The First American Financial Corporation reports second quarter revenue and ...
August 13, 1987, SANTA ANA, CALIFORNIA
Revenue for the three-and six-month periods ended June 30, 1987, totaled $114,456,000 and $204,347,000, respectively, increases of 34 percent and 35 percent as compared with $85,513,000 and $150,948,000 for the same periods of the prior year.
Net income for the second quarter 1987 was $11,105,000 as compared with $6,026,000 for the second quarter 1986, a gain of 84 percent. For the first half of 1987 net income, including a non-recurring income tax benefit of $8,996,000, was $22,951,000 as compared with $7,339,000 for the first half of 1986, a gain of 313 percent.
Earnings per share, after giving effect to the June 5, 1987, 2-for-1 stock split, for the first half 1987 was $4.15 per share (including the non-recurring tax benefit of $1.63), which compares with $1.40 for the same period of the prior year.
According to D.P. Kennedy, president, the company's high closing rates throughout the first half 1987 appear to be chiefly due to a continuation of the effects of the new tax bill and scattered refinancing activity. The company noted a slackening in new order rates, and therefore cost reduction programs are being implemented in order to maintain satisfactory profit levels.
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.
Three months ended June 30: 1987 1986 Revenue $114,456,000 $ 85,513,000 Net income $ 11,105,000 $ 6,026,000 Net income per share* $ 2.01 $ 1.14
Six months ended June 30: Revenue $204,347,000 $150,948,000 Net income $ 22,951,000 $ 7,339,000 Net income per share* $ 4.15 $ 1.40 Average shares outstanding* 5,525,000 5,526,000
*After giving effect to the June 5, 1987, 2-for-1 stock split.