FNF Group Reports Second Quarter 2015 Adjusted EPS of $0.65, Adjusted Pre-Tax Title Margin of 16.2%, BKFS Adjusted Revenue Growth of 7% and Adjusted EBITDA Margin of 43.5%

Jul 29, 2015, 16:05 ET from Fidelity National Financial, Inc.

JACKSONVILLE, Fla., July 29, 2015 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results of FNF Group  (NYSE: FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and six-month periods ended June 30, 2015.

  • Total revenue of approximately $2.0 billion in the second quarter versus $1.7 billion in the second quarter of 2014
  • Adjusted second quarter net earnings of $187 million versus adjusted net earnings of $141 million for the second quarter of 2014
  • Adjusted second quarter diluted EPS of $0.65 versus adjusted diluted EPS of $0.50 in the second quarter of 2014
  • Second quarter free cash flow provided of $289 million versus $223 million provided in the second quarter of 2014

Title

  • Approximately $1.8 billion in total revenue, adjusted pre-tax earnings of $286 million and adjusted pre-tax title margin of 16.2% for the second quarter versus approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $208 million and an adjusted pre-tax title margin of 14.2% in the second quarter of 2014
  • Adjusted pre-tax title margin of 16.2% was a 200 basis point improvement over the second quarter 2014 adjusted pre-tax title margin of 14.2%
  • ServiceLink generated $224 million in revenue, adjusted EBITDA of $34 million, an adjusted EBITDA margin of 15%, adjusted pre-tax earnings of $29 million and an adjusted pre-tax margin of 13% for the second quarter
  • Open orders per day of 8,750 for the second quarter versus 8,031 open orders per day for the second quarter of 2014
  • Closed orders per day of 6,375 for the second quarter versus 5,344 closed orders per day for the second quarter of 2014
  • Second quarter purchase orders opened and closed increased by 7% and 12%, respectively, versus the second quarter of 2014; purchase orders opened and closed increased by 7% and 11%, respectively, versus the second quarter of 2014 excluding ServiceLink default related purchase orders
  • Total commercial revenue of $258 million, a 41% increase over total commercial revenue in the second quarter of 2014; second quarter national commercial title revenue of $150 million, a 30% increase from the second quarter of 2014, driven by a 22% improvement in the commercial fee per file and a 6% increase in closed orders; open national commercial orders decreased by 5% over the prior year
  • Overall second quarter average fee per file of $2,026, a 2% increase versus the second quarter of 2014
  • Title claims paid of $70 million, a decrease of $9 million, or 11%, from the second quarter of 2014

Title Orders

Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% Purchase)

April 2015

202,000

53%

138,000

51%

May 2015

174,000

58%

129,000

54%

June 2015

184,000

61%

141,000

57%

Second Quarter 2015

560,000

57%

408,000

54%

Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% 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%

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

 

 

Open

Closed

Commercial

Commercial

Commercial

Revenue

Commercial

Orders*

Orders*

(In millions)

Fee Per File*

Second Quarter 2015 - Total Commercial

50,800

32,400

$258

$8,000

Second Quarter 2014 - Total Commercial

$183

Second Quarter 2015 - National Commercial

21,200

12,500

$150

$12,000

Second Quarter 2014 - National Commercial

22,200

11,800

$115

$9,800

     * Total commercial order and fee per file tracking began in January 2015

 

BKFS

  • Adjusted revenue of $235 million, led by Servicing Technology revenue of approximately $160 million
  • Adjusted revenue growth of 7% for the second quarter compared to the second quarter of 2014, led by strong growth in Origination Technology and Data & Analytics
  • Adjusted EBITDA of $102 million and adjusted EBITDA margin of 43.5%

"We generated a 16.2% adjusted pre-tax title margin this quarter in a strong commercial environment and a steadily improving residential real estate market," said Chairman William P. Foley, II.  "The performance of our title business this quarter gives us further confidence that we can continue to generate pre-tax title margins in the 15%-20% range as we experience further strength in the residential purchase market. We remain the most profitable title insurance company and believe our financial performance should warrant a premium market multiple versus our title company peers.

"Black Knight continues to perform to our high expectations, generating 7% adjusted revenue growth and a 43.5% adjusted EBITDA margin in the second quarter.  We completed the Black Knight IPO in May and look forward to FNF shareholders sharing in the benefit of Black Knight trading as a stand-alone, public company. 

"In conjunction with the IPO, Black Knight repaid FNF $1.5 billion in intercompany and mirror notes and FNF utilized $1.1 billion of those proceeds to fully repay the term loan that was borrowed in conjunction with the January 2014 LPS acquisition.  Additionally, we repurchased 1.3 million shares of FNF common stock between June 1st and the first week of July and we expect to continue repurchasing FNF shares throughout the remainder of 2015."

Conference Call We will host a call with investors and analysts to discuss second quarter 2015 FNF Core results on Thursday, July 30, 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 July 30, 2015, through August 6, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 362665.

About Fidelity National Financial, Inc. Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV).  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.  FNFV holds 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 and FNFV 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.

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.  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.

 

 


 

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF Group


Title


BKFS


FNF Group
Corporate and
Other

Three Months Ended





June 30, 2015





Direct title premiums


$

547



$

547



$



$


Agency title premiums


597



597






Escrow, title related and other fees (1)


827



591



232



4


Total title and escrow


1,971



1,735



232



4











Interest and investment income


32



32






Realized gains and losses (2)


(8)



1



(5)



(4)


Total revenue


1,995



1,768



227













Personnel costs


652



543



102



7


Agent commissions


451



451






Other operating expenses


453



403



41



9


Depreciation and amortization


87



37



50




Claim loss expense


69



69






Interest expense


31





11



20


Total expenses


1,743



1,503



204



36











Pre-tax earnings (loss) from continuing operations (3)


$

252



$

265



$

23



$

(36)











Non-GAAP adjustments before taxes









  Realized (gain) loss, net adjustment


$

8



$

(1)



$

5



$

4


  Deferred revenue add back and management fee


4



1



3




  Purchase price amortization


44



21



23




  IPO costs & profits interest acceleration


10





10




 Total non-GAAP adjustments before taxes


$

66



$

21



$

41



$

4











  Adjusted pre-tax earnings (loss) from continuing ops.


$

318



$

286



$

64



$

(32)


  Adjusted pre-tax margin from continuing operations


15.9

%


16.2

%


27.2

%












Purchase price amortization


(44)



(21)



(23)




Depreciation and amortization


87



37



50




Interest expense


31





11



20











  Adjusted EBITDA


$

392



$

302



$

102



$

(12)


  Adjusted EBITDA margin


19.5

%


17.1

%


43.5

%












ServiceLink non-GAAP reconciliations:









ServiceLink pre-tax earnings


$

10








Depreciation and amortization


23








ServiceLink EBITDA


$

33








Management fee


1








ServiceLink Adjusted EBITDA


$

34

















ServiceLink pre-tax earnings


$

10








Purchase price amortization


18








Management fee


1








ServiceLink adjusted pre-tax earnings


$

29








1.

BKFS also reported adjusted revenue of $235 million, which includes $3 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA

2.

BKFS recorded the $5 million write-off of bond premium interest in other expense

3.

 BKFS reported pre-tax earnings of $8 million, which includes $15 million of intercompany interest expense that was eliminated in FNF consolidation

 

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF Group


Title


BKFS


FNF Group
Corporate
and Other

Three Months Ended





June 30, 2015





Pre-tax earnings (loss) from continuing operations


$

252


$

265


$

23


$

(36)

  Income tax expense (benefit)


95


97



(2)

  Non-controlling interests


(3)


(5)


2











Net earnings (loss) attributable to FNF Group common shareholders


$

160


$

173


$

21


$

(34)










EPS attributable to FNF Group common shareholders - basic


$

0.57


$

0.62


$

0.07


$

(0.12)

EPS attributable to FNF Group common shareholders - diluted


$

0.56


$

0.60


$

0.08


$

(0.12)










FNF Group weighted average shares - basic


279







FNF Group weighted average shares - diluted


287
















Net earnings (loss) attributable to FNF Group common shareholders


$

160


$

173


$

21


$

(34)










 Total non-GAAP, pre-tax adjustments


66


21


41


4

  Noncontrolling interest on non-GAAP adjustments


(23)


(7)


(16)


  Income taxes on non-GAAP adjustments


(16)


(5)


(9)


(2)

Total non-GAAP adjustments


27


9


16


2










Adjusted net earnings (loss) attributable to FNF Group common shareholders


$

187


$

182


$

37


$

(32)









Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.65


$

0.64


$

0.13


$

(0.12)










Direct orders opened (000's)


560


560





Direct orders closed (000's)


408


408





Fee per file


$

2,026


$

2,026





Actual title claims paid


$

70


$

70














Cash flows provided by operations:


$

330







Non-GAAP adjustments:









  IPO costs


4







  THL Management fee


1







Total non-GAAP adjustments


5
















Adjusted cash flows from operations


335







Capital expenditures


46







Free cash flow


$

289







 

 

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Three Months Ended





June 30, 2014





Direct title premiums


$

433



$

433



$



$


Agency title premiums


518



518






Escrow, title related and other fees (1)


689



481



213



(5)


Total title and escrow


1,640



1,432



213



(5)











Interest and investment income


33



33






Total revenue


1,673



1,465



213



(5)











Personnel costs


587



474



110



3


Agent commissions


395



395






Other operating expenses


386



329



48



9


Depreciation and amortization


68



35



32



1


Claim loss expense


57



57






Interest expense


31





7



24


Total expenses


1,524



1,290



197



37











Pre-tax earnings (loss) from continuing operations (2)


$

149



$

175



$

16



$

(42)











Non-GAAP adjustments before taxes









  Deferred revenue add back


4





4




Severance expense


3



1



2




  Synergy accrual


26



12



11



3


  Merger transaction costs


9



7



2




  Premium tax settlement


(8)



(8)






  Other legal matters


14





8



6


  Purchase price amortization


30



21



9




 Total non-GAAP adjustments before taxes


$

78



$

33



$

36



$

9











  Adjusted pre-tax earnings (loss) from continuing operations


$

227



$

208



$

52



$

(33)


  Adjusted pre-tax margin from continuing operations


13.5

%


14.2

%


24.0

%












Purchase price amortization


(30)



(21)



(9)




Depreciation and amortization


68



35



32



1


Interest expense


31





7



24











  Adjusted EBITDA (3)


$

296



$

222



$

82



$

(8)


  Adjusted EBITDA margin


17.7

%


15.2

%


37.8

%



1.

BKFS also reported adjusted revenue of $218 million, which includes $4 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA; FNF reports in millions which can cause small rounding differences

2.

BKFS reported a pre-tax loss of $24 million, which includes $25 million of intercompany interest expense that was eliminated in FNF consolidation and a $15 million LPS related purchase depreciation adjustment that FNF did not book due to immateriality

3.

BKFS adjusted EBITDA adds back stock based compensation of $2 million and FNF reports in millions which can cause small rounding differences

 

 

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Three Months Ended





June 30, 2014





Pre-tax loss from continuing operations


$

149


$

175


$

16


$

(42)










  Income tax expense


55


50



5

  Earnings from equity investments


2


2



  Loss from discontinued operations, net of tax


(1)


(1)



  Non-controlling interests


(14)


(9)


(5)











Net earnings (loss) attributable to Old FNF common shareholders


$

109


$

135


$

21


$

(47)










EPS attributable to Old FNF common shareholders - basic


$

0.39


$

0.49


$

0.07


$

(0.17)

EPS attributable to Old FNF common shareholders - diluted


$

0.39


$

0.48


$

0.07


$

(0.16)










Old FNF weighted average shares - basic


275







Old FNF weighted average shares - diluted


283
















Net earnings (loss) attributable to Old FNF common shareholders


$

109


$

135


$

21


$

(47)










 Total non-GAAP, pre-tax adjustments


78


33


36


9

  Income taxes on non-GAAP adjustments


(19)


(7)


(8)


(4)

  Noncontrolling interest on non-GAAP adjustments


(27)


(14)


(13)


Total non-GAAP adjustments


32


12


15


5










Adjusted net earnings (loss) attributable to Old FNF common shareholders


$

141


$

147


$

36


$

(42)










Adjusted EPS attributable to Old FNF common shareholders - diluted


$

0.50


$

0.52


$

0.13


$

(0.15)










Direct orders opened (000's)


514


514





Direct orders closed (000's)


342


342





Fee per file


$

1,982


$

1,982





Actual title claims paid


$

79


$

79














Cash flows provided by operations:


$

190







Non-GAAP adjustments:









  Transaction costs related to acquisition of LPS


3







  Severance costs related to acquisition of LPS


3







  Synergy bonus payment


31







  Premium tax settlement


15







  THL management fee


1







  Other legal matters


6







Total non-GAAP adjustments


59
















Adjusted cash flows from operations


249







Capital expenditures


26







Free cash flow


$

223







 

 

FNF GROUP
YTD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Six Months Ended





June 30, 2015





Direct title premiums


$

964



$

964



$



$


Agency title premiums


1,038



1,038






Escrow, title related and other fees (1)


1,522



1,063



459




Total title and escrow


3,524



3,065



459













Interest and investment income


62



62






Realized gains and losses (2)


(8)



1



(5)



(4)


Total revenue


3,578



3,128



454



(4)











Personnel costs


1,237



1,026



199



12


Agent commissions


784



784






Other operating expenses


825



741



78



6


Depreciation and amortization


170



74



95



1


Claim loss expense


120



120






Interest expense


60





19



41


Total expenses


3,196



2,745



391



60











Pre-tax earnings (loss) from continuing operations (3)


$

382



$

383



$

63



$

(64)











Non-GAAP adjustments before taxes









  Realized (gain) loss, net adjustment


8



$

(1)



5



4


  Deferred revenue add back and management fee


7



1



6




  Purchase price amortization


87



43



44




  IPO costs & profits interest acceleration


10





10




 Total non-GAAP adjustments before taxes


$

112



$

43



$

65



$

4











  Adjusted pre-tax earnings (loss) from continuing operations


$

494



$

426



$

128



$

(60)


  Adjusted pre-tax margin from continuing operations


13.8

%


13.6

%


27.6

%












Purchase price amortization


(87)



(43)



(44)




Depreciation and amortization


170



74



95



1


Interest expense


60





19



41











  Adjusted EBITDA (4)


$

637



$

457



$

198



$

(18)


  Adjusted EBITDA margin


17.7

%


14.6

%


42.7

%



1.

BKFS also reported adjusted revenue of $464, which includes $5 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA

2.

BKFS recorded the $5 million write-off of bond premium interest in other expense

3.

BKFS reported pre-tax earnings of $23 million, which includes $40 million of intercompany interest expense that was eliminated in FNF consolidation

4.

BKFS adjusted EBITDA adds back stock based compensation of $3 million and FNF reports in millions which can cause small rounding differences

 

 

FNF GROUP
YTD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Six Months Ended





June 30, 2015





Pre-tax loss from continuing operations


$

382


$

383


$

63


$

(64)










  Income tax expense


142


140



2

  Earnings from equity investments


2


2



  Non-controlling interests


(4)


(11)


7











Net earnings (loss) attributable to FNF Group common shareholders


$

246


$

256


$

56


$

(66)










EPS attributable to FNF Group common shareholders - basic


$

0.88


$

0.92


$

0.20


$

(0.24)

EPS attributable to FNF Group common shareholders - diluted


$

0.86


$

0.89


$

0.20


$

(0.23)










FNF Group weighted average shares - basic


278







FNF Group weighted average shares - diluted


287
















Net earnings (loss) attributable to FNF Group common shareholders


$

246


$

256


$

56


$

(66)










 Total non-GAAP, pre-tax adjustments


112


43


65


4

  Income taxes on non-GAAP adjustments


(28)


(11)


(15)


(2)

  Noncontrolling interest on non-GAAP adjustments


(37)


(13)


(24)


Total non-GAAP adjustments


47


19


26


2










Adjusted net earnings attributable to FNF Group common shareholders


$

293


$

275


$

82


$

(64)










Adjusted EPS attributable to FNF Group common shareholders - diluted


$

1.02


$

0.96


$

0.29


$

(0.23)










Direct orders opened (000's)


1,138


1,138





Direct orders closed (000's)


753


753





Fee per file


$

1,938


$

1,938





Actual title claims paid


$

130


$

130














Cash flows provided by operations:


$

356







Non-GAAP adjustments:









  IPO Cost


4







  Management fee


2







Total non-GAAP adjustments


6
















Adjusted cash flows from operations


362







Capital expenditures


80







Free cash flow


$

282







 

 

FNF GROUP
YTD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Six Months Ended





June 30, 2014





Direct title premiums


$

784



$

784



$



$


Agency title premiums


922



922






Escrow, title related and other fees (1)


1,307



903



418



(14)


Total title and escrow


3,013



2,609



418



(14)















Interest and investment income


61



61






Realized gains and losses


2



2






Total revenue


3,076



2,672



418



(14)















Personnel costs


1,200



936



254



10


Agent commissions


702



702






Other operating expenses


785



679



125



(19)


Depreciation and amortization


169



73



94



2


Claim loss expense


110



110






Interest expense


61





15



46


Total expenses


3,027



2,500



488



39















Pre-tax earnings (loss) from continuing operations (2)


$

49



$

172



$

(70)



$

(53)















Non-GAAP adjustments before taxes













  Realized (gain) loss, net adjustment


(2)



(2)






  Deferred revenue add back


8





8




Severance expense


41



15



26




  Synergy accrual


58



25



24



9


  Merger transaction costs


52



29



49



(26)


  Premium tax settlement


(8)



(8)






  Other legal matters


16





8



8


  Purchase price amortization


91



43



48




 Total non-GAAP adjustments before taxes


$

256



$

102



$

163



$

(9)












  Adjusted pre-tax earnings (loss) from continuing operations


$

305



$

274



$

93



$

(62)


  Adjusted pre-tax margin from continuing operations


9.9

%


10.3

%


22.1

%












Purchase price amortization


(91)



(43)



(48)




Depreciation and amortization


169



73



94



2


Interest expense


61





15



46











  Adjusted EBITDA (3)


$

444



$

304



$

154



$

(14)


  Adjusted EBITDA margin


14.4

%


11.4

%


36.6

%



1.

BKFS also reported adjusted revenue of $425 million, which includes $8 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA; FNF reports in millions which can cause small rounding differences

2.

BKFS reported a pre-tax loss of $120 million, which includes $50 million of intercompany interest expense that was eliminated in FNF consolidation

3.

BKFS adjusted EBITDA adds back stock based compensation of $3 million and FNF reports in millions which can cause small rounding differences

 

 

 

FNF GROUP
YTD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)




Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Six Months Ended





June 30, 2014





Pre-tax loss from continuing operations


$

49


$

172


$

(70)


$

(53)










  Income tax expense (benefit)


18


60


(11)


(31)

  Earnings from equity investments


2


2



  Loss from discontinued operations, net of tax


(1)


(1)



  Non-controlling interests


(71)


(31)


(40)











Net earnings (loss) attributable to Old FNF common shareholders


$

103


$

144


$

(19)


$

(22)










EPS attributable to Old FNF common shareholders - basic


$

0.37


$

0.52


$

(0.07)


$

(0.08)

EPS attributable to Old FNF common shareholders - diluted


$

0.37


$

0.51


$

(0.07)


$

(0.07)










Old FNF weighted average shares - basic


275







Old FNF weighted average shares - diluted


282
















Net earnings (loss) attributable to Old FNF common shareholders


$

103


$

144


$

(19)


$

(22)










 Total non-GAAP, pre-tax adjustments


256


102


163


(9)

  Income taxes on non-GAAP adjustments


(61)


(24)


(40)


3

  Noncontrolling interest on non-GAAP adjustments


(95)


(38)


(57)


Total non-GAAP adjustments


100


40


66


(6)










Adjusted net earnings (loss) attributable to Old FNF common shareholders


$

203


$

184


$

47


$

(28)

Adjusted EPS attributable to Old FNF common shareholders - diluted


$

0.72


$

0.65


$

0.17


$

(0.10)









Direct orders opened (000's)


982


982




Direct orders closed (000's)


637


637




Fee per file


$

1,924


$

1,924




Actual title claims paid


$

146


$

146












Cash flows provided by operations:


$

(4)






Non-GAAP adjustments:








  Transaction costs related to acquisition of LPS


43






  Severance costs related to acquisition of LPS


42






  Synergy bonus payment


31






  Premium tax settlement


15






  THL Management Fee


2






  Other executive severance payment


9






  Other legal matters


8






Total non-GAAP adjustments


150














Adjusted cash flows from operations


146






Capital expenditures


42






Free cash flow


$

104






 

 

FNF GROUP
QUARTERLY OPERATING STATISTICS
(Unaudited)




Q2 2015


Q1 2015


Q4 2014


Q3 2014


Q2 2014


Q1 2014


Q4 2013


Q3 2013

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

Total open orders*


560



578



452



481



514



469



391



474


Total open orders per day*


8.8



9.5



7.1



7.5



8.0



7.7



6.2



7.4


Purchase % of open orders


57

%


47

%


52

%


60

%


60

%


57

%


55

%


56

%

Refinance % of open orders


43

%


53

%


48

%


40

%


40

%


43

%


45

%


44

%

Total closed orders*


408



345



334



348



342



295



307



410


Total closed orders per day*


6.4



5.7



5.2



5.4



5.3



4.8



4.9



6.4


Purchase % of closed orders


54

%


46

%


57

%


62

%


61

%


52

%


56

%


50

%

Refinance % of closed orders


46

%


54

%


43

%


38

%


39

%


48

%


44

%


50

%


















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

Total commercial revenue**


$

258



$

213



$

274



$

225



$

183



$

175






Total commercial open orders**


50.8



47.8














Total commercial closed orders**


32.4



29.6































National commercial revenue


$

150



$

119



$

166.3



$

136



$

115



$

104



$

146



$

120


National commercial open orders


21.2



20.4



18.1



21.4



22.2



19.6



19.3



19.9


National commercial closed orders


12.5



11.1



12.7



12.8



11.8



10.2



12.8



12.6



















Total Fee Per File

Fee per file


$

2,026



$

1,833



$

2,131



$

2,066



$

1,982



$

1,858



$

2,082



$

1,807


Residential and local commercial fee per file


$

1,711



$

1,538



$

1,699



$

1,739



$

1,750



$

1,559



$

1,676



$

1,562


Residential fee per file


$

1,514



$

1,330














Total commercial fee per file**


$

8,000



$

7,200














National commercial fee per file


$

12,000



$

10,700



$

13,100



$

10,600



$

9,800



$

10,200



$

11,400



$

9,500



















Total Staffing

Total field operations employees


10,900



10,400



9,900



10,200



10,200



10,300



9,900



10,600



















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

Total open orders*


458



456



354



385



403



349



331



391


Total open orders per day*


7.2



7.5



5.6



6.0



6.3



5.7



5.3



6.1


Purchase % of open orders


65

%


54

%


60

%


69

%


71

%


71

%


65

%


68

%

Refinance % of open orders


35

%


46

%


40

%


31

%


29

%


29

%


35

%


32

%

Total closed orders*


334



277


273


282


272


219


263


323

Total closed orders per day*


5.2


4.5


4.3


4.4


4.3


3.6


4.2


5.0

Purchase % of closed orders


61

%


52

%


63

%


70

%


71

%


67

%


66

%


64

%

Refinance % of closed orders


39

%


48

%


37

%


30

%


29

%


33

%


34

%


36

%

Fee per file


2,264



2,055



2,382



2,306



2,227



2,151



2,260



2,028


Total tile field operations employees


9,600



9,100



8,700



8,900



8,700



8,600



8,900



9,300



















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

Total Open Orders*


102



122



98



96



111



120



60



83


Total open orders per day*


1.6



2.0



1.6



1.5



1.7



2.0



1.0



1.3


Purchase % of open orders


22

%


17

%


23

%


23



20



7






Refinance % of open orders


78

%


83

%


77

%


77

%


80

%


93

%


100

%


100

%

Total closed orders


74



68



61



66



70



76



44



87


Total closed orders per day*


1.2



1.1



1.0



1.0



1.1



1.2



0.7



1.4


Purchase % of closed orders


21

%


22

%


26

%


24



18



6






Refinance % of closed orders


79

%


78

%


74

%


76

%


82

%


94

%


100

%


100

%

Fee per file


958



921



1,027



1,052



1,038



1,009



1,013



989


Total ServiceLink operating employees


1,300



1,300



1,200



1,300



1,500



1,700



970



1,300


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

** Total commercial order and fee per file tracking began in January 2015

 

 

 

FNF GROUP
SUMMARY BALANCE SHEET INFORMATION
(In millions)













FNF Group

June 30, 2015


FNF Group

December 31, 2014













(Unaudited)



(Unaudited)

Cash and investment portfolio








$

5,012




$

4,360


Goodwill









4,536




4,514


Title plant








393




393


Total assets









12,658




11,944


Notes payable







2,608




2,702


Reserve for title claim losses







1,612




1,621


Secured trust deposits







784




622


Redeemable non-controlling interests






344




715


Non-redeemable non-controlling interests






692




(58)


Total equity and redeemable non-controlling interests




5,820




5,272


Total equity attributable to common shareholders




4,784




4,615





FNF Group

June 30, 2015


 

FNFV

June 30, 2015

Consolidated

June 30, 2015


Consolidated

December 31, 2014


(Unaudited)


(Unaudited)


(Unaudited)




Cash and investment portfolio

$

5,012




$

893




$

5,905




$

5,369


Goodwill

4,536




204




4,740




4,721


Title plant

393







393




393


Total assets

12,658




1,739




14,397




13,868


Notes payable

2,608




221




2,829




2,827


Reserve for title claim losses

1,612







1,612




1,621


Secured trust deposits

784







784




622


Redeemable non-controlling interests

344







344




715


Non-redeemable non-controlling interests

692




128




820




79


Total equity and redeemable non-controlling interests

5,820




1,291




7,111




6,788


Total equity attributable to common shareholders

4,784




1,163




5,947




5,994


 

 

 

Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited) 



Three Months Ended



Six Months Ended


June 30, 2015



June 30, 2015


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

547



$

547



$




$

964



$

964



$


Agency title premiums

597



597






1,038



1,038




     Total title premiums

1,144



1,144






2,002



2,002




Escrow, title-related and other fees

857



827



30




1,665



1,522



143


     Total title and escrow and other

2,001



1,971



30




3,667



3,524



143















Restaurant revenue

371





371




735





735


Interest and investment income

32



32






63



62



1


Realized gains and losses

(9)



(8)



(1)




(9)



(8)



(1)


     Total revenue

2,395



1,995



400




4,456



3,578



878















Personnel costs

690



652



38




1,313



1,237



76


Other operating expenses

482



453



29




948



825



123


Cost of restaurant revenue

313





313




619





619


Agent commissions

451



451






784



784




Depreciation and amortization

104



87



17




204



170



34


Title claim loss expense

69



69






120



120




Interest expense

32



31



1




63



60



3


     Total expenses

2,141



1,743



398




4,051



3,196



855















Earnings from continuing operations before taxes

254



252



2




405



382



23


Income tax expense (benefit)

88



95



(7)




138



142



(4)


Earnings from continuing operations before equity investments

166



157



9




267



240



27


Earnings from equity investments

4





4




3



2



1


Net earnings

170



157



13




270



242



28


Non-controlling interests



(3)



3




14



(4)



18


Net earnings attributable to common shareholders

$

170



$

160



$

10




$

256



$

246



$

10















Cash flows provided by operations

328



330



(2)




361



356



5


 

 

Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)



Three Months Ended



Six Months Ended


June 30, 2014



June 30, 2014


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

433



$

433



$




$

784



$

784



$


Agency title premiums

518



518






922



922




     Total title premiums

951



951






1,706



1,706




Escrow, title-related and other fees

715



689



26




1,361



1,307



54


     Total title and escrow and other

1,666



1,640



26




3,067



3,013



54















Restaurant revenue

358





358




712





712


Interest and investment income

36



33



3




65



61



4


Realized gains and losses

(1)





(1)




1



2



(1)


     Total revenue

2,059



1,673



386




3,845



3,076



769















Personnel costs

623



587



36




1,272



1,200



72


Other operating expenses

407



386



21




825



785



40


Cost of restaurant revenue

303





303




603





603


Agent commissions

395



395






702



702




Depreciation and amortization

84



68



16




201



169



32


Title claim loss expense

57



57






110



110




Interest expense

33



31



2




64



61



3


     Total expenses

1,902



1,524



378




3,777



3,027



750















Earnings from continuing operations before taxes

157



149



8




68



49



19


Income tax expense (benefit)

54



55



(1)




14



18



(4)


Earnings from continuing operations before equity investments

103



94



9




54



31



23


(Loss) earnings from equity investments

(5)



2



(7)




(36)



2



(38)


Net loss from continuing operations

98



96



2




18



33



(15)


Earnings (loss) from discontinued operations, net of tax

5



(1)



6




12



(1)



13


Net loss

103



95



8




30



32



(2)


Non-controlling interests

(9)



(14)



5




(60)



(71)



11


Net earnings (loss) attributable to common shareholders

$

112



$

109



$

3




$

90



$

103



$

(13)















Cash flows provided by (used in) operations

229



190



39




(11)



(4)



(7)


 

 

SOURCE Fidelity National Financial, Inc.



RELATED LINKS

http://www.fnf.com