The First American Financial Corporation announces revenues and net income ...


November 17, 1987, SANTA ANA, CALIFORNIA

The First American Financial Corporation reported that revenues and net income for the nine-month period ended September 30, 1987, continued at record levels, as did revenue for the third quarter of 1987. According to D.P. Kennedy, president, net income, however, for the third quarter was down due to increased expenses caused by the necessity of retaining personnel to close orders opened earlier, even though increased interest rates have resulted in a decline in new orders.

Revenue for the nine-month period ended September 30, 1987, was $312,594,000, while net income was a record $28,548,000, or $5.43 per share, an increase of 70 percent, compared with the $16,765,000, or $3.14 per share, for the first three quarters of the prior year.

Revenue for the third quarter ended September 30, 1987, was $108,247,000, while net income was $5,597,000 or $1.28 per share, down from the $9,426,000, or $1.74 per share, earned in the same quarter 1986.

Results for the 1987 period include a non-recurring income tax benefit of $8,996,000, or $1.71 per share, which was recognized in the first quarter.

The First American Financial Corporation, based in Santa Ana, California, operates its title insurance business through its principal subsidiary, First American Title Insurance Company. The firm offers title services through a network of more than 2,500 offices or agents in all 50 states. It also provides title services abroad in Guam, Mexico, Puerto Rico, the Virgin Islands and England.

Synopsis:

Nine months ended September 30:		1987		1986
Revenue					    $312,594,000    $256,880,000
Operating income			    $ 28,548,000    $ 19,060,000
Extraordinary charge			    		    $ (2,295,000)
Net income				    $ 28,548,000    $ 16,765,000

Per share data:* Operating income $ 5.43 $ 3.57 Net income $ 5.43 $ 3.14 Average number of shares outstanding 5,254,709 5,340,816 Three months ended September 30 Revenue $108,247,000 $105,932,000 Operating income $ 5,597,000 $ 11,721,000 Extraordinary charge $ (2,295,000) Net income $ 5,597,000 $ 9,426,000
Per share data:* Operating income $ 1.28 $ 2.17 Net income $ 1.28 $ 1.74 Average number of shares outstanding 4,713,200 5,570,704

*After giving effect to the June 5, 1987, 2-for-1 stock split.

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