United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
October 24, 2018
Fidelity National Financial, Inc.
(Exact name of Registrant as Specified in its Charter)
001-32630
(Commission File Number)
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 16-1725106 (IRS Employer Identification Number) | |
601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)
(904) 854-8100
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
þ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. | Results of Operations and Financial Condition | |
On October 24, 2018, Fidelity National Financial, Inc. (the "Company", "FNF") issued an earnings release announcing its financial results for the Third Quarter of 2018. The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
A copy of the FNF earnings release is attached as Exhibit 99.1.
Item 9.01. | Financial Statements and Exhibits | |
(d) Exhibits
Exhibit | Description | ||||
99.1 | |||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Fidelity National Financial, Inc. | |||||
Date: | October 24, 2018 | By: | /s/ Anthony J. Park | ||
Name: | Anthony J. Park | ||||
Title: | Chief Financial Officer | ||||
FNF Reports Third Quarter 2018 Diluted EPS of $0.85 and Adjusted Diluted EPS of $0.78, Pre-Tax Title Margin of 16.2% and Adjusted Pre-Tax Title Margin of 15.6%
Jacksonville, Fla. - (October 24, 2018) - Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, today reported operating results for the three and nine-month periods ended September 30, 2018.
• | Total revenue of approximately $2.1 billion in the third quarter versus $2.0 billion in the third quarter of 2017 |
• | Third quarter net earnings of $236 million and adjusted net earnings of $218 million versus net earnings from continuing operations of $156 million and adjusted net earnings from continuing operations of $174 million for the third quarter of 2017 |
• | Third quarter diluted EPS of $0.85 and adjusted diluted EPS of $0.78 versus diluted EPS from continuing operations of $0.57 and adjusted diluted EPS from continuing operations of $0.63 in the third quarter of 2017 |
Title
• | Total revenue of approximately $1.9 billion versus approximately $1.9 billion in total revenue in the third quarter of 2017 |
• | Pre-tax earnings of $309 million and adjusted pre-tax earnings of $297 million versus pre-tax earnings of $262 million and adjusted pre-tax earnings of $287 million in the third quarter of 2017 |
• | Pre-tax title margin of 16.2% and adjusted pre-tax title margin of 15.6% versus pre-tax title margin of 14.0% and adjusted pre-tax title margin of 15.3% in the third quarter of 2017 |
• | Third quarter purchase orders opened increased 0.3% and purchase orders closed decreased 1%, respectively, versus the third quarter of 2017 |
• | Total commercial revenue of $271 million, an 8% increase over total commercial revenue in the third quarter of 2017, driven by a 16% increase in total commercial fee per file and a 7% decrease in closed orders; third quarter total commercial open orders increased 1% compared to the prior year |
• | Overall third quarter average fee per file of $2,623, an 11% increase versus the third quarter of 2017 |
Title Orders
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
July 2018 | 158,000 | 70% | 116,000 | 71% | ||||
August 2018 | 165,000 | 69% | 123,000 | 71% | ||||
September 2018 | 133,000 | 69% | 100,000 | 70% | ||||
Third Quarter 2018 | 456,000 | 69% | 339,000 | 71% | ||||
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
July 2017 | 159,000 | 66% | 118,000 | 66% | ||||
August 2017 | 181,000 | 61% | 131,000 | 65% | ||||
September 2017 | 161,000 | 59% | 118,000 | 63% | ||||
Third Quarter 2017 | 501,000 | 62% | 367,000 | 65% | ||||
* Includes an immaterial number of non-purchase and non-refinance orders
1
Open | Closed | Commercial | |||||||||||||
Commercial | Commercial | Revenue | Commercial | ||||||||||||
Orders | Orders | (In millions) | Fee Per File | ||||||||||||
Third Quarter 2018 - Total Commercial | 48,900 | 31,200 | $271 | $8,700 | |||||||||||
Third Quarter 2017 - Total Commercial | 48,300 | 33,400 | $250 | $7,500 | |||||||||||
"The third quarter was a solid performance for our title business, as we generated adjusted pre-tax title earnings of $297 million and a 15.6% adjusted pre-tax title margin, increases of $10 million and 30 basis points, respectively, over the third quarter of 2017," said Chairman William P. Foley, II. "The commercial and residential purchase markets continued to be the main drivers of our performance in the third quarter, as total commercial revenue grew by 8% versus the third quarter of 2017, continuing a very strong year for our commercial business. While residential purchase open orders per day increased by 0.3% and residential purchase closed orders per day declined by 1%, this was offset by an 11% increase in the fee per file that provided 3% growth in direct title premiums over the prior year. As we enter the seasonally slower fourth quarter, we will remain focused on our operating metrics and staffing levels in order to maximize our profitability.
"We continue to work through the regulatory process for the Stewart Information Services acquisition that we announced on March 19. We are currently engaged in the Second Request related to the FTC's HSR regulatory review of the transaction. Responses to nearly all the FTC's requests for information and documentation have been submitted. The Form A filings with the states of Texas and New York are being reviewed by those states. We still anticipate a first or second quarter of 2019 closing for the transaction and continue to believe the Stewart acquisition will create meaningful long-term value for our shareholders."
Conference Call
We will host a call with investors and analysts to discuss third quarter 2018 FNF results on Thursday, October 25, 2018, beginning at 1:00 p.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com. The telephone replay will be available from 3:00 p.m. Eastern time on October 25, 2018, through November 1, 2018, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 455027.
About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance 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. More information about FNF can be found at 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, FNF 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 adjusted pre-tax earnings, adjusted pre-tax earnings from continuing operations, adjusted pre-tax earnings as a percentage of adjusted revenue (adjusted pre-tax title margin), adjusted pre-tax earnings from continuing operations as a percentage of adjusted revenue (adjusted pre-tax title margin from continuing operations). adjusted net earnings, adjusted net earnings from continuing operations, adjusted EPS and adjusted EPS from continuing operations.
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,
2
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; 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; the risk that the necessary regulatory approvals of our acquisition of Stewart Information Services Corporation ("Stewart") may not be obtained or may be obtained subject to conditions that are not anticipated; risks that any of the closing conditions to the proposed Stewart merger may not be satisfied in a timely manner; the risk that the businesses will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the acquisition will not be realized; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission ("SEC").
FNF-E
SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com
3
FIDELITY NATIONAL FINANCIAL, INC.
THIRD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Direct title premiums | $ | 574 | $ | 574 | $ | — | ||||||
Agency title premiums | 722 | 722 | — | |||||||||
Escrow, title related and other fees | 691 | 566 | 125 | |||||||||
Total title and escrow | 1,987 | 1,862 | 125 | |||||||||
Interest and investment income | 48 | 46 | 2 | |||||||||
Realized gains and losses, net | 50 | 40 | 10 | |||||||||
Total revenue | 2,085 | 1,948 | 137 | |||||||||
Personnel costs | 654 | 624 | 30 | |||||||||
Agent commissions | 554 | 554 | — | |||||||||
Other operating expenses | 477 | 365 | 112 | |||||||||
Depreciation and amortization | 46 | 38 | 8 | |||||||||
Claim loss expense | 58 | 58 | — | |||||||||
Interest expense | 9 | — | 9 | |||||||||
Total expenses | 1,798 | 1,639 | 159 | |||||||||
Pre-tax earnings (loss) | $ | 287 | $ | 309 | $ | (22 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | (50 | ) | (40 | ) | (10 | ) | ||||||
Purchase price amortization | 27 | 22 | 5 | |||||||||
Transaction costs | 9 | — | 9 | |||||||||
Sales tax contingency | 6 | 6 | — | |||||||||
Total non-GAAP adjustments before taxes | $ | (8 | ) | $ | (12 | ) | $ | 4 | ||||
Adjusted pre-tax earnings (loss) | $ | 279 | $ | 297 | $ | (18 | ) | |||||
Adjusted pre-tax margin | 13.7 | % | 15.6 | % | — | |||||||
Pre-tax earnings (loss) | $ | 287 | $ | 309 | $ | (22 | ) | |||||
Income tax expense (benefit) | 51 | 68 | (17 | ) | ||||||||
Earnings from equity investments | 1 | 1 | — | |||||||||
Non-controlling interests | 1 | 3 | (2 | ) | ||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 236 | $ | 239 | $ | (3 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 0.86 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.85 | ||||||||||
FNF, Inc. weighted average shares - basic | 273 | |||||||||||
FNF, Inc. weighted average shares - diluted | 278 | |||||||||||
4
FIDELITY NATIONAL FINANCIAL, INC.
THIRD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 236 | $ | 239 | $ | (3 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | (8 | ) | $ | (12 | ) | $ | 4 | ||||
Income taxes on non-GAAP adjustments | 2 | 3 | (1 | ) | ||||||||
Noncontrolling interest on non-GAAP adjustments | (4 | ) | (2 | ) | (2 | ) | ||||||
Black Knight tax contingency | (8 | ) | — | (8 | ) | |||||||
Total non-GAAP adjustments | $ | (18 | ) | $ | (11 | ) | $ | (7 | ) | |||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 218 | $ | 228 | $ | (10 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.78 | ||||||||||
Direct orders opened (000's) | 456 | 456 | ||||||||||
Direct orders closed (000's) | 339 | 339 | ||||||||||
Fee per file | $ | 2,623 | $ | 2,623 | ||||||||
Actual title claims paid | $ | 55 | ||||||||||
Cash flows provided by operations | $ | 321 | ||||||||||
5
FIDELITY NATIONAL FINANCIAL, INC.
THIRD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
September 30, 2017 | ||||||||||||
Direct title premiums | $ | 558 | $ | 558 | $ | — | ||||||
Agency title premiums | 719 | 719 | — | |||||||||
Escrow, title related and other fees | 678 | 563 | 115 | |||||||||
Total title and escrow | 1,955 | 1,840 | 115 | |||||||||
Interest and investment income | 32 | 32 | — | |||||||||
Realized gains and losses, net | (1 | ) | — | (1 | ) | |||||||
Total revenue | 1,986 | 1,872 | 114 | |||||||||
Personnel costs | 627 | 605 | 22 | |||||||||
Agent commissions | 553 | 553 | — | |||||||||
Other operating expenses | 444 | 348 | 96 | |||||||||
Depreciation and amortization | 46 | 40 | 6 | |||||||||
Claim loss expense | 64 | 64 | — | |||||||||
Interest expense | 10 | — | 10 | |||||||||
Total expenses | 1,744 | 1,610 | 134 | |||||||||
Pre-tax earnings (loss) from continuing operations | $ | 242 | $ | 262 | $ | (20 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | 1 | — | 1 | |||||||||
Purchase price amortization | 29 | 24 | 5 | |||||||||
Spin-off costs | 1 | — | 1 | |||||||||
Other adjustments | 1 | 1 | — | |||||||||
Total non-GAAP adjustments before taxes | $ | 32 | $ | 25 | $ | 7 | ||||||
Adjusted pre-tax earnings (loss) from continuing operations | $ | 274 | $ | 287 | $ | (13 | ) | |||||
Adjusted pre-tax margin from continuing operations | 13.8 | % | 15.3 | % | — | |||||||
Pre-tax earnings (loss) from continuing operations | $ | 242 | $ | 262 | $ | (20 | ) | |||||
Income tax expense (benefit) | 88 | 98 | (10 | ) | ||||||||
Earnings from equity investments | 3 | 3 | — | |||||||||
Earnings from discontinued operations, net of tax | 18 | — | 18 | |||||||||
Non-controlling interests | 10 | 1 | 9 | |||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 165 | $ | 166 | $ | (1 | ) | |||||
Net (loss) earnings attributable to FNFV Group common shareholders | $ | (5 | ) | $ | — | $ | (5 | ) | ||||
Net earnings attributable to FNF Group common shareholders | $ | 170 | $ | 166 | $ | 4 | ||||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 156 | $ | 166 | $ | (10 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 0.63 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.62 | ||||||||||
EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 0.57 | ||||||||||
FNF, Inc. weighted average shares - basic | 272 | |||||||||||
FNF, Inc. weighted average shares - diluted | 276 | |||||||||||
6
FIDELITY NATIONAL FINANCIAL, INC.
THIRD QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
September 30, 2017 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 165 | $ | 166 | $ | (1 | ) | |||||
Earnings from discontinued operations, net of tax | 18 | — | 18 | |||||||||
Non-controlling interests of discontinued operations | 9 | — | 9 | |||||||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 156 | $ | 166 | $ | (10 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 32 | $ | 25 | $ | 7 | ||||||
Income taxes on non-GAAP adjustments | (11 | ) | (9 | ) | (2 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (3 | ) | (3 | ) | — | |||||||
Total non-GAAP adjustments | $ | 18 | $ | 13 | $ | 5 | ||||||
Adjusted net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 174 | $ | 179 | $ | (5 | ) | |||||
Adjusted EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 0.63 | ||||||||||
Direct orders opened (000's) | 501 | 501 | ||||||||||
Direct orders closed (000's) | 367 | 367 | ||||||||||
Fee per file | $ | 2,368 | $ | 2,368 | ||||||||
Actual title claims paid | $ | 60 | $ | 60 | ||||||||
Cash flows provided by operations | $ | 298 | ||||||||||
7
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Nine Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Direct title premiums | $ | 1,645 | $ | 1,645 | $ | — | ||||||
Agency title premiums | 2,018 | 2,018 | — | |||||||||
Escrow, title related and other fees | 2,072 | 1,684 | 388 | |||||||||
Total title and escrow | 5,735 | 5,347 | 388 | |||||||||
Interest and investment income | 131 | 128 | 3 | |||||||||
Realized gains and losses, net | 35 | 25 | 10 | |||||||||
Total revenue | 5,901 | 5,500 | 401 | |||||||||
Personnel costs | 1,926 | 1,838 | 88 | |||||||||
Agent commissions | 1,546 | 1,546 | — | |||||||||
Other operating expenses | 1,406 | 1,062 | 344 | |||||||||
Depreciation and amortization | 138 | 116 | 22 | |||||||||
Claim loss expense | 165 | 165 | — | |||||||||
Interest expense | 31 | — | 31 | |||||||||
Total expenses | 5,212 | 4,727 | 485 | |||||||||
Pre-tax earnings (loss) | $ | 689 | $ | 773 | $ | (84 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | (35 | ) | (25 | ) | (10 | ) | ||||||
Purchase price amortization | 82 | 66 | 16 | |||||||||
Transaction costs | 13 | — | 13 | |||||||||
Sales tax contingency | 6 | 6 | — | |||||||||
Other adjustments | 3 | 1 | 2 | |||||||||
Total non-GAAP adjustments before taxes | $ | 69 | $ | 48 | $ | 21 | ||||||
Adjusted pre-tax earnings (loss) | $ | 758 | $ | 821 | $ | (63 | ) | |||||
Adjusted pre-tax margin | 12.9 | % | 15.0 | % | — | |||||||
Pre-tax earnings (loss) | $ | 689 | $ | 773 | $ | (84 | ) | |||||
Income tax expense (benefit) | 104 | 137 | (33 | ) | ||||||||
Earnings from equity investments | 4 | 3 | 1 | |||||||||
Non-controlling interests | 5 | 7 | (2 | ) | ||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 584 | $ | 632 | $ | (48 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 2.14 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 2.09 | ||||||||||
FNF, Inc. weighted average shares - basic | 273 | |||||||||||
FNF, Inc. weighted average shares - diluted | 279 | |||||||||||
8
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Nine Months Ended | ||||||||||||
September 30, 2018 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 584 | $ | 632 | $ | (48 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 69 | $ | 48 | $ | 21 | ||||||
Income taxes on non-GAAP adjustments | (15 | ) | (10 | ) | (5 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (10 | ) | (8 | ) | (2 | ) | ||||||
Change in tax estimate | (45 | ) | (45 | ) | — | |||||||
Black Knight tax contingency | (8 | ) | — | (8 | ) | |||||||
Total non-GAAP adjustments | $ | (9 | ) | $ | (15 | ) | $ | 6 | ||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 575 | $ | 617 | $ | (42 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 2.06 | ||||||||||
Direct orders opened (000's) | 1,439 | 1,439 | ||||||||||
Direct orders closed (000's) | 1,014 | 1,014 | ||||||||||
Fee per file | $ | 2,521 | $ | 2,521 | ||||||||
Actual title claims paid | $ | 165 | ||||||||||
Cash flows provided by operations | $ | 671 | ||||||||||
9
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Nine months ended | Consolidated | Title | Corporate and Other | |||||||||
September 30, 2017 | ||||||||||||
Direct title premiums | $ | 1,598 | $ | 1,598 | $ | — | ||||||
Agency title premiums | 2,028 | 2,028 | — | |||||||||
Escrow, title related and other fees | 1,969 | 1,634 | 335 | |||||||||
Total title and escrow | 5,595 | 5,260 | 335 | |||||||||
Interest and investment income | 93 | 93 | — | |||||||||
Realized gains and losses, net | — | 6 | (6 | ) | ||||||||
Total revenue | 5,688 | 5,359 | 329 | |||||||||
Personnel costs | 1,822 | 1,755 | 67 | |||||||||
Agent commissions | 1,557 | 1,557 | — | |||||||||
Other operating expenses | 1,312 | 1,042 | 270 | |||||||||
Depreciation and amortization | 133 | 117 | 16 | |||||||||
Claim loss expense | 181 | 181 | — | |||||||||
Interest expense | 39 | — | 39 | |||||||||
Total expenses | 5,044 | 4,652 | 392 | |||||||||
Pre-tax earnings (loss) from continuing operations | $ | 644 | $ | 707 | $ | (63 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | — | (6 | ) | 6 | ||||||||
Purchase price amortization | 82 | 69 | 13 | |||||||||
Spin-off costs | 3 | — | 3 | |||||||||
Sales tax contingency | 3 | 3 | — | |||||||||
Other adjustments | 2 | 2 | — | |||||||||
Total non-GAAP adjustments before taxes | $ | 90 | $ | 68 | $ | 22 | ||||||
Adjusted pre-tax earnings (loss) from continuing operations | $ | 734 | $ | 775 | $ | (41 | ) | |||||
Adjusted pre-tax margin from continuing operations | 12.9 | % | 14.5 | % | — | |||||||
Pre-tax earnings (loss) from continuing operations | $ | 644 | $ | 707 | $ | (63 | ) | |||||
Income tax expense (benefit) | 258 | 290 | (32 | ) | ||||||||
Earnings from equity investments | 7 | 7 | — | |||||||||
Earnings from discontinued operations, net of tax | 165 | — | 165 | |||||||||
Non-controlling interests | 25 | — | 25 | |||||||||
Net earnings attributable to FNF, Inc. common shareholders | $ | 533 | $ | 424 | $ | 109 | ||||||
Net earnings attributable to FNFV Group common shareholders | $ | 117 | $ | — | $ | 117 | ||||||
Net earnings (loss) attributable to FNF Group common shareholders | $ | 416 | $ | 424 | $ | (8 | ) | |||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 393 | $ | 424 | $ | (31 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 1.54 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 1.50 | ||||||||||
EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 1.42 | ||||||||||
FNF, Inc. weighted average shares - basic | 271 | |||||||||||
FNF, Inc. weighted average shares - diluted | 277 | |||||||||||
10
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Nine months ended | ||||||||||||
September 30, 2017 | ||||||||||||
Net earnings attributable to FNF, Inc. common shareholders | $ | 533 | $ | 424 | $ | 109 | ||||||
Earnings from discontinued operations, net of tax | 165 | — | 165 | |||||||||
Non-controlling interests of discontinued operations | 25 | — | 25 | |||||||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 393 | $ | 424 | $ | (31 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 90 | $ | 68 | $ | 22 | ||||||
Income taxes on non-GAAP adjustments | (30 | ) | (22 | ) | (8 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (10 | ) | (10 | ) | — | |||||||
Nondeductible income taxes on litigation and regulatory settlements | 21 | 21 | $ | — | ||||||||
Total non-GAAP adjustments | $ | 71 | $ | 57 | $ | 14 | ||||||
Adjusted net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 464 | $ | 481 | $ | (17 | ) | |||||
Adjusted EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 1.68 | ||||||||||
Direct orders opened (000's) | 1,497 | 1,497 | ||||||||||
Direct orders closed (000's) | 1,071 | 1,071 | ||||||||||
Fee per file | $ | 2,320 | $ | 2,320 | ||||||||
Actual title claims paid | $ | 168 | $ | 168 | ||||||||
Cash flows provided by operations | $ | 688 | ||||||||||
11
FIDELITY NATIONAL FINANCIAL, INC.
QUARTERLY OPERATING STATISTICS
(Unaudited)
Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | Q4 2016 | |||||||||||||||||||||||||
Quarterly Open Orders ('000's except % data) | ||||||||||||||||||||||||||||||||
Total open orders* | 456 | 505 | 478 | 445 | 501 | 524 | 472 | 474 | ||||||||||||||||||||||||
Total open orders per day* | 7.2 | 7.9 | 7.7 | 7.2 | 8.0 | 8.2 | 7.6 | 7.6 | ||||||||||||||||||||||||
Purchase % of open orders | 69 | % | 71 | % | 66 | % | 60 | % | 62 | % | 66 | % | 64 | % | 53 | % | ||||||||||||||||
Refinance % of open orders | 31 | % | 29 | % | 34 | % | 40 | % | 38 | % | 34 | % | 36 | % | 47 | % | ||||||||||||||||
Total closed orders* | 339 | 362 | 313 | 357 | 367 | 370 | 334 | 419 | ||||||||||||||||||||||||
Total closed orders per day* | 5.4 | 5.7 | 5.0 | 5.8 | 5.8 | 5.8 | 5.4 | 6.8 | ||||||||||||||||||||||||
Purchase % of closed orders | 71 | % | 71 | % | 62 | % | 61 | % | 65 | % | 67 | % | 58 | % | 51 | % | ||||||||||||||||
Refinance % of closed orders | 29 | % | 29 | % | 38 | % | 39 | % | 35 | % | 33 | % | 42 | % | 49 | % | ||||||||||||||||
Commercial (millions, except orders in '000's) | ||||||||||||||||||||||||||||||||
Total commercial revenue | $ | 271 | $ | 276 | $ | 230 | $ | 288 | $ | 250 | $ | 261 | $ | 224 | $ | 285 | ||||||||||||||||
Total commercial open orders | 48.9 | 54.2 | 52.8 | 46.3 | 48.3 | 50.8 | 49.4 | 45.9 | ||||||||||||||||||||||||
Total commercial closed orders | 31.2 | 35.1 | 31.5 | 33.2 | 33.4 | 33.6 | 30.0 | 34.7 | ||||||||||||||||||||||||
National commercial revenue | $ | 150 | $ | 147 | $ | 122 | $ | 165 | $ | 138 | $ | 148 | $ | 127 | $ | 167 | ||||||||||||||||
National commercial open orders | 19.8 | 23.0 | 21.1 | 19.0 | 19.9 | 22.0 | 21.1 | 17.9 | ||||||||||||||||||||||||
National commercial closed orders | 12.0 | 12.9 | 11.2 | 12.1 | 13.1 | 13.3 | 11.2 | 12.8 | ||||||||||||||||||||||||
Total Fee Per File | ||||||||||||||||||||||||||||||||
Fee per file | $ | 2,623 | $ | 2,579 | $ | 2,344 | $ | 2,425 | $ | 2,368 | $ | 2,428 | $ | 2,148 | $ | 2,091 | ||||||||||||||||
Residential and local commercial fee per file | $ | 2,261 | $ | 2,253 | $ | 2,027 | $ | 2,032 | $ | 2,066 | $ | 2,104 | $ | 1,829 | $ | 1,746 | ||||||||||||||||
Residential fee per file | $ | 2,008 | $ | 2,012 | $ | 1,789 | $ | 1,784 | $ | 1,856 | $ | 1,895 | $ | 1,623 | $ | 1,538 | ||||||||||||||||
Total commercial fee per file | $ | 8,700 | $ | 7,900 | $ | 7,300 | $ | 8,700 | $ | 7,500 | $ | 7,800 | $ | 7,500 | $ | 8,200 | ||||||||||||||||
National commercial fee per file | $ | 12,500 | $ | 11,400 | $ | 10,900 | $ | 13,600 | $ | 10,500 | $ | 11,100 | $ | 11,300 | $ | 13,000 | ||||||||||||||||
Total Staffing | ||||||||||||||||||||||||||||||||
Total field operations employees | 10,800 | 11,000 | 10,900 | 11,200 | 11,700 | 11,300 | 11,000 | 11,100 | ||||||||||||||||||||||||
* Includes an immaterial number of non-purchase and non-refinance orders
FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In millions)
FNF, Inc. September 30, 2018 | FNF, Inc. December 31, 2017 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
Cash and investment portfolio | $ | 4,845 | $ | 4,481 | ||||||
Goodwill | 2,719 | 2,746 | ||||||||
Title plant | 405 | 398 | ||||||||
Total assets | 9,371 | 9,151 | ||||||||
Notes payable | 836 | 759 | ||||||||
Reserve for title claim losses | 1,491 | 1,490 | ||||||||
Secured trust deposits | 835 | 830 | ||||||||
Redeemable non-controlling interests | 344 | 344 | ||||||||
Non-redeemable non-controlling interests | (1 | ) | 20 | |||||||
Total equity and non-controlling interests | 5,032 | 4,811 | ||||||||
Total equity attributable to common shareholders | 4,689 | 4,447 | ||||||||
###
12