Exhibit 99.2
Fidelity National Financial, Inc.
Third Quarter 2013 Operating Results
The following are summary consolidated financial and operational results for Fidelity National Financial, Inc. for the three-month and nine-month periods ended September 30, 2013 and 2012:
FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY OF EARNINGS
(In millions, except order information in 000’s)
(Unaudited)
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Nine Months Ended | |
| | September 30, | | | September 30, | |
| | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Direct title premiums | | $ | 472 | | | $ | 436 | | | $ | 1,377 | | | $ | 1,215 | |
Agency title premiums | | | 630 | | | | 569 | | | | 1,779 | | | | 1,501 | |
| | | | | | | | | | | | | | | | |
Total title premiums | | | 1,102 | | | | 1,005 | | | | 3,156 | | | | 2,716 | |
Escrow, title-related and other fees | | | 437 | | | | 428 | | | | 1,361 | | | | 1,228 | |
| | | | | | | | | | | | | | | | |
Total title and escrow | | | 1,539 | | | | 1,433 | | | | 4,517 | | | | 3,944 | |
Restaurant revenue | | | 336 | | | | 298 | | | | 1,037 | | | | 551 | |
Remy revenue | | | 266 | | | | 143 | | | | 834 | | | | 143 | |
Interest and investment income | | | 29 | | | | 36 | | | | 99 | | | | 109 | |
Realized gains and losses | | | 4 | | | | 123 | | | | 7 | | | | 193 | |
| | | | | | | | | | | | | | | | |
Total revenue | | | 2,174 | | | | 2,033 | | | | 6,494 | | | | 4,940 | |
Personnel costs | | | 540 | | | | 470 | | | | 1,605 | | | | 1,322 | |
Other operating expenses | | | 329 | | | | 331 | | | | 1,020 | | | | 932 | |
Cost of restaurant revenue | | | 292 | | | | 258 | | | | 889 | | | | 473 | |
Cost of Remy revenue (includes $19, $6, $55 and $6 of D&A, respectively) | | | 223 | | | | 125 | | | | 704 | | | | 125 | |
Agent commissions | | | 482 | | | | 432 | | | | 1,352 | | | | 1,144 | |
Depreciation and amortization | | | 36 | | | | 28 | | | | 104 | | | | 71 | |
Title claim loss expense | | | 77 | | | | 69 | | | | 221 | | | | 200 | |
Interest expense | | | 27 | | | | 19 | | | | 71 | | | | 50 | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 2,006 | | | | 1,732 | | | | 5,966 | | | | 4,317 | |
Earnings from continuing operations before taxes | | | 168 | | | | 301 | | | | 528 | | | | 623 | |
Income tax expense | | | 54 | | | | 70 | | | | 172 | | | | 188 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operations before equity investments | | | 114 | | | | 231 | | | | 356 | | | | 435 | |
Earnings from equity investments | | | (14 | ) | | | 5 | | | | (20 | ) | | | 13 | |
| | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | | 100 | | | | 236 | | | | 336 | | | | 448 | |
Income from discontinued operations, net of tax | | | — | | | | (1 | ) | | | (2 | ) | | | 11 | |
| | | | | | | | | | | | | | | | |
Net earnings | | | 100 | | | | 235 | | | | 334 | | | | 459 | |
Non-controlling interests | | | 2 | | | | 1 | | | | 8 | | | | 4 | |
| | | | | | | | | | | | | | | | |
Net earnings attributable to common shareholders | | $ | 98 | | | $ | 234 | | | $ | 326 | | | $ | 455 | |
| | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | |
Net earnings attributable to common shareholders – basic | | $ | 0.43 | | | $ | 1.06 | | | $ | 1.45 | | | $ | 2.07 | |
| | | | | | | | | | | | | | | | |
Net earnings attributable to common shareholders – diluted | | $ | 0.43 | | | $ | 1.04 | | | $ | 1.42 | | | $ | 2.02 | |
Weighted average shares – basic | | | 226 | | | | 221 | | | | 225 | | | | 220 | |
| | | | | | | | | | | | | | | | |
Weighted average shares – diluted | | | 230 | | | | 226 | | | | 230 | | | | 225 | |
| | | | | | | | | | | | | | | | |
Direct operations orders opened (000’s) | | | 474 | | | | 707 | | | | 1,789 | | | | 2,025 | |
Direct operations orders closed (000’s) | | | 410 | | | | 480 | | | | 1,401 | | | | 1,349 | |
Fee per file | | $ | 1,807 | | | $ | 1,467 | | | $ | 1,568 | | | $ | 1,456 | |
Actual title claims paid | | $ | 103 | | | $ | 97 | | | $ | 303 | | | $ | 302 | |
1
FIDELITY NATIONAL FINANCIAL, INC.
THIRD QUARTER SEGMENT INFORMATION
(In millions, except order information in 000’s)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
Three Months Ended September 30, 2013 | | Consolidated | | | FNT | | | Restaurant Group | | | Remy | | | Corporate and Other | |
Gross operating revenue | | $ | 2,141 | | | $ | 1,507 | | | $ | 336 | | | $ | 266 | | | $ | 32 | |
Interest and investment income | | | 29 | | | | 29 | | | | — | | | | 1 | | | | (1 | ) |
Realized gains and losses | | | 4 | | | | 3 | | | | 2 | | | | (1 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 2,174 | | | | 1,539 | | | | 338 | | | | 266 | | | | 31 | |
Personnel costs | | | 540 | | | | 467 | | | | 16 | | | | 19 | | | | 38 | |
Other operating expenses | | | 329 | | | | 276 | | | | 15 | | | | 13 | | | | 25 | |
Cost of revenue | | | 515 | | | | — | | | | 292 | | | | 223 | | | | — | |
Agent commissions | | | 482 | | | | 482 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 36 | | | | 16 | | | | 13 | | | | 1 | | | | 6 | |
Title claim loss expense | | | 77 | | | | 77 | | | | — | | | | — | | | | — | |
Interest expense | | | 27 | | | | — | | | | 2 | | | | 6 | | | | 19 | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 2,006 | | | | 1,318 | | | | 338 | | | | 262 | | | | 88 | |
Pre-tax earnings from continuing operations | | | 168 | | | | 221 | | | | — | | | | 4 | | | | (57 | ) |
Pre-tax margin | | | 7.7 | % | | | 14.4 | % | | | — | | | | 1.5 | % | | | — | |
Adjusted pre-tax margin | | | 7.6 | % | | | 14.2 | % | | | — | | | | 1.9 | % | | | — | |
Open orders | | | 474 | | | | 474 | | | | — | | | | — | | | | — | |
Closed orders | | | 410 | | | | 410 | | | | — | | | | — | | | | — | |
| | | | | |
Three Months Ended September 30, 2012 | | Consolidated | | | FNT | | | Restaurant Group | | | Remy | | | Corporate and Other | |
Gross operating revenue | | $ | 1,874 | | | $ | 1,418 | | | | 298 | | | | 143 | | | $ | 15 | |
Interest and investment income | | | 36 | | | | 34 | | | | — | | | | — | | | | 2 | |
Realized gains and losses | | | 123 | | | | — | | | | 50 | | | | 79 | | | | (6 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 2,033 | | | | 1,452 | | | | 348 | | | | 222 | | | | 11 | |
Personnel costs | | | 470 | | | | 436 | | | | 17 | | | | 8 | | | | 9 | |
Other operating expenses | | | 331 | | | | 289 | | | | 18 | | | | 5 | | | | 19 | |
Cost of revenue | | | 383 | | | | | | | | 258 | | | | 125 | | | | | |
Agent commissions | | | 432 | | | | 432 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 28 | | | | 17 | | | | 11 | | | | — | | | | — | |
Title claim loss expense | | | 69 | | | | 69 | | | | — | | | | — | | | | — | |
Interest expense | | | 19 | | | | — | | | | 1 | | | | 4 | | | | 14 | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 1,732 | | | | 1,243 | | | | 305 | | | | 142 | | | | 42 | |
Pre-tax earnings from continuing operations | | | 301 | | | | 209 | | | | 43 | | | | 80 | | | | (31 | ) |
Pre-tax margin | | | 14.8 | % | | | 14.4 | % | | | 12.3 | % | | | 36.0 | % | | | — | |
Adjusted pre-tax margin | | | 9.3 | % | | | 14.4 | % | | | — | | | | 0.7 | % | | | — | |
Open orders | | | 707 | | | | 707 | | | | — | | | | — | | | | — | |
Closed orders | | | 480 | | | | 480 | | | | — | | | | — | | | | — | |
2
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in 000’s)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
Nine Months Ended September 30, 2013 | | Consolidated | | | FNT | | | Restaurant Group | | | Remy | | | Corporate and Other | |
Gross operating revenue | | $ | 6,388 | | | $ | 4,422 | | | $ | 1,037 | | | $ | 834 | | | $ | 95 | |
Interest and investment income | | | 99 | | | | 97 | | | | — | | | | 1 | | | | 1 | |
Realized gains and losses | | | 7 | | | | 10 | | | | — | | | | (4 | ) | | | 1 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 6,494 | | | | 4,529 | | | | 1,037 | | | | 831 | | | | 97 | |
Personnel costs | | | 1,605 | | | | 1,400 | | | | 47 | | | | 65 | | | | 93 | |
Other operating expenses | | | 1,020 | | | | 845 | | | | 50 | | | | 36 | | | | 89 | |
Cost of revenue | | | 1,593 | | | | — | | | | 889 | | | | 704 | | | | — | |
Agent commissions | | | 1,352 | | | | 1,352 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 104 | | | | 49 | | | | 40 | | | | 3 | | | | 12 | |
Title claim loss expense | | | 221 | | | | 221 | | | | — | | | | — | | | | — | |
Interest expense | | | 71 | | | | — | | | | 6 | | | | 16 | | | | 49 | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 5,966 | | | | 3,867 | | | | 1,032 | | | | 824 | | | | 243 | |
Pre-tax earnings from continuing operations | | | 528 | | | | 662 | | | | 5 | | | | 7 | | | | (146 | ) |
Pre-tax margin | | | 8.1 | % | | | 14.6 | % | | | 0.5 | % | | | 0.8 | % | | | — | |
Adjusted pre-tax margin | | | 8.0 | % | | | 14.4 | % | | | 0.5 | % | | | 1.3 | % | | | — | |
Open orders | | | 1,789 | | | | 1,789 | | | | — | | | | — | | | | — | |
Closed orders | | | 1,401 | | | | 1,401 | | | | — | | | | — | | | | — | |
| | | | | |
Nine Months Ended September 30, 2012 | | Consolidated | | | FNT | | | Restaurant Group | | | Remy | | | Corporate and Other | |
Gross operating revenue | | $ | 4,638 | | | $ | 3,900 | | | | 551 | | | | 143 | | | $ | 44 | |
Interest and investment income | | | 109 | | | | 104 | | | | — | | | | — | | | | 5 | |
Realized gains and losses | | | 193 | | | | 5 | | | | 121 | | | | 79 | | | | (12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 4,940 | | | | 4,009 | | | | 672 | | | | 222 | | | | 37 | |
Personnel costs | | | 1,322 | | | | 1,263 | | | | 25 | | | | 8 | | | | 26 | |
Other operating expenses | | | 932 | | | | 827 | | | | 46 | | | | 5 | | | | 54 | |
Cost of revenue | | | 598 | | | | — | | | | 473 | | | | 125 | | | | | |
Agent commissions | | | 1,144 | | | | 1,144 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 71 | | | | 49 | | | | 20 | | | | — | | | | 2 | |
Title claim loss expense | | | 200 | | | | 200 | | | | — | | | | — | | | | — | |
Interest expense | | | 50 | | | | — | | | | 2 | | | | 4 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 4,317 | | | | 3,483 | | | | 566 | | | | 142 | | | | 126 | |
Pre-tax earnings from continuing operations | | | 623 | | | | 526 | | | | 106 | | | | 80 | | | | (89 | ) |
Pre-tax margin | | | 12.6 | % | | | 13.1 | % | | | 15.8 | % | | | 36.0 | % | | | — | |
Adjusted pre-tax margin | | | 9.1 | % | | | 13.3 | % | | | — | | | | 0.7 | % | | | — | |
Open orders | | | 2,025 | | | | 2,025 | | | | — | | | | — | | | | — | |
Closed orders | | | 1,349 | | | | 1,349 | | | | — | | | | — | | | | — | |
3
FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In millions, except per share amounts)
| | | | | | | | |
| | September 30, | | | December 31, | |
| | 2013 | | | 2012 | |
| | (Unaudited) | | | | |
Cash and investment portfolio | | $ | 5,252 | | | $ | 5,186 | |
Goodwill | | | 1,894 | | | | 1,909 | |
Title plant | | | 374 | | | | 374 | |
Total assets | | | 10,077 | | | | 9,903 | |
Notes payable | | | 1,348 | | | | 1,344 | |
Reserve for title claim losses | | | 1,695 | | | | 1,748 | |
Secured trust deposits | | | 644 | | | | 528 | |
Total equity | | | 4,940 | | | | 4,749 | |
Book value per share | | $ | 21.51 | | | $ | 20.78 | |
###
4