FNF Fidelity National Financial Inc

JACKSONVILLE, Fla., Oct. 26 /PRNewswire-FirstCall/ -- Fidelity National Title Group, Inc. (NYSE:FNT), the nation's largest title insurance company and a majority-owned subsidiary of Fidelity National Financial, Inc. (NYSE:FNF), today reported operating results for the three-month and nine-month periods ended September 30, 2005. 3rd Quarter 2005 3rd Quarter 2004 Net Earnings Net Earnings $169.7 million $135.9 million $0.98 per diluted share $0.78 per diluted share Nine Months Ended Nine Months Ended September 30, 2005 September 30, 2004 Net Earnings Net Earnings $412.6 million $413.2 million $2.38 per diluted share $2.38 per diluted share - Total revenue for the third quarter of 2005 was $1.78 billion, compared with $1.56 billion for the third quarter of 2004 - Total title and escrow revenue was $1.73 billion for the third quarter of 2005 versus $1.53 billion in the third quarter of 2004 - Direct title premiums were $626 million for the third quarter of 2005 compared with direct title premiums of $504 million for the third quarter of 2004 - Escrow and other title related fees were $325 million for the third quarter of 2005 versus $266 million for the third quarter of 2004 - Agency title premiums were $779 million for the third quarter of 2005 compared with agency title premiums of $762 million for the third quarter of 2004 (In thousands) 3rd Quarter 2005 3rd Quarter 2004 Agency Title Premiums $779,117 $761,712 Agent Commissions 612,139 595,523 Net 166,978 166,189 Agent Commission % 78.6% 78.2% - The total provision for claim losses was $104 million for the third quarter of 2005 compared with $69 million for the third quarter of 2004 - Interest expense for the third quarter of 2005 was $5 million compared with $1 million for the third quarter of 2004 - Cash flow from operations was $204 million for the third quarter of 2005 and $595 million for the first nine months of 2005 "This was a great financial quarter as we begin operating as a publicly traded company," said Chief Executive Officer Raymond R.Quirk. "We produced $0.98 in earnings per share and more than $200 million in cash flow from operations. Order volumes were solid and we were able to make some necessary headcount reductions late in the quarter as we enter the normally seasonally slower fourth quarter. We will remain focused on staffing and productivity in order to maximize the margins we earn in the business." The following table depicts monthly direct orders opened and closed in the title and escrow business for the third quarter of both 2005 and 2004: Month Direct Orders Opened Direct Orders Closed Closing % July 2005 261,200 192,000 74% August 2005 295,800 218,900 74% September 2005 264,700 192,000 73% Third Quarter 2005 821,700 602,900 73% Month Direct Orders Opened Direct Orders Closed Closing % July 2004 246,600 182,900 74% August 2004 256,100 182,100 71% September 2004 253,800 177,200 70% Third Quarter 2004 756,500 542,200 72% The following table depicts monthly commercial direct orders opened and closed in the title and escrow business for the third quarter of both 2005 and 2004: Open Closed Commercial Commercial Commercial Revenue Commercial Orders (In thousands) Fee Per File Commercial 3rd Quarter 2005 15,100 9,000 $73,200 $8,100 3rd Quarter 2004 14,000 9,100 $58,800 $6,400 Fidelity National Title Group, Inc. 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 http://www.fntg.com/. FNT is a majority-owned subsidiary of Fidelity National Financial Inc., number 261 on the Fortune 500 and a provider of products and outsourced services and solutions to financial institutions and the real estate industry. More information about FNF can be found at http://www.fnf.com/. This press release contains statements related to future events and expectations and, as such, constitutes forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be different from those expressed or implied above. The Company expressly disclaims any duty to update or revise forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition and other risks detailed from time to time in the "Management's Discussion and Analysis" section of the Company's Form 10-K and other reports and filings with the Securities and Exchange Commission. FIDELITY NATIONAL TITLE GROUP, INC. SUMMARY OF EARNINGS (In thousands, except per share amounts and order information) Three months ended Nine months ended September 30, September 30, 2005 2004 2005 2004 (Unaudited) (Unaudited) Direct title premiums $626,178 $504,356 $1,643,574 $1,491,375 Agency title premiums 779,117 761,712 2,083,317 2,110,142 Total title premiums 1,405,295 1,266,068 3,726,891 3,601,517 Escrow and other title-related fees 324,910 265,891 868,375 779,910 Total title and escrow 1,730,205 1,531,959 4,595,266 4,381,427 Interest and investment income 31,636 17,386 77,066 45,549 Realized gains and losses 3,583 551 25,505 17,595 Other 11,461 12,734 31,481 34,307 Total revenue 1,776,885 1,562,630 4,729,318 4,478,878 Personnel costs 511,325 429,808 1,415,928 1,267,871 Other operating expenses 248,751 227,119 699,844 640,290 Agent commissions 612,139 595,523 1,617,260 1,651,066 Depreciation and amortization 23,818 24,907 73,207 69,100 Claim loss expense 103,612 69,495 254,289 194,505 Interest expense 4,669 830 5,393 3,086 Total expenses 1,504,314 1,347,682 4,065,921 3,825,918 Earnings before income taxes 272,571 214,948 663,397 652,960 Income tax expense 102,137 78,671 248,774 238,983 Minority interest 700 354 1,992 809 Net earnings $169,734 $135,923 $412,631 $413,168 Net earnings per share - basic $0.98 $0.78 $2.38 $2.38 Net earnings per share - diluted $0.98 $0.78 $2.38 $2.38 Weighted average shares - basic (1) 173,520 173,520 173,520 173,520 Weighted average shares - diluted (1) 173,520 173,520 173,520 173,520 Direct operations orders opened 821,700 756,500 2,398,900 2,445,700 Direct operations orders closed 602,900 542,200 1,651,800 1,708,100 Fee Per File $1,508 $1,397 $1,469 $1,301 (1) 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) September 30, December 31, 2005 2004 Unaudited Unaudited Cash and investment portfolio $3,873,134 $3,087,903 Goodwill 1,074,017 959,600 Capitalized software 69,066 77,322 Other intangible assets 49,519 38,797 Total assets 6,042,067 5,074,091 Notes payable 657,076 22,390 Reserve for claim losses 1,025,718 980,746 Secured trust deposits 1,004,122 735,295 Total stockholders' equity 2,396,669 2,676,756 Book value per share 13.81 15.43 DATASOURCE: Fidelity National Title Group, Inc. CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, 904-854-8120, Web site: http://www.fntg.com/ http://www.fnf.com/

Copyright