The First American Corporation Reports Financial Results for the First Quarter of 2008
May 1, 2008
The First American Corporation announced financial results for the first quarter ended March 31, 2008.
Current Quarter Highlights
- Total revenues of $1.7 billion in the first quarter of 2008, a 21.9 percent decrease from the prior year.
- Net income of $29.3 million (32 cents per diluted share) in the first quarter of 2008, compared with $67.7 million (68 cents per diluted share) in the first quarter of 2007, when adjusted for the net impact of one-time items in 2007 totaling $16.1 million (16 cents per diluted share).
- Continued revenue growth in international title operations.
- Strong pretax margins in the Information and Outsourcing Solutions segment, despite ongoing difficult market conditions.
- Corporate-wide focus on cost-containment initiatives.
otal revenues for the first quarter of 2008 were $1.7 billion, a decrease of 22 percent relative to the first quarter of 2007. Net income was $29.3 million in the first quarter of 2008, a decrease of 57 percent, compared with adjusted net income of $67.7 million in the first quarter of 2007. Income per diluted share was 32 cents in the first quarter of 2008, down 53 percent, versus an adjusted income per diluted share of 68 cents in the first quarter of 2007. First quarter 2007 net income numbers are adjusted to exclude certain net realized investment gains and other one-time items totaling $16.1 million, after tax, or 16 cents per diluted share. Including these items, net income and income per diluted share for the first quarter of 2008 decreased 65.0 percent and 61.9 percent, respectively, from prior year totals of $83.8 million and 84 cents, respectively.
"The company continues to be impacted by the slowdown in real estate and mortgage activity," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "But in response, we continue to aggressively pursue the companywide cost-reduction efforts that began in 2007. We also are pleased to report that we are making progress on the planned separation of our Financial Services and Information Solutions businesses."