FAF Q2 2020 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q2 2020 Earnings

Reported July 23, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2020	Q1 2020	Q2 2019	QoQ Change	YoY Change
Revenue	$1.6B	—	$1.5B	—	7.3%
Op. Income	$225M	—	$229M	—	-1.8%
Gross Margin	62.0%	—	64.1%	—	-2.1pp
Net Margin	10.6%	—	12.5%	—	-1.8pp
EPS (Diluted)	$1.52	—	$1.64	—	-7.3%
Free Cash Flow	$315M	—	$240M	—	31.2%

Revenue Flow

Item	Amount
REVENUE	$1.6B
Cost of Revenue	$611M
GROSS PROFIT	$998M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$451M
SG&A Expenses	$451M
Other Expenses	$321M
Operating Expenses	$772M
Cost & Expenses	$1.4B
OPERATING INCOME	$225M
Interest Income	$0
Interest Expense	$13M
Other Income/Expenses	$0
INCOME BEFORE TAX	$225M
Income Tax Expense	$54M
Net Income from Continuing Ops	$172M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$171M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$171M
D&A	$41M
EBIT	$239M
EBITDA	$280M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.6B
Cost of Revenue	$611M
GROSS PROFIT	$998M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$451M
SG&A Expenses	$451M
Other Expenses	$321M
Operating Expenses	$772M
Cost & Expenses	$1.4B
OPERATING INCOME	$225M
Interest Income	$0
Interest Expense	$13M
Other Income/Expenses	$0
INCOME BEFORE TAX	$225M
Income Tax Expense	$54M
Net Income from Continuing Ops	$172M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$171M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$171M
D&A	$41M
EBIT	$239M
EBITDA	$280M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$172M
Depreciation & Amortization	$41M
Stock-Based Compensation	$10M
Deferred Income Tax	$0
Other Non-Cash Items	-$37M
Change in Working Capital	$158M
OPERATING CASH FLOW	$344M
Capital Expenditure	-$29M
Acquisitions (Net)	$45M
Purchases of Investments	-$681M
Sales/Maturities of Investments	$754M
Other Investing Activities	-$101M
NET CASH FROM INVESTING	-$13M
Net Debt Issuance	$199M
Common Stock Repurchased	-$3M
Common Dividends Paid	-$49M
Other Financing Activities	-$9M
NET CASH FROM FINANCING	$138M
FREE CASH FLOW	$315M
Net Change in Cash	$473M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.6B
Short-Term Investments	$0
Net Receivables	$941M
Inventory	$0
Other Current Assets	-$2.5B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$741M
Goodwill	$1.4B
Intangible Assets	$783M
Long-Term Investments	$6.3B
Tax Assets	$0
Other Non-Current Assets	-$9.2B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$12.3B
Account Payables	$781M
Short-Term Debt	$479M
Deferred Revenue	$0
Other Current Liabilities	-$1.4B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.0B
Deferred Revenue NC	$250M
Deferred Tax Liabilities	$266M
Other Non-Current Liabilities	-$1.8B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$7.7B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$2.3B
Treasury Stock	$0
Accum. Other Comp. Income	$11M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.6B
Minority Interest	$10M
TOTAL EQUITY	$4.6B
TOTAL LIABILITIES & EQUITY	$12.3B
Total Debt	$1.8B
Net Debt	$236M