October 25, 2017

FNFV Reports Third Quarter 2017 Results With $1.02 Billion Book Value of Portfolio Company Investments, or $15.65 Per Share

JACKSONVILLE, Fla., Oct. 25, 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 nine-month periods ended September 30, 2017

  • Total revenue of $279 million in the third quarter versus $319 million in the third quarter of 2016
  • Third quarter diluted EPS of ($0.08) versus diluted EPS of ($0.11) in the third quarter of 2016
  • Pretax loss of $21 million and EBITDA of ($8) million for the third quarter versus pretax loss of $4 million and EBITDA of $15 million for the third quarter of 2016
  • $323 million in holding company cash on September 30, 2017

Restaurant Group

  • $266 million in total revenue, pretax loss of $19 million, EBITDA of ($6) million for the third quarter, versus $272 million in total revenue, pretax loss of $4 million, EBITDA of $9 million, and an EBITDA margin of 3.3% in the third quarter of 2016
  • Same store sales declined 1.3% in the third quarter, as Ninety Nine same stores sales decreased by 1.3%, O'Charley's declined by 1.4%, Village Inn fell by 1.3% and Bakers Square declined by 0.7%

Ceridian HCM

  • Third quarter total revenue of $185 million, an 8.6% increase over the third quarter of 2016, pretax loss of $16.3 million, EBITDA of $20.1 million, a $20.7 million increase over the third quarter of 2016, and an EBITDA margin of 10.9%
  • Cloud-based revenues grew 33% to $103 million in the third quarter on a constant currency basis as 165 Dayforce customers went live on the platform during the quarter
  • Over 2,850 Dayforce customers are live on the platform, up from approximately 2,150 at the end of the third quarter of 2016

Monetization and Investment Initiatives

  • In October, completed the acquisition of T-System Holdings, a provider of clinical documentation and coding solutions to hospital-based and free-standing emergency departments and urgent care facilities, for approximately $200 million in cash
  • In August, announced a definitive agreement to merge 99 Restaurant & Pub with J. Alexander Holdings, after which FNFV will directly and indirectly own approximately 16.27 million common share equivalents, or approximately 52% of the outstanding common stock of J. Alexander's

"I am pleased with the success that we achieved this quarter, as we announced two exciting transactions that we believe will create value for our shareholders," said Chairman William P. Foley, II.  "The first is T-System, which is a great company with an experienced management team that operates in a very large and fragmented medical documentation and coding market, with a business model that is shifting to a majority of recurring revenue streams.  We believe that the documentation business is at an inflection point with a significant near-term organic growth opportunity.  We are also confident that we can assist T-System in making multiple acquisitions that can further accelerate future growth while expanding the product and services that the company offers to its customers.  Longer term, we see the Healthcare IT and Services sector as an exciting area for investment and growth and see T-System as a platform to take advantage of this opportunity.

"We also announced the merger of our 99 Restaurant and Pub operations with J. Alexander's in a stock for stock combination. Both 99 and J. Alexander's are terrific concepts that have individually generated strong same store sales and impressive financial performance in a challenging environment for the casual dining industry.  We believe this combination provides a larger, stronger, better diversified and more formidable player in the casual dining segment.

Mr. Foley concluded, "We made significant progress on the FNFV exchange transaction during the third quarter and have now set a shareholder vote and closing date of November 17, 2017, for the exchange of the FNFV tracking stock for Cannae Holdings common stock.  The new Cannae Holdings common stock will trade on the NYSE under the ticker symbol 'CNNE' and it will be a legally separate, stand-alone public company."

Conference Call
We will host a call with investors and analysts to discuss third quarter 2017 results of FNFV on Thursday, October 26, 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 October 26, 2017, through November 1, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 430330.

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. 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 Cannae Holdings 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

THIRD QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant
Group


Corporate and
Other

Three Months Ended




September 30, 2017




Operating revenue


$

280



$

269



$

11


Interest and investment income


2





2


Realized gains and losses, net


(3)



(3)




Total revenue


279



266



13









Personnel costs


19



13



6


Other operating expenses


25



16



9


Cost of restaurant revenue


243



243




Depreciation and amortization


12



11



1


Interest expense


1



2



(1)


Total expenses


300



285



15









Pre-tax loss from continuing operations


$

(21)



$

(19)



$

(2)









  Income tax benefit


$

(14)



$



$

(14)


  Loss from equity investments


(6)





(6)


  Non-controlling interests


(8)



(8)











Net (loss) earnings attributable to FNFV common shareholders


$

(5)



$

(11)



$

6









EPS attributable to FNFV common shareholders - basic


$

(0.08)



$

(0.17)



$

0.09


EPS attributable to FNFV common shareholders - diluted


$

(0.08)



$

(0.17)



$

0.09









FNFV weighted average shares - basic


65






FNFV weighted average shares - diluted


65













Pre-tax loss from continuing operations


$

(21)



$

(19)



$

(2)









Interest expense


$

1



$

2



$

(1)


Depreciation and amortization


12



11



1









EBITDA


$

(8)



$

(6)



$

(2)


EBITDA margin







 

 

FIDELITY NATIONAL FINANCIAL VENTURES

THIRD QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant
Group


Corporate and
Other

Three Months Ended




September 30, 2016




Operating revenue


$

319



$

273



$

46


Interest and investment income


1





1


Realized gains and losses, net


(1)



(1)




Total revenue


319



272



47









Personnel costs


42



13



29


Other operating expenses


25



13



12


Cost of restaurant revenue


237



237




Depreciation and amortization


15



11



4


Interest expense


4



2



2


Total expenses


323



276



47









Pre-tax loss from continuing operations


$

(4)



$

(4)



$









  Income tax benefit


$

(7)



$



$

(7)


 Loss from equity investments


(11)





(11)


  Non-controlling interests


(1)



(1)











Net loss attributable to FNFV common shareholders


$

(7)



$

(3)



$

(4)









EPS attributable to FNFV common shareholders - basic


$

(0.11)



$

(0.05)



$

(0.06)


EPS attributable to FNFV common shareholders - diluted


$

(0.11)



$

(0.05)



$

(0.06)









FNFV weighted average shares - basic


66






FNFV weighted average shares - diluted


69













Pre-tax loss from continuing operations


$

(4)



$

(4)



$









Interest expense


$

4



$

2



$

2


Depreciation and amortization


15



11



4









EBITDA


$

15



$

9



$

6


EBITDA margin


4.7

%


3.3

%


12.8

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant
Group


Corporate and
Other

Nine Months Ended




September 30, 2017




Operating revenue


$

932



$

830



$

102


Interest and investment income


4





4


Realized gains and losses, net


277



(4)



281


Total revenue


1,213



826



387









Personnel costs


136



39



97


Other operating expenses


80



46



34


Cost of restaurant revenue


728



728




Depreciation and amortization


44



33



11


Interest expense


8



5



3


Total expenses


996



851



145









Pre-tax earnings (loss) from continuing operations


$

217



$

(25)



$

242









  Income tax expense


97





97


 Loss from equity investments


(14)





(14)


  Non-controlling interests


(11)



(11)











Net earnings (loss) attributable to FNFV common shareholders


$

117



$

(14)



$

131









EPS attributable to FNFV common shareholders - basic


$

1.80



$

(0.22)



$

2.02


EPS attributable to FNFV common shareholders - diluted


$

1.75



$

(0.22)



$

1.97









FNFV weighted average shares - basic


65






FNFV weighted average shares - diluted


67













Pre-tax earnings (loss) from continuing operations


$

217



$

(25)



$

242









Interest expense


$

8



$

5



$

3


Depreciation and amortization


44



33



11









EBITDA


$

269



$

13



$

256


EBITDA margin


22.2

%


1.6

%


66.1

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant
Group


Corporate and
Other

Nine Months Ended




September 30, 2016




Operating revenue


$

982



$

858



$

124


Interest and investment income


3





3


Realized gains and losses, net


11



(4)



15


Total revenue


996



854



142









Personnel costs


120



40



80


Other operating expenses


80



50



30


Cost of restaurant revenue


727



727




Depreciation and amortization


45



31



14


Interest expense


8



4



4


Total expenses


980



852



128









Pre-tax earnings from continuing operations


$

16



$

2



$

14









Income tax benefit


$

(5)



$



$

(5)


Loss from equity investments


(16)





(16)


Non-controlling interests


1



1











Net earnings attributable to FNFV common shareholders


$

4



$

1



$

3









EPS attributable to FNFV common shareholders - basic


$

0.06



$

0.02



$

0.04


EPS attributable to FNFV common shareholders - diluted


$

0.06



$

0.02



$

0.04









FNFV weighted average shares - basic


68






FNFV weighted average shares - diluted


70













Pre-tax earnings from continuing operations


$

16



$

2



$

14









Interest expense


$

8



$

4



$

4


Depreciation and amortization


45



31



14









EBITDA


$

69



$

37



$

32


EBITDA margin


6.9

%


4.3

%


22.5

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)




FNFV

September 30,
2017


FNFV

December 31,
2016



(Unaudited)


(Unaudited)

Cash and investment portfolio



$

807




$

642


Goodwill



101




206


Total assets



1,311




1,400


Notes payable



128




233


Non-controlling interest



99




116


Total equity and redeemable non-controlling interests



1,114




1,032


Total equity attributable to common shareholders



1,015




916





FNF Group

September 30,
2017



FNFV

September 30,
2017



Consolidated

September 30,
2017


Consolidated

December 31,
2016



(Unaudited)


(Unaudited)



(Unaudited)




Cash and investment portfolio



$

4,555




$

807





$

5,362




$

5,473


Goodwill



2,683




101





2,784




2,761


Title plant



398








398




395


Total assets



9,190




1,311





10,501




14,463


Notes payable



762




128





890




1,220


Reserve for title claim losses



1,496








1,496




1,487


Secured trust deposits



923








923




860


Redeemable non-controlling interests



344








344




344


Non-redeemable non-controlling interests






99





99




902


Total equity and redeemable non-controlling interests


4,599




1,114





5,713




7,242


Total equity attributable to common shareholders



4,255




1,015





5,270




5,996



Adjusted Book Value Summary


FNFV

September 30,
2017


FNFV

December 31,
2016



(Unaudited)


(Unaudited)

Ceridian/Fleetcor



$

400




$

386


American Blue Ribbon Holdings



157




173


One Digital






75


Del Frisco's Restaurant Group



17




49


Holding Company Cash



323




129


Other



118




104


     FNFV Book Value



$

1,015




$

916


     Outstanding FNFV shares



64.9




66.4


     FNFV Book Value per Share



$

15.65




$

13.78


 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended



Nine Months Ended


September 30, 2017



September 30, 2017


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

558



$

558



$




$

1,598



$

1,598



$


Agency title premiums

719



719






2,028



2,028




     Total title premiums

1,277



1,277






3,626



3,626




Escrow, title-related and other fees

689



678



11




2,071



1,969



102


     Total title and escrow and other

1,966



1,955



11




5,697



5,595



102















Restaurant revenue

269





269




830





830


Interest and investment income

34



32



2




97



93



4


Realized gains and losses, net

(4)



(1)



(3)




277





277


     Total revenue

2,265



1,986



279




6,901



5,688



1,213















Personnel costs

646



627



19




1,958



1,822



136


Other operating expenses

468



443



25




1,392



1,312



80


Cost of restaurant revenue

243





243




728





728


Agent commissions

553



553






1,557



1,557




Depreciation and amortization

58



46



12




177



133



44


Title claim loss expense

64



64






181



181




Interest expense

12



11



1




47



39



8


     Total expenses

2,044



1,744



300




6,040



5,044



996















Earnings (loss) from continuing operations before taxes

221



242



(21)




861



644



217


Income tax expense (benefit)

74



88



(14)




355



258



97


Earnings (loss) from continuing operations before equity investments

147



154



(7)




506



386



120


(Loss) earnings from equity investments

(3)



3



(6)




(7)



7



(14)


Net earnings (loss) from continuing operations

144



157



(13)




499



393



106


Earnings from discontinued operations, net of tax

31



31






59



59




Net earnings (loss)

175



188



(13)




558



452



106


Non-controlling interests

10



18



(8)




25



36



(11)


Net earnings (loss) attributable to common shareholders

$

165



$

170



$

(5)




$

533



$

416



$

117















Cash flows provided by (used in) operations

274



302



(28)




566



691



(125)


 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended



Nine Months Ended


September 30, 2016



September 30, 2016


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

556



$

556



$




$

1,518



$

1,518



$


Agency title premiums

713



713






1,934



1,934




  Total title premiums

1,269



1,269






3,452



3,452




Escrow, title-related and other fees

700



654



46




1,920



1,796



124


     Total title and escrow and other

1,969



1,923



46




5,372



5,248



124















Restaurant revenue

273





273




858





858


Interest and investment income

29



28



1




96



93



3


Realized gains and losses, net

(4)



(3)



(1)




5



(6)



11


     Total revenue

2,267



1,948



319




6,331



5,335



996















Personnel costs

630



588



42




1,800



1,680



120


Other operating expenses

464



439



25




1,296



1,216



80


Cost of restaurant revenue

237





237




727





727


Agent commissions

545



545






1,473



1,473




Depreciation and amortization

56



41



15




161



116



45


Title claim loss expense

70



70






190



190




Interest expense

18



14



4




55



47



8


     Total expenses

2,020



1,697



323




5,702



4,722



980















Earnings (loss) from continuing operations before taxes

247



251



(4)




629



613



16


Income tax expense (benefit)

88



95



(7)




218



223



(5)


Earnings from continuing operations before equity investments

159



156



3




411



390



21


(Loss) earnings from equity investments

(7)



4



(11)




(6)



10



(16)


Net earnings (loss) from continuing operations

152



160



(8)




405



400



5


Earnings from discontinued operations, net of tax

17



17






54



54




Net earnings (loss)

169



177



(8)




459



454



5


Non-controlling interests

13



14



(1)




32



31



1


Net earnings (loss) attributable to common shareholders

$

156



$

163



$

(7)




$

427



$

423



$

4















Cash flows provided by operations

372



360



12




745



709



36


 

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