The First American Corporation Reports Results for the Fourth Quarter and Full Year 2005
February 17, 2006
SANTA ANA, Calif., /PRNewswire-FirstCall/ -- The First American Corporation (NYSE: FAF), a provider of business information, announced results for the fourth quarter and year ended Dec. 31, 2005:
| Three Months Ended
|Twelve Months Ended
|2005||2004 (A)||2005||2004 (A)|
|Total revenues||$2.21 billion||$1.80 billion||$8.06 billion||$6.72 billion|
|Income before income taxes and minority interests||$209.0 million||$145.0 million||$903.6 million||$677.3 million|
|Net income||$117.5 million||$70.4 million||$485.3 million||$349.1 million|
|Net income per diluted share||$1.19||$.76||$4.97||$3.83|
|(A) Includes pretax
charges of $13.3 million, $8.6 million or 9 cents per
diluted share on an after-tax basis, for certain litigation
matters, and $24.0 million, $15.7 million or 17 cents per
diluted share on an after-tax basis, related to a settlement
with the Colorado State Division of Insurance.
"We achieved very strong results in 2005," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "Our earnings per share increased 30 percent over 2004 despite several interest rate increases by the Federal Reserve. Our Financial Services and Information Technology businesses performed well in 2005 and benefited from improved operating efficiencies, including centralization, technology and offshore processing, and from market share improvement in nearly all of the company's businesses.
"Highlights of 2005 included the contribution of our Credit Information segment to our publicly held subsidiary, First Advantage Corporation (Nasdaq: FADV), in which we now have approximately a 77 percent ownership; the acquisition of United General, a national title insurance underwriter; the acquisition of LoanPerformance, a mortgage analytics provider; and the agreement to purchase TransContinental Title Company, a national lender- oriented title agency based in Florida. Additionally, the company's stock repurchase program was increased to $200 million and Standard & Poor's raised First American Title's financial strength rating from 'A-' to 'A.'"
2006 Strategic Focus and Outlook
Kennedy added: "We will continue to pursue important strategies to maintain strong profits. These strategies, which include superior technology, centralization, offshore processing, bundling, analytics and growth through acquisitions, were key to our profitability in 2004 and 2005. We will build upon these strategies in 2006 and beyond to expand margins, especially in the title insurance segment, and to increase market share in all our businesses. We feel we have built a company that can achieve healthy levels of profitability through any market cycle."
Source: First American