FAF Q3 2018 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q3 2018 Earnings

Reported October 25, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$1.5B	$1.5B	$1.5B	3.4%	1.5%
Op. Income	$196M	$202M	$18M	-3.2%	988.9%
Gross Margin	60.6%	62.9%	59.3%	-2.3pp	1.3pp
Net Margin	9.8%	10.4%	1.4%	-0.6pp	8.4pp
EPS (Diluted)	$1.34	$1.37	$0.19	-2.2%	605.3%
Free Cash Flow	$199M	$178M	$187M	12.2%	6.3%

Revenue Flow

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$608M
GROSS PROFIT	$934M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$450M
SG&A Expenses	$450M
Other Expenses	$289M
Operating Expenses	$739M
Cost & Expenses	$1.3B
OPERATING INCOME	$196M
Interest Income	$0
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$196M
Income Tax Expense	$44M
Net Income from Continuing Ops	$151M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$151M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$151M
D&A	$32M
EBIT	$206M
EBITDA	$238M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$608M
GROSS PROFIT	$934M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$450M
SG&A Expenses	$450M
Other Expenses	$289M
Operating Expenses	$739M
Cost & Expenses	$1.3B
OPERATING INCOME	$196M
Interest Income	$0
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$196M
Income Tax Expense	$44M
Net Income from Continuing Ops	$151M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$151M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$151M
D&A	$32M
EBIT	$206M
EBITDA	$238M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$151M
Depreciation & Amortization	$32M
Stock-Based Compensation	$7M
Deferred Income Tax	-$4M
Other Non-Cash Items	$3M
Change in Working Capital	$41M
OPERATING CASH FLOW	$231M
Capital Expenditure	-$32M
Acquisitions (Net)	$32M
Purchases of Investments	-$757M
Sales/Maturities of Investments	$329M
Other Investing Activities	-$19M
NET CASH FROM INVESTING	-$447M
Net Debt Issuance	-$11M
Common Stock Repurchased	$0
Common Dividends Paid	-$47M
Other Financing Activities	$1.3B
NET CASH FROM FINANCING	$1.2B
FREE CASH FLOW	$199M
Net Change in Cash	$979M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.2B
Short-Term Investments	$0
Net Receivables	$363M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$2.6B
PP&E (Net)	$458M
Goodwill	$1.1B
Intangible Assets	$112M
Long-Term Investments	$6.0B
Tax Assets	$23M
Other Non-Current Assets	-$6.0B
TOTAL NON-CURRENT ASSETS	$1.7B
TOTAL ASSETS	$11.4B
Account Payables	$827M
Short-Term Debt	$87M
Deferred Revenue	$255M
Other Current Liabilities	-$919M
TOTAL CURRENT LIABILITIES	$261M
Long-Term Debt	$735M
Deferred Revenue NC	$255M
Deferred Tax Liabilities	$219M
Other Non-Current Liabilities	$5.4B
TOTAL NON-CURRENT LIABILITIES	$370M
TOTAL LIABILITIES	$7.7B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$1.6B
Treasury Stock	$0
Accum. Other Comp. Income	-$193M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.7B
Minority Interest	$2M
TOTAL EQUITY	$3.7B
TOTAL LIABILITIES & EQUITY	$11.4B
Total Debt	$822M
Net Debt	-$1.4B