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United States
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
April 26, 2006

Fidelity National Title Group, Inc.

(Exact name of Registrant as Specified in its Charter)

001-32630
(Commission File Number)

     
Delaware   16-1725106
(State or Other Jurisdiction of Incorporation or Organization)   (IRS Employer Identification Number)

601 Riverside Avenue
Jacksonville, Florida 32204

(Addresses of Principal Executive Offices)

(904) 854-8100
(Registrant’s Telephone Number, Including Area Code)


(Former Name or Former Address, if Changed Since Last Report)

     
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
   
o
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
   
o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
   
o
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
   
o
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 


TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1


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Item 2.02. Results of Operations and Financial Condition

On April 26, 2006, Fidelity National Title Group, Inc. issued an earnings release announcing its financial results for the three months ended March 31, 2006. The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

A copy of the earnings release is attached as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

     
Exhibit
  Description
99.1
  Press release announcing Fidelity National Title Group, Inc. Reports First Quarter 2006 EPS of $0.46.

 


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

         
  Fidelity National Financial, Inc.
 
 
Date: May 2, 2006  By:   /s/ Anthony J. Park  
    Name: Anthony J. Park
Title: Chief Financial Officer
 
       
 

 


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EXHIBIT INDEX

     
Exhibit
  Description
99.1
  Press release announcing Fidelity National Title Group, Inc. Reports First Quarter 2006 EPS of $0.46.

 

exv99w1
 

EXHIBIT 99.1
(Fidelity National Title Group Press Release)
Fidelity National Title Group, Inc. Reports First Quarter 2006 EPS of $0.46
Jacksonville, Fla. — (April 26, 2006) — Fidelity National Title Group, Inc. (NYSE: FNT), the nation’s largest title insurance company and a majority-owned, publicly traded subsidiary of Fidelity National Financial, Inc. (NYSE: FNF), today reported operating results for the three-month period ended March 31, 2006.
         
    1st Quarter 2006   1st Quarter 2005
Total revenue
  $1.393 billion   $1.265 billion
Pre-tax margin
  8.8%   10.4%
Net earnings
  $79.1 million   $82.3 million
Net earnings per share — diluted
  $0.46 per diluted share   $0.47 per diluted share
Cash flow from operations
  $80.2 million   $62.1 million
Return on average equity
  12.7%   12.2%
     “This quarter was a successful beginning to our first full year as a publicly traded company,” said Chief Executive Officer Raymond R. Quirk. “We experienced a normal seasonal slow start to the year in January and built momentum in open orders per day in both February and March. Our earnings for the month of March were significantly larger than our combined earnings for the months of January and February and the increasing trend in open order volumes throughout the first quarter provides momentum as we enter the second quarter. This increasing open order volume and our continued focus on controlling costs and managing the optimal size of each of our operations will allow us to generate higher margins and earnings in the second quarter.”

 


 

     The following table depicts monthly direct orders opened and closed in the title and escrow business for the first quarter of both 2006 and 2005:
                         
Month   Direct Orders Opened     Direct Orders Closed     Closing %  
January 2006
    215,000       134,200       62 %
February 2006
    213,200       133,500       63 %
March 2006
    255,600       168,600       66 %
 
                 
First Quarter 2006
    683,800       436,300       64 %
 
                 
                         
Month   Direct Orders Opened     Direct Orders Closed     Closing %  
January 2005
    226,000       148,400       66 %
February 2005
    241,600       145,500       60 %
March 2005
    280,100       194,600       69 %
 
                 
First Quarter 2005
    747,700       488,500       65 %
 
                 
     The following table depicts monthly commercial direct orders opened and closed in the national commercial divisions for the first quarter of both 2006 and 2005:
                                 
    Open Commercial     Closed Commercial     Commercial Revenue     Commercial Fee Per  
    Orders     Orders     (In thousands)     File  
1st Quarter 2006
    14,345       8,147     $ 65,263     $ 8,011  
1st Quarter 2005
    14,459       8,669     $ 51,472     $ 5,937  
     Fidelity National Title Group, Inc. (NYSE: FNT) is the nation’s largest title insurance company. The Company’s title insurance underwriters — Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title — issue approximately 31 percent of all title insurance policies in the United States. Through its direct operations and agencies, the Company

 


 

provides title insurance in 49 states, the District of Columbia, Guam, Mexico, Puerto Rico, the U.S. Virgin Islands and Canada. In 2005, FNT also acquired Service Link, a leading provider of title and closing services to major financial institutions and lenders, including six of the top 10 lending institutions in the United States ranked by loan origination volume. More information about Fidelity National Title Group can be found at www.fntg.com.
     FNT is a majority-owned subsidiary of Fidelity National Financial Inc. (NYSE: FNF), number 248 on the Fortune 500 and a provider of products and outsourced services and solutions to a variety of industries. More information about FNF can be found at www.fnf.com.
     This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, 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 economic performance 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; 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; compliance with extensive regulations; regulatory investigations of the title insurance industry; our business concentration in the State of California, the source of over 20% of our title insurance premiums; our dependence on distributions from our title insurance underwriters as our main source of cash flow; competition from other title insurance companies; FNF’s need to maintain more than 80% ownership of our common stock for various tax purposes; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and

 


 

other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.
SOURCE: Fidelity National Title Group, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, Fidelity
National Financial, Inc., 904-854-8120, dkmurphy@fnf.com

 


 

FIDELITY NATIONAL TITLE GROUP, INC.
SUMMARY OF EARNINGS
(In thousands, except per share amounts and order information)
                 
    Three months ended  
    March 31,  
    2006     2005  
    (Unaudited)  
Direct title premiums
  $ 447,769     $ 456,205  
Agency title premiums
    628,420       532,513  
 
           
Total title premiums
    1,076,189       988,718  
Escrow and other title-related fees
    254,059       243,137  
 
           
Total title and escrow
    1,330,248       1,231,855  
 
               
Interest and investment income
    38,012       20,854  
Realized gains and losses
    14,506       3,436  
Other
    10,498       9,075  
 
           
 
               
Total revenue
    1,393,264       1,265,220  
 
               
Personnel costs
    452,435       424,660  
Other operating expenses
    210,893       209,735  
Agent commissions
    488,368       409,901  
Depreciation and amortization
    26,237       24,866  
Claim loss expense
    80,721       64,226  
Interest expense
    11,326       303  
 
           
 
               
Total expenses
    1,269,980       1,133,691  
 
               
Earnings before income taxes
    123,284       131,529  
Income tax expense
    43,766       48,863  
Minority interest
    416       347  
 
           
 
               
Net earnings
  $ 79,102     $ 82,319  
 
           
 
               
Net earnings per share — basic
  $ 0.46     $ 0.47  
 
           
Net earnings per share — diluted
  $ 0.46     $ 0.47  
 
           
 
               
Weighted average shares — basic (1)
    173,473       173,520  
 
           
Weighted average shares — diluted (1)
    173,654       173,520  
 
           
 
               
Direct operations orders opened
    683,800       747,700  
Direct operations orders closed
    436,300       488,500  
Fee Per File
  $ 1,532     $ 1,387  
(1) For the 2005 period, net earnings per share is a pro forma presentation based on the distribution of 173,520 shares on October 17, 2005

 


 

FIDELITY NATIONAL TITLE GROUP, INC.
SUMMARY BALANCE SHEET INFORMATION
(In thousands, except per share amounts)
                 
    March 31,     December 31,  
    2006     2005  
    Unaudited          
Cash and investment portfolio
  $ 3,785,375     $ 3,762,895  
Goodwill
    1,051,514       1,051,526  
Title plants
    312,491       308,675  
Total assets
    5,897,476       5,900,533  
Notes payable
    599,094       603,262  
Reserve for claim losses
    1,090,095       1,063,857  
Secured trust deposits
    839,117       882,602  
Total stockholders’ equity
    2,505,728       2,480,037  
Book value per share
    14.38       14.23