First American Financial Corporation (NYSE:FAF) Q4 2014 Earnings Conference Call - Final Transcript

Feb 12, 2015 • 11:00 am ET

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First American Financial Corporation (NYSE:FAF) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the First American Financial Corporation Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] The copy of today's press release is available on the First American website at www.firstam.com/investor. Please note that the call is being recorded and will be available for replay from the Company's investor website and for a short time by dialing 877-660-6853 or 201-612-7415 and enter conference ID of 1359892A.

I will now turn the call over to Craig Barberio, Director of Investor Relations to make an introductory statement.

Executive
Craig Barberio

Good morning, everyone, and thank you for joining us for 2014 fourth quarter and year-end earnings conference call. Joining us today will be our Chief Executive Officer, Dennis Gilmore, and Mark Seaton, Executive Vice President and Chief Financial Officer.

At this time, we'd like to remind listeners that management's commentary and responses to your questions may contain forward-looking statements, such as those described on page four of today's news release, and other statements that do not relate strictly to historical or current facts. The forward-looking statements speak only as of the date they are made, and 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. Risks and uncertainties exists that 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 are also described on pages four and five of today's news release.

Management's commentary contained and responded to your question today may also contain certain financial measures that are not presented in accordance with generally accepted accounting principles, including personnel and other operating expense ratios. The company's presenting these non-GAAP financial measures because they provide the company's management and investors with additional insight into the company's operational efficiency and performance relative to earlier periods and relative to the company's competitors.

The company does not understand for these non-GAAP financial measures to be substitute for any GAAP financial information and these release that we filed today which is available on our website, www.firstam.com. The non-GAAP financial measures disclosed and management's commentary are presented with and reconciled to the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

With that I will now turn the call over to Dennis Gilmore.

Executive
Dennis Gilmore

Thanks, Greg. Good morning and thank you for joining our call. I'll begin with a review of 2014 followed by our fourth quarter financial highlights and conclude with a few comments regarding our outlook for 2015. Total company's revenue for 2014 are $4.7 billion, down 6% from last year. Our purchase revenues were up 5% and our commercial business had a record year with revenues up 9%. The growth in both of these businesses helped to offset the significant decline and