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Jacksonville, Fla. -- (July 23, 2003) -- Fidelity National Financial, Inc. (NYSE:FNF), a Fortune 500 provider of products, services and solutions to the real estate and financial services industries, today reported operating results for the three and six-month periods ended June 30, 2003.
"This was another tremendous quarter for FNF, as we achieved record quarterly revenue, net earnings and cash flow from operations," said Chairman and Chief Executive Officer William P. Foley, II. "Total revenue topped $2 billion for the first time in the history of the company, net earnings were nearly $250 million and cash flow from operations was $415 million. We achieved these results because of the strength of the residential real estate markets, the surge in refinance transactions and the recurring revenue and earnings contribution from Fidelity Information Services, which contributed nearly $210 million in incremental revenue in the second quarter. The outsourcing and processing services revenue provided by the mortgage loan servicing and core bank and loan processing platforms of Fidelity Information Services supply a stable, long-term, contractual, recurring stream of revenue and earnings that is not correlated with the mortgage cycle. One of our strategies is to better balance FNF's financial profile with significant contributions from our core title insurance business, real estate related services and outsourced processing solutions for the mortgage and financial services markets. More stable revenue and earnings should provide a higher multiple of earnings for FNF's stock, giving us a higher valued currency for future acquisitions in the core processing area."
The following table depicts monthly direct orders opened and closed for the second quarter of both 2003 and 2002:
"Once again, open orders gained significant volume during the quarter, growing from 20,000 open orders per day in April and peaking at more than 30,000 open orders per day in June," said President Randy Quirk. "We are well positioned as we enter the third quarter."
Fidelity National Financial, Inc., number 326 on the Fortune 500, is a provider of products, services and solutions to the real estate and financial services industries. The Company had total revenue of $3.4 billion and earned nearly $400 million in the first six months of 2003, with cash flow from operations of more than $600 million for that same period. FNF is the nation's largest title insurance company and also performs other real estate-related services such as escrow, default management, mortgage loan fulfillment, exchange intermediary services and homeowners, flood and home warranty insurance. FNF is also one of the world's largest providers of information-based technology solutions and processing services to the mortgage and financial services industries through its subsidiary Fidelity Information Services. It processes nearly 50 percent of all U. S. residential mortgages, with balances exceeding $2.5 trillion, has processing and technology relationships with 48 of the top 50 U. S. banks and has clients in more than 50 countries who rely on Fidelity Information Services' processing and outsourcing products and services. Including mortgages, more than 34 percent of the total dollar volume of all outstanding consumer loans in the country are processed on Fidelity Information Services software applications. Fidelity National Information Solutions (NASDAQ: FNIS), a majority-owned, publicly traded subsidiary of FNF, provides data and valuations, technology solutions and services for the real estate and mortgage industries. More information about the FNF family of companies can be found at www.fnf.com, www.fidelityinfoservices.com and www.fnis.com.
This press release contains statements related to future events and expectations and, as such, constitutes forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be different from those expressed or implied above. The Company expressly disclaims any duty to update or revise forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition and other risks detailed from time to time in the "Management's Discussion and Analysis" section of the Company's Form 10-K and other reports and filings with the Securities and Exchange Commission.
