FNF Group Reports Second Quarter 2016 Diluted EPS of $0.67 and Adjusted Diluted EPS of $0.74, Pre-Tax Title Margin of 15.4% and Adjusted Pre-Tax Title Margin of 16.5%
Jacksonville, Fla. - (July 20, 2016) - Fidelity National Financial, Inc. today reported the operating results of FNF Group (NYSE:FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and six-month periods ended June 30, 2016.
| |
| • | Total revenue of approximately $2.1 billion in the second quarter versus $2.0 billion in the second quarter of 2015 |
| |
| • | Second quarter net earnings of $187 million and adjusted net earnings of $207 million versus net earnings of $160 million and adjusted net earnings of $187 million for the second quarter of 2015 |
| |
| • | Second quarter diluted EPS of $0.67 and adjusted diluted EPS of $0.74 versus diluted EPS of $0.56 and adjusted diluted EPS of $0.65 in the second quarter of 2015 |
| |
| • | Second quarter net cash flow provided by operations of $277 million and free cash flow provided of $165 million versus net cash flow provided by operations of $350 million and free cash flow provided of $309 million in the second quarter of 2015 |
| |
| • | Repurchased nearly 2.5 million shares of FNF common stock for more than $84 million in the second quarter |
Title
| |
| • | Approximately $1.8 billion in total revenue versus approximately $1.7 billion in total revenue in the second quarter of 2015 |
| |
| • | Pre-tax earnings of $281 million and adjusted pre-tax earnings of $300 million versus pre-tax earnings of $261 million and adjusted pre-tax earnings of $283 million in the second quarter of 2015 |
| |
| • | Pre-tax title margin of 15.4% and adjusted pre-tax title margin of 16.5% versus pre-tax title margin of 15.3% and adjusted pre-tax title margin of 16.5% in the second quarter of 2015 |
| |
| • | ServiceLink generated $203 million in revenue, adjusted pre-tax earnings of $26 million and an adjusted pre-tax margin of 12.8% for the second quarter |
| |
| • | Open orders per day of 9,016 for the second quarter versus 8,750 open orders per day for the second quarter of 2015 |
| |
| • | Closed orders per day of 6,266 for the second quarter versus 6,375 closed orders per day for the second quarter of 2015 |
| |
| • | Second quarter purchase orders opened and closed increased by 4% and 6%, respectively, versus the second quarter of 2015; for FNTG only (excluding ServiceLink), purchase orders opened and closed increased by 5% and 6%, respectively versus the second quarter of 2015 |
| |
| • | Total commercial revenue of $244 million, a 5% decrease from total commercial revenue in the second quarter of 2015, driven by a 4% increase in closed orders and a 9% decrease in total commercial fee per file; second quarter total commercial open orders decreased by 2%; second quarter national commercial title revenue of $144 million, a 4% decrease from the second quarter of 2015, driven by a 3% improvement in the national commercial fee per file and a 7% decrease in closed orders; second quarter national commercial open orders declined by 4% |
| |
| • | Overall second quarter average fee per file of $2,116, a 4% increase versus the second quarter of 2015 |
| |
| • | Title claims paid of $73 million, a increase of $3 million, or 4%, from the second quarter of 2015 |
Title Orders
|
| | | | | | | | |
| | | | Direct Orders Opened * | | | Direct Orders Closed * |
| Month | | / (% Purchase) | | / (% Purchase) |
| April 2016 | | | 187,000 | 57% | | | 127,000 | 56% |
| May 2016 | | | 189,000 | 58% | | | 132,000 | 58% |
| June 2016 | | | 201,000 | 54% | | | 142,000 | 59% |
| | | | | | | |
| Second Quarter 2016 | | | 577,000 | 57% | | | 401,000 | 58% |
| | | | | | | |
|
| | | | | | | | |
| | | | Direct Orders Opened * | | | Direct Orders Closed * |
| Month | | / (% Purchase) | | | / (% Purchase) |
| April 2015 | | | 202,000 | 53% | | | 138,000 | 51% |
| May 2015 | | | 174,000 | 58% | | | 129,000 | 54% |
| June 2015 | | | 184,000 | 61% | | | 141,000 | 57% |
| | | | | | | |
| Second Quarter 2015 | | | 560,000 | 57% | | | 408,000 | 54% |
| | | | | | | | | |
* 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 2016 - Total Commercial | | | 49,900 | | | | 33,600 | | | | $244 | | | | $7,300 |
| Second Quarter 2015 - Total Commercial | | | 50,800 | | | | 32,400 | | | | $258 | | | | $8,000 |
| | | | | | | | | | | | | | | | |
| Second Quarter 2016 - National Commercial | | | 20,300 | | | | 11,600 | | | | $144 | | | | $12,400 |
| Second Quarter 2015 - National Commercial | | | 21,200 | | | | 12,500 | | | | $150 | | | | $12,000 |
BKFS
| |
| • | Revenue of $256 million, led by Servicing Technology revenue of approximately $172 million |
| |
| • | Pre-tax earnings of $41 million, a 78% increase over the second quarter of 2015 |
| |
| • | Adjusted EBITDA of $114 million, a $12 million, or 12% increase, over the second quarter of 2015 and an adjusted EBITDA margin of 45.2%, and a 170 basis point increase over the second quarter of 2015 |
“This quarter clearly highlights the earnings power of our title insurance business," said Chairman William P. Foley, II. "We experienced continued mid-single digit growth in the purchase market, a slight decline in commercial revenue and lower refinance closings, yet we still were able to generate a 16.5% adjusted pre-tax title margin. With the decline in interest rates in late June, we have already begun to see a meaningful increase in refinance openings in the last three weeks, which bodes well for improved third quarter refinance closings. As we enter the second half of 2016, we will continue to strive to maximize earnings from our operations and remain the most profitable title insurance company in the country.
“Black Knight continued its strong financial performance this quarter, generating revenue of $256 million and adjusted EBITDA of $114 million, for a 45.2% adjusted EBITDA margin. FNF's Black Knight ownership stake is currently worth approximately $3.2 billion, or more than $11 per FNF share."
Conference Call
We will host a call with investors and analysts to discuss second quarter 2016 FNF Group results on Thursday, July 21, 2016, beginning at 10:30 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 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 12:30 p.m. Eastern time on July 21, 2016, through July 28, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 396730.
About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV). FNF is a leading provider of title insurance, technology 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. FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC. FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc., Digital Insurance, Inc. and Del Frisco's Restaurant Group, Inc. More information about FNF and FNFV can be found at www.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, the Company 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 earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted net earnings, adjusted EPS and free cash flow.
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, 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.
This press release should be read in conjunction with the press release filed for the results of FNFV on this same date as well as the risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-Q, 10-K and other filings with the Securities and Exchange Commission.
FNF-E
SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com
FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Three Months Ended | | | | |
| June 30, 2016 | | | | |
| Direct title premiums | | $ | 540 |
| | $ | 540 |
| | $ | — |
| | $ | — |
|
| Agency title premiums | | 691 |
| | 691 |
| | — |
| | — |
|
| Escrow, title related and other fees (1) | | 867 |
| | 552 |
| | 256 |
| | 59 |
|
| Total title and escrow | | 2,098 |
| | 1,783 |
| | 256 |
| | 59 |
|
| | | | | | | | | |
| Interest and investment income | | 36 |
| | 36 |
| | — |
| | — |
|
| Realized gains and losses, net | | — |
| | 3 |
| | — |
| | (3 | ) |
| Total revenue | | 2,134 |
| | 1,822 |
| | 256 |
| | 56 |
|
| | | | | | | | | |
| Personnel costs | | 667 |
| | 557 |
| | 95 |
| | 15 |
|
| Agent commissions | | 526 |
| | 526 |
| | — |
| | — |
|
| Other operating expenses | | 465 |
| | 354 |
| | 55 |
| | 56 |
|
| Depreciation and amortization | | 87 |
| | 36 |
| | 49 |
| | 2 |
|
| Claim loss expense | | 68 |
| | 68 |
| | — |
| | — |
|
| Interest expense | | 32 |
| | — |
| | 16 |
| | 16 |
|
| Total expenses | | 1,845 |
| | 1,541 |
| | 215 |
| | 89 |
|
| | | | | | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 289 |
| | $ | 281 |
| | $ | 41 |
| | $ | (33 | ) |
| | | | | | | | | |
| Non-GAAP adjustments before taxes | | | | | | | | |
| Realized (gains) and losses, net | | — |
| | (3 | ) | | — |
| | 3 |
|
| Deferred revenue add back and management fee | | 3 |
| | 1 |
| | 2 |
| | — |
|
| Purchase price amortization | | 42 |
| | 21 |
| | 20 |
| | 1 |
|
| M&A costs | | 1 |
| | — |
| | 1 |
| | — |
|
| Other legal accruals | | 5 |
| | — |
| | 5 |
| | — |
|
| Total non-GAAP adjustments before taxes | | $ | 51 |
| | $ | 19 |
| | $ | 28 |
| | $ | 4 |
|
| | | | | | | | | |
| Adjusted pre-tax earnings (loss) from continuing ops. | | $ | 340 |
| | $ | 300 |
| | $ | 69 |
| | $ | (29 | ) |
| Adjusted pre-tax margin from continuing operations | | 15.9 | % | | 16.5 | % | | 26.7 | % | | — |
|
| | | | | | | | | |
| Purchase price amortization | | (42 | ) | | (21 | ) | | (20 | ) | | (1 | ) |
| Depreciation and amortization | | 87 |
| | 36 |
| | 49 |
| | 2 |
|
| Interest expense | | 32 |
| | — |
| | 16 |
| | 16 |
|
| | | | | | | | | |
| Adjusted EBITDA | | $ | 417 |
| | $ | 315 |
| | $ | 114 |
| | $ | (12 | ) |
| Adjusted EBITDA margin | | 19.5 | % | | 17.3 | % | | 45.2 | % | | — |
|
| | | | | | | | | |
| ServiceLink non-GAAP reconciliations: | | | | | | | | |
| ServiceLink pre-tax earnings | | $ | 6 |
| | | | | | |
| Purchase price amortization | | 17 |
| | | | | | |
| Management fee / other expenses | | 3 |
| | | | | | |
| ServiceLink adjusted pre-tax earnings | | $ | 26 |
| | | | | | |
| |
| 1. | BKFS also reported adjusted revenue of $258 million, which includes $2 million of deferred revenue |
FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Three Months Ended | | | | |
| June 30, 2016 | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 289 |
| | $ | 281 |
| | $ | 41 |
| | $ | (33 | ) |
| Income tax expense (benefit) | | 98 |
| | 106 |
| | 14 |
| | (22 | ) |
| Earnings from equity investments | | 3 |
| | 3 |
| | — |
| | — |
|
| Non-controlling interests | | 7 |
| | (4 | ) | | 12 |
| | (1 | ) |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 187 |
| | $ | 182 |
| | $ | 15 |
| | $ | (10 | ) |
| | | | | | | | | |
| EPS attributable to FNF Group common shareholders - basic | | $ | 0.69 |
| | $ | 0.67 |
| | $ | 0.06 |
| | $ | (0.04 | ) |
| EPS attributable to FNF Group common shareholders - diluted | | $ | 0.67 |
| | $ | 0.65 |
| | $ | 0.06 |
| | $ | (0.04 | ) |
| | | | | | | | | |
| FNF Group weighted average shares - basic | | 272 |
| | | | | | |
| FNF Group weighted average shares - diluted | | 281 |
| | | | | | |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 187 |
| | $ | 182 |
| | $ | 15 |
| | $ | (10 | ) |
| | | | | | | | | |
| Total non-GAAP, pre-tax adjustments | | $ | 51 |
| | $ | 19 |
| | $ | 28 |
| | $ | 4 |
|
| Income taxes on non-GAAP adjustments | | (20 | ) | | (7 | ) | | (11 | ) | | (2 | ) |
| Noncontrolling interest on non-GAAP adjustments | | (11 | ) | | (3 | ) | | (8 | ) | | — |
|
| Total non-GAAP adjustments | | $ | 20 |
| | $ | 9 |
| | $ | 9 |
| | $ | 2 |
|
| | | | | | | | | |
| Adjusted net earnings (loss) attributable to FNF Group common shareholders | | $ | 207 |
| | $ | 191 |
| | $ | 24 |
| | $ | (8 | ) |
| | | | | | | | | |
| Adjusted EPS attributable to FNF Group common shareholders - diluted | | $ | 0.74 |
| | $ | 0.68 |
| | $ | 0.09 |
| | $ | (0.03 | ) |
| | | | | | | | | |
| Direct orders opened (000's) | | 577 |
| | 577 |
| | | | |
| Direct orders closed (000's) | | 401 |
| | 401 |
| | | | |
| Fee per file | | $ | 2,116 |
| | $ | 2,116 |
| | | | |
| Actual title claims paid | | $ | 73 |
| | $ | 73 |
| | | | |
| | | | | | | | | |
| Cash flows provided by operations: | | $ | 277 |
| | | | | | |
| Non-GAAP adjustments: | | | | | | | | |
| THL management fee | | 1 |
| | | | | | |
| M&A costs | | 1 |
| | | | | | |
| Total non-GAAP adjustments | | 2 |
| | | | | | |
| | | | | | | | | |
| Adjusted cash flows from operations | | 279 |
| | | | | | |
| Capital expenditures | | 114 |
| | | | | | |
| Free cash flow | | $ | 165 |
| | | | | | |
FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Three Months Ended | | | | |
| June 30, 2015 | | | | |
| Direct title premiums | | $ | 547 |
| | $ | 547 |
| | $ | — |
| | $ | — |
|
| Agency title premiums | | 597 |
| | 597 |
| | — |
| | — |
|
| Escrow, title related and other fees (1) | | 827 |
| | 535 |
| | 232 |
| | 60 |
|
| Total title and escrow | | 1,971 |
| | 1,679 |
| | 232 |
| | 60 |
|
| | | | | | | | | |
| Interest and investment income | | 32 |
| | 32 |
| | — |
| | — |
|
| Realized gains and losses, net | | (8 | ) | | — |
| | (5 | ) | | (3 | ) |
| Total revenue | | 1,995 |
| | 1,711 |
| | 227 |
| | 57 |
|
| | | | | | | | | |
| Personnel costs | | 652 |
| | 540 |
| | 102 |
| | 10 |
|
| Agent commissions | | 451 |
| | 451 |
| | — |
| | — |
|
| Other operating expenses | | 453 |
| | 355 |
| | 41 |
| | 57 |
|
| Depreciation and amortization | | 87 |
| | 35 |
| | 50 |
| | 2 |
|
| Claim loss expense | | 69 |
| | 69 |
| | — |
| | — |
|
| Interest expense | | 31 |
| | — |
| | 11 |
| | 20 |
|
| Total expenses | | 1,743 |
| | 1,450 |
| | 204 |
| | 89 |
|
| | | | | | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 252 |
| | $ | 261 |
| | $ | 23 |
| | $ | (32 | ) |
| | | | | | | | | |
| Non-GAAP adjustments before taxes | | | | | | | | |
| Realized (gains) and losses, net | | 8 |
| | — |
| | 5 |
| | 3 |
|
| Deferred revenue add back and management fee | | 4 |
| | 1 |
| | 3 |
| | — |
|
| Purchase price amortization | | 44 |
| | 21 |
| | 23 |
| | — |
|
| IPO costs and profits interest acceleration | | 10 |
| | — |
| | 10 |
| | — |
|
| Total non-GAAP adjustments before taxes | | $ | 66 |
|
| $ | 22 |
|
| $ | 41 |
|
| $ | 3 |
|
| | | | | | | | | |
| Adjusted pre-tax earnings (loss) from continuing operations | | $ | 318 |
| | $ | 283 |
| | $ | 64 |
| | $ | (29 | ) |
| Adjusted pre-tax margin from continuing operations | | 15.9 | % | | 16.5 | % | | 27.2 | % | | — |
|
| | | | | | | | | |
| Purchase price amortization | | (44 | ) | | (21 | ) | | (23 | ) | | — |
|
| Depreciation and amortization | | 87 |
| | 35 |
| | 50 |
| | 2 |
|
| Interest expense | | 31 |
| | — |
| | 11 |
| | 20 |
|
| | | | | | | | | |
| Adjusted EBITDA | | $ | 392 |
| | $ | 297 |
| | $ | 102 |
| | $ | (7 | ) |
| Adjusted EBITDA margin | | 19.5 | % | | 17.4 | % | | 43.5 | % | | — |
|
| |
| 1. | BKFS also reported adjusted revenue of $235 million, which includes $3 million of deferred revenue |
FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Three Months Ended | | | | |
| June 30, 2015 | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 252 |
| | $ | 261 |
| | $ | 23 |
| | $ | (32 | ) |
| | | | | | | | | |
| Income tax expense | | 95 |
| | 96 |
| | — |
| | (1 | ) |
| Non-controlling interests | | (3 | ) | | (6 | ) | | 2 |
| | 1 |
|
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 160 |
| | $ | 171 |
| | $ | 21 |
| | $ | (32 | ) |
| | | | | | | | | |
| EPS attributable to FNF Group common shareholders - basic | | $ | 0.57 |
| | $ | 0.61 |
| | $ | 0.08 |
| | $ | (0.12 | ) |
| EPS attributable to FNF Group common shareholders - diluted | | $ | 0.56 |
| | $ | 0.61 |
| | $ | 0.07 |
| | $ | (0.12 | ) |
| | | | | | | | | |
| FNF Group weighted average shares - basic | | 279 |
| | | | | | |
| FNF Group weighted average shares - diluted | | 287 |
| | | | | | |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 160 |
| | $ | 171 |
| | $ | 21 |
| | $ | (32 | ) |
| | | | | | | | | |
| Total non-GAAP, pre-tax adjustments | | $ | 66 |
| | $ | 22 |
| | $ | 41 |
| | $ | 3 |
|
| Income taxes on non-GAAP adjustments | | (16 | ) | | (5 | ) | | (9 | ) | | (2 | ) |
| Noncontrolling interest on non-GAAP adjustments | | (23 | ) | | (7 | ) | | (16 | ) | | — |
|
| Total non-GAAP adjustments | | $ | 27 |
| | $ | 10 |
| | $ | 16 |
| | $ | 1 |
|
| | | | | | | | | |
| Adjusted net earnings (loss) attributable to FNF Group common shareholders | | $ | 187 |
| | $ | 181 |
| | $ | 37 |
| | $ | (31 | ) |
| | | | | | | | | |
| Adjusted EPS attributable to FNF Group common shareholders - diluted | | $ | 0.65 |
| | $ | 0.64 |
| | $ | 0.13 |
| | $ | (0.12 | ) |
| | | | | | | | | |
| Direct orders opened (000's) | | 560 |
| | 560 |
| | | | |
| Direct orders closed (000's) | | 408 |
| | 408 |
| | | | |
| Fee per file | | $ | 2,026 |
| | $ | 2,026 |
| | | | |
| Actual title claims paid | | $ | 70 |
| | $ | 70 |
| | | | |
| | | | | | | | | |
| Cash flows provided by operations: | | $ | 350 |
| | | | | | |
| Non-GAAP adjustments: | | | | | | | | |
| THL management fee | | 1 |
| | | | | | |
| IPO costs | | 4 |
| | | | | | |
| Total non-GAAP adjustments | | 5 |
| | | | | | |
| | | | | | | | | |
| Adjusted cash flows from operations | | 355 |
| | | | | | |
| Capital expenditures | | 46 |
| | | | | | |
| Free cash flow | | $ | 309 |
| | | | | | |
FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Six Months Ended | | | | |
| June 30, 2016 | | | | |
| Direct title premiums | | $ | 962 |
| | $ | 962 |
| | $ | — |
| | $ | — |
|
| Agency title premiums | | 1,221 |
| | 1,221 |
| | — |
| | — |
|
| Escrow, title related and other fees (1) | | 1,608 |
| | 1,018 |
| | 498 |
| | 92 |
|
| Total title and escrow | | 3,791 |
| | 3,201 |
| | 498 |
| | 92 |
|
| | | | | | | | | |
| Interest and investment income | | 65 |
| | 65 |
| | — |
| | — |
|
| Realized gains and losses, net | | (3 | ) | | 3 |
| | — |
| | (6 | ) |
| Total revenue | | 3,853 |
| | 3,269 |
| | 498 |
| | 86 |
|
| | | | | | | | | |
| Personnel costs | | 1,281 |
| | 1,063 |
| | 191 |
| | 27 |
|
| Agent commissions | | 928 |
| | 928 |
| | — |
| | — |
|
| Other operating expenses | | 870 |
| | 685 |
| | 96 |
| | 89 |
|
| Depreciation and amortization | | 172 |
| | 71 |
| | 97 |
| | 4 |
|
| Claim loss expense | | 120 |
| | 120 |
| | — |
| | — |
|
| Interest expense | | 63 |
| | — |
| | 32 |
| | 31 |
|
| Total expenses | | 3,434 |
| | 2,867 |
| | 416 |
| | 151 |
|
| | | | | | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 419 |
| | $ | 402 |
| | $ | 82 |
| | $ | (65 | ) |
| | | | | | | | | |
| Non-GAAP adjustments before taxes | | | | | | | | |
| Realized (gains) and losses, net | | 3 |
| | (3 | ) | | — |
| | 6 |
|
| Deferred revenue add back and management fee | | 5 |
| | 1 |
| | 4 |
| | — |
|
| Purchase price amortization | | 83 |
| | 42 |
| | 40 |
| | 1 |
|
| M&A costs | | 1 |
| | — |
| | 1 |
| | — |
|
| Other legal accruals | | 5 |
| | — |
| | 5 |
| | — |
|
| Total non-GAAP adjustments before taxes | | $ | 97 |
| | $ | 40 |
| | $ | 50 |
| | $ | 7 |
|
| | | | | | | | | |
| Adjusted pre-tax earnings (loss) from continuing operations | | $ | 516 |
| | $ | 442 |
| | $ | 132 |
| | $ | (58 | ) |
| Adjusted pre-tax margin from continuing operations | | 13.4 | % | | 13.5 | % | | 26.3 | % | | — |
|
| | | | | | | | | |
| Purchase price amortization | | (83 | ) | | (42 | ) | | (40 | ) | | (1 | ) |
| Depreciation and amortization | | 172 |
| | 71 |
| | 97 |
| | 4 |
|
| Interest expense | | 63 |
| | — |
| | 32 |
| | 31 |
|
| | | | | | | | | |
| Adjusted EBITDA | | $ | 668 |
| | $ | 471 |
| | $ | 221 |
| | $ | (24 | ) |
| Adjusted EBITDA margin | | 17.3 | % | | 14.4 | % | | 45.2 | % | | — |
|
| |
| 1. | BKFS also reported adjusted revenue of $502 million, which includes $4 million of deferred revenue |
FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Six Months Ended | | | | |
| June 30, 2016 | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 419 |
| | $ | 402 |
| | $ | 82 |
| | $ | (65 | ) |
| | | | | | | | | |
| Income tax expense (benefit) | | 148 |
| | 151 |
| | 28 |
| | (31 | ) |
| Earnings from equity investments | | 6 |
| | 6 |
| | — |
| | — |
|
| Non-controlling interests | | 17 |
| | (6 | ) | | 24 |
| | (1 | ) |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 260 |
| | $ | 263 |
| | $ | 30 |
| | $ | (33 | ) |
| | | | | | | | | |
| EPS attributable to FNF Group common shareholders - basic | | $ | 0.95 |
| | $ | 0.96 |
| | $ | 0.11 |
| | $ | (0.12 | ) |
| EPS attributable to FNF Group common shareholders - diluted | | $ | 0.93 |
| | $ | 0.94 |
| | $ | 0.11 |
| | $ | (0.12 | ) |
| | | | | | | | | |
| FNF Group weighted average shares - basic | | 273 |
| | | | | | |
| FNF Group weighted average shares - diluted | | 281 |
| | | | | | |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 260 |
| | $ | 263 |
| | $ | 30 |
| | $ | (33 | ) |
| | | | | | | | | |
| Total non-GAAP, pre-tax adjustments | | $ | 97 |
| | $ | 40 |
| | $ | 50 |
| | $ | 7 |
|
| Income taxes on non-GAAP adjustments | | (35 | ) | | (13 | ) | | (19 | ) | | (3 | ) |
| Noncontrolling interest on non-GAAP adjustments | | (21 | ) | | (7 | ) | | (14 | ) | | — |
|
| Total non-GAAP adjustments | | $ | 41 |
| | $ | 20 |
| | $ | 17 |
| | $ | 4 |
|
| | | | | | | | | |
| Adjusted net earnings (loss) attributable to FNF Group common shareholders | | $ | 301 |
| | $ | 283 |
| | $ | 47 |
| | $ | (29 | ) |
| | | | | | | | | |
| Adjusted EPS attributable to FNF Group common shareholders - diluted | | $ | 1.07 |
| | $ | 1.01 |
| | $ | 0.17 |
| | $ | (0.11 | ) |
| | | | | | | | | |
| Direct orders opened (000's) | | 1,094 |
| | 1,094 |
| | | | |
| Direct orders closed (000's) | | 723 |
| | 723 |
| | | | |
| Fee per file | | $ | 2,079 |
| | $ | 2,079 |
| | | | |
| Actual title claims paid | | $ | 113 |
| | $ | 113 |
| | | | |
| | | | | | | | | |
| Cash flows provided by operations: | | $ | 349 |
| | | | | | |
| Non-GAAP adjustments: | | | | | | | | |
| THL management fee | | 1 |
| | | | | | |
| M&A costs | | 1 |
| | | | | | |
| Total non-GAAP adjustments | | 2 |
| | | | | | |
| | | | | | | | | |
| Adjusted cash flows from operations | | 351 |
| | | | | | |
| Capital expenditures | | 152 |
| | | | | | |
| Free cash flow | | $ | 199 |
| | | | | | |
FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Six Months Ended | | | | |
| June 30, 2015 | | | | |
| Direct title premiums | | $ | 964 |
| | $ | 964 |
| | $ | — |
| | $ | — |
|
| Agency title premiums | | 1,038 |
| | 1,038 |
| | — |
| | — |
|
| Escrow, title related and other fees (1) | | 1,522 |
| | 985 |
| | 459 |
| | 78 |
|
| Total title and escrow | | 3,524 |
| | 2,987 |
| | 459 |
| | 78 |
|
| | | | | | | | | |
| Interest and investment income | | 62 |
| | 62 |
| | — |
| | — |
|
| Realized gains and losses, net | | (8 | ) | | — |
| | (5 | ) | | (3 | ) |
| Total revenue | | 3,578 |
| | 3,049 |
| | 454 |
| | 75 |
|
| | | | | | | | | |
| Personnel costs | | 1,237 |
| | 1,020 |
| | 199 |
| | 18 |
|
| Agent commissions | | 784 |
| | 784 |
| | — |
| | — |
|
| Other operating expenses | | 825 |
| | 672 |
| | 78 |
| | 75 |
|
| Depreciation and amortization | | 170 |
| | 72 |
| | 95 |
| | 3 |
|
| Claim loss expense | | 120 |
| | 120 |
| | — |
| | — |
|
| Interest expense | | 60 |
| | — |
| | 19 |
| | 41 |
|
| Total expenses | | 3,196 |
| | 2,668 |
| | 391 |
| | 137 |
|
| | | | | | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 382 |
| | $ | 381 |
| | $ | 63 |
| | $ | (62 | ) |
| | | | | | | | | |
| Non-GAAP adjustments before taxes | | | | | | | | |
| Realized (gain) loss, net adjustment | | 8 |
| | — |
| | 5 |
| | 3 |
|
| Deferred revenue add back and management fee | | 7 |
| | 1 |
| | 6 |
| | — |
|
| Purchase price amortization | | 87 |
| | 42 |
| | 44 |
| | 1 |
|
| IPO costs & profits interest acceleration | | 10 |
| | — |
| | 10 |
| | — |
|
| Total non-GAAP adjustments before taxes | | $ | 112 |
|
| $ | 43 |
|
| $ | 65 |
|
| $ | 4 |
|
| | | | | | | | | |
| Adjusted pre-tax earnings (loss) from continuing operations | | $ | 494 |
| | $ | 424 |
| | $ | 128 |
| | $ | (58 | ) |
| Adjusted pre-tax margin from continuing operations | | 13.8 | % | | 13.9 | % | | 27.6 | % | | — |
|
| | | | | | | | | |
| Purchase price amortization | | (87 | ) | | (42 | ) | | (44 | ) | | (1 | ) |
| Depreciation and amortization | | 170 |
| | 72 |
| | 95 |
| | 3 |
|
| Interest expense | | 60 |
| | — |
| | 19 |
| | 41 |
|
| | | | | | | | | |
| Adjusted EBITDA | | $ | 637 |
| | $ | 454 |
| | $ | 198 |
| | $ | (15 | ) |
| Adjusted EBITDA margin | | 17.7 | % | | 14.9 | % | | 43.1 | % | | — |
|
| |
| 1. | BKFS also reported adjusted revenue of $464, which includes $5 million of deferred revenue |
FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Total FNF Group | | Title | | BKFS | | FNF Group Corporate and Other |
| Six Months Ended | | | | |
| June 30, 2015 | | | | |
| Pre-tax earnings (loss) from continuing operations | | $ | 382 |
| | $ | 381 |
| | $ | 63 |
| | $ | (62 | ) |
| | | | | | | | | |
| Income tax expense | | 142 |
| | 139 |
| | — |
| | 3 |
|
| Earnings from equity investments | | 2 |
| | 2 |
| | — |
| | — |
|
| Non-controlling interests | | (4 | ) | | (11 | ) | | 7 |
| | — |
|
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 246 |
| | $ | 255 |
| | $ | 56 |
| | $ | (65 | ) |
| | | | | | | | | |
| EPS attributable to FNF Group common shareholders - basic | | $ | 0.88 |
| | $ | 0.92 |
| | $ | 0.20 |
| | $ | (0.24 | ) |
| EPS attributable to FNF Group common shareholders - diluted | | $ | 0.86 |
| | $ | 0.90 |
| | $ | 0.20 |
| | $ | (0.24 | ) |
| | | | | | | | | |
| FNF Group weighted average shares - basic | | 278 |
| | | | | | |
| FNF Group weighted average shares - diluted | | 287 |
| | | | | | |
| | | | | | | | | |
| Net earnings (loss) attributable to FNF Group common shareholders | | $ | 246 |
| | $ | 255 |
| | $ | 56 |
| | $ | (65 | ) |
| | | | | | | | | |
| Total non-GAAP, pre-tax adjustments | | $ | 112 |
| | $ | 43 |
| | $ | 65 |
| | $ | 4 |
|
| Income taxes on non-GAAP adjustments | | (28 | ) | | (11 | ) | | (15 | ) | | (2 | ) |
| Noncontrolling interest on non-GAAP adjustments | | (37 | ) | | (13 | ) | | (24 | ) | | — |
|
| Total non-GAAP adjustments | | $ | 47 |
| | $ | 19 |
| | $ | 26 |
| | $ | 2 |
|
| | | | | | | | | |
| Adjusted net earnings (loss) attributable to FNF common shareholders | | $ | 293 |
| | $ | 274 |
| | $ | 82 |
| | $ | (63 | ) |
| Adjusted EPS attributable to FNF common shareholders - diluted | | $ | 1.02 |
| | $ | 0.95 |
| | $ | 0.29 |
| | $ | (0.22 | ) |
| | | | | | | | | |
| Direct orders opened (000's) | | 1,137 |
| | 1,137 |
| | | | |
| Direct orders closed (000's) | | 754 |
| | 754 |
| | | | |
| Fee per file | | $ | 1,938 |
| | $ | 1,938 |
| | | | |
| Actual title claims paid | | $ | 130 |
| | $ | 130 |
| | | | |
| | | | | | | | | |
| Cash flows provided by operations: | | $ | 385 |
| | | | | | |
| Non-GAAP adjustments: | | | | | | | | |
| THL management fee | | 2 |
| | | | | | |
| IPO cost | | 4 |
| | | | | | |
| Total non-GAAP adjustments | | 6 |
| | | | | | |
| | | | | | | | | |
| Adjusted cash flows from operations | | 391 |
| | | | | | |
| Capital expenditures | | 80 |
| | | | | | |
| Free cash flow | | $ | 311 |
| | | | | | |
FNF GROUP
QUARTERLY OPERATING STATISTICS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q2 2016 | | Q1 2016 | | Q4 2015 | | Q3 2015 | | Q2 2015 | | Q1 2015 | | Q4 2014 | | Q3 2014 |
| Quarterly Open Orders ('000's except % data) |
| Total open orders* | | 577 |
| | 517 |
| | 441 |
| | 514 |
| | 560 |
| | 578 |
| | 452 |
| | 481 |
|
| Total open orders per day* | | 9.0 |
| | 8.3 |
| | 7.0 |
| | 8.0 |
| | 8.8 |
| | 9.5 |
| | 7.1 |
| | 7.5 |
|
| Purchase % of open orders | | 57 | % | | 55 | % | | 55 | % | | 58 | % | | 57 | % | | 47 | % | | 52 | % | | 60 | % |
| Refinance % of open orders | | 43 | % | | 45 | % | | 45 | % | | 42 | % | | 43 | % | | 53 | % | | 48 | % | | 40 | % |
| Total closed orders* | | 401 |
| | 322 |
| | 341 |
| | 378 |
| | 408 |
| | 345 |
| | 334 |
| | 348 |
|
| Total closed orders per day* | | 6.3 |
| | 5.2 |
| | 5.4 |
| | 5.9 |
| | 6.4 |
| | 5.7 |
| | 5.3 |
| | 5.4 |
|
| Purchase % of closed orders | | 58 | % | | 55 | % | | 58 | % | | 60 | % | | 54 | % | | 46 | % | | 57 | % | | 62 | % |
| Refinance % of closed orders | | 42 | % | | 45 | % | | 42 | % | | 40 | % | | 46 | % | | 54 | % | | 43 | % | | 38 | % |
| | | | | | | | | | | | | | | | | |
| Commercial (millions, except orders in '000's) |
| Total commercial revenue** | | $ | 244 |
| | $ | 211 |
| | $ | 303 |
| | $ | 258 |
| | $ | 258 |
| | $ | 208 |
| | $ | 274 |
| | $ | 225 |
|
| Total commercial open orders** | | 49.9 |
| | 48.5 |
| | 46.3 |
| | 50.3 |
| | 50.8 |
| | 47.8 |
| | — |
| | — |
|
| Total commercial closed orders** | | 33.6 |
| | 30.7 |
| | 36.3 |
| | 33.0 |
| | 32.4 |
| | 29.6 |
| | — |
| | — |
|
| | | | | | | | | | | | | | | | | |
| National commercial revenue | | $ | 144 |
| | $ | 121 |
| | $ | 183 |
| | $ | 146 |
| | $ | 150 |
| | $ | 119 |
| | $ | 166 |
| | $ | 136 |
|
| National commercial open orders | | 20.3 |
| | 19.3 |
| | 18.1 |
| | 21.0 |
| | 21.2 |
| | 20.4 |
| | 18.1 |
| | 21.4 |
|
| National commercial closed orders | | 11.6 |
| | 10.6 |
| | 13.4 |
| | 12.2 |
| | 12.5 |
| | 11.1 |
| | 12.7 |
| | 12.8 |
|
| | | | | | | | | | | | | | | | | |
| Total Fee Per File |
| Fee per file | | $ | 2,116 |
| | $ | 2,032 |
| | $ | 2,272 |
| | $ | 2,133 |
| | $ | 2,026 |
| | $ | 1,833 |
| | $ | 2,131 |
| | $ | 2,066 |
|
| Residential and local commercial fee per file | | $ | 1,809 |
| | $ | 1,713 |
| | $ | 1,806 |
| | $ | 1,805 |
| | $ | 1,711 |
| | $ | 1,538 |
| | $ | 1,699 |
| | $ | 1,739 |
|
| Residential fee per file | | $ | 1,645 |
| | $ | 1,522 |
| | $ | 1,548 |
| | $ | 1,589 |
| | $ | 1,514 |
| | $ | 1,346 |
| | — |
| | — |
|
| Total commercial fee per file** | | $ | 7,300 |
| | $ | 6,900 |
| | $ | 8,300 |
| | $ | 7,800 |
| | $ | 8,000 |
| | $ | 7,000 |
| | — |
| | — |
|
| National commercial fee per file | | $ | 12,400 |
| | $ | 11,400 |
| | $ | 13,600 |
| | $ | 12,000 |
| | $ | 12,000 |
| | $ | 10,700 |
| | $ | 13,100 |
| | $ | 10,600 |
|
| | | | | | | | | | | | | | | | | |
| Total Staffing |
| Total field operations employees | | 10,900 |
| | 10,900 |
| | 10,700 |
| | 11,000 |
| | 10,900 |
| | 10,400 |
| | 9,900 |
| | 10,200 |
|
| | | | | | | | | | | | | | | | | |
| FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing) |
| Total open orders* | | 484 |
| | 429 |
| | 360 |
| | 422 |
| | 458 |
| | 456 |
| | 354 |
| | 385 |
|
| Total open orders per day* | | 7.5 |
| | 6.9 |
| | 5.7 |
| | 6.6 |
| | 7.2 |
| | 7.5 |
| | 5.6 |
| | 6.0 |
|
| Purchase % of open orders | | 63 | % | | 61 | % | | 62 | % | | 65 | % | | 65 | % | | 54 | % | | 60 | % | | 69 | % |
| Refinance % of open orders | | 37 | % | | 39 | % | | 38 | % | | 35 | % | | 35 | % | | 46 | % | | 40 | % | | 31 | % |
| Total closed orders* | | 338 |
| | 265 |
| | 285 |
| | 314 |
| | 334 |
| | 277 |
| | 273 |
| | 282 |
|
| Total closed orders per day* | | 5.3 |
| | 4.3 |
| | 4.5 |
| | 4.9 |
| | 5.2 |
| | 4.5 |
| | 4.3 |
| | 4.4 |
|
| Purchase % of closed orders | | 63 | % | | 60 | % | | 63 | % | | 66 | % | | 61 | % | | 52 | % | | 63 | % | | 70 | % |
| Refinance % of closed orders | | 37 | % | | 40 | % | | 37 | % | | 34 | % | | 39 | % | | 48 | % | | 37 | % | | 30 | % |
| Fee per file | | $ | 2,337 |
| | $ | 2,261 |
| | $ | 2,521 |
| | $ | 2,364 |
| | $ | 2,264 |
| | $ | 2,055 |
| | $ | 2,382 |
| | $ | 2,306 |
|
| Total title field operations employees | | 9,600 |
| | 9,700 |
| | 9,500 |
| | 9,700 |
| | 9,600 |
| | 9,100 |
| | 8,700 |
| | 8,900 |
|
| | | | | | | | | | | | | | | | | |
| ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing) |
| Total Open Orders* | | 93 |
| | 87 |
| | 81 |
| | 92 |
| | 102 |
| | 122 |
| | 98 |
| | 96 |
|
| Total open orders per day* | | 1.5 |
| | 1.4 |
| | 1.3 |
| | 1.4 |
| | 1.6 |
| | 2.0 |
| | 1.6 |
| | 1.5 |
|
| Purchase % of open orders | | 22 | % | | 24 | % | | 22 | % | | 23 | % | | 22 | % | | 17 | % | | 23 | % | | 23 | % |
| Refinance % of open orders | | 78 | % | | 76 | % | | 78 | % | | 77 | % | | 78 | % | | 83 | % | | 77 | % | | 77 | % |
| Total closed orders | | 63 |
| | 57 |
| | 56 |
| | 64 |
| | 74 |
| | 68 |
| | 61 |
| | 66 |
|
| Total closed orders per day* | | 1.0 |
| | 0.9 |
| | 0.9 |
| | 1.0 |
| | 1.2 |
| | 1.1 |
| | 1.0 |
| | 1.0 |
|
| Purchase % of closed orders | | 27 | % | | 28 | % | | 31 | % | | 26 | % | | 21 | % | | 22 | % | | 26 | % | | 24 | % |
| Refinance % of closed orders | | 73 | % | | 72 | % | | 69 | % | | 74 | % | | 79 | % | | 78 | % | | 74 | % | | 76 | % |
| Fee per file | | $ | 940 |
| | $ | 972 |
| | $ | 1,003 |
| | $ | 987 |
| | $ | 958 |
| | $ | 921 |
| | $ | 1,027 |
| | $ | 1,052 |
|
| Total ServiceLink operating employees | | 1,300 |
| | 1,200 |
| | 1,200 |
| | 1,300 |
| | 1,300 |
| | 1,300 |
| | 1,200 |
| | 1,300 |
|
* Includes an immaterial number of non-purchase and non-refinance orders
** Total commercial order and fee per file tracking began in January 2015
FNF GROUP
SUMMARY BALANCE SHEET INFORMATION
(In millions)
|
| | | | | | | | | | |
| | | FNF Group June 30, 2016 | | FNF Group December 31, 2015 |
| | | (Unaudited) | | | (Unaudited) |
| Cash and investment portfolio | | | $ | 5,141 |
| | | $ | 4,898 |
|
| Goodwill | | | 4,669 |
| | | 4,572 |
|
| Title plant | | | 395 |
| | | 395 |
|
| Total assets | | | 13,032 |
| | | 12,502 |
|
| Notes payable | | | 2,566 |
| | | 2,593 |
|
| Reserve for title claim losses | | | 1,590 |
| | | 1,583 |
|
| Secured trust deposits | | | 1,102 |
| | | 701 |
|
| Redeemable non-controlling interests | | | 344 |
| | | 344 |
|
| Non-redeemable non-controlling interests | | | 741 |
| | | 720 |
|
| Total equity and redeemable non-controlling interests | | | 5,954 |
| | | 5,849 |
|
| Total equity attributable to common shareholders | | | 4,869 |
| | | 4,785 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | FNF Group June 30, 2016 | | | FNFV June 30, 2016 | Consolidated June 30, 2016 | | Consolidated December 31, 2015 |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | | |
| Cash and investment portfolio | | | $ | 5,141 |
| | | $ | 689 |
| | | $ | 5,830 |
| | | $ | 5,633 |
|
| Goodwill | | | 4,669 |
| | | 194 |
| | | 4,863 |
| | | 4,760 |
|
| Title plant | | | 395 |
| | | — |
| | | 395 |
| | | 395 |
|
| Total assets | | | 13,032 |
| | | 1,406 |
| | | 14,438 |
| | | 13,931 |
|
| Notes payable | | | 2,566 |
| | | 219 |
| | | 2,785 |
| | | 2,793 |
|
| Reserve for title claim losses | | | 1,590 |
| | | — |
| | | 1,590 |
| | | 1,583 |
|
| Secured trust deposits | | | 1,102 |
| | | — |
| | | 1,102 |
| | | 701 |
|
| Redeemable non-controlling interests | | | 344 |
| | | — |
| | | 344 |
| | | 344 |
|
| Non-redeemable non-controlling interests | | | 741 |
| | | 119 |
| | | 860 |
| | | 834 |
|
| Total equity and redeemable non-controlling interests | | | 5,954 |
| | | 1,059 |
| | | 7,013 |
| | | 6,932 |
|
| Total equity attributable to common shareholders | | | 4,869 |
| | | 940 |
| | | 5,809 |
| | | 5,754 |
|
Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended |
| | June 30, 2016 | | | June 30, 2016 |
| | Consolidated | | Core | | FNFV | | | Consolidated | | Core | | FNFV |
| Direct title premiums | $ | 540 |
| | $ | 540 |
| | $ | — |
| | | $ | 962 |
| | $ | 962 |
| | $ | — |
|
| Agency title premiums | 691 |
| | 691 |
| | — |
| | | 1,221 |
| | 1,221 |
| | — |
|
| Total title premiums | 1,231 |
| | 1,231 |
| | — |
| | | 2,183 |
| | 2,183 |
| | — |
|
| Escrow, title-related and other fees | 907 |
| | 867 |
| | 40 |
| | | 1,686 |
| | 1,608 |
| | 78 |
|
| Total title and escrow and other | 2,138 |
| | 2,098 |
| | 40 |
| | | 3,869 |
| | 3,791 |
| | 78 |
|
| | | | | | | | | | | | | |
| Restaurant revenue | 292 |
| | — |
| | 292 |
| | | 585 |
| | — |
| | 585 |
|
| Interest and investment income | 37 |
| | 36 |
| | 1 |
| | | 67 |
| | 65 |
| | 2 |
|
| Realized gains and losses, net | 15 |
| | — |
| | 15 |
| | | 9 |
| | (3 | ) | | 12 |
|
| Total revenue | 2,482 |
| | 2,134 |
| | 348 |
| | | 4,530 |
| | 3,853 |
| | 677 |
|
| | | | | | | | | | | | | |
| Personnel costs | 707 |
| | 667 |
| | 40 |
| | | 1,359 |
| | 1,281 |
| | 78 |
|
| Other operating expenses | 493 |
| | 465 |
| | 28 |
| | | 925 |
| | 870 |
| | 55 |
|
| Cost of restaurant revenue | 245 |
| | — |
| | 245 |
| | | 490 |
| | — |
| | 490 |
|
| Agent commissions | 526 |
| | 526 |
| | — |
| | | 928 |
| | 928 |
| | — |
|
| Depreciation and amortization | 102 |
| | 87 |
| | 15 |
| | | 202 |
| | 172 |
| | 30 |
|
| Title claim loss expense | 68 |
| | 68 |
| | — |
| | | 120 |
| | 120 |
| | — |
|
| Interest expense | 33 |
| | 32 |
| | 1 |
| | | 67 |
| | 63 |
| | 4 |
|
| Total expenses | 2,174 |
| | 1,845 |
| | 329 |
| | | 4,091 |
| | 3,434 |
| | 657 |
|
| | | | | | | | | | | | | |
| Earnings from continuing operations before taxes | 308 |
| | 289 |
| | 19 |
| | | 439 |
| | 419 |
| | 20 |
|
| Income tax expense | 101 |
| | 98 |
| | 3 |
| | | 150 |
| | 148 |
| | 2 |
|
| Earnings from continuing operations before equity investments | 207 |
| | 191 |
| | 16 |
| | | 289 |
| | 271 |
| | 18 |
|
| (Loss) earnings from equity investments | (1 | ) | | 3 |
| | (4 | ) | | | 1 |
| | 6 |
| | (5 | ) |
| Net earnings | 206 |
| | 194 |
| | 12 |
| | | 290 |
| | 277 |
| | 13 |
|
| Non-controlling interests | 9 |
| | 7 |
| | 2 |
| | | 19 |
| | 17 |
| | 2 |
|
| Net earnings attributable to common shareholders | $ | 197 |
| | $ | 187 |
| | $ | 10 |
| | | $ | 271 |
| | $ | 260 |
| | $ | 11 |
|
| | | | | | | | | | | | | |
| Cash flows provided by operations | 282 |
| | 277 |
| | 5 |
| | | 374 |
| | 349 |
| | 25 |
|
Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended |
| | June 30, 2015 | | | June 30, 2015 |
| | Consolidated | | Core | | FNFV | | | Consolidated | | Core | | FNFV |
| Direct title premiums | $ | 547 |
| | $ | 547 |
| | $ | — |
| | | $ | 964 |
| | $ | 964 |
| | $ | — |
|
| Agency title premiums | 597 |
| | 597 |
| | — |
| | | 1,038 |
| | 1,038 |
| | — |
|
| Total title premiums | 1,144 |
| | 1,144 |
| | — |
| | | 2,002 |
| | 2,002 |
| | — |
|
| Escrow, title-related and other fees | 857 |
| | 827 |
| | 30 |
| | | 1,665 |
| | 1,522 |
| | 143 |
|
| Total title and escrow and other | 2,001 |
| | 1,971 |
| | 30 |
| | | 3,667 |
| | 3,524 |
| | 143 |
|
| | | | | | | | | | | | | |
| Restaurant revenue | 371 |
| | — |
| | 371 |
| | | 735 |
| | — |
| | 735 |
|
| Interest and investment income | 32 |
| | 32 |
| | — |
| | | 63 |
| | 62 |
| | 1 |
|
| Realized gains and losses, net | (9 | ) | | (8 | ) | | (1 | ) | | | (9 | ) | | (8 | ) | | (1 | ) |
| Total revenue | 2,395 |
| | 1,995 |
| | 400 |
| | | 4,456 |
| | 3,578 |
| | 878 |
|
| | | | | | | | | | | | | |
| Personnel costs | 690 |
| | 652 |
| | 38 |
| | | 1,313 |
| | 1,237 |
| | 76 |
|
| Other operating expenses | 482 |
| | 453 |
| | 29 |
| | | 948 |
| | 825 |
| | 123 |
|
| Cost of restaurant revenue | 313 |
| | — |
| | 313 |
| | | 619 |
| | — |
| | 619 |
|
| Agent commissions | 451 |
| | 451 |
| | — |
| | | 784 |
| | 784 |
| | — |
|
| Depreciation and amortization | 104 |
| | 87 |
| | 17 |
| | | 204 |
| | 170 |
| | 34 |
|
| Title claim loss expense | 69 |
| | 69 |
| | — |
| | | 120 |
| | 120 |
| | — |
|
| Interest expense | 32 |
| | 31 |
| | 1 |
| | | 63 |
| | 60 |
| | 3 |
|
| Total expenses | 2,141 |
| | 1,743 |
| | 398 |
| | | 4,051 |
| | 3,196 |
| | 855 |
|
| | | | | | | | | | | | | |
| Earnings from continuing operations before taxes | 254 |
| | 252 |
| | 2 |
| | | 405 |
| | 382 |
| | 23 |
|
| Income tax expense (benefit) | 88 |
| | 95 |
| | (7 | ) | | | 138 |
| | 142 |
| | (4 | ) |
| Earnings from continuing operations before equity investments | 166 |
| | 157 |
| | 9 |
| | | 267 |
| | 240 |
| | 27 |
|
| Earnings from equity investments | 4 |
| | — |
| | 4 |
| | | 3 |
| | 2 |
| | 1 |
|
| Net earnings | 170 |
| | 157 |
| | 13 |
| | | 270 |
| | 242 |
| | 28 |
|
| Non-controlling interests | — |
| | (3 | ) | | 3 |
| | | 14 |
| | (4 | ) | | 18 |
|
| Net earnings attributable to common shareholders | $ | 170 |
| | $ | 160 |
| | $ | 10 |
| | | $ | 256 |
| | $ | 246 |
| | $ | 10 |
|
| | | | | | | | | | | | | |
| Cash flows provided by operations | 348 |
| | 350 |
| | (2 | ) | | | 389 |
| | 385 |
| | 4 |
|
###
