Fidelity National Financial, Inc.

Fidelity National Financial, Inc.

Press Release

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Feb 13, 2019

FNF Reports Fourth Quarter 2018 Diluted EPS of $0.16 and Adjusted Diluted EPS of $0.63, Pre-Tax Title Margin of 6.1% and Adjusted Pre-Tax Title Margin of 14.4%

JACKSONVILLE, Fla., Feb. 13, 2019 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE: FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, today reported operating results for the three and twelve-month periods ended December 31, 2018.

  • Total revenue of approximately $1.7 billion in the fourth quarter versus $2.0 billion in the fourth quarter of 2017
  • Fourth quarter net earnings of $44 million and adjusted net earnings of $175 million versus net earnings from continuing operations of $246 million and adjusted net earnings from continuing operations of $170 million for the fourth quarter of 2017
  • Fourth quarter diluted EPS of $0.16 and adjusted diluted EPS of $0.63 versus diluted EPS from continuing operations of $0.88 and adjusted diluted EPS from continuing operations of $0.60 in the fourth quarter of 2017
  • Realized losses were $144 million in the fourth quarter versus realized gains of $2 million in the fourth quarter of 2017, primarily due to the adoption of a new accounting standard in 2018 that requires mark to market accounting treatment of equity and preferred stock securities and recognition of the related changes in fair value in realized gains and losses, whether the securities were disposed of in the quarter or continue to be held in our investment portfolio

Title

  • Total revenue of approximately $1.7 billion versus approximately $1.9 billion in total revenue in the fourth quarter of 2017
  • Pre-tax earnings of $102 million and adjusted pre-tax earnings of $258 million versus pre-tax earnings of $248 million and adjusted pre-tax earnings of $273 million in the fourth quarter of 2017
  • Pre-tax title margin of 6.1% and adjusted pre-tax title margin of 14.4% versus pre-tax title margin of 13.4% and adjusted pre-tax title margin of 14.7% in the fourth quarter of 2017
  • Fourth quarter purchase orders opened decreased 6% and purchase orders closed decreased 6% versus the fourth quarter of 2017
  • Total commercial revenue of $324 million, a 13% increase over total commercial revenue in the fourth quarter of 2017, driven by a 6% increase in closed orders and a 6% increase in total commercial fee per file; fourth quarter total commercial open orders decreased 1% compared to the prior year
  • Overall fourth quarter average fee per file of $2,803, a 16% increase versus the fourth quarter of 2017

Title Orders

     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

 

 / (% Purchase)

October 2018

   

150,000

69%

   

111,000

68%

November 2018

   

123,000

68%

   

95,000

70%

December 2018

   

106,000

65%

   

95,000

68%

             

Fourth Quarter 2018

   

379,000

67%

   

301,000

69%

             
     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

   

 / (% Purchase)

October 2017

   

167,000

61%

   

124,000

61%

November 2017

   

151,000

60%

   

114,000

61%

December 2017

   

127,000

59%

   

119,000

61%

             

Fourth Quarter 2017

   

445,000

60%

   

357,000

61%

                 

     * 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 2018 - Total Commercial

   

46,000

     

35,200

     

$324

     

$9,200

Fourth Quarter 2017 - Total Commercial

   

46,300

     

33,200

     

$288

     

$8,700

"The fourth quarter was a solid finish to a strong year for our title business, as we generated adjusted pre-tax title earnings of $258 million and a 14.4% adjusted pre-tax title margin," said Chairman William P. Foley, II.  "For the full-year 2018, we generated adjusted pre-tax title earnings of nearly $1.1 billion and an adjusted pre-tax title margin of 14.8%.  Additionally, fourth quarter total commercial revenue of $324 million was a company record, as was full-year 2018 total commercial revenue of $1.1 billion.  We expect another strong performance from our commercial operations in 2019.  We did experience some softness in the residential purchase market in the fourth quarter, as closed purchase orders declined by 6% versus the prior year.  In response to that slowdown in the purchase market, we reduced staffing in our field operations by approximately 564 positions, or 5%, during the fourth quarter.  As we enter 2019, we are optimistic that the strong economy, relatively stable mortgage rates, potentially slower home price appreciation and the possibility of increased residential supply will provide the backdrop for a restart of the strength in the residential purchase market that we saw for much of 2018.

"We continue to work through the regulatory process for the Stewart Information Services acquisition and are engaged in the Second Request related to the FTC's HSR regulatory review of the transaction.  Unfortunately, the FTC informed us that no work related to the regulatory review occurred during the recent roughly month-long government shutdown.  Also, on January 31, 2019, the New York State Department of Financial Services provided written notice of its disapproval of FNF's application to acquire control of Stewart Title Insurance Company, a New York domiciled title insurance underwriter that is licensed only in the State of New York.  We are evaluating the appropriate course of action, which may include a discussion with the New York State Department of Financial Services to better understand its concerns and respond to the letter.  We continue to believe the Stewart acquisition will create meaningful long-term value for our shareholders."

Conference Call
We will host a call with investors and analysts to discuss fourth quarter 2018 FNF results on Thursday, February 14, 2019, beginning at 1:00 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 fnf.com.  The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com.  The telephone replay will be available from 3:00 p.m. Eastern Time on February 14, 2019, through February 21, 2019, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 462490.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance 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.  More information about FNF can be found at 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, FNF 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 adjusted pre-tax earnings, adjusted pre-tax earnings from continuing operations, adjusted pre-tax earnings as a percentage of adjusted revenue (adjusted pre-tax title margin), adjusted pre-tax earnings from continuing operations as a percentage of adjusted revenue (adjusted pre-tax title margin from continuing operations), adjusted net earnings, adjusted net earnings from continuing operations, adjusted EPS and adjusted EPS from continuing operations.

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; 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; the risk that the necessary regulatory approvals of our acquisition of Stewart Information Services Corporation ("Stewart") may not be obtained or may be obtained subject to conditions that are not anticipated;  risks that any of the closing conditions to the proposed Stewart merger may not be satisfied in a timely manner; the risk that the businesses will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the acquisition will not be realized; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission ("SEC").

FNF-E

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Three Months Ended

 

December 31, 2018

 

Direct title premiums

 

$

576

   

$

576

   

$

 

Agency title premiums

 

672

   

672

   

 

Escrow, title related and other fees

 

537

   

499

   

38

 

Total title and escrow

 

1,785

   

1,747

   

38

 
             

Interest and investment income

 

52

   

48

   

4

 

Realized gains and losses, net

 

(144)

   

(135)

   

(9)

 

Total revenue

 

1,693

   

1,660

   

33

 
             

Personnel costs

 

612

   

592

   

20

 

Agent commissions

 

513

   

513

   

 

Other operating expenses

 

395

   

359

   

36

 

Depreciation and amortization

 

44

   

38

   

6

 

Claim loss expense

 

56

   

56

   

 

Interest expense

 

12

   

   

12

 

Total expenses

 

1,632

   

1,558

   

74

 
             

Pre-tax earnings (loss)

 

$

61

   

$

102

   

$

(41)

 
             

Non-GAAP adjustments before taxes

           

  Realized (gains) and losses, net

 

144

   

135

   

9

 

  Purchase price amortization

 

27

   

21

   

6

 

  Transaction costs

 

4

   

   

4

 

 Total non-GAAP adjustments before taxes

 

$

175

   

$

156

   

$

19

 
             

Adjusted pre-tax earnings (loss)

 

$

236

   

$

258

   

$

(22)

 

Adjusted pre-tax margin

 

12.8

%

 

14.4

%

 

%

             

Pre-tax earnings (loss)

 

$

61

   

$

102

   

$

(41)

 

  Income tax expense (benefit)

 

16

   

26

   

(10)

 

  Earnings from equity investments

 

1

   

1

   

 

  Non-controlling interests

 

2

   

1

   

1

 
             

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

44

   

$

76

   

$

(32)

 
             

EPS attributable to FNF, Inc. common shareholders - basic

 

$

0.16

         

EPS attributable to FNF, Inc. common shareholders - diluted

 

$

0.16

         
             

FNF, Inc. weighted average shares - basic

 

274

         

FNF, Inc. weighted average shares - diluted

 

277

         
                                     

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Three Months Ended

   

December 31, 2018

   

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

44

   

$

76

   

$

(32)

 
             

 Total non-GAAP, pre-tax adjustments

 

$

175

   

$

156

   

$

19

 

  Income taxes on non-GAAP adjustments

 

(40)

   

(36)

   

(4)

 

  Noncontrolling interest on non-GAAP adjustments

 

(4)

   

(3)

   

(1)

 

Total non-GAAP adjustments

 

$

131

   

$

117

   

$

14

 
             

Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

175

   

$

193

   

$

(18)

 
             

Adjusted EPS attributable to FNF, Inc. common shareholders - diluted

 

$

0.63

         
             

Direct orders opened (000's)

 

379

   

379

     

Direct orders closed (000's)

 

301

   

301

     

Fee per file

 

$

2,803

   

$

2,803

     

Actual title claims paid

 

$

58

   

$

58

     
             

Cash flows provided by operations

 

$

273

         

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Three Months Ended

   

December 31, 2017

   

Direct title premiums

 

$

572

   

$

572

   

$

 

Agency title premiums

 

695

   

695

   

 

Escrow, title related and other fees

 

668

   

547

   

121

 

Total title and escrow

 

1,935

   

1,814

   

121

 
             

Interest and investment income

 

38

   

38

   

 

Realized gains and losses, net

 

2

   

   

2

 

Total revenue

 

1,975

   

1,852

   

123

 
             

Personnel costs

 

638

   

611

   

27

 

Agent commissions

 

532

   

532

   

 

Other operating expenses

 

469

   

362

   

107

 

Depreciation and amortization

 

50

   

42

   

8

 

Claim loss expense

 

57

   

57

   

 

Interest expense

 

9

   

   

9

 

Total expenses

 

1,755

   

1,604

   

151

 
             

Pre-tax earnings (loss) from continuing operations

 

$

220

   

$

248

   

$

(28)

 
             

Non-GAAP adjustments before taxes

           

  Realized (gains) and losses, net

 

(2)

   

   

(2)

 

  Purchase price amortization

 

31

   

25

   

6

 

  Spin-off costs

 

1

   

   

1

 

 Total non-GAAP adjustments before taxes

 

$

30

   

$

25

   

$

5

 
             

Adjusted pre-tax earnings (loss) from continuing operations

 

$

250

   

$

273

   

$

(23)

 

Adjusted pre-tax margin from continuing operations

 

12.7

%

 

14.7

%

 

%

             

Pre-tax earnings (loss) from continuing operations

 

$

220

   

$

248

   

$

(28)

 
             

  Income tax benefit

 

(23)

   

(16)

   

(7)

 

  Earnings from equity investments

 

3

   

3

   

 

  Loss from discontinued operations, net of tax

 

(10)

   

   

(10)

 

  Non-controlling interests

 

(2)

   

1

   

(3)

 
             

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

238

   

$

266

   

$

(28)

 
             

Net (loss) earnings attributable to FNFV Group common shareholders

 

$

(8)

   

$

   

$

(8)

 

Net earnings (loss) attributable to FNF Group common shareholders

 

$

246

   

$

266

   

$

(20)

 
             

EPS from continuing operations attributable to FNF, Inc. common shareholders - basic

 

$

0.90

         

EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted

 

$

0.88

         
             

FNF, Inc. weighted average shares - basic

 

272

         

FNF, Inc. weighted average shares - diluted

 

281

         

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Three Months Ended

   

December 31, 2017

   

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

238

   

$

266

   

$

(28)

 
             

  Loss from discontinued operations, net of tax

 

(10)

   

   

(10)

 

  Non-controlling interests of discontinued operations

 

(2)

   

   

(2)

 
             

Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders

 

$

246

   

$

266

   

$

(20)

 
             

 Total non-GAAP, pre-tax adjustments

 

$

30

   

$

25

   

$

5

 

  Income taxes on non-GAAP adjustments

 

(10)

   

(8)

   

(2)

 

  Noncontrolling interest on non-GAAP adjustments

 

(3)

   

(3)

   

 

  Tax reform

 

(93)

   

(103)

   

10

 

Total non-GAAP adjustments

 

$

(76)

   

$

(89)

   

$

13

 
             

Adjusted net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders

 

$

170

   

$

177

   

$

(7)

 
             

Adjusted EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted

 

$

0.60

         
             

Direct orders opened (000's)

 

445

   

445

     

Direct orders closed (000's)

 

357

   

357

     

Fee per file

 

$

2,425

   

$

2,425

     

Actual title claims paid

 

$

63

   

$

63

     
             

Cash flows provided by operations

 

$

183

         

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Twelve Months Ended

   

December 31, 2018

   

Direct title premiums

 

$

2,221

   

$

2,221

   

$

 

Agency title premiums

 

2,690

   

2,690

   

 

Escrow, title related and other fees

 

2,615

   

2,189

   

426

 

Total title and escrow

 

7,526

   

7,100

   

426

 
             

Interest and investment income

 

177

   

170

   

7

 

Realized gains and losses, net

 

(109)

   

(110)

   

1

 

Total revenue

 

7,594

   

7,160

   

434

 
             

Personnel costs

 

2,538

   

2,430

   

108

 

Agent commissions

 

2,059

   

2,059

   

 

Other operating expenses

 

1,801

   

1,421

   

380

 

Depreciation and amortization

 

182

   

154

   

28

 

Claim loss expense

 

221

   

221

   

 

Interest expense

 

43

   

   

43

 

Total expenses

 

6,844

   

6,285

   

559

 
             

Pre-tax earnings (loss)

 

$

750

   

$

875

   

$

(125)

 
             

Non-GAAP adjustments before taxes

           

  Realized (gains) and losses, net

 

109

   

110

   

(1)

 

  Purchase price amortization

 

109

   

87

   

22

 

  Transaction costs

 

17

   

   

17

 

  Sales tax contingency

 

6

   

6

   

 

  Other adjustments

 

3

   

1

   

2

 

 Total non-GAAP adjustments before taxes

 

$

244

   

$

204

   

$

40

 
             

Adjusted pre-tax earnings (loss)

 

$

994

   

$

1,079

   

$

(85)

 

Adjusted pre-tax margin

 

12.9

%

 

14.8

%

 

%

             

Pre-tax earnings (loss)

 

$

750

   

$

875

   

$

(125)

 
             

  Income tax expense (benefit)

 

120

   

163

   

(43)

 

  Earnings from equity investments

 

5

   

4

   

1

 

  Non-controlling interests

 

7

   

8

   

(1)

 
             

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

628

   

$

708

   

$

(80)

 
             

EPS attributable to FNF, Inc. common shareholders - basic

 

$

2.30

         

EPS attributable to FNF, Inc. common shareholders - diluted

 

$

2.26

         
             

FNF, Inc. weighted average shares - basic

 

273

         

FNF, Inc. weighted average shares - diluted

 

278

         

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Twelve Months Ended

   

December 31, 2018

   

Net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

628

   

$

708

   

$

(80)

 
             

 Total non-GAAP, pre-tax adjustments

 

$

244

   

$

204

   

$

40

 

  Income taxes on non-GAAP adjustments

 

(55)

   

(46)

   

(9)

 

  Noncontrolling interest on non-GAAP adjustments

 

(14)

   

(11)

   

(3)

 

  Change in tax estimate

 

(45)

   

(45)

   

 

  Black Knight tax contingency

 

(8)

   

   

(8)

 

Total non-GAAP adjustments

 

$

122

   

$

102

   

$

20

 
             

Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders

 

$

750

   

$

810

   

$

(60)

 
             

Adjusted EPS attributable to FNF, Inc. common shareholders - diluted

 

$

2.70

         
             

Direct orders opened (000's)

 

1,818

   

1,818

     

Direct orders closed (000's)

 

1,315

   

1,315

     

Fee per file

 

$

2,585

   

$

2,585

     

Actual title claims paid

 

$

223

   

$

223

     
             

Cash flows provided by operations

 

$

943

         

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 

Twelve Months Ended

 

Consolidated

 

Title

 

Corporate and

Other

December 31, 2017

   

Direct title premiums

 

$

2,170

   

$

2,170

   

$

 

Agency title premiums

 

2,723

   

2,723

   

 

Escrow, title related and other fees

 

2,637

   

2,181

   

456

 

Total title and escrow

 

7,530

   

7,074

   

456

 
             

Interest and investment income

 

131

   

131

   

 

Realized gains and losses, net

 

2

   

6

   

(4)

 

Total revenue

 

7,663

   

7,211

   

452

 
             

Personnel costs

 

2,460

   

2,366

   

94

 

Agent commissions

 

2,089

   

2,089

   

 

Other operating expenses

 

1,781

   

1,404

   

377

 

Depreciation and amortization

 

183

   

159

   

24

 

Claim loss expense

 

238

   

238

   

 

Interest expense

 

48

   

   

48

 

Total expenses

 

6,799

   

6,256

   

543

 
             

Pre-tax earnings (loss) from continuing operations

 

$

864

   

$

955

   

$

(91)

 
             

Non-GAAP adjustments before taxes

           

  Realized (gains) and losses, net

 

(2)

   

(6)

   

4

 

  Management fee

 

1

   

1

   

 

  Purchase price amortization

 

113

   

94

   

19

 

  Spin-off costs

 

4

   

   

4

 

  Sales tax contingency

 

3

   

3

   

 

  Other adjustments

 

1

   

1

   

 

 Total non-GAAP adjustments before taxes

 

$

120

   

$

93

   

$

27

 
             

Adjusted pre-tax earnings (loss) from continuing operations

 

$

984

   

$

1,048

   

$

(64)

 

Adjusted pre-tax margin from continuing operations

 

12.8

%

 

14.5

%

 

%

             

Pre-tax earnings (loss) from continuing operations

 

$

864

   

$

955

   

$

(91)

 
             

  Income tax expense (benefit)

 

235

   

274

   

(39)

 

  Earnings from equity investments

 

10

   

10

   

 

  Earnings from discontinued operations, net of tax

 

155

   

   

155

 

  Non-controlling interests

 

23

   

1

   

22

 
             

Net earnings attributable to FNF, Inc. common shareholders

 

$

771

   

$

690

   

$

81

 
             

Net earnings attributable to FNFV Group common shareholders

 

$

109

   

$

   

$

109

 

Net earnings (loss) attributable to FNF Group common shareholders

 

$

662

   

$

690

   

$

(28)

 

Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders

 

$

639

   

$

690

   

$

(51)

 

EPS attributable to FNF, Inc. common shareholders - basic

 

$

2.44

         

EPS attributable to FNF, Inc. common shareholders - diluted

 

$

2.38

         

EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted

 

$

2.30

         

FNF, Inc. weighted average shares - basic

 

271

         

FNF, Inc. weighted average shares - diluted

 

278

         

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

Corporate and

Other

Twelve Months Ended

   

December 31, 2017

   

Net earnings attributable to FNF, Inc. common shareholders

 

$

771

   

$

690

   

$

81

 
             

  Earnings from discontinued operations, net of tax

 

155

   

   

155

 

  Non-controlling interests of discontinued operations

 

23

   

   

23

 
             

Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders

 

$

639

   

$

690

   

$

(51)

 
             

 Total non-GAAP, pre-tax adjustments

 

$

120

   

$

93

   

$

27

 

  Income taxes on non-GAAP adjustments

 

(40)

   

(30)

   

(10)

 

  Noncontrolling interest on non-GAAP adjustments

 

(13)

   

(13)

   

 

  Nondeductible income taxes on litigation and regulatory settlements

 

21

   

21

   

 

  Tax Reform

 

(93)

   

(103)

   

10

 

Total non-GAAP adjustments

 

$

(5)

   

$

(32)

   

$

27

 
             

Adjusted net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders

 

$

634

   

$

658

   

$

(24)

 
             

Adjusted EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted

 

$

2.28

         
             

Direct orders opened (000's)

 

1,942

   

1,942

     

Direct orders closed (000's)

 

1,428

   

1,428

     

Fee per file

 

$

2,346

   

$

2,346

     

Actual title claims paid

 

$

231

   

$

231

     
             

Cash flows provided by operations

 

$

871

         

 

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)

 
   

Q4 2018

 

Q3 2018

 

Q2 2018

 

Q1 2018

 

Q4 2017

 

Q3 2017

 

Q2 2017

 

Q1 2017

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

Total open orders*

 

379

   

456

   

505

   

478

   

445

   

501

   

524

   

472

 

Total open orders per day*

 

6.0

   

7.2

   

7.9

   

7.7

   

7.2

   

8.0

   

8.2

   

7.6

 

Purchase % of open orders

 

67

%

 

69

%

 

71

%

 

66

%

 

60

%

 

62

%

 

66

%

 

64

%

Refinance % of open orders

 

33

%

 

31

%

 

29

%

 

34

%

 

40

%

 

38

%

 

34

%

 

36

%

Total closed orders*

 

301

   

339

   

362

   

313

   

357

   

367

   

370

   

334

 

Total closed orders per day*

 

4.8

   

5.4

   

5.7

   

5.0

   

5.8

   

5.8

   

5.8

   

5.4

 

Purchase % of closed orders

 

69

%

 

71

%

 

71

%

 

62

%

 

61

%

 

65

%

 

67

%

 

58

%

Refinance % of closed orders

 

31

%

 

29

%

 

29

%

 

38

%

 

39

%

 

35

%

 

33

%

 

42

%

                                 

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

Total commercial revenue

 

$

324

   

$

271

   

$

276

   

$

230

   

$

288

   

$

250

   

$

261

   

$

224

 

Total commercial open orders

 

46.0

   

48.9

   

54.2

   

52.8

   

46.3

   

48.3

   

50.8

   

49.4

 

Total commercial closed orders

 

35.2

   

31.2

   

35.1

   

31.5

   

33.2

   

33.4

   

33.6

   

30.0

 
                                 

National commercial revenue

 

$

189

   

$

150

   

$

147

   

$

122

   

$

165

   

$

138

   

$

148

   

$

127

 

National commercial open orders

 

19.1

   

19.8

   

23.0

   

21.1

   

19.0

   

19.9

   

22.0

   

21.1

 

National commercial closed orders

 

13.2

   

12.0

   

12.9

   

11.2

   

12.1

   

13.1

   

13.3

   

11.2

 
                                 

Total Fee Per File

Fee per file

 

$

2,803

   

$

2,623

   

$

2,579

   

$

2,344

   

$

2,425

   

$

2,368

   

$

2,428

   

$

2,148

 

Residential and local commercial fee per file

$

2,275

   

$

2,261

   

$

2,253

   

$

2,027

   

$

2,032

   

$

2,066

   

$

2,104

   

$

1,829

 

Residential fee per file

 

$

1,955

   

$

2,008

   

$

2,012

   

$

1,789

   

$

1,784

   

$

1,856

   

$

1,895

   

$

1,623

 

Total commercial fee per file

 

$

9,200

   

$

8,700

   

$

7,900

   

$

7,300

   

$

8,700

   

$

7,500

   

$

7,800

   

$

7,500

 

National commercial fee per file

 

$

14,400

   

$

12,500

   

$

11,400

   

$

10,900

   

$

13,600

   

$

10,500

   

$

11,100

   

$

11,300

 
                                 

Total Staffing

Total field operations employees

 

10,200

   

10,800

   

11,000

   

10,900

   

11,200

   

11,700

   

11,300

   

11,000

 

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

                                   

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)

 
   

FNF, Inc.
December 31,
2018

 

FNF, Inc.
December 31,
2017

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$

4,806

     

$

4,481

 

Goodwill

   

2,726

     

2,746

 

Title plant

   

405

     

398

 

Total assets

   

9,301

     

9,151

 

Notes payable

   

836

     

759

 

Reserve for title claim losses

   

1,488

     

1,490

 

Secured trust deposits

   

822

     

830

 

Redeemable non-controlling interests

   

344

     

344

 

Non-redeemable non-controlling interests

   

(2)

     

20

 

Total equity and non-controlling interests

   

4,972

     

4,811

 

Total equity attributable to common shareholders

   

4,630

     

4,447

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/fnf-reports-fourth-quarter-2018-diluted-eps-of-0-16-and-adjusted-diluted-eps-of-0-63--pre-tax-title-margin-of-6-1-and-adjusted-pre-tax-title-margin-of-14-4-300795166.html

SOURCE Fidelity National Financial, Inc.

Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com