Fidelity National Financial, Inc. Reports Fourth Quarter 2013 Core EPS of $0.32, Adjusted Core EPS of $0.37 and Adjusted Pre-Tax Title Margin of 11%

Feb 12, 2014, 16:29 ET from Fidelity National Financial, Inc.

JACKSONVILLE, Fla., Feb. 12, 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 twelve-month periods ended December 31, 2013. 

  • Net earnings of $76 million, or $0.30 per diluted share, for the fourth quarter versus net earnings of $152 million, or $0.66 per diluted share in the fourth quarter of 2012
  • Adjusted net earnings of $108 million, or $0.43 per diluted share, for the fourth quarter versus adjusted net earnings of $166 million, or $0.72 per diluted share in the fourth quarter of 2012

Due to the recent formation of Black Knight Financial Services, LLC ("Black Knight") and ServiceLink Holdings, LLC ("ServiceLink") as well as the announced future formation of the new tracking stock for Fidelity National Financial Ventures ("FNFV"), FNF will begin separately reporting on its core operations, which includes Fidelity National Title Group, Inc. ("FNT"), Black Knight and ServiceLink, and the portfolio company investments that will comprise FNFV in the future.

Core Operations

  • Adjusted pre-tax title margin of 11.0% for the fourth quarter versus 16.0% in the fourth quarter of 2012
  • Core diluted EPS of $0.32 for the fourth quarter versus $0.62 for the fourth quarter of 2012
  • Adjusted fourth quarter core diluted EPS of $0.37, which excludes $3 million of after-tax purchase price amortization ($0.01 impact on diluted EPS), a $7 million after-tax executive separation charge ($0.03 impact on diluted EPS) and $3 million of after-tax expenses related to the Lender Processing Services, Inc. acquisition ($0.01 impact on diluted EPS) versus adjusted core diluted EPS of $0.64 in the fourth quarter of 2012
  • Fourth quarter core free cash flow of $38 million versus $160 million in the fourth quarter of 2012
  • Open title orders of 392,000 for the fourth quarter, a decrease of 285,000, or 42%, compared with the fourth quarter of 2012, reflecting a more than 60% decline in refinance orders in the fourth quarter of 2013 versus the prior year; open orders per day of 6,200 for the fourth quarter versus 10,700 open orders per day for the fourth quarter of 2012; 55% of fourth quarter open title orders were purchase related versus 32% in the fourth quarter of 2012
  • Closed title orders of 307,000 for the fourth quarter, a decrease of 211,000, or 41%, compared with the fourth quarter of 2012; closed orders per day of 4,900 for the fourth quarter versus 8,200 closed orders per day for the fourth quarter of 2012; 56% of fourth quarter closed title orders were purchase related versus 33% in the fourth quarter of 2012
  • Fourth quarter purchase orders opened and closed decreased by 3% and 2%, respectively, versus the fourth quarter of 2012
  • Fourth quarter commercial title revenue of $146 million, a 2% decrease from the strong fourth quarter of 2012, driven by a 5% improvement in the commercial fee per file offset by a 6% decrease in closed orders; open commercial orders increased by 2% over the prior year
  • Overall fourth quarter average fee per file of $2,082, a 33% increase over the fourth quarter of 2012 and a 15% sequential increase from the third quarter of 2013; residential and local commercial fee per file (excluding national commercial business) of $1,676 versus $1,312 for the fourth quarter of 2012, a 28% increase over the prior year period and a 7% sequential improvement versus the third quarter of 2013

The following are summary financial results for the core operations of FNF for the three-month and twelve-month periods ended December 31, 2013 and 2012:

 

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

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Total revenue

$1,385

$1,595

Net earnings

$81

$143

Net earnings per diluted share

$0.32

$0.62

Adjusted net earnings

$94

$147

Adjusted net earnings per diluted share

$0.37

$0.64

Free cash flow

$38

$160

Twelve Months Ended    December 31, 2013

Twelve Months Ended December 31, 2012

Total revenue

$5,956

$5,633

Net earnings

$428

$451

Net earnings per diluted share

$1.82

$2.00

Adjusted net earnings

$471

$473

Adjusted net earnings per diluted share

$2.01

$2.09

Free cash flow

$323

$440

    

FNT ($ in millions)

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Total revenue

$1,372

$1,580

Pre-tax earnings

$158

$249

Realized gains (losses)

$8

(4)

Adjusted pre-tax earnings

$150

$253

Adjusted pre-tax margin

11.0%

16.0%

Twelve Months Ended    December 31, 2013

Twelve Months Ended December 31, 2012

Total revenue

$5,894

$5,586

Pre-tax earnings

$821

$776

Realized gains

$18

$1

Claims recoupment impairment

--

$11

Adjusted pre-tax earnings

$803

$786

Adjusted pre-tax margin

13.7%

14.1%

Month

Direct Orders Opened*/ (% Purchase)

Direct Orders Closed*/ (% Purchase)

October 2013

156,000 (54%)

112,000 (55%)

November 2013

124,000 (54%)

94,000 (55%)

December 2013

112,000 (56%)

101,000 (58%)

Fourth Quarter 2013

392,000 (55%)

307,000 (56%)

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

October 2012

268,000 (31%)

179,000 (33%)

November 2012

215,000 (32%)

164,000 (33%)

December 2012

194,000 (32%)

175,000 (34%)

Fourth Quarter 2012

677,000 (32%)

518,000 (33%)

Open Commercial Orders

Closed Commercial Orders

Commercial Revenue (millions)

Commercial Fee Per File

4th Quarter 2013

19,300

12,800

$146

$11,400

4th Quarter 2012

18,900

13,600

$149

$10,900

 

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

 

Portfolio Company Investments -Total ($ in millions except per share amounts)

Three Months Ended December 31, 2013

Three Months Ended

December 31, 2012

Total revenue

$690

$633

Net earnings (loss)

($5)

$9

Net earnings (loss) per diluted share

($0.02)

$0.04

Adjusted net earnings

$14

$19

Adjusted net earnings per diluted share

$0.06

$0.08

Free cash flow

$78

$47

Twelve Months Ended    December 31, 2013

Twelve Months Ended

December 31, 2012

Total revenue

$2,622

$1,535

Net earnings (loss)

($26)

$156

Net earnings (loss) per diluted share

($0.11)

$0.69

Adjusted net earnings

$38

$29

Adjusted net earnings per diluted share

$0.16

$0.13

Free cash flow

$59

$101

 

The following are summary financial results for the two major, consolidated portfolio company investments of FNF for the three-month and twelve-month periods ended December 31, 2013 and 2012:   

 

Restaurant Group ($ in millions)

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Operating revenue

$371

$357

Realized losses

($1)

($2)

Total revenue

$370

$355

Pre-tax earnings (loss)

$8

($4)

Depreciation & amortization

$13

$15

Interest expense

$2

$2

EBITDA

$23

$13

Realized losses

$1

$2

Transaction and integration costs

$2

$4

Adjusted EBITDA

$26

$19

Adjusted EBITDA margin

7.0%

5.3%

Twelve Months Ended December 31, 2013

Twelve Months Ended (Partial – May 11 – December 31) December 31, 2012

Operating revenue

$1,408

$908

Realized gains (losses)

($1)

$119

Total revenue

$1,407

$1,027

Pre-tax earnings

$12

$102

Depreciation & amortization

$53

$35

Interest expense

$8

3

EBITDA

$73

$140

Realized (gains) losses

$1

($119)

Transaction and integration costs

$7

$19

Adjusted EBITDA

$81

$40

Adjusted EBITDA margin

5.8%

4.4%

Remy ($ in millions)

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Operating revenue

$293

$274

Interest and investment income

$1

$1

Total revenue

$294

$275

Pre-tax earnings

$15

$9

Depreciation & amortization

$18

$21

Interest expense

$4

$7

EBITDA

$37

$37

Stock compensation/other adjustments

$1

$3

Adjusted EBITDA

$38

$40

Adjusted EBITDA margin

13.0%

14.6%

Twelve Months Ended December 31, 2013

Twelve Months Ended (Partial – August 15 - December 31) December 31, 2012

Operating revenue

$1,127

$417

Interest and investment income

$2

$1

Realized gains (losses)

($4)

$79

Total revenue

$1,125

$497

Pre-tax earnings

$22

$90

Depreciation & amortization

$76

$28

Interest expense

$20

$10

EBITDA

$118

$128

Realized losses (gains)

$4

($79)

Stock compensation, executive severance and other adjustments

$17

$13

Adjusted EBITDA

$139

$62

Adjusted EBITDA margin

12.3%

14.9%

 

"The fourth quarter was a solid finish to a year of transition in our title insurance business, as we continued to move from a refinance driven market towards what appears to be a more purchase driven market," said Chairman William P. Foley, II.  "While this quarter witnessed the majority of the revenue impact from the steep decline in refinance title orders that began during the summer, we were still able to generate an 11% adjusted pre-tax title margin for the fourth quarter and nearly 14% for the full-year 2013.  In the face of these declining refinance order volumes, we continued to focus on our expense structure, as we eliminated over 700 positions during the fourth quarter and over 2,300 since our staffing peak in May 2013, a staff reduction of nearly 20%.  We are confident these actions have us well positioned to maximize profitability in our title insurance business as we enter what looks to be a much more purchase driven market in 2014.

"We also were pleased to close the Lender Processing Services ("LPS") acquisition on January 2, 2014.  We have separated the combined LPS and ServiceLink businesses into Black Knight Financial Services, our mortgage technology-focused company and ServiceLink, our transaction services businesses.  The long process to closing gave us the opportunity to explore the cost synergy opportunities in more detail.  To this point, we have recognized an estimated $150 million in annualized run-rate synergies and we are now targeting $225 million in total cost synergies.  We are very excited about the future of the Black Knight and ServiceLink companies and look forward to their contribution to the continued success of FNF."

Conference Call FNF will host a call with investors and analysts to discuss fourth quarter 2013 results on Thursday, February 13, 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 12:00 p.m. Eastern time on February 13, 2014, through February 20, 2014, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 316606.

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 and Alamo Title – 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.  In addition, FNF owns majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, J. Alexander's, LLC, Remy International, Inc., Ceridian HCM, Inc., Comdata Inc. and Digital Insurance, Inc.  More information about FNF can be found at www.fnf.com

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 above.

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

 Twelve Months Ended

December 31,

December 31,

2013

2012

2013

2012

Direct title premiums

$423

$517

$1,800

$1,732

Agency title premiums

573

600

2,352

2,101

  Total title premiums

996

1,117

4,152

3,833

Escrow, title-related and other fees

376

448

1,737

1,676

  Total title and escrow

1,372

1,565

5,889

5,509

Restaurant revenue

371

357

1,408

908

Remy revenue

293

274

1,127

417

Interest and investment income

30

35

129

144

Realized gains and losses

5

(6)

12

187

  Total revenue

2,071

2,225

8,565

7,165

Personnel costs

529

541

2,134

1,863

Other operating expenses

299

356

1,319

1,287

Cost of restaurant revenue

315

299

1,204

773

Cost of Remy revenue (includes $17, $20, $72 and $27 of D&A, respectively)

243

225

947

350

Agent commissions

437

456

1,789

1,600

Depreciation and amortization

33

33

137

104

Title claim loss expense

70

79

291

279

Interest expense

22

24

93

74

  Total expenses

1,948

2,013

7,914

6,330

Earnings from continuing operations before taxes

123

212

651

835

Income tax expense

33

59

205

247

Earnings from continuing operations before equity investments

90

153

446

588

Earnings (Loss) from equity investments

(6)

(3)

(26)

10

Net earnings from continuing operations

84

150

420

598

Income (Loss) from discontinued operations, net of tax

1

3

(1)

14

 Net earnings

85

153

419

612

Non-controlling interests

9

1

17

5

Net earnings attributable to common shareholders

$76

$152

$402

$607

Earnings per share:

    Net earnings attributable to common shareholders - basic

$0.31

$0.68

$1.75

$2.75

    Net earnings attributable to common shareholders - diluted

$0.30

$0.66

$1.71

$2.69

   

Weighted average shares – basic

243

224

230

221

Weighted average shares – diluted

251

229

235

226

Direct operations orders opened (000's)

392

677

2,181

2,702

Direct operations orders closed (000's)

307

518

1,708

1,867

Fee per file

$2,082

$1,565

$1,660

$1,487

Actual title claims paid

$100

$131

$403

$433

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

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

(Unaudited)

Total 

FNF

Portfolio

Other

Total

Corporate

Company

Restaurant 

Corporate

Three Months Ended December 31, 2013

Consolidated

Eliminations

FNF Core

FNT

and Other

Investments

Remy

Group

and Other

Direct title premiums

$             423

$                -

$             423

$        423

$             -

$                -

$            -

$            -

$            -

Agency title premiums

573

-

573

573

-

-

-

-

-

Escrow, title related and other fees

376

-

350

339

11

26

-

-

26

Total Title and Escrow

1,372

-

1,346

1,335

11

26

-

-

26

Restaurant revenue

371

-

-

-

-

371

-

371

-

Remy revenue

293

-

-

-

-

293

293

-

-

Interest and investment income

30

(4)

31

29

2

3

1

-

2

Realized gains and losses

5

-

8

8

-

(3)

-

(1)

(2)

  Total revenue

2,071

(4)

1,385

1,372

13

690

294

370

26

Personnel costs

529

-

454

438

16

75

21

18

36

Other operating expenses

299

-

271

253

18

28

10

14

4

Agent commissions

437

-

437

437

-

-

-

-

-

Cost of revenue

558

-

-

-

-

558

243

315

-

Depreciation and amortization

33

-

16

16

-

17

1

13

3

Title claim loss expense

70

-

70

70

-

-

-

-

-

Interest expense

22

(4)

16

-

16

10

4

2

4

  Total expenses

1,948

(4)

1,264

1,214

50

688

279

362

47

Pre-tax earnings from continuing operations

123

-

121

158

(37)

2

15

8

(21)

Pre-tax margin

5.9%

-

8.7%

11.5%

-

0.3%

5.1%

2.2%

-

Adjusted pre-tax margin

5.7%

-

8.2%

11.0%

-

0.7%

5.1%

2.4%

-

Open orders

392

-

392

392

-

-

-

-

-

Closed orders

307

-

307

307

-

-

-

-

-

Total 

FNF

Portfolio

Other

Total

Corporate

Company

Restaurant 

Corporate

Three Months Ended December 31, 2012

Consolidated

Eliminations

FNF Core

FNT

and Other

Investments

Remy

Group

and Other

Direct title premiums

$             517

$                -

$             517

$        517

$             -

$                -

$            -

$            -

$            -

Agency title premiums

600

-

600

600

-

-

-

-

-

Escrow, title related and other fees

448

-

445

433

12

3

-

-

3

Total Title and Escrow

1,565

-

1,562

1,550

12

3

-

-

3

Restaurant revenue

357

-

-

-

-

357

-

357

-

Remy revenue

274

-

-

-

-

274

274

-

-

Interest and investment income

35

(3)

37

34

3

1

1

-

-

Realized gains and losses

(6)

-

(4)

(4)

-

(2)

-

(2)

-

  Total revenue

2,225

(3)

1,595

1,580

15

633

275

355

3

Personnel costs

541

-

486

477

9

55

21

18

16

Other operating expenses

356

-

318

301

17

38

12

25

1

Agent commissions

456

-

456

456

-

-

-

-

-

Cost of revenue

524

-

-

-

-

524

225

299

-

Depreciation and amortization

33

-

17

17

-

16

1

15

-

Title claim loss expense

79

-

79

79

-

-

-

-

-

Interest expense

24

(3)

19

1

18

8

7

2

(1)

  Total expenses

2,013

(3)

1,375

1,331

44

641

266

359

16

Pre-tax earnings from continuing operations

212

-

220

249

(29)

(8)

9

(4)

(13)

Pre-tax margin

9.5%

-

13.8%

15.8%

-

-

3.3%

-

-

Adjusted pre-tax margin

9.8%

-

14.0%

16.0%

-

-

3.3%

-

-

Open orders

677

-

677

677

-

-

-

-

-

Closed orders

518

-

518

518

-

-

-

-

-

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

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

 (Unaudited)

Total

FNF

Portfolio

Other

Total

Corporate

Company 

Restaurant 

Corporate

Twelve Months Ended December 31, 2013

Consolidated

Eliminations

FNF Core

FNT

and Other

Investments

Remy

Group

and Other

Direct title premiums

$          1,800

$                  -

$          1,800

$    1,800

$             -

$                -

$            -

$            -

$            -

Agency title premiums

2,352

-

2,352

2,352

-

-

-

-

-

Escrow, title related and other fees

1,737

-

1,650

1,597

53

87

-

-

87

Total Title and Escrow

5,889

-

5,802

5,749

53

87

-

-

87

Restaurant revenue

1,408

-

-

-

-

1,408

-

1,408

-

Remy revenue

1,127

-

-

-

-

1,127

1,127

-

-

Interest and investment income

129

(13)

136

127

9

6

2

-

4

Realized gains and losses

12

-

18

18

-

(6)

(4)

(1)

(1)

  Total revenue

8,565

(13)

5,956

5,894

62

2,622

1,125

1,407

90

Personnel costs

2,134

-

1,869

1,832

37

265

86

65

114

Other operating expenses

1,319

-

1,189

1,096

93

130

46

65

19

Agent commissions

1,789

-

1,789

1,789

-

-

-

-

-

Cost of revenue

2,151

-

-

-

-

2,151

947

1,204

-

Depreciation and amortization

137

-

68

65

3

69

4

53

12

Title claim loss expense

291

-

291

291

-

-

-

-

-

Interest expense

93

(13)

68

-

68

38

20

8

10

  Total expenses

7,914

(13)

5,274

5,073

201

2,653

1,103

1,395

155

Pre-tax earnings from continuing operations

651

-

682

821

(139)

(31)

22

12

(65)

Pre-tax margin

7.6%

-

11.5%

13.9%

-

-

2.0%

0.9%

-

Adjusted pre-tax margin

7.5%

-

11.2%

13.7%

-

-

2.3%

0.9%

-

Open orders

2,181

-

2,181

2,181

-

-

-

-

-

Closed orders

1,708

-

1,708

1,708

-

-

-

-

-

Total

FNF

Portfolio

Other

Total

Corporate

Company 

Restaurant 

Corporate

Twelve Months Ended December 31, 2012

Consolidated

Eliminations

FNF Core

FNT

and Other

Investments

Remy

Group

and Other

Direct title premiums

$          1,732

$                  -

$          1,732

$    1,732

$             -

$                -

$            -

$            -

$            -

Agency title premiums

2,101

-

2,101

2,101

-

-

-

-

-

Escrow, title related and other fees

1,676

-

1,661

1,613

48

15

-

-

15

Total Title and Escrow

5,509

-

5,494

5,446

48

15

-

-

15

Restaurant revenue

908

-

-

-

-

908

-

908

-

Remy revenue

417

-

-

-

-

417

417

-

-

Interest and investment income

144

(3)

144

139

5

3

1

-

2

Realized gains and losses

187

-

(5)

1

(6)

192

79

119

(6)

  Total revenue

7,165

(3)

5,633

5,586

47

1,535

497

1,027

11

Personnel costs

1,863

-

1,767

1,738

29

96

29

43

24

Other operating expenses

1,287

-

1,187

1,128

59

100

18

71

11

Agent commissions

1,600

-

1,600

1,600

-

-

-

-

-

Cost of revenue

1,123

-

-

-

-

1,123

349

773

1

Depreciation and amortization

104

-

68

64

4

36

1

35

-

Title claim loss expense

279

-

279

279

-

-

-

-

-

Interest expense

74

(3)

61

1

60

16

10

3

3

  Total expenses

6,330

(3)

4,962

4,810

152

1,371

407

925

39

Pre-tax earnings from continuing operations

835

-

671

776

(105)

164

90

102

(28)

Pre-tax margin

11.7%

-

11.9%

13.9%

-

10.7%

18.1%

9.9%

-

Adjusted pre-tax margin

9.3%

-

12.0%

14.1%

-

-

2.6%

-

-

Open orders

2,702

-

2,702

2,702

-

-

-

-

-

Closed orders

1,867

-

1,867

1,867

-

-

-

-

-

 

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Total Quarterly Title Margins (millions except % data)

Total revenue

1,372

1,539

1,613

1,385

1,580

1,443

1,383

1,166

Pre-tax earnings

158

221

272

171

249

207

188

126

Realized (gains)/losses

(8)

(3)

(7)

--

4

--

(1)

(4)

Claims recoupment impairment

--

--

--

--

--

--

11

--

Adjusted pre-tax title earnings

150

218

265

171

253

207

198

122

Adjusted pre-tax title margin

11.0%

14.2%

16.5%

12.3%

16.0%

14.3%

14.3%

10.5%

Total Quarterly Open Orders ('000's except % data)

Total open orders*

392

474

672

643

677

707

667

651

Total open orders per day*

6.2

7.4

10.5

10.5

10.7

11.2

10.4

10.5

Purchase % of open orders

55%

56%

42%

38%

32%

33%

38%

36%

Refinance % of open orders

45%

44%

58%

62%

68%

67%

62%

64%

Total Quarterly Closed Orders ('000's except % data)

Total closed orders*

307

410

504

487

518

480

459

410

Total closed orders per day*

4.9

6.4

7.9

8.0

8.2

7.6

7.2

6.6

Purchase % of closed orders

56%

50%

40%

31%

33%

37%

40%

34%

Refinance % of closed orders

44%

50%

60%

69%

67%

63%

60%

66%

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

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

Revenue

146

120

112

88

149

96

103

83

Open Orders

19.3

19.9

20.3

18.7

18.9

18.9

20.3

19.8

Closed Orders

12.8

12.6

12.3

10.6

13.6

12.2

13.1

11.7

Total Fee Per File 

Fee per file

$2,082

$1,807

$1,562

$1,373

$1,565

$1,467

$1,497

$1,398

Residential and local commercial fee per file

$1,676

$1,562

$1,373

$1,219

$1,312

$1,300

$1,310

$1,231

National commercial fee per file

$11,400

$9,500

$9,100

$8,300

$10,900

$7,800

$7,900

$7,100

Total Staffing

Total title field operations employees

9,900

10,600

12,000

12,000

11,600

11,300

11,000

10,600

FNT Only Quarterly Title Margins (millions except % data)

Total revenue

1,279

1,399

1,434

1,197

1,405

1,294

1,227

1,028

Pre-tax earnings

147

190

231

128

216

186

158

108

Realized (gains)/losses

(8)

(3)

(7)

0

4

--

(1)

(4)

Claims recoupment impairment

--

--

--

--

--

--

11

--

Adjusted pre-tax title earnings

139

187

224

128

220

186

168

104

Adjusted pre-tax title margin

11.0%

13.4%

15.7%

10.7%

15.7%

14.4%

13.7%

10.2%

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

Total open orders*

331

391

516

481

497

525

524

485

Total open orders per day*

5.3

6.1

8.1

7.9

7.9

8.3

8.2

7.8

Total closed orders*

263

323

387

354

396

381

353

323

Total closed orders per day*

4.2

5.0

6.0

5.8

6.3

6.1

5.5

5.2

Fee per file

2,260

2,028

1,747

1,537

1,756

1,602

1,664

1,510

Total title field operations employees

8,928

9,274

10,097

9,881

9,529

9,352

9,148

8,673

ServiceLink Only Quarterly Title Margins (millions except % data)

Total revenue

93

140

179

188

176

149

156

138

Pre-tax earnings

11

31

41

43

32

21

30

18

Pre-tax title margin

11.6%

22.1%

22.9%

22.9%

18.2%

14.1%

19.2%

13.0%

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

Total open orders*

61

83

156

162

180

182

143

166

Total open orders per day*

1.0

1.3

2.4

2.7

2.9

2.9

2.2

2.7

Total closed orders*

44

87

117

133

122

99

106

87

Total closed orders per day*

0.7

1.4

1.8

2.2

1.9

1.6

1.7

1.4

Fee per file

1,013

989

951

936

946

945

937

988

Total ServiceLink operations employees

972

1,326

1,903

2,119

2,071

1,948

1,852

1,927

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions, except per share amounts)

December 31,

Intercompany

FNF Core

Portfolio

Company Investments

December 31,

2013

2013

2013

2013

2012

 (Unaudited)

 (Unaudited)

(Unaudited)

 (Unaudited)

Cash and investment portfolio

$5,760

$(33)

$5,235

$558

$5,186

Goodwill and other intangibles

2,519

-

1,554

965

1,909

Title plant

370

-

370

-

374

Total assets

10,524

(129)

8,017

2,636

9,903

Notes payable

1,323

(111)

983

451

1,344

Reserve for title claim losses

1,636

-

1,636

-

1,748

Secured trust deposits

588

-

588

-

528

Non-controlling interest

474

-

10

464

481

Total equity

5,542

-

3,880

1,662

4,749

Book value per share

$22.14

-

$15.50

$6.64

$20.78

 

 

FIDELITY NATIONAL FINANCIAL, INC.

NON-GAAP RECONCILIATIONS

(In millions, except per share amounts)

Total

Portfolio

Total

Company 

Three Months Ended December 31, 2013

Consolidated

FNF Core

Investments

Net earnings

$               76

$               81

$               (5)

EPS

$            0.30

$            0.32

$         (0.02)

Non-GAAP adjustments (presented net of tax):

Expenses related to acquisition of LPS

3

3

-

Executive separation charge

7

7

-

Ceridian non-recurring costs

7

-

7

Purchase price amortization

15

3

12

Adjusted net earnings

$             108

$               94

$              14

Adjusted EPS

$            0.43

$            0.37

$           0.06

Net cash flows provided by operations

$             140

$               46

$              94

Non-GAAP adjustments

Expenses related to acquisition of LPS

5

5

-

Adjusted cash flows from operations

145

51

94

Less: Capital expenditures

29

13

16

Free cash flow

$             116

$               38

$              78

Total

Portfolio

Total

Company 

Three Months Ended December 31, 2012

Consolidated

FNF Core

Investments

Net earnings

$             152

$             143

$                 9

EPS

$            0.66

$            0.62

$           0.04

Non-GAAP adjustments (presented net of tax):

Purchase price amortization

14

4

10

Adjusted earnings

$             166

$             147

$              19

Adjusted EPS

$            0.72

$            0.64

$           0.08

Net cash flows provided by operations

$             243

$             177

$              66

Less: Capital expenditures

36

17

19

Free cash flow

$             207

$             160

$              47

 

 

 

FIDELITY NATIONAL FINANCIAL, INC.

NON-GAAP RECONCILIATIONS

(In millions, except per share amounts)

Total

Portfolio

Total

Company 

Twelve Months Ended December 31, 2013

Consolidated

FNF Core

Investments

Net earnings

$             402

$             428

$             (26)

EPS

$            1.71

$            1.82

$         (0.11)

Non-GAAP adjustments (presented net of tax):

Expenses related to acquisition of LPS

11

11

-

Executive separation charge

12

7

5

Employment litigation matter

14

14

-

Ceridian non-recurring costs

17

-

17

Purchase price amortization

53

11

42

Adjusted net earnings

$             509

$             471

$              38

Adjusted EPS

$            2.17

$            2.01

$           0.16

Net cash flows provided by operations

$             484

$             354

$            130

Non-GAAP adjustments

Expenses related to acquisition of LPS

16

16

-

Executive separation charge

7

-

7

Employment litigation matter

20

20

-

Adjusted cash flows from operations

527

390

137

Less: Capital expenditures

145

67

78

Free cash flow

$             382

$             323

$              59

Total

Portfolio

Total

Company 

Twelve Months Ended December 31, 2012

Consolidated

FNF Core

Investments

Net earnings

$             607

$             451

$            156

EPS

$            2.69

$            2.00

$           0.69

Non-GAAP adjustments (presented net of tax):

Gain on consolidation of O'Charley's and ABRH

$              (51)

$                -

$             (51)

Bargain purchase gain on O'Charley's

(34)

-

(34)

Gain on consolidation of Remy

(56)

-

(56)

Claim recoupment impairment

8

8

-

Purchase price amortization

28

14

14

Adjusted earnings

$             502

$             473

$              29

Adjusted EPS

$            2.22

$            2.09

$           0.13

Net cash flows provided by operations

$             620

$             476

$            144

Less: Capital expenditures

79

36

43

Free cash flow

$             541

$             440

$            101

 

 

SOURCE Fidelity National Financial, Inc.



RELATED LINKS

http://www.fnf.com