February 1, 2017

FNF Group Reports Fourth Quarter 2016 Diluted EPS of $0.83 and Adjusted Diluted EPS of $0.71, Pre-Tax Title Margin of 19.5% and Adjusted Pre-Tax Title Margin of 15.8%; $97 Million Pre-Tax Credit Recorded to Claims Loss Expense and Claims Provision Reduced to 5%

JACKSONVILLE, Fla., Feb. 1, 2017 /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 twelve-month periods ended December 31, 2016.

  • Total revenue of approximately $2.2 billion in the fourth quarter versus $1.9 billion in the fourth quarter of 2015
  • Fourth quarter net earnings of $231 million and adjusted net earnings of $198 million versus net earnings of $144 million and adjusted net earnings of $155 million for the fourth quarter of 2015
  • Fourth quarter diluted EPS of $0.83 and adjusted diluted EPS of $0.71 versus diluted EPS of $0.51 and adjusted diluted EPS of $0.55 in the fourth quarter of 2015
  • A $97 million pre-tax credit was recorded to claim loss expense in the fourth quarter, reducing a redundancy in the reserve for title claim losses balance and making the reserve consistent with the actuarial central estimate
  • Fourth quarter net cash flow provided by operations of $372 million and free cash flow provided of $330 million versus net cash flow provided by operations of $257 million and free cash flow provided of $205 million in the fourth quarter of 2015
  • Repurchased 550,000 shares of FNF common stock for approximately $18.5 million in the fourth quarter

 

Title

  • Approximately $1.8 billion in total revenue, a 12% increase over the approximately $1.6 billion in total revenue in the fourth quarter of 2015
  • Pre-tax earnings of $360 million and adjusted pre-tax earnings of $292 million versus pre-tax earnings of $216 million and adjusted pre-tax earnings of $225 million in the fourth quarter of 2015
  • Pre-tax title margin of 19.5% and adjusted pre-tax title margin of 15.8% versus pre-tax title margin of 13.2% and adjusted pre-tax title margin of 13.8% in the fourth quarter of 2015
  • Claims loss provision was reduced to 5% for the fourth quarter and future quarters, driven by significantly lower title loss payments related to policy years since 2009
  • ServiceLink generated $198 million in revenue, adjusted pre-tax earnings of $25 million and an adjusted pre-tax margin of 12.6% for the fourth quarter
  • Open orders per day of 7,645 for the fourth quarter versus 7,000 open orders per day for the fourth quarter of 2015
  • Closed orders per day of 6,758 for the fourth quarter versus 5,413 closed orders per day for the fourth quarter of 2015
  • Fourth quarter purchase orders opened and closed increased by 5% and 10%, respectively, versus the fourth quarter of 2015; for FNTG only (excluding ServiceLink), purchase orders opened and closed increased by 5% and 11%, respectively versus the fourth quarter of 2015
  • Total commercial revenue of $285 million, a 6% decrease from total commercial revenue in the fourth quarter of  2015, driven by a 4% decrease in closed orders and a 1% decrease in total commercial fee per file; fourth quarter total commercial open orders decreased 1% compared to the prior year; fourth quarter national commercial title revenue of $167 million, a 9% decrease from the fourth quarter of 2015, driven by a 4% decline in the national commercial fee per file and a 4% decrease in closed orders; fourth quarter national commercial open orders declined by 1%
  • Overall fourth quarter average fee per file of $2,091, an 8% decrease versus the fourth quarter of 2015
  • Title claims paid of $76 million, a decrease of $8 million, or 10%, from the fourth quarter of 2015

 

Title Orders




Direct Orders Opened *



Direct Orders Closed *

Month


 / (% Purchase)


 / (% Purchase)

October 2016



181,000

51%



140,000

50%

November 2016



159,000

53%



138,000

49%

December 2016



134,000

56%



141,000

52%








Fourth Quarter 2016



474,000

53%



419,000

51%








 




Direct Orders Opened *



Direct Orders Closed *

Month


 / (% Purchase)



 / (% Purchase)

October 2015



167,000

55%



120,000

58%

November 2015



140,000

56%



102,000

57%

December 2015



134,000

54%



119,000

59%








Fourth Quarter 2015



441,000

55%



341,000

58%










* 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

Fourth Quarter 2016 - Total Commercial



45,900




34,700




$285




$8,200

Fourth Quarter 2015 - Total Commercial



46,300




36,300




$303




$8,300

















Fourth Quarter 2016 - National Commercial



17,900




12,800




$167




$13,000

Fourth Quarter 2015 - National Commercial



18,100




13,400




$183




$13,600

 

BKFS

  • Revenue of $261 million, led by Servicing Technology revenue of approximately $177 million
  • Pre-tax earnings of $41 million, a $4 million, or 11%, increase from the fourth quarter of 2015
  • Adjusted EBITDA of $112 million, a $6 million, or 6%, increase over the fourth quarter of 2015 and an adjusted EBITDA margin of 44.4%, a 50 basis point decrease from the fourth quarter of 2015

 

"This was  a great finish to another strong year for our title insurance business, as we generated fourth quarter adjusted pre-tax title earnings of $292 million and a 15.8% adjusted pre-tax title margin," said Chairman William P. Foley, II.  "For the full-year 2016, we produced more than $1 billion in adjusted pre-tax title earnings and a 14.7% adjusted pre-tax title margin.  We continue to benefit from a solid residential purchase market, as open and closed purchase orders grew by 5% and 10%, respectively, in the fourth quarter.  The residential refinance market also finished the year strong, with 13% growth in open refinance orders and 47% growth in closed refinance orders. Total commercial revenue of $285 million was our second highest quarterly figure ever and a 6% decline from the record fourth quarter of 2015.  Overall, we are proud of our performance in 2016 and we enter  2017 optimistic that an improving economy will continue to benefit the real estate market and provide the opportunity for another successful year for our title insurance business.

"Given the recent favorable trends in claims payments, lower loss ratios in policy years since 2009 and the significantly reduced adverse development in pre-2009 policy years, we recorded a $97 million pre-tax credit to claim loss expense in the fourth quarter, reducing a redundancy in the reserve for title claim losses balance and making the reserve consistent with the actuarial central estimate.  We also reduced the claims loss provision to 5% for the fourth quarter and future quarters, driven by significantly lower title loss payments related to policy years since 2009.

"Black Knight continues to perform to our expectations, generating revenue of $261 million and adjusted EBITDA of $112 million, for a 44.4% adjusted EBITDA margin.  FNF's Black Knight ownership stake is currently worth more than $3 billion, or nearly $11 per FNF share." 

Conference Call

We will host a call with investors and analysts to discuss fourth quarter 2016 FNF Group results on Thursday, February 2, 2017, beginning at 11:30 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 1:30 p.m. Eastern time on February 2, 2017, through February 9, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 414865.

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, Inc. and ServiceLink Holdings, LLC.  FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc., Digital Insurance, Inc. and Del Frisco's Restaurant Group, 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: our ability to successfully achieve the conditions to and consummate the plans to distribute shares of Black Knight Financial Services and redeem and exchange the FNFV tracking stock with the result being an independent, publicly-traded FNFV common stock; 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-E


 

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




Total FNF

 Group


Title


BKFS


FNF Group

Corporate and

Other

Three Months Ended





December 31, 2016





Direct title premiums


$

579



$

579



$



$


Agency title premiums


692



692






Escrow, title related and other fees (1)


866



541



261



64


Total title and escrow


2,137



1,812



261



64











Interest and investment income


33



33






Realized gains and losses, net


(2)



(1)





(1)


Total revenue


2,168



1,844



261



63











Personnel costs


697



581



102



14


Agent commissions


525



525






Other operating expenses


478



372



48



58


Depreciation and amortization


99



39



54



6


Claim loss credit


(33)



(33)






Interest expense


32





16



16


Total expenses


1,798



1,484



220



94











Pre-tax earnings (loss) from continuing operations


$

370



$

360



$

41



$

(31)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


2



1





1


  Deferred revenue add back


1





1




  Purchase price amortization


53



23



25



5


  Other legal accruals


5



5






  Claims reserve adjustment


(97)



(97)






 Total non-GAAP adjustments before taxes


$

(36)



$

(68)



$

26



$

6











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


$

334



$

292



$

67



$

(25)


  Adjusted pre-tax margin from continuing operations


15.4

%


15.8

%


25.6

%












Purchase price amortization


(53)



(23)



(25)



(5)


Depreciation and amortization


99



39



54



6


Interest expense


32





16



16











  Adjusted EBITDA


$

412



$

308



$

112



$

(8)


  Adjusted EBITDA margin


19.0

%


16.7

%


44.4

%












ServiceLink non-GAAP reconciliations:









ServiceLink pre-tax loss


$

(12)








Intercompany interest


7








Depreciation and amortization


20








ServiceLink EBITDA


15








Management fee / other expenses


13








ServiceLink Adjusted EBITDA


$

28

















ServiceLink pre-tax loss


$

(12)








Intercompany interest

 


7








Purchase price amortization


17








Management fee / other expenses


13








ServiceLink adjusted pre-tax earnings


$

25









1.  BKFS also reported adjusted revenue of $263 million, which includes $2 million of deferred revenue

 

 

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




Total FNF

 Group


Title


BKFS


FNF Group

Corporate and

Other

Three Months Ended





December 31, 2016





Pre-tax earnings (loss) from continuing operations


$

370



$

360



$

41



$

(31)


  Income tax expense (benefit)


133



135



12



(14)


  Earnings from equity investments


5



4





1


  Non-controlling interests


11



(1)



12













Net earnings (loss) attributable to FNF Group common shareholders


$

231



$

230



$

17



$

(16)











EPS attributable to FNF Group common shareholders - basic


$

0.85



$

0.85



$

0.06



$

(0.06)


EPS attributable to FNF Group common shareholders - diluted


$

0.83



$

0.83



$

0.06



$

(0.06)











FNF Group weighted average shares - basic


271








FNF Group weighted average shares - diluted


278

















Net earnings (loss) attributable to FNF Group common shareholders


$

231



$

230



$

17



$

(16)











 Total non-GAAP, pre-tax adjustments


$

(36)



$

(68)



$

26



$

6


  Income taxes on non-GAAP adjustments


16



28



(10)



(2)


  Noncontrolling interest on non-GAAP adjustments


(13)



(5)



(8)




Total non-GAAP adjustments


$

(33)



$

(45)



$

8



$

4











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


$

198



$

185



$

25



$

(12)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.71



$

0.67



$

0.09



$

(0.05)











Direct orders opened (000's)


474



474






Direct orders closed (000's)


419



419






Fee per file


$

2,091



$

2,091






Actual title claims paid


$

76



$

76















Cash flows provided by operations:


$

372

















Capital expenditures


42








Free cash flow


$

330








 

 

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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

Other

Three Months Ended





December 31, 2015





Direct title premiums


$

521



$

521



$



$


Agency title premiums


592



592






Escrow, title related and other fees (1)


776



483



238



55


Total title and escrow


1,889



1,596



238



55











Interest and investment income


30



31





(1)


Realized gains and losses, net


14



14






Total revenue


1,933



1,641



238



54











Personnel costs


636



531



93



12


Agent commissions


452



452






Other operating expenses


437



345



42



50


Depreciation and amortization


90



36



51



3


Claim loss expense


61



61






Interest expense


31





15



16


Total expenses


1,707



1,425



201



81











Pre-tax earnings (loss) from continuing operations


$

226



$

216



$

37



$

(27)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


(14)



(14)






  Deferred revenue add back and management fee


3





3




  Purchase price amortization


46



23



23




 Total non-GAAP adjustments before taxes


$

35



$

9



$

26



$











  Adjusted pre-tax earnings (loss) from continuing operations


$

261



$

225



$

63



$

(27)


  Adjusted pre-tax margin from continuing operations


13.6

%


13.8

%


26.1

%












Purchase price amortization


(46)



(23)



(23)




Depreciation and amortization


90



36



51



3


Interest expense


31





15



16











  Adjusted EBITDA


$

336



$

238



$

106



$

(8)


  Adjusted EBITDA margin


17.5

%


14.6

%


44.9

%





1.  BKFS also reported adjusted revenue of $240 million, which includes $2 million of deferred revenue

 

 


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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

Other

Three Months Ended





December 31, 2015





Pre-tax earnings (loss) from continuing operations


$

226



$

216



$

37



$

(27)











  Income tax expense (benefit)


73



79



18



(24)


  Earnings from equity investments


2



2






  Non-controlling interests


11



1



11



(1)











Net earnings (loss) attributable to FNF Group common shareholders


$

144



$

138



$

8



$

(2)











EPS attributable to FNF Group common shareholders - basic


$

0.52



$

0.50



$

0.03



$

(0.01)


EPS attributable to FNF Group common shareholders - diluted


$

0.51



$

0.49



$

0.03



$

(0.01)











FNF Group weighted average shares - basic


275








FNF Group weighted average shares - diluted


283

















Net earnings (loss) attributable to FNF Group common shareholders


$

144



$

138



$

8



$

(2)











 Total non-GAAP, pre-tax adjustments


$

35



$

9



$

26



$


  Income taxes on non-GAAP adjustments


(7)



(2)



(5)




  Noncontrolling interest on non-GAAP adjustments


(17)



(4)



(13)




Total non-GAAP adjustments


$

11



$

3



$

8



$











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


$

155



$

141



$

16



$

(2)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.55



$

0.50



$

0.06



$

(0.01)











Direct orders opened (000's)


441



441






Direct orders closed (000's)


341



341






Fee per file


$

2,272



$

2,272






Actual title claims paid


$

84



$

84















Cash flows provided by operations:


$

257

















Capital expenditures


52








Free cash flow


$

205








 

 

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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

Other

Twelve Months Ended





December 31, 2016





Direct title premiums


$

2,097



$

2,097



$



$


Agency title premiums


2,626



2,626






Escrow, title related and other fees (1)


3,378



2,128



1,026



224


Total title and escrow


8,101



6,851



1,026



224











Interest and investment income


126



127





(1)


Realized gains and losses, net


(8)







(8)


Total revenue


8,219



6,978



1,026



215











Personnel costs


2,668



2,214



396



58


Agent commissions


1,998



1,998






Other operating expenses


1,837



1,436



197



204


Depreciation and amortization


369



148



208



13


Claim loss expense


157



157






Interest expense


126





64



62


Total expenses


7,155



5,953



865



337











Pre-tax earnings (loss) from continuing operations


$

1,064



$

1,025



$

161



$

(122)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


8







8


  Deferred revenue add back and management fee


8



1



7




  Purchase price amortization


187



89



90



8


  M&A costs


2





2




  Other legal accruals


17



11



6




  Claims reserve adjustment


(97)



(97)






 Total non-GAAP adjustments before taxes


$

125



$

4



$

105



$

16











  Adjusted pre-tax earnings (loss) from continuing operations


$

1,189



$

1,029



$

266



$

(106)


  Adjusted pre-tax margin from continuing operations


14.4

%


14.7

%


25.8

%












Purchase price amortization


(187)



(89)



(90)



(8)


Depreciation and amortization


369



148



208



13


Interest expense


126





64



62











  Adjusted EBITDA


$

1,497



$

1,088



$

448



$

(39)


  Adjusted EBITDA margin


18.2

%


15.6

%


44.8

%




1.  BKFS also reported adjusted revenue of $1,033 million, which includes $7 million of deferred revenue

 

 

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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

Other

Twelve Months Ended





December 31, 2016





Pre-tax earnings (loss) from continuing operations


$

1,064



$

1,025



$

161



$

(122)











  Income tax expense (benefit)


383



386



52



(55)


  Earnings from equity investments


15



13





2


  Non-controlling interests


42



(5)



47













Net earnings (loss) attributable to FNF Group common shareholders


$

654



$

657



$

62



$

(65)











EPS attributable to FNF Group common shareholders - basic


$

2.40



$

2.41



$

0.23



$

(0.24)


EPS attributable to FNF Group common shareholders - diluted


$

2.34



$

2.36



$

0.22



$

(0.24)











FNF Group weighted average shares - basic


272








FNF Group weighted average shares - diluted


280

















Net earnings (loss) attributable to FNF Group common shareholders


$

654



$

657



$

62



$

(65)











 Total non-GAAP, pre-tax adjustments


$

125



$

4



$

105



$

16


  Income taxes on non-GAAP adjustments


(41)



5



(40)



(6)


  Noncontrolling interest on non-GAAP adjustments


(47)



(17)



(30)




Total non-GAAP adjustments


$

37



$

(8)



$

35



$

10











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


$

691



$

649



$

97



$

(55)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

2.47



$

2.32



$

0.35



$

(0.20)











Direct orders opened (000's)


2,184



2,184






Direct orders closed (000's)


1,575



1,575






Fee per file


$

2,065



$

2,065






Actual title claims paid


$

245



$

245















Cash flows provided by operations:


$

1,081








Non-GAAP adjustments:









  M&A costs


2








  THL management fee


1








Total non-GAAP adjustments


3

















Adjusted cash flows from operations


1,084








Capital expenditures


227








Free cash flow


$

857








 

 

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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

 Other

Twelve Months Ended





December 31, 2015





Direct title premiums


$

2,009



$

2,009



$



$


Agency title premiums


2,277



2,277






Escrow, title related and other fees  (1)


3,121



2,005



931



185


Total title and escrow


7,407



6,291



931



185











Interest and investment income


121



123





(2)


Realized gains and losses, net


6



14



(5)



(3)


Total revenue


7,534



6,428



926



180











Personnel costs


2,514



2,090



382



42


Agent commissions


1,731



1,731






Other operating expenses


1,714



1,381



161



172


Depreciation and amortization


345



144



194



7


Claim loss expense


246



246






Interest expense


122





50



72


Total expenses


6,672



5,592



787



293











Pre-tax earnings (loss) from continuing operations


$

862



$

836



$

139



$

(113)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


(6)



(14)



5



3


  Deferred revenue add back and management fee


13



2



11




  Purchase price amortization


183



92



90



1


  IPO costs & profits interest acceleration


10





10




 Total non-GAAP adjustments before taxes


$

200



$

80



$

116



$

4











  Adjusted pre-tax earnings (loss) from continuing operations


$

1,062



$

916



$

255



$

(109)


  Adjusted pre-tax margin from continuing operations


14.1

%


14.3

%


27.1

%












Purchase price amortization


(183)



(92)



(90)



(1)


Depreciation and amortization


345



144



194



7


Interest expense


122





50



72











  Adjusted EBITDA


$

1,346



$

968



$

409



$

(31)


  Adjusted EBITDA margin


17.9

%


15.1

%


44.0

%




1. BKFS also reported adjusted revenue of $940 million, which includes $9 million of deferred revenue

 

 


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




Total FNF

Group


Title


BKFS


FNF Group

Corporate and

Other

Twelve Months Ended





December 31, 2015





Pre-tax earnings (loss) from continuing operations


$

862



$

836



$

139



$

(113)











  Income tax expense (benefit)


310



305



35



(30)


  Earnings from equity investments


6



6






  Non-controlling interests


18



(10)



28













Net earnings (loss) attributable to FNF Group common shareholders


$

540



$

547



$

76



$

(83)











EPS attributable to FNF Group common shareholders - basic


$

1.95



$

1.97



$

0.27



$

(0.29)


EPS attributable to FNF Group common shareholders - diluted


$

1.89



$

1.91



$

0.27



$

(0.29)











FNF Group weighted average shares - basic


277








FNF Group weighted average shares - diluted


286

















Net earnings (loss) attributable to FNF Group common shareholders


$

540



$

547



$

76



$

(83)











 Total non-GAAP, pre-tax adjustments


$

200



$

80



$

116



$

4


  Income taxes on non-GAAP adjustments


(50)



(22)



(26)



(2)


  Noncontrolling interest on non-GAAP adjustments


(71)



(23)



(48)




Total non-GAAP adjustments


$

79



$

35



$

42



$

2











Adjusted net earnings (loss) attributable to FNF common shareholders


$

619



$

582



$

118



$

(81)


Adjusted EPS attributable to FNF common shareholders - diluted


$

2.16



$

2.03



$

0.41



$

(0.28)











Direct orders opened (000's)


2,092



2,092






Direct orders closed (000's)


1,472



1,472






Fee per file


$

2,065



$

2,065






Actual title claims paid


$

285



$

285















Cash flows provided by operations:


$

922








Non-GAAP adjustments:









  THL management fee


3








  IPO cost


4








Total non-GAAP adjustments


7

















Adjusted cash flows from operations


929








Capital expenditures


179








Free cash flow


$

750








 

 

FNF GROUP
QUARTERLY OPERATING STATISTICS
(Unaudited)




Q4 2016


Q3 2016


Q2 2016


Q1 2016


Q4 2015


Q3 2015


Q2 2015


Q1 2015

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

Total open orders*


474



616



577



517



441



514



560



578


Total open orders per day*


7.6



9.6



9.0



8.3



7.0



8.0



8.8



9.5


Purchase % of open orders


53

%


50

%


57

%


55

%


55

%


58

%


57

%


47

%

Refinance % of open orders


47

%


50

%


43

%


45

%


45

%


42

%


43

%


53

%

Total closed orders*


419



433



401



322



341



378



408



345


Total closed orders per day*


6.8



6.8



6.3



5.2



5.4



5.9



6.4



5.7


Purchase % of closed orders


51

%


54

%


58

%


55

%


58

%


60

%


54

%


46

%

Refinance % of closed orders


49

%


46

%


42

%


45

%


42

%


40

%


46

%


54

%


















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

Total commercial revenue


$

285



$

233



$

244



$

211



$

303



$

258



$

258



$

208


Total commercial open orders


45.9



50.4



49.9



48.5



46.3



50.3



50.8



47.8


Total commercial closed orders


34.7



31.9



33.6



30.7



36.3



33.0



32.4



29.6



















National commercial revenue


$

167



$

130



$

144



$

121



$

183



$

146



$

150



$

119


National commercial open orders


17.9



20.4



20.3



19.3



18.1



21.0



21.2



20.4


National commercial closed orders


12.8



11.7



11.6



10.6



13.4



12.2



12.5



11.1



















Total Fee Per File

Fee per file


$

2,091



$

2,015



$

2,116



$

2,032



$

2,272



$

2,133



$

2,026



$

1,833


Residential and local commercial fee per file


$

1,746



$

1,762



$

1,809



$

1,713



$

1,806



$

1,805



$

1,711



$

1,538


Residential fee per file


$

1,538



$

1,594



$

1,645



$

1,522



$

1,548



$

1,589



$

1,514



$

1,346


Total commercial fee per file


$

8,200



$

7,300



$

7,300



$

6,900



$

8,300



$

7,800



$

8,000



$

7,000


National commercial fee per file


$

13,000



$

11,100



$

12,400



$

11,400



$

13,600



$

12,000



$

12,000



$

10,700



















Total Staffing

Total field operations employees


11,100



11,400



10,900



10,900



10,700



11,000



10,900



10,400



















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

Total open orders*


395



518



484



429



360



422



458



456


Total open orders per day*


6.4



8.1



7.5



6.9



5.7



6.6



7.2



7.5


Purchase % of open orders


59

%


55

%


63

%


61

%


62

%


65

%


65

%


54

%

Refinance % of open orders


41

%


45

%


37

%


39

%


38

%


35

%


35

%


46

%

Total closed orders*


352



369



338



265



285



314



334



277


Total closed orders per day*


5.7



5.8



5.3



4.3



4.5



4.9



5.2



4.5


Purchase % of closed orders


55

%


58

%


63

%


60

%


63

%


66

%


61

%


52

%

Refinance % of closed orders


45

%


42

%


37

%


40

%


37

%


34

%


39

%


48

%

Fee per file


$

2,313



$

2,205



$

2,337



$

2,261



$

2,521



$

2,364



$

2,264



$

2,055


Total title field operations employees


10,000



10,200



9,600



9,700



9,500



9,700



9,600



9,100



















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

Total open orders*


79



98



93



87



81



92



102



122


Total open orders per day*


1.2



1.5



1.5



1.4



1.3



1.4



1.6



2.0


Purchase % of open orders


21

%


17

%


22

%


24

%


22

%


23

%


22

%


17

%

Refinance % of open orders


79

%


83

%


78

%


76

%


78

%


77

%


78

%


83

%

Total closed orders*


67



64



63



57



56



64



74



68


Total closed orders per day*


1.1



1.0



1.0



0.9



0.9



1.0



1.2



1.1


Purchase % of closed orders


24

%


27

%


27

%


28

%


31

%


26

%


21

%


22

%

Refinance % of closed orders


76

%


73

%


73

%


72

%


69

%


74

%


79

%


78

%

Fee per file


$

932



$

916



$

940



$

972



$

1,003



$

987



$

958



$

921


Total ServiceLink operating employees


1,100



1,200



1,300



1,200



1,200



1,300



1,300



1,300














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












 

 

FNF GROUP
SUMMARY BALANCE SHEET INFORMATION
(In millions)




FNF Group

December 31, 2016


FNF Group

December 31, 2015



(Unaudited)



(Unaudited)

Cash and investment portfolio



$

4,965




$

4,898


Goodwill



4,859




4,568


Title plant



395




395


Total assets



13,063




12,502


Notes payable



2,513




2,593


Reserve for title claim losses



1,487




1,583


Secured trust deposits



860




701


Redeemable non-controlling interests



344




344


Non-redeemable non-controlling interests



786




720


Total equity and redeemable non-controlling interests



6,210




5,849


Total equity attributable to common shareholders



5,080




4,785


 

 



FNF Group

December 31, 2016



FNFV

December 31, 2016

Consolidated

December 31, 2016


Consolidated

December 31, 2015



(Unaudited)


(Unaudited)


(Unaudited)




Cash and investment portfolio



$

4,965




$

642




$

5,607




$

5,633


Goodwill



4,859




206




5,065




4,756


Title plant



395







395




395


Total assets



13,063




1,400




14,463




13,931


Notes payable



2,513




233




2,746




2,793


Reserve for title claim losses



1,487







1,487




1,583


Secured trust deposits



860







860




701


Redeemable non-controlling interests



344







344




344


Non-redeemable non-controlling interests



786




116




902




834


Total equity and redeemable non-controlling interests



6,210




1,032




7,242




6,932


Total equity attributable to common shareholders



5,080




916




5,996




5,754


 

 

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



Three Months Ended



Twelve Months Ended


December 31, 2016



December 31, 2016


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

579



$

579



$




$

2,097



$

2,097



$


Agency title premiums

692



692






2,626



2,626




     Total title premiums

1,271



1,271






4,723



4,723




Escrow, title-related and other fees

910



866



44




3,546



3,378



168


     Total title and escrow and other

2,181



2,137



44




8,269



8,101



168















Restaurant revenue

300





300




1,158





1,158


Interest and investment income

33



33






129



126



3


Realized gains and losses, net

(7)



(2)



(5)




(2)



(8)



6


     Total revenue

2,507



2,168



339




9,554



8,219



1,335















Personnel costs

741



697



44




2,832



2,668



164


Other operating expenses

505



478



27




1,944



1,837



107


Cost of restaurant revenue

257





257




984





984


Agent commissions

525



525






1,998



1,998




Depreciation and amortization

116



99



17




431



369



62


Title claim loss expense

(33)



(33)






157



157




Interest expense

34



32



2




136



126



10


     Total expenses

2,145



1,798



347




8,482



7,155



1,327















Earnings (loss) from continuing operations before taxes

362



370



(8)




1,072



1,064



8


Income tax expense (benefit)

127



133



(6)




372



383



(11)


Earnings from continuing operations before equity investments

235



237



(2)




700



681



19


Earnings (loss) from equity investments

(2)



5



(7)




(8)



15



(23)


Net earnings (loss)

233



242



(9)




692



696



(4)


Non-controlling interests

10



11



(1)




42



42




Net earnings (loss) attributable to common shareholders

$

223



$

231



$

(8)




$

650



$

654



$

(4)















Cash flows provided by operations

416



372



44




1,162



1,081



81


 

 

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



Three Months Ended



Twelve Months Ended


December 31, 2015



December 31, 2015


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

521



$

521



$




$

2,009



$

2,009



$


Agency title premiums

592



592






2,277



2,277




     Total title premiums

1,113



1,113






4,286



4,286




Escrow, title-related and other fees

807



776



31




3,324



3,121



203


     Total title and escrow and other

1,920



1,889



31




7,610



7,407



203















Restaurant revenue

328





328




1,412





1,412


Interest and investment income

30



30






123



121



2


Realized gains and losses, net

6



14



(8)




(13)



6



(19)


     Total revenue

2,284



1,933



351




9,132



7,534



1,598















Personnel costs

678



636



42




2,671



2,514



157


Other operating expenses

457



437



20




1,881



1,714



167


Cost of restaurant revenue

274





274




1,195





1,195


Agent commissions

452



452






1,731



1,731




Depreciation and amortization

104



90



14




410



345



65


Title claim loss expense

61



61






246



246




Interest expense

34



31



3




131



122



9


     Total expenses

2,060



1,707



353




8,265



6,672



1,593















Earnings (loss) from continuing operations before taxes

224



226



(2)




867



862



5


Income tax expense (benefit)

71



73



(2)




290



310



(20)


Earnings from continuing operations before equity investments

153



153






577



552



25


Earnings (loss) from equity investments



2



(2)




(16)



6



(22)


Net earnings (loss)

153



155



(2)




561



558



3


Non-controlling interests

14



11



3




34



18



16


Net earnings (loss) attributable to common shareholders

$

139



$

144



$

(5)




$

527



$

540



$

(13)















Cash flows provided by operations

278



257



21




951



922



29


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnf-group-reports-fourth-quarter-2016-diluted-eps-of-083-and-adjusted-diluted-eps-of-071-pre-tax-title-margin-of-195-and-adjusted-pre-tax-title-margin-of-158-97-million-pre-tax-credit-recorded-to-claims-loss-expense-and-300400557.html

SOURCE Fidelity National Financial, Inc.

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