The First American Financial Corporation announces near-record revenues and ...
November 13, 1991, SANTA ANA, CALIFORNIA
"I am pleased to report that our earnings this quarter were sufficient to show a profit for the year-to-date, despite a dismal first quarter," Kennedy said.
For the three months ended September 30, 1991, First American Financial had net income of $4,284,000, or 44 cents per share. This compares with 1990 third quarter income of $1,377,000, or 14 cents per share.
The quarter's revenues of $191,524,000 were a company record for a third quarter, and compare with 1990 third quarter revenues of $185,949,000.
The nine months ended September 30 provided total record revenues of $536,572,000, compared with $534,894,000 in 1990. Net income for the period was $654,000, or 7 cents per share, compared with $2,787,000, or 28 cents per share, for the same period 1990.
The improvements in revenues and net income are due primarily to an increase in closed transactions and gains in gross agency revenues, offset in part by a decline in the average revenues per order closed. That average was adversely affected by a higher proportion of closings being refinance transactions, which generate lower premiums.
New orders have remained strong, according to Kennedy, with most of the business due to refinancing activities driven by the declining interest rates. "It seems reasonable to assume that refinancing activity will continue through the fourth quarter," Kennedy said.
Company management continues to focus on personnel efficiencies, as evidenced by a higher number of orders processed per employee.
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 office or agents in all 50 states. It also provides title services abroad in the Bahamas, Bermuda, Canada, Guam, Mexico, Puerto Rico, the Virgin Islands and the United Kingdom.
Quarter ended September 30: 1991 1990 Revenues $191,524,000 $185,949,000 Net income $ 4,284,000 $ 1,377,000 Net income per share $ .44 $ .14 Average shares outstanding 9,332,000 9,839,000
Nine months ended September 30: Revenues $536,572,000 $534,894,000 Net income $ 654,000 $ 2,787,000 Net income per share $ .07 $ .28 Average shares outstanding 9,696,000 9,944,000