FAF Q2 2021 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q2 2021 Earnings

Reported July 22, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2021	Q1 2021	Q2 2020	QoQ Change	YoY Change
Revenue	$2.3B	$2.0B	$1.6B	11.8%	40.9%
Op. Income	$399M	$306M	$225M	30.4%	77.1%
Gross Margin	61.7%	60.0%	62.0%	1.7pp	-0.4pp
Net Margin	13.3%	11.5%	10.6%	1.8pp	2.7pp
EPS (Diluted)	$2.72	$2.10	$1.52	29.5%	78.9%
Free Cash Flow	$214M	$195M	$315M	9.6%	-32.1%

Revenue Flow

Item	Amount
REVENUE	$2.3B
Cost of Revenue	$869M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$588M
SG&A Expenses	$588M
Other Expenses	$410M
Operating Expenses	$998M
Cost & Expenses	$1.9B
OPERATING INCOME	$399M
Interest Income	$0
Interest Expense	$16M
Other Income/Expenses	$0
INCOME BEFORE TAX	$399M
Income Tax Expense	$95M
Net Income from Continuing Ops	$304M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$302M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$302M
D&A	$41M
EBIT	$415M
EBITDA	$456M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$2.3B
Cost of Revenue	$869M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$588M
SG&A Expenses	$588M
Other Expenses	$410M
Operating Expenses	$998M
Cost & Expenses	$1.9B
OPERATING INCOME	$399M
Interest Income	$0
Interest Expense	$16M
Other Income/Expenses	$0
INCOME BEFORE TAX	$399M
Income Tax Expense	$95M
Net Income from Continuing Ops	$304M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$302M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$302M
D&A	$41M
EBIT	$415M
EBITDA	$456M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$304M
Depreciation & Amortization	$41M
Stock-Based Compensation	$9M
Deferred Income Tax	$0
Other Non-Cash Items	-$42M
Change in Working Capital	-$59M
OPERATING CASH FLOW	$253M
Capital Expenditure	-$39M
Acquisitions (Net)	-$4M
Purchases of Investments	-$1.7B
Sales/Maturities of Investments	$953M
Other Investing Activities	$48M
NET CASH FROM INVESTING	-$753M
Net Debt Issuance	-$34M
Common Stock Repurchased	$0
Common Dividends Paid	-$50M
Other Financing Activities	$779M
NET CASH FROM FINANCING	$695M
FREE CASH FLOW	$214M
Net Change in Cash	$197M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.3B
Short-Term Investments	$0
Net Receivables	$1.1B
Inventory	$0
Other Current Assets	-$3.4B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$705M
Goodwill	$1.4B
Intangible Assets	$763M
Long-Term Investments	$8.8B
Tax Assets	$0
Other Non-Current Assets	-$11.6B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$15.4B
Account Payables	$1.1B
Short-Term Debt	$611M
Deferred Revenue	$0
Other Current Liabilities	-$1.7B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.0B
Deferred Revenue NC	$250M
Deferred Tax Liabilities	$291M
Other Non-Current Liabilities	-$1.8B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$10.2B
Common Stock	$1.0K
Additional Paid-In Capital	$2.2B
Retained Earnings	$3.1B
Treasury Stock	$0
Accum. Other Comp. Income	-$12M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.3B
Minority Interest	$11M
TOTAL EQUITY	$5.3B
TOTAL LIABILITIES & EQUITY	$15.4B
Total Debt	$1.9B
Net Debt	-$375M