JACKSONVILLE, Fla.,
July 17, 2018 /PRNewswire/ -- Fidelity National
Financial, Inc. (NYSE:FNF), a leading provider of title insurance
and transaction services to the real estate and mortgage
industries, today reported operating results for the three and
six-month periods ended June 30, 2018.
- Total revenue of approximately $2.1
billion in the second quarter versus $2.1 billion in the second quarter of 2017
- Second quarter net earnings of $251
million and adjusted net earnings of $239 million versus net earnings from continuing
operations of $176 million and
adjusted net earnings from continuing operations of $188 million for the second quarter of 2017
- Second quarter diluted EPS of $0.90 and adjusted diluted EPS of $0.86 versus diluted EPS from continuing
operations of $0.64 and adjusted
diluted EPS from continuing operations of $0.68 in the second quarter of 2017
Title
- Total revenue of approximately $2.0
billion versus approximately $1.9
billion in total revenue in the second quarter of 2017
- Pre-tax earnings of $301 million
and adjusted pre-tax earnings of $338
million versus pre-tax earnings of $294 million and adjusted pre-tax earnings of
$310 million in the second quarter of
2017
- Pre-tax title margin of 15.2% and adjusted pre-tax title margin
of 17.1% versus pre-tax title margin of 15.3% and adjusted pre-tax
title margin of 16.2% in the second quarter of 2017
- Second quarter purchase orders opened and closed increased by
3% and 2%, respectively, versus the second quarter of 2017
- Total commercial revenue of $276
million, a 6% increase over total commercial revenue in the
second quarter of 2017, driven by a 4% increase in closed
orders and a 1% increase in total commercial fee per file; second
quarter total commercial open orders increased 7% compared to the
prior year
- Overall second quarter average fee per file of $2,579, a 6% increase versus the second quarter
of 2017
Title Orders
|
|
|
Direct Orders
Opened *
|
|
|
Direct Orders
Closed *
|
Month
|
|
/ (%
Purchase)
|
|
/ (%
Purchase)
|
April 2018
|
|
|
167,000
|
70%
|
|
|
114,000
|
69%
|
May 2018
|
|
|
175,000
|
72%
|
|
|
124,000
|
71%
|
June 2018
|
|
|
163,000
|
71%
|
|
|
124,000
|
73%
|
|
|
|
|
|
|
|
Second Quarter
2018
|
|
|
505,000
|
71%
|
|
|
362,000
|
71%
|
|
|
|
|
|
|
|
|
|
|
Direct Orders
Opened *
|
|
|
Direct Orders
Closed *
|
Month
|
|
/ (%
Purchase)
|
|
|
/ (%
Purchase)
|
April 2017
|
|
|
163,000
|
67%
|
|
|
109,000
|
66%
|
May 2017
|
|
|
181,000
|
67%
|
|
|
128,000
|
67%
|
June 2017
|
|
|
180,000
|
64%
|
|
|
133,000
|
69%
|
|
|
|
|
|
|
|
Second Quarter
2017
|
|
|
524,000
|
66%
|
|
|
370,000
|
67%
|
|
|
|
|
|
|
|
|
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
|
|
|
Open
|
|
|
Closed
|
|
|
Commercial
|
|
|
|
|
|
Commercial
|
|
|
Commercial
|
|
|
Revenue
|
|
|
Commercial
|
|
|
Orders
|
|
|
Orders
|
|
|
(In
millions)
|
|
|
Fee Per
File
|
Second Quarter 2018 -
Total Commercial
|
|
|
54,200
|
|
|
|
35,100
|
|
|
|
$276
|
|
|
|
$7,900
|
Second Quarter 2017 -
Total Commercial
|
|
|
50,800
|
|
|
|
33,600
|
|
|
|
$261
|
|
|
|
$7,800
|
"The second quarter was a very strong performance for our title
business, as we generated adjusted pre-tax title earnings of
$338 million and a 17.1% adjusted
pre-tax title margin, our best quarterly performance on both
metrics in 15 years," said Chairman William
P. Foley, II. "We are encouraged to see the
single-digit growth in orders in both the residential purchase and
commercial markets offsetting the double-digit decline in orders in
the residential refinance market and feel our title business is
well positioned to continue to deliver strong financial results
through the remainder of 2018.
"We continue to work through the regulatory process related to
the Stewart Information Services acquisition that we announced on
March 19. On May 31, we
received the expected Second Request from the FTC, asking for
additional information and documentary material related to their
HSR regulatory review of the transaction. We remain engaged
in document collection and review and have been working
cooperatively with the FTC to fully respond to the Second Request.
The other significant filings are the Form A filings with the
states of Texas and New York, both of which are now subject to
review by those states. We continue to believe the Stewart
acquisition will create meaningful long-term value for our
shareholders."
Conference Call
We will host a call with investors
and analysts to discuss second quarter 2018 FNF results on
Wednesday, July 18, 2018, beginning
at 11:30 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
fnf.com. The conference call replay will be available via
webcast through the FNF Investor Relations website at
fnf.com. The telephone replay will be available from
1:30 p.m. Eastern time on
July 18, 2018, through July 25, 2018, by dialing 800-475-6701
(USA) or 320-365-3844
(International). The access code will be 451401.
About Fidelity National Financial, Inc.
Fidelity
National Financial, Inc. (NYSE: FNF) is a leading provider of title
insurance and transaction services to the real estate and mortgage
industries. FNF is the nation's largest title insurance
company through its title insurance underwriters - Fidelity
National Title, Chicago Title, Commonwealth Land Title, Alamo Title
and National Title of New York -
that collectively issue more title insurance policies than any
other title company in the United States. More information
about FNF can be found at fnf.com.
Use of Non-GAAP Financial Information
Generally
Accepted Accounting Principles (GAAP) is the term used to refer to
the standard framework of guidelines for financial accounting. GAAP
includes the standards, conventions, and rules accountants follow
in recording and summarizing transactions and in the preparation of
financial statements. In addition to reporting financial results in
accordance with GAAP, FNF has provided non-GAAP financial measures,
which it believes are useful to help investors better understand
its financial performance, competitive position and prospects for
the future. These non-GAAP measures include adjusted pre-tax
earnings, adjusted pre-tax earnings from continuing operations,
adjusted pre-tax earnings as a percentage of adjusted revenue
(adjusted pre-tax title margin), adjusted pre-tax earnings from
continuing operations as a percentage of adjusted revenue (adjusted
pre-tax title margin from continuing operations). adjusted net
earnings, adjusted net earnings from continuing operations,
adjusted EPS and adjusted EPS from continuing operations.
Any non-GAAP measures should be considered in context with the
GAAP financial presentation and should not be considered in
isolation or as a substitute for GAAP net earnings. Further, FNF's
non-GAAP measures may be calculated differently from similarly
titled measures of other companies. Reconciliations of these
non-GAAP measures to related GAAP measures are provided below.
Forward-Looking Statements and Risk Factors
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; 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; the risk that Stewart Information Services
Corporation ("Stewart") stockholders may not adopt the merger
agreement; the risk that the necessary regulatory approvals may not
be obtained or may be obtained subject to conditions that are not
anticipated; risks that any of the closing conditions to the
proposed merger may not be satisfied in a timely manner; the risk
that the businesses will not be integrated successfully, that such
integration may be more difficult, time-consuming or costly than
expected or that the expected benefits of the acquisition will not
be realized; and other risks detailed in the "Statement Regarding
Forward-Looking Information," "Risk Factors" and other sections of
FNF's Form 10-K and other filings with the Securities and Exchange
Commission ("SEC").
Important Information Will be Filed with the SEC
This
communication may be deemed to be solicitation material in respect
of the proposed merger between FNF and Stewart. In connection with
the proposed merger, FNF filed with the SEC on May 30, 2018, a preliminary registration
statement on Form S-4, as amended by Amendment No. 1 on
July 12, 2018, which has not yet
become effective. The preliminary registration statement
includes a prospectus and proxy statement which will be sent to
Stewart's stockholders in connection with their votes required in
connection with the proposed merger following the registration
statement having been declared effective by the SEC.
STOCKHOLDERS OF STEWART ARE URGED TO READ ALL RELEVANT DOCUMENTS
FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER. Investors and security holders will be able to obtain
copies of the proxy statement/prospectus as well as other filings
containing information about FNF and Stewart, without charge, at
the SEC's website, sec.gov. Copies of documents filed with the SEC
by FNF (when they are available) will be made available free of
charge on FNF's investor relations website. Copies of documents
filed with the SEC by Stewart (when they are available) will be
made available free of charge on Stewart's investor relations
website.
FNF and Stewart, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies in respect of the transactions contemplated by the merger
agreement. Information regarding the directors and executive
officers of FNF is contained in FNF's Form 10-K for the year
ended December 31, 2017 and its definitive proxy statement
filed on May 2, 2018, which are filed
with the SEC. Information regarding Stewart's directors and
executive officers is contained in Stewart's Form 10-K for the
year ended December 31, 2017 and its proxy statement filed on
April 23, 2018, which are filed with
the SEC. A more complete description will be available in the
Registration Statement and the proxy statement/prospectus.
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of
securities shall be made except by means of a prospectus meeting
the requirements of Section 10 of the Securities Act of 1933,
as amended.
FNF-E
FIDELITY NATIONAL
FINANCIAL, INC.
SECOND QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
June 30,
2018
|
|
|
|
Direct title
premiums
|
|
$
|
599
|
|
|
$
|
599
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
732
|
|
|
732
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
763
|
|
|
602
|
|
|
161
|
|
Total title and
escrow
|
|
2,094
|
|
|
1,933
|
|
|
161
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
45
|
|
|
45
|
|
|
—
|
|
Realized gains and
losses, net
|
|
(16)
|
|
|
(16)
|
|
|
—
|
|
Total
revenue
|
|
2,123
|
|
|
1,962
|
|
|
161
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
665
|
|
|
635
|
|
|
30
|
|
Agent
commissions
|
|
561
|
|
|
561
|
|
|
—
|
|
Other operating
expenses
|
|
506
|
|
|
367
|
|
|
139
|
|
Depreciation and
amortization
|
|
45
|
|
|
38
|
|
|
7
|
|
Claim loss
expense
|
|
60
|
|
|
60
|
|
|
—
|
|
Interest
expense
|
|
11
|
|
|
—
|
|
|
11
|
|
Total
expenses
|
|
1,848
|
|
|
1,661
|
|
|
187
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
|
275
|
|
|
$
|
301
|
|
|
$
|
(26)
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Realized
(gains) and losses, net
|
|
16
|
|
|
16
|
|
|
—
|
|
Purchase price
amortization
|
|
26
|
|
|
21
|
|
|
5
|
|
M&A
costs
|
|
4
|
|
|
—
|
|
|
4
|
|
Total non-GAAP
adjustments before taxes
|
|
$
|
46
|
|
|
$
|
37
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
|
321
|
|
|
$
|
338
|
|
|
$
|
(17)
|
|
Adjusted pre-tax
margin
|
|
15.0
|
%
|
|
17.1
|
%
|
|
—
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
|
275
|
|
|
$
|
301
|
|
|
$
|
(26)
|
|
Income tax
expense (benefit)
|
|
22
|
|
|
29
|
|
|
(7)
|
|
Earnings from
equity investments
|
|
1
|
|
|
1
|
|
|
—
|
|
Non-controlling interests
|
|
3
|
|
|
3
|
|
|
—
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to FNF, Inc. common shareholders
|
|
$
|
251
|
|
|
$
|
270
|
|
|
$
|
(19)
|
|
|
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - basic
|
|
$
|
0.92
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - diluted
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
FNF, Inc. weighted
average shares - basic
|
|
273
|
|
|
|
|
|
FNF, Inc. weighted
average shares - diluted
|
|
278
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SECOND QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
June 30,
2018
|
|
|
|
Net earnings
(loss) attributable to FNF, Inc. common shareholders
|
|
$
|
251
|
|
|
$
|
270
|
|
|
$
|
(19)
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
46
|
|
|
$
|
37
|
|
|
$
|
9
|
|
Income taxes
on non-GAAP adjustments
|
|
(10)
|
|
|
(8)
|
|
|
(2)
|
|
Noncontrolling
interest on non-GAAP adjustments
|
|
(3)
|
|
|
(3)
|
|
|
—
|
|
Change in tax
estimate
|
|
(45)
|
|
|
(45)
|
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
|
(12)
|
|
|
$
|
(19)
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to FNF, Inc. common
shareholders
|
|
$
|
239
|
|
|
$
|
251
|
|
|
$
|
(12)
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to FNF, Inc. common shareholders -
diluted
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct orders opened
(000's)
|
|
505
|
|
|
505
|
|
|
|
Direct orders closed
(000's)
|
|
362
|
|
|
362
|
|
|
|
Fee per
file
|
|
$
|
2,579
|
|
|
$
|
2,579
|
|
|
|
Actual title claims
paid
|
|
$
|
58
|
|
|
$
|
58
|
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by operations
|
|
$
|
331
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SECOND QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
June 30,
2017
|
|
|
|
Direct title
premiums
|
|
$
|
575
|
|
|
$
|
575
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
726
|
|
|
726
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
720
|
|
|
575
|
|
|
145
|
|
Total title and
escrow
|
|
2,021
|
|
|
1,876
|
|
|
145
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
33
|
|
|
33
|
|
|
—
|
|
Realized gains and
losses, net
|
|
5
|
|
|
8
|
|
|
(3)
|
|
Total
revenue
|
|
2,059
|
|
|
1,917
|
|
|
142
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
626
|
|
|
602
|
|
|
24
|
|
Agent
commissions
|
|
558
|
|
|
558
|
|
|
—
|
|
Other operating
expenses
|
|
479
|
|
|
359
|
|
|
120
|
|
Depreciation and
amortization
|
|
44
|
|
|
39
|
|
|
5
|
|
Claim loss
expense
|
|
65
|
|
|
65
|
|
|
—
|
|
Interest
expense
|
|
13
|
|
|
—
|
|
|
13
|
|
Total
expenses
|
|
1,785
|
|
|
1,623
|
|
|
162
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
|
274
|
|
|
$
|
294
|
|
|
$
|
(20)
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Realized
(gains) and losses, net
|
|
(5)
|
|
|
(8)
|
|
|
3
|
|
Purchase price
amortization
|
|
27
|
|
|
23
|
|
|
4
|
|
Management
fee
|
|
1
|
|
|
1
|
|
|
—
|
|
Spin-off
costs
|
|
2
|
|
|
—
|
|
|
2
|
|
Total non-GAAP
adjustments before taxes
|
|
$
|
25
|
|
|
$
|
16
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss) from continuing operations
|
|
$
|
299
|
|
|
$
|
310
|
|
|
$
|
(11)
|
|
Adjusted pre-tax
margin from continuing operations
|
|
14.6
|
%
|
|
16.2
|
%
|
|
—
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
|
274
|
|
|
$
|
294
|
|
|
$
|
(20)
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
101
|
|
|
114
|
|
|
(13)
|
|
Earnings from
equity investments
|
|
3
|
|
|
2
|
|
|
1
|
|
Earnings from
discontinued operations, net of tax
|
|
126
|
|
|
—
|
|
|
126
|
|
Non-controlling interests
|
|
6
|
|
|
—
|
|
|
6
|
|
|
|
|
|
|
|
|
Net earnings
attributable to FNF, Inc. common shareholders
|
|
$
|
296
|
|
|
$
|
182
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
Net earnings
attributable to FNFV Group common shareholders
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
121
|
|
Net earnings
(loss) attributable to FNF Group common shareholders
|
|
$
|
175
|
|
|
$
|
182
|
|
|
$
|
(7)
|
|
Net earnings
(loss) from continuing operations attributable to FNF, Inc.
common shareholders
|
|
$
|
176
|
|
|
$
|
182
|
|
|
$
|
(6)
|
|
EPS attributable
to FNF, Inc. common shareholders - basic
|
|
$
|
0.65
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - diluted
|
|
$
|
0.63
|
|
|
|
|
|
EPS from
continuing operations attributable to FNF, Inc. common
shareholders - diluted
|
|
$
|
0.64
|
|
|
|
|
|
FNF, Inc. weighted
average shares - basic
|
|
271
|
|
|
|
|
|
FNF, Inc. weighted
average shares - diluted
|
|
277
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SECOND QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
June 30,
2017
|
|
|
|
Net earnings
attributable to FNF, Inc. common shareholders
|
|
$
|
296
|
|
|
$
|
182
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
126
|
|
|
—
|
|
|
126
|
|
Non-controlling interests of discontinued operations
|
|
6
|
|
|
—
|
|
|
6
|
|
|
|
|
|
|
|
|
Net earnings
(loss) from continuing operations attributable to FNF, Inc.
common shareholders
|
|
$
|
176
|
|
|
$
|
182
|
|
|
$
|
(6)
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
25
|
|
|
$
|
16
|
|
|
$
|
9
|
|
Income taxes
on non-GAAP adjustments
|
|
(9)
|
|
|
(5)
|
|
|
(4)
|
|
Noncontrolling
interest on non-GAAP adjustments
|
|
(4)
|
|
|
(4)
|
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to
FNF, Inc. common shareholders
|
|
$
|
188
|
|
|
$
|
189
|
|
|
$
|
(1)
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to FNF, Inc.
common shareholders - diluted
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct orders opened
(000's)
|
|
524
|
|
|
524
|
|
|
|
Direct orders closed
(000's)
|
|
370
|
|
|
370
|
|
|
|
Fee per
file
|
|
$
|
2,428
|
|
|
$
|
2,428
|
|
|
|
Actual title claims
paid
|
|
$
|
57
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by operations
|
|
$
|
287
|
|
|
|
|
|
Cash flows
provided by operations attributable to FNF Group
|
|
$
|
401
|
|
|
|
|
|
Cash flows used in
operations attributable to FNFV Group
|
|
$
|
(114)
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Six Months
Ended
|
|
|
|
June 30,
2018
|
|
|
|
Direct title
premiums
|
|
$
|
1,071
|
|
|
$
|
1,071
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
1,296
|
|
|
1,296
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,381
|
|
|
1,118
|
|
|
263
|
|
Total title and
escrow
|
|
3,748
|
|
|
3,485
|
|
|
263
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
83
|
|
|
82
|
|
|
1
|
|
Realized gains and
losses, net
|
|
(15)
|
|
|
(15)
|
|
|
—
|
|
Total
revenue
|
|
3,816
|
|
|
3,552
|
|
|
264
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
1,272
|
|
|
1,214
|
|
|
58
|
|
Agent
commissions
|
|
992
|
|
|
992
|
|
|
—
|
|
Other operating
expenses
|
|
929
|
|
|
697
|
|
|
232
|
|
Depreciation and
amortization
|
|
92
|
|
|
78
|
|
|
14
|
|
Claim loss
expense
|
|
107
|
|
|
107
|
|
|
—
|
|
Interest
expense
|
|
22
|
|
|
—
|
|
|
22
|
|
Total
expenses
|
|
3,414
|
|
|
3,088
|
|
|
326
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
|
402
|
|
|
$
|
464
|
|
|
$
|
(62)
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Realized
(gains) and losses, net
|
|
15
|
|
|
15
|
|
|
—
|
|
Purchase price
amortization
|
|
55
|
|
|
44
|
|
|
11
|
|
M&A
costs
|
|
4
|
|
|
—
|
|
|
4
|
|
Other
adjustments
|
|
3
|
|
|
1
|
|
|
2
|
|
Total non-GAAP
adjustments before taxes
|
|
$
|
77
|
|
|
$
|
60
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
|
479
|
|
|
$
|
524
|
|
|
$
|
(45)
|
|
Adjusted pre-tax
margin
|
|
12.5
|
%
|
|
14.7
|
%
|
|
—
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
|
402
|
|
|
$
|
464
|
|
|
$
|
(62)
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
53
|
|
|
69
|
|
|
(16)
|
|
Earnings from
equity investments
|
|
3
|
|
|
2
|
|
|
1
|
|
Non-controlling interests
|
|
4
|
|
|
4
|
|
|
—
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to FNF, Inc. common shareholders
|
|
$
|
348
|
|
|
$
|
393
|
|
|
$
|
(45)
|
|
|
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - basic
|
|
$
|
1.27
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - diluted
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
FNF, Inc. weighted
average shares - basic
|
|
273
|
|
|
|
|
|
FNF, Inc. weighted
average shares - diluted
|
|
279
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Six Months
Ended
|
|
|
|
June 30,
2018
|
|
|
|
Net earnings
(loss) attributable to FNF, Inc. common shareholders
|
|
$
|
348
|
|
|
$
|
393
|
|
|
$
|
(45)
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
77
|
|
|
$
|
60
|
|
|
$
|
17
|
|
Income taxes
on non-GAAP adjustments
|
|
(17)
|
|
|
(13)
|
|
|
(4)
|
|
Noncontrolling
interest on non-GAAP adjustments
|
|
(6)
|
|
|
(6)
|
|
|
—
|
|
Change in tax
estimate
|
|
(45)
|
|
|
(45)
|
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
|
9
|
|
|
$
|
(4)
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to FNF, Inc. common
shareholders
|
|
$
|
357
|
|
|
$
|
389
|
|
|
$
|
(32)
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to FNF, Inc. common shareholders -
diluted
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct orders opened
(000's)
|
|
983
|
|
|
983
|
|
|
|
Direct orders closed
(000's)
|
|
675
|
|
|
675
|
|
|
|
Fee per
file
|
|
$
|
2,470
|
|
|
$
|
2,470
|
|
|
|
Actual title claims
paid
|
|
$
|
110
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by operations
|
|
$
|
350
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Six months
ended
|
|
|
|
June 30,
2017
|
|
|
|
Direct title
premiums
|
|
$
|
1,040
|
|
|
$
|
1,040
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
1,309
|
|
|
1,309
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,291
|
|
|
1,071
|
|
|
220
|
|
Total title and
escrow
|
|
3,640
|
|
|
3,420
|
|
|
220
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
61
|
|
|
61
|
|
|
—
|
|
Realized gains and
losses, net
|
|
1
|
|
|
6
|
|
|
(5)
|
|
Total
revenue
|
|
3,702
|
|
|
3,487
|
|
|
215
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
1,195
|
|
|
1,150
|
|
|
45
|
|
Agent
commissions
|
|
1,004
|
|
|
1,004
|
|
|
—
|
|
Other operating
expenses
|
|
868
|
|
|
694
|
|
|
174
|
|
Depreciation and
amortization
|
|
87
|
|
|
77
|
|
|
10
|
|
Claim loss
expense
|
|
117
|
|
|
117
|
|
|
—
|
|
Interest
expense
|
|
29
|
|
|
—
|
|
|
29
|
|
Total
expenses
|
|
3,300
|
|
|
3,042
|
|
|
258
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
|
402
|
|
|
$
|
445
|
|
|
$
|
(43)
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Realized
(gains) and losses, net
|
|
(1)
|
|
|
(6)
|
|
|
5
|
|
Purchase price
amortization
|
|
53
|
|
|
45
|
|
|
8
|
|
Management
fee
|
|
1
|
|
|
1
|
|
|
—
|
|
Spin-off
costs
|
|
2
|
|
|
—
|
|
|
2
|
|
Total non-GAAP
adjustments before taxes
|
|
$
|
55
|
|
|
$
|
40
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss) from continuing operations
|
|
$
|
457
|
|
|
$
|
485
|
|
|
$
|
(28)
|
|
Adjusted pre-tax
margin from continuing operations
|
|
12.3
|
%
|
|
13.9
|
%
|
|
—
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
|
402
|
|
|
$
|
445
|
|
|
$
|
(43)
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
170
|
|
|
192
|
|
|
(22)
|
|
Earnings from
equity investments
|
|
4
|
|
|
4
|
|
|
—
|
|
Earnings from
discontinued operations, net of tax
|
|
147
|
|
|
—
|
|
|
147
|
|
Non-controlling interests
|
|
15
|
|
|
(1)
|
|
|
16
|
|
|
|
|
|
|
|
|
Net earnings
attributable to FNF, Inc. common shareholders
|
|
$
|
368
|
|
|
$
|
258
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
Net earnings
attributable to FNFV Group common shareholders
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
122
|
|
Net earnings
(loss) attributable to FNF Group common shareholders
|
|
$
|
246
|
|
|
$
|
258
|
|
|
$
|
(12)
|
|
Net earnings
(loss) from continuing operations attributable to FNF, Inc.
common shareholders
|
|
$
|
237
|
|
|
$
|
258
|
|
|
$
|
(21)
|
|
EPS attributable
to FNF, Inc. common shareholders - basic
|
|
$
|
0.91
|
|
|
|
|
|
EPS attributable
to FNF, Inc. common shareholders - diluted
|
|
$
|
0.88
|
|
|
|
|
|
EPS from
continuing operations attributable to FNF, Inc. common
shareholders - diluted
|
|
$
|
0.85
|
|
|
|
|
|
FNF, Inc. weighted
average shares - basic
|
|
271
|
|
|
|
|
|
FNF, Inc. weighted
average shares - diluted
|
|
278
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
Corporate and
Other
|
Six months
ended
|
|
|
|
June 30,
2017
|
|
|
|
Net earnings
attributable to FNF, Inc. common shareholders
|
|
$
|
368
|
|
|
$
|
258
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
147
|
|
|
—
|
|
|
147
|
|
Non-controlling interests of discontinued operations
|
|
16
|
|
|
—
|
|
|
16
|
|
|
|
|
|
|
|
|
Net earnings
(loss) from continuing operations attributable to FNF, Inc.
common shareholders
|
|
$
|
237
|
|
|
$
|
258
|
|
|
$
|
(21)
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
55
|
|
|
$
|
40
|
|
|
$
|
15
|
|
Income taxes
on non-GAAP adjustments
|
|
(19)
|
|
|
(13)
|
|
|
(6)
|
|
Noncontrolling
interest on non-GAAP adjustments
|
|
(7)
|
|
|
(7)
|
|
|
—
|
|
Nondeductible
income taxes on litigation and regulatory settlements
|
|
21
|
|
|
21
|
|
|
$
|
—
|
|
Total non-GAAP
adjustments
|
|
$
|
50
|
|
|
$
|
41
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to
FNF, Inc. common shareholders
|
|
$
|
287
|
|
|
$
|
299
|
|
|
$
|
(12)
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to FNF, Inc.
common shareholders - diluted
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct orders opened
(000's)
|
|
996
|
|
|
996
|
|
|
|
Direct orders closed
(000's)
|
|
704
|
|
|
704
|
|
|
|
Fee per
file
|
|
$
|
2,295
|
|
|
$
|
2,295
|
|
|
|
Actual title claims
paid
|
|
$
|
108
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by operations
|
|
$
|
291
|
|
|
|
|
|
Cash flows
provided by operations attributable to FNF Group
|
|
$
|
389
|
|
|
|
|
|
Cash flows used in
operations attributable to FNFV Group
|
|
$
|
(98)
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
QUARTERLY
OPERATING STATISTICS
(Unaudited)
|
|
|
|
Q2
2018
|
|
Q1
2018
|
|
Q4
2017
|
|
Q3
2017
|
|
Q2
2017
|
|
Q1
2017
|
|
Q4
2016
|
|
Q3
2016
|
Quarterly Open
Orders ('000's except % data)
|
Total open
orders*
|
|
505
|
|
|
478
|
|
|
445
|
|
|
501
|
|
|
524
|
|
|
472
|
|
|
474
|
|
|
616
|
|
Total open orders per
day*
|
|
7.9
|
|
|
7.7
|
|
|
7.2
|
|
|
8.0
|
|
|
8.2
|
|
|
7.6
|
|
|
7.6
|
|
|
9.6
|
|
Purchase % of open
orders
|
|
71
|
%
|
|
66
|
%
|
|
60
|
%
|
|
62
|
%
|
|
66
|
%
|
|
64
|
%
|
|
53
|
%
|
|
50
|
%
|
Refinance % of open
orders
|
|
29
|
%
|
|
34
|
%
|
|
40
|
%
|
|
38
|
%
|
|
34
|
%
|
|
36
|
%
|
|
47
|
%
|
|
50
|
%
|
Total closed
orders*
|
|
362
|
|
|
313
|
|
|
357
|
|
|
367
|
|
|
370
|
|
|
334
|
|
|
419
|
|
|
433
|
|
Total closed orders
per day*
|
|
5.7
|
|
|
5.0
|
|
|
5.8
|
|
|
5.8
|
|
|
5.8
|
|
|
5.4
|
|
|
6.8
|
|
|
6.8
|
|
Purchase % of closed
orders
|
|
71
|
%
|
|
62
|
%
|
|
61
|
%
|
|
65
|
%
|
|
67
|
%
|
|
58
|
%
|
|
51
|
%
|
|
54
|
%
|
Refinance % of closed
orders
|
|
29
|
%
|
|
38
|
%
|
|
39
|
%
|
|
35
|
%
|
|
33
|
%
|
|
42
|
%
|
|
49
|
%
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(millions, except orders in '000's)
|
Total commercial
revenue
|
|
$
|
276
|
|
|
$
|
230
|
|
|
$
|
288
|
|
|
$
|
250
|
|
|
$
|
261
|
|
|
$
|
224
|
|
|
$
|
285
|
|
|
$
|
233
|
|
Total commercial open
orders
|
|
54.2
|
|
|
52.8
|
|
|
46.3
|
|
|
48.3
|
|
|
50.8
|
|
|
49.4
|
|
|
45.9
|
|
|
50.4
|
|
Total commercial
closed orders
|
|
35.1
|
|
|
31.5
|
|
|
33.2
|
|
|
33.4
|
|
|
33.6
|
|
|
30.0
|
|
|
34.7
|
|
|
31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$
|
147
|
|
|
$
|
122
|
|
|
$
|
165
|
|
|
$
|
138
|
|
|
$
|
148
|
|
|
$
|
127
|
|
|
$
|
167
|
|
|
$
|
130
|
|
National commercial
open orders
|
|
23.0
|
|
|
21.1
|
|
|
19.0
|
|
|
19.9
|
|
|
22.0
|
|
|
21.1
|
|
|
17.9
|
|
|
20.4
|
|
National commercial
closed orders
|
|
12.9
|
|
|
11.2
|
|
|
12.1
|
|
|
13.1
|
|
|
13.3
|
|
|
11.2
|
|
|
12.8
|
|
|
11.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per
File
|
Fee per
file
|
|
$
|
2,579
|
|
|
$
|
2,344
|
|
|
$
|
2,425
|
|
|
$
|
2,368
|
|
|
$
|
2,428
|
|
|
$
|
2,148
|
|
|
$
|
2,091
|
|
|
$
|
2,015
|
|
Residential and local
commercial fee per file
|
|
$
|
2,253
|
|
|
$
|
2,027
|
|
|
$
|
2,032
|
|
|
$
|
2,066
|
|
|
$
|
2,104
|
|
|
$
|
1,829
|
|
|
$
|
1,746
|
|
|
$
|
1,762
|
|
Residential fee per
file
|
|
$
|
2,012
|
|
|
$
|
1,789
|
|
|
$
|
1,784
|
|
|
$
|
1,856
|
|
|
$
|
1,895
|
|
|
$
|
1,623
|
|
|
$
|
1,538
|
|
|
$
|
1,594
|
|
Total commercial fee
per file
|
|
$
|
7,900
|
|
|
$
|
7,300
|
|
|
$
|
8,700
|
|
|
$
|
7,500
|
|
|
$
|
7,800
|
|
|
$
|
7,500
|
|
|
$
|
8,200
|
|
|
$
|
7,300
|
|
National commercial
fee per file
|
|
$
|
11,400
|
|
|
$
|
10,900
|
|
|
$
|
13,600
|
|
|
$
|
10,500
|
|
|
$
|
11,100
|
|
|
$
|
11,300
|
|
|
$
|
13,000
|
|
|
$
|
11,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Staffing
|
Total field
operations employees
|
|
11,000
|
|
|
10,900
|
|
|
11,200
|
|
|
11,700
|
|
|
11,300
|
|
|
11,000
|
|
|
11,100
|
|
|
11,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
FIDELITY NATIONAL
FINANCIAL, INC.
SUMMARY BALANCE
SHEET INFORMATION
(In
millions)
|
|
|
|
FNF,
Inc.
June 30,
2018
|
|
FNF,
Inc.
December 31,
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash and investment
portfolio
|
|
|
$
|
4,597
|
|
|
|
$
|
4,481
|
|
Goodwill
|
|
|
2,764
|
|
|
|
2,746
|
|
Title
plant
|
|
|
398
|
|
|
|
398
|
|
Total
assets
|
|
|
9,254
|
|
|
|
9,151
|
|
Notes
payable
|
|
|
734
|
|
|
|
759
|
|
Reserve for title
claim losses
|
|
|
1,487
|
|
|
|
1,490
|
|
Secured trust
deposits
|
|
|
897
|
|
|
|
830
|
|
Redeemable
non-controlling interests
|
|
|
344
|
|
|
|
344
|
|
Non-redeemable
non-controlling interests
|
|
|
26
|
|
|
|
20
|
|
Total equity and
non-controlling interests
|
|
|
4,973
|
|
|
|
4,811
|
|
Total equity
attributable to common shareholders
|
|
|
4,603
|
|
|
|
4,447
|
|
View original
content:http://www.prnewswire.com/news-releases/fnf-reports-second-quarter-2018-diluted-eps-of-0-90-and-adjusted-diluted-eps-of-0-86--pre-tax-title-margin-of-15-2-and-adjusted-pre-tax-title-margin-of-17-1-300682336.html
SOURCE Fidelity National Financial, Inc.