The First American Financial Corporation reports a decline in revenue and ...

The First American Financial Corporation (NASDAQ:FAMR) reported a decline in revenue and net income for the first quarter 1988 compared with the same quarter of the previous year. Revenue for the first quarter 1988 totaled $129,364,000, a decline of 6 percent compared with $137,633,000 for the first quarter 1987. The company experienced a net loss of $3,176,000, or $.65 per share, for the three months ended March 31, 1988. During the same period of the prior year, the company earned $11,846,000, or $2.14 per share, which included a one-time transitional income tax benefit of $8,996,000, or $1.62 per share.

D.P. Kennedy, president, reported that the loss was the result of an unfavorable claim and loss experience for the quarter as well as a decline in the volume of orders closed by the company and its agents. The trend of declining new order levels experienced in the latter part of 1987 continued through the first weeks of 1988 and appears to have bottomed in mid-February. Thus, while the inventory of open orders was at a low ebb at the start of the year, this inventory as well as the closing volumes are presently expanding and the company anticipates a return to a profitable position in the second 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 4,500 offices or agents in all 50 states. It also provides title services abroad in Guam, Mexico, Puerto Rico, the Virgin Islands and England.

Synopsis:

Three months ended March 31:		1988		1987
Revenue				    $129,364,000    $137,633,000*
Net Income (loss)		    $ (3,176,000)   $ 11,846,000**
Net income per share		    $       (.65)   $       2.14**
Average shares outstanding	       4,851,000       5,546,000

* Restated for accounting change in method of recognizing premiums from agents.
** Including a one-time transitional tax benefit of $8,996,000, or $1.62 per share.