FAF Q2 2018 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q2 2018 Earnings

Reported July 26, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$1.5B	$1.3B	$1.5B	14.9%	2.5%
Op. Income	$202M	$93M	$184M	117.0%	9.7%
Gross Margin	62.9%	60.1%	62.4%	2.8pp	0.5pp
Net Margin	10.4%	5.9%	8.4%	4.5pp	2.0pp
EPS (Diluted)	$1.37	$0.67	$1.09	104.5%	25.7%
Free Cash Flow	$178M	$21M	$189M	752.7%	-6.0%

Revenue Flow

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$553M
GROSS PROFIT	$938M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$449M
SG&A Expenses	$449M
Other Expenses	$287M
Operating Expenses	$736M
Cost & Expenses	$1.3B
OPERATING INCOME	$202M
Interest Income	$0
Interest Expense	$10M
Other Income/Expenses	$0
INCOME BEFORE TAX	$202M
Income Tax Expense	$47M
Net Income from Continuing Ops	$155M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$155M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$155M
D&A	$31M
EBIT	$212M
EBITDA	$243M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$553M
GROSS PROFIT	$938M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$449M
SG&A Expenses	$449M
Other Expenses	$287M
Operating Expenses	$736M
Cost & Expenses	$1.3B
OPERATING INCOME	$202M
Interest Income	$0
Interest Expense	$10M
Other Income/Expenses	$0
INCOME BEFORE TAX	$202M
Income Tax Expense	$47M
Net Income from Continuing Ops	$155M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$155M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$155M
D&A	$31M
EBIT	$212M
EBITDA	$243M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$155M
Depreciation & Amortization	$31M
Stock-Based Compensation	$8M
Deferred Income Tax	$1M
Other Non-Cash Items	$587.0K
Change in Working Capital	$15M
OPERATING CASH FLOW	$211M
Capital Expenditure	-$33M
Acquisitions (Net)	-$49M
Purchases of Investments	-$581M
Sales/Maturities of Investments	$413M
Other Investing Activities	-$29M
NET CASH FROM INVESTING	-$279M
Net Debt Issuance	$25M
Common Stock Repurchased	$0
Common Dividends Paid	-$42M
Other Financing Activities	$138M
NET CASH FROM FINANCING	$121M
FREE CASH FLOW	$178M
Net Change in Cash	$50M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$349M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.6B
PP&E (Net)	$446M
Goodwill	$1.2B
Intangible Assets	$104M
Long-Term Investments	$5.6B
Tax Assets	$23M
Other Non-Current Assets	-$5.6B
TOTAL NON-CURRENT ASSETS	$1.7B
TOTAL ASSETS	$10.0B
Account Payables	$771M
Short-Term Debt	$96M
Deferred Revenue	$240M
Other Current Liabilities	-$872M
TOTAL CURRENT LIABILITIES	$245M
Long-Term Debt	$736M
Deferred Revenue NC	$240M
Deferred Tax Liabilities	$219M
Other Non-Current Liabilities	$4.1B
TOTAL NON-CURRENT LIABILITIES	$1.2B
TOTAL LIABILITIES	$6.4B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$1.5B
Treasury Stock	$0
Accum. Other Comp. Income	-$181M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.6B
Minority Interest	$2M
TOTAL EQUITY	$3.6B
TOTAL LIABILITIES & EQUITY	$10.0B
Total Debt	$833M
Net Debt	-$435M