-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bzp+b/pMgNIju8FEb5cIqGhQyz1Q6BXvkOP5WKNCT7fnxHq1L4eZ76675XpaPmnt jLfs4V/2zKPLuppV+K5Jrw== 0000950127-03-000412.txt : 20030423 0000950127-03-000412.hdr.sgml : 20030423 20030423090006 ACCESSION NUMBER: 0000950127-03-000412 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030423 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST AMERICAN CORP CENTRAL INDEX KEY: 0000036047 STANDARD INDUSTRIAL CLASSIFICATION: TITLE INSURANCE [6361] IRS NUMBER: 951068610 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13585 FILM NUMBER: 03659136 BUSINESS ADDRESS: STREET 1: 1 FIRST AMERICAN WAY CITY: SANTA ANA STATE: CA ZIP: 92707 BUSINESS PHONE: 714-800-3000 MAIL ADDRESS: STREET 1: 1 FIRST AMERICAN WAY CITY: SANTA ANA STATE: CA ZIP: 92707 FORMER COMPANY: FORMER CONFORMED NAME: FIRST AMERICAN TITLE INSURANCE & TRUST C DATE OF NAME CHANGE: 19690515 FORMER COMPANY: FORMER CONFORMED NAME: FIRST AMERICAN FINANCIAL CORP DATE OF NAME CHANGE: 19920703 8-K 1 ajdfac_8-k.txt 8-K DOCUMENT SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 -------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------------- Date of report (Date of earliest event reported) April 23, 2003 -------------- THE FIRST AMERICAN CORPORATION (Exact Name of the Registrant as Specified in Charter) California 0-3658 95-1068610 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1 First American Way, Santa Ana, California 92707-5913 - ------------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (714) 800-3000 -------------- Not Applicable. -------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Exhibits. 99 Press Release Item 9. Regulation FD Disclosure. The information in this section is being furnished to, but not filed with, the Securities and Exchange Commission solely under Item 12 of Form 8-K, "Results of Operations and Financial Condition." On April 23, 2003 we issued a press release announcing results for the quarter ended March 31, 2003. A copy of the press release is attached to this Current Report as Exhibit 99 and is incorporated by reference herein. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. THE FIRST AMERICAN CORPORATION Date: April 23, 2003 By: /s/ Thomas A. Klemens ---------------------------- Name: Thomas A. Klemens Title: Executive Vice President and Chief Financial Officer EX-99 3 a1qearnings_exh99.txt EXHIBIT DOCUMENT NEWS FOR IMMEDIATE RELEASE THE FIRST AMERICAN CORPORATION REPORTS RECORD RESULTS FOR THE FIRST QUARTER 2003 SANTA ANA, Calif., April 23, 2003 - The First American Corporation (NYSE: FAF), the nation's leading diversified provider of business information and related products and services, today announced record results for the first quarter ended March 31, 2003:
For the Three Months Ended March 31 ------------------------ ---------------------- 2003 (A) 2002 ------------------------ ---------------------- Total revenues $ 1.34 billion $ 1.04 billion Income before income taxes and minority interests $163.5 million $88.6 million Net income $ 87.6 million $44.1 million Net income per diluted share $1.05 $.57 (A) Includes a pretax gain on the merger of the company's Credit Online business with DealerTrack Holdings, Inc. of $13.1 million, $8.0 million on an after-tax basis, or 9 cents per diluted share.
Summary of Operations - --------------------- "The first three months of 2003 marked another strong quarter for the company," stated Parker S. Kennedy, president of The First American Corporation. "Elevated levels of mortgage applications in the fourth quarter of 2002 produced strong order closings, which contributed to a record-breaking first quarter in the real estate-related segments of our Financial Services and Information Technology groups." - more - First American Reports Record Results for the First Quarter 2003 - ---------------------------------------------------------------- Page 2 Quarterly Financial Highlights - ------------------------------ Financial Services Group: o Record revenues for the first quarter 2003 were $1.0 billion, an increase of 26 percent when compared with $793.8 million for the first quarter of 2002. o Pretax income was a record $95.0 million, an increase of 92 percent when compared with $49.6 million in the prior year quarter. o Pretax margins improved to 9.5 percent compared with 6.2 percent for the first quarter 2002. Information Technology Group (A): o Record revenues for the first quarter 2003 were $339.0 million, an increase of 37 percent compared with $247.4 million for the first quarter of 2002. o Pretax income was a record $96.4 million, an increase of 70 percent when compared with $56.6 million in the prior year quarter. o Pretax margins improved to 28.4 percent compared with 22.9 percent for the first quarter 2002. (A) Includes a pretax gain in the current quarter on the merger of the company's Credit Online business with DealerTrack Holdings, Inc. of $13.1 million, $8.0 million on an after-tax basis, or 9 cents per diluted share. 2003 Strategic Focus and Outlook - -------------------------------- Kennedy continued: "The month of March provided all-time-record opened order counts in our real estate-related businesses, which bodes well for the company's second quarter results. The company's businesses that are less dependant on the real estate cycle, which include auto credit, consumer credit, homeowner's and home warranty insurance, and screening information, are benefiting from the company's growth strategy to build products, services and systems, and are performing well. We are excited about the merger with US SEARCH.com, which is expected to close in the second quarter 2003. The new public entity, which will be named First Advantage Corporation, will provide significant opportunities in the rapidly expanding screening services industry." First American Reports Record Results for the First Quarter 2003 - ---------------------------------------------------------------- Page 3 Teleconference/Webcast - ---------------------- First American's first quarter results will be discussed in more detail on Wednesday, April 23, 2003, at 11 a.m. EDT, via teleconference. The dial-in number is (800) 779-5182 and the pass code is FIRST AMERICAN. The live audio webcast of the call will be available on First American's Web Site at www.firstam.com/investor. An audio replay of the conference call will be available through April 27, 2003, by dialing (402) 220-3575. An audio archive of the call will also be available for replay on First American's Web site. About First American - -------------------- The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation's leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people's lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $4.70 billion in 2002, First American has nearly 25,000 employees in approximately 1,400 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com. Forward Looking Statements - -------------------------- Certain statements made in this press release, including those relating to second quarter results and opportunities in the screening services industry are forward-looking. Risks and uncertainties exist which may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among the company's significant customers and competitors; the company's continued ability to identify businesses to be acquired; changes in the company's ability to integrate businesses which it acquires; and other factors described in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2002,as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. (Additional Financial Data Follows) -more- First American Reports Record Results for the First Quarter 2003 - ---------------------------------------------------------------- Page 4 Summary of Earnings ------------------- (in thousands, except per share amounts)
For the Three Months Ended March 31 -------------------- -------------------- 2003 2002 -------------------- -------------------- Total revenues $1,341,975 $1,042,202 Income before income taxes and minority interests $ 163,493 $ 88,559 Income taxes $ 56,000 $ 31,000 Minority interests $ 19,913 $ 13,484 Net income $ 87,580 $ 44,075 Net income per share: Basic $1.18 $0.63 Diluted $1.05 $0.57 Weighted average shares outstanding: Basic 74,159 69,995 Diluted 85,098 80,985
Cash Provided by Operating Activities ------------------------------------- (in thousands)
For the Three Months Ended March 31 -------------------- -------------------- 2003 2002 -------------------- -------------------- Cash provided by operating activities $ 82,840 $ 55,533
Summary Balance Sheet Information --------------------------------- (in thousands, except per share amounts)
March 31 December 31 -------------------- -------------------- 2003 2002 -------------------- -------------------- Total stockholders' equity $1,489,588 $1,364,589 Book value per share $19.62 $18.53
Summary Title Insurance Order Counts From Direct Operations ------------------------------------
For the Three Months Ended March 31 ------------------- --- ----------------- 2003 2002 ------------------- --- ----------------- Title orders opened: January 203,500 162,400 February 189,000 149,000 March 238,600 159,200 ------------------- ----------------- First quarter total 631,100 470,600 =================== ================= Title orders closed: January 153,100 138,200 February 141,700 119,700 March 160,900 135,100 ------------------- ----------------- First quarter total 455,700 393,000 =================== =================
(Additional Financial Data Follows) -more- First American Reports Record Results for the First Quarter 2003 - ---------------------------------------------------------------- Page 5
Selected Financial Data ----------------------- (in thousands) For the Three Months Ended March 31 ---------------------------------------------- 2003 2002 ---------------------------------------------- RESULTS OF OPERATIONS Revenues Operating revenues $ 1,304,863 $ 1,023,340 Investment and other income 24,567 18,803 Net realized investment gains 12,545 59 ---------------------------------------------- 1,341,975 1,042,202 ---------------------------------------------- Expenses Salaries and other personnel costs 407,217 345,325 Premiums retained by agents 365,709 284,294 Other operating expenses 293,387 237,358 Provision for title losses and other claims 67,239 47,099 Depreciation and amortization 26,015 24,148 Premium taxes 10,456 7,199 Interest 8,459 8,220 ---------------------------------------------- 1,178,482 953,643 ---------------------------------------------- Income before income taxes and minority interests $ 163,493 $ 88,559 ============================================== OPERATING REVENUES Financial Services Title Insurance and Services: Direct operations $ 484,308 $ 387,174 Agency operations 448,996 356,797 ---------------------------------------------- 933,304 743,971 Specialty Insurance 46,144 29,312 Trust and Other Services 9,905 11,156 ---------------------------------------------- 989,353 784,439 ---------------------------------------------- Information Technology Mortgage Information 139,108 108,130 Property Information 82,280 55,110 Credit Information 62,528 52,999 Screening Information 31,594 22,662 ---------------------------------------------- 315,510 238,901 ---------------------------------------------- $ 1,304,863 $ 1,023,340 Total operating revenues ============================================== INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS Financial Services Title Insurance and Services $ 86,766 $ 39,652 Specialty Insurance 5,839 5,682 Trust and Other Services 2,441 4,225 ---------------------------------------------- 95,046 49,559 ---------------------------------------------- Information Technology Mortgage Information 45,797 31,505 Property Information 23,443 11,645 Credit Information 26,607 12,653 Screening Information 515 782 ---------------------------------------------- 96,362 56,585 ---------------------------------------------- Total before corporate expenses and minority interest 191,408 106,144 Corporate expenses 27,915 17,585 ---------------------------------------------- Income before income taxes and minority interests $ 163,493 $ 88,559 ==============================================
First American Reports Record Results for the First Quarter 2003 - ---------------------------------------------------------------- Page 6 Segment Margins For the Three Months Ended March 31 ----------------------------------- (in thousands, except percentages)
Total revenues Pretax (A) Margins ---------------------------- ---------------------------- ------------------------ 2003 2002 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ---------- ---------- Financial Services Title Insurance and Services: $ 944,391 $ 751,141 $ 86,766 $ 39,652 9.2% 5.3% Specialty Insurance 48,584 31,567 5,839 5,682 12.0% 18.0% Trust and Other Services 9,851 11,136 2,441 4,225 24.8% 37.9% ------------ ------------ ------------ ------------ ----------- ---------- $ 1,002,826 $ 793,844 $ 95,046 $ 49,559 9.5% 6.2% ============ ============ ============ ============ =========== ========== Information Technology Mortgage Information $ 141,877 $ 109,552 $ 45,797 $ 31,505 32.3% 28.8% Property Information 87,441 58,473 23,443 11,645 26.8% 19.9% Credit Information 78,046 56,632 26,607 12,653 34.1% 22.3% Screening Information 31,618 22,754 515 782 1.6% 3.4% ----------- ------------ ------------ ------------ ------------ ---------- $ 338,982 $ 247,411 $ 96,362 $ 56,585 28.4% 22.9% ============ ============ ============ ============ ============ ==========
(A) - Income before income tax, minority interest and corporate expenses ### -----END PRIVACY-ENHANCED MESSAGE-----