FAF Q4 2022 Earnings Report — First American Financial Corporation Revenue & Financial Results | Market Cap Arena

First American Financial CorporationFAF

Q4 2022 Earnings

Reported February 14, 2023

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2022	Q3 2022	Q4 2021	QoQ Change	YoY Change
Revenue	$1.7B	—	$2.4B	—	-29.2%
Op. Income	$58M	—	$333M	—	-82.6%
Gross Margin	57.9%	—	60.0%	—	-2.1pp
Net Margin	3.2%	—	11.0%	—	-7.8pp
EPS (Diluted)	$0.51	—	$2.33	—	-78.1%
Free Cash Flow	$176M	—	$294M	—	-40.2%

Revenue Flow

Item	Amount
REVENUE	$1.7B
Cost of Revenue	$705M
GROSS PROFIT	$969M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$550M
SG&A Expenses	$550M
Other Expenses	$361M
Operating Expenses	$911M
Cost & Expenses	$1.6B
OPERATING INCOME	$58M
Interest Income	$0
Interest Expense	$30M
Other Income/Expenses	$0
INCOME BEFORE TAX	$58M
Income Tax Expense	$4M
Net Income from Continuing Ops	$54M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$54M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$54M
D&A	$43M
EBIT	$88M
EBITDA	$131M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.7B
Cost of Revenue	$705M
GROSS PROFIT	$969M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$550M
SG&A Expenses	$550M
Other Expenses	$361M
Operating Expenses	$911M
Cost & Expenses	$1.6B
OPERATING INCOME	$58M
Interest Income	$0
Interest Expense	$30M
Other Income/Expenses	$0
INCOME BEFORE TAX	$58M
Income Tax Expense	$4M
Net Income from Continuing Ops	$54M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$54M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$54M
D&A	$43M
EBIT	$88M
EBITDA	$131M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$54M
Depreciation & Amortization	$43M
Stock-Based Compensation	$7M
Deferred Income Tax	$0
Other Non-Cash Items	$132M
Change in Working Capital	$11M
OPERATING CASH FLOW	$247M
Capital Expenditure	-$71M
Acquisitions (Net)	$519M
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$920M
Other Investing Activities	-$494M
NET CASH FROM INVESTING	-$140M
Net Debt Issuance	$42M
Common Stock Repurchased	-$34M
Common Dividends Paid	-$53M
Other Financing Activities	-$1.2B
NET CASH FROM FINANCING	-$1.3B
FREE CASH FLOW	$176M
Net Change in Cash	-$1.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$0
Net Receivables	$389M
Inventory	$0
Other Current Assets	-$1.7B
TOTAL CURRENT ASSETS	$0
PP&E (Net)	$885M
Goodwill	$1.8B
Intangible Assets	$834M
Long-Term Investments	$8.9B
Tax Assets	$0
Other Non-Current Assets	-$12.4B
TOTAL NON-CURRENT ASSETS	$0
TOTAL ASSETS	$15.0B
Account Payables	$51M
Short-Term Debt	$920M
Deferred Revenue	$0
Other Current Liabilities	-$1.5B
TOTAL CURRENT LIABILITIES	$0
Long-Term Debt	$1.1B
Deferred Revenue NC	$197M
Deferred Tax Liabilities	$16M
Other Non-Current Liabilities	-$1.6B
TOTAL NON-CURRENT LIABILITIES	$0
TOTAL LIABILITIES	$10.3B
Common Stock	$0
Additional Paid-In Capital	$1.8B
Retained Earnings	$3.7B
Treasury Stock	$0
Accum. Other Comp. Income	-$869M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.7B
Minority Interest	$23M
TOTAL EQUITY	$4.7B
TOTAL LIABILITIES & EQUITY	$15.0B
Total Debt	$2.3B
Net Debt	$995M