FNF - Earnings call transcript Q2 2019 | Fidelity National Financial, Inc.

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Operator

Ladies and Gentlemen, thank you for standing by. And welcome to the FNF 2019 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, your conference is being recorded.

to conference like host, to now Murphy. Dan would turn over the your I ahead. go Please

Dan Murphy

Good you. us XXXX second joining and for quarter call. conference Thank earnings everyone our morning, thank you for

and Randy today me Mike Tony are CEO, EVP, Joining Quirk; Bickett. Brent our Nolan; President, CFO, Park;

with the a open with strategic finish review Randy. questions financial We'll then review of call from begin and for Tony and Randy. Mike overview the concluding We'll business from will the your a will brief remarks title some finish with highlights.

This conference hopes, a facts, uncertainties. are call regarding may statements expectations, that are historical or intentions contain Statements number involve forward-looking future, including not our statements. the and of about strategies statements risks forward-looking that

well currently with information, factors based and and results as assumptions We to are new press update materially statements dated statements uncertainties, not the subject future any as forward-looking are regarding a yesterday Forward-looking made no not from and available obligation sections SEC. to, Form those statements fact, The are in management. of statements, factors as information are as Because on such whether other expectations the results, risks and filings and include, forward-looking of forward-looking financial our to actual based of on statements operating beliefs undertake differ company's result events are or to which by and to risks the may projected. statement the limited management's detailed but future in other otherwise. and and release other information, risk XX-K

access will beginning be website is for The XXXXXX. PM replay through at available number July and at will through be fnf.com webcast via conference the replay XXX-XXX-XXXX, available at is call replay today code XX. X.XX phone our also and This

me Randy the to turn call our Let Quirk. now over CEO,

Randy Quirk

Dan. you, Thank

XX.X adjusted quarter the very which ago. best we title both margins, of pretax as nearly and of was title generated performance Mike XXXX strong XX our tax for the were let quarter third detail into on earnings since second $XXX of adjusted pretax go years a title more million The business. would performance our title business I quarterly

the option recently extend Stewart Services, the we respect closing to Information to to the XXXX. second additional transaction three our date exercised of acquisition of With September XX, months an

approvals continue remain York State of and Financial to FTC and July can of confident New shareholders. to we meetings proposed the the long-term both with We Services the had seek for with obtained, the work Stewart meaningful that and acquisition in the are FTC the we acquisition our approval schedules If August. Department value create

the We from questions second are share Stewart. cash comment Board $XX quarter declared In million in holding $X.XX June. used in further company on take available a cash or per which our dividend, April, not

line repurchased XXX,XXX dividends stock the million We Cannae quarter. note. the the million drawn full $XX February credit was in in and $XXX the inflows shares the underwriter Cash of and The $XXX were to also principal interest second non in on for repayment million were $XXX second and level million FNF during company primarily ServiceLink intercompany underwriter and interest quarter of in up that million. holding approximately paid the that $XX of originally in from

Cannae $XXX company the $XXX full cash In $XXX of ended holding in July, million again net approximately the borrows million the The under line the at credit which second with week that holding holding result by we million. first was quarter reduced cash. available of the our company

Let turn me to insurance over title business. the the Mike now call discuss to Nolan

Mike Nolan

X% million, XXXX. a quarter earnings increase pretax million very $XX title adjusted the of Thanks strong Randy. We over $XXX or generated of second

closed orders closed, increase X% increase X% XX.X%, commercial pretax closed, daily in margin orders year. title of in orders decreased a decrease in X% X% a a over a comprised XX basis orders or adjusted point closed. and the XX% total was daily Direct Our reduction prior purchase refinance

Purchase XXXX. persistent sequential quarter X% many Refinance be the prior rates the of from by versus by of a expected. second versus XX% XXXX, second year. XXXX quarter A appears open in versus the opened in decrease quarter the improvement originally declined orders than the as first X% increased of mortgage to orders decline more

quarter X% results are commercial title open and improving well-positioned opened our in and we the of second and orders half the financial total by open, produce second increased continue to strength opened XXXX. second we to as XXXX. enter With continued in strong trend over purchase orders quarter refinance orders Lastly, strong orders of commercial business

year quarter June, averaged per XXXX. orders a For June versus X% purchase increased X,XXX X,XXX, orders XX% prior May opened quarter. and Refinance April second with on quarter, just periods. increased by of month versus at the and by the of of and a Purchase over and total In basis the second down X,XXX, the closed the best at when closed opened to on June opened open daily XX% XX% basis were X% April and refinance daily X,XXX. XXXX. down The day and respectively by both orders respectively orders was quarter June orders open increasing X% in were second

approximately X,XXX first weeks of two per total opened day. the were For orders July,

purchase the by X% million Total by quarter increased $XXX the decrease declined increase commercial period. of XXXX. versus the X% opened revenue second commercial year year X% second offset the quarter over by the for versus increased prior a opened and daily half refinance closed the primarily back in by orders prior a us X% driven well increase was over year, of X% positioning fee of XXXX, Daily prior somewhat open orders in the in Commercial XX% orders. a commercial profile, orders by

revenue of Our since first our was XXXX. XXXX performance total began $XXX half in commercial strongest total tracking half revenue million first revenue we commercial

over Tony to highlights. call Park the to financial turn the now me review Let

Tony Park

due total $X.X $XXX generating Thank you segment quarter more of with billion in the revenue corporate segment. million securities realized second in were Net per to mark-to-market our gains, equity in or title primarily treatment of $XX included preferred $XXX diluted our accounting $XX earnings share. the in but net the which million, million, in Adjusted Mike. were We earnings investment $X.XX stock million portfolio. generated all revenue and than the

XXXX. generated segment second in title $XX our second million securities preferred for excluding title gains investment accounting due related and $X by grew just revenue the X% X%, and quarter, mark-to-market from fees of portfolio, by only the the over escrow In Personnel Agency the realized Direct XXXX. treatment of versus other increased by X% increase expenses by year. an grew the premiums increased quarter a increased X% revenue billion operating stock X% other to costs and in the X%. equity of versus quarter by total our second of we prior primarily

adjusted a the cash for short-term at the continue proceeds to debt the under $XX XX.X% our of XXXX from client over title XX the we ratio from point short-term in, higher in million and $XXX $XX generated FNF exchange the title a business interest Interest of million capital All just basis income business. of investments. prior securities outstanding the million of hold we versus of pretax positive and exchange see debt reinvestment to XX%. rates increase The maturing year margin, we increase on impact June was earn fixed XXth was quarter XXXX. second income funds interest on as on

actuary reserve Our claims carried the for estimate. central claims million higher of currently or $XX second the quarter. is for were The paid million $XX million $XX of million $X provision than above our X% losses

We continue for claims at to premiums. X.X% of total provide titled

investments. or in other cash $XXX equity and all of in unregulated Finally, million by $XX XXth. portfolio as our an There's our million and standpoint, billion we have home of in a $XXX XXth. total of at capital more reserves, other which regulatory company. minimum investments, investments trust regulated for secured nearly $XXX cash deposits billion unregulated investment and regulated at are regulated ServiceLink in billion we in restricted cash working statutory subsidiaries and deferred of and requirements. revenue $X.X From than million warranty totaled $X.X method investments $X.X June primarily cash June $X in and $XXX in billion million From a and million perspective, have

now turn back call to to Let questions. our the me any operator allow for

Operator

Instructions] [Operator

the Mark with of Our line Barclays. DeVries will from come first question

Your line open. is

MarkDeVries

back Thank Could Fed half could as you. if the for impact this of you fact expected? what Tony you. question help think the year income widely us is be in does ease in investment through the on

TonyPark

second quarter state problem, is interests within million of second the in some million up we plant the second $X title quarter million That's Sure, Texas. in No million the Mark. the receive against we XXXX. of we that every generated carry about $XX of XXXX, included $XX in $XX ownership from quarter

quarter. the annual kind of that's So second in event it's an but always

can interest So quarter expect $XX you we're minimum million. million that our comes really income that expectation at then down by and is looking and at about $X a third QX, investment

do on lot work rate $X as expect the based and interest we reductions. erosion you at but but a change next not million Fed of some quarters, decline in income, So two one the investment or few least for your then through way

Some investment erosion in interest and our short-term income.

bumps of to in than thinking quarter first XXXX the little that $XX dividends plant the XXXX. maybe or fourth lower And the maybe second million somewhere $XX of in QX title then I'm in of with the back around up the with the in XXXX, million quarter $XX-ish So a million. maybe quarter in Texas so

MarkDeVries

which is consensus that assuming using Okay. helpful. Is XX That's believe points Fed now? I of funds basically

TonyPark

Yes. It is.

MarkDeVries

then commercial how you. Okay, That's particularly Thank great. that's on some the interesting the on looking. color helpful. getting pipeline And

us Thanks. color half back sizes, be geographic anything just but the I of some you're can else know kind would helpful? you optimistic give transaction diversity, any For

MikeNolan

again Mark. with and good very X% we're Sure, broad-based. Mike. Yes, opens it's It's very up quarter

up Our XX% our national quarter X%. local commercial orders for and were were the up

close strength So the in some had that We deals nice quarter. in good both. larger

of we're couple probably in X%. seeing gaming into transactions, of office. larger it from good fee commercial the to as quarter a pretty You close of that nice multi quarter. income sites in the looks the file And we our notice second quite up had per maybe pipeline; go variety energy segments bit is a a We transactions that and national

larger out we're could the that like Minnesota, exported our Pittsburgh, mid Midwest, as we're doing Virginia, the markets of other get is very, still Chicago sourced out to DC, and around York. A lot some then the York there It's stronger well. New performing Ohio, And but of seeing transactions of Texas good strength are seeing and tier very of deals all markets that well. New one Geographically, occur nice some well. still country

Operator

go George line we'll to next the of And KBW. with Bose

Your line open. is

BoseGeorge

This Bose. is guys. Hey,

about your the back ask expectation The up; first question year. say the to orders. for of of I And the, the margin headcount increase also in given in just relatively terms modestly was I'd wanted I half the guess

see little Just thoughts could the headcount. catch be up in there a

MikeNolan

Mike. It's Sure, Bose.

On day the open done the orders on side on quarter closed number dealing we've we the lot quarter. open of the did But that's operations volume. XXX side in the with that and kind X,XXX at And bit up the lower little headcount, to maybe you step and I and in look side. if our second of first, our think just per volume do people or a have the maybe a you in the similar increased a really that add day about verse into closed on and field second we're per in

per I going think us And per kind our as we'll of the some into open really employee to different to need if to add accordingly. But metrics third order we're may staff. XXX direction add both productivity additional employee we'll trends in going going use guide see be need another on very with third, close the a XXX to people we it. to react then we And side. we're and the move we careful maybe to quarter. And in

typically highest And And commercial quarter third margin expectations, to that quarter quarter. quarter we tends margin the off to the and second quarter. a quarter. of another is comes the to the quarter fourth you second we historically be what your third be the I very Usually see our as year. in is bit know, good the think second would On expect best

trends. to but very well be in down And the be purchase bit, good historical third could have still refi plus commercial tends we'll quarter slightly quarter on it'll the more then So a side and fall off as closing. then just a

So but it'll very be what quarter hard margin call a the good to will exact be.

GeorgeBose

just deal falls holding over like you capital and to switching for be thanks. available and if the much helpful, us just could capital keep you you're That's much feel then remind through, buybacks if great. how to Okay, And Stewart company? how capital could you just at

TonyPark

Sure, Bose. It's Tony.

in the call $XXX on we So cash as quarter started or so hand it million parent company.

a to transaction. position second the subsidiaries of about of could We quarter. fully close a million upstream pretty cash did paid we fund $XXX portion We the common So our from the during dividend where about million. shares total $XX as Cannae bought million, a for revolver. the on $XX modest shares million we mentioned, of day; XX,XXX QX $XXX And repaid in total XXX,XXX we buybacks, Stewart back then

from strong we ended on dividends through if we hand parent expect million $XXX we So the call cash $XXX kind balance from very at of company. fast-forward another at quarter And so subsidiaries. the in in million a of year, our the or the then

did $XXX Stewart $XX in transaction. And still day us to million that at But keep at XX,XXX then a bumping year end and buybacks QX at billion $X on through a dividends outflow in the hand XX,XXX absent would And day about gets that QX. million. in a Cannae $XXX anticipated cash then of perspective not million and We've about an that re-borrow to a about shareholders. us from

obligation, So hand more plenty that obviously million money the with fund million $XXX coffers. Stewart money still $XXX or with of in to on

our your will to of do then million the $X continue able at we holdco maybe question space. dividend. at on about ServiceLink we underwriters close And take hard agents, where look We'll look $XXX and do got of would our things we've including maybe If look which a sure what comfortably a probably weren't that. a $XXX want hand Board in at board the typically to typically I'm of we in course as good with at do certainly something billion number that. dividend technology capital Stewart, you us they'd meeting policy raise on the M&A leave October of the with cash million

And stock buybacks. then

XX have current We million under shares authorization. a

for as they'll I'm take potential at well. more sure So aggressive look a strong buybacks

So with at holdco. billion all table of things are the $X a cash on

GeorgeBose

one then one stock And thanks. of I accelerated the follow-up. an quick repurchase Okay, have options? Is

TonyPark

not the doesn't say would but buyback that. I off there's mean at we guess accelerated point. within I an we We've this that in nothing would done that take not FNF table past, would do the

in not on but sub I stand money that. past, we wouldn't a again suppose all borrowed at with XX% table. We've I So say standpoint be would also from where XX% typically shares leverage to buyback the the cap, or debt things to

Operator

to Next Piper we of line Jason Deleeuw go with the Jaffray.

Your line is open.

JasonDeleeuw

gains? of think some little that bit share on morning. looking Just Thanks quarter-to-quarter just the into more be do may of aware was whole little kind there kind should strength commercial. you anything it bit for a a commercial, color shifting Were And of? large you quarter that of taking that. good deals then the or the And industry out specific is any on the for there or just question. or on that broad-based moved Yes, we have saw for moved color

MikeNolan

Jason, it's Mike.

actually the and have really In close of transactions of things the going But the we quarter. know in some I terms shifted had quarter, quarter number thought did transactions. don't we that that third were into large moved a that to we

closed that and those in a deals mentioned and had be we multi couple to I of a energy gaming a the mentioned, couple big deal. sites I bigger of As quarter tend

you there So transactions larger get one.

commercially our the file on we're other where shifted fee than resale the closing transactions prior close seeing the more per year. kind in that's is we're things of is that of mix One affecting side

a per bigger. bit fee the to be file And tends

actually, you second -- opposite. me, as you're value quarter shift transaction, transactions a not But resale Jason. that. reminds maybe you're say insuring because insuring the the of into benefit again not forward know getting property; you're with I the a a was the big we're there the full so refi of the And wouldn't the and from With question debt pulling

JasonDeleeuw

Share, share trends. market

MikeNolan

other to the what All can of report It's on have commercial don't performance we quarter-to-quarter. hard market in probably the we transparency that know in companies rely their is great share. said, don't overall report the if companies a ones little the out. think we think what and a we of I had we're other first know then we I see game. might We'll bit terms

JasonDeleeuw

title a estate. And of it's thank All emerging just, very the any would Just another I'm you. a pick And a of switch up you're FNF's there's just market continues be and iBuyers buyers get net thinking helpful, right, lot would in iBuyers on I kind steam thoughts general to the It then it of but like here. like terms there? on or seems here that's real of to question instant for positive residential that opportunity trend head that of kind challenges strong how gears seems I on it in insurance, I trend. thoughts or like and interest mean about and

MikeNolan

we transactional Sure, going an and on. them we're They're like we're they it's other control of to these so we could with today pursuing other agency speak. directs and our are side. they're volume attorneys controlling like whether opportunity. it as an entities opportunity or the many be and pursue lenders also customers. It's on or control, And both opportunity an And customers just for working realtors just absolute Jason. And

have about well Some that thinking these title we we formed agencies agencies of title are. about talk them either can as or and forming I-buyers are to and

whether very it's hard really the know. to it at a pace and same it's good opportunity grow So continues to

an But example. there's stronger market markets. one pursuing such. like it than seems there's it plays of think and we're It we is I just other for where opportunity as certain see those Arizona

Operator

John question SIG. from Please go is from next ahead. Micenko Our

JohnMicenko

morning. Good

a you've Is fee Obviously, so to some file. some The trajectory QX that your side, on do thoughts fee little and mix? per moderation more sort just of benefit that's aside fee refine lower revenue file or nice through commercial too. because at overall on want is got it's I you've question a and I XQ see question, all some we looking XQ continue of First QX think there's setting and good. per business. momentum going the the got in talk mixed resi and that's the all positive growth I guess the

MikeNolan

at up It's look had quarter predict. little file Jack, Yes, refinance stronger to second fee over the X% the in you was of if it's XXXX. quarter. Mike. per A that residential our second hard of quarter, mix a interesting we closings

things being expect equal the down other would So didn't. that per would and have you fee it come file

we'll a that So that of on seeing in it's plays file. how percentage we next expect home a the quarter have hard had certainly I of refinance residential bit And the would quarters. benefit I from a to we're still in put could per the that fee two appreciation. higher in predict closings a second. than third And think price pressure the just out

see years but of the commercial, then bouncing really really. been past you couple just that more over tend up to it's consistently And around

JohnMicenko

to run curious side. lower and on or then operating Okay but a just the adding you expense. potentially sustainability a and in speak the the there people on one the or operating in driver was the rate, can OpEx positive address leverage personnel you about lot other some volumes, of to side a talk lower of of the time quarter the of Anything this

TonyPark

to fluctuate you our cost have stable pretty buckets sales, that variable ought been and that And then with unusual operating some are comes that's of and business one as major it's with largest that facilities in so Tony. cost and the businesses. And time other expense. we typically that's to category know as our a of the It's Jack. mind Yes, probably Nothing expenses.

We growth our some like is LoanCare have businesses which had at of our sub-servicer.

but only a some costs leverage seen operating little operating point an bit expenses other we've we so increase but personnel on there, in strong --we well. as are enjoying to of And not your are pretty

that would But in expect pretty third looks QX. so what saw I again, no to timer, similar we one the quarter

JohnMicenko

in buyback. maybe special add considered just potential that more Is his of appreciate it-- earlier sneak heels we to the would answer around something accelerated that. your One for could Bose's the on be table is questions? dividend Okay, also question on

TonyPark

would would I the give the which think I is be on answer table. everything same

in a and there. very is sophisticated returns that and been a Our we iteration time owned And recapitalize of you FIS our company returning, we Board of in number different a that our might a and now long dividend in we've special around a paid ways. to know back prior companies XXXX shareholders strong as

how again everything and the play on out. see it's things just table is we'll So,

Operator

from next The from Zelman Associates. Aron Mackenzie go question Please is & ahead.

MackenzieAron

the Thanks, quarter. on good congrats morning,

deal from Just all? ground a business, one perspective? seeing if impact how is kind an any question from or there's been dynamic Stewart any of agent give on you've on lingering, just the if competitive at update curious anything the noticed with us kind uncertainty impacting you Are of you that can potentially the thinking deals the

MikeNolan

Mackenzie, impacting business. are it's we Mike. Stewart's asking Are you think if you it's

MackenzieAron

dynamics if you all competitive in are moving maybe or perspective. that More away Stewarts up way picking from any are talent a from and just No. agents

MikeNolan

in Okay. Thanks been the that. that We've would a say clarification. consistent pretty lot of that. I seen not for it's

maintaining and really their our agents. kind view a I people very from and of done good of their think retaining Stewart job

their location we lot really you will, if So haven't at disruption, inside noticed of a this business.

MackenzieAron

rate just lastly then the tax And tax around in Should XX% year. great. right of end guidance? terms rate or, through from of the Okay, be the it

TonyPark

Tony. it's Mackenzie, Yes.

at would pretty think number. QX. year in than that balance XX.X% guided in I We I think is probably a of but I what came for little about I a the that's XX% model good the XX% toward lower

Operator

Please go SunTrust. is Hughes Our ahead. Mark next question from from

MarkHughes

I -- seen kind give they initial and to see the rush of on Obviously, is would you you steady refi any interest and in could off? Do rate trajectory. you've as is an interest come quarters. reflect rates you further potential really and parallels where Mike, think about on might I some volume historical perspective cuts. there's past but usually know down you don't just of times that you'd rate wondering tapers seen kind if very then that it wonder refis the you as thank can, are have volume we you for Yes, forecast I nice am much. of a the this spike coming if think you point

MikeNolan

Yes, XX% interesting cycles at right Mark. they holding were that refi now July June of and don't when that slow back second an sitting All to and XXX% at up question. I still continues that ServiceLink we're do second life at even It's June really What at to know we've gone looked refi were we're point seeing at these activity We have some they business, on down. a quarter that. about up and them kind June is our in that the look quarter XXX% and a ahead. over and number. number running opens over slightly in we And accelerate.

certainly July And environment. now pretty little think it's accelerated it's maybe of a legs in to it got a beyond probably, at we're bit But hard know just for and least seeing it predict to that. we So August. into

MarkHughes

higher Understood. commissions were this agency that. to And fractionally quarter. then Anything

MikeNolan

I there's that And they benefit like trends the just similar direct what And just to very see don't there on anything the agency we think think we the refinancing side. we've I noticed. activity do. from are

TonyPark

still XX% influence think XX%. it spread the I run split. where little We we're somewhere could depending that getting on we're geography And will within bit that in depend because that revenue to And typically wise, range. on more a

Operator

of Your from Please next John from question go line Stephens. is ahead. the Campbell

JohnCampbell

Good morning. on great quarter. guys. Hey, Congrats a

little on the just the to I left On maybe margin that total bit. want a unpack

maybe you headwind investment could clearly refi of positive business? guys centralized helps saw to much the ServiceLink the from impact and talk then you a So but you from income the how

TonyPark

Yes.

in whereas I little business title mid range think margin maybe ServiceLink XX% that in different somewhere on to because in of a for of Total it is bit low the if ServiceLink, we're you headwind. operates somewhere basis business our businesses, the standalone without runs a a took a the quarter. number there XX%

other some that business. business, have look just XX% have do is that's I you look the somewhere we it's the mean at margin is which the business you field if of single if digit that property have And the So services refi in at and refi ServiceLink businesses which XX% you But which a range. appraisal lower then and title in margin a over preservation because, margin business. business runs you

And which and that then as we mode headwind, you the in on bit LoanCare margin loans been if will growth assimilate a on sort have that. little is there's more you of and of take

that's in range. the XX% so And roughly been

headwind why bit you that's have so little maybe And a of currently there.

And looking think I strong forward side. could continued and a see performance there. see title extent even I run; ServiceLink on refi the on you'll to the margin close that continue of us we out on expanding that XX%

JohnCampbell

call and bit, take or might but or escrow And to back looks new there? anything like out marker? guess the escrow have purchase other a been to just say line, that errors price driven Are mostly I by then looks you is better offerings like within on just helpful. products it improving Okay. it's That's escrow, that bounced able

MikeNolan

Nothing pieces And lot item. there. are a new comprise there that in of different really line Yes. that

disclosure a of requirement now you'll number in that revenue that breaks new filings fact, component. see down In different our there's into SEC our a

We've side some can at see, so and valuations. Yes, got that. We've home see got the escrow We've we've got things, got relate other business. purchase LoanCare. title of the market but what And default fees you you if warranty. really drives drives you look

We services. field have

number some businesses. really because versus different increase you X.X% escrow had of that's And just there. businesses So other year-over-year a those have in and a of we a other different QX direct fees. premium in X.X% in increase dynamics And in

Operator

from go is Compass ahead Gamaitoni question Chris Point. Next from Please

ChrisGamaitoni

my the Good Is for any Thanks call. color trajectory. the for quarter? business morning, everyone. real Revenue estate there technology taking side on

RandyQuirk

a Randy. Yes. This is

year-over-year we side, technology up X%. of growth are realtors, up we're growth There X%. of had the to are overall, client a platforms On revenue XX%, sold lead we teams the

the to through was halfway It the based bit start of progressing little slow XXXX. the back year it's of half a So year. on-- at a

Some slowdown side, in in of estate well We the on real will the believe out second coming half purchase first the year. we're the but side, accelerate further half. on the it

ChrisGamaitoni

getting below Obviously, doesn't the target capital to have your still just structure. back capital buyback think said you And right. X All XX% that. around capital about close even How to? with buffer we're you'd points is where below the in to think manage Stewart to range X levels debt do you or Yes, your range. I is it nice well to historically percentage target have is. that future? debt you the something just Is that or cap a to actually

TonyPark

It's Tony. Chris. Hey,

but right to XX.X% range or in have. when I a it's we a our decided shareholder allows is that. a We've from along borrow we to sort And where we've to we if see It sure think wouldn't title years. deal XX% to don't high came is to for borrow, just bought debt acquisition I would flexibility. We company flex nice the multiple an of acquisitions us that acquisitive have an over be course or buffer ranged of us. cap wouldn't, to we I come been surprised now of XX-plus XX% which comfortable we along certainly but some a XX% would return very I'm then if Chicago sit fact today. think on anywhere

ChrisGamaitoni

can real deal, industry, still real on market and all that the broad. something the estate? be that or Okay you've forward the moving related be residential real tangentially holding would nationals is previously estate communicated that that to But to focused I in is estate relate in think

TonyPark

Yes.

Operator

Your Geoffrey is final Partners. Dowling and Please question go ahead. from Dunn from

GeoffreyDunn

Thanks.

revisit. per on July. in Mike, purchase Just early the refi I details first the and number a day missed

was was down a either up X% said I over and XX%? think it purchase refi you

MikeNolan

then Yes, Geoff. in XX% first was of weeks last Sure, refi couple and X% purchase July up the July. down over was

GeoffreyDunn

to Okay, then thanks. I you And Tony to wanted come about said buyback. back something

I think Is an did per you day it right? about that I for in XX,XXX hear -- indicated QX. expectation

TonyPark

Yes.

and at revolution as heard as for see get things that's this what And right. $X once You to a we the much of again I've modeled waiting Stewart a year not point it really is that we're out. play again really we'll to kind forecast end at how billion. But then about on in point that

GeoffreyDunn

And it better I to want the course wanting me of indicated odd plus that to period. that looking XX,XXX didn't probably to shares deal the position per be the before deal shares, even XX I think if guess idea repurchase buyback the I stock the million you in of day. you'd to one-year issue Stewart Stewart that at an a in of buyback seems more amount Bill would had ask you're Okay. close. And the over because to of in

forecast and wondering just least the I'm given yearend your in previous going isn't that comments at level at cash why So your resources?

TonyPark

Yes. almost placeholder. Again, it was a

here? put are too decides, the much a $X okay, billion I know into buyback? expectation I we'll I be just sure whether think Stewart How or to by do know contract, resolution that once Stewart knowing our want aggressive point, not on policy? the XX,XXX of a fourth my know And our we'll wouldn't we than we happen. we be handle day so the number a absent read the at what sort happen on which capital point How this we'll have And dividend in to where pretty pretty do start of stand. to the and Board there are Stewart change soon, of other going would will looks was going we happens a it some roughly at in quarter we at doesn't that

GeoffreyDunn

look if so things or of for has Mike, refi seen surprised leverage time. on highest because metrics you, activity extent some tightly ran levels you or the upside? Randy just per was the of of Got the we've the one okay. the quarter you the Is that at headcount, then counts And at this order either you

RandyQuirk

Sure. I'll is take Randy. that. This

closing where XX. As on you opening employee our the metrics, know, the the second we're opening order quickly count per and second XX through standards June; you're up correct closing in our are in on quarter. we XX productivity And accelerated quarter orders XX

have to that XX the up quarter earlier, we'll quickly. What maybe add down we'll the can on said we that bring so to XX.X. range that that we about have closing have as to we project side staff Mike really number end pretty increased productivity know that the or from XX closings, is so third we'll So

comes it hot you as quickly, really of through it can number You up months. can't a run but it sustain

the that to leads our always to back, able operate do again of service just we want conservatively, that holding we'll been be So staffing the not care levels we we've but deals, but employees. and close to to customers take

GeoffreyDunn

a QX. makes directionally of And the expense what a order like versus the suggesting margin line you have about QX been keeping flat. margin lag seemed QX, that but as of until I in with an bit keeping think seems think this you high it that you've flat kind So

RandyQuirk

quarter; brought it Yes. There a board month. correct believe of I second we extent like roughly went we XXX will we the be on per as employees were through you're the some XXX

So slipped some into just quarter. just There's event. time third at on the the stack-up

of Q&A End

Operator

you. And Please are ahead questions. with remark. at there go you. time, Thank closing further no this Thank

Randy Quirk

for commercial continue nearly financial was in half trend type improving well-positioned results we strong joining the are quarter XXXX. second open our today. second Thank orders continued in business second and strength our for and and of quarterly purchase to The With quarter as the us XX strong strongest years you business. performance title opened, to produce we orders refinance of enter in orders opened,

Operator

And executive today. that your for conference does and you. teleconference. AT&T participation Thank our Thank you for for using conclude

now may disconnect. You

Dan Murphy	Senior Vice President and Treasurer
Randy Quirk	Chief Executive Officer
Mike Nolan	President
Tony Park	Executive Vice President and Chief Financial Officer
Mark DeVries	Barclays
George Bose	KBW
Jason Deleeuw	Piper Jaffray
John Micenko	SIG
Mackenzie Aron	Zelman & Associates
Mark Hughes	SunTrust
John Campbell	Stephens
Chris Gamaitoni	Compass Point
Geoffrey Dunn	Dowling

Fidelity National Financial (FNF) 17 Jul 192019 Q2 Earnings call transcript