Fidelity National Financial, Inc.

Fidelity National Financial, Inc.

Press Release

<< Back
Oct 27, 2015

FNF Group Reports Third Quarter 2015 Adjusted EPS of $0.60, Adjusted Pre-Tax Title Margin of 14.9%, Claims Provision Reduction to 5.5%, BKFS Revenue Growth of 9% and BKFS Adjusted EBITDA Margin of 44.7%

JACKSONVILLE, Fla., Oct. 27, 2015 /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 nine-month periods ended September 30, 2015.

  • Total revenue of approximately $2.0 billion in the third quarter versus $1.7 billion in the third quarter of 2014
  • Adjusted third quarter net earnings of $171 million versus adjusted net earnings of $144 million for the third quarter of 2014
  • Adjusted third quarter diluted EPS of $0.60 versus adjusted diluted EPS of $0.51 in the third quarter of 2014
  • Third quarter free cash flow provided of $231 million versus $281 million provided in the third quarter of 2014
  • Repurchased 2.35 million shares of FNF common stock for approximately $88 million in the third quarter

Title

  • Approximately $1.8 billion in total revenue, adjusted pre-tax earnings of $268 million and adjusted pre-tax title margin of 14.9% for the third quarter versus approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $224 million and an adjusted pre-tax title margin of 14.8% in the third quarter of 2014
  • Adjusted pre-tax title margin of 14.9% was a 20 basis point improvement over the third quarter 2014 adjusted pre-tax title margin of 14.8%
  • Claims loss provision was reduced to 5.5% for the third quarter driven by significantly lower title loss payments related to policy years 2009-2014
  • ServiceLink generated $220 million in revenue, adjusted EBITDA of $30 million, an adjusted EBITDA margin of 14%, adjusted pre-tax earnings of $27 million and an adjusted pre-tax margin of 12% for the third quarter
  • Open orders per day of 8,031 for the third quarter versus 7,516 open orders per day for the third quarter of 2014
  • Closed orders per day of 5,906 for the third quarter versus 5,438 closed orders per day for the third quarter of 2014
  • Third quarter purchase orders opened and closed increased by 8% and 11%, respectively, versus the third quarter of 2014; purchase orders opened and closed increased by 9% and 11%, respectively, versus the third quarter of 2014, for FNTG only (excluding ServiceLink)
  • Total commercial revenue of $258 million, a 15% increase over total commercial revenue in the third quarter of 2014; third quarter national commercial title revenue of $146 million, a 7% increase from the third quarter of 2014, driven by a 13% improvement in the commercial fee per file and a 5% decrease in closed orders; open national commercial orders decreased by 2% over the prior year
  • Overall third quarter average fee per file of $2,133, a 3% increase versus the third quarter of 2014
  • Title claims paid of $70 million, a decrease of $11 million, or 14%, from the third quarter of 2014

Title Orders




Direct Orders Opened *



Direct Orders Closed *

Month


 / (% Purchase)


 / (% Purchase)

July 2015



176,000

61%



136,000

60%

August 2015



169,000

58%



120,000

60%

September 2015



169,000

55%



122,000

59%








Third Quarter 2015



514,000

58%



378,000

60%








 




Direct Orders Opened *



Direct Orders Closed *

Month


 / (% Purchase)



 / (% Purchase)

July 2014



170,000

60%



120,000

62%

August 2014



155,000

59%



115,000

62%

September 2014



156,000

60%



113,000

60%








Third Quarter 2014



481,000

60%



348,000

62%


* 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*

Third Quarter 2015 - Total Commercial



50,300




33,000




$258




$7,800

Third Quarter 2014 - Total Commercial











$225




















Third Quarter 2015 - National Commercial



21,000




12,200




$146




$12,000

Third Quarter 2014 - National Commercial



21,400




12,800




$136




$10,600


* Total commercial order and fee per file tracking began in January 2015

 

BKFS

  • Revenue of $234 million, led by Servicing Technology revenue of approximately $162 million
  • Revenue growth of 9% for the third quarter compared to the third quarter of 2014, led by strong growth in Data & Analytics and Origination Technology
  • Adjusted EBITDA of $105 million and adjusted EBITDA margin of 44.7%

"We generated a solid 14.9% adjusted pre-tax title margin this quarter, essentially at the lower end of our normalized title margin target range," said Chairman William P. Foley, II.  "The commercial market remains very strong, the residential purchase market continues to steadily improve and the residential refinance market has been declining, although a recent drop in rates may provide a further period of improving refinance volumes.  We are pleased with our title margin performance this quarter, but to consistently reach and move higher in our 15%-20% normalized pre-tax title margin target range, we need to see continued improvement in the residential purchase market.  Additionally, as we enter the seasonally slower fourth quarter, our title margins will have to absorb the cost and more lengthy closing process resulting from the new TILA-RESPA closing disclosure requirements.

"Black Knight continues to meet and exceed our high expectations, generating 9% revenue growth, $105 million in adjusted EBITDA and a 44.7% adjusted EBITDA margin in the third quarter.  FNF's Black Knight ownership stake is currently worth approximately $2.9 billion, or approximately $10 per  FNF share, and we believe that a publicly-traded Black Knight will continue to be a source of value creation for FNF shareholders in the future." 

Conference Call
We will host a call with investors and analysts to discuss third quarter 2015 FNF Group results on Wednesday, October 28, 2015, beginning at 9:00 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 11:00 a.m. Eastern time on October 28, 2015, through November 4, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 370124.

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., Fleetcor Technologies, Inc. and Digital Insurance, 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: 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 GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Three Months Ended





September 30, 2015





Direct title premiums


$

524



$

524



$



$


Agency title premiums


647



647






Escrow, title related and other fees (1)


823



594



234



(5)


Total title and escrow


1,994



1,765



234



(5)











Interest and investment income


29



30





(1)


Realized gains and losses, net




1





(1)


Total revenue


2,023



1,796



234



(7)











Personnel costs


641



543



90



8


Agent commissions


495



495






Other operating expenses


452



413



41



(2)


Depreciation and amortization


85



36



48



1


Claim loss expense


65



65






Interest expense


31





16



15


Total expenses


1,769



1,552



195



22











Pre-tax earnings (loss) from continuing operations


$

254



$

244



$

39



$

(29)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


$



$

(1)



$



$

1


  Deferred revenue add back and management fee


3



1



2




  Purchase price amortization


47



24



23




 Total non-GAAP adjustments before taxes


$

50



$

24



$

25



$

1











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


$

304



$

268



$

64



$

(28)


  Adjusted pre-tax margin from continuing operations


15.0

%


14.9

%


27.1

%












Purchase price amortization


(47)



(24)



(23)




Depreciation and amortization


85



36



48



1


Interest expense


31





16



15











  Adjusted EBITDA


$

373



$

280



$

105



$

(12)


  Adjusted EBITDA margin


18.4

%


15.6

%


44.7

%












ServiceLink non-GAAP reconciliations:









ServiceLink pre-tax earnings


$

4








Depreciation and amortization


23








ServiceLink EBITDA


$

27








Management fee / other fees


3








ServiceLink Adjusted EBITDA


$

30

















ServiceLink pre-tax earnings


$

4








Purchase price amortization


20








Management fee / other fees


3








ServiceLink adjusted pre-tax earnings


$

27









1. BKFS also reported adjusted revenue of $236 million, which includes $2 million of deferred revenue

 

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Three Months Ended





September 30, 2015





Pre-tax earnings (loss) from continuing operations


$

254



$

244



$

39



$

(29)


  Income tax expense (benefit)


95



89



17



(11)


  Earnings from equity investments


2



2






  Non-controlling interests


11



1



10













Net earnings (loss) attributable to FNF Group common shareholders


$

150



$

156



$

12



$

(18)











EPS attributable to FNF Group common shareholders - basic


$

0.54



$

0.56



$

0.04



$

(0.06)


EPS attributable to FNF Group common shareholders - diluted


$

0.53



$

0.55



$

0.04



$

(0.06)











FNF Group weighted average shares - basic


277








FNF Group weighted average shares - diluted


285

















Net earnings (loss) attributable to FNF Group common shareholders


$

150



$

156



$

12



$

(18)











 Total non-GAAP, pre-tax adjustments


50



24



25



1


  Noncontrolling interest on non-GAAP adjustments


(16)



(5)



(11)




  Income taxes on non-GAAP adjustments


(13)



(7)



(6)




Total non-GAAP adjustments


21



12



8



1











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


$

171



$

168



$

20



$

(17)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.60



$

0.59



$

0.07



$

(0.06)











Direct orders opened (000's)


514



514






Direct orders closed (000's)


378



378






Fee per file


$

2,133



$

2,133






Actual title claims paid


$

70



$

70















Cash flows provided by operations:


$

277








Non-GAAP adjustments:









  THL Management fee


1








Total non-GAAP adjustments


1

















Adjusted cash flows from operations


278








Capital expenditures


47








Free cash flow


$

231








 

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Three Months Ended





September 30, 2014





Direct title premiums


$

465



$

465



$



$


Agency title premiums


528



528






Escrow, title related and other fees


708



491



214



3


Total title and escrow


1,701



1,484



214



3











Interest and investment income


27



28





(1)


Realized gains and losses, net


(2)



(2)






Total revenue


1,726



1,510



214



2











Personnel costs


584



479



96



9


Agent commissions


396



396






Other operating expenses


390



349



38



3


Depreciation and amortization


84



35



48



1


Claim loss expense


59



59






Interest expense


32





8



24


Total expenses


1,545



1,318



190



37











Pre-tax earnings (loss) from continuing operations


$

181



$

192



$

24



$

(35)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


2



$

2






  Deferred revenue add back


2





2




Severance expense


4



3



1




  Synergy accrual


9



3



4



2


  Merger transaction costs


4



3



1




  Other legal matters


5





3



2


  Purchase price amortization


46



21



25




 Total non-GAAP adjustments before taxes


$

72



$

32



$

36



$

4











  Adjusted pre-tax earnings (loss) from continuing operations


$

253



$

224



$

60



$

(31)


  Adjusted pre-tax margin from continuing operations


14.6

%


14.8

%


27.8

%












Purchase price amortization


(46)



(21)



(25)




Depreciation and amortization


84



35



48



1


Interest expense


32





8



24











  Adjusted EBITDA


$

323



$

238



$

91



$

(6)


  Adjusted EBITDA margin


18.7

%


15.7

%


42.1

%



 

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Three Months Ended





September 30, 2014





Pre-tax earnings (loss) from continuing operations


$

181



$

192



$

24



$

(35)











  Income tax expense


73



69





4


  Earnings from equity investments


1



1






  Non-controlling interests


(5)



(5)















Net earnings (loss) attributable to FNF Group common shareholders


$

114



$

129



$

24



$

(39)











EPS attributable to FNF Group common shareholders - basic


$

0.41



$

0.47



$

0.08



$

(0.14)


EPS attributable to FNF Group common shareholders - diluted


$

0.40



$

0.46



$

0.08



$

(0.14)











FNF Group weighted average shares - basic


275








FNF Group weighted average shares - diluted


284

















Net earnings (loss) attributable to FNF Group common shareholders


$

114



$

129



$

24



$

(39)











 Total non-GAAP, pre-tax adjustments


72



32



36



4


  Income taxes on non-GAAP adjustments


(18)



(8)



(9)



(1)


  Noncontrolling interest on non-GAAP adjustments


(24)



(11)



(13)




Total non-GAAP adjustments


30



13



14



3











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


$

144



$

142



$

38



$

(36)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.51



$

0.50



$

0.14



$

(0.13)











Direct orders opened (000's)


481



481






Direct orders closed (000's)


348



348






Fee per file


$

2,066



$

2,066






Actual title claims paid


$

81



$

81















Cash flows provided by operations:


$

292








Non-GAAP adjustments:









   Severance payments for LPS employees


4








   Synergy bonus payments


9








   THL Management Fee


1








   LPS merger transaction costs


3








   Other legal expenses


5








Total non-GAAP adjustments


22

















Adjusted cash flows from operations


314








Capital expenditures


33








Free cash flow


$

281








 

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Nine Months Ended





September 30, 2015





Direct title premiums


$

1,488



$

1,488



$



$


Agency title premiums


1,685



1,685






Escrow, title related and other fees


2,345



1,657



693



(5)


Total title and escrow


5,518



4,830



693



(5)











Interest and investment income


91



92





(1)


Realized gains and losses, net


(8)



2



(5)



(5)


Total revenue


5,601



4,924



688



(11)











Personnel costs


1,878



1,569



289



20


Agent commissions


1,279



1,279






Other operating expenses


1,277



1,154



119



4


Depreciation and amortization


255



110



143



2


Claim loss expense


185



185






Interest expense


91





35



56


Total expenses


4,965



4,297



586



82











Pre-tax earnings (loss) from continuing operations


$

636



$

627



$

102



$

(93)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


8



$

(2)



5



5


  Deferred revenue add back and management fee


10



2



8




  Purchase price amortization


137



70



67




  IPO costs & profits interest acceleration


10





10




 Total non-GAAP adjustments before taxes


$

165



$

70



$

90



$

5











  Adjusted pre-tax earnings (loss) from continuing operations


$

801



$

697



$

192



$

(88)


  Adjusted pre-tax margin from continuing operations


14.3

%


14.2

%


27.4

%












Purchase price amortization


(137)



(70)



(67)




Depreciation and amortization


255



110



143



2


Interest expense


91





35



56











  Adjusted EBITDA


$

1,010



$

737



$

303



$

(30)


  Adjusted EBITDA margin


18.0

%


15.0

%


43.3

%



 

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Nine Months Ended





September 30, 2015





Pre-tax earnings (loss) from continuing operations


$

636



$

627



$

102



$

(93)











  Income tax expense


237



229



17



(9)


  Earnings from equity investments


4



4






  Non-controlling interests


7



(10)



17













Net earnings (loss) attributable to FNF Group common shareholders


$

396



$

412



$

68



$

(84)











EPS attributable to FNF Group common shareholders - basic


$

1.42



$

1.48



$

0.24



$

(0.30)


EPS attributable to FNF Group common shareholders - diluted


$

1.38



$

1.44



$

0.24



$

(0.30)











FNF Group weighted average shares - basic


278








FNF Group weighted average shares - diluted


286

















Net earnings (loss) attributable to FNF Group common shareholders


$

396



$

412



$

68



$

(84)











 Total non-GAAP, pre-tax adjustments


165



70



90



5


  Income taxes on non-GAAP adjustments


(42)



(19)



(21)



(2)


  Noncontrolling interest on non-GAAP adjustments


(54)



(19)



(35)




Total non-GAAP adjustments


69



32



34



3











Adjusted net earnings attributable to FNF Group common shareholders


$

465



$

444



$

102



$

(81)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

1.63



$

1.55



$

0.36



$

(0.28)











Direct orders opened (000's)


1,651



1,651






Direct orders closed (000's)


1,132



1,132






Fee per file


$

2,003



$

2,003






Actual title claims paid


$

201



$

201















Cash flows provided by operations:


$

653








Non-GAAP adjustments:









  IPO Cost


4








  Management fee


3








Total non-GAAP adjustments


7

















Adjusted cash flows from operations


660








Capital expenditures


127








Free cash flow


$

533








 

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Nine Months Ended





September 30, 2014





Direct title premiums


$

1,249



$

1,249



$



$


Agency title premiums


1,450



1,450






Escrow, title related and other fees


2,015



1,394



632



(11)


Total title and escrow


4,714



4,093



632



(11)











Interest and investment income


88



89





(1)


Total revenue


4,802



4,182



632



(12)











Personnel costs


1,774



1,413



342



19


Agent commissions


1,098



1,098






Other operating expenses


1,186



1,040



159



(13)


Depreciation and amortization


253



109



142



2


Claim loss expense


169



169






Interest expense


93





23



70


Total expenses


4,573



3,829



666



78











Pre-tax earnings (loss) from continuing operations


$

229



$

353



$

(34)



$

(90)











Non-GAAP adjustments before taxes









  Deferred revenue add back


10





10




Severance expense


45



18



27




  Synergy accrual


67



28



28



11


  Merger transaction costs


56



32



50



(26)


  Premium tax settlement


(8)



(8)






  Other legal matters


21





11



10


  Purchase price amortization


137



64



73




 Total non-GAAP adjustments before taxes


$

328



$

134



$

199



$

(5)











  Adjusted pre-tax earnings (loss) from continuing operations


$

557



$

487



$

165



$

(95)


  Adjusted pre-tax margin from continuing operations


11.6

%


11.6

%


25.7

%












Purchase price amortization


(137)



(64)



(73)




Depreciation and amortization


253



109



142



2


Interest expense


93





23



70











  Adjusted EBITDA


$

766



$

532



$

257



$

(23)


  Adjusted EBITDA margin


15.9

%


12.7

%


40.0

%



 


FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)




Total FNF Group


Title


BKFS


FNF Group Corporate and Other

Nine Months Ended





September 30, 2014





Pre-tax earnings (loss) from continuing operations


$

229



$

353



$

(34)



$

(90)











  Income tax expense (benefit)


92



129



(11)



(26)


  Earnings from equity investments


3



3






  Loss from discontinued operations, net of tax


(1)



(1)






  Non-controlling interests


(76)



(40)



(36)













Net earnings (loss) attributable to FNF Group common shareholders


$

215



$

266



$

13



$

(64)











EPS attributable to Old FNF common shareholders - basic


$

0.37



$

0.50



$

(0.04)



$

(0.09)


EPS attributable to Old FNF common shareholders - diluted


$

0.36



$

0.49



$

(0.04)



$

(0.09)











EPS attributable to FNF Group common shareholders - basic


$

0.41



$

0.47



$

0.08



$

(0.14)


EPS attributable to FNF Group common shareholders - diluted


$

0.40



$

0.46



$

0.08



$

(0.14)











Old FNF weighted average shares - basic


183








Old FNF weighted average shares - diluted


189

















FNF Group weighted average shares - basic


92








FNF Group weighted average shares - diluted


94

















Net earnings (loss) attributable to FNF common shareholders *


$

215



$

266



$

13



$

(64)











 Total non-GAAP, pre-tax adjustments


328



134



199



(5)


  Income taxes on non-GAAP adjustments


(79)



(32)



(49)



2


  Noncontrolling interest on non-GAAP adjustments


(119)



(49)



(70)




Total non-GAAP adjustments


130



53



80



(3)











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


$

345



$

319



$

93



$

(67)


Adjusted EPS attributable to FNF common shareholders - diluted *


$

1.22



$

1.13



$

0.33



$

(0.24)


*Adjusted EPS is presented as Old FNF common shareholders and FNF Group common shareholders are combined.










Direct orders opened (000's)


1,463



1,463






Direct orders closed (000's)


985



985






Fee per file


$

1,974



$

1,974






Actual title claims paid


$

226



$

226

















Cash flows provided by operations:


$

288








Non-GAAP adjustments:









  Transaction costs related to acquisition of LPS


52








  Severance costs related to acquisition of LPS


45








  Synergy bonus payment


67








  Premium tax settlement


(8)








  THL Management Fee


4








  Other legal matters


21








Total non-GAAP adjustments


181

















Adjusted cash flows from operations


469








Capital expenditures


86








Free cash flow


$

383








 

FNF GROUP

QUARTERLY OPERATING STATISTICS

(Unaudited)




Q3 2015


Q2 2015


Q1 2015


Q4 2014


Q3 2014


Q2 2014


Q1 2014


Q4 2013

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

Total open orders*


514



560



578



452



481



514



469



391


Total open orders per day*


8.0



8.8



9.5



7.1



7.5



8.0



7.7



6.2


Purchase % of open orders


58

%


57

%


47

%


52

%


60

%


60

%


57

%


55

%

Refinance % of open orders


42

%


43

%


53

%


48

%


40

%


40

%


43

%


45

%

Total closed orders*


378



408



345



334



348



342



295



307


Total closed orders per day*


5.9



6.4



5.7



5.2



5.4



5.3



4.8



4.9


Purchase % of closed orders


60

%


54

%


46

%


57

%


62

%


61

%


52

%


56

%

Refinance % of closed orders


40

%


46

%


54

%


43

%


38

%


39

%


48

%


44

%


















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

Total commercial revenue**


$

258



$

258



$

208



$

274



$

225



$

183



175




Total commercial open orders**


50.3



50.8



47.8












Total commercial closed orders**


33.0



32.4



29.6





























National commercial revenue


$

146



$

150



$

119



$

166.3



$

136



$

115



$

104



$

146


National commercial open orders


21.0



21.2



20.4



18.1



21.4



22.2



19.6



19.3


National commercial closed orders


12.2



12.5



11.1



12.7



12.8



11.8



10.2



12.8



















Total Fee Per File

Fee per file


$

2,133



$

2,026



$

1,833



$

2,131



$

2,066



$

1,982



$

1,858



$

2,082


Residential and local commercial fee per file


$

1,805



$

1,711



$

1,538



$

1,699



$

1,739



$

1,750



$

1,559



$

1,676


Residential fee per file


$

1,589



$

1,514



$

1,346



$



$



$



$



$


Total commercial fee per file**


$

7,800



$

8,000



7,200












National commercial fee per file


$

12,000



$

12,000



$

10,700



$

13,100



$

10,600



$

9,800



$

10,200



$

11,400



















Total Staffing

Total field operations employees


11,000



10,900



10,400



9,900



10,200



10,200



10,300



9,900



















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

Total open orders*


422



458



456



354



385



403



349



331


Total open orders per day*


6.6



7.2



7.5



5.6



6.0



6.3



5.7



5.3


Purchase % of open orders


65

%


65

%


54

%


60

%


69

%


71

%


71

%


65

%

Refinance % of open orders


35

%


35

%


46

%


40

%


31

%


29

%


29

%


35

%

Total closed orders*


314



334



277



273



282



272



219



263


Total closed orders per day*


4.9



5.2



4.5



4.3



4.4



4.3



3.6



4.2


Purchase % of closed orders


66

%


61

%


52

%


63

%


70

%


71

%


67

%


66

%

Refinance % of closed orders


34

%


39

%


48

%


37

%


30

%


29

%


33

%


34

%

Fee per file


2,364



2,264



2,055



2,382



2,306



2,227



2,151



2,260


Total tile field operations employees


9,700



9,600



9,100



8,700



8,900



8,700



8,600



8,900



















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

Total Open Orders*


92



102



122



98



96



111



120



60


Total open orders per day*


1.4



1.6



2.0



1.6



1.5



1.7



2.0



1.0


Purchase % of open orders


23

%


22

%


17

%


23



23



20



7




Refinance % of open orders


77

%


78

%


83

%


77

%


77

%


80

%


93

%


100

%

Total closed orders


64



74



68



61



66



70



76



44


Total closed orders per day*


1.0



1.2



1.1



1.0



1.0



1.1



1.2



0.7


Purchase % of closed orders


26

%


21

%


22

%


26



24



18



6




Refinance % of closed orders


74

%


79

%


78

%


74

%


76

%


82

%


94

%


100

%

Fee per file


987



958



921



1,027



1,052



1,038



1,009



1,013


Total ServiceLink operating employees


1,300



1,300



1,300



1,200



1,300



1,500



1,700



970


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

** Total commercial order and fee per file tracking began in January 2015

 

FNF GROUP

SUMMARY BALANCE SHEET INFORMATION

(In millions)








FNF Group

September 30, 2015


FNF Group

December 31, 2014







(Unaudited)



(Unaudited)

Cash and investment portfolio







$

4,924




$

4,360


Goodwill







4,543




4,514


Title plant







394




393


Total assets







12,548




11,926


Notes payable







2,600




2,683


Reserve for title claim losses







1,605




1,621


Secured trust deposits







684




622


Redeemable non-controlling interests







344




715


Non-redeemable non-controlling interests







703




(58)


Total equity and redeemable non-controlling interests







5,825




5,272


Total equity attributable to common shareholders







4,778




4,615














FNF Group
September 30, 2015


FNFV

September 30, 2015


Consolidated

September 30, 2015


Consolidated

December 31, 2014



(Unaudited)


(Unaudited)


(Unaudited)




Cash and investment portfolio



$

4,924




$

781




$

5,705




$

5,369


Goodwill



4,543




188




4,731




4,721


Title plant



394







394




393


Total assets



12,548




1,488




14,036




13,845


Notes payable



2,600




211




2,811




2,803


Reserve for title claim losses



1,605







1,605




1,621


Secured trust deposits



684







684




622


Redeemable non-controlling interests



344







344




715


Non-redeemable non-controlling interests



703




111




814




79


Total equity and redeemable non-controlling interests



5,825




1,124




6,949




6,788


Total equity attributable to common shareholders



4,778




1,013




5,791




5,994


 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended



Nine Months Ended


September 30, 2015



September 30, 2015


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

524



$

524



$




$

1,488



$

1,488



$


Agency title premiums

647



647






1,685



1,685




     Total title premiums

1,171



1,171






3,173



3,173




Escrow, title-related and other fees

852



823



29




2,517



2,345



172


     Total title and escrow and other

2,023



1,994



29




5,690



5,518



172















Restaurant revenue

349





349




1,084





1,084


Interest and investment income

30



29



1




93



91



2


Realized gains and losses, net

(10)





(10)




(19)



(8)



(11)


     Total revenue

2,392



2,023



369




6,848



5,601



1,247















Personnel costs

680



641



39




1,993



1,878



115


Other operating expenses

476



452



24




1,424



1,277



147


Cost of restaurant revenue

302





302




921





921


Agent commissions

495



495






1,279



1,279




Depreciation and amortization

102



85



17




306



255



51


Title claim loss expense

65



65






185



185




Interest expense

34



31



3




97



91



6


     Total expenses

2,154



1,769



385




6,205



4,965



1,240















Earnings (loss) from continuing operations before taxes

238



254



(16)




643



636



7


Income tax expense (benefit)

81



95



(14)




219



237



(18)


Earnings (loss) from continuing operations before equity investments

157



159



(2)




424



399



25


(Loss) earnings from equity investments

(19)



2



(21)




(16)



4



(20)


Net earnings (loss)

138



161



(23)




408



403



5


Non-controlling interests

6



11



(5)




20



7



13


Net earnings (loss) attributable to common shareholders

$

132



$

150



$

(18)




$

388



$

396



$

(8)















Cash flows provided by operations

280



277



3




660



653



7


 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended



Nine Months Ended


September 30, 2014



September 30, 2014


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

465



$

465



$




$

1,249



$

1,249



$


Agency title premiums

528



528






1,450



1,450




     Total title premiums

993



993






2,699



2,699




Escrow, title-related and other fees

736



708



28




2,097



2,015



82


     Total title and escrow and other

1,729



1,701



28




4,796



4,714



82















Restaurant revenue

343





343




1,055





1,055


Interest and investment income

28



27



1




93



88



5


Realized gains and losses, net

(7)



(2)



(5)




(6)





(6)


     Total revenue

2,093



1,726



367




5,938



4,802



1,136















Personnel costs

626



584



42




1,888



1,774



114


Other operating expenses

411



390



21




1,247



1,186



61


Cost of restaurant revenue

296





296




899





899


Agent commissions

396



396






1,098



1,098




Depreciation and amortization

101



84



17




302



253



49


Title claim loss expense

59



59






169



169




Interest expense

32



32






96



93



3


     Total expenses

1,921



1,545



376




5,699



4,573



1,126















Earnings (loss) from continuing operations before taxes

172



181



(9)




239



229



10


Income tax expense (benefit)

65



73



(8)




79



92



(13)


Earnings from continuing operations before equity investments

107



108



(1)




160



137



23


(Loss) earnings from equity investments

(7)



1



(8)




(43)



3



(46)


Net earnings (loss) from continuing operations

100



109



(9)




117



140



(23)


Loss from discontinued operations, net of tax

(13)





(13)




(1)



(1)




Net earnings (loss)

87



109



(22)




116



139



(23)


Non-controlling interests

(15)



(5)



(10)




(75)



(76)



1


Net earnings (loss) attributable to common shareholders

$

102



$

114



$

(12)




$

191



$

215



$

(24)















Cash flows provided by operations

300



292



8




289



288



1


 

FNF-E

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnf-group-reports-third-quarter-2015-adjusted-eps-of-060-adjusted-pre-tax-title-margin-of-149-claims-provision-reduction-to-55-bkfs-revenue-growth-of-9-and-bkfs-adjusted-ebitda-margin-of-447-300167151.html

SOURCE Fidelity National Financial, Inc.

News Provided by Acquire Media