JACKSONVILLE, Fla.,
April 28, 2011 /PRNewswire/ --
Fidelity National Financial, Inc. (NYSE: FNF), a leading provider
of title insurance, mortgage services, specialty insurance and
information services, today reported operating results for the
three-month period ended March 31,
2011.
|
|
|
Three Months
Ended
March 31,
2011
|
Three Months
Ended
March 31,
2010
|
|
Total revenue
|
$1.21
billion
|
$1.21
billion
|
|
Net earnings attributable to
common shareholders
|
$42.5
million
|
$16.5
million
|
|
Net earnings per diluted share
attributable to common shareholders
|
$0.19
|
$0.07
|
|
Cash flow used in
operations
|
$21.0
million
|
$88.1
million
|
|
|
|
|
|
|
The following are summary financial and operational results for
the operating segments of FNF for the three-month periods ended
March 31, 2011 and 2010:
Fidelity National Title Group
("FNT")
|
|
|
Three Months
Ended
March 31,
2011
|
Three Months
Ended
March 31,
2010
|
|
Total revenue
|
$1.10
billion
|
$1.08
billion
|
|
Pre-tax earnings
|
$102.7
million
|
$24.0
million
|
|
Pre-tax margin
|
9.3%
|
2.2%
|
|
|
|
|
|
Month
|
Direct
Orders Opened
|
Direct
Orders Closed
|
|
January 2011
|
154,300
|
127,400
|
|
February 2011
|
143,600
|
111,800
|
|
March 2011
|
190,200
|
131,600
|
|
First Quarter
2011
|
488,100
|
370,800
|
|
|
|
|
|
January 2010
|
146,900
|
104,300
|
|
February 2010
|
161,900
|
101,000
|
|
March 2010
|
202,300
|
127,200
|
|
First Quarter
2010
|
511,100
|
332,500
|
|
|
|
|
|
|
|
|
|
Open
Commercial
Orders
|
Closed
Commercial
Orders
|
Commercial
Revenue
(In
millions)
|
Commercial
Fee Per
File
|
|
1st Quarter 2011
|
18,500
|
10,600
|
65.7
|
6,200
|
|
1st Quarter 2010
|
17,200
|
9,800
|
48.6
|
5,000
|
|
|
|
|
|
|
|
|
- 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
March 31,
2011
|
Three Months
Ended
March 31,
2010
|
|
Total revenue
|
$96.1
million
|
$89.3
million
|
|
Pre-tax earnings
|
$8.9
million
|
$6.2
million
|
|
Pre-tax margin
|
9.3%
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
"This was our strongest first quarter in a number of years, as
our direct operations benefited from strong refinance closings
early in the quarter and consistent closings throughout February
and March," said Chairman William P. Foley,
II. "Open order counts were relatively stable
throughout the quarter, although they showed some seasonal strength
in the month of March, increasing more than 8% over the average for
January and February. The commercial business continued to be
robust, as commercial revenue grew by 35% over the first quarter of
2010. This quarter shows that with generally steady order
volumes, albeit at low historic levels, we can generate the 8% to
10% margins we target in difficult markets through our focus on
strong expense management.
"During the quarter, we eliminated more than 600 positions in
our title operations and made significant progress on our
previously stated $50 million cost
savings project, identifying nearly $55
million in run-rate cost savings. Our quarterly
results also included one-time expenses of $9 million, or $0.04 per diluted share, representing our portion
of the costs related to Remy's debt restructuring in late 2010 and
early 2011. Additionally, Remy also filed an S-1 Registration
Statement in March to begin the process of selling common stock and
becoming a publicly traded company. Overall, this was a very
positive start to what most experts have predicted will be a
difficult year in the mortgage and real estate markets. We
believe we have our company positioned for strong performance for
the remainder of 2011."
Conference Call
FNF will host a call with investors and analysts to discuss
first quarter 2011 results on Friday, April
29, 2011, beginning at 11:00 a.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 1:00 p.m. Eastern
time on April 29, 2011,
through May 6, 2011, by dialing
800-475-6701 (USA) or 320-365-3844
(International). The access code will be 199329.
About FNF
Fidelity National Financial, Inc. (NYSE:FNF), is a leading
provider of title insurance, mortgage services, specialty insurance
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 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 and is a leading provider of global
human resources, payroll, benefits and payment solutions through a
minority-owned subsidiary, Ceridian Corporation. More
information about FNF can be found at www.fnf.com.
Forward-Looking Statements
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; 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
millions, except per share amounts and fee per
file)
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
Direct title premiums
|
$322.9
|
|
$281.4
|
|
Agency title premiums
|
423.3
|
|
483.8
|
|
Total title
premiums
|
746.2
|
|
765.2
|
|
Escrow, title-related and other
fees
|
313.2
|
|
294.5
|
|
Total title and
escrow
|
1,059.4
|
|
1,059.7
|
|
|
|
|
|
|
Specialty insurance
|
92.8
|
|
86.3
|
|
Interest and investment
income
|
36.1
|
|
38.8
|
|
Realized gains and
losses
|
19.9
|
|
28.6
|
|
Total revenue
|
1,208.2
|
|
1,213.4
|
|
|
|
|
|
|
Personnel costs
|
391.3
|
|
370.7
|
|
Other operating
expenses
|
285.4
|
|
299.0
|
|
Agent commissions
|
327.7
|
|
384.4
|
|
Depreciation and
amortization
|
20.5
|
|
23.0
|
|
Claim loss expense
|
86.7
|
|
86.3
|
|
Interest expense
|
14.3
|
|
7.1
|
|
Total expenses
|
1,125.9
|
|
1,170.5
|
|
|
|
|
|
|
Earnings before income
taxes
|
82.3
|
|
42.9
|
|
Income tax
expense
|
29.6
|
|
13.3
|
|
Earnings before equity
investments
|
52.7
|
|
29.6
|
|
Loss from equity
investments
|
(8.6)
|
|
(10.7)
|
|
Net earnings
|
44.1
|
|
18.9
|
|
Non-controlling
interests
|
1.6
|
|
2.4
|
|
Net earnings attributable
to common shareholders
|
$42.5
|
|
$16.5
|
|
Earnings per
share
|
|
|
|
|
Net earnings
attributable to common shareholders - basic
|
$0.19
|
|
$0.07
|
|
Net earnings
attributable to common shareholders - diluted
|
$0.19
|
|
$0.07
|
|
|
|
|
|
|
Weighted average
shares – basic
|
220.7
|
|
227.5
|
|
Weighted average
shares – diluted
|
223.6
|
|
230.3
|
|
Direct operations orders
opened
|
488.1
|
|
511.1
|
|
Direct operations orders
closed
|
370.8
|
|
332.5
|
|
Fee per file
|
$1,371
|
|
$1,339
|
|
Actual title claims
paid
|
$88.8
|
|
$95.5
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
FIRST
QUARTER SEGMENT INFORMATION
(In
millions, except order information in 000's)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
2011
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$1,152.2
|
$1,050.9
|
$92.8
|
$8.5
|
|
|
|
|
|
|
|
Interest and investment
income
|
36.1
|
33.2
|
2.9
|
--
|
|
Realized gains and
losses
|
19.9
|
18.4
|
0.4
|
1.1
|
|
Total revenue
|
1,208.2
|
1,102.5
|
96.1
|
9.6
|
|
|
|
|
|
|
|
Personnel costs
|
391.3
|
365.4
|
11.9
|
14.0
|
|
Other operating
expenses
|
285.4
|
236.4
|
38.3
|
10.7
|
|
Agent commissions
|
327.7
|
327.7
|
--
|
--
|
|
Depreciation and
amortization
|
20.5
|
18.7
|
1.1
|
0.7
|
|
Claim loss expense
|
86.7
|
50.8
|
35.9
|
--
|
|
Interest expense
|
14.3
|
0.8
|
--
|
13.5
|
|
Total expenses
|
1,125.9
|
999.8
|
87.2
|
38.9
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
82.3
|
102.7
|
8.9
|
(29.3)
|
|
|
|
|
|
|
|
Pretax margin
|
6.8%
|
9.3%
|
9.3%
|
--
|
|
|
|
|
|
|
|
Open orders
|
488.1
|
488.1
|
--
|
--
|
|
Closed orders
|
370.8
|
370.8
|
--
|
--
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
2010
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$1,146.0
|
$1,038.6
|
$86.3
|
$21.1
|
|
|
|
|
|
|
|
Interest and investment
income
|
38.8
|
34.4
|
2.9
|
1.5
|
|
Realized gains and
losses
|
28.6
|
2.7
|
0.1
|
25.8
|
|
Total revenue
|
1,213.4
|
1,075.7
|
89.3
|
48.4
|
|
|
|
|
|
|
|
Personnel costs
|
370.7
|
350.8
|
11.8
|
8.1
|
|
Other operating
expenses
|
299.0
|
242.7
|
36.0
|
20.3
|
|
Agent commissions
|
384.4
|
384.4
|
--
|
--
|
|
Depreciation and
amortization
|
23.0
|
21.6
|
1.1
|
0.3
|
|
Claim loss expense
|
86.3
|
52.1
|
34.2
|
--
|
|
Interest expense
|
7.1
|
0.1
|
--
|
7.0
|
|
Total expenses
|
1,170.5
|
1,051.7
|
83.1
|
35.7
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
42.9
|
24.0
|
6.2
|
12.7
|
|
|
|
|
|
|
|
Pretax margin
|
3.5%
|
2.2%
|
6.9%
|
26.2%
|
|
|
|
|
|
|
|
Open orders
|
511.1
|
511.1
|
--
|
--
|
|
Closed orders
|
332.5
|
332.5
|
--
|
--
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
SUMMARY
BALANCE SHEET INFORMATION
(In
millions, except per share
amounts)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cash and investment
portfolio
|
|
$4,877.2
|
|
$4,939.3
|
|
Goodwill
|
|
1,471.0
|
|
1,470.7
|
|
Title plant
|
|
390.3
|
|
390.8
|
|
Total assets
|
|
7,800.8
|
|
7,887.5
|
|
Notes payable
|
|
952.0
|
|
952.0
|
|
Reserve for claim
losses
|
|
2,237.8
|
|
2,272.7
|
|
Secured trust
deposits
|
|
400.0
|
|
388.4
|
|
Total equity
|
|
3,451.7
|
|
3,444.4
|
|
Book value per
share
|
|
$15.46
|
|
$15.39
|
|
|
|
|
|
|
|
|
SOURCE Fidelity National Financial, Inc.