FAF Q4 2021 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q4 2021 Earnings

Reported February 17, 2022

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2021	Q3 2021	Q4 2020	QoQ Change	YoY Change
Revenue	$2.4B	—	$2.1B	—	10.3%
Op. Income	$333M	—	$382M	—	-12.8%
Gross Margin	60.0%	—	61.3%	—	-1.3pp
Net Margin	11.0%	—	13.1%	—	-2.1pp
EPS (Diluted)	$2.33	—	$2.49	—	-6.4%
Free Cash Flow	$294M	—	$381M	—	-22.8%

Revenue Flow

Item	Amount
REVENUE	$2.4B
Cost of Revenue	$946M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$642M
SG&A Expenses	$642M
Other Expenses	$444M
Operating Expenses	$1.1B
Cost & Expenses	$2.0B
OPERATING INCOME	$333M
Interest Income	$0
Interest Expense	$20M
Other Income/Expenses	$0
INCOME BEFORE TAX	$333M
Income Tax Expense	$73M
Net Income from Continuing Ops	$261M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$260M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$260M
D&A	$40M
EBIT	$353M
EBITDA	$393M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$2.4B
Cost of Revenue	$946M
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$642M
SG&A Expenses	$642M
Other Expenses	$444M
Operating Expenses	$1.1B
Cost & Expenses	$2.0B
OPERATING INCOME	$333M
Interest Income	$0
Interest Expense	$20M
Other Income/Expenses	$0
INCOME BEFORE TAX	$333M
Income Tax Expense	$73M
Net Income from Continuing Ops	$261M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$260M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$260M
D&A	$40M
EBIT	$353M
EBITDA	$393M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$261M
Depreciation & Amortization	$40M
Stock-Based Compensation	$7M
Deferred Income Tax	$9M
Other Non-Cash Items	$2M
Change in Working Capital	$26M
OPERATING CASH FLOW	$344M
Capital Expenditure	-$50M
Acquisitions (Net)	-$126M
Purchases of Investments	-$1.2B
Sales/Maturities of Investments	$756M
Other Investing Activities	$94M
NET CASH FROM INVESTING	-$565M
Net Debt Issuance	-$70M
Common Stock Repurchased	-$20M
Common Dividends Paid	-$56M
Other Financing Activities	-$362M
NET CASH FROM FINANCING	-$507M
FREE CASH FLOW	$294M
Net Change in Cash	-$726M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$452M
Inventory	$0
Other Current Assets	-$1.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$755M
Goodwill	$1.6B
Intangible Assets	$805M
Long-Term Investments	$10.5B
Tax Assets	$0
Other Non-Current Assets	-$13.7B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$16.5B
Account Payables	$87M
Short-Term Debt	$538M
Deferred Revenue	$0
Other Current Liabilities	-$1.3B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.6B
Deferred Revenue NC	$224M
Deferred Tax Liabilities	$345M
Other Non-Current Liabilities	-$2.5B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$10.7B
Common Stock	$0
Additional Paid-In Capital	$2.2B
Retained Earnings	$3.7B
Treasury Stock	$0
Accum. Other Comp. Income	-$92M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.8B
Minority Interest	$16M
TOTAL EQUITY	$5.8B
TOTAL LIABILITIES & EQUITY	$16.5B
Total Debt	$2.5B
Net Debt	$1.2B