FIRST AMERICAN CORP

CIK:0000036047|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Operating revenues	$ 422,785	$ 352,920
Cost of services (excluding depreciation and amortization shown below)	162,559	144,525
Selling, general and administrative expenses	130,008	109,624
Depreciation and amortization	44,781	43,578
Total operating expenses	337,348	297,727
Operating income	85,437	55,193
Interest expense:
Interest income	98	414
Interest expense	16,401	18,193
Total interest expense, net	(16,303)	(17,779)
Loss on investments and other, net	(502)	(3,857)
Income from continuing operations before equity in earnings of affiliates and income taxes	68,632	33,557
Provision for income taxes	13,689	9,785
Income from continuing operations before equity in earnings of affiliates	54,943	23,772
Equity in earnings of affiliates, net of tax	0	512
Net income from continuing operations	54,943	24,284
Income from discontinued operations, net of tax	3,907	9,535
Loss from sale of discontinued operations, net of tax	(5,288)	0
Net income	$ 53,562	$ 33,819
Basic income per share:
Net income from continuing operations (usd per share)	$ 0.75	$ 0.31
Income from discontinued operations, net of tax (usd per share)	0.05	0.12
Loss from sale of discontinued operations, net of tax (usd per share)	(0.07)	0
Net income (usd per share)	0.73	0.43
Diluted income per share:
Net income from continuing operations (usd per share)	0.73	0.30
Net income from discontinued operations, net of tax (usd per share)	0.05	0.12
Loss from sale of discontinued operations, net of tax (usd per share)	(0.07)	0
Net income (usd per share)	$ 0.71	$ 0.42
Weighted-average common shares outstanding:
Basic (in shares)	73,228	79,028
Diluted (in shares)	75,135	80,525

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income	$ 53,562	$ 33,819
Less: Income from discontinued operations, net of tax	3,907	9,535
Loss from sale of discontinued operations, net of tax	(5,288)	0
Net income from continuing operations	54,943	24,284
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	44,781	43,578
Amortization of debt issuance costs	1,237	1,235
Amortization of operating lease assets	3,660	3,656
Provision for bad debt and claim losses	5,089	3,357
Share-based compensation	9,634	7,961
Equity in earnings of affiliates, net of taxes	0	(512)
Deferred income tax	2,942	2,092
Loss on investments and other, net	502	3,857
Accounts receivable	(16,570)	7,709
Prepaid expenses and other current assets	(5,755)	3,538
Accounts payable and other accrued expenses	26,907	(15,459)
Contract liabilities	79,954	24,457
Income taxes	20,749	4,930
Dividends received from investments in affiliates	0	185
Other assets and other liabilities	(39,936)	(9,808)
Net cash provided by operating activities - continuing operations	188,137	105,060
Net cash provided by operating activities - discontinued operations	1,156	7,804
Total cash provided by operating activities	189,293	112,864
Cash flows from investing activities:
Purchases of property and equipment	(12,447)	(12,344)
Purchases of capitalized data and other intangible assets	(8,599)	(8,540)
Cash paid for acquisitions, net of cash acquired	(8,072)	(11,760)
Purchases of investments	0	(631)
Cash received from sale of discontinued operations	49,838	0
Proceeds from investments and other	0	651
Net cash provided by/(used in) investing activities - continuing operations	20,720	(32,624)
Net cash used in investing activities - discontinued operations	(1,694)	(2,892)
Total cash provided by/(used in) investing activities	19,026	(35,516)
Cash flows from financing activities:
Repayment of long-term debt	(100,708)	(723)
Proceeds from issuance of shares in connection with share-based compensation	3,109	2,932
Payment of tax withholdings related to net share settlements	(21,417)	(8,051)
Shares repurchased and retired	0	(2,431)
Dividends paid	(24,140)	(17,374)
Contingent consideration payments subsequent to acquisitions	(6,448)	0
Net cash used in financing activities - continuing operations	(149,604)	(25,647)
Net cash used in financing activities - discontinued operations	(41)	0
Total cash used in financing activities	(149,645)	(25,647)
Effect of exchange rate on cash, cash equivalents, and restricted cash	(561)	(4,690)
Net change in cash, cash equivalents, and restricted cash	58,113	47,011
Cash, cash equivalents, and restricted cash at beginning of period	177,833	114,679
Less: Change in cash, cash equivalents, and restricted cash - discontinued operations	(579)	4,912
Plus: Cash swept from discontinued operations	941	4,051
Cash, cash equivalents, and restricted cash at end of period	237,466	160,829
Supplemental disclosures of cash flow information:
Cash paid for interest	14,505	16,391
Cash paid for income taxes	3,827	2,218
Cash refunds from income taxes	156	371
Non-cash investing activities:
Capital expenditures included in accounts payable and other accrued expenses	$ 13,017	$ 10,092

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and Cash Equivalents	$ 227,102	$ 167,422
Accounts receivable (less allowance for credit losses of $8,636 and $9,838 as of March 31, 2021 and December 31, 2020, respectively)	320,609	303,202
Prepaid expenses and other current assets	66,148	82,794
Assets of discontinued operations	166,621	202,417
Total current assets	780,480	755,835
Property and equipment, net	401,552	406,114
Operating lease assets	80,724	82,459
Goodwill, net	2,319,411	2,315,495
Other intangible assets, net	310,226	320,921
Capitalized data and database costs, net	321,528	321,211
Other assets	114,502	81,187
Total assets	4,328,423	4,283,222
Current liabilities:
Accounts payable and other accrued expenses	208,149	177,606
Accrued salaries and benefits	57,698	57,499
Contract liabilities, current	478,074	411,821
Liabilities of discontinued operations	56,339	44,677
Current portion of long-term debt	9,003	43,230
Operating lease liabilities, current	14,833	15,566
Total current liabilities	824,096	750,399
Long-term debt, net of current	1,763,212	1,828,003
Contract liabilities, net of current	631,019	617,318
Deferred income tax liabilities	99,280	91,853
Operating lease liabilities, net of current	97,953	99,966
Other liabilities	156,778	172,421
Total liabilities	3,572,338	3,559,960
Stockholders' equity:
Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.00001 par value; 180,000 shares authorized; 73,619 and 73,152 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	1	1
Additional paid-in capital	0	0
Retained earnings	914,622	893,404
Accumulated other comprehensive loss	(158,538)	(170,143)
Total stockholders' equity	756,085	723,262
Total liabilities and equity	$ 4,328,423	$ 4,283,222