Fidelity National Financial, Inc. Reports 2nd Quarter 2014 Adjusted Core EPS of $0.47; Adjusted Pre-Tax Title Margin of 14.6%; Black Knight Adjusted EBITDA Margin of 41%; Increased LPS Synergy Target of $315 Million and Reduced Title Claim Loss Expense of 6%

30 Jul, 2014, 16:04 ET from Fidelity National Financial, Inc.

JACKSONVILLE, Fla., July 30, 2014 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE: FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, today reported operating results for the three-month and six-month periods ended June 30, 2014. 

Core Operations

  • Total revenue of approximately $1.7 billion in the second quarter versus $1.6 billion in the second quarter of 2013
  • Second quarter adjusted core diluted EPS of $0.47 versus adjusted core diluted EPS of $0.67 in the second quarter of 2013
  • Adjusted EBITDA of $299 million for the second quarter versus adjusted EBITDA of $248 million for the second quarter of 2013
  • Second quarter core free cash flow provided of $231 million versus $213 million provided in the second quarter of 2013

FNFV

  • Total revenue of $686 million in the second quarter versus $650 million in the second quarter of 2013
  • Adjusted EBITDA of $59 million in the second quarter versus $44 million in the second quarter of 2013
  • Book value of approximately $1.44 billion, or $15.69 per diluted FNFV share

Core Operations

Title

  • Approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $214 million and adjusted pre-tax title margin of 14.6% for the second quarter versus approximately $1.6 billion in total revenue, adjusted pre-tax earnings of $269 million and an adjusted pre-tax title margin of 16.8% in the second quarter of 2013; adjusted pre-tax title margin showed sequential improvement of 910 basis points versus the first quarter of 2014
  • ServiceLink generated $227 million in revenue, adjusted pre-tax earnings of $30 million and an adjusted pre-tax margin of 13.2%, a sequential margin improvement of 850 basis points from the first quarter of 2014
  • Open title orders of 514,000 for the second quarter, a decrease of 158,000, or 24%, compared with the second quarter of 2013; open orders per day of 8,000 for the second quarter versus 10,500 open orders per day for the second quarter of 2013; 60% of second quarter open title orders were purchase related versus 42% in the second quarter of 2013
  • Closed title orders of 342,000 for the second quarter, a decrease of 162,000, or 32%, compared with the second quarter of 2013; closed orders per day of 5,300 for the second quarter versus 7,900 closed orders per day for the second quarter of 2013; 61% of second quarter closed title orders were purchase related versus 40% in the second quarter of 2013
  • Second quarter purchase orders opened increased by 7% and closed orders were flat, respectively, versus the second quarter of 2013; excluding ServiceLink default related purchase orders, purchase orders opened were essentially flat with the prior year
  • Second quarter commercial title revenue of $115 million, a 3% increase from the second quarter of 2013, driven by an 8% improvement in the commercial fee per file slightly offset by a 4% decrease in closed orders; open commercial orders increased by 9% over the prior year
  • Overall second quarter average fee per file of $1,982, a 27% increase over the second quarter of 2013
  • Title claim loss expense reduced to 6% in the second quarter, a 100 basis point reduction from previous 7% level; 6% title claim loss expense expected for remainder of 2014

Black Knight

  • Total revenue of $201 million, a sequential improvement of 7% versus the first quarter of 2014, led by mortgage servicing technology revenue of approximately $122 million
  • Adjusted EBITDA of $84 million and adjusted EBITDA margin of 41.0%, a 510 basis point sequential improvement from the first quarter of 2014

 

Core Operations - Total ($ in millions except per share amounts)

Three Months Ended June 30, 2014

Three Months Ended

June 30, 2013

Total revenue

$1,673

$1,629

Net earnings

$111

$142

Net earnings per diluted share (283 and 229 diluted shares, respectively)

$0.39

$0.62

LPS related transaction costs

$16

$3

Synergy bonus accrual

$26

-

Purchase price amortization

$30

$3

Premium tax settlement

($8)

-

Legal accrual

$14

$20

Realized gains

-

($8)

Non-controlling interest on non-GAAP adjustments

($27)

-

Tax impact of adjustments

($28)

($6)

Adjusted net earnings

$134

$154

Adjusted net earnings per diluted share

$0.47

$0.67

Free cash flow

$231

$213

 

Six Months Ended 

June 30, 2014

Six Months Ended

June 30, 2013

Total revenue

$3,076

$3,014

Net earnings

$105

$238

Net earnings per diluted share (282 and 230 diluted shares, respectively)

$0.37

$1.03

LPS related transaction costs

$101

$3

Synergy bonus accrual

$58

-

Purchase price amortization

$91

$6

Premium tax settlement

($8)

-

Legal accrual

$16

$20

Realized gains

($2)

($8)

Non-controlling interest on non-GAAP adjustments

($96)

-

Tax impact of adjustments

($85)

($7)

Adjusted net earnings

$180

$252

Adjusted net earnings per diluted share

$0.64

$1.10

Free cash flow

$94

$177

    

Title ($ in millions)

Three Months Ended June 30, 2014

Three Months Ended

June 30, 2013

Total revenue

$1,466

$1,611

Pre-tax earnings

$181

$273

LPS related transaction costs

$8

-

Synergy bonus accrual

$12

-

Purchase price amortization

$21

$3

Premium tax settlement

($8)

-

Realized gains

-

($7)

Adjusted pre-tax earnings

$214

$269

Adjusted pre-tax margin

14.6%

16.8%

Six Months Ended 

June 30, 2014

Six Months Ended June 30, 2013

Total revenue

$2,674

$2,986

Pre-tax earnings

$166

$442

LPS related transaction costs

$55

-

Synergy bonus accrual

$25

-

Purchase price amortization

$43

$6

Premium tax settlement

($8)

-

Realized gains

($2)

($7)

Adjusted pre-tax earnings

$279

$441

Adjusted pre-tax margin

10.4%

14.8%

Month

Direct Orders Opened*/ (% Purchase)

Direct Orders Closed*/ (% Purchase)

April 2014

172,000 (60%)

113,000 (59%)

May 2014

170,000 (60%)

112,000 (61%)

June 2014

172,000 (60%)

117,000 (62%)

Second Quarter 2014

514,000 (60%)

342,000 (61%)

 

April 2013

 

244,000 (39%)

 

170,000 (38%)

May 2013

240,000 (40%)

175,000 (40%)

June 2013

188,000 (48%)

159,000 (42%)

Second Quarter 2013

672,000 (42%)

504,000 (40%)

 

*Includes an immaterial number of non-purchase and non-refinance orders

Open Commercial Orders

Closed Commercial Orders

Commercial Revenue

(millions)

Commercial

Fee Per File

2nd Quarter 2014

22,200

11,800

$115

$9,800

2nd Quarter 2013

20,300

12,300

$112

$9,100

- The preceding table only includes commercial activity from FNF's commercial offices in the national commercial division and does not attempt to capture commercial activity in our local offices.

    

Black Knight ($ in millions)

Three Months Ended June 30, 2014

Total revenue

$201

Pre-tax earnings

$17

Depreciation & amortization

$32

Interest expense

$7

EBITDA

$56

LPS related transaction costs

$8

Other legal matters

$8

Synergy bonus accrual

$12

Adjusted EBITDA

$84

Adjusted EBITDA margin

41.0%

Six Months Ended 

June 30, 2014

Total revenue

$388

Pre-tax loss

($60)

Depreciation & amortization

$93

Interest expense

$15

EBITDA

$48

LPS related transaction costs

$72

Other legal matters

$8

Synergy bonus accrual

$25

Adjusted EBITDA

$153

Adjusted EBITDA margin

38.5%

 

FNFV -Total ($ in millions)

Three Months Ended June 30, 2014

Three Months Ended

June 30, 2013

Total revenue

$686

$650

Pre-tax earnings

$16

-

Depreciation & amortization

$35

$36

Interest expense

$7

$5

EBITDA

$58

$41

Realized losses

$1

$3

Adjusted EBITDA

$59

$44

Adjusted EBITDA margin

8.6%

6.8%

Free cash flow

$12

$25

Six Months Ended 

June 30, 2014

Six Months Ended

June 30, 2013

Total revenue

$1,372

$1,306

Pre-tax earnings (loss)

$37

($9)

Depreciation & amortization

$66

$70

Interest expense

$13

$12

EBITDA

$116

$73

Remy severance

-

$7

Realized losses

$1

$5

Adjusted EBITDA

$117

$85

Adjusted EBITDA margin

8.5%

6.5%

Free cash flow

($47)

($9)

 

   

Restaurant Group ($ in millions)

Three Months Ended June 30, 2014

Three Months Ended June 30, 2013

Operating revenue

$358

$347

Realized losses

($1)

-

Total revenue

$357

$347

Pre-tax earnings 

$7

$5

Depreciation & amortization

$12

$14

Interest expense

$1

$2

EBITDA

$20

$21

Realized losses

$1

-

Adjusted EBITDA

$21

$21

Adjusted EBITDA margin

5.9%

6.1%

Six Months Ended

 June 30, 2014

Six Months Ended 

June 30, 2013

Operating revenue

$712

$701

Realized losses

($1)

($2)

Total revenue

$711

$699

Pre-tax earnings

$16

$5

Depreciation & amortization

$25

$27

Interest expense

$3

$4

EBITDA

$44

$36

Realized losses

$1

$2

Adjusted EBITDA

$45

$38

Adjusted EBITDA margin

6.3%

5.4%

Remy ($ in millions)

Three Months Ended 

June 30, 2014

Three Months Ended June 30, 2013

Total revenue

$301

$280

Pre-tax earnings

$8

$4

Depreciation & amortization

$19

$19

Interest expense

$6

$3

EBITDA

$33

$26

Realized losses

-

$3

Adjusted EBITDA

$33

$29

Adjusted EBITDA margin

11.0%

10.2%

Six Months Ended 

June 30, 2014

Six Months Ended June 30, 2013

Total revenue

$603

$565

Pre-tax earnings

$18

$3

Depreciation & amortization

$34

$38

Interest expense

$11

$10

EBITDA

$63

$51

Severance expense

-

$7

Realized losses

-

$3

Adjusted EBITDA

$63

$61

Adjusted EBITDA margin

10.4%

10.7%

 

"This quarter highlighted the potential of our title business when we experience stable order volumes, as we generated a 14.6% pre-tax title margin while operating in a slow recovering purchase environment and a very soft refinance market," said Chairman William P. Foley, II.  "The 14.6% margin approached our normalized pre-tax title margin target of 15%-20%, despite operating in what is arguably less than a normal residential real estate market.  We believe this clearly shows that we are primed to benefit significantly from potential further improvement in the residential purchase market.

"Black Knight had another strong quarter, with revenue of $201 million, a 7% sequential improvement from the first quarter of 2014.  Adjusted EBITDA of $84 million generated a 41% adjusted EBITDA margin, a 510 basis point sequential improvement from the first quarter of 2014.  We remain excited about the recurring nature of the revenue, the market positioning of our product offerings, the significant organic revenue growth opportunities and the strong EBITDA margins that Black Knight brings to FNF.

"The integration of LPS continues to progress well, as we have now realized nearly $275 million of cost synergies on a run-rate basis as of the end of the second quarter. Additionally, we are confident in again increasing our total cost synergy target to $315 million.

"Finally, we distributed the stock of FNFV on June 30, 2014, and it began trading as a separate public company on the NYSE on July 1, 2014.  We are encouraged by the market's significant interest in FNFV and look forward to creating value for FNFV shareholders through the active management of the existing portfolio company investments, the potential monetization of portfolio company investments and future potential add-on or new investments."

Conference Calls FNF will host a call with investors and analysts to discuss second quarter 2014 results on Thursday, July 31, 2014, beginning at 11:00 a.m. Eastern Time.  A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at www.fnf.com.  The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com.  The telephone replay will be available from 1:00 p.m. Eastern time on July 31, 2014, through August 7, 2014, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 329754.

FNFV will host a call with investors and analysts to discuss second quarter 2014 results on Thursday, July 31, 2014, beginning at 12:00 p.m. Eastern Time.  A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at www.fnf.com.  The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com.  The telephone replay will be available from 2:00 p.m. Eastern time on July 31, 2014, through August 7, 2014, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 332182.

About FNF Fidelity National Financial, Inc. (NYSE: FNF), is a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries.  FNF is the nation's largest title insurance company through its title insurance underwriters – Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York – that collectively issue more title insurance policies than any other title company in the United States.  FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, LLC and ServiceLink Holdings, LLC.  More information about FNF can be found at www.fnf.com.

About FNFV Fidelity National Financial Ventures (NYSE: FNFV) is a tracking stock designed to track and reflect the economic and financial performance of FNFV's portfolio company investments.  Those investments include Ceridian Corporation, a human resources and payroll processing company, Comdata, a provider of electronic payment solutions, American Blue Ribbon Holdings, the eighth largest full service restaurant company in the U.S., J. Alexander's, an upscale casual dining company, Remy International, a manufacturer, remanufacturer and distributor of vehicle starters and alternators and Digital Insurance, an employee benefits management company.  FNFV was distributed to FNF shareholders on June 30, 2014.

Use of Non-GAAP Financial Information Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted net earnings, adjusted EPS and free cash flow.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.

Forward-Looking Statements This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.  The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.

 

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY OF EARNINGS

(In millions, except order information in 000's)

(Unaudited)

      Three Months Ended

              Six Months Ended

       June 30,

              June 30,

2014

2013

2014

2013

Direct title premiums

$433

$492

$784

$905

Agency title premiums

518

625

922

1,149

  Total title premiums

951

1,117

1,706

2,054

Escrow, title-related and other fees

716

489

1,362

924

  Total title and escrow

1,667

1,606

3,068

2,978

Restaurant revenue

358

347

712

701

Remy revenue

300

284

602

568

Interest and investment income

35

37

65

70

Realized gains and losses

(1)

5

1

3

  Total revenue

2,359

2,279

4,448

4,320

Personnel costs

645

546

1,316

1,065

Other operating expenses

417

366

846

691

Cost of restaurant revenue

303

295

603

597

Cost of Remy revenue (includes $18, $18, $32 and $36 of D&A, respectively)

251

241

505

481

Agent commissions

395

473

702

870

Depreciation and amortization

85

35

203

68

Title claim loss expense

57

79

110

144

Interest expense

38

21

74

44

  Total expenses

2,191

2,056

4,359

3,960

Earnings from continuing operations before taxes

168

223

89

360

Income tax expense

57

72

20

118

Earnings from continuing operations before equity investments

111

151

69

242

Loss from equity investments

(5)

(3)

(36)

(6)

Net earnings from continuing operations

106

148

33

236

Loss from discontinued operations, net of tax

(1)

(3)

(1)

(2)

 Net earnings

105

145

32

234

Non-controlling interests

(10)

7

(61)

6

Net earnings attributable to common shareholders

$115

$138

$93

$228

Earnings per share:

    Net earnings attributable to common shareholders - basic

$0.42

$0.61

$0.34

$1.01

    Net earnings attributable to common shareholders -diluted

$0.41

$0.60

$0.33

$0.99

   

Weighted average shares – basic

275

225

275

225

Weighted average shares – diluted

283

229

282

230

Direct operations orders opened (000's)

514

672

982

1,315

Direct operations orders closed (000's)

342

504

637

991

Fee per file

$1,982

$1,562

$1,924

$1,469

Actual title claims paid

$79

$108

$146

$199

 

 

FIDELITY NATIONAL FINANCIAL, INC. SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in 000's) (Unaudited)

Three Months Ended

Total

FNF Corporate

Restaurant 

FNFV

June 30, 2014

Consolidated

FNF Core

Title

BKFS

and Other

FNFV

Remy

Group

Other

Direct Title Premiums

$                   433

$                   433

$                   433

$                        -

$                        -

$                        -

$                        -

$                        -

$                        -

Agency Title Premiums

518

518

518

-

-

-

-

-

-

Escrow, title related and other fees

716

689

482

201

6

27

-

-

27

Total Title and Escrow

1,667

1,640

1,433

201

6

27

-

-

27

Restaurant revenue

358

-

-

-

-

358

-

358

-

Autoparts revenue

300

-

-

-

-

300

300

-

-

Interest and investment income

35

33

33

-

-

2

1

-

1

Realized gains and losses

(1)

-

-

-

-

(1)

-

(1)

-

  Total revenue

2,359

1,673

1,466

201

6

686

301

357

28

Personnel costs

645

588

473

106

9

57

21

17

19

Agent commissions

395

395

395

-

-

-

-

-

-

Other operating expenses

417

382

324

39

19

35

14

17

4

Cost of autoparts revenue

251

-

-

-

-

251

251

-

-

Cost of restaurant revenue

303

-

-

-

-

303

-

303

-

Depreciation and amortization

85

68

36

32

-

17

1

12

4

Claim loss expense

57

57

57

-

-

-

-

-

-

Interest expense

38

31

-

7

24

7

6

1

-

  Total expenses

2,191

1,521

1,285

184

52

670

293

350

27

Pre-tax earnings from continuing operations

168

152

181

17

(46)

16

8

7

1

 Adjusted pre-tax earnings

$                   265

$                   230

$                   214

$                      54

$                    (38)

$                      35

$                      20

$                      12

$                        3

 Adjusted pre-tax margin

11.2%

13.7%

14.6%

26.3%

-

5.1%

6.6%

3.4%

10.7%

 Adjusted EBITDA 

$                   358

$                   299

$                   229

$                      84

$                    (14)

$                      59

$                      33

$                      21

$                        5

 Adjusted EBITDA margin

15.2%

17.8%

15.6%

41.0%

-

8.6%

11.0%

5.9%

17.9%

 Open Orders

514

514

514

 Closed Orders

342

342

342

 

 

Three Months Ended

Total

FNF Corporate

Restaurant 

FNFV

June 30, 2013

Consolidated

FNF Core

Title

BKFS

and Other

FNFV

Remy

Group

Other

Direct Title Premiums

$                   492

$                   492

$                   492

$                        -

$                       -

$                        -

$                        -

$                        -

$                        -

Agency Title Premiums

625

625

625

-

-

-

-

-

-

Escrow, title related and other fees

489

468

451

-

17

21

-

-

21

Total Title and Escrow

1,606

1,585

1,568

-

17

21

-

-

21

-

Restaurant revenue

347

-

-

-

-

347

-

347

-

Autoparts revenue

284

-

-

-

-

284

284

-

-

Interest and investment income

37

36

36

-

-

1

(1)

-

2

Realized gains and losses

5

8

7

-

1

(3)

(3)

-

-

  Total revenue

2,279

1,629

1,611

-

18

650

280

347

23

Personnel costs

546

487

478

-

9

59

19

16

24

Agent commissions

473

473

473

-

-

-

-

-

-

Other operating expenses

366

334

292

-

42

32

12

15

5

Cost of autoparts revenue

241

-

-

-

-

241

241

-

-

Cost of restaurant revenue

295

-

-

-

-

295

-

295

-

Depreciation and amortization

35

17

16

-

1

18

1

14

3

Claim loss expense

79

79

79

-

-

-

-

-

-

Interest expense

21

16

-

-

16

5

3

2

-

  Total expenses

2,056

1,406

1,338

-

68

650

276

342

32

Pre-tax earnings from continuing operations

223

223

273

-

(50)

-

4

5

(9)

 Adjusted pre-tax earnings 

$                   265

$                   241

$                   269

-

$                   (28)

$                      24

$                      22

$                        8

$                      (6)

 Adjusted pre-tax margin 

11.6%

14.8%

16.8%

-

-

3.7%

7.8%

2.3%

-

 Adjusted EBITDA 

$                   292

$                   248

$                   282

-

$                   (34)

$                      44

$                      29

$                      21

$                      (6)

 Adjusted EBITDA margin 

12.8%

15.2%

17.6%

-

-

6.8%

10.2%

6.1%

-

 Open Orders

672

672

672

 Closed Orders

504

504

504

 

 

FIDELITY NATIONAL FINANCIAL, INC. YTD SEGMENT INFORMATION (In millions, except order information in 000's) (Unaudited)

Six Months Ended 

Total

FNF Corporate

Restaurant 

FNFV

June 30, 2014

Consolidated

FNF Core

Title

BKFS

and Other

FNFV

Remy

Group

Other

Direct Title Premiums

$                   784

$                   784

$                   784

$                        -

$                        -

$                        -

$                        -

$                        -

$                        -

Agency Title Premiums

922

922

922

-

-

-

-

-

-

Escrow, title related and other fees

1,362

1,307

905

388

14

55

-

-

55

Total Title and Escrow

3,068

3,013

2,611

388

14

55

-

-

55

Restaurant revenue

712

-

-

-

-

712

-

712

-

Autoparts revenue

602

-

-

-

-

602

602

-

-

Interest and investment income

65

61

61

-

-

4

1

-

3

Realized gains and losses

1

2

2

-

-

(1)

-

(1)

-

  Total revenue

4,448

3,076

2,674

388

14

1,372

603

711

58

Personnel costs

1,316

1,201

939

239

23

115

43

33

39

Agent commissions

702

702

702

-

-

-

-

-

-

Other operating expenses

846

781

682

101

(2)

65

24

31

10

Cost of autoparts revenue

505

-

-

-

-

505

505

-

-

Cost of restaurant revenue

603

-

-

-

-

603

-

603

-

Depreciation and amortization

203

169

75

93

1

34

2

25

7

Claim loss expense

110

110

110

-

-

-

-

-

-

Interest expense

74

61

-

15

46

13

11

3

(1)

  Total expenses

4,359

3,024

2,508

448

68

1,335

585

695

55

Pre-tax earnings from continuing operations

89

52

166

(60)

(54)

37

18

16

3

 Adjusted pre-tax earnings

$                   381

$                   308

$                   279

$                      93

$                    (64)

$                      73

$                      41

$                      25

$                        7

Adjusted pre-tax margin

8.5%

10.0%

10.4%

23.4%

-

5.3%

6.8%

3.5%

12.1%

 Adjusted EBITDA 

$                   564

$                   447

$                   311

$                   153

$                    (17)

$                   117

$                      63

$                      45

$                        9

 Adjusted EBITDA margin

12.7%

14.5%

11.6%

38.5%

-

8.5%

10.4%

6.3%

15.5%

 Open Orders

982

982

982

 Closed Orders

637

637

637

 

 

Six Months Ended

Total

FNF Corporate

Restaurant 

FNFV

June 30, 2013

Consolidated

FNF Core

Title

BKFS

and Other

FNFV

Remy

Group

Other

Direct Title Premiums

$                   905

$                   905

$                   905

$                        -

$                       -

$                        -

$                        -

$                        -

$                        -

Agency Title Premiums

1,149

1,149

1,149

-

-

-

-

-

-

Escrow, title related and other fees

924

884

857

-

27

40

-

-

40

Total Title and Escrow

2,978

2,938

2,911

-

27

40

-

-

40

-

Restaurant revenue

701

-

-

-

-

701

-

701

-

Autoparts revenue

568

-

-

-

-

568

568

-

-

Interest and investment income

70

68

68

-

-

2

-

-

2

Realized gains and losses

3

8

7

-

1

(5)

(3)

(2)

-

  Total revenue

4,320

3,014

2,986

-

28

1,306

565

699

42

Personnel costs

1,065

943

929

-

14

122

46

31

45

Agent commissions

870

870

870

-

-

-

-

-

-

Other operating expenses

691

622

569

-

53

69

23

35

11

Cost of autoparts revenue

481

-

-

-

-

481

481

-

-

Cost of restaurant revenue

597

-

-

-

-

597

-

597

-

Depreciation and amortization

68

34

32

-

2

34

2

27

5

Claim loss expense

144

144

144

-

-

-

-

-

-

Interest expense

44

32

-

-

32

12

10

4

(2)

  Total expenses

3,960

2,645

2,544

-

101

1,315

562

694

59

Pre-tax earnings from continuing operations

360

369

442

-

(73)

(9)

3

5

(17)

 Adjusted pre-tax earnings 

$                   433

$                   390

$                   441

-

$                   (51)

$                      43

$                      42

$                      13

$                    (12)

 Adjusted pre-tax margin 

10.0%

12.9%

14.8%

-

-

3.3%

7.4%

1.9%

-

 Adjusted EBITDA 

$                   535

$                   450

$                   467

-

$                   (17)

$                      85

$                      61

$                      38

$                    (14)

 Adjusted EBITDA margin 

12.4%

14.9%

15.7%

-

-

6.5%

10.7%

5.4%

-

 Open Orders

1,315

1,315

1,315

 Closed Orders

991

991

991

 

 

FIDELITY NATIONAL FINANCIAL, INC. QUARTERLY OPERATING STATISTICS (Unaudited)

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Total Quarterly Order Statistics ('000's except % data)

Total open orders*

514

469

392

474

672

643

677

707

667

Total open orders per day*

8.0

7.7

6.2

7.4

10.5

10.5

10.7

11.2

10.4

Purchase % of open orders

60%

55%

55%

56%

42%

38%

32%

33%

38%

Refinance % of open orders

40%

45%

45%

44%

58%

62%

68%

67%

62%

Total closed orders*

342

295

307

410

504

487

518

480

459

Total closed orders per day*

5.3

4.8

4.9

6.4

7.9

8.0

8.2

7.6

7.2

Purchase % of closed orders

61%

52%

56%

50%

40%

31%

33%

37%

40%

Refinance % of closed orders

39%

48%

44%

50%

60%

69%

67%

63%

60%

*Includes an immaterial number of non-purchase and non-refinance orders

Commercial (millions, except orders in '000's)

Revenue

115

104

146

120

112

88

149

96

103

Open Orders

22.2

19.6

19.3

19.9

20.3

18.7

18.9

18.9

20.3

Closed Orders

11.8

10.2

12.8

12.6

12.3

10.6

13.6

12.2

13.1

Total Fee Per File 

Fee per file

$1,982

$1,858

$2,082

$1,807

$1,562

$1,373

$1,565

$1,467

$1,497

Residential and local commercial fee per file

$1,705

$1,559

$1,676

$1,562

$1,373

$1,219

$1,312

$1,300

$1,310

National commercial fee per file

$9,800

$10,200

$11,400

$9,500

$9,100

$8,300

$10,900

$7,800

$7,900

Total Staffing

Total title field operations employees

10,200

10,300

9,900

10,600

12,000

12,000

11,600

11,300

11,000

FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total open orders*

403

349

331

391

516

481

497

525

524

Total open orders per day*

6.3

5.7

5.3

6.1

8.1

7.9

7.9

8.3

8.2

Purchase % of open orders

71%

71%

65%

68%

55%

58%

--

--

--

Refinance % of open orders

29%

29%

35%

32%

45%

42%

--

--

--

Total closed orders*

272

219

263

323

387

354

396

381

353

Total closed orders per day*

4.3

3.6

4.2

5.0

6.0

5.8

6.3

6.1

5.5

Purchase % of closed orders

71%

67%

66%

64%

52%

44%

--

--

--

Refinance % of closed orders

29%

33%

34%

36%

48%

56%

--

--

--

Fee per file

2,227

2,151

2,260

2,028

1,747

1,537

1,756

1,602

1,664

Total title field operations employees

8,700

8,600

8,900

9,300

10,100

9,900

9,500

9,400

9,100

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total open orders*

111

120

61

83

156

162

180

182

143

Total open orders per day*

1.7

2.0

1.0

1.3

2.4

2.7

2.9

2.9

2.2

Purchase % of open orders

20%

7%

0%

0%

0%

0%

--

--

--

Refinance % of open orders

80%

93%

100%

100%

100%

100%

--

--

--

Total closed orders*

70

76

44

87

117

133

122

99

106

Total closed orders per day*

1.1

1.2

0.7

1.4

1.8

2.2

1.9

1.6

1.7

Purchase % of closed orders

18%

6%

0%

0%

0%

0%

--

--

--

Refinance % of closed orders

82%

94%

100%

100%

100%

100%

--

--

--

Fee per file

1,038

1,009

1,013

989

951

936

946

945

937

Total ServiceLink operations employees

1,500

1,700

970

1,300

1,900

2,100

2,100

1,900

1,900

 

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions, except per share amounts)

FNF Core

Intercompany

June 30,

December 31,

FNFV

Eliminations

2014

2013

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Cash & investment portfolio

$4,528

$600

(33)

$5,095

$5,760

Goodwill

4,441

476

-

4,917

1,901

Title plant

395

-

-

395

370

Total assets

12,102

2,774

(33)

14,843

10,524

Notes payable

3,003

373

(33)

3,343

1,323

Reserve for title claims losses

1,661

-

-

1,661

1,636

Secured trust deposits

701

-

-

701

588

Redeemable & Non-redeemable Noncontrolling interest

624

477

-

1,101

474

Total equity

$5,140

$1,916

-

$7,056

$5,542

Book value per share*

$16.27

$15.69

-

$22.14

*Book value per share is calculated based on the number of FNF Group and FNFV Group shares outstanding as of June 30, 2014, respectively, and excludes Redeemable and Non-redeemable noncontrolling interest.

 

 

FIDELITY NATIONAL FINANCIAL, INC.

NON-GAAP RECONCILIATIONS

(In millions, except per share amounts)

(unaudited)

Three Months Ended June 30, 2014

Three Months Ended June 30, 2013

Total

Total 

Total

Total 

Consolidated

FNF Core

FNFV

Consolidated

FNF Core

FNFV

Pre-tax earnings

$             168

$             152

$              16

$             223

$             223

$               -

Interest Expense

38

31

7

21

16

5

Depreciation & amortization

103

68

35

53

17

36

EBITDA

$             309

$             251

$              58

$             297

$             256

$              41

Non-GAAP adjustments before taxes:

Realized (gain) loss, net adjustment

1

-

1

(5)

(8)

3

Deferred revenue adjustment for BKFS

4

4

-

-

-

-

Transaction costs related to acquisition of LPS

9

9

-

3

3

-

Severance costs related to acquisition of LPS

3

3

-

-

-

-

Synergy accrual

26

26

-

-

-

-

Premium tax settlement

(8)

(8)

-

Other legal matters

14

14

-

20

20

-

Purchase price amortization

48

30

18

24

3

21

97

78

19

42

18

24

Adjusted pre-tax earnings

$             265

$             230

$              35

$             265

$             241

$              24

Adjusted pre-tax margin

11.2%

13.7%

5.1%

11.6%

14.8%

3.7%

Adjusted EBITDA

$             358

$             299

$              59

$             292

$             248

$              44

Adjusted EBITDA margin

15.2%

17.8%

8.6%

12.8%

15.2%

6.8%

Net earnings (loss) attributable to FNF common shareholders

$             115

$             111

$                 4

$             138

$             142

$               (4)

EPS

$            0.41

$            0.39

$           0.01

$            0.60

$            0.62

$         (0.02)

Non-GAAP adjustments:

Realized (gain) loss, net adjustment

1

-

1

(5)

(8)

3

Deferred revenue adjustment for BKFS

4

4

-

-

-

-

Transaction costs related to acquisition of LPS

9

9

-

3

3

-

Severance costs related to acquisition of LPS

3

3

-

-

-

-

Synergy accrual

26

26

-

-

-

-

Premium tax settlement

(8)

(8)

-

-

-

-

Other legal matters

14

14

-

20

20

-

Purchase price amortization

48

30

18

24

3

21

Income taxes on non-GAAP adjustments

(35)

(28)

(7)

(14)

(6)

(8)

62

50

12

28

12

16

Less: noncontrolling interest on non-GAAP adjustments

(33)

(27)

(6)

(5)

-

(5)

Adjusted net earnings attributable to FNF common shareholders

$             144

$             134

$              10

$             161

$             154

$                 7

Adjusted EPS

$            0.51

$            0.47

$           0.04

$            0.70

$            0.67

$           0.03

Net cash flows provided by (used in) operations

$             231

$             198

$              33

$             251

$             211

$              40

Non-GAAP adjustments:

Transaction costs related to acquisition of LPS

4

4

-

3

3

#

-

Synergy bonus payment

31

31

-

-

-

-

Premium tax settlement

15

15

-

-

-

-

Severance costs related to acquisition of LPS

3

3

-

-

-

-

Other legal matters

6

6

-

20

20

-

Adjusted cash flows from operations

290

257

33

274

234

40

Less: Capital expenditures

47

26

21

36

21

15

Free cash flow

$             243

$             231

$              12

$             238

$             213

$              25

FIDELITY NATIONAL FINANCIAL, INC.

NON-GAAP RECONCILIATIONS

(In millions, except per share amounts)

(unaudited)

Six Months Ended June 30, 2014

Six Months Ended June 30, 2013

Total

Total 

Total

Total 

Consolidated

FNF Core

FNFV

Consolidated

FNF Core

FNFV

Pre-tax earnings

$               89

$               52

$              37

$             360

$             369

$               (9)

Interest Expense

74

61

13

44

32

12

Depreciation & amortization

235

169

66

104

34

70

EBITDA

$             398

$             282

$            116

$             508

$             435

$              73

Non-GAAP adjustments before taxes:

Realized (gain) loss, net adjustment

(1)

(2)

1

(3)

(8)

5

Deferred revenue adjustment for BKFS

9

9

-

-

-

-

Transaction costs related to acquisition of LPS

50

50

-

3

3

-

Severance costs related to acquisition of LPS

42

42

-

-

-

-

Other legal matters

16

16

-

20

20

-

Other executive severance

-

-

-

7

-

7

Premium tax settlement

(8)

(8)

-

-

-

-

Synergy accrual

58

58

-

-

-

-

Purchase price amortization

126

91

35

46

6

40

292

256

36

73

21

52

Adjusted pre-tax earnings

$             381

$             308

$              73

$             433

$             390

$              43

Adjusted pre-tax margin

8.5%

10.0%

5.3%

10.0%

12.9%

3.3%

Adjusted EBITDA

$             564

$             447

$            117

$             535

$             450

$              85

Adjusted EBITDA margin

12.7%

14.5%

8.5%

12.4%

14.9%

6.5%

Net earnings (loss) attributable to FNF common shareholders

$               93

$             105

$             (12)

$             228

$             238

$             (10)

EPS

$            0.33

$            0.37

$         (0.04)

$            0.99

$            1.03

$         (0.04)

Non-GAAP adjustments:

Realized (gain) loss, net adjustment

(1)

(2)

1

(3)

(8)

5

Deferred revenue adjustment for BKFS

9

9

-

-

-

-

Transaction costs related to acquisition of LPS

50

50

-

3

3

-

Severance costs related to acquisition of LPS

42

42

-

-

-

-

Other legal matters

16

16

-

20

20

-

Other executive severance

-

-

-

7

-

7

Premium tax settlement

(8)

(8)

-

-

-

-

Synergy accrual

58

58

-

-

-

-

Purchase price amortization

126

91

35

46

6

40

Ceridian legal settlement, net of tax

21

-

21

-

-

-

Income taxes on non-GAAP adjustments

(98)

(85)

(13)

(25)

(7)

(18)

215

171

44

48

14

34

Less: noncontrolling interest on non-GAAP adjustments

(107)

(96)

(11)

(12)

-

(12)

Adjusted net earnings attributable to FNF common shareholders

$             201

$             180

$              21

$             264

$             252

$              12

Adjusted EPS

$            0.71

$            0.64

$           0.07

$            1.15

$            1.10

$           0.05

Net cash flows provided by (used in) operations

$              (11)

$                  3

$             (14)

$             215

$             190

$              25

Non-GAAP adjustments:

Transaction costs related to acquisition of LPS

45

45

-

3

3

-

Synergy bonus payment

31

31

-

-

-

-

Premium tax settlement

15

15

-

-

-

-

Severance costs related to acquisition of LPS

42

42

-

-

-

-

Other legal matters

8

8

-

20

20

-

Other executive severance payment

-

-

-

7

-

7

Adjusted cash flows from operations

130

144

(14)

245

213

32

Less: Capital expenditures

83

50

33

77

36

41

Free cash flow

$               47

$               94

$             (47)

$             168

$             177

$               (9)

 

SOURCE Fidelity National Financial, Inc.



RELATED LINKS

http://www.fnf.com