FNF Group Reports Second Quarter 2015 Adjusted EPS of $0.65, Adjusted Pre-Tax Title Margin of 16.2%, BKFS Adjusted Revenue Growth of 7% and Adjusted EBITDA Margin of 43.5%
JACKSONVILLE, Fla., July 29, 2015 /PRNewswire/ -- 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, 2015.
- Total revenue of approximately $2.0 billion in the second quarter versus $1.7 billion in the second quarter of 2014
- Adjusted second quarter net earnings of $187 million versus adjusted net earnings of $141 million for the second quarter of 2014
- Adjusted second quarter diluted EPS of $0.65 versus adjusted diluted EPS of $0.50 in the second quarter of 2014
- Second quarter free cash flow provided of $289 million versus $223 million provided in the second quarter of 2014
Title
- Approximately $1.8 billion in total revenue, adjusted pre-tax earnings of $286 million and adjusted pre-tax title margin of 16.2% for the second quarter versus approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $208 million and an adjusted pre-tax title margin of 14.2% in the second quarter of 2014
- Adjusted pre-tax title margin of 16.2% was a 200 basis point improvement over the second quarter 2014 adjusted pre-tax title margin of 14.2%
- ServiceLink generated $224 million in revenue, adjusted EBITDA of $34 million, an adjusted EBITDA margin of 15%, adjusted pre-tax earnings of $29 million and an adjusted pre-tax margin of 13% for the second quarter
- Open orders per day of 8,750 for the second quarter versus 8,031 open orders per day for the second quarter of 2014
- Closed orders per day of 6,375 for the second quarter versus 5,344 closed orders per day for the second quarter of 2014
- Second quarter purchase orders opened and closed increased by 7% and 12%, respectively, versus the second quarter of 2014; purchase orders opened and closed increased by 7% and 11%, respectively, versus the second quarter of 2014 excluding ServiceLink default related purchase orders
- Total commercial revenue of $258 million, a 41% increase over total commercial revenue in the second quarter of 2014; second quarter national commercial title revenue of $150 million, a 30% increase from the second quarter of 2014, driven by a 22% improvement in the commercial fee per file and a 6% increase in closed orders; open national commercial orders decreased by 5% over the prior year
- Overall second quarter average fee per file of $2,026, a 2% increase versus the second quarter of 2014
- Title claims paid of $70 million, a decrease of $9 million, or 11%, from the second quarter of 2014
Title Orders
|
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% | ||||||
|
Direct Orders Opened * |
Direct Orders Closed * | |||||||||
|
Month |
/ (% Purchase) |
/ (% Purchase) | ||||||||
|
April 2014 |
172,000 |
60% |
113,000 |
59% | ||||||
|
May 2014 |
170,000 |
60% |
112,000 |
61% | ||||||
|
June 2014 |
172,000 |
60% |
117,000 |
62% | ||||||
|
Second Quarter 2014 |
514,000 |
60% |
342,000 |
61% | ||||||
|
* 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 2015 - Total Commercial |
50,800 |
32,400 |
$258 |
$8,000 | |||||||||||
|
Second Quarter 2014 - Total Commercial |
— |
— |
$183 |
— | |||||||||||
|
Second Quarter 2015 - National Commercial |
21,200 |
12,500 |
$150 |
$12,000 | |||||||||||
|
Second Quarter 2014 - National Commercial |
22,200 |
11,800 |
$115 |
$9,800 | |||||||||||
|
* Total commercial order and fee per file tracking began in January 2015 | |||||||||||||||
BKFS
- Adjusted revenue of $235 million, led by Servicing Technology revenue of approximately $160 million
- Adjusted revenue growth of 7% for the second quarter compared to the second quarter of 2014, led by strong growth in Origination Technology and Data & Analytics
- Adjusted EBITDA of $102 million and adjusted EBITDA margin of 43.5%
"We generated a 16.2% adjusted pre-tax title margin this quarter in a strong commercial environment and a steadily improving residential real estate market," said Chairman William P. Foley, II. "The performance of our title business this quarter gives us further confidence that we can continue to generate pre-tax title margins in the 15%-20% range as we experience further strength in the residential purchase market. We remain the most profitable title insurance company and believe our financial performance should warrant a premium market multiple versus our title company peers.
"Black Knight continues to perform to our high expectations, generating 7% adjusted revenue growth and a 43.5% adjusted EBITDA margin in the second quarter. We completed the Black Knight IPO in May and look forward to FNF shareholders sharing in the benefit of Black Knight trading as a stand-alone, public company.
"In conjunction with the IPO, Black Knight repaid FNF $1.5 billion in intercompany and mirror notes and FNF utilized $1.1 billion of those proceeds to fully repay the term loan that was borrowed in conjunction with the January 2014 LPS acquisition. Additionally, we repurchased 1.3 million shares of FNF common stock between June 1st and the first week of July and we expect to continue repurchasing FNF shares throughout the remainder of 2015."
Conference CallWe will host a call with investors and analysts to discuss second quarter 2015 FNF Core results on Thursday, July 30, 2015, beginning at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at www.fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com. The telephone replay will be available from 1:00 p.m. Eastern time on July 30, 2015, through August 6, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 362665.
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, LLC and ServiceLink Holdings, LLC. FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, J. Alexander's, LLC , Ceridian HCM, Inc., Fleetcor Technologies, Inc. and Digital Insurance, Inc. More information about FNF and FNFV can be found at www.fnf.com.
Use of Non-GAAP Financial InformationGenerally 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 FactorsThis 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 GROUPSECOND QUARTER SEGMENT INFORMATION(In millions, except order information in thousands)(Unaudited) | ||||||||||||||||
|
Total FNF Group |
Title |
BKFS |
FNF GroupCorporate 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 |
591 |
232 |
4 |
||||||||||||
|
Total title and escrow |
1,971 |
1,735 |
232 |
4 |
||||||||||||
|
Interest and investment income |
32 |
32 |
— |
— |
||||||||||||
|
Realized gains and losses (2) |
(8) |
1 |
(5) |
(4) |
||||||||||||
|
Total revenue |
1,995 |
1,768 |
227 |
— |
||||||||||||
|
Personnel costs |
652 |
543 |
102 |
7 |
||||||||||||
|
Agent commissions |
451 |
451 |
— |
— |
||||||||||||
|
Other operating expenses |
453 |
403 |
41 |
9 |
||||||||||||
|
Depreciation and amortization |
87 |
37 |
50 |
— |
||||||||||||
|
Claim loss expense |
69 |
69 |
— |
— |
||||||||||||
|
Interest expense |
31 |
— |
11 |
20 |
||||||||||||
|
Total expenses |
1,743 |
1,503 |
204 |
36 |
||||||||||||
|
Pre-tax earnings (loss) from continuing operations (3) |
$ |
252 |
$ |
265 |
$ |
23 |
$ |
(36) |
||||||||
|
Non-GAAP adjustments before taxes |
||||||||||||||||
|
Realized (gain) loss, net adjustment |
$ |
8 |
$ |
(1) |
$ |
5 |
$ |
4 |
||||||||
|
Deferred revenue add back and management fee |
4 |
1 |
3 |
— |
||||||||||||
|
Purchase price amortization |
44 |
21 |
23 |
— |
||||||||||||
|
IPO costs & profits interest acceleration |
10 |
— |
10 |
— |
||||||||||||
|
Total non-GAAP adjustments before taxes |
$ |
66 |
$ |
21 |
$ |
41 |
$ |
4 |
||||||||
|
Adjusted pre-tax earnings (loss) from continuing ops. |
$ |
318 |
$ |
286 |
$ |
64 |
$ |
(32) |
||||||||
|
Adjusted pre-tax margin from continuing operations |
15.9 |
% |
16.2 |
% |
27.2 |
% |
— |
|||||||||
|
Purchase price amortization |
(44) |
(21) |
(23) |
— |
||||||||||||
|
Depreciation and amortization |
87 |
37 |
50 |
— |
||||||||||||
|
Interest expense |
31 |
— |
11 |
20 |
||||||||||||
|
Adjusted EBITDA |
$ |
392 |
$ |
302 |
$ |
102 |
$ |
(12) |
||||||||
|
Adjusted EBITDA margin |
19.5 |
% |
17.1 |
% |
43.5 |
% |
— |
|||||||||
|
ServiceLink non-GAAP reconciliations: |
||||||||||||||||
|
ServiceLink pre-tax earnings |
$ |
10 |
||||||||||||||
|
Depreciation and amortization |
23 |
|||||||||||||||
|
ServiceLink EBITDA |
$ |
33 |
||||||||||||||
|
Management fee |
1 |
|||||||||||||||
|
ServiceLink Adjusted EBITDA |
$ |
34 |
||||||||||||||
|
ServiceLink pre-tax earnings |
$ |
10 |
||||||||||||||
|
Purchase price amortization |
18 |
|||||||||||||||
|
Management fee |
1 |
|||||||||||||||
|
ServiceLink adjusted pre-tax earnings |
$ |
29 |
||||||||||||||
|
1. |
BKFS also reported adjusted revenue of $235 million, which includes $3 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA |
|
2. |
BKFS recorded the $5 million write-off of bond premium interest in other expense |
|
3. |
BKFS reported pre-tax earnings of $8 million, which includes $15 million of intercompany interest expense that was eliminated in FNF consolidation |
|
FNF GROUPSECOND 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 |
$ |
265 |
$ |
23 |
$ |
(36) | ||||||||
|
Income tax expense (benefit) |
95 |
97 |
— |
(2) | ||||||||||||
|
Non-controlling interests |
(3) |
(5) |
2 |
— | ||||||||||||
|
Net earnings (loss) attributable to FNF Group common shareholders |
$ |
160 |
$ |
173 |
$ |
21 |
$ |
(34) | ||||||||
|
EPS attributable to FNF Group common shareholders - basic |
$ |
0.57 |
$ |
0.62 |
$ |
0.07 |
$ |
(0.12) | ||||||||
|
EPS attributable to FNF Group common shareholders - diluted |
$ |
0.56 |
$ |
0.60 |
$ |
0.08 |
$ |
(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 |
$ |
173 |
$ |
21 |
$ |
(34) | ||||||||
|
Total non-GAAP, pre-tax adjustments |
66 |
21 |
41 |
4 | ||||||||||||
|
Noncontrolling interest on non-GAAP adjustments |
(23) |
(7) |
(16) |
— | ||||||||||||
|
Income taxes on non-GAAP adjustments |
(16) |
(5) |
(9) |
(2) | ||||||||||||
|
Total non-GAAP adjustments |
27 |
9 |
16 |
2 | ||||||||||||
|
Adjusted net earnings (loss) attributable to FNF Group common shareholders |
$ |
187 |
$ |
182 |
$ |
37 |
$ |
(32) | ||||||||
|
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: |
$ |
330 |
||||||||||||||
|
Non-GAAP adjustments: |
||||||||||||||||
|
IPO costs |
4 |
|||||||||||||||
|
THL Management fee |
1 |
|||||||||||||||
|
Total non-GAAP adjustments |
5 |
|||||||||||||||
|
Adjusted cash flows from operations |
335 |
|||||||||||||||
|
Capital expenditures |
46 |
|||||||||||||||
|
Free cash flow |
$ |
289 |
||||||||||||||
|
FNF GROUPSECOND 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, 2014 |
||||||||||||||||
|
Direct title premiums |
$ |
433 |
$ |
433 |
$ |
— |
$ |
— |
||||||||
|
Agency title premiums |
518 |
518 |
— |
— |
||||||||||||
|
Escrow, title related and other fees (1) |
689 |
481 |
213 |
(5) |
||||||||||||
|
Total title and escrow |
1,640 |
1,432 |
213 |
(5) |
||||||||||||
|
Interest and investment income |
33 |
33 |
— |
— |
||||||||||||
|
Total revenue |
1,673 |
1,465 |
213 |
(5) |
||||||||||||
|
Personnel costs |
587 |
474 |
110 |
3 |
||||||||||||
|
Agent commissions |
395 |
395 |
— |
— |
||||||||||||
|
Other operating expenses |
386 |
329 |
48 |
9 |
||||||||||||
|
Depreciation and amortization |
68 |
35 |
32 |
1 |
||||||||||||
|
Claim loss expense |
57 |
57 |
— |
— |
||||||||||||
|
Interest expense |
31 |
— |
7 |
24 |
||||||||||||
|
Total expenses |
1,524 |
1,290 |
197 |
37 |
||||||||||||
|
Pre-tax earnings (loss) from continuing operations (2) |
$ |
149 |
$ |
175 |
$ |
16 |
$ |
(42) |
||||||||
|
Non-GAAP adjustments before taxes |
||||||||||||||||
|
Deferred revenue add back |
4 |
— |
4 |
— |
||||||||||||
|
Severance expense |
3 |
1 |
2 |
— |
||||||||||||
|
Synergy accrual |
26 |
12 |
11 |
3 |
||||||||||||
|
Merger transaction costs |
9 |
7 |
2 |
— |
||||||||||||
|
Premium tax settlement |
(8) |
(8) |
— |
— |
||||||||||||
|
Other legal matters |
14 |
— |
8 |
6 |
||||||||||||
|
Purchase price amortization |
30 |
21 |
9 |
— |
||||||||||||
|
Total non-GAAP adjustments before taxes |
$ |
78 |
$ |
33 |
$ |
36 |
$ |
9 |
||||||||
|
Adjusted pre-tax earnings (loss) from continuing operations |
$ |
227 |
$ |
208 |
$ |
52 |
$ |
(33) |
||||||||
|
Adjusted pre-tax margin from continuing operations |
13.5 |
% |
14.2 |
% |
24.0 |
% |
— |
|||||||||
|
Purchase price amortization |
(30) |
(21) |
(9) |
— |
||||||||||||
|
Depreciation and amortization |
68 |
35 |
32 |
1 |
||||||||||||
|
Interest expense |
31 |
— |
7 |
24 |
||||||||||||
|
Adjusted EBITDA (3) |
$ |
296 |
$ |
222 |
$ |
82 |
$ |
(8) |
||||||||
|
Adjusted EBITDA margin |
17.7 |
% |
15.2 |
% |
37.8 |
% |
— |
|||||||||
|
1. |
BKFS also reported adjusted revenue of $218 million, which includes $4 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA; FNF reports in millions which can cause small rounding differences |
|
2. |
BKFS reported a pre-tax loss of $24 million, which includes $25 million of intercompany interest expense that was eliminated in FNF consolidation and a $15 million LPS related purchase depreciation adjustment that FNF did not book due to immateriality |
|
3. |
BKFS adjusted EBITDA adds back stock based compensation of $2 million and FNF reports in millions which can cause small rounding differences |
|
FNF GROUPSECOND QUARTER SEGMENT INFORMATION(In millions, except order information in thousands)(Unaudited) | |||||||||||||
|
Total FNFGroup |
Title |
BKFS |
FNF GroupCorporate and Other | ||||||||||
|
Three Months Ended |
|||||||||||||
|
June 30, 2014 |
|||||||||||||
|
Pre-tax loss from continuing operations |
$ |
149 |
$ |
175 |
$ |
16 |
$ |
(42) | |||||
|
Income tax expense |
55 |
50 |
— |
5 | |||||||||
|
Earnings from equity investments |
2 |
2 |
— |
— | |||||||||
|
Loss from discontinued operations, net of tax |
(1) |
(1) |
— |
— | |||||||||
|
Non-controlling interests |
(14) |
(9) |
(5) |
— | |||||||||
|
Net earnings (loss) attributable to Old FNF common shareholders |
$ |
109 |
$ |
135 |
$ |
21 |
$ |
(47) | |||||
|
EPS attributable to Old FNF common shareholders - basic |
$ |
0.39 |
$ |
0.49 |
$ |
0.07 |
$ |
(0.17) | |||||
|
EPS attributable to Old FNF common shareholders - diluted |
$ |
0.39 |
$ |
0.48 |
$ |
0.07 |
$ |
(0.16) | |||||
|
Old FNF weighted average shares - basic |
275 |
||||||||||||
|
Old FNF weighted average shares - diluted |
283 |
||||||||||||
|
Net earnings (loss) attributable to Old FNF common shareholders |
$ |
109 |
$ |
135 |
$ |
21 |
$ |
(47) | |||||
|
Total non-GAAP, pre-tax adjustments |
78 |
33 |
36 |
9 | |||||||||
|
Income taxes on non-GAAP adjustments |
(19) |
(7) |
(8) |
(4) | |||||||||
|
Noncontrolling interest on non-GAAP adjustments |
(27) |
(14) |
(13) |
— | |||||||||
|
Total non-GAAP adjustments |
32 |
12 |
15 |
5 | |||||||||
|
Adjusted net earnings (loss) attributable to Old FNF common shareholders |
$ |
141 |
$ |
147 |
$ |
36 |
$ |
(42) | |||||
|
Adjusted EPS attributable to Old FNF common shareholders - diluted |
$ |
0.50 |
$ |
0.52 |
$ |
0.13 |
$ |
(0.15) | |||||
|
Direct orders opened (000's) |
514 |
514 |
|||||||||||
|
Direct orders closed (000's) |
342 |
342 |
|||||||||||
|
Fee per file |
$ |
1,982 |
$ |
1,982 |
|||||||||
|
Actual title claims paid |
$ |
79 |
$ |
79 |
|||||||||
|
Cash flows provided by operations: |
$ |
190 |
|||||||||||
|
Non-GAAP adjustments: |
|||||||||||||
|
Transaction costs related to acquisition of LPS |
3 |
||||||||||||
|
Severance costs related to acquisition of LPS |
3 |
||||||||||||
|
Synergy bonus payment |
31 |
||||||||||||
|
Premium tax settlement |
15 |
||||||||||||
|
THL management fee |
1 |
||||||||||||
|
Other legal matters |
6 |
||||||||||||
|
Total non-GAAP adjustments |
59 |
||||||||||||
|
Adjusted cash flows from operations |
249 |
||||||||||||
|
Capital expenditures |
26 |
||||||||||||
|
Free cash flow |
$ |
223 |
|||||||||||
|
FNF GROUPYTD QUARTER SEGMENT INFORMATION(In millions, except order information in thousands)(Unaudited) | ||||||||||||||||
|
Total FNFGroup |
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 |
1,063 |
459 |
— |
||||||||||||
|
Total title and escrow |
3,524 |
3,065 |
459 |
— |
||||||||||||
|
Interest and investment income |
62 |
62 |
— |
— |
||||||||||||
|
Realized gains and losses (2) |
(8) |
1 |
(5) |
(4) |
||||||||||||
|
Total revenue |
3,578 |
3,128 |
454 |
(4) |
||||||||||||
|
Personnel costs |
1,237 |
1,026 |
199 |
12 |
||||||||||||
|
Agent commissions |
784 |
784 |
— |
— |
||||||||||||
|
Other operating expenses |
825 |
741 |
78 |
6 |
||||||||||||
|
Depreciation and amortization |
170 |
74 |
95 |
1 |
||||||||||||
|
Claim loss expense |
120 |
120 |
— |
— |
||||||||||||
|
Interest expense |
60 |
— |
19 |
41 |
||||||||||||
|
Total expenses |
3,196 |
2,745 |
391 |
60 |
||||||||||||
|
Pre-tax earnings (loss) from continuing operations (3) |
$ |
382 |
$ |
383 |
$ |
63 |
$ |
(64) |
||||||||
|
Non-GAAP adjustments before taxes |
||||||||||||||||
|
Realized (gain) loss, net adjustment |
8 |
$ |
(1) |
5 |
4 |
|||||||||||
|
Deferred revenue add back and management fee |
7 |
1 |
6 |
— |
||||||||||||
|
Purchase price amortization |
87 |
43 |
44 |
— |
||||||||||||
|
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 |
$ |
426 |
$ |
128 |
$ |
(60) |
||||||||
|
Adjusted pre-tax margin from continuing operations |
13.8 |
% |
13.6 |
% |
27.6 |
% |
— |
|||||||||
|
Purchase price amortization |
(87) |
(43) |
(44) |
— |
||||||||||||
|
Depreciation and amortization |
170 |
74 |
95 |
1 |
||||||||||||
|
Interest expense |
60 |
— |
19 |
41 |
||||||||||||
|
Adjusted EBITDA (4) |
$ |
637 |
$ |
457 |
$ |
198 |
$ |
(18) |
||||||||
|
Adjusted EBITDA margin |
17.7 |
% |
14.6 |
% |
42.7 |
% |
— |
|||||||||
|
1. |
BKFS also reported adjusted revenue of $464, which includes $5 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA |
|
2. |
BKFS recorded the $5 million write-off of bond premium interest in other expense |
|
3. |
BKFS reported pre-tax earnings of $23 million, which includes $40 million of intercompany interest expense that was eliminated in FNF consolidation |
|
4. |
BKFS adjusted EBITDA adds back stock based compensation of $3 million and FNF reports in millions which can cause small rounding differences |
|
FNF GROUPYTD QUARTER 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 loss from continuing operations |
$ |
382 |
$ |
383 |
$ |
63 |
$ |
(64) | ||||||||
|
Income tax expense |
142 |
140 |
— |
2 | ||||||||||||
|
Earnings from equity investments |
2 |
2 |
— |
— | ||||||||||||
|
Non-controlling interests |
(4) |
(11) |
7 |
— | ||||||||||||
|
Net earnings (loss) attributable to FNF Group common shareholders |
$ |
246 |
$ |
256 |
$ |
56 |
$ |
(66) | ||||||||
|
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 |
$ |
0.89 |
$ |
0.20 |
$ |
(0.23) | ||||||||
|
FNF Group weighted average shares - basic |
278 |
|||||||||||||||
|
FNF Group weighted average shares - diluted |
287 |
|||||||||||||||
|
Net earnings (loss) attributable to FNF Group common shareholders |
$ |
246 |
$ |
256 |
$ |
56 |
$ |
(66) | ||||||||
|
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 attributable to FNF Group common shareholders |
$ |
293 |
$ |
275 |
$ |
82 |
$ |
(64) | ||||||||
|
Adjusted EPS attributable to FNF Group common shareholders - diluted |
$ |
1.02 |
$ |
0.96 |
$ |
0.29 |
$ |
(0.23) | ||||||||
|
Direct orders opened (000's) |
1,138 |
1,138 |
||||||||||||||
|
Direct orders closed (000's) |
753 |
753 |
||||||||||||||
|
Fee per file |
$ |
1,938 |
$ |
1,938 |
||||||||||||
|
Actual title claims paid |
$ |
130 |
$ |
130 |
||||||||||||
|
Cash flows provided by operations: |
$ |
356 |
||||||||||||||
|
Non-GAAP adjustments: |
||||||||||||||||
|
IPO Cost |
4 |
|||||||||||||||
|
Management fee |
2 |
|||||||||||||||
|
Total non-GAAP adjustments |
6 |
|||||||||||||||
|
Adjusted cash flows from operations |
362 |
|||||||||||||||
|
Capital expenditures |
80 |
|||||||||||||||
|
Free cash flow |
$ |
282 |
||||||||||||||
|
FNF GROUPYTD QUARTER SEGMENT INFORMATION(In millions, except order information in thousands)(Unaudited) | ||||||||||||||||
|
Total FNF Group |
Title |
BKFS |
FNF GroupCorporateand Other | |||||||||||||
|
Six Months Ended |
||||||||||||||||
|
June 30, 2014 |
||||||||||||||||
|
Direct title premiums |
$ |
784 |
$ |
784 |
$ |
— |
$ |
— |
||||||||
|
Agency title premiums |
922 |
922 |
— |
— |
||||||||||||
|
Escrow, title related and other fees (1) |
1,307 |
903 |
418 |
(14) |
||||||||||||
|
Total title and escrow |
3,013 |
2,609 |
418 |
(14) |
||||||||||||
|
Interest and investment income |
61 |
61 |
— |
— |
||||||||||||
|
Realized gains and losses |
2 |
2 |
— |
— |
||||||||||||
|
Total revenue |
3,076 |
2,672 |
418 |
(14) |
||||||||||||
|
Personnel costs |
1,200 |
936 |
254 |
10 |
||||||||||||
|
Agent commissions |
702 |
702 |
— |
— |
||||||||||||
|
Other operating expenses |
785 |
679 |
125 |
(19) |
||||||||||||
|
Depreciation and amortization |
169 |
73 |
94 |
2 |
||||||||||||
|
Claim loss expense |
110 |
110 |
— |
— |
||||||||||||
|
Interest expense |
61 |
— |
15 |
46 |
||||||||||||
|
Total expenses |
3,027 |
2,500 |
488 |
39 |
||||||||||||
|
Pre-tax earnings (loss) from continuing operations (2) |
$ |
49 |
$ |
172 |
$ |
(70) |
$ |
(53) |
||||||||
|
Non-GAAP adjustments before taxes |
||||||||||||||||
|
Realized (gain) loss, net adjustment |
(2) |
(2) |
— |
— |
||||||||||||
|
Deferred revenue add back |
8 |
— |
8 |
— |
||||||||||||
|
Severance expense |
41 |
15 |
26 |
— |
||||||||||||
|
Synergy accrual |
58 |
25 |
24 |
9 |
||||||||||||
|
Merger transaction costs |
52 |
29 |
49 |
(26) |
||||||||||||
|
Premium tax settlement |
(8) |
(8) |
— |
— |
||||||||||||
|
Other legal matters |
16 |
— |
8 |
8 |
||||||||||||
|
Purchase price amortization |
91 |
43 |
48 |
— |
||||||||||||
|
Total non-GAAP adjustments before taxes |
$ |
256 |
$ |
102 |
$ |
163 |
$ |
(9) |
||||||||
|
Adjusted pre-tax earnings (loss) from continuing operations |
$ |
305 |
$ |
274 |
$ |
93 |
$ |
(62) |
||||||||
|
Adjusted pre-tax margin from continuing operations |
9.9 |
% |
10.3 |
% |
22.1 |
% |
— |
|||||||||
|
Purchase price amortization |
(91) |
(43) |
(48) |
— |
||||||||||||
|
Depreciation and amortization |
169 |
73 |
94 |
2 |
||||||||||||
|
Interest expense |
61 |
— |
15 |
46 |
||||||||||||
|
Adjusted EBITDA (3) |
$ |
444 |
$ |
304 |
$ |
154 |
$ |
(14) |
||||||||
|
Adjusted EBITDA margin |
14.4 |
% |
11.4 |
% |
36.6 |
% |
— |
|||||||||
|
1. |
BKFS also reported adjusted revenue of $425 million, which includes $8 million of deferred revenue; adjusted revenue is used to calculate adjusted EBITDA; FNF reports in millions which can cause small rounding differences |
|
2. |
BKFS reported a pre-tax loss of $120 million, which includes $50 million of intercompany interest expense that was eliminated in FNF consolidation |
|
3. |
BKFS adjusted EBITDA adds back stock based compensation of $3 million and FNF reports in millions which can cause small rounding differences |
|
FNF GROUPYTD QUARTER SEGMENT INFORMATION(In millions, except order information in thousands)(Unaudited) | ||||||||||||
|
Total FNFGroup |
Title |
BKFS |
FNF Group Corporate and Other | |||||||||
|
Six Months Ended |
||||||||||||
|
June 30, 2014 |
||||||||||||
|
Pre-tax loss from continuing operations |
$ |
49 |
$ |
172 |
$ |
(70) |
$ |
(53) | ||||
|
Income tax expense (benefit) |
18 |
60 |
(11) |
(31) | ||||||||
|
Earnings from equity investments |
2 |
2 |
— |
— | ||||||||
|
Loss from discontinued operations, net of tax |
(1) |
(1) |
— |
— | ||||||||
|
Non-controlling interests |
(71) |
(31) |
(40) |
— | ||||||||
|
Net earnings (loss) attributable to Old FNF common shareholders |
$ |
103 |
$ |
144 |
$ |
(19) |
$ |
(22) | ||||
|
EPS attributable to Old FNF common shareholders - basic |
$ |
0.37 |
$ |
0.52 |
$ |
(0.07) |
$ |
(0.08) | ||||
|
EPS attributable to Old FNF common shareholders - diluted |
$ |
0.37 |
$ |
0.51 |
$ |
(0.07) |
$ |
(0.07) | ||||
|
Old FNF weighted average shares - basic |
275 |
|||||||||||
|
Old FNF weighted average shares - diluted |
282 |
|||||||||||
|
Net earnings (loss) attributable to Old FNF common shareholders |
$ |
103 |
$ |
144 |
$ |
(19) |
$ |
(22) | ||||
|
Total non-GAAP, pre-tax adjustments |
256 |
102 |
163 |
(9) | ||||||||
|
Income taxes on non-GAAP adjustments |
(61) |
(24) |
(40) |
3 | ||||||||
|
Noncontrolling interest on non-GAAP adjustments |
(95) |
(38) |
(57) |
— | ||||||||
|
Total non-GAAP adjustments |
100 |
40 |
66 |
(6) | ||||||||
|
Adjusted net earnings (loss) attributable to Old FNF common shareholders |
$ |
203 |
$ |
184 |
$ |
47 |
$ |
(28) | ||||
|
Adjusted EPS attributable to Old FNF common shareholders - diluted |
$ |
0.72 |
$ |
0.65 |
$ |
0.17 |
$ |
(0.10) | ||||
|
Direct orders opened (000's) |
982 |
982 |
||||||||||
|
Direct orders closed (000's) |
637 |
637 |
||||||||||
|
Fee per file |
$ |
1,924 |
$ |
1,924 |
||||||||
|
Actual title claims paid |
$ |
146 |
$ |
146 |
||||||||
|
Cash flows provided by operations: |
$ |
(4) |
||||||||||
|
Non-GAAP adjustments: |
||||||||||||
|
Transaction costs related to acquisition of LPS |
43 |
|||||||||||
|
Severance costs related to acquisition of LPS |
42 |
|||||||||||
|
Synergy bonus payment |
31 |
|||||||||||
|
Premium tax settlement |
15 |
|||||||||||
|
THL Management Fee |
2 |
|||||||||||
|
Other executive severance payment |
9 |
|||||||||||
|
Other legal matters |
8 |
|||||||||||
|
Total non-GAAP adjustments |
150 |
|||||||||||
|
Adjusted cash flows from operations |
146 |
|||||||||||
|
Capital expenditures |
42 |
|||||||||||
|
Free cash flow |
$ |
104 |
||||||||||
|
FNF GROUPQUARTERLY OPERATING STATISTICS(Unaudited) | ||||||||||||||||||||||||||||||||
|
Q2 2015 |
Q1 2015 |
Q4 2014 |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 | |||||||||||||||||||||||||
|
Quarterly Open Orders ('000's except % data) | ||||||||||||||||||||||||||||||||
|
Total open orders* |
560 |
578 |
452 |
481 |
514 |
469 |
391 |
474 |
||||||||||||||||||||||||
|
Total open orders per day* |
8.8 |
9.5 |
7.1 |
7.5 |
8.0 |
7.7 |
6.2 |
7.4 |
||||||||||||||||||||||||
|
Purchase % of open orders |
57 |
% |
47 |
% |
52 |
% |
60 |
% |
60 |
% |
57 |
% |
55 |
% |
56 |
% | ||||||||||||||||
|
Refinance % of open orders |
43 |
% |
53 |
% |
48 |
% |
40 |
% |
40 |
% |
43 |
% |
45 |
% |
44 |
% | ||||||||||||||||
|
Total closed orders* |
408 |
345 |
334 |
348 |
342 |
295 |
307 |
410 |
||||||||||||||||||||||||
|
Total closed orders per day* |
6.4 |
5.7 |
5.2 |
5.4 |
5.3 |
4.8 |
4.9 |
6.4 |
||||||||||||||||||||||||
|
Purchase % of closed orders |
54 |
% |
46 |
% |
57 |
% |
62 |
% |
61 |
% |
52 |
% |
56 |
% |
50 |
% | ||||||||||||||||
|
Refinance % of closed orders |
46 |
% |
54 |
% |
43 |
% |
38 |
% |
39 |
% |
48 |
% |
44 |
% |
50 |
% | ||||||||||||||||
|
Commercial (millions, except orders in '000's) | ||||||||||||||||||||||||||||||||
|
Total commercial revenue** |
$ |
258 |
$ |
213 |
$ |
274 |
$ |
225 |
$ |
183 |
$ |
175 |
— |
— |
||||||||||||||||||
|
Total commercial open orders** |
50.8 |
47.8 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
|
Total commercial closed orders** |
32.4 |
29.6 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||
|
National commercial revenue |
$ |
150 |
$ |
119 |
$ |
166.3 |
$ |
136 |
$ |
115 |
$ |
104 |
$ |
146 |
$ |
120 |
||||||||||||||||
|
National commercial open orders |
21.2 |
20.4 |
18.1 |
21.4 |
22.2 |
19.6 |
19.3 |
19.9 |
||||||||||||||||||||||||
|
National commercial closed orders |
12.5 |
11.1 |
12.7 |
12.8 |
11.8 |
10.2 |
12.8 |
12.6 |
||||||||||||||||||||||||
|
Total Fee Per File | ||||||||||||||||||||||||||||||||
|
Fee per file |
$ |
2,026 |
$ |
1,833 |
$ |
2,131 |
$ |
2,066 |
$ |
1,982 |
$ |
1,858 |
$ |
2,082 |
$ |
1,807 |
||||||||||||||||
|
Residential and local commercial fee per file |
$ |
1,711 |
$ |
1,538 |
$ |
1,699 |
$ |
1,739 |
$ |
1,750 |
$ |
1,559 |
$ |
1,676 |
$ |
1,562 |
||||||||||||||||
|
Residential fee per file |
$ |
1,514 |
$ |
1,330 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||
|
Total commercial fee per file** |
$ |
8,000 |
$ |
7,200 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||
|
National commercial fee per file |
$ |
12,000 |
$ |
10,700 |
$ |
13,100 |
$ |
10,600 |
$ |
9,800 |
$ |
10,200 |
$ |
11,400 |
$ |
9,500 |
||||||||||||||||
|
Total Staffing | ||||||||||||||||||||||||||||||||
|
Total field operations employees |
10,900 |
10,400 |
9,900 |
10,200 |
10,200 |
10,300 |
9,900 |
10,600 |
||||||||||||||||||||||||
|
FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing) | ||||||||||||||||||||||||||||||||
|
Total open orders* |
458 |
456 |
354 |
385 |
403 |
349 |
331 |
391 |
||||||||||||||||||||||||
|
Total open orders per day* |
7.2 |
7.5 |
5.6 |
6.0 |
6.3 |
5.7 |
5.3 |
6.1 |
||||||||||||||||||||||||
|
Purchase % of open orders |
65 |
% |
54 |
% |
60 |
% |
69 |
% |
71 |
% |
71 |
% |
65 |
% |
68 |
% | ||||||||||||||||
|
Refinance % of open orders |
35 |
% |
46 |
% |
40 |
% |
31 |
% |
29 |
% |
29 |
% |
35 |
% |
32 |
% | ||||||||||||||||
|
Total closed orders* |
334 |
277 |
273 |
282 |
272 |
219 |
263 |
323 | ||||||||||||||||||||||||
|
Total closed orders per day* |
5.2 |
4.5 |
4.3 |
4.4 |
4.3 |
3.6 |
4.2 |
5.0 | ||||||||||||||||||||||||
|
Purchase % of closed orders |
61 |
% |
52 |
% |
63 |
% |
70 |
% |
71 |
% |
67 |
% |
66 |
% |
64 |
% | ||||||||||||||||
|
Refinance % of closed orders |
39 |
% |
48 |
% |
37 |
% |
30 |
% |
29 |
% |
33 |
% |
34 |
% |
36 |
% | ||||||||||||||||
|
Fee per file |
2,264 |
2,055 |
2,382 |
2,306 |
2,227 |
2,151 |
2,260 |
2,028 |
||||||||||||||||||||||||
|
Total tile field operations employees |
9,600 |
9,100 |
8,700 |
8,900 |
8,700 |
8,600 |
8,900 |
9,300 |
||||||||||||||||||||||||
|
ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing) | ||||||||||||||||||||||||||||||||
|
Total Open Orders* |
102 |
122 |
98 |
96 |
111 |
120 |
60 |
83 |
||||||||||||||||||||||||
|
Total open orders per day* |
1.6 |
2.0 |
1.6 |
1.5 |
1.7 |
2.0 |
1.0 |
1.3 |
||||||||||||||||||||||||
|
Purchase % of open orders |
22 |
% |
17 |
% |
23 |
% |
23 |
20 |
7 |
— |
— |
|||||||||||||||||||||
|
Refinance % of open orders |
78 |
% |
83 |
% |
77 |
% |
77 |
% |
80 |
% |
93 |
% |
100 |
% |
100 |
% | ||||||||||||||||
|
Total closed orders |
74 |
68 |
61 |
66 |
70 |
76 |
44 |
87 |
||||||||||||||||||||||||
|
Total closed orders per day* |
1.2 |
1.1 |
1.0 |
1.0 |
1.1 |
1.2 |
0.7 |
1.4 |
||||||||||||||||||||||||
|
Purchase % of closed orders |
21 |
% |
22 |
% |
26 |
% |
24 |
18 |
6 |
— |
— |
|||||||||||||||||||||
|
Refinance % of closed orders |
79 |
% |
78 |
% |
74 |
% |
76 |
% |
82 |
% |
94 |
% |
100 |
% |
100 |
% | ||||||||||||||||
|
Fee per file |
958 |
921 |
1,027 |
1,052 |
1,038 |
1,009 |
1,013 |
989 |
||||||||||||||||||||||||
|
Total ServiceLink operating employees |
1,300 |
1,300 |
1,200 |
1,300 |
1,500 |
1,700 |
970 |
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 GROUPSUMMARY BALANCE SHEET INFORMATION(In millions) | ||||||||||||||||||||
|
FNF Group June 30, 2015 |
FNF Group December 31, 2014 | |||||||||||||||||||
|
(Unaudited) |
(Unaudited) | |||||||||||||||||||
|
Cash and investment portfolio |
$ |
5,012 |
$ |
4,360 |
||||||||||||||||
|
Goodwill |
4,536 |
4,514 |
||||||||||||||||||
|
Title plant |
393 |
393 |
||||||||||||||||||
|
Total assets |
12,658 |
11,944 |
||||||||||||||||||
|
Notes payable |
2,608 |
2,702 |
||||||||||||||||||
|
Reserve for title claim losses |
1,612 |
1,621 |
||||||||||||||||||
|
Secured trust deposits |
784 |
622 |
||||||||||||||||||
|
Redeemable non-controlling interests |
344 |
715 |
||||||||||||||||||
|
Non-redeemable non-controlling interests |
692 |
(58) |
||||||||||||||||||
|
Total equity and redeemable non-controlling interests |
5,820 |
5,272 |
||||||||||||||||||
|
Total equity attributable to common shareholders |
4,784 |
4,615 |
||||||||||||||||||
|
FNF Group June 30, 2015 |
FNFV June 30, 2015 |
Consolidated June 30, 2015 |
Consolidated December 31, 2014 | |||||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||||||
|
Cash and investment portfolio |
$ |
5,012 |
$ |
893 |
$ |
5,905 |
$ |
5,369 |
||||||||||||
|
Goodwill |
4,536 |
204 |
4,740 |
4,721 |
||||||||||||||||
|
Title plant |
393 |
— |
393 |
393 |
||||||||||||||||
|
Total assets |
12,658 |
1,739 |
14,397 |
13,868 |
||||||||||||||||
|
Notes payable |
2,608 |
221 |
2,829 |
2,827 |
||||||||||||||||
|
Reserve for title claim losses |
1,612 |
— |
1,612 |
1,621 |
||||||||||||||||
|
Secured trust deposits |
784 |
— |
784 |
622 |
||||||||||||||||
|
Redeemable non-controlling interests |
344 |
— |
344 |
715 |
||||||||||||||||
|
Non-redeemable non-controlling interests |
692 |
128 |
820 |
79 |
||||||||||||||||
|
Total equity and redeemable non-controlling interests |
5,820 |
1,291 |
7,111 |
6,788 |
||||||||||||||||
|
Total equity attributable to common shareholders |
4,784 |
1,163 |
5,947 |
5,994 |
||||||||||||||||
|
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 |
(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 |
328 |
330 |
(2) |
361 |
356 |
5 |
||||||||||||||||||
|
Fidelity National Financial, Inc.CONSOLIDATED SUMMARY OF EARNINGS(In millions)(Unaudited) | ||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||||
|
June 30, 2014 |
June 30, 2014 | |||||||||||||||||||||||
|
Consolidated |
Core |
FNFV |
Consolidated |
Core |
FNFV | |||||||||||||||||||
|
Direct title premiums |
$ |
433 |
$ |
433 |
$ |
— |
$ |
784 |
$ |
784 |
$ |
— |
||||||||||||
|
Agency title premiums |
518 |
518 |
— |
922 |
922 |
— |
||||||||||||||||||
|
Total title premiums |
951 |
951 |
— |
1,706 |
1,706 |
— |
||||||||||||||||||
|
Escrow, title-related and other fees |
715 |
689 |
26 |
1,361 |
1,307 |
54 |
||||||||||||||||||
|
Total title and escrow and other |
1,666 |
1,640 |
26 |
3,067 |
3,013 |
54 |
||||||||||||||||||
|
Restaurant revenue |
358 |
— |
358 |
712 |
— |
712 |
||||||||||||||||||
|
Interest and investment income |
36 |
33 |
3 |
65 |
61 |
4 |
||||||||||||||||||
|
Realized gains and losses |
(1) |
— |
(1) |
1 |
2 |
(1) |
||||||||||||||||||
|
Total revenue |
2,059 |
1,673 |
386 |
3,845 |
3,076 |
769 |
||||||||||||||||||
|
Personnel costs |
623 |
587 |
36 |
1,272 |
1,200 |
72 |
||||||||||||||||||
|
Other operating expenses |
407 |
386 |
21 |
825 |
785 |
40 |
||||||||||||||||||
|
Cost of restaurant revenue |
303 |
— |
303 |
603 |
— |
603 |
||||||||||||||||||
|
Agent commissions |
395 |
395 |
— |
702 |
702 |
— |
||||||||||||||||||
|
Depreciation and amortization |
84 |
68 |
16 |
201 |
169 |
32 |
||||||||||||||||||
|
Title claim loss expense |
57 |
57 |
— |
110 |
110 |
— |
||||||||||||||||||
|
Interest expense |
33 |
31 |
2 |
64 |
61 |
3 |
||||||||||||||||||
|
Total expenses |
1,902 |
1,524 |
378 |
3,777 |
3,027 |
750 |
||||||||||||||||||
|
Earnings from continuing operations before taxes |
157 |
149 |
8 |
68 |
49 |
19 |
||||||||||||||||||
|
Income tax expense (benefit) |
54 |
55 |
(1) |
14 |
18 |
(4) |
||||||||||||||||||
|
Earnings from continuing operations before equity investments |
103 |
94 |
9 |
54 |
31 |
23 |
||||||||||||||||||
|
(Loss) earnings from equity investments |
(5) |
2 |
(7) |
(36) |
2 |
(38) |
||||||||||||||||||
|
Net loss from continuing operations |
98 |
96 |
2 |
18 |
33 |
(15) |
||||||||||||||||||
|
Earnings (loss) from discontinued operations, net of tax |
5 |
(1) |
6 |
12 |
(1) |
13 |
||||||||||||||||||
|
Net loss |
103 |
95 |
8 |
30 |
32 |
(2) |
||||||||||||||||||
|
Non-controlling interests |
(9) |
(14) |
5 |
(60) |
(71) |
11 |
||||||||||||||||||
|
Net earnings (loss) attributable to common shareholders |
$ |
112 |
$ |
109 |
$ |
3 |
$ |
90 |
$ |
103 |
$ |
(13) |
||||||||||||
|
Cash flows provided by (used in) operations |
229 |
190 |
39 |
(11) |
(4) |
(7) |
||||||||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnf-group-reports-second-quarter-2015-adjusted-eps-of-065-adjusted-pre-tax-title-margin-of-162-bkfs-adjusted-revenue-growth-of-7-and-adjusted-ebitda-margin-of-435-300120550.html
SOURCE Fidelity National Financial, Inc.