Fidelity National Financial, Inc. - FORM 8-K - EX-99.5

Attached files

file	filename
8-K - FORM 8-K - Fidelity National Financial, Inc.	d615573d8k.htm
EX-99.2 - EX-99.2 - Fidelity National Financial, Inc.	d615573dex992.htm
EX-99.3 - EX-99.3 - Fidelity National Financial, Inc.	d615573dex993.htm
EX-23.1 - EX-23.1 - Fidelity National Financial, Inc.	d615573dex231.htm
EX-99.4 - EX-99.4 - Fidelity National Financial, Inc.	d615573dex994.htm
EX-99.1 - EX-99.1 - Fidelity National Financial, Inc.	d615573dex991.htm
EX-99.6 - EX-99.6 - Fidelity National Financial, Inc.	d615573dex996.htm

Exhibit 99.5

Lender Processing Services, Inc.

Third Quarter 2013 Operating Results

The following are condensed consolidated financial and operational results for Lender Processing Services, Inc. for the three-month and nine-month periods ended September 30, 2013 and 2012:

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)


	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(In thousands, except per share data)
Revenues	$	418,981		$	497,451		$	1,359,522		$	1,496,622
Expenses:
Operating expenses		316,923			361,351			1,006,923			1,099,538
Depreciation and amortization		25,870			24,241			78,596			71,608
Legal and regulatory charges		2,445			—			54,011			144,476
Exit costs, impairments and other charges		10,334			—			12,035			—

Total expenses		355,572			385,592			1,151,565			1,315,622

Operating income		63,409			111,859			207,957			181,000

Other income (expense):
Interest income		554			463			1,698			1,365
Interest expense		(13,014	)		(16,112	)		(39,611	)		(48,969	)
Other income (expense), net		(79	)		14			212			173

Total other income (expense)		(12,539	)		(15,635	)		(37,701	)		(47,431	)
Earnings from continuing operations before income taxes		50,870			96,224			170,256			133,569
Provision for income taxes		15,421			35,892			59,589			59,860

Net earnings from continuing operations		35,449			60,332			110,667			73,709
Earnings (loss) from discontinued operations, net of tax		31			(2,028	)		(2,173	)		(6,164	)

Net earnings	$	35,480		$	58,304		$	108,494		$	67,545

Net earnings per share – diluted from continuing operations	$	0.41		$	0.71		$	1.29		$	0.87
Net loss per share – diluted from discontinued operations		—			(0.02	)		(0.02	)		(0.07	)

Net earnings per share – diluted	$	0.41		$	0.69		$	1.27		$	0.80

Weighted average shares outstanding – diluted		85,984			84,948			85,569			84,774

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)


	September 30, 2013			December 31, 2012
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	203,207		$	236,241
Trade receivables, net of allowance for doubtful accounts		233,322			274,783
Other receivables		6,344			3,800
Prepaid expenses and other current assets		37,216			41,541
Deferred income taxes		88,090			127,742

Total current assets		568,179			684,107

Property and equipment, net		121,542			126,633
Computer software, net		272,714			245,271
Other intangible assets, net		18,978			23,670
Goodwill		1,109,304			1,109,304
Other non-current assets		281,808			256,849

Total assets	$	2,372,525		$	2,445,834

Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	40,125		$	—
Trade accounts payable		39,658			38,901
Accrued salaries and benefits		72,848			107,984
Legal and regulatory accrual		86,563			223,149
Other accrued liabilities		152,766			169,458
Deferred revenues		58,270			58,868

Total current liabilities		450,230			598,360

Deferred revenues		27,382			24,987
Deferred income taxes, net		189,825			174,303
Long-term debt, net of current portion		1,028,000			1,068,125
Other non-current liabilities		32,909			37,163

Total liabilities		1,728,346			1,902,938

Stockholders’ equity:
Preferred stock $0.0001 par value; 50 million shares authorized, none issued at September 30, 2013 and December 31, 2012		—			—
Common stock $0.0001 par value; 500 million shares authorized, 97.4 million shares issued at September 30, 2013 and December 31, 2012		10			10
Additional paid-in capital		249,145			250,016
Retained earnings		776,654			694,148
Accumulated other comprehensive loss		(3,106	)		(3,079	)
Treasury stock at cost; 12.1 million and 12.5 million shares at September 30, 2013 and December 31, 2012, respectively		(378,524	)		(398,199	)

Total stockholders’ equity		644,179			542,896

Total liabilities and stockholders’ equity	$	2,372,525		$	2,445,834

LENDER PROCESSING SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine months ended September 30,
	2013			2012
	(In thousands)
Cash flows from operating activities:
Net earnings	$	108,494		$	67,545
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		78,580			73,407
Amortization of debt issuance costs		3,141			3,317
Asset impairment charges		785			3,812
Gain on sale of discontinued operations		—			(6,688	)
Deferred income taxes, net		54,630			776
Stock-based compensation cost		20,777			19,520
Income tax effect of equity compensation		(917	)		(494	)
Changes in assets and liabilities, net of effects of acquisitions:
Trade receivables		41,304			27,543
Other receivables		(2,544	)		(1,748	)
Prepaid expenses and other assets		(11,162	)		(18,512	)
Deferred revenues		1,798			10,605
Accounts payable, accrued liabilities and other liabilities		(187,281	)		124,487

Net cash provided by operating activities		107,605			303,570


Cash flows from investing activities:
Additions to property and equipment		(20,208	)		(16,109	)
Additions to capitalized software		(65,909	)		(56,088	)
Purchases of investments, net of proceeds from sales		(8,094	)		(17,604	)
Acquisition of title plants and property records data		(18,484	)		(33,600	)
Acquisitions, net of cash acquired		—			(12,250	)
Proceeds from sales of discontinued operations, net of cash distributed		—			16,206

Net cash used in investing activities		(112,695	)		(119,445	)


Cash flows from financing activities:
Debt service payments		—			(72,082	)
Exercise of stock options and restricted stock vesting		(2,186	)		(1,792	)
Income tax effect of equity compensation		917			494
Dividends paid		(25,723	)		(25,384	)
Payment of contingent consideration related to acquisitions		(952	)		(2,000	)

Net cash used in financing activities		(27,944	)		(100,764	)

Net (decrease) increase in cash and cash equivalents		(33,034	)		83,361
Cash and cash equivalents, beginning of period		236,241			77,355

Cash and cash equivalents, end of period	$	203,207		$	160,716


Supplemental disclosures of cash flow information:
Cash paid for interest	$	30,398		$	54,774

Cash paid for taxes	$	6,956		$	46,853

Fidelity National Financial, Inc. - FORM 8-K - EX-99.5 - October 23, 2013

Attached files

Fidelity National Financial, Inc. Reports