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FNF Group Reports Fourth Quarter 2015 Adjusted EPS of $0.55, Adjusted Pre-Tax Title Margin of 13.8%, BKFS Revenue Growth of 8% and BKFS Adjusted EBITDA Margin of 44.9%
PR Newswire

JACKSONVILLE, Fla., Feb. 10, 2016 /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 twelve-month periods ended December 31, 2015.

  • Total revenue of approximately $1.9 billion in the fourth quarter versus $1.7 billion in the fourth quarter of 2014
  • Adjusted fourth quarter net earnings of $155 million versus adjusted net earnings of $144 million for the fourth quarter of 2014
  • Adjusted fourth quarter diluted EPS of $0.55 versus adjusted diluted EPS of $0.50 in the fourth quarter of 2014
  • Fourth quarter free cash flow provided of $184 million versus $167 million provided in the fourth quarter of 2014
  • Repurchased 2.4 million shares of FNF common stock for approximately $85 million in the fourth quarter; for the full-year 2015, repurchased 5.9 million shares for approximately $214 million

Title

  • Approximately $1.6 billion in total revenue, adjusted pre-tax earnings of $225 million and adjusted pre-tax title margin of 13.8% for the fourth quarter versus approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $217 million and an adjusted pre-tax title margin of 14.8% in the fourth quarter of 2014
  • Adjusted pre-tax title margin of 13.8% was a 100 basis point decline from the fourth quarter 2014 adjusted pre-tax title margin of 14.8%
  • ServiceLink generated $198 million in revenue, adjusted EBITDA of $25 million, an adjusted EBITDA margin of 13%, adjusted pre-tax earnings of $21 million and an adjusted pre-tax margin of 11% for the fourth quarter
  • Open orders per day of 7,000 for the fourth quarter versus 7,175 open orders per day for the fourth quarter of 2014
  • Closed orders per day of 5,413 for the fourth quarter versus 5,302 closed orders per day for the fourth quarter of 2014
  • Fourth quarter purchase orders opened and closed increased by 6% and 9%, respectively, versus the fourth quarter of 2014; for FNTG only (excluding ServiceLink), purchase orders opened and closed both increased by 9% versus the fourth quarter of 2014
  • Total commercial revenue of $303 million, a 11% increase over total commercial revenue in the fourth quarter of 2014; fourth quarter national commercial title revenue of $183 million, a 10% increase from the fourth quarter of 2014, driven by a 4% improvement in the commercial fee per file and a 6% increase in closed orders; open national commercial orders were essentially flat with the prior year
  • Overall fourth quarter average fee per file of $2,272, a 7% increase versus the fourth quarter of 2014
  • Title claims paid of $84 million, an increase of $8 million, or 11%, from the fourth quarter of 2014

 

Title Orders



Direct Orders Opened *


Direct Orders Closed *

Month


 / (% Purchase)


 / (% Purchase)

October 2015


167,000

55%


120,000

58%

November 2015


140,000

56%


102,000

57%

December 2015


134,000

54%


119,000

59%








Fourth Quarter 2015


441,000

55%


341,000

58%








 



Direct Orders Opened *


Direct Orders Closed *

Month


 / (% Purchase)


 / (% Purchase)

October 2014


176,000

53%


115,000

60%

November 2014


133,000

52%


97,000

56%

December 2014


143,000

51%


122,000

54%








Fourth Quarter 2014


452,000

52%


334,000

57%









* 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*

Fourth Quarter 2015 - Total Commercial



46,300




36,300




$303




$8,300

Fourth Quarter 2014 - Total Commercial









$274




















Fourth Quarter 2015 - National Commercial



18,100




13,400




$183




$13,600

Fourth Quarter 2014 - National Commercial



18,100




12,700




$166




$13,100




* Total commercial order and fee per file tracking began in January 2015

 

BKFS

  • Revenue of $238 million, led by Servicing Technology revenue of approximately $162 million
  • Revenue growth of 8% for the fourth quarter compared to the fourth quarter of 2014, led by strong growth in Closing Insight and Loan Origination Systems
  • Adjusted EBITDA of $106 million and adjusted EBITDA margin of 44.9%

"This quarter was a strong finish to another successful year for FNF," said Chairman William P. Foley, II.  "We generated a 13.8% adjusted pre-tax title margin this quarter and a 14.3% adjusted pre-tax title margin for the full-year 2015.  The commercial market remains very strong, with record fourth quarter total commercial revenue of more than $300 million and full-year 2015 total commercial revenue of more than $1 billion.  Our open and closed purchase orders, excluding ServiceLink, both grew by 9% in the fourth quarter and for the full-year 2015, open and closed purchase orders grew by 8% and 9%, respectively.  Refinance activity declined somewhat throughout the fourth quarter, although with the recent market volatility and decline in rates, refinance volumes have the potential to be more stable than most would have expected as we head into 2016.  If we continue to see a strong commercial market, further growth in the purchase market and some level of stability from the refinance market, we believe we can generate an adjusted pre-tax title margin above 15% in 2016.

"Black Knight continued its strong financial performance this quarter, generating 8% revenue growth, $106 million in adjusted EBITDA and a 44.9% adjusted EBITDA margin in the fourth quarter.  For the full-year, Black Knight generated revenue growth of 9%, adjusted EBITDA of $409 million and an adjusted EBITDA margin of 44%.  FNF's Black Knight ownership stake is currently worth approximately $2.3 billion, or approximately $8 per FNF share.  Black Knight's business fundamentals remain strong and we firmly believe that its high single-digit organic revenue growth rate, mid-40's EBITDA margins and predictability of earnings will allow Black Knight to continue to generate value for both its shareholders and FNF shareholders." 

Conference Call
We will host a call with investors and analysts to discuss fourth quarter 2015 FNF Group results on Thursday, February 11, 2016, 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 February 11, 2016, through February 18, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 383828.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV).  FNF is a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries.  FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States.  FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC.  FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc., Fleetcor Technologies, Inc., Digital Insurance, Inc. and Del Frisco's Restaurant Group, Inc.  More information about FNF and FNFV can be found at www.fnf.com.

Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted net earnings, adjusted EPS and free cash flow.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.

Forward-Looking Statements and Risk Factors

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.  The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak  U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries.

This press release should be read in conjunction with the press release filed for the results of FNFV on this same date as well as the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-Q, 10-K and other filings with the Securities and Exchange Commission.

FNF-E

 

 

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

 (Unaudited)









FNF Group

Corporate 

and Other



Total FNF

Group


Title


BKFS


Three Months Ended





December 31, 2015





Direct title premiums


$

521



$

521



$



$


Agency title premiums


592



592






Escrow, title related and other fees (1)


776



483



238



55


Total title and escrow


1,889



1,596



238



55











Interest and investment income


30



31





(1)


Realized gains and losses, net


14



14






Total revenue


1,933



1,641



238



54











Personnel costs


636



531



93



12


Agent commissions


452



452






Other operating expenses


437



345



42



50


Depreciation and amortization


90



36



51



3


Claim loss expense


61



61






Interest expense


31





15



16


Total expenses


1,707



1,425



201



81











Pre-tax earnings (loss) from continuing operations


$

226



$

216



$

37



$

(27)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


$

(14)



$

(14)



$



$


  Deferred revenue add back and management fee


3





3




  Purchase price amortization


46



23



23




 Total non-GAAP adjustments before taxes


$

35



$

9



$

26



$











  Adjusted pre-tax earnings (loss) from continuing ops.


$

261



$

225



$

63



$

(27)


  Adjusted pre-tax margin from continuing operations


13.6

%


13.8

%


26.1

%












Purchase price amortization


(46)



(23)



(23)




Depreciation and amortization


90



36



51



3


Interest expense


31





15



16











  Adjusted EBITDA


$

336



$

238



$

106



$

(8)


  Adjusted EBITDA margin


17.5

%


14.6

%


44.9

%












ServiceLink non-GAAP reconciliations:









ServiceLink pre-tax loss


$

(5)








Depreciation and amortization


23








ServiceLink EBITDA


18








Management fee / other expenses


7








ServiceLink Adjusted EBITDA


$

25

















ServiceLink pre-tax loss


$

(5)








Purchase price amortization


19








Management fee / other expenses


7








ServiceLink adjusted pre-tax earnings


$

21



















1.    BKFS also reported adjusted revenue of $240 million, which includes $2 million of deferred revenue

 

 

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF

Group


Title


BKFS


FNF Group

Corporate

 and Other

Three Months Ended





December 31, 2015





Pre-tax earnings (loss) from continuing operations


$

226



$

216



$

37



$

(27)


  Income tax expense (benefit)


73



79



18



(24)


  Earnings from equity investments


2



2






  Non-controlling interests


11



1



11



(1)











Net earnings (loss) attributable to FNF Group common shareholders


$

144



$

138



$

8



$

(2)











EPS attributable to FNF Group common shareholders - basic


$

0.52



$

0.50



$

0.03



$

(0.01)


EPS attributable to FNF Group common shareholders - diluted


$

0.51



$

0.49



$

0.03



$

(0.01)











FNF Group weighted average shares - basic


275








FNF Group weighted average shares - diluted


283

















Net earnings (loss) attributable to FNF Group common shareholders


$

144



$

138



$

8



$

(2)











 Total non-GAAP, pre-tax adjustments


35



9



26




  Noncontrolling interest on non-GAAP adjustments


(17)



(4)



(13)




  Income taxes on non-GAAP adjustments


(7)



(2)



(5)




Total non-GAAP adjustments


11



3



8













Adjusted net earnings (loss) attributable to FNF Group common shareholders


$

155



$

141



$

16



$

(2)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.55



$

0.50



$

0.06



$

(0.01)











Direct orders opened (000's)


441



441






Direct orders closed (000's)


341



341






Fee per file


$

2,272



$

2,272






Actual title claims paid


$

84



$

84















Cash flows provided by operations:


$

236

















Capital expenditures


52








Free cash flow


$

184








 

 

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF

Group


Title


BKFS


FNF Group

Corporate

and Other

Three Months Ended





December 31, 2014





Direct title premiums


$

478



$

478



$



$


Agency title premiums


494



494






Escrow, title related and other fees


679



461



220



(2)


Total title and escrow


1,651



1,433



220



(2)











Interest and investment income


33



33






Realized gains and losses, net


4



(4)





8


Total revenue


1,688



1,462



220



6











Personnel costs


596



483



107



6


Agent commissions


373



373






Other operating expenses


371



330



40



1


Depreciation and amortization


83



36



46



1


Claim loss expense


59



59






Interest expense


29





8



21


Total expenses


1,511



1,281



201



29











Pre-tax earnings (loss) from continuing operations


$

177



$

181



$

19



$

(23)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


(4)



$

4





(8)


  Deferred revenue add back


3





3




Severance expense


2



2






  Synergy accrual


6



2



3



1


  Merger transaction costs


6



3



3




  Premium tax settlement









  Other legal matters


2



1



1




  Purchase price amortization


46



24



22




  Payroll Accrual


3





3




 Total non-GAAP adjustments before taxes


$

64



$

36



$

35



$

(7)











  Adjusted pre-tax earnings (loss) from continuing operations


$

241



$

217



$

54



$

(30)


  Adjusted pre-tax margin from continuing operations


14.3

%


14.8

%


24.2

%












Purchase price amortization


(46)



(24)



(22)




Depreciation and amortization


83



36



46



1


Interest expense


29





8



21











  Adjusted EBITDA


$

307



$

229



$

86



$

(8)


  Adjusted EBITDA margin


18.2

%


15.6

%


38.6

%



 

 

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF

Group


Title


BKFS


FNF Group 

Corporate

and Other

Three Months Ended





December 31, 2014





Pre-tax earnings (loss) from continuing operations


$

177



$

181



$

19



$

(23)











  Income tax expense


70



63



4



3


  Earnings from equity investments


1



1






  Non-controlling interests


8



(2)



10













Net earnings (loss) attributable to FNF Group common shareholders


$

100



$

121



$

5



$

(26)











EPS attributable to FNF Group common shareholders - basic


$

0.36



$

0.44



$

0.02



$

(0.09)


EPS attributable to FNF Group common shareholders - diluted


$

0.35



$

0.42



$

0.02



$

(0.09)











FNF Group weighted average shares - basic


276








FNF Group weighted average shares - diluted


286

















Net earnings (loss) attributable to FNF Group common shareholders


$

100



$

121



$

5



$

(26)











 Total non-GAAP, pre-tax adjustments


64



36



35



(7)


  Income taxes on non-GAAP adjustments


(16)



(10)



(9)



3


  Noncontrolling interest on non-GAAP adjustments


(4)



(5)



1




Total non-GAAP adjustments


44



21



27



(4)











Adjusted net earnings (loss) attributable to FNF Group common shareholders


$

144



$

142



$

32



$

(30)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

0.50



$

0.50



$

0.11



$

(0.10)











Direct orders opened (000's)


452



452






Direct orders closed (000's)


334



334






Fee per file


$

2,131



$

2,131






Actual title claims paid


$

76



$

76















Cash flows provided by operations:


$

186








Non-GAAP adjustments:









   LPS merger transaction costs


8








   Other legal expenses


11








Total non-GAAP adjustments


19

















Adjusted cash flows from operations


205








Capital expenditures


38








Free cash flow


$

167








 

 

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












 

Total FNF

Group


 

Title


 

BKFS


FNF Group

Corporate

and Other

Twelve Months Ended





December 31, 2015





Direct title premiums


$

2,009



$

2,009



$



$


Agency title premiums


2,277



2,277






Escrow, title related and other fees (1)


3,121



2,005



931



185


Total title and escrow


7,407



6,291



931



185











Interest and investment income


121



123





(2)


Realized gains and losses, net


6



14



(5)



(3)


Total revenue


7,534



6,428



926



180











Personnel costs


2,514



2,090



382



42


Agent commissions


1,731



1,731






Other operating expenses


1,714



1,381



161



172


Depreciation and amortization


345



144



194



7


Claim loss expense


246



246






Interest expense


122





50



72


Total expenses


6,672



5,592



787



293











Pre-tax earnings (loss) from continuing operations


$

862



$

836



$

139



$

(113)











Non-GAAP adjustments before taxes









  Realized (gains) and losses, net


(6)



$

(14)



5



3


  Deferred revenue add back and management fee


13



2



11




  Purchase price amortization


183



92



90



1


  IPO costs & profits interest acceleration


10





10




 Total non-GAAP adjustments before taxes


$

200



$

80



$

116



$

4











  Adjusted pre-tax earnings (loss) from continuing operations


$

1,062



$

916



$

255



$

(109)


  Adjusted pre-tax margin from continuing operations


14.1

%


14.3

%


27.1

%












Purchase price amortization


(183)



(92)



(90)



(1)


Depreciation and amortization


345



144



194



7


Interest expense


122





50



72











  Adjusted EBITDA


$

1,346



$

968



$

409



$

(31)


  Adjusted EBITDA margin


17.9

%


15.1

%


44.0

%
















1.         BKFS also reported adjusted revenue of $940 million, which includes $9 million of deferred revenue

 

 

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF

Group


Title


BKFS


FNF Group

Corporate

and Other

Twelve Months Ended





December 31, 2015





Pre-tax earnings (loss) from continuing operations


$

862



$

836



$

139



$

(113)











  Income tax expense (benefit)


310



305



35



(30)


  Earnings from equity investments


6



6






  Non-controlling interests


18



(10)



28













Net earnings (loss) attributable to FNF Group common shareholders


$

540



$

547



$

76



$

(83)











EPS attributable to FNF Group common shareholders - basic


$

1.95



$

1.97



$

0.27



$

(0.29)


EPS attributable to FNF Group common shareholders - diluted


$

1.89



$

1.91



$

0.27



$

(0.29)











FNF Group weighted average shares - basic


277








FNF Group weighted average shares - diluted


286

















Net earnings (loss) attributable to FNF Group common shareholders


$

540



$

547



$

76



$

(83)











 Total non-GAAP, pre-tax adjustments


200



80



116



4


  Income taxes on non-GAAP adjustments


(50)



(22)



(26)



(2)


  Noncontrolling interest on non-GAAP adjustments


(71)



(23)



(48)




Total non-GAAP adjustments


79



35



42



2











Adjusted net earnings (loss) attributable to FNF Group common shareholders


$

619



$

582



$

118



$

(81)











Adjusted EPS attributable to FNF Group common shareholders - diluted


$

2.16



$

2.03



$

0.41



$

(0.28)











Direct orders opened (000's)


2,092



2,092






Direct orders closed (000's)


1,472



1,472






Fee per file


$

2,065



$

2,065






Actual title claims paid


$

285



$

285















Cash flows provided by operations:


$

888








Non-GAAP adjustments:









  IPO Cost


4








  Management fee


3








Total non-GAAP adjustments


7

















Adjusted cash flows from operations


895








Capital expenditures


179








Free cash flow


$

716








 

 

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF Group


Title


BKFS


FNF Group Corporate
and Other

Twelve Months Ended





December 31, 2014





Direct title premiums


$

1,727



$

1,727



$



$


Agency title premiums


1,944



1,944






Escrow, title related and other fees


2,694



1,855



852



(13)


Total title and escrow


6,365



5,526



852



(13)











Interest and investment income


121



122





(1)


Realized gains and losses, net


4



(4)





8


Total revenue


6,490



5,644



852



(6)











Personnel costs


2,370



1,896



449



25


Agent commissions


1,471



1,471






Other operating expenses


1,557



1,370



199



(12)


Depreciation and amortization


336



145



188



3


Claim loss expense


228



228






Interest expense


122





31



91


Total expenses


6,084



5,110



867



107











Pre-tax earnings (loss) from continuing operations


$

406



$

534



$

(15)



$

(113)











Non-GAAP adjustments before taxes









  Realized (gain) loss, net adjustment


(4)



4





(8)


  Deferred revenue add back


13





13




Severance expense


47



20



27




  Synergy accrual


73



30



31



12


  Merger transaction costs


62



35



53



(26)


  Premium tax settlement


(8)



(8)






  Other legal matters


23



1



12



10


  Purchase price amortization


183



88



95




  Payroll Accrual


3





3




 Total non-GAAP adjustments before taxes


$

392



$

170



$

234



$

(12)











  Adjusted pre-tax earnings (loss) from continuing operations


$

798



$

704



$

219



$

(125)


  Adjusted pre-tax margin from continuing operations


12.3

%


12.5

%


25.3

%












Purchase price amortization


(183)



(88)



(95)




Depreciation and amortization


336



145



188



3


Interest expense


122





31



91











  Adjusted EBITDA


$

1,073



$

761



$

343



$

(31)


  Adjusted EBITDA margin


16.5

%


13.5

%


39.7

%



 

 

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)












Total FNF Group


Title


BKFS


FNF Group Corporate
and Other

Twelve Months Ended





December 31, 2014





Pre-tax earnings (loss) from continuing operations


$

406



$

534



$

(15)



$

(113)











  Income tax expense (benefit)


162



192



(7)



(23)


  Earnings from equity investments


4



4






  Loss from discontinued operations, net of tax


(1)



(1)






  Non-controlling interests


(68)



(42)



(26)













Net earnings (loss) attributable to FNF Group common shareholders


$

315



$

387



$

18



$

(90)











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



$

0.52



$

(0.07)



$

(0.08)











EPS attributable to FNF Group common shareholders - basic


$

0.77



$

0.88



$

0.13



$

(0.24)


EPS attributable to FNF Group common shareholders - diluted


$

0.75



$

0.86



$

0.13



$

(0.24)











Old FNF weighted average shares - basic


138








Old FNF weighted average shares - diluted


142

















FNF Group weighted average shares - basic


138








FNF Group weighted average shares - diluted


142

















Net earnings (loss) attributable to FNF common shareholders *


$

315



$

387



$

18



$

(90)











 Total non-GAAP, pre-tax adjustments


392



170



234



(12)


  Income taxes on non-GAAP adjustments


(95)



(42)



(58)



5


  Noncontrolling interest on non-GAAP adjustments


(123)



(54)



(69)




Total non-GAAP adjustments


174



74



107



(7)











Adjusted net earnings (loss) attributable to FNF common shareholders *


$

489



$

461



$

125



$

(97)


Adjusted EPS attributable to FNF common shareholders - diluted *


$

1.72



$

1.62



$

0.44



$

(0.34)


*Adjusted EPS is presented as Old FNF common shareholders and FNF Group common shareholders are combined.










Direct orders opened (000's)


1,914



1,914






Direct orders closed (000's)


1,319



1,319






Fee per file


$

2,014



$

2,014






Actual title claims paid


$

302



$

302






 

 

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)










(Continued)


Total FNF
Group


Title


BKFS


FNF Group
Corporate
and Other

Twelve Months Ended





December 31, 2014














Cash flows provided by operations:


$

475








Non-GAAP adjustments:









  Transaction costs related to acquisition of LPS


54








  Severance costs related to acquisition of LPS


47








  Synergy bonus payment


67








  Premium tax settlement


15








  Other legal matters


8








Total non-GAAP adjustments


191

















Adjusted cash flows from operations


666








Capital expenditures


124








Free cash flow


$

542








 

 

FNF GROUP

QUARTERLY OPERATING STATISTICS

(Unaudited)




















Q4 2015


Q3 2015


Q2 2015


Q1 2015


Q4 2014


Q3 2014


Q2 2014


Q1 2014

Quarterly Open Orders ('000's except % data)

Total open orders*


441



514



560



578



452



481



514



469


Total open orders per day*


7.0



8.0



8.8



9.5



7.1



7.5



8.0



7.7


Purchase % of open orders


55

%


58

%


57

%


47

%


52

%


60

%


60

%


57

%

Refinance % of open orders


45

%


42

%


43

%


53

%


48

%


40

%


40

%


43

%

Total closed orders*


341



378



408



345



334



348



342



295


Total closed orders per day*


5.4



5.9



6.4



5.7



5.3



5.4



5.3



4.8


Purchase % of closed orders


58

%


60

%


54

%


46

%


57

%


62

%


61

%


52

%

Refinance % of closed orders


42

%


40

%


46

%


54

%


43

%


38

%


39

%


48

%


















Commercial (millions, except orders in '000's)

Total commercial revenue**


$

303



$

258



$

258



$

208



$

274



$

225



$

183



$

175


Total commercial open orders**


46.3



50.3



50.8



47.8










Total commercial closed orders**


36.3



33.0



32.4



29.6



























National commercial revenue


$

183



$

146



$

150



$

119



$

166



$

136



$

115



$

104


National commercial open orders


18.1



21.0



21.2



20.4



18.1



21.4



22.2



19.6


National commercial closed orders


13.4



12.2



12.5



11.1



12.7



12.8



11.8



10.2



















Total Fee Per File

Fee per file


$

2,272



$

2,133



$

2,026



$

1,833



$

2,131



$

2,066



$

1,982



$

1,858


Residential and local commercial fee per file


$

1,806



$

1,805



$

1,711



$

1,538



$

1,699



$

1,739



$

1,750



$

1,559


Residential fee per file


$

1,548



$

1,589



$

1,514



$

1,346










Total commercial fee per file**


$

8,300



$

7,800



$

8,000



$

7,200










National commercial fee per file


$

13,600



$

12,000



$

12,000



$

10,700



$

13,100



$

10,600



$

9,800



$

10,200



















Total Staffing

Total field operations employees


10,700



11,000



10,900



10,400



9,900



10,200



10,200



10,300



















FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total open orders*


360



422



458



456



354



385



403



349


Total open orders per day*


5.7



6.6



7.2



7.5



5.6



6.0



6.3



5.7


Purchase % of open orders


62

%


65

%


65

%


54

%


60

%


69

%


71

%


71

%

Refinance % of open orders


38

%


35

%


35

%


46

%


40

%


31

%


29

%


29

%

Total closed orders*


285



314



334



277



273



282



272



219


Total closed orders per day*


4.5



4.9



5.2



4.5



4.3



4.4



4.3



3.6


Purchase % of closed orders


63

%


66

%


61

%


52

%


63

%


70

%


71

%


67

%

Refinance % of closed orders


37

%


34

%


39

%


48

%


37

%


30

%


29

%


33

%

Fee per file


$

2,521



$

2,364



$

2,264



$

2,055



$

2,382



$

2,306



$

2,227



$

2,151


Total tile field operations employees


9,500



9,700



9,600



9,100



8,700



8,900



8,700



8,600



















ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total Open Orders*


81



92



102



122



98



96



111



120


Total open orders per day*


1.3



1.4



1.6



2.0



1.6



1.5



1.7



2.0


Purchase % of open orders


22

%


23

%


22

%


17



23



23



20



7


Refinance % of open orders


78

%


77

%


78

%


83

%


77

%


77

%


80

%


93

%

Total closed orders


56



64



74



68



61



66



70



76


Total closed orders per day*


0.9



1.0



1.2



1.1



1.0



1.0



1.1



1.2


Purchase % of closed orders


31

%


26

%


21

%


22



26



24



18



6


Refinance % of closed orders


69

%


74

%


79

%


78

%


74

%


76

%


82

%


94

%

Fee per file


$

1,003



$

987



$

958



$

921



$

1,027



$

1,052



$

1,038



$

1,009


Total ServiceLink operating employees


1,200



1,300



1,300



1,300



1,200



1,300



1,500



1,700



* Includes an immaterial number of non-purchase and non-refinance orders

** Total commercial order and fee per file tracking began in January 2015

 

 

FNF GROUP

SUMMARY BALANCE SHEET INFORMATION

(In millions)




























FNF Group

December 31, 2015


FNF Group

December 31, 2014













(Unaudited)



(Unaudited)

Cash and investment portfolio













$

4,898




$

4,360


Goodwill













4,572




4,514


Title plant













395




393


Total assets













12,502




11,926


Notes payable













2,593




2,683


Reserve for title claim losses













1,583




1,621


Secured trust deposits













701




622


Redeemable non-controlling interests













344




715


Non-redeemable non-controlling interests













720




(58)


Total equity and redeemable non-controlling interests













5,849




5,272


Total equity attributable to common shareholders













4,785




4,615






















FNF Group
December 31, 2015


FNFV

December 31, 2015


Consolidated

December 31, 2015


Consolidated

December 31, 2014



(Unaudited)


(Unaudited)


(Unaudited)




Cash and investment portfolio



$

4,898




$

735




$

5,633




$

5,369


Goodwill



4,572




188




4,760




4,721


Title plant



395







395




393


Total assets



12,502




1,429




13,931




13,845


Notes payable



2,593




200




2,793




2,803


Reserve for title claim losses



1,583







1,583




1,621


Secured trust deposits



701







701




622


Redeemable non-controlling interests



344







344




715


Non-redeemable non-controlling interests



720




114




834




79


Total equity and redeemable non-controlling interests



5,849




1,083




6,932




6,788


Total equity attributable to common shareholders



4,785




969




5,754




5,994


 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited) 







Three Months Ended



Twelve Months Ended


December 31, 2015



December 31, 2015


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

521



$

521



$




$

2,009



$

2,009



$


Agency title premiums

592



592






2,277



2,277




     Total title premiums

1,113



1,113






4,286



4,286




Escrow, title-related and other fees

807



776



31




3,324



3,121



203


     Total title and escrow and other

1,920



1,889



31




7,610



7,407



203















Restaurant revenue

328





328




1,412





1,412


Interest and investment income

30



30






123



121



2


Realized gains and losses, net

6



14



(8)




(13)



6



(19)


     Total revenue

2,284



1,933



351




9,132



7,534



1,598















Personnel costs

678



636



42




2,671



2,514



157


Other operating expenses

457



437



20




1,881



1,714



167


Cost of restaurant revenue

274





274




1,195





1,195


Agent commissions

452



452






1,731



1,731




Depreciation and amortization

104



90



14




410



345



65


Title claim loss expense

61



61






246



246




Interest expense

34



31



3




131



122



9


     Total expenses

2,060



1,707



353




8,265



6,672



1,593















Earnings (loss) from continuing operations before taxes

224



226



(2)




867



862



5


Income tax expense (benefit)

71



73



(2)




290



310



(20)


Earnings from continuing operations before equity investments

153



153






577



552



25


Earnings (loss) from equity investments



2



(2)




(16)



6



(22)


Net earnings (loss)

153



155



(2)




561



558



3


Non-controlling interests

14



11



3




34



18



16


Net earnings (loss) attributable to common shareholders

$

139



$

144



$

(5)




$

527



$

540



$

(13)















Cash flows provided by operations

258



236



22




917



888



29


 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)







Three Months Ended



Twelve Months Ended


December 31, 2014



December 31, 2014


Consolidated


Core


FNFV



Consolidated


Core


FNFV

Direct title premiums

$

478



$

478



$




$

1,727



$

1,727



$


Agency title premiums

494



494






1,944



1,944




     Total title premiums

972



972






3,671



3,671




Escrow, title-related and other fees

707



679



28




2,804



2,694



110


     Total title and escrow and other

1,679



1,651



28




6,475



6,365



110















Restaurant revenue

381





381




1,436





1,436


Interest and investment income

33



33






126



121



5


Realized gains and losses, net

(7)



4



(11)




(13)



4



(17)


     Total revenue

2,086



1,688



398




8,024



6,490



1,534















Personnel costs

652



596



56




2,540



2,370



170


Other operating expenses

396



371



25




1,643



1,557



86


Cost of restaurant revenue

321





321




1,220





1,220


Agent commissions

373



373






1,471



1,471




Depreciation and amortization

101



83



18




403



336



67


Title claim loss expense

59



59






228



228




Interest expense

31



29



2




127



122



5


     Total expenses

1,933



1,511



422




7,632



6,084



1,548















Earnings (loss) from continuing operations before taxes

153



177



(24)




392



406



(14)


Income tax expense

233



70



163




312



162



150


(Loss) earnings from continuing operations before equity investments

(80)



107



(187)




80



244



(164)


Earnings from equity investments

475



1



474




432



4



428


Net earnings from continuing operations

395



108



287




512



248



264


Earnings (loss) from discontinued operations, net of tax

8





8




7



(1)



8


Net earnings

403



108



295




519



247



272


Non-controlling interests

11



8



3




(64)



(68)



4


Net earnings attributable to common shareholders

$

392



$

100



$

292




$

583



$

315



$

268















Cash flows provided by operations

279



186



93




568



475



93


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnf-group-reports-fourth-quarter-2015-adjusted-eps-of-055-adjusted-pre-tax-title-margin-of-138-bkfs-revenue-growth-of-8-and-bkfs-adjusted-ebitda-margin-of-449-300218337.html

SOURCE Fidelity National Financial, Inc.

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