The First American Financial Corporation reports an increase in revenue and ...


November 16, 1988, SANTA ANA, CALIFORNIA

The First American Financial Corporation reported an increase in revenue and net income for the third quarter 1988 compared with the same quarter of the previous year. According to D.P. Kennedy, president, the improvements were due to an increase in demand for housing in certain areas of the nation and continued affordable mortgage interest rates. Revenue for the third quarter ended September 30, 1988, was $175,168,000, an increase of 6 percent compared with $165,894,000 for the third quarter 1987, while net income was $7,342,000, or $1.50 per share, as compared with $5,597,0000, or $1.28 per share.

Revenue for the nine-month period ended September 30, 1988, was $458,965,000, a 4 percent decline from the record setting first nine months of 1987, while net income was $8,814,000, or $1.80 per share, compared with $28,548,000 or $5.43 per share. Net income for the first nine months of 1988 was affected by specific major claims in the first half of 1988 of $8.4 million attributable to agency operations. Net income for the first nine months of 1987 included a one-time transitional tax benefit of $8,996,000, or $1.71 per share.

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 September 30:		1988		1987
Revenue					    $175,168,000    $165,894,000*	
Net income				    $  7,342,000    $  5,597,000
Per share				    $       1.50    $       1.28
Average shares outstanding		       4,918,000       4,713,000

Nine Months Ended September 30:
Revenue					    $458,965,000    $478,839,00*
Net income				    $  8,814,000    $ 28,548,000**
Per share				    $       1.80    $       5.43**
Average shares outstanding		       4,897,000       5,255,000
* Restated for accounting change in method of recognizing premiums from agents.
** Includes one-time transitional tax benefit of $8,996,000, or $1.71 per share.

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