JACKSONVILLE, Fla., Feb. 3 /PRNewswire-FirstCall/ -- Fidelity
National Financial, Inc. (NYSE:FNF), a leading provider of title
insurance, mortgage services, specialty insurance, claims
management services and information services, today reported
operating results for the three-month and twelve-month periods
ended December 31, 2009. Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008 ------------------
------------------ Total revenue $1.46 billion $998.8 million Net
earnings (loss) attributable to common shareholders $69.3 million
($14.9 million) Net earnings (loss) per diluted share attributable
to common shareholders $0.30 ($0.07) Cash flow from operations
$12.6 million $60.5 million Twelve Months Ended Twelve Months Ended
December 31, 2009 December 31, 2008 -------------------
------------------- Total revenue $5.83 billion $4.25 billion Net
earnings (loss) attributable to common shareholders $222.3 million
($179.0 million) Net earnings (loss) per diluted share attributable
to common shareholders $0.97 ($0.85) Cash flow from operations
$380.3 million $4.6 million The following are summary financial and
operational results for the operating segments of FNF for the
three-month and twelve-month periods ended December 31, 2009 and
2008: Fidelity National Title Group ("FNT") Three Months Ended
Three Months Ended December 31, 2009 December 31, 2008
------------------ ------------------ Total revenue $1.34 billion
$896.2 million Pre-tax earnings (loss) $109.6 million ($9.7
million) Pre-tax margin 8.2% N/A Twelve Months Ended Twelve Months
Ended December 31, 2009 December 31, 2008 -------------------
-------------------- Total revenue $5.39 billion $3.82 billion
Pre-tax earnings (loss) $370.0 million ($231.0 million) Pre-tax
margin 6.9% N/A Month Direct Orders Opened Direct Orders Closed
----- -------------------- -------------------- October 2009
207,300 133,700 November 2009 172,400 127,100 December 2009 170,900
139,800 ------- ------- Fourth Quarter 2009 550,600 400,600 =======
======= Month Direct Orders Opened Direct Orders Closed -----
-------------------- -------------------- October 2008 122,700
89,300 November 2008 101,400 66,800 December 2008 204,100 89,200
------- ------ Fourth Quarter 2008 428,200 245,300 ======= =======
Open Closed Commercial Commercial Commercial Revenue Commercial Fee
Orders Orders (In thousands) Per File ---------- ----------
-------------- --------------- 4th Quarter 2009 19,200 13,700
$62,700 $4,600 4th Quarter 2008 13,600 7,900 $38,300 $4,800 - The
preceding table only includes commercial activity from FNF's
commercial offices in the national commercial division and does not
attempt to capture potential commercial activity in our local
offices. Specialty Insurance Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008 ------------------
------------------ Total revenue $92.8 million $97.3 million
Pre-tax earnings $8.7 million $18.2 million Pre-tax margin 9.4%
18.7% Twelve Months Ended Twelve Months Ended December 31, 2009
December 31, 2008 ------------------- ------------------- Total
revenue $380.3 million $383.3 million Pre-tax earnings $43.6
million $35.0 million Pre-tax margin 11.5% 9.1% "Despite operating
against a difficult economic backdrop, 2009 was a year of
significant accomplishments that has Fidelity National Financial
well positioned as we enter 2010," said Chairman William P. Foley,
II. "We generated total revenue of $5.8 billion, pre-tax profits of
$345 million, net earnings of $222 million and cash flow from
operations of $380 million. All of these were significant increases
over our 2008 results." "The December 2008 acquisition of Lawyers
Title and Commonwealth Title was fully integrated during the first
half of 2009. From January through March, we aggressively removed
costs from those operations and were able to return them to
operational profitability by the month of March. The integration of
Lawyers and Commonwealth was completed during the second quarter,
with an overall total cost reduction of nearly $265 million. We
eliminated approximately 2,300 positions, more than 40% of the
employees transferred at closing, and more than 240 offices as part
of the aggressive integration. These underwriters are fully
integrated into the FNF family and we look forward to their
continued significant contribution to our market-leading title
insurance business in 2010 and beyond." "In April, we were
successful in issuing 18.2 million shares of our common stock for
approximately $331 million in proceeds to further strengthen our
balance sheet. Those proceeds were primarily used to reduce the
outstanding balance on our credit facility, repurchase our existing
public debt and to make a capital infusion into Lawyers Title to
bolster that underwriter's balance sheet. Throughout 2009, we
reduced our outstanding debt by nearly $490 million, while also
growing our equity by almost $460 million. As a result, our debt to
capital ratio ended the year at 21%, after beginning 2009 at more
than 32% and book value per share increased by more than $1.10, or
8%, from the beginning of 2009, ending at $14.41 on December 31,
2009." "We are proud of our accomplishments in 2009, but we are
never satisfied. We will continue to manage our title business as
we always have, with continued dedication to our weekly operating
metrics as we seek to maximize profitability in any market
environment. As always, we remain committed to our ultimate goal of
continuing to create value for our shareholders." Fidelity National
Financial, Inc. (NYSE:FNF), is a leading provider of title
insurance, mortgage services, specialty insurance, claims
management services and information services. FNF is the nation's
largest title insurance company through its title insurance
underwriters - Fidelity National Title, Chicago Title, Commonwealth
Land Title, Lawyers Title, Ticor Title, Security Union Title and
Alamo Title - that collectively issue more title insurance policies
than any other title company in the United States. FNF also
provides flood insurance, personal lines insurance and home
warranty insurance through its specialty insurance business. FNF
also is a leading provider of outsourced claims management services
to large corporate and public sector entities through its
minority-owned subsidiary, Sedgwick CMS. FNF is also a leading
information services company in the human resource, retail and
transportation markets through another minority-owned subsidiary,
Ceridian Corporation. More information about FNF can be found at
http://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; 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 operating subsidiaries as a source of cash flow; significant
competition that our operating subsidiaries face; compliance with
extensive government regulation of our operating subsidiaries; 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. FIDELITY NATIONAL FINANCIAL, INC. SUMMARY OF EARNINGS
(In thousands, except per share amounts and order information)
Three months ended Twelve months ended December 31, December 31,
--------- --------- 2009 2008 2009 2008 ---- ---- ---- ----
(Unaudited) (Unaudited) Direct title premiums $353,250 $227,896
$1,475,303 $1,140,266 Agency title premiums 638,187 383,623
2,452,253 1,554,743 ------- ------- --------- --------- Total title
premiums 991,437 611,519 3,927,556 2,695,009 Escrow, title-related
and other fees 323,464 268,007 1,352,876 1,071,277 ------- -------
--------- --------- Total title and escrow 1,314,901 879,526
5,280,432 3,766,286 Specialty insurance 89,470 94,502 366,036
373,392 Interest and investment income 41,548 31,401 154,456
133,964 Realized gains and losses 9,368 (6,585) 27,452 (22,453)
----- ------ ------ ------- Total revenue 1,455,287 998,844
5,828,376 4,251,189 Personnel costs 389,384 282,520 1,649,775
1,321,964 Other operating expenses 319,409 305,110 1,343,452
1,179,853 Agent commissions 505,272 306,352 1,951,732 1,218,044
Depreciation and amortization 24,555 28,407 109,206 122,100 Claim
loss expense 102,343 82,808 392,577 630,404 Interest expense 8,320
14,633 36,675 58,580 ----- ------ ------ ------ Total expenses
1,349,283 1,019,830 5,483,417 4,530,945 Earnings (loss) from
continuing operations before taxes 106,004 (20,986) 344,959
(279,756) Income tax expense 38,759 (12,962) 106,839 (119,944)
------ ------- ------- -------- Earnings (loss) from continuing
operations before equity investments 67,245 (8,024) 238,120
(159,812) Earnings (loss) from equity investments 2,291 (5,990)
(11,704) (13,375) ----- ------ ------- ------- Net earnings (loss)
from continuing operations 69,536 (14,014) 226,416 (173,187)
Discontinued operations, net of tax -- (993) (1,881) (10,039) ---
---- ------ ------- Net earnings (loss) 69,536 (15,007) 224,535
(183,226) Non-controlling interest earnings (loss) 214 (123) 2,224
(4,210) --- ---- ----- ------ Net earnings (loss) attributable to
common shareholders $69,322 ($14,884) $222,311 ($179,016) =======
======== ======== ========= Earnings per share: Net earnings (loss)
from continuing operations attributable to common shareholders -
basic $0.30 ($0.07) $0.99 ($0.85) ===== ====== ===== ====== Net
earnings (loss) from continuing operations attributable to common
shareholders - diluted $0.30 ($0.07) $0.97 ($0.85) ===== ======
===== ====== Weighted average shares - basic 228,502 209,283
224,674 209,974 ======= ======= ======= ======= Weighted average
shares - diluted 231,676 209,283 228,485 209,974 ======= =======
======= ======= Direct operations orders opened 550,600 428,200
2,611,400 1,860,400 Direct operations orders closed 400,600 245,300
1,792,000 1,121,200 Fee per file $1,368 $1,455 $1,248 $1,503 Actual
title claims paid $148,864 $50,331 $388,101 $278,162 FIDELITY
NATIONAL FINANCIAL, INC. SEGMENT INFORMATION (In thousands)
(Unaudited) Specialty Corporate Three Months Ended Consolidated FNT
Insurance and Other December 31, 2009 ------------ --- ---------
--------- Gross operating revenue $1,404,371 $1,296,225 $89,470
$18,676 Interest and investment income 41,548 33,391 2,892 5,265
Realized gains and losses 9,368 9,043 470 (145) ----- ----- ---
---- Total revenue 1,455,287 1,338,659 92,832 23,796 Personnel
costs 389,384 366,075 11,197 12,112 Other operating expenses
319,409 267,330 37,389 14,690 Agent commissions 505,272 505,272 --
-- Depreciation and amortization 24,555 22,277 1,194 1,084 Claim
loss expense 102,343 67,983 34,360 -- Interest expense 8,320 104 3
8,213 ----- --- --- ----- Total expenses 1,349,283 1,229,041 84,143
36,099 Pretax earnings from continuing operations 106,004 109,618
8,689 (12,303) Pretax margin 7.3% 8.2% 9.4% -- Open orders 550,600
550,600 -- -- Closed orders 400,600 400,600 -- -- Specialty
Corporate Three Months Ended Consolidated FNT Insurance and Other
December 31, 2008 ------------ --- ---------- --------- Gross
operating revenue $974,028 $872,614 $94,502 $6,912 Interest and
investment income 31,401 28,978 2,662 (239) Realized gains and
losses (6,585) (5,366) 102 (1,321) ------ ------ --- ------ Total
revenue 998,844 896,226 97,266 5,352 Personnel costs 282,520
266,865 10,775 4,880 Other operating expenses 305,110 252,555
37,088 15,467 Agent commissions 306,352 306,352 -- -- Depreciation
and amortization 28,407 27,319 671 417 Claim loss expense 82,808
52,251 30,557 -- Interest expense 14,633 581 24 14,028 ------ ---
--- ------ Total expenses 1,019,830 905,923 79,115 34,792 Pretax
earnings (loss) from continuing operations (20,986) (9,697) 18,151
(29,440) Pretax margin -- -- 18.7% -- Open orders 428,200 428,200
-- -- Closed orders 245,300 245,300 -- -- FIDELITY NATIONAL
FINANCIAL, INC. SEGMENT INFORMATION (In thousands) (Unaudited)
Specialty Corporate Twelve Months Ended Consolidated FNT Insurance
and Other December 31, 2009 ------------ --- --------- ---------
Gross operating revenue $5,646,468 $5,228,194 $366,036 $52,238
Interest and investment income 154,456 138,339 12,293 3,824
Realized gains and losses 27,452 27,052 1,926 (1,526) ------ ------
----- ------ Total revenue 5,828,376 5,393,585 380,255 54,536
Personnel costs 1,649,775 1,565,295 45,349 39,131 Other operating
expenses 1,343,452 1,140,669 158,277 44,506 Agent commissions
1,951,732 1,951,732 -- -- Depreciation and amortization 109,206
100,476 5,118 3,612 Claim loss expense 392,577 264,674 127,903 --
Interest expense 36,675 753 30 35,892 ------ --- --- ------ Total
expenses 5,483,417 5,023,599 336,677 123,141 Pretax earnings from
continuing operations 344,959 369,986 43,578 (68,605) Pretax margin
5.9% 6.9% 11.5% -- Open orders 2,611,400 2,611,400 -- -- Closed
orders 1,792,000 1,792,000 -- -- Specialty Corporate Twelve Months
Ended Consolidated FNT Insurance and Other December 31, 2008
------------ --- ---------- --------- Gross operating revenue
$4,139,678 $3,729,259 $373,392 $37,027 Interest and investment
income 133,964 120,157 12,929 878 Realized gains and losses
(22,453) (32,889) (3,007) 13,443 ------- ------- ------ ------
Total revenue 4,251,189 3,816,527 383,314 51,348 Personnel costs
1,321,964 1,253,563 45,228 23,173 Other operating expenses
1,179,853 964,282 158,269 57,302 Agent commissions 1,218,044
1,218,044 -- -- Depreciation and amortization 122,100 114,989 4,896
2,215 Claim loss expense 630,404 490,952 139,452 -- Interest
expense 58,580 5,657 487 52,436 ------ ----- --- ------ Total
expenses 4,530,945 4,047,487 348,332 135,126 Pretax earnings (loss)
from continuing operations (279,756) (230,960) 34,982 (83,778)
Pretax margin -- -- 9.1% -- Open orders 1,860,400 1,860,400 -- --
Closed orders 1,121,200 1,121,200 -- -- FIDELITY NATIONAL
FINANCIAL, INC. SUMMARY BALANCE SHEET INFORMATION (In thousands,
except per share amounts) December 31, December 31, 2009 2008
----------- ------------ (Unaudited) Cash and investment portfolio
$4,887,411 $4,691,790 Goodwill 1,455,237 1,581,658 Title plant
407,495 431,591 Total assets 7,942,071 8,368,240 Notes payable
861,878 1,350,849 Reserve for claim losses 2,541,420 2,738,625
Secured trust deposits 373,339 474,073 Total equity 3,315,749
2,856,772 Book value per share $14.41 $13.29 DATASOURCE: Fidelity
National Financial, Inc. CONTACT: Daniel Kennedy Murphy, Senior
Vice President and Treasurer, +1-904-854-8120, Web Site:
http://www.fnf.com/
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