JACKSONVILLE, Fla.,
Oct. 19, 2011 /PRNewswire/ --
Fidelity National Financial, Inc. (NYSE: FNF), a leading provider
of title insurance, mortgage services and diversified services,
today reported operating results for the three-month and nine-month
periods ended September 30, 2011.
|
|
|
Three Months
Ended
September
30, 2011
|
Three Months
Ended
September
30, 2010
|
|
Total revenue
|
$1.24
billion
|
$1.37
billion
|
|
Net earnings attributable to
common shareholders
|
$74.3
million
|
$83.2
million
|
|
Net earnings per diluted share
attributable to common shareholders
|
$0.33
|
$0.36
|
|
Cash flow from
operations
|
$66.1
million
|
$21.2
million
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September
30, 2011
|
Nine Months
Ended
September
30, 2010
|
|
Total revenue
|
$3.69
billion
|
$4.00
billion
|
|
Net earnings attributable to
common shareholders
|
$196.8
million
|
$239.3
million
|
|
Net earnings per diluted share
attributable to common shareholders
|
$0.88
|
$1.04
|
|
Cash flow from
operations
|
$75.3
million
|
$69.1
million
|
|
|
|
|
|
|
The following are summary financial and operational results for
the title insurance segment of FNF for the three-month and
nine-month periods ended September 30,
2011 and 2010:
Fidelity National Title Group ("FNT")
|
|
|
Three Months
Ended
September
30, 2011
|
Three Months
Ended
September
30, 2010
|
|
Total revenue
|
$1.19
billion
|
$1.32
billion
|
|
Pre-tax earnings
|
$138.1
million
|
$139.5
million
|
|
Pre-tax margin
|
11.6%
|
10.6%
|
|
|
Nine Months
Ended
September
30, 2011
|
Nine Months
Ended
September
30, 2010
|
|
Total revenue
|
$3.53
billion
|
$3.71
billion
|
|
Pre-tax earnings
|
$388.1
million
|
$296.3
million
|
|
Pre-tax margin
|
11.0%
|
8.0%
|
|
|
|
|
|
|
|
|
Month
|
Direct
Orders Opened
|
Direct
Orders Closed
|
|
July 2011
|
157,400
|
113,300
|
|
August 2011
|
232,900
|
130,900
|
|
September 2011
|
205,700
|
134,600
|
|
Third Quarter
2011
|
596,000
|
378,800
|
|
|
|
|
|
July 2010
|
220,700
|
119,600
|
|
August 2010
|
251,700
|
139,600
|
|
September 2010
|
239,500
|
148,800
|
|
Third Quarter
2010
|
711,900
|
408,000
|
|
|
|
|
|
|
|
|
|
Open
Commercial
Orders
|
Closed
Commercial
Orders
|
Commercial
Revenue
(In
millions)
|
Commercial
Fee Per
File
|
|
3rd Quarter 2011
|
17,800
|
11,700
|
$99.1
|
$8,500
|
|
3rd Quarter 2010
|
18,000
|
10,300
|
$67.8
|
$6,600
|
|
|
|
|
|
|
|
|
- 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.
"We produced another strong quarter in our title insurance
business, despite the continued difficult operating environment,"
said Chairman William P. Foley, II.
"Our industry-leading pre-tax title margin was 11.6%,
including $7.2 million in realized
investment losses, and 12.2% before the impact of those realized
losses. We again saw the strength in our commercial title
business partially offset the ongoing weakness in the residential
resale markets and we exceeded our targets in shared services cost
reductions. Additionally, with the meaningful decline in
mortgage rates beginning in August, we began to see a significant
increase in our refinance open order volumes, as August total open
orders per day increased nearly 30% over July, and September total
open orders per day remained nearly equal with those elevated
August levels. We expect to see the majority of the revenue
and earnings benefit from these increased open order volumes in our
fourth quarter operating results.
"Our personal lines business suffered a pre-tax loss of
$14 million due to claims relating to
significant summer storms, most notably Hurricane Irene, versus a
$1 million pre-tax loss in the prior
year. The personal lines business was a $9 million, or $0.04 per share, drag on our net earnings for the
quarter.
"In July, we announced the sale of our flood insurance business
for $210 million which will generate
an estimated $154 million pre-tax
gain. That flood business has been the nation's largest flood
insurance provider and a very profitable and consistent business
for FNF for nearly ten years. We feel this transaction is a
great opportunity to realize the value we have created and redeploy
the capital into other uses that can continue to create increased
value for our shareholders. We are awaiting final regulatory
approvals and expect to close that sale in the next several weeks.
The flood business is now shown as a discontinued operation
in our financial statements.
"Finally, in August, we issued $300
million of seven-year, 4.25% convertible senior notes.
This issuance allowed us to repay our maturing senior notes
and continued our strategy of enhancing our longer-term liquidity
profile, conservatively managing our balance sheet and liquidity
position during uncertain times and maximizing holding company
flexibility. Concurrent with the offering, we used
$75 million of the proceeds to
repurchase approximately 4.6 million shares of our common
stock."
Conference Call
FNF will host a call with investors and analysts to discuss
third quarter 2011 results on Thursday,
October 20, 2011, beginning at 10:00
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 12:00 p.m. Eastern
time on October 20, 2011,
through October 27, 2011, by dialing
800-475-6701 (USA) or 320-365-3844
(International). The access code will be 219468.
About FNF
Fidelity National Financial, Inc. (NYSE:FNF), is a leading
provider of title insurance, mortgage services and diversified
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. In addition, among other operations, FNF owns
minority interests in Ceridian Corporation, a leading provider of
global human resources, payroll, benefits and payment solutions,
Remy International, Inc., a leading designer, manufacturer,
remanufacturer, marketer and distributor of aftermarket and
original equipment electrical components for automobiles, light
trucks, heavy-duty trucks and other vehicles and American Blue
Ribbon Holdings, LLC, an owner and operator of the Village Inn,
Bakers Square and Max & Erma's restaurants. 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)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Direct title premiums
|
$374.0
|
|
$357.6
|
|
$1,054.1
|
|
$983.6
|
|
Agency title premiums
|
426.0
|
|
545.7
|
|
1,334.0
|
|
1,582.3
|
|
Total title
premiums
|
800.0
|
|
903.3
|
|
2,388.1
|
|
2,565.9
|
|
Escrow, title-related and other
fees
|
371.9
|
|
355.4
|
|
1,058.2
|
|
1,024.1
|
|
Total title and
escrow
|
1,171.9
|
|
1,258.7
|
|
3,446.3
|
|
3,590.0
|
|
|
|
|
|
|
|
|
|
|
Specialty insurance
|
36.7
|
|
41.1
|
|
116.7
|
|
114.0
|
|
Interest and investment
income
|
37.5
|
|
33.4
|
|
112.1
|
|
107.5
|
|
Realized gains and
losses
|
(6.1)
|
|
40.1
|
|
15.5
|
|
192.8
|
|
Total revenue
|
1,240.0
|
|
1,373.3
|
|
3,690.6
|
|
4,004.3
|
|
|
|
|
|
|
|
|
|
|
Personnel costs
|
400.6
|
|
401.7
|
|
1,181.3
|
|
1,162.6
|
|
Other operating
expenses
|
277.3
|
|
291.8
|
|
804.6
|
|
852.7
|
|
Agent commissions
|
326.3
|
|
427.5
|
|
1,033.1
|
|
1,247.8
|
|
Depreciation and
amortization
|
17.6
|
|
21.3
|
|
55.7
|
|
65.0
|
|
Claim loss expense
|
107.2
|
|
100.8
|
|
298.5
|
|
284.0
|
|
Interest expense
|
14.0
|
|
12.9
|
|
42.1
|
|
32.5
|
|
Total expenses
|
1,143.0
|
|
1,256.0
|
|
3,415.3
|
|
3,644.6
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations before taxes
|
97.0
|
|
117.3
|
|
275.3
|
|
359.7
|
|
Income tax expense
|
31.6
|
|
40.7
|
|
95.4
|
|
125.0
|
|
Earnings from continuing
operations before equity investments
|
65.4
|
|
76.6
|
|
179.9
|
|
234.7
|
|
Earnings (loss) from equity
investments
|
3.7
|
|
0.9
|
|
7.7
|
|
(6.2)
|
|
Net earnings from continuing
operations
|
69.1
|
|
77.5
|
|
187.6
|
|
228.5
|
|
Income from discontinued
operations, net of tax
|
7.8
|
|
6.3
|
|
16.4
|
|
14.6
|
|
Net earnings
|
76.9
|
|
83.8
|
|
204.0
|
|
243.1
|
|
Non-controlling
interests
|
2.6
|
|
0.6
|
|
7.2
|
|
3.8
|
|
Net earnings attributable to
common shareholders
|
$74.3
|
|
$83.2
|
|
$196.8
|
|
$239.3
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareholders - basic
|
$0.34
|
|
$0.37
|
|
$0.90
|
|
$1.05
|
|
Net earnings
attributable to common shareholders -diluted
|
$0.33
|
|
$0.36
|
|
$0.88
|
|
$1.04
|
|
Weighted average shares –
basic
|
217.7
|
|
225.9
|
|
219.7
|
|
227.0
|
|
Weighted average shares –
diluted
|
222.0
|
|
229.2
|
|
223.3
|
|
230.0
|
|
|
|
|
|
|
|
|
|
|
Direct operations orders
opened (000's)
|
596.0
|
|
711.9
|
|
1,598.1
|
|
1,774.1
|
|
Direct operations orders
closed (000's)
|
378.8
|
|
408.0
|
|
1,102.8
|
|
1,102.4
|
|
Fee per file
|
$1,543
|
|
$1,346
|
|
$1,493
|
|
$1,394
|
|
Actual title claims
paid
|
$131.1
|
|
$132.1
|
|
$367.4
|
|
$349.8
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
THIRD
QUARTER SEGMENT INFORMATION
(In
millions, except order information in 000's)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
2011
|
Consolidated
|
FNT
|
Corporate
and
Other
|
|
|
Gross operating
revenue
|
$1,208.6
|
$1,158.1
|
$50.5
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
37.5
|
35.9
|
1.6
|
|
|
Realized gains and
losses
|
(6.1)
|
(7.2)
|
1.1
|
|
|
Total revenue
|
1,240.0
|
1,186.8
|
53.2
|
|
|
|
|
|
|
|
|
Personnel costs
|
400.6
|
386.3
|
14.3
|
|
|
Other operating
expenses
|
277.3
|
252.8
|
24.5
|
|
|
Agent commissions
|
326.3
|
326.3
|
--
|
|
|
Depreciation and
amortization
|
17.6
|
16.9
|
0.7
|
|
|
Claim loss expense
|
107.2
|
66.4
|
40.8
|
|
|
Interest expense
|
14.0
|
--
|
14.0
|
|
|
Total expenses
|
1,143.0
|
1,048.7
|
94.3
|
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
97.0
|
138.1
|
(41.1)
|
|
|
|
|
|
|
|
|
Pretax margin
|
7.8%
|
11.6%
|
--
|
|
|
|
|
|
|
|
|
Open orders
|
596.0
|
596.0
|
--
|
|
|
Closed orders
|
378.8
|
378.8
|
--
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
2010
|
Consolidated
|
FNT
|
Corporate
and
Other
|
|
|
Gross operating
revenue
|
$1,299.8
|
$1,248.1
|
$51.7
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
33.4
|
31.7
|
1.7
|
|
|
Realized gains and
losses
|
40.1
|
39.1
|
1.0
|
|
|
Total revenue
|
1,373.3
|
1,318.9
|
54.4
|
|
|
|
|
|
|
|
|
Personnel costs
|
401.7
|
389.8
|
11.9
|
|
|
Other operating
expenses
|
291.8
|
268.9
|
22.9
|
|
|
Agent commissions
|
427.5
|
427.5
|
--
|
|
|
Depreciation and
amortization
|
21.3
|
21.3
|
--
|
|
|
Claim loss expense
|
100.8
|
71.9
|
28.9
|
|
|
Interest expense
|
12.9
|
--
|
12.9
|
|
|
Total expenses
|
1,256.0
|
1,179.4
|
76.6
|
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
117.3
|
139.5
|
(22.2)
|
|
|
|
|
|
|
|
|
Pretax margin
|
8.5%
|
10.6%
|
--
|
|
|
|
|
|
|
|
|
Open orders
|
711.9
|
711.9
|
--
|
|
|
Closed orders
|
408.0
|
408.0
|
--
|
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In
millions, except order information in '000's)
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
2011
|
Consolidated
|
FNT
|
Corporate
and
Other
|
|
|
Gross operating
revenue
|
$3,563.0
|
$3,410.7
|
$152.3
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
112.1
|
106.7
|
5.4
|
|
|
Realized gains and
losses
|
15.5
|
13.5
|
2.0
|
|
|
Total revenue
|
3,690.6
|
3,530.9
|
159.7
|
|
|
|
|
|
|
|
|
Personnel costs
|
1,181.3
|
1,129.9
|
51.4
|
|
|
Other operating
expenses
|
804.6
|
732.4
|
72.2
|
|
|
Agent commissions
|
1,033.1
|
1,033.1
|
--
|
|
|
Depreciation and
amortization
|
55.7
|
53.5
|
2.2
|
|
|
Claim loss expense
|
298.5
|
193.1
|
105.4
|
|
|
Interest expense
|
42.1
|
0.8
|
41.3
|
|
|
Total expenses
|
3,415.3
|
3,142.8
|
272.5
|
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
275.3
|
388.1
|
(112.8)
|
|
|
|
|
|
|
|
|
Pretax margin
|
7.5%
|
11.0%
|
--
|
|
|
|
|
|
|
|
|
Open orders
|
1,598.1
|
1,598.1
|
--
|
|
|
Closed orders
|
1,102.8
|
1,102.8
|
--
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
2010
|
Consolidated
|
FNT
|
Corporate
and
Other
|
|
|
Gross operating
revenue
|
$3,704.0
|
$3,547.5
|
$156.5
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
107.5
|
100.7
|
6.8
|
|
|
Realized gains and
losses
|
192.8
|
66.4
|
126.4
|
|
|
Total revenue
|
4,004.3
|
3,714.6
|
289.7
|
|
|
|
|
|
|
|
|
Personnel costs
|
1,162.6
|
1,127.1
|
35.5
|
|
|
Other operating
expenses
|
852.7
|
777.1
|
75.6
|
|
|
Agent commissions
|
1,247.8
|
1,247.8
|
--
|
|
|
Depreciation and
amortization
|
65.0
|
63.8
|
1.2
|
|
|
Claim loss expense
|
284.0
|
202.3
|
81.7
|
|
|
Interest expense
|
32.5
|
0.2
|
32.3
|
|
|
Total expenses
|
3,644.6
|
3,418.3
|
226.3
|
|
|
|
|
|
|
|
|
Pretax earnings from continuing
operations
|
359.7
|
296.3
|
63.4
|
|
|
|
|
|
|
|
|
Pretax margin
|
9.0%
|
8.0%
|
21.9%
|
|
|
|
|
|
|
|
|
Open orders
|
1,774.1
|
1,774.1
|
--
|
|
|
Closed orders
|
1,102.4
|
1,102.4
|
--
|
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
SUMMARY
BALANCE SHEET INFORMATION
(In
millions, except per share amounts)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Cash and investment
portfolio
|
|
$5,025.0
|
|
$4,939.3
|
|
Goodwill
|
|
1,471.6
|
|
1,470.7
|
|
Title plant
|
|
390.7
|
|
390.8
|
|
Total assets
|
|
7,877.7
|
|
7,887.5
|
|
Notes payable
|
|
1,015.1
|
|
952.0
|
|
Reserve for claim
losses
|
|
2,080.4
|
|
2,272.7
|
|
Secured trust
deposits
|
|
477.9
|
|
388.4
|
|
Total equity
|
|
3,513.7
|
|
3,444.4
|
|
Book value per
share
|
|
$16.03
|
|
$15.39
|
|
|
|
|
|
|
|
|
SOURCE Fidelity National Financial, Inc.