The First American Financial Corporation reports first-quarter after-tax earnings of $8.7 million
April 27, 1993, SANTA ANA, CALIFORNIA
Net income includes a tax benefit of $4.2 million, or 37 cents per share, reflecting the cumulative effect of an accounting change relating to the adoption of the Financial Accounting Standards Board's Statement No. 109, "Accounting for Income Taxes." Net income from operations was second only to last year's first-quarter record total.
For the quarter ending March 31, 1993, First American's earnings translate to 77 cents per share, compared with first quarter earnings in 1992 of $6.3 million, or 70 cents per share. Revenues for the first three months of 1993 compare with $228.4 million in the first quarter of 1992, an increase of 22 percent.
According to President D.P. Kennedy, the 1993 first quarter revenues include a significant increase in lower-margin agency revenues, the majority of which is retained by the agents. Also contributing to higher expenses during the first three months of 1993 versus 1992 were costs of servicing the high open order levels experienced by the company's direct operations during the latter part of the quarter. Open orders and attendant expenses precede closed transactions and revenues by 45-60 days.
"All of our primary businesses performed well during the quarter," Kennedy said. "Real estate activity during the latter part of 1992 was not strong and yet title insurance, tax service, home warranty and trust and banking each were profitable before corporate overhead during the quarter. Our orders during the latter part of the quarter and continuing into April have increased substantially. During March the title company had the highest open order month in its history, signaling strong operating revenues from direct operations for the next quarter."
The First American Financial Corporation, based in Santa Ana, Calif., is a leading provider of real estate financial services, including title insurance, tax monitoring and home warranty services, to real property buyers and mortgage lenders. The company also operates a trust and banking business in Southern California. The company offers its title services through a network of more than 300 offices and 4,000 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.
Quarter ended March 31: 1993 1992 Revenues $278,966,000 $228,371,000 Net income before accounting change $ 4,484,000 $ 6,254,000 Accounting change $ 4,200,000 ___ Net income $ 8,684,000 $ 6,254,000 Average shares outstanding 11,292,000 8,875,000
Per share data
Net income before accounting change $ .40 $ .70 Accounting change $ .37 __ Net income $ .77 $ .70