July 19, 2017

FNFV Reports Second Quarter 2017 Results With $1.02 Billion Book Value of Portfolio Company Investments, or $15.70 Per Share

JACKSONVILLE, Fla., July 19, 2017 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results for FNFV Group (NYSE: FNFV), a tracking stock established to highlight the inherent value of the portfolio companies of Fidelity National Financial, Inc., for the three and six-month periods ended June 30, 2017

  • Total revenue of $599 million in the second quarter versus $348 million in the second quarter of 2016
  • Pre-tax gain of $269 million from the June closing of the sale of One Digital Health and Benefits
  • Second quarter diluted EPS of $1.81 versus diluted EPS of $0.14 in the second quarter of 2016
  • Pretax earnings of $237 million and EBITDA of $256 million for the second quarter versus pretax earnings of $19 million and EBITDA of $35 million for the second quarter of 2016
  • $354 million in holding company cash on June 30, 2017

Restaurant Group

  • $287 million in total revenue, pretax loss of $2 million, EBITDA of $10 million, and an EBITDA margin of 3.5% for the second quarter, versus $292 million in total revenue, pretax earnings of $6 million, EBITDA of $17 million, and an EBITDA margin of 5.8% in the second quarter of 2016
  • Same store sales decreased 1.6% in the second quarter, as a Ninety Nine same stores sales increase of 0.6% was offset by an O'Charley's decline of 2.6%, a Village Inn decrease of 3.2% and a Bakers Square decline of 0.7%

Ceridian HCM

  • Second quarter total revenue of approximately $177 million, a 6.3% increase over the second quarter of 2016, pretax loss of $20.9 million, EBITDA of $15.2 million, a 60% increase over the second quarter of 2016, and an EBITDA margin of 8.6%

Monetization and Investment Initiatives

  • On June 2, completed the sale of One Digital Health and Benefits for $560 million in an all-cash transaction; after repayment of debt, payout to option holders and a minority equity investor and other transaction related payments, we received $331 million; after-tax proceeds were approximately $219 million
  • During the second quarter, we repurchased 1,295,800 shares of FNFV stock for approximately $19.6 million; since the formation of FNFV in July 2014, 27.6 million shares of FNFV stock have been repurchased for a total of $374 million; approximately 31% of the shares of FNFV stock distributed in July 2014 have been repurchased

"We were excited to monetize One Digital at an attractive price for our shareholders and recognize a pre-tax cash monetization of $331 million," said Chairman William P. Foley, II.  "This represented a 4.6x cash on cash multiple on our original equity investment and a 41% IRR.  We experienced tremendous growth in One Digital in our 4 1/2 year ownership and are proud of the success the company and FNFV enjoyed together.

"We also made significant progress on the FNFV exchange during the second quarter, with several milestones achieved.  We announced the receipt of the private letter ruling on May 10, filed the preliminary Registration Statement on Form S-4 with the SEC on May 11, received comments from the SEC on June 6 and responded to those comments on June 22.  We are continuing to work through the SEC review and are in the process of responding to additional comments received on July 14.  Once the SEC declares the Registration Statement on S-4 effective, we can mail the proxy to shareholders and then have the shareholder vote, at the earliest, twenty business days after the mailing.  We still expect a late third quarter closing for the exchange of the FNFV tracking stock for the new Cannae Holdings common stock that we plan to have trade on the NYSE under the ticker symbol CNNE."

Conference Call
We will host a call with investors and analysts to discuss second quarter 2017 results of FNFV on Thursday, July 20, 2017, beginning at 12:30 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 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 2:30 p.m. Eastern time on July 20, 2017, through July 27, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 426237.

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. 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), and earnings before interest, taxes and depreciation as a percent of revenue (EBITDA margin).

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 plan to 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 FNF Group 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 

FIDELITY NATIONAL FINANCIAL VENTURES

SECOND QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)










Total FNFV


Restaurant
Group


FNFV
Corporate and
Other

Three Months Ended




June 30, 2017





Operating revenue


$

330



$

288



$

42


Interest and investment income


1





1


Realized gains and losses, net


268



(1)



269


Total revenue


599



287



312









Personnel costs


65



13



52


Other operating expenses


29



15



14


Cost of restaurant revenue


249



249




Depreciation and amortization


16



11



5


Interest expense


3



1



2


Total expenses


362



289



73









Pre-tax earnings (loss) from continuing operations


$

237



$

(2)



$

239









  Income tax expense


$

113



$



$

113


  Loss from equity investments


(4)





(4)


  Non-controlling interests


(1)



(1)











Net earnings (loss) attributable to FNFV common shareholders


$

121



$

(1)



$

122









EPS attributable to FNFV common shareholders - basic


$

1.83



$

(0.02)



$

1.85


EPS attributable to FNFV common shareholders - diluted


$

1.81



$

(0.02)



$

1.83









FNFV weighted average shares - basic


66






FNFV weighted average shares - diluted


67













Pre-tax earnings (loss) from continuing operations


$

237



$

(2)



$

239









Interest expense


$

3



$

1



$

2


Depreciation and amortization


16



11



5









EBITDA


$

256



$

10



$

246


EBITDA margin


42.7

%


3.5

%


78.8

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SECOND QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)










Total FNFV


Restaurant
Group


FNFV
Corporate and
Other

Three Months Ended




June 30, 2016





Operating revenue


$

332



$

292



$

40


Interest and investment income


1





1


Realized gains and losses, net


15





15


Total revenue


348



292



56









Personnel costs


40



14



26


Other operating expenses


28



16



12


Cost of restaurant revenue


245



245




Depreciation and amortization


15



10



5


Interest expense


1



1




Total expenses


329



286



43









Pre-tax earnings from continuing operations


$

19



$

6



$

13









  Income tax expense


$

3



$



$

3


Loss from equity investments


(4)





(4)


  Non-controlling interests


2



2











Net earnings attributable to FNFV common shareholders


$

10



$

4



$

6









EPS attributable to FNFV common shareholders - basic


$

0.15



$

0.06



$

0.09


EPS attributable to FNFV common shareholders - diluted


$

0.14



$

0.06



$

0.08









FNFV weighted average shares - basic


67






FNFV weighted average shares - diluted


70













Pre-tax earnings from continuing operations


$

19



$

6



$

13









Interest expense


$

1



$

1



$


Depreciation and amortization


15




10




5









EBITDA


$

35



$

17



$

18


EBITDA margin


10.1

%

5.8

%



32.1

%















 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)










Total FNFV


Restaurant
Group


FNFV
Corporate and
Other

Six Months Ended




June 30, 2017





Operating revenue


$

652



$

561



$

91


Interest and investment income


2





2


Realized gains and losses, net


273



(1)



274


Total revenue


927



560



367









Personnel costs


111



26



85


Other operating expenses


54



30



24


Cost of restaurant revenue


485



485




Depreciation and amortization


32



22



10


Interest expense


7



3



4


Total expenses


689



566



123









Pre-tax earnings (loss) from continuing operations


$

238



$

(6)



$

244









  Income tax expense


111





111


Loss from equity investments


(8)





(8)


  Non-controlling interests


(3)



(3)











Net earnings (loss) attributable to FNFV common shareholders


$

122



$

(3)



$

125









EPS attributable to FNFV common shareholders - basic


$

1.85



$

(0.05)



$

1.90


EPS attributable to FNFV common shareholders - diluted


$

1.79



$

(0.05)



$

1.84









FNFV weighted average shares - basic


66






FNFV weighted average shares - diluted


68













Pre-tax earnings (loss) from continuing operations


$

238



$

(6)



$

244









Interest expense


$

7



$

3



$

4


Depreciation and amortization


32



22



10









EBITDA


$

277



$

19



$

258


EBITDA margin


29.9

%


3.4

%


70.3

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)










Total FNFV


Restaurant
Group


FNFV
Corporate and
Other

Six Months Ended




June 30, 2016





Operating revenue


$

663



$

585



$

78


Interest and investment income


2





2


Realized gains and losses, net


12



(3)



15


Total revenue


677



582



95









Personnel costs


78



27



51


Other operating expenses


55



37



18


Cost of restaurant revenue


490



490




Depreciation and amortization


30



20



10


Interest expense


4



2



2


Total expenses


657



576



81









Pre-tax earnings from continuing operations


$

20



$

6



$

14









Income tax expense


$

2



$



$

2


Loss from equity investments


(5)





(5)


Non-controlling interests


2



2











Net earnings attributable to FNFV common shareholders


$

11



$

4



$

7









EPS attributable to FNFV common shareholders - basic


$

0.16



$

0.06



$

0.10


EPS attributable to FNFV common shareholders - diluted


$

0.15



$

0.06



$

0.09









FNFV weighted average shares - basic


69






FNFV weighted average shares - diluted


71













Pre-tax earnings from continuing operations


$

20



$

6



$

14









Interest expense


$

4



$

2



$

2


Depreciation and amortization


30



20



10









EBITDA


$

54



$

28



$

26


EBITDA margin


8.0

%


4.8

%


27.4

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)






FNFV

June 30,
2017


FNFV

December 31,
2016


(Unaudited)


(Unaudited)

Cash and investment portfolio


$

850



$

642

Goodwill


102



206

Total assets


1,354



1,400

Notes payable


118



233

Non-controlling interest


108



116

Total equity and redeemable non-controlling interests


1,130



1,032

Total equity attributable to common shareholders


1,022



916













































FNF Group

June 30, 2017



FNFV

June 30, 2017



Consolidated

June 30,
2017


Consolidated

December 31,
2016


(Unaudited)


(Unaudited)



(Unaudited)




Cash and investment portfolio


$

4,705




$

850





$

5,555



$

5,607

Goodwill


4,905




102





5,007



5,065

Title plant


395








395



395

Total assets


12,848




1,354





14,202



14,463

Notes payable


2,320




118





2,438



2,746

Reserve for title claim losses


1,492








1,492



1,487

Secured trust deposits


892








892



860

Redeemable non-controlling interests


344








344



344

Non-redeemable non-controlling interests


770




108





878



902

Total equity and redeemable non-controlling interests


6,133




1,130





7,263



7,242

Total equity attributable to common shareholders


5,019




1,022





6,041



5,996






























Adjusted Book Value Summary

FNFV

June 30,

2017


FNFV

December 31,
2016


(Unaudited)


(Unaudited)

Ceridian/Fleetcor


$

399




$

386

American Blue Ribbon Holdings


173




173

One Digital





75

Del Frisco's Restaurant Group


18




49

Holding Company Cash


354




129

Other


78




104

     FNFV Book Value


$

1,022




$

916

     Outstanding FNFV shares


65.1




66.4

     FNFV Book Value per Share


$

15.70




$

13.78

 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)







Three Months Ended



Six Months Ended


June 30, 2017



June 30, 2017


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

575



$

575



$




$

1,040



$

1,040



$


Agency title premiums

726



726






1,309



1,309




     Total title premiums

1,301



1,301






2,349



2,349




Escrow, title-related and other fees

1,008



966



42




1,876



1,785



91


     Total title and escrow and other

2,309



2,267



42




4,225



4,134



91















Restaurant revenue

288





288




561





561


Interest and investment income

34



33



1




63



61



2


Realized gains and losses, net

256



(12)



268




255



(18)



273


     Total revenue

2,887



2,288



599




5,104



4,177



927















Personnel costs

788



723



65




1,503



1,392



111


Other operating expenses

558



529



29




1,018



964



54


Cost of restaurant revenue

249





249




485





485


Agent commissions

558



558






1,004



1,004




Depreciation and amortization

110



94



16




222



190



32


Title claim loss expense

65



65






117



117




Interest expense

29



26



3




64



57



7


     Total expenses

2,357



1,995



362




4,413



3,724



689















Earnings from continuing operations before taxes

530



293



237




691



453



238


Income tax expense

226



113



113




304



193



111


Earnings from continuing operations before equity investments

304



180



124




387



260



127


(Loss) earnings from equity investments

(2)



2



(4)




(4)



4



(8)


Net earnings from continuing operations

302



182



120




383



264



119


Non-controlling interests

6



7



(1)




15



18



(3)


Net earnings attributable to common shareholders

$

296



$

175



$

121




$

368



$

246



$

122















Cash flows provided by (used in) operations

287



401



(114)




291



389



(98)


 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)







Three Months Ended



Six Months Ended


June 30, 2016



June 30, 2016


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

540



$

540



$




$

962



$

962



$


Agency title premiums

691



691






1,221



1,221




  Total title premiums

1,231



1,231






2,183



2,183




Escrow, title-related and other fees

907



867



40




1,686



1,608



78


     Total title and escrow and other

2,138



2,098



40




3,869



3,791



78















Restaurant revenue

292





292




585





585


Interest and investment income

37



36



1




67



65



2


Realized gains and losses, net

15





15




9



(3)



12


     Total revenue

2,482



2,134



348




4,530



3,853



677















Personnel costs

707



667



40




1,359



1,281



78


Other operating expenses

493



465



28




925



870



55


Cost of restaurant revenue

245





245




490





490


Agent commissions

526



526






928



928




Depreciation and amortization

102



87



15




202



172



30


Title claim loss expense

68



68






120



120




Interest expense

33



32



1




67



63



4


     Total expenses

2,174



1,845



329




4,091



3,434



657















Earnings from continuing operations before taxes

308



289



19




439



419



20


Income tax expense

101



98



3




150



148



2


Earnings from continuing operations before equity investments

207



191



16




289



271



18


(Loss) earnings from equity investments

(1)



3



(4)




1



6



(5)


Net earnings from continuing operations

206



194



12




290



277



13


Non-controlling interests

9



7



2




19



17



2


Net earnings attributable to common shareholders

$

197



$

187



$

10




$

271



$

260



$

11















Cash flows provided by operations

282



277



5




374



349



25


 

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