The First American Financial Corporation announces net income for the year ended December 31, 1991
March 16, 1992, SANTA ANA, CALIFORNIA
Revenues for the year ended December 31, 1991, increased to $756,821,000, a record level for the ninth consecutive year. This represented a 7 percent increase over 1990 revenues of $707,841,000.
Fourth quarter revenues totaled $220,249,000, up 27 percent from $172,947,000 for the fourth quarter ended December 31, 1990. Net income for the fourth quarter totaled $2,351,000 or 25 cents per share, compared with net income of $523,000 or 5 cents per share for fourth quarter 1990. The 1990 fourth quarter and year-end results were impacted by accounting for the "fresh start" provisions of the Omnibus Budget Reconciliation Act of 1990, which resulted in an income tax benefit of $7,761,000.
"The surge of real estate refinancing business has resulted in the largest new order activity in the history of the company," Kennedy said. "It is our belief that the refinancing activity, which is dependent on low interest rates, will probably continue well into 1992 although probably not at present record levels. Throughout the country, there is encouraging evidence of increased residential resale activity as well as some improvement in the commercial market. There are also pockets of new housing activity, and in some areas it appears that some shortages of new housing may occur in 1992."
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 7,000 offices or agents in all 50 states. It also provides title services abroad in the Bahamas, Bermuda, Canada, Guam, Mexico, Puerto Rico, the U.S. Virgin Islands and the United Kingdom.
Year ended December 31: 1991 1990 Revenues $756,821,000 $707,841,000 Net income $ 3,005,000 $ 3,310,000* Net income per share $ 0.32 $ 0.33 Average shares outstanding 9,478,000 9,911,000
Quarter ended December 31: Revenues $220,249,000 $172,947,000 Net income $ 2,351,000 $ 523,000* Net income per share ` $ 0.25 $ 0.05
*Includes non-recurring tax benefit of $7,761,000