FAF Q3 2019 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q3 2019 Earnings

Reported October 24, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2019	Q2 2019	Q3 2018	QoQ Change	YoY Change
Revenue	$1.7B	$1.5B	$1.5B	11.5%	8.4%
Op. Income	$245M	$229M	$196M	6.9%	25.4%
Gross Margin	61.5%	64.1%	60.6%	-2.6pp	0.9pp
Net Margin	11.2%	12.5%	9.8%	-1.3pp	1.4pp
EPS (Diluted)	$1.65	$1.64	$1.34	0.6%	23.1%
Free Cash Flow	$286M	$240M	$199M	19.3%	43.8%

Revenue Flow

Item	Amount
REVENUE	$1.7B
Cost of Revenue	$644M
GROSS PROFIT	$1.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$471M
SG&A Expenses	$471M
Other Expenses	$312M
Operating Expenses	$782M
Cost & Expenses	$1.4B
OPERATING INCOME	$245M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$245M
Income Tax Expense	$57M
Net Income from Continuing Ops	$188M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$187M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$187M
D&A	$32M
EBIT	$258M
EBITDA	$289M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.7B
Cost of Revenue	$644M
GROSS PROFIT	$1.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$471M
SG&A Expenses	$471M
Other Expenses	$312M
Operating Expenses	$782M
Cost & Expenses	$1.4B
OPERATING INCOME	$245M
Interest Income	$0
Interest Expense	$12M
Other Income/Expenses	$0
INCOME BEFORE TAX	$245M
Income Tax Expense	$57M
Net Income from Continuing Ops	$188M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$187M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$187M
D&A	$32M
EBIT	$258M
EBITDA	$289M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$188M
Depreciation & Amortization	$32M
Stock-Based Compensation	$8M
Deferred Income Tax	$6M
Other Non-Cash Items	$22M
Change in Working Capital	$55M
OPERATING CASH FLOW	$311M
Capital Expenditure	-$24M
Acquisitions (Net)	-$15M
Purchases of Investments	-$471M
Sales/Maturities of Investments	$605M
Other Investing Activities	-$152M
NET CASH FROM INVESTING	-$58M
Net Debt Issuance	$42M
Common Stock Repurchased	$0
Common Dividends Paid	-$47M
Other Financing Activities	$55M
NET CASH FROM FINANCING	$50M
FREE CASH FLOW	$286M
Net Change in Cash	$299M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.7B
Short-Term Investments	$0
Net Receivables	$352M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$2.1B
PP&E (Net)	$736M
Goodwill	$1.1B
Intangible Assets	$93M
Long-Term Investments	$6.3B
Tax Assets	$17M
Other Non-Current Assets	-$6.0B
TOTAL NON-CURRENT ASSETS	$2.3B
TOTAL ASSETS	$11.8B
Account Payables	$812M
Short-Term Debt	$0
Deferred Revenue	$261M
Other Current Liabilities	$499M
TOTAL CURRENT LIABILITIES	$352M
Long-Term Debt	$728M
Deferred Revenue NC	$261M
Deferred Tax Liabilities	$217M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$1.5B
TOTAL LIABILITIES	$7.6B
Common Stock	$1.0K
Additional Paid-In Capital	$2.3B
Retained Earnings	$2.0B
Treasury Stock	$0
Accum. Other Comp. Income	-$32M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.2B
Minority Interest	$4M
TOTAL EQUITY	$4.2B
TOTAL LIABILITIES & EQUITY	$11.8B
Total Debt	$1.3B
Net Debt	-$468M