The First American Financial Corporation announces third consecutive record setting year for 1987
March 14, 1988, SANTA ANA, CALIFORNIA
Kennedy stated that the record earnings for 1987 was attributable to a nonrecurring tax benefit realized in connection with the passage of the Tax Reform Act of 1986.
The company reported 1987 revenue of $636,769,000, up to 14 percent from $558,215,000 in 1986 in spite of the rather sharp decline in real estate activity during the last half of 1987. Net income for 1987 after giving effect to the nonrecurring tax benefit was $32,412,000, or $6.29 per share, as compared with $27,328,000, or $5.06 per share (adjusted for the 2-for-1 stock split effective June 5, 1987) in the preceding year.
The one-time transitional tax benefit in the amount of $8,996,000, or $1.74 per share, was the result of discounting loss reserves in connection with the "fresh start" provisions of the Tax Reform Act of 1986.
First American Title Insurance Company operates through a network of more than 4,500 branches, subsidiaries, affiliates or agents throughout the United States and in Guam, Mexico, Puerto Rico, the Virgin Islands and England.
Year ended December 31: 1987 1986 Revenue $636,769,000 $558,215,000* Income before extraordinary item $ 32,412,000 $ 29,623,000 Extraordinary item $ (2,295,000) Net income $ 32,412,000 $ 27,328,000
Per share Income before extraordinary item $ 6.29 $ 5.49 Extraordinary item $ (.43) Net income $ 6.29 $ 5.06 Average shares outstanding 5,156,000 5,400,000
* Restated for accounting change