First American Financial announces record fourth quarter 1996 revenues and ...
February 11, 1997, SANTA ANA, CALIFORNIA
Net income for the fourth quarter 1996 increased to $11.8 million, or $1.03 per share, as compared with $9.8 million, or 87¢ per share, for the same period in 1995. Record revenues for the fourth quarter 1996 were $425.5 million, an increase of 16.7 percent when compared with the $364.5 million reported for the same period last year.
The company's 1996 profits were $53.6 million, or $4.68 per share, a substantial improvement over 1995 earnings of $7.6 million, or 67¢ per share. Revenues in 1996 were a company record of $1.598 billion, an increase of 27.8 percent when compared with last year's $1.250 billion.
"We are extremely pleased with the company's 1996 operating performance," said President Parker S. Kennedy. "The resurgence in the residential resale and new home sale markets, coupled with our continuing efforts to integrate services for the lending community, produced a record-breaking revenue base for 1996.
"The first quarter of 1997 will be impacted by the seasonal slowdown in new orders experienced during November and December, which resulted in reduced inventory of open orders to start 1997," Kennedy continued. "Although refinance transactions played a role in the first quarter 1996, we have not seen a significant level of refinance activity since that time, which may bring anticipated profits for the first quarter 1997 below last year's first quarter level. However, given the current interest rate and consumer confidence levels, we expect 1997 to be a reasonably strong year. As the leading provider of real estate-related financial and informational services, we remain focused on increasing market share in all of our primary businesses."
The First American Financial Corporation, based in Santa Ana, California, is the nation's leading provider of real estate-related financial and informational services. The corporation's subsidiaries include First American Title Insurance Company, a national and international title insurer, First American Real Estate Information Services, Inc., which offers tax monitoring, credit reporting, flood certification, appraisal services, mortgage loan servicing systems and property information services nationally, and First American Home Buyers Protection Corporation, a home warranty company. The corporation also operates First American Trust Company and First Security Thrift Company in Southern California. First American Financial has more than 10,000 employees in over 400 branch offices in the United States and abroad. Information about the company's subsidiaries and an archive of its press releases can be found at http://www.firstam.com on the Internet.
Any statements looking forward in time inherently involve risks and uncertainties, including but not limited to the effect of interest rate fluctuations, changes in the performance of the real estate markets and the effect of changing economic conditions.
Quarter ended December 31: 1996 1995 Revenues $ 425,512,000 $ 364,494,000 Income before income taxes $ 17,811,000 $ 17,939,000 Net income $ 11,811,000 $ 9,839,000 Net income per share $ 1.03 $ 0.87 Year ended December 31: Revenues $ 1,597,566,000 $ 1,250,216,000 Income before income taxes $ 89,189,000 $ 13,787,000 Net income $ 53,589,000 $ 7,587,000 Net income per share $ 4.68 $ 0.67 Average shares outstanding 11,451,000 11,403,000
|For the Three Months Ended||For the Twelve Months Ended|
|RESULTS OF OPERATIONS|
|Operating revenues||$ 419,889,000||$ 357,794,000||$ 1,571,168,000||$ 1,227,185,000|
|Investment and other income||5,623,000
|Salaries and other personnel costs||145,381,000||117,387,000||531,250,000||431,984,000|
|Premiums retained by agents||143,737,000||124,295,000||516,593,000||413,444,000|
|Other operating expenses||87,483,000||71,314,000||327,744,000||260,611,000|
|Provision for title losses and other claims||18,999,000||23,257,000||86,487,000||90,387,000|
|Depreciation and amortization||6,321,000||4,471,000||22,207,000||18,002,000|
|Income before premium and income taxes||22,105,000||21,624,000||105,865,000||27,414,000|
|Income (loss) before income taxes||$ 17,811,000
|Total operating revenues||
|INCOME BEFORE INCOME TAXES|
|Title Insurance||$ 17,204,000||$ 10,791,000||$ 66,056,000||$ 17,540,000|
|Real Estate Information||8,327,000||12,148,000||52,581,000||19,690,000|
|Trust and Banking||1,129,000
|Total before corporate expenses and premium taxes||28,243,000||26,039,000||130,543,000||47,362,000|
|Income (loss) before income taxes||
|TITLE INSURANCE ORDER COUNTS|
|FROM DIRECT OPERATIONS|
|Title orders opened
|Title orders closed||192,800||181,100||775,100||667,200|