The First American Financial Corporation reports a profitable first quarter of 1990
May 10, 1990, SANTA ANA, CALIFORNIA
Revenues for the three months ended September 30, 1990, were a record $185,949,000, compared with $176,984,000 for the third quarter 1989. Net income totaled $1,377,000, or 14 cents per share, as compared with $5,324,000, or 53 cents per share, for the third quarter 1989.
Revenues for the nine-month period ended September 30, 1990, amounted to a record $534,894,000, compared with $512,497,000 for the same period in 1989. Net income for the period totaled $2,787,000, or 28 cents per share, as opposed to $6,016,000, or 60 cents per share, for the same period in 1989.
"Despite record revenues, provisions for title losses and other claims continue to depress earnings," said D.P. Kennedy, president.
"Although we are pleased with the increased market share as evidenced by the growing revenues, we are much more concerned with improving our profit structure," Kennedy continued. "We are confident that the systems, procedures and training programs in place will substantially improve our claims experience, and thus our profitability, in the immediate future."
The First American Financial Corporation, based in Santa Ana, Calif., operates its title insurance business through its principal subsidiary, First American Title Insurance Company, one of the largest title insurers in the nation. The company 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 the Bahamas, Guam, Mexico, Puerto Rico, the Virgin Islands and the United Kingdom.
Three months ended September 30: 1990 1989 Revenues $185,949,000 $176,984,000 Net income $ 1,377,000 $ 5,324,000 Net income per share $ .14 $ .53* Average shares outstanding 9,839,000 10,002,000** Restated to reflect the 100% dividend of Class B Common shares issued November 20, 1989.
Nine months ended September 30: Revenues $534,894,000 $512,497,000 Net income $ 2,787,000 $ 6,016,000 Net income per share $ .28 $ .60* Average shares outstanding $ 9,944,000 9,958,000*