The First American Corporation Reports Record Results for the Second Quarter 2005
July 27, 2005
SANTA ANA, Calif., /PRNewswire-FirstCall/ -- The First American Corporation (NYSE: FAF), the nation's largest data provider, today announced results for the second quarter ended June 30, 2005:
|Three Months Ended
|Six Months Ended
|Total revenues||$1.98 billion||$1.72 billion||$3.69 billion||$3.20 billion|
|Income before income taxes and minority interests||$265.6 million||$219.2 million||$419.3 million||$330.3 million|
|Net income||$139.5 million||$116.5 million||$218.7 million||$171.5 million|
|Net income per diluted share||$1.43||$1.27||$2.27||$1.90|
The company posted record revenues and profits for the second quarter," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "Second quarter earnings benefited from a 16 percent increase in closed title orders, compared with first quarter closings. While interest rate hikes during the first half of 2005 slowed refinancings, residential and commercial property purchase transactions remained solid, which resulted in steady real estate activity for the company's real estate-related businesses. These strong results reflect the benefits of our FAST Transaction System and the ongoing implementation of strategies such as centralized processing, bundling, strong acquisitions and market share growth."
Quarterly Financial Highlights
Financial Services Group:
- Revenues for the second quarter 2005 were $1.53 billion, an increase of
17 percent when compared with $1.31 billion for the second quarter
- Pretax income was $193.7 million, an increase of 27 percent when
compared with $152.1 million in the prior year quarter.
- Pretax margins for the second quarter 2005 were 12.7 percent compared
with 11.6 percent for the second quarter 2004.
Information Technology Group:
- Revenues for the second quarter 2005 were $453.0 million, an increase
of 10 percent when compared with $411.4 million for the second quarter
- Pretax income was $107.4 million, a 9 percent increase when compared
with $98.5 million in the prior year quarter.
- Pretax margins for the second quarter 2005 were 23.7 percent compared
with 23.9 percent for the second quarter 2004.
Source: First American