Fidelity National Financial, Inc. Reports Record First Quarter Results

Apr 26, 2001, 01:00 ET from Fidelity National Financial, Inc.

    IRVINE, Calif., April 26 /PRNewswire/ -- Fidelity National Financial, Inc.
 (NYSE:   FNF), the nation's largest provider of title insurance and real estate
 related products and services, today reported operating results for the three-
 month period ended March 31, 2001.  Because the acquisition of Chicago Title
 occurred on March 20, 2000, prior year comparisons may not be meaningful.
     Net cash earnings, which exclude goodwill amortization, were $56.5 million
 for the first quarter of 2001, compared with $16.9 million for the first
 quarter of 2000.  Net cash earnings per diluted share were $.72 versus $.50 in
 the prior year period.  The first quarter 2000 results excluded certain non-
 recurring charges totaling $13.4 million, after applicable income taxes.
     Net earnings were $45.0 million for the first quarter of 2001, compared
 with $15.2 million for the first quarter of 2000.  Net earnings per diluted
 share were $.57 versus $.45 in the prior year period.  Including the effect of
 the non-recurring charges, net earnings and net earnings per diluted share
 were $1.9 million and $.06, respectively, for the first quarter of 2000.
     "We achieved record earnings this quarter," said Chairman and Chief
 Executive Officer William P. Foley, II.  "Both cash earnings of $56.5 million
 and net earnings of $45.0 million were the highest quarterly results in the
 history of Fidelity National Financial.  We also recently announced the
 signing of a definitive agreement with VISTAinfo to form a jointly owned real
 estate services company.  This transaction gives us a common platform and a
 more comprehensive array of products and services to offer to all participants
 in a real estate transaction.  We can uniquely bundle these real estate data
 products and services and more efficiently increase the penetration to
 existing customers, as well as capitalize on new channels of distribution."
 
     Highlights included:
     Revenues for the first quarter of 2001 were $778 million, compared with
 $378 million for the first quarter of 2000.  Total title premiums were
 $535 million for the first quarter of 2001, compared with $260 million for the
 prior year period.
     The following table depicts monthly direct orders opened and closed for
 the fourth quarter of 2000 and the first quarter of 2001:
 
 
           Month         Direct Orders Opened      Direct Orders Closed
 
     October 2000               140,100                     99,600
     November 2000              127,200                     93,700
     December 2000              114,100                     95,000
     Fourth Quarter 2000        381,400                    288,300
 
     January 2001               193,600                     90,300
     February 2001              201,500                    104,300
     March 2001                 235,200                    145,300
     First Quarter 2001         630,300                    339,900
 
     "Direct orders opened increased 65% over the fourth quarter of 2000 and
 finished the quarter strongly," said President and Chief Operating Officer
 Patrick F. Stone.  "As expected, direct closed orders gained significant
 momentum as the quarter progressed, ending the quarter at their highest daily
 levels.  Our order pipeline positions us extremely well for the second
 quarter."
     Foley concluded, "We have terrific momentum heading into the next several
 quarters.  Longer term, we believe that our position as the clear market
 leader across the residential, refinance and commercial sectors will allow us
 to achieve the diversification of earnings that all stockholders seek."
     Additionally, the Company will be presenting at the New York Society of
 Security Analysts Specialty Finance Industry Conference on Monday, April 30.
 The presentation will take place at 11 a.m. Eastern time at One World Trade
 Center, Suite 4447, New York, NY 10048.
     Fidelity National Financial, Inc. is the nation's largest title insurance
 and diversified real estate related services company.  The Company's title
 insurance underwriters -- Fidelity National Title, Chicago Title, Ticor Title,
 Security Union Title and Alamo Title -- together issue approximately 30
 percent of all title insurance policies nationally.  The company provides
 title insurance in 49 states, the District of Columbia, Guam, Mexico, Puerto
 Rico, the U.S. Virgin Islands and Canada.
     In addition, Fidelity, through its principal subsidiaries, performs other
 real estate-related services such as escrow, appraisal services, collection
 and trust activities, real estate information and technology services,
 trustee's sale guarantees, credit reporting, flood certifications, real estate
 tax services, reconveyances, recordings, foreclosure publishing and posting
 services and exchange intermediary services in connection with real estate
 transactions.  More information about the Company can be found on Fidelity's
 website, located at www.fnf.com.
 
     This press release contains forward-looking statements.  The words
 "believe," "expects," "intend," "anticipate," "will," and "project," and other
 similar expressions identify forward-looking statements, which speak only as
 of the date the statement was made.  The company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as a result
 of new information, future events or otherwise.  Forward-looking statements
 are inherently subject to risks and uncertainties, some of which cannot be
 predicted or quantified.  Future events and actual results could differ
 materially from those set forth in, contemplated by, or underlying the
 forward-looking statements.  The risks and uncertainties which forward-looking
 statements are subject to include, but are not limited to, the effect of
 governmental regulations, competition and other risks detailed from time to
 time in the company's filings with the Securities and Exchange Commission.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                              SUMMARY OF EARNINGS
         (In thousands except per share amounts and order information)
                                  (Unaudited)
 
 
                                                     Three months ended
                                                          March 31,
                                                    2001            2000
 
      Direct title premiums                      $249,707         $102,466
      Agency title premiums                       285,133          157,934
         Total title premiums                     534,840          260,400
 
      Escrow and other title-related fees         141,399           58,225
      Real estate related services                 56,550           20,870
      Interest and investment income               27,848           14,700
      Other income                                 17,227           23,462
         Total revenue                            777,864          377,657
 
      Personnel costs                             250,824          110,707
      Other operating expenses                    176,009          110,563
      Agent commissions                           221,928          125,908
      Claim loss expense                           26,741           14,585
      Interest expense                             14,382            6,579
         Total expenses                           689,884          368,342
 
      Earnings before amortization of cost
       in excess of net assets acquired            87,980            9,315
      Amortization of cost in excess
       of net assets acquired                      11,722            1,654
      Earnings before income taxes                 76,258            7,661
      Income tax expense                           31,266            5,792
 
      Net earnings                                $44,992           $1,869
 
      Net earnings per share - basic                $0.59            $0.06
      Net earnings per share - diluted              $0.57            $0.06
 
      Weighted average shares - basic              76,047           32,526
      Weighted average shares - diluted            78,719           33,954
 
      Direct orders opened (1)                    630,300          172,700
      Direct orders closed (1)                    339,900          106,900
 
     (1) Includes Chicago Title beginning April 1, 2000.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                          NET CASH EARNINGS PER SHARE
                    (In thousands except per share amounts)
                                  (Unaudited)
 
 
                                                     Three months ended
                                                          March 31,
                                                    2001            2000
 
      Net earnings                                $44,992          $1,869
      Amortization of cost in excess
       of net assets acquired                      11,722           1,654
      Tax effect of amortization of cost in
       excess of net assets acquired                 (247)             --
      Non-recurring charges, net of tax                --          13,371
      Net cash earnings                           $56,467         $16,894
      Diluted net cash earnings per share           $0.72           $0.50
      Diluted weighted average shares
       Outstanding                                 78,719          33,954
 
 
     The table presented above excludes the amortization of cost in excess of
 net assets acquired related to acquisitions and excludes certain non-recurring
 charges that were recorded in the first quarter of 2000; all other customary
 non-cash charges such as claim loss expense, depreciation expense and normal
 recurring accruals are included.  Amortization of cost in excess of net assets
 acquired and the non-recurring charges are non-cash charges against earnings
 which are reflected in typical earnings per share calculations.  This table
 presents cash earnings per share of the company and is not prepared in
 accordance with generally accepted accounting principles and may not be
 consistent with the presentation of cash earnings per share made by other
 companies.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                       SUMMARY BALANCE SHEET INFORMATION
                    (In thousands except per share amounts)
 
 
                                                 March 31,      December 31,
                                                   2001             2000
                                                (Unaudited)
 
     Total Assets                              $3,915,939      $3,833,985
     Total Equity                               1,420,676       1,106,737
     Book Value Per Share                           18.16           15.93
 
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                http://tbutton.prnewswire.com/prn/11690X64121573
 
 

SOURCE Fidelity National Financial, Inc.
    IRVINE, Calif., April 26 /PRNewswire/ -- Fidelity National Financial, Inc.
 (NYSE:   FNF), the nation's largest provider of title insurance and real estate
 related products and services, today reported operating results for the three-
 month period ended March 31, 2001.  Because the acquisition of Chicago Title
 occurred on March 20, 2000, prior year comparisons may not be meaningful.
     Net cash earnings, which exclude goodwill amortization, were $56.5 million
 for the first quarter of 2001, compared with $16.9 million for the first
 quarter of 2000.  Net cash earnings per diluted share were $.72 versus $.50 in
 the prior year period.  The first quarter 2000 results excluded certain non-
 recurring charges totaling $13.4 million, after applicable income taxes.
     Net earnings were $45.0 million for the first quarter of 2001, compared
 with $15.2 million for the first quarter of 2000.  Net earnings per diluted
 share were $.57 versus $.45 in the prior year period.  Including the effect of
 the non-recurring charges, net earnings and net earnings per diluted share
 were $1.9 million and $.06, respectively, for the first quarter of 2000.
     "We achieved record earnings this quarter," said Chairman and Chief
 Executive Officer William P. Foley, II.  "Both cash earnings of $56.5 million
 and net earnings of $45.0 million were the highest quarterly results in the
 history of Fidelity National Financial.  We also recently announced the
 signing of a definitive agreement with VISTAinfo to form a jointly owned real
 estate services company.  This transaction gives us a common platform and a
 more comprehensive array of products and services to offer to all participants
 in a real estate transaction.  We can uniquely bundle these real estate data
 products and services and more efficiently increase the penetration to
 existing customers, as well as capitalize on new channels of distribution."
 
     Highlights included:
     Revenues for the first quarter of 2001 were $778 million, compared with
 $378 million for the first quarter of 2000.  Total title premiums were
 $535 million for the first quarter of 2001, compared with $260 million for the
 prior year period.
     The following table depicts monthly direct orders opened and closed for
 the fourth quarter of 2000 and the first quarter of 2001:
 
 
           Month         Direct Orders Opened      Direct Orders Closed
 
     October 2000               140,100                     99,600
     November 2000              127,200                     93,700
     December 2000              114,100                     95,000
     Fourth Quarter 2000        381,400                    288,300
 
     January 2001               193,600                     90,300
     February 2001              201,500                    104,300
     March 2001                 235,200                    145,300
     First Quarter 2001         630,300                    339,900
 
     "Direct orders opened increased 65% over the fourth quarter of 2000 and
 finished the quarter strongly," said President and Chief Operating Officer
 Patrick F. Stone.  "As expected, direct closed orders gained significant
 momentum as the quarter progressed, ending the quarter at their highest daily
 levels.  Our order pipeline positions us extremely well for the second
 quarter."
     Foley concluded, "We have terrific momentum heading into the next several
 quarters.  Longer term, we believe that our position as the clear market
 leader across the residential, refinance and commercial sectors will allow us
 to achieve the diversification of earnings that all stockholders seek."
     Additionally, the Company will be presenting at the New York Society of
 Security Analysts Specialty Finance Industry Conference on Monday, April 30.
 The presentation will take place at 11 a.m. Eastern time at One World Trade
 Center, Suite 4447, New York, NY 10048.
     Fidelity National Financial, Inc. is the nation's largest title insurance
 and diversified real estate related services company.  The Company's title
 insurance underwriters -- Fidelity National Title, Chicago Title, Ticor Title,
 Security Union Title and Alamo Title -- together issue approximately 30
 percent of all title insurance policies nationally.  The company provides
 title insurance in 49 states, the District of Columbia, Guam, Mexico, Puerto
 Rico, the U.S. Virgin Islands and Canada.
     In addition, Fidelity, through its principal subsidiaries, performs other
 real estate-related services such as escrow, appraisal services, collection
 and trust activities, real estate information and technology services,
 trustee's sale guarantees, credit reporting, flood certifications, real estate
 tax services, reconveyances, recordings, foreclosure publishing and posting
 services and exchange intermediary services in connection with real estate
 transactions.  More information about the Company can be found on Fidelity's
 website, located at www.fnf.com.
 
     This press release contains forward-looking statements.  The words
 "believe," "expects," "intend," "anticipate," "will," and "project," and other
 similar expressions identify forward-looking statements, which speak only as
 of the date the statement was made.  The company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as a result
 of new information, future events or otherwise.  Forward-looking statements
 are inherently subject to risks and uncertainties, some of which cannot be
 predicted or quantified.  Future events and actual results could differ
 materially from those set forth in, contemplated by, or underlying the
 forward-looking statements.  The risks and uncertainties which forward-looking
 statements are subject to include, but are not limited to, the effect of
 governmental regulations, competition and other risks detailed from time to
 time in the company's filings with the Securities and Exchange Commission.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                              SUMMARY OF EARNINGS
         (In thousands except per share amounts and order information)
                                  (Unaudited)
 
 
                                                     Three months ended
                                                          March 31,
                                                    2001            2000
 
      Direct title premiums                      $249,707         $102,466
      Agency title premiums                       285,133          157,934
         Total title premiums                     534,840          260,400
 
      Escrow and other title-related fees         141,399           58,225
      Real estate related services                 56,550           20,870
      Interest and investment income               27,848           14,700
      Other income                                 17,227           23,462
         Total revenue                            777,864          377,657
 
      Personnel costs                             250,824          110,707
      Other operating expenses                    176,009          110,563
      Agent commissions                           221,928          125,908
      Claim loss expense                           26,741           14,585
      Interest expense                             14,382            6,579
         Total expenses                           689,884          368,342
 
      Earnings before amortization of cost
       in excess of net assets acquired            87,980            9,315
      Amortization of cost in excess
       of net assets acquired                      11,722            1,654
      Earnings before income taxes                 76,258            7,661
      Income tax expense                           31,266            5,792
 
      Net earnings                                $44,992           $1,869
 
      Net earnings per share - basic                $0.59            $0.06
      Net earnings per share - diluted              $0.57            $0.06
 
      Weighted average shares - basic              76,047           32,526
      Weighted average shares - diluted            78,719           33,954
 
      Direct orders opened (1)                    630,300          172,700
      Direct orders closed (1)                    339,900          106,900
 
     (1) Includes Chicago Title beginning April 1, 2000.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                          NET CASH EARNINGS PER SHARE
                    (In thousands except per share amounts)
                                  (Unaudited)
 
 
                                                     Three months ended
                                                          March 31,
                                                    2001            2000
 
      Net earnings                                $44,992          $1,869
      Amortization of cost in excess
       of net assets acquired                      11,722           1,654
      Tax effect of amortization of cost in
       excess of net assets acquired                 (247)             --
      Non-recurring charges, net of tax                --          13,371
      Net cash earnings                           $56,467         $16,894
      Diluted net cash earnings per share           $0.72           $0.50
      Diluted weighted average shares
       Outstanding                                 78,719          33,954
 
 
     The table presented above excludes the amortization of cost in excess of
 net assets acquired related to acquisitions and excludes certain non-recurring
 charges that were recorded in the first quarter of 2000; all other customary
 non-cash charges such as claim loss expense, depreciation expense and normal
 recurring accruals are included.  Amortization of cost in excess of net assets
 acquired and the non-recurring charges are non-cash charges against earnings
 which are reflected in typical earnings per share calculations.  This table
 presents cash earnings per share of the company and is not prepared in
 accordance with generally accepted accounting principles and may not be
 consistent with the presentation of cash earnings per share made by other
 companies.
 
 
                       FIDELITY NATIONAL FINANCIAL, INC.
                       SUMMARY BALANCE SHEET INFORMATION
                    (In thousands except per share amounts)
 
 
                                                 March 31,      December 31,
                                                   2001             2000
                                                (Unaudited)
 
     Total Assets                              $3,915,939      $3,833,985
     Total Equity                               1,420,676       1,106,737
     Book Value Per Share                           18.16           15.93
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64121573
 
 SOURCE  Fidelity National Financial, Inc.