The First American Financial Corporation reports a decline in revenue and ...
May 12, 1988, SANTA ANA, CALIFORNIA
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.
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.