The First American Financial Corporation announces record revenues for second ...
August 13, 1990, SANTA ANA, CALIFORNIA
For the three months ended June 30, 1990, revenues were $185,312,000, compared with $170,223,000 for the same period in 1989. For the current six months, revenues reached a record high of $348,945,000 compared with revenues of $335,513,000 for the first half of 1989.
In the second quarter of this year, net income amounted to $558,000, down from the $1,955,000 reported for the same quarter a year ago. However, for the first half of 1990, net income of $1,410,000 was well ahead of the $692,000 net income for the comparable period in 1989. On a per share basis, the second quarter net income for 1990 was 5 cents, compared with 20 cents for the three months ended June 30, 1989. The six months per share figures were 14 cents for 1990, compared with 7 cents for the first half of 1989.
During the second quarter of this year, the provision for title losses and other claims was significantly greater than for the preceding 1990 quarter and the second quarter of 1989. Donald P. Kennedy, president of The First American Financial Corporation, said, "Based on additional information, we were able to fully reserve for the claim mentioned in our first quarter report as well as for a loss due to inappropriate acts by an agent in the Mid-Atlantic region. While we are not satisfied, we are pleased that we were able to make the rather large adjustments necessary and still be profitable."
The First American Financial Corporation, based in Santa Ana, California, operates its title insurance business through its principal subsidiary, First American Title Insurance Company, one of the largest title insurers in the nation. The firm offers title services through a network of more than 5,500 offices or agents in all 50 states. It also provides title services abroad in Guam, Mexico, Puerto Rico, the Bahamas, the Virgin Islands and the United Kingdom.
Quarter ended June 30: 1990 1989 Revenues $185,312,000 $170,223,000 Net income $ 558,000 $ 1,955,000 Net income per share $ .05 $ .20*
Six months ended: Revenues $348,945,000 $335,513,000 Net income $ 1,410,000 $ 692,000 Net income per share $ .14 $ .07* Avg. shares outstanding 9,997,000 9,936,000*
* Restated to reflect the 100% dividend of Class B Common shares issued November 20, 1989.