FAF Q4 2020 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q4 2020 Earnings

Reported February 16, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2020	Q3 2020	Q4 2019	QoQ Change	YoY Change
Revenue	$2.1B	$1.9B	$1.7B	12.1%	24.3%
Op. Income	$382M	$243M	$289M	57.1%	32.5%
Gross Margin	61.3%	61.8%	62.7%	-0.5pp	-1.3pp
Net Margin	13.1%	9.5%	13.0%	3.5pp	0.1pp
EPS (Diluted)	$2.49	$1.62	$1.97	53.7%	26.4%
Free Cash Flow	$381M	$280M	$273M	36.3%	39.8%

Revenue Flow

Item	Amount
REVENUE	$2.1B
Cost of Revenue	$829M
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$549M
SG&A Expenses	$549M
Other Expenses	$385M
Operating Expenses	$934M
Cost & Expenses	$1.8B
OPERATING INCOME	$382M
Interest Income	$0
Interest Expense	$16M
Other Income/Expenses	$0
INCOME BEFORE TAX	$382M
Income Tax Expense	$101M
Net Income from Continuing Ops	$281M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$280M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$280M
D&A	$38M
EBIT	$398M
EBITDA	$437M
EPS	$3
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$2.1B
Cost of Revenue	$829M
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$549M
SG&A Expenses	$549M
Other Expenses	$385M
Operating Expenses	$934M
Cost & Expenses	$1.8B
OPERATING INCOME	$382M
Interest Income	$0
Interest Expense	$16M
Other Income/Expenses	$0
INCOME BEFORE TAX	$382M
Income Tax Expense	$101M
Net Income from Continuing Ops	$281M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$280M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$280M
D&A	$38M
EBIT	$398M
EBITDA	$437M
EPS	$3
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$281M
Depreciation & Amortization	$38M
Stock-Based Compensation	$7M
Deferred Income Tax	-$63M
Other Non-Cash Items	-$4M
Change in Working Capital	$144M
OPERATING CASH FLOW	$404M
Capital Expenditure	-$22M
Acquisitions (Net)	-$17M
Purchases of Investments	-$790M
Sales/Maturities of Investments	$537M
Other Investing Activities	-$27M
NET CASH FROM INVESTING	-$320M
Net Debt Issuance	-$12M
Common Stock Repurchased	-$70M
Common Dividends Paid	-$51M
Other Financing Activities	-$219M
NET CASH FROM FINANCING	-$352M
FREE CASH FLOW	$381M
Net Change in Cash	-$237M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$386M
Inventory	$0
Other Current Assets	-$1.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$711M
Goodwill	$1.4B
Intangible Assets	$779M
Long-Term Investments	$7.1B
Tax Assets	$0
Other Non-Current Assets	-$10.0B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$12.8B
Account Payables	$56M
Short-Term Debt	$516M
Deferred Revenue	$0
Other Current Liabilities	-$1.1B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.0B
Deferred Revenue NC	$272M
Deferred Tax Liabilities	$291M
Other Non-Current Liabilities	-$1.9B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$7.9B
Common Stock	$0
Additional Paid-In Capital	$2.2B
Retained Earnings	$2.7B
Treasury Stock	$0
Accum. Other Comp. Income	$40M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.9B
Minority Interest	$12M
TOTAL EQUITY	$4.9B
TOTAL LIABILITIES & EQUITY	$12.8B
Total Debt	$1.8B
Net Debt	$502M