The First American Financial Corporation announces the highest quarterly income in company history
November 10, 1986, SANTA ANA, CALIFORNIA
Kennedy noted that third quarter net income was the highest quarterly income in the history of the company, and net income for the first nine months of 1986 had already exceeded net income from any previous full year of operation.
He stated that real estate activity has reached record levels, as refinancing orders and other transactions opened earlier in the year began to close.
Revenue for the first nine months of 1986 totaled $256,880,000, compared with the $190,850,000 for the same 1985 period. Net income for the nine months ended September 30, 1986, after an extraordinary charge of $2,295,000 relating to the settlement of a lawsuit amounted to $16,765,000 compared with the $10,126,000 for the same period last year.
Revenue for the third quarter 1986 totaled $105,932,000 as compared with $71,339,000 for the preceding year, an increase of 48 percent. Net income for the third quarter 1986 was $9,426,000, or $3.47 per share after the extraordinary charge, which compares with $5,395,000, or $2.13 per share for the same period in 1985, increases of 75 percent and 63 percent, respectively.
According to Kennedy, the company anticipates that, in spite of its cyclical nature, business will remain strong at least through the first quarter 1987.
At its August meeting, the board of directors increased the quarterly dividend 25 percent, from 80 cents to $1.00 per share. The company has paid a cash dividend every year since 1909.
First American Title Insurance Company operates through a network of more than 2,300 branches, subsidiaries, affiliates and agents throughout the United States and in Guam, Mexico, Puerto Rico, the Virgin Islands and England.
Three months ended September 30: 1986 1985 Revenue $105,932,000 $ 71,339,000 Income $ 11,721,000 $ 5,395,000 Extraordinary charge ($ 2,295,000) Net income $ 9,426,000 $ 5,395,000 Per share data: Income $ 4.33 $ 2.13 Net income $ 3.47 $ 2.13 Average number of shares outstanding 2,785,352 2,541,864 Nine months ended September 30: Revenue $256,880,000 $190,850,000 Income $ 19,060,000 $ 10,126,000 Extraordinary charge ($ 2,295,000) Net income $ 16,765,000 $ 10,126,000 Per share data: Income $ 7.14 $ 4.00 Net income $ 6.28 $ 4.00 Average number of shares outstanding 2,670,408 2,531,534