299.1%	—

Revenue Flow

Item	Amount
REVENUE	$1.4B
Cost of Revenue	$526M
GROSS PROFIT	$836M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$418M
SG&A Expenses	$418M
Other Expenses	$264M
Operating Expenses	$682M
Cost & Expenses	$1.2B
OPERATING INCOME	$154M
Interest Income	$0
Interest Expense	$8M
Other Income/Expenses	$0
INCOME BEFORE TAX	$154M
Income Tax Expense	$51M
Net Income from Continuing Ops	$102M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$102M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$102M
D&A	$24M
EBIT	$161M
EBITDA	$185M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.4B
Cost of Revenue	$526M
GROSS PROFIT	$836M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$418M
SG&A Expenses	$418M
Other Expenses	$264M
Operating Expenses	$682M
Cost & Expenses	$1.2B
OPERATING INCOME	$154M
Interest Income	$0
Interest Expense	$8M
Other Income/Expenses	$0
INCOME BEFORE TAX	$154M
Income Tax Expense	$51M
Net Income from Continuing Ops	$102M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$102M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$102M
D&A	$24M
EBIT	$161M
EBITDA	$185M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$102M
Depreciation & Amortization	$24M
Stock-Based Compensation	$6M
Deferred Income Tax	-$3M
Other Non-Cash Items	$2M
Change in Working Capital	$71M
OPERATING CASH FLOW	$203M
Capital Expenditure	-$31M
Acquisitions (Net)	-$18M
Purchases of Investments	-$616M
Sales/Maturities of Investments	$417M
Other Investing Activities	$607.0K
NET CASH FROM INVESTING	-$247M
Net Debt Issuance	-$1M
Common Stock Repurchased	$0
Common Dividends Paid	-$28M
Other Financing Activities	$344M
NET CASH FROM FINANCING	$314M
FREE CASH FLOW	$172M
Net Change in Cash	$266M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$286M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.5B
PP&E (Net)	$413M
Goodwill	$983M
Intangible Assets	$51M
Long-Term Investments	$4.9B
Tax Assets	$22M
Other Non-Current Assets	-$4.9B
TOTAL NON-CURRENT ASSETS	$1.5B
TOTAL ASSETS	$11.8B
Account Payables	$825M
Short-Term Debt	$0
Deferred Revenue	$212M
Other Current Liabilities	-$613M
TOTAL CURRENT LIABILITIES	$260M
Long-Term Debt	$579M
Deferred Revenue NC	$212M
Deferred Tax Liabilities	$133M
Other Non-Current Liabilities	-$925M
TOTAL NON-CURRENT LIABILITIES	$925M
TOTAL LIABILITIES	$8.8B
Common Stock	$1.0K
Additional Paid-In Capital	$2.2B
Retained Earnings	$943M
Treasury Stock	$0
Accum. Other Comp. Income	-$176M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.9B
Minority Interest	$3M
TOTAL EQUITY	$2.9B
TOTAL LIABILITIES & EQUITY	$11.8B
Total Debt	$579M
Net Debt	-$684M