Fidelity National Financial, Inc.

Fidelity National Financial, Inc.

Press Release

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Apr 27, 2016

FNFV Reports First Quarter 2016 Results With $951 Million Adjusted Book Value of Portfolio Company Investments, or $13.78 Per Share; Repurchased Additional 3.2 Million Shares of Common Stock in First Quarter

JACKSONVILLE, Fla., April 27, 2016 /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-month period ended March 31, 2016

  • Total revenue of $329 million in the first quarter versus $478 million in the first quarter of 2015
  • First quarter adjusted diluted EPS of $0.08 versus adjusted diluted EPS of $0.03 in the first quarter of 2015
  • Adjusted EBITDA of $28 million for the first quarter versus adjusted EBITDA of $40 million for the first quarter of 2015
  • First quarter FNFV free cash flow of $7 million versus $3 million used in the first quarter of 2015
  • $112 million in holding company cash on March 31, 2016
  • Repurchased approximately 3.2 million shares of common stock for nearly $33 million in the first quarter
  • Since the formation of FNFV in July 2014, more than 23.7 million shares of FNFV common stock have been repurchased for a total of approximately $324 million; approximately 26% of the shares of  FNFV common stock distributed in July 2014 have been repurchased

Restaurant Group

  • $290 million in total revenue, adjusted EBITDA of $20 million and adjusted EBITDA margin of 6.8% for the first quarter versus approximately $364 million in total revenue, adjusted EBITDA of $25 million and an adjusted EBITDA margin of 6.9% in the first quarter of 2015; first quarter of 2015 included results of J. Alexander's and Max & Erma's and first quarter 2016 only included a partial quarter from Max & Erma's
  • Same store sales decreased approximately 0.4% in the first quarter, as Ninety Nine and Bakers Square same store sales growth of 3.3% and 3.5%, respectively, was offset by a 2.5% decline at O'Charley's and a 1.7% decline at Village Inn

Ceridian HCM

  • First quarter total revenue of approximately $197 million, a 0.3% increase over the first quarter of 2015 and EBITDA of more than $23 million, a $3 million decline from the first  quarter of 2015, for an EBITDA margin of approximately 12%

Digital Insurance

  • First quarter total revenue of $37 million, a 31% increase over the first quarter of 2015; adjusted EBITDA of more than $9 million, a 38% increase over the first quarter of 2015; first quarter EBITDA margin of nearly 25%

Monetization and Investment Initiatives

  • Announced a $47.4 million additional capital investment in Ceridian, as FNFV was one participant in the transaction that raised a total of $150 million for Ceridian to fund the continued growth of the Dayforce customer base through additional implementation resources, continued cloud-based development and further sales and marketing efforts
  • In January, made an aggregate $22 million investment in the debt of Colt Defense, the iconic American gun producer
  • During the first quarter, purchased an additional 827,000 shares of Del Frisco's Restaurant Group common stock for a total investment of more than $12 million; total cumulative investment of approximately 3 million shares (13% of outstanding shares) for nearly $44 million
  • Repurchased approximately 3.2 million shares of FNFV common stock for nearly $33 million during the first  quarter

"We made one new investment and two incremental investments this quarter, and continued to aggressively repurchase FNFV common stock," said Chairman William P. Foley, II.  "In January, we made an aggregate $22 million investment in the debt of Colt Defense after working on and leading the debt restructuring of that company in 2015.  During January and February, we acquired an additional 827,000 shares of Del Frisco's common stock, bringing our investment to 3 million shares for a total cost of $44 million, or $14.53 per Del Frisco's common share.  In March, we made a $47.4 million additional capital investment in Ceridian to fund the continued growth of the Dayforce product line.  Dayforce is winning in the marketplace and this capital infusion will allow Ceridian to continue to grow the cloud-based revenue of the company even more aggressively.

"We also continued our share repurchase efforts in the first quarter, buying back an additional 3.2 million shares of FNFV common stock for approximately $33 million.  We will continue to focus on the growth and financial performance of our investments and seek to maximize the value of current and future investments for the benefit of our shareholders."

Conference Call

We will host a call with investors and analysts to discuss first quarter 2016 results of FNFV on Thursday, April 28, 2016, 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 April 28, 2016, through May 5, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 391053.

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., Digital Insurance, 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), 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 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

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant Group


FNFV
Corporate and Other

Three Months Ended




March 31, 2016




Operating revenue


$

331



$

293



$

38


Interest and investment income


1





1


Realized gains and losses, net


(3)



(3)




Total revenue


329



290



39









Personnel costs


38



13



25


Other operating expenses


27



21



6


Cost of restaurant revenue


245



245




Depreciation and amortization


15



10



5


Interest expense


3



1



2


Total expenses


328



290



38









Pre-tax earnings from continuing operations


$

1



$



$

1









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net


$

3



$

3



$


  Max & Erma's exit/disposal cost


6



6




  Purchase price amortization


7



3



4


 Total non-GAAP adjustments before taxes


$

16



$

12



$

4









  Adjusted pre-tax earnings from continuing operations


$

17



$

12



$

5


  Adjusted pre-tax margin from continuing operations


5.1

%


4.1

%


12.8

%








Purchase price amortization


(7)



(3)



(4)


Depreciation and amortization


15



10



5


Interest expense


3



1



2









  Adjusted EBITDA


$

28



$

20



$

8


  Adjusted EBITDA margin


8.4

%


6.8

%


20.5

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant Group


FNFV
Corporate and Other

Three Months Ended




March 31, 2016




Pre-tax earnings from continuing operations


$

1



$



$

1









  Income tax benefit


(1)





(1)


  Loss from equity investments


(1)





(1)









Net earnings attributable to FNFV common shareholders


$

1



$



$

1









EPS attributable to FNFV common shareholders - basic


$

0.01



$



$

0.01


EPS attributable to FNFV common shareholders - diluted


$

0.01



$



$

0.01









FNFV weighted average shares - basic


70






FNFV weighted average shares - diluted


72













Net earnings attributable to FNFV common shareholders


$

1



$



$

1









 Total non-GAAP, pre-tax adjustments


$

16



$

12



$

4


  Income taxes on non-GAAP adjustments


(3)



(3)




  Ceridian divestiture (gain) loss


(3)





(3)


  Noncontrolling interest on non-GAAP adjustments


(5)



(5)




Total non-GAAP adjustments


5



4



1









Adjusted net earnings attributable to FNFV common shareholders


$

6



$

4



$

2









Adjusted EPS attributable to FNFV common shareholders - diluted


$

0.08



$

0.06



$

0.02









Cash flows provided by operations:


$

19






Non-GAAP adjustments:







Total non-GAAP adjustments














Adjusted cash flows from operations


19






Capital expenditures


12






Free cash flow


$

7






 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant Group


FNFV
Corporate and Other

Three Months Ended




March 31, 2015




Operating revenue


$

477



$

364



$

113


Interest and investment income


1





1


Total revenue


478



364



114









Personnel costs


38



17



21


Other operating expenses


94



16



78


Cost of restaurant revenue


306



306




Depreciation and amortization


17



13



4


Interest expense


2



2




Total expenses


457



354



103









Pre-tax earnings from continuing operations


$

21



$

10



$

11









Non-GAAP adjustments before taxes







  Purchase price amortization


7



4



3


 Total non-GAAP adjustments before taxes


$

7



$

4



$

3









  Adjusted pre-tax earnings from continuing operations


$

28



$

14



$

14


  Adjusted pre-tax margin from continuing operations


5.9

%


3.8

%


12.3

%








Purchase price amortization


(7)



(4)



(3)


Depreciation and amortization


17



13



4


Interest expense


2



2











  Adjusted EBITDA


$

40



$

25



$

15


  Adjusted EBITDA margin


8.4

%


6.9

%


13.2

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)




Total FNFV


Restaurant Group


FNFV
Corporate and Other

Three Months Ended




March 31, 2015




Pre-tax earnings from continuing operations


$

21



$

10



$

11









  Income tax expense


3





3


(Loss) from equity investments


(3)





(3)


  Non-controlling interests


15



3



12









Net earnings (loss) attributable to FNFV common shareholders


$



$

7



$

(7)









EPS attributable to FNFV common shareholders - basic


$



$

0.08



$

(0.08)


EPS attributable to FNFV common shareholders - diluted


$



$

0.08



$

(0.08)









FNFV weighted average shares - basic


90






FNFV weighted average shares - diluted


92













Net earnings (loss) attributable to FNFV common shareholders


$



$

7



$

(7)









 Total non-GAAP, pre-tax adjustments


$

7



$

4



$

3


  Income taxes on non-GAAP adjustments


(2)



(1)



(1)


  Noncontrolling interest on non-GAAP adjustments


(2)



(2)




Total non-GAAP adjustments


3



1



2









Adjusted net earnings (loss) attributable to FNFV common shareholders


$

3



$

8



$

(5)









Adjusted EPS attributable to FNFV common shareholders - diluted


$

0.03



$

0.09



$

(0.06)









Cash flows provided by operations:


$

7






Non-GAAP adjustments:







Total Non-GAAP adjustments














Adjusted cash flows from operations


7






Capital expenditures


10






Free cash flow


$

(3)






 

 

1FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)




FNFV

March 31, 2016


FNFV

December 31,
2015



(Unaudited)


(Unaudited)

Cash and investment portfolio



$

701




$

735


Goodwill



187




188


Total assets



1,410




1,429


Notes payable



207




200


Non-controlling interest



116




114


Total equity and redeemable non-controlling interests



1,067




1,083


Total equity attributable to common shareholders



951




969


 



FNF Group

March 31, 2016



FNFV

March 31, 2016



Consolidated

March 31, 2016


Consolidated

December 31,
2015



(Unaudited)


(Unaudited)



(Unaudited)




Cash and investment portfolio



$

4,957




$

701





$

5,658




$

5,633


Goodwill



4,579




187





4,766




4,760


Title plant



395








395




395


Total assets



12,533




1,410





13,943




13,931


Notes payable



2,535




207





2,742




2,793


Reserve for title claim losses



1,595








1,595




1,583


Secured trust deposits



840








840




701


Redeemable non-controlling interests



344








344




344


Non-redeemable non-controlling interests



732




116





848




834


Total equity and redeemable non-controlling interests



5,852




1,067





6,919




6,932


Total equity attributable to common shareholders



4,776




951





5,727




5,754


 

 Adjusted Book Value Summary

FNFV

March 31,

2016


FNFV

December 31,
2015


(Unaudited)


(Unaudited)

Ceridian/Fleetcor


$

420




$

363


American Blue Ribbon Holdings


169




169


Del Frisco's Restaurant Group


48




34


Digital Insurance


74




73


Holding Company Cash


112




245


Other


128




85


     Adjusted FNFV Book Value


$

951




$

969


     Outstanding FNFV shares


69.0




72.2


     Adjusted FNFV Book Value per Share


$

13.78




$

13.43


 

 

FIDELITY NATIONAL FINANCIAL, INC.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended


March 31, 2016


Consolidated


Core


FNFV

Direct title premiums

$

422



$

422



$


Agency title premiums

530



530




     Total title premiums

952



952




Escrow, title-related and other fees

779



741



38


     Total title and escrow and other

1,731



1,693



38








Restaurant revenue

293





293


Interest and investment income

30



29



1


Realized gains and losses, net

(6)



(3)



(3)


     Total revenue

2,048



1,719



329








Personnel costs

652



614



38


Other operating expenses

432



405



27


Cost of restaurant revenue

245





245


Agent commissions

402



402




Depreciation and amortization

100



85



15


Title claim loss expense

52



52




Interest expense

34



31



3


     Total expenses

1,917



1,589



328








Earnings from continuing operations before taxes

131



130



1


Income tax expense (benefit)

49



50



(1)


Earnings from continuing operations before equity investments

82



80



2


Earnings (loss) from equity investments

2



3



(1)


Net earnings

84



83



1


Non-controlling interests

10



10




Net earnings attributable to common shareholders

$

74



$

73



$

1








Cash flows provided by operations

92



73



19


 

 

FIDELITY NATIONAL FINANCIAL, INC.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended


March 31, 2015


Consolidated


Core


FNFV

Direct title premiums

$

417



$

417



$


Agency title premiums

441



441




  Total title premiums

858



858




Escrow, title-related and other fees

808



695



113


     Total title and escrow and other

1,666



1,553



113








Restaurant revenue

364





364


Interest and investment income

31



30



1


     Total revenue

2,061



1,583



478








Personnel costs

623



585



38


Other operating expenses

466



372



94


Cost of restaurant revenue

306





306


Agent commissions

333



333




Depreciation and amortization

100



83



17


Title claim loss expense

51



51




Interest expense

31



29



2


     Total expenses

1,910



1,453



457








Earnings from continuing operations before taxes

151



130



21


Income tax expense

50



47



3


Earnings from continuing operations before equity investments

101



83



18


(Loss) earnings from equity investments

(1)



2



(3)


Net earnings

100



85



15


Non-controlling interests

14



(1)



15


Net earnings attributable to common shareholders

$

86



$

86



$








Cash flows provided by operations

42



35



7


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnfv-reports-first-quarter-2016-results-with-951-million-adjusted-book-value-of-portfolio-company-investments-or-1378-per-share-repurchased-additional-32-million-shares-of-common-stock-in-first-quarter-300258650.html

SOURCE Fidelity National Financial, Inc.

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