FNF Core Reports Fourth Quarter 2014 Adjusted EPS of $0.50; Adjusted Pre-Tax Title Margin of 14.1% and Black Knight Adjusted EBITDA Margin of 43.0%

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Feb 18, 2015, 04:04 ET

JACKSONVILLE, Fla., Feb. 18, 2015 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results of its core segment (NYSE:FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and twelve-month periods ended December 31, 2014.

Total revenue of approximately $1.7 billion in the fourth quarter versus $1.4 billion in the fourth quarter of 2013
Adjusted fourth quarter net earnings of $144 million versus adjusted net earnings of $81 million for the fourth quarter of 2013
Adjusted fourth quarter core diluted EPS of $0.50 versus adjusted core diluted EPS of $0.34 in the fourth quarter of 2013
Fourth quarter core free cash flow provided of $139 million versus $47 million provided in the fourth quarter of 2013

Title

Approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $207 million and adjusted pre-tax title margin of 14.1% for the fourth quarter versus approximately $1.4 billion in total revenue, adjusted pre-tax earnings of $147 million and an adjusted pre-tax title margin of 10.8% in the fourth quarter of 2013
Adjusted pre-tax title margin of 14.1% was a 330 basis point improvement over the fourth quarter 2013 adjusted pre-tax title margin of 10.8%
ServiceLink generated $211 million in revenue, adjusted EBITDA of $27 million, an adjusted EBITDA margin of 13%, adjusted pre-tax earnings of $23 million and an adjusted pre-tax margin of 11% for the fourth quarter
Open orders per day of 7,175 for the fourth quarter versus 6,206 open orders per day for the fourth quarter of 2013
Closed orders per day of 5,302 for the fourth quarter versus 4,873 closed orders per day for the fourth quarter of 2013
Fourth quarter purchase orders opened and closed increased by 11% and 9%, respectively, versus the fourth quarter of 2013; purchase orders opened and closed were both essentially flat versus the fourth quarter of 2013 excluding ServiceLink default related purchase orders
Fourth quarter national commercial title revenue of $166 million, a 14% increase from the fourth quarter of 2013, driven by a 15% improvement in the commercial fee per file and a 1% decrease in closed orders; open commercial orders decreased by 6% over the prior year
Overall fourth quarter average fee per file of $2,131, a 2% increase over the fourth quarter of 2013
Title claims paid of $78 million, a decrease of $22 million, or 22%, from the fourth quarter of 2013

Title Orders

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
October 2014		176,000	53%		115,000	60%
November 2014		133,000	52%		97,000	56%
December 2014		143,000	51%		122,000	54%

Fourth Quarter 2014		452,000	52%		334,000	57%

		Direct Orders Opened *		Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
October 2013		156,000	54%	112,000	55%
November 2013		124,000	54%	94,000	55%
December 2013		111,000	56%	101,000	58%

Fourth Quarter 2013		391,000	55%	307,000	56%

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

Open

Closed

Commercial

Revenue

Commercial

Orders

(In millions)

Fee Per File

Fourth Quarter 2014

18,100

12,700

$166

$13,100

Fourth Quarter 2013

19,300

12,800

$146

$11,400

- 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.

Black Knight

Total revenue of $220 million, led by Servicing Technology revenue of approximately $155 million
Revenue growth of 12% for the fourth quarter compared to the prior year period legacy LPS results, led by Data and Analytics, RealEC and Servicing Technology
Adjusted EBITDA of $96 million and adjusted EBITDA margin of 43.0%, a 70 basis point sequential margin improvement from the third quarter of 2014

"This was a strong finish to a great year for our title insurance business," said Chairman William P. Foley, II. "Despite a continued sluggish real estate market, we achieved a 14.1% pre-tax title margin for the fourth quarter, more than a 14.3% pre-tax title margin for the last three quarters of 2014 and a 12.5% pre-tax title margin for the full-year 2014. Overall, we are proud of the financial results we posted in our title business in 2014 and we remain confident in our ability to generate a 15%-20% pre-tax title margin in an improving real estate market.

"Black Knight had another impressive quarter, generating 12% revenue growth and an adjusted EBITDA margin of 43%, a 70 basis point sequential margin improvement from the third quarter of 2014. We remain excited about the organic revenue growth opportunity at Black Knight, as the sales pipeline is strong across our technology and data and analytics businesses as we enter 2015. We also announced the initial filing of a Black Knight IPO registration statement with the SEC in December and are working towards having Black Knight operate as an FNF majority-owned, publicly-traded company in 2015."

Conference Call
We will host a call with investors and analysts to discuss fourth quarter 2014 FNF Core results on Thursday, February 19, 2015, 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 February 19, 2015, through February 26, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 351178.

About FNF
Fidelity National Financial, Inc. (FNF) is organized into two groups, FNF Core (NYSE: FNF) and FNF Ventures (NYSE: FNFV). Through our Core operations, 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. In addition, in our FNFV group, we own majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, J. Alexander's, LLC , Ceridian HCM, Inc., Fleetcor Technologies, 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 below.

Black Knight IPO Information
The proposed Black Knight initial public offering will be made only be means of a prospectus. A copy of the preliminary prospectus may be obtained, when available, from the book-running manager(s) of the proposed offering.

A registration statement on Form S-1 relating to the proposed offering has been filed with the SEC, but has not yet become effective. The shares to be registered may not be sold nor may offers to buy be accepted prior to the time when the registration statement becomes effective. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements and Risk Factors
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. No assurance can be given as to the value of Black Knight's common stock, the price at which its common stock may be offered in the proposed offering, the trading price of such common stock after the proposed offering or whether a liquid market for such common stock will develop or be maintained. 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.

This press release should be read in conjunction with the press release filed for the results of FNFV on this same date as well as the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-Q,10-K and other filings with the Securities and Exchange Commission.

FIDELITY NATIONAL FINANCIAL CORE
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Three Months Ended* *December 31, 2014*	Total FNF Core			Title			BKFS			FNF Core Corporate and Other

Direct title premiums	$	478		$	478		$	—		$	—
Agency title premiums	494			494			—			—
Escrow, title related and other fees	679			461			220			(2)
Total title and escrow	1,651			1,433			220			(2)

Interest and investment income	33			33			—			—
Realized gains and losses	4			4			—			—
Total revenue	1,688			1,470			220			(2)

Personnel costs	588			483			99			6
Agent commissions	373			373			—			—
Other operating expenses	379			340			38			1
Depreciation and amortization	83			36			46			1
Claim loss expense	59			59			—			—
Interest expense	29			—			8			21
Total expenses	1,511			1,291			191			29

Pre-tax earnings from continuing operations	$	177		$	179		$	29		$	(31)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	$	(4)		$	(4)		$	—		$	—
Deferred revenue adjustment for BKFS	3			—			3			—
Transaction costs related to acquisition of LPS	6			3			3			—
Severance costs related to acquisition of LPS	2			2			—			—
Synergy bonus accrual	6			2			3			1
Payroll accrual	3			—			3			—
Other legal matters	2			1			1			—
Purchase price amortization	46			24			22			—
Total non-GAAP adjustments before taxes	$	64		$	28		$	35		$	1

Adjusted pre-tax earnings from continuing operations	$	241		$	207		$	64		$	(30)
Adjusted pre-tax margin from continuing operations	14.3		%	14.1		%	28.7		%	—

Purchase price amortization	(46)			(24)			(22)			—
Interest expense	29			—			8			21
Depreciation and amortization	83			36			46			1

Adjusted EBITDA	$	307		$	219		$	96		$	(8)
Adjusted EBITDA margin	18.2		%	14.9		%	43.0		%	—

ServiceLink non-GAAP reconciliations:
ServiceLink pre-tax loss	$	(7)
Depreciation & Amortization	25
ServiceLink EBITDA	$	18
Severance and other LPS acquisition costs	7
Other adjustments	2
ServiceLink Adjusted EBITDA	$	27

ServiceLink pre-tax loss	$	(7)
Purchase price amortization	21
Severance and other LPS acquisition costs	7
Other adjustments	2
ServiceLink adjusted pre-tax earnings	$	23

FIDELITY NATIONAL FINANCIAL CORE
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Three Months Ended* *December 31, 2014*	Total FNF Core		Title		BKFS		FNF Core Corporate and Other

Pre-tax earnings from continuing operations	$	177	$	179	$	29	$	(31)
Income tax expense	70		67		4		(1)
Earnings from equity investments	1		1		—		—
Non-controlling interests	8		(6)		14		—

Net earnings attributable to FNF Group common shareholders	$	100	$	119	$	11	$	(30)

EPS attributable to FNF Group common shareholders - basic	$	0.37	$	0.43	$	0.04	$	(0.11)
EPS attributable to FNF Group common shareholders - diluted	$	0.35	$	0.42	$	0.03	$	(0.10)

FNF Group weighted average shares - basic	276
FNF Group weighted average shares - diluted	286

Net earnings attributable to FNF Group common shareholders	$	100	$	119	$	11	$	(30)

Total non-GAAP, pre-tax adjustments	64		28		35		1
Noncontrolling interest on non-GAAP adjustments	(4)		(5)		1		—
Income taxes on non-GAAP adjustments	(16)		(7)		(9)		—
Total non-GAAP adjustments	44		16		27		1

Adjusted net earnings attributable to FNF Group common shareholders	$	144	$	135	$	38	$	(29)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.50	$	0.47	$	0.13	$	(0.10)

Direct orders opened (000's)	452		452
Direct orders closed (000's)	334		334
Fee per file	$	2,131	$	2,131
Actual title claims paid	$	78	$	78

Cash flows provided by operations:	$	158
Non-GAAP adjustments:
Transaction costs related to acquisition of LPS	6
Synergy bonus payment	11
Severance costs related to acquisition of LPS	2
Total non-GAAP adjustments	19

Adjusted cash flows from operations	177
Capital expenditures	38
Free cash flow	$	139

FIDELITY NATIONAL FINANCIAL CORE
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Three Months Ended* *December 31, 2013*	Total FNF Core			Title			FNF Core Corporate and Other
Direct title premiums	$	423		$	423		$	—
Agency title premiums	573			573			—
Escrow, title related and other fees	351			340			11
Total title and escrow	1,347			1,336			11

Interest and investment income	28			30			(2)
Realized gains and losses	7			8			(1)
Total revenue	1,382			1,374			8

Personnel costs	460			445			15
Agent commissions	437			437			—
Other operating expenses	267			251			16
Depreciation and amortization	18			16			2
Claim loss expense	70			70			—
Interest expense	16			—			16
Total expenses	1,268			1,219			49

Pre-tax earnings from continuing operations	$	114		$	155		$	(41)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	$	(7)		$	(8)		$	1
Transaction costs related to acquisition of LPS	8			2			6
Executive severance	9			—			9
Premium tax adjustment	(5)			(5)			—
Purchase price amortization	3			3			—
Total non-GAAP adjustments before taxes	$	8		$	(8)		$	16

Adjusted pre-tax earnings from continuing operations	$	122		$	147		$	(25)
Adjusted pre-tax margin from continuing operations	8.9		%	10.8		%	—

Purchase price amortization	(3)			(3)			—
Interest expense	16			—			16
Depreciation and amortization	18			16			2

Adjusted EBITDA	$	153		$	160		$	(7)
Adjusted EBITDA margin	11.1		%	11.7		%	—

FIDELITY NATIONAL FINANCIAL CORE
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Three Months Ended* *December 31, 2013*	Total FNF Core		Title		FNF Core Corporate and Other

Pre-tax earnings from continuing operations	$	114	$	155	$	(41)

Income tax expense	40		61		(21)
Earnings from equity investments	—		1		(1)
Earnings (loss) from discontinued operations, net of tax	1		1		—

Net earnings attributable to Old FNF common shareholders	$	75	$	96	$	(21)

EPS attributable to Old FNF common shareholders - basic	$	0.33	$	0.42	$	(0.09)
EPS attributable to Old FNF common shareholders - diluted	$	0.32	$	0.41	$	(0.09)

Old FNF weighted average shares - basic	230
Old FNF weighted average shares - diluted	235

Net earnings attributable to Old FNF common shareholders	$	75	$	96	$	(21)

Total non-GAAP, pre-tax adjustments	8		(8)		16
Income taxes on non-GAAP adjustments	(2)		3		(5)
Total non-GAAP adjustments	6		(5)		11

Adjusted net earnings attributable to Old FNF common shareholders	$	81	$	91	$	(10)

Adjusted EPS attributable to Old FNF common shareholders - diluted	$	0.34	$	0.39	$	(0.04)

Direct orders opened (000's)	391		391
Direct orders closed (000's)	307		307
Fee per file	$	2,082	$	2,082
Actual title claims paid	$	100	$	100

Cash flows provided by operations:	$	46
Non-GAAP adjustments:
Transaction costs related to acquisition of LPS	5
Executive severance payment	9
Total non-GAAP adjustments	14

Adjusted cash flows from operations	60
Capital expenditures	13
Free cash flow	$	47

FIDELITY NATIONAL FINANCIAL CORE
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Twelve Months Ended* *December 31, 2014*	Total FNF Core			Title			BKFS			FNF Core Corporate and Other
Direct title premiums	$	1,727		$	1,727		$	—		$	—
Agency title premiums	1,944			1,944			—			—
Escrow, title related and other fees	2,694			1,855			852			(13)
Total title and escrow	6,365			5,526			852			(13)

Interest and investment income	121			122			—			(1)
Realized gains and losses	4			4			—			—
Total revenue	6,490			5,652			852			(14)

Personnel costs	2,370			1,896			449			25
Agent commissions	1,471			1,471			—			—
Other operating expenses	1,557			1,370			199			(12)
Depreciation and amortization	336			145			188			3
Claim loss expense	228			228			—			—
Interest expense	122			—			31			91
Total expenses	6,084			5,110			867			107

Pre-tax earnings from continuing operations	$	406		$	542		$	(15)		$	(121)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	$	(4)		$	(4)		$	—		$	—
Deferred revenue adjustment for BKFS	13			—			13			—
Transaction costs related to acquisition of LPS	62			35			53			(26)
Severance costs related to acquisition of LPS	47			20			27			—
Synergy bonus accrual	73			30			31			12
Premium tax settlement	(8)			(8)			—			—
Payroll accrual	3			—			3			—
Other legal matters	23			1			12			10
Purchase price amortization	183			88			95			—
Total non-GAAP adjustments before taxes	$	392		$	162		$	234		$	(4)

Adjusted pre-tax earnings from continuing operations	$	798		$	704		$	219		$	(125)
Adjusted pre-tax margin from continuing operations	12.3		%	12.5		%	25.3		%	—

Purchase price amortization	(183)			(88)			(95)			—
Interest expense	122			—			31			91
Depreciation and amortization	336			145			188			3

Adjusted EBITDA	$	1,073		$	761		$	343		$	(31)
Adjusted EBITDA margin	16.5		%	13.5		%	39.7		%	—

FIDELITY NATIONAL FINANCIAL CORE
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Twelve Months Ended* *December 31, 2014*	Total FNF Core		Title		BKFS		FNF Core Corporate and Other

Pre-tax earnings from continuing operations	$	406	$	542	$	(15)	$	(121)

Income tax expense	162		196		(7)		(27)
Earnings from equity investments	4		4		—		—
Earnings (loss) from discontinued operations, net of tax	(1)		(1)		—		—
Non-controlling interests	(68)		(42)		(26)		—

Net earnings attributable to FNF common shareholders	$	315	$	391	$	18	$	(94)

EPS attributable to Old FNF common shareholders - basic	$	0.37	$	0.50	$	(0.04)	$	(0.09)
EPS attributable to Old FNF common shareholders - diluted	$	0.36	$	0.49	$	(0.03)	$	(0.10)

EPS attributable to FNF Group common shareholders - basic	$	0.77	$	0.90	$	0.13	$	(0.26)
EPS attributable to FNF Group common shareholders - diluted	$	0.75	$	0.87	$	0.11	$	(0.23)

Old FNF weighted average shares - basic	138
Old FNF weighted average shares - diluted	142

FNF Group weighted average shares - basic	138
FNF Group weighted average shares - diluted	142

Net earnings attributable to FNF common shareholders	$	315	$	391	$	18	$	(94)

Total non-GAAP, pre-tax adjustments	392		162		234		(4)
Noncontrolling interest on non-GAAP adjustments	(123)		(54)		(69)		—
Income taxes on non-GAAP adjustments	(95)		(39)		(58)		2
Total non-GAAP adjustments	174		69		107		(2)

Adjusted net earnings attributable to FNF common shareholders*	$	489	$	460	$	125	$	(96)

Adjusted EPS attributable to FNF common shareholders - diluted*	$	1.72	$	1.62	$	0.44	$	(0.34)
* Adjusted EPS is presented as if Old FNF common shareholders and FNF Group common shareholders combined.

Direct orders opened (000's)	1,914		1,914
Direct orders closed (000's)	1,319		1,319
Fee per file	$	2,014	$	2,014
Actual title claims paid	$	304	$	304

Cash flows provided by operations:	$	453
Non-GAAP adjustments:
Transaction costs related to acquisition of LPS	54
Severance costs related to acquisition of LPS	47
Synergy bonus payment	67
Premium tax settlement	15
Other legal matters	8
Total non-GAAP adjustments	191

Adjusted cash flows from operations	644
Capital expenditures	120
Free cash flow	$	524

FIDELITY NATIONAL FINANCIAL CORE
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Twelve Months Ended* *December 31, 2013*	Total FNF Core		Title		FNF Core Corporate and Other
Direct title premiums	$	1,800	$	1,800	$	—
Agency title premiums	2,352		2,352		—
Escrow, title related and other fees	1,650		1,597		53
Total title and escrow	5,802		5,749		53

Interest and investment income	123		127		(4)
Realized gains and losses	18		18		—
Total revenue	5,943		5,894		49

Personnel costs	1,882		1,845		37
Agent commissions	1,789		1,789		—
Other operating expenses	1,189		1,096		93
Depreciation and amortization	68		65		3
Claim loss expense	291		291		—
Interest expense	68		—		68
Total expenses	5,287		5,086		201

Pre-tax earnings from continuing operations	$	656	$	808	$	(152)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	$	(18)	$	(18)	$	—
Deferred revenue adjustment for BKFS	—		—		—
Transaction costs related to acquisition of LPS	17		2		15
Executive severance	9		—		9
Premium tax adjustment	(5		(5		—
Other legal matters	20		—		20
Purchase price amortization	12		12		—
Total non-GAAP adjustments before taxes	$	35	$	(9)	$	44

Adjusted pre-tax earnings from continuing operations	$	691	$	799	$	(108)
Adjusted pre-tax margin from continuing operations	11.7		13.6		—

Purchase price amortization	(12)		(12)		—
Interest expense	68		—		68
Depreciation and amortization	68		65		3

Adjusted EBITDA	$	815	$	852	$	(37)
Adjusted EBITDA margin	13.8		14.5		—

FIDELITY NATIONAL FINANCIAL CORE
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

*Twelve Months Ended* *December 31, 2013*	Total FNF Core		Title		FNF Core Corporate and Other

Pre-tax earnings from continuing operations	$	656	$	808	$	(152)

Income tax expense	237		297		(60)
Earnings from equity investments	4		5		(1)
Earnings from discontinued operations, net of tax	2		2		—
Non-controlling interests	4		4		—

Net earnings attributable to FNF common shareholders	$	421	$	514	$	(93)

EPS attributable to Old FNF common shareholders - basic	$	1.83	$	2.23	$	(0.40)
EPS attributable to Old FNF common shareholders - diluted	$	1.79	$	2.19	$	(0.40)

Old FNF weighted average shares - basic	230
Old FNF weighted average shares - diluted	235

Net earnings attributable to FNF common shareholders	$	421	$	514	$	(93)

Total non-GAAP, pre-tax adjustments	35		(9)		44
Income taxes on non-GAAP adjustments	(11)		3		(14)
Total non-GAAP adjustments	24		(6)		30

Adjusted net earnings attributable to Old FNF common shareholders	$	445	$	508	$	(63)

Adjusted EPS attributable to Old FNF common shareholders - diluted	$	1.89	$	2.16	$	(0.27)

Direct orders opened (000's)	2,181		2,181
Direct orders closed (000's)	1,708		1,708
Fee per file	$	1,660	$	1,660
Actual title claims paid	$	403	$	403

Cash flows provided by operations:	$	354
Non-GAAP adjustments:
Transaction costs related to acquisition of LPS	17
Executive severance payment	9
Other legal matters	20
Total non-GAAP adjustments	46

Adjusted cash flows from operations	400
Capital expenditures	67
Free cash flow	$	333

FIDELITY NATIONAL FINANCIAL CORE
QUARTERLY OPERATING STATISTICS
(Unaudited)

	Q4 2014			Q3 2014			Q2 2014			Q1 2014			Q4 2013			Q3 2013			Q2 2013			Q1 2013
Quarterly Open Orders ('000's except % data)
Total open orders*	452			481			514			469			391			474			672			643
Total open orders per day*	7.2			7.5			8.0			7.7			6.2			7.4			10.5			10.5
Purchase % of open orders	52		%	60		%	60		%	55		%	55		%	56		%	42		%	38		%
Refinance % of open orders	48		%	40		%	40		%	45		%	45		%	44		%	58		%	62		%
Total closed orders*	334			348			342			295			307			410			504			487
Total closed orders per day*	5.3			5.4			5.3			4.8			4.9			6.4			7.9			8.0
Purchase % of closed orders	57		%	62		%	61		%	52		%	56		%	50		%	40		%	31		%
Refinance % of closed orders	43		%	38		%	39		%	48		%	44		%	50		%	60		%	69		%

Commercial (millions, except orders in '000's)
Revenue	$	166		$	136		$	115		$	104		$	146		$	120		$	112		$	88
Open Orders	18.1			21.4			22.2			19.6			19.3			19.9			20.3			18.7
Closed Orders	12.7			12.8			20.3			10.2			12.8			12.6			12.3			10.6

Total Fee Per File
Fee per file	$	2,131		$	2,066		$	1,982		$	1,858		$	2,082		$	1,807		$	1,562		$	1,373
Residential and local commercial fee per file	$	1,699		$	1,739		$	1,750		$	1,559		$	1,676		$	1,562		$	1,373		$	1,219
National commercial fee per file	$	13,100		$	10,600		$	9,800		$	10,200		$	11,400		$	9,500		$	9,100		$	8,300

Total Staffing
Total field operations employees	9,900			10,200			10,200			10,300			9,900			10,600			12,000			12,000

FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total open orders*	354			385			403			349			331			391			516			481
Total open orders per day*	5.6			6.0			6.3			5.7			5.3			6.1			8.1			7.9
Purchase % of open orders	60		%	69		%	71		%	71		%	65		%	68		%	56		%	58		%
Refinance % of open orders	40		%	31		%	29		%	29		%	35		%	32		%	44		%	42		%
Total closed orders*	273			282			272			219			263			323			387			354
Total closed orders per day*	4.3			4.4			4.3			3.6			4.2			5.0			6.0			5.8
Purchase % of closed orders	63		%	70		%	71		%	67		%	66		%	64		%	52		%	44		%
Refinance % of closed orders	37		%	30		%	29		%	33		%	34		%	36		%	48		%	56		%
Fee per file	2,382			2,306			2,227			2,151			2,260			2,028			1,747			1,537
Total title field operations employees	8,700			8,900			8,700			8,600			8,900			9,300			10,100			9,900

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total Open Orders*	98			96			111			120			60			83			156			162
Total open orders per day*	1.6			1.5			1.7			2.0			1.0			1.3			2.4			2.7
Purchase % of open orders	23		%	23		%	20		%	7			—			—			—			—
Refinance % of open orders	77		%	77		%	80		%	93		%	100		%	100		%	100		%	100		%
Total closed orders	61			66			70			76			44			87			117			133
Total closed orders per day*	1.0			1.0			1.1			1.2			0.7			1.4			1.8			2.2
Purchase % of closed orders	26		%	24		%	18		%	6			—			—			—			—
Refinance % of closed orders	74		%	76		%	82		%	94		%	100		%	100		%	100		%	100		%
Fee per file	1,027			1,052			1,038			1,009			1,013			989			951			936
Total ServiceLink operating employees	1,200			1,300			1,500			1,700			970			1,300			1,900			2,100

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

FIDELITY NATIONAL FINANCIAL CORE

SUMMARY BALANCE SHEET INFORMATION

(In millions)

FNF Core

December 31,

2014

FNF Core

December 31,

2013

(Unaudited)

Cash and investment portfolio

4,360

5,235

Goodwill

4,514

1,438

Title plant

393

370

Total assets

11,944

8,028

Notes payable

2,702

983

Reserve for title claim losses

1,621

1,636

Secured trust deposits

622

588

Redeemable non-controlling interests

717

—

Non-redeemable non-controlling interests

(60)

Total equity and redeemable non-controlling interests

5,272

3,896

Total equity attributable to common shareholders

4,615

3,886

FNF Core

December 31,

2014

FNFV

December 31, 2014

Consolidated

December 31,

2014

Consolidated

December 31,

2013

(Unaudited)

(Unaudited)

Cash and investment portfolio

4,360

1,009

5,369

5,761

Goodwill

4,514

206

4,720

1,901

Title plant

393

—

393

370

Total assets

11,944

1,923

13,867

10,529

Notes payable

2,702

124

2,826

1,323

Reserve for title claim losses

1,621

—

1,621

1,636

Secured trust deposits

622

—

622

588

Redeemable non-controlling interests

717

—

717

—

Non-redeemable non-controlling interests

(60)

137

474

Total equity and redeemable non-controlling interests

5,272

1,515

6,787

5,535

Total equity attributable to common shareholders

4,615

1,378

5,993

5,061

FIDELITY NATIONAL FINANCIAL, INC.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2014						December 31, 2014
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	478	$	478	$	—	$	1,727	$	1,727	$	—
Agency title premiums	494		494		—		1,944		1,944		—
Total title premiums	972		972		—		3,671		3,671		—
Escrow, title-related and other fees	707		679		28		2,804		2,694		110
Total title and escrow and other	1,679		1,651		28		6,475		6,365		110

Restaurant revenue	381		—		381		1,436		—		1,436
Interest and investment income	33		33		—		126		121		5
Realized gains and losses	(7)		4		(11)		(13)		4		(17)
Total revenue	2,086		1,688		398		8,024		6,490		1,534

Personnel costs	644		588		56		2,540		2,370		170
Other operating expenses	404		379		25		1,643		1,557		86
Cost of restaurant revenue	321		—		321		1,220		—		1,220
Agent commissions	373		373		—		1,471		1,471		—
Depreciation and amortization	101		83		18		403		336		67
Title claim loss expense	59		59		—		228		228		—
Interest expense	31		29		2		127		122		5
Total expenses	1,933		1,511		422		7,632		6,084		1,548

Earnings from continuing operations before taxes	153		177		(24)		392		406		(14)
Income tax expense	233		70		163		312		162		150
Earnings from continuing operations before equity investments	(80)		107		(187)		80		244		(164)
Loss from equity investments	475		1		474		432		4		428
Net earnings from continuing operations	395		108		287		512		248		264
Loss from discontinued operations, net of tax	8		—		8		7		(1)		8
Net earnings	403		108		295		519		247		272
Non-controlling interests	11		8		3		(64)		(68)		4
Net earnings attributable to common shareholders	$	392	$	100	$	292	$	583	$	315	$	268

Cash flows provided by operations	275		158		117		559		453		106

FIDELITY NATIONAL FINANCIAL, INC.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2013						December 31, 2013
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	423	$	423	$	—	$	1,800	$	1,800	$	—
Agency title premiums	573		573		—		2,352		2,352		—
Total title premiums	996		996		—		4,152		4,152		—
Escrow, title-related and other fees	376		351		25		1,737		1,650		87
Total title and escrow and other	1,372		1,347		25		5,889		5,802		87

Restaurant revenue	371		—		371		1,408		—		1,408
Interest and investment income	29		28		1		127		123		4
Realized gains and losses	5		7		(2)		16		18		(2)
Total revenue	1,777		1,382		395		7,440		5,943		1,497

Personnel costs	515		460		55		2,061		1,882		179
Other operating expenses	289		267		22		1,273		1,189		84
Cost of restaurant revenue	315		—		315		1,204		—		1,204
Agent commissions	437		437		—		1,789		1,789		—
Depreciation and amortization	32		18		14		133		68		65
Title claim loss expense	70		70		—		291		291		—
Interest expense	18		16		2		73		68		5
Total expenses	1,676		1,268		408		6,824		5,287		1,537

Earnings from continuing operations before taxes	101		114		(13)		616		656		(40)
Income tax expense	27		40		(13)		195		237		(42)
Earnings from continuing operations before equity investments	74		74		—		421		419		2
(Loss) earnings from equity investments	(6)		—		(6)		(26)		4		(30)
Net earnings from continuing operations	68		74		(6)		395		423		(28)
Earnings from discontinued operations, net of tax	9		1		8		6		2		4
Net earnings	77		75		2		401		425		(24)
Non-controlling interests	3		—		3		7		4		3
Net earnings attributable to common shareholders	$	74	$	75	$	(1)	$	394	$	421	$	(27)

Cash flows provided by operations	140		46		94		484		354		130