FAF Q2 2019 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q2 2019 Earnings

Reported July 25, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$1.5B	$1.3B	$1.5B	15.0%	0.5%
Op. Income	$229M	$142M	$202M	62.0%	13.6%
Gross Margin	64.1%	62.1%	62.9%	2.0pp	1.2pp
Net Margin	12.5%	8.4%	10.4%	4.0pp	2.1pp
EPS (Diluted)	$1.64	$0.97	$1.37	69.1%	19.7%
Free Cash Flow	$240M	$7M	$178M	3288.5%	35.2%

Revenue Flow

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$538M
GROSS PROFIT	$960M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$447M
SG&A Expenses	$447M
Other Expenses	$284M
Operating Expenses	$731M
Cost & Expenses	$1.3B
OPERATING INCOME	$229M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$229M
Income Tax Expense	$42M
Net Income from Continuing Ops	$187M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$187M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$187M
D&A	$33M
EBIT	$241M
EBITDA	$274M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$538M
GROSS PROFIT	$960M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$447M
SG&A Expenses	$447M
Other Expenses	$284M
Operating Expenses	$731M
Cost & Expenses	$1.3B
OPERATING INCOME	$229M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$229M
Income Tax Expense	$42M
Net Income from Continuing Ops	$187M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$187M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$187M
D&A	$33M
EBIT	$241M
EBITDA	$274M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$187M
Depreciation & Amortization	$33M
Stock-Based Compensation	$8M
Deferred Income Tax	-$1M
Other Non-Cash Items	-$190.0K
Change in Working Capital	$40M
OPERATING CASH FLOW	$267M
Capital Expenditure	-$27M
Acquisitions (Net)	-$5M
Purchases of Investments	-$496M
Sales/Maturities of Investments	$517M
Other Investing Activities	-$67M
NET CASH FROM INVESTING	-$77M
Net Debt Issuance	$61M
Common Stock Repurchased	$0
Common Dividends Paid	-$47M
Other Financing Activities	-$129M
NET CASH FROM FINANCING	-$115M
FREE CASH FLOW	$240M
Net Change in Cash	$75M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.5B
Short-Term Investments	$0
Net Receivables	$352M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.8B
PP&E (Net)	$752M
Goodwill	$1.2B
Intangible Assets	$97M
Long-Term Investments	$6.4B
Tax Assets	$17M
Other Non-Current Assets	-$6.1B
TOTAL NON-CURRENT ASSETS	$2.3B
TOTAL ASSETS	$15.5B
Account Payables	$709M
Short-Term Debt	$0
Deferred Revenue	$243M
Other Current Liabilities	-$818M
TOTAL CURRENT LIABILITIES	$352M
Long-Term Debt	$730M
Deferred Revenue NC	$243M
Deferred Tax Liabilities	$217M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$1.5B
TOTAL LIABILITIES	$11.4B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$1.8B
Treasury Stock	$0
Accum. Other Comp. Income	-$38M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.1B
Minority Interest	$3M
TOTAL EQUITY	$4.1B
TOTAL LIABILITIES & EQUITY	$15.5B
Total Debt	$1.2B
Net Debt	-$205M