Fidelity National Financial, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

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8-K - 8-K - Fidelity National Financial, Inc.	a20153q8k.htm
EX-99.2 - EXHIBIT 99.2 - Fidelity National Financial, Inc.	a20153qfnfvgrouppressrelea.htm

FNF Group Reports Third Quarter 2015 Adjusted EPS of $0.60, Adjusted Pre-Tax Title Margin of 14.9%, Claims Provision Reduction to 5.5%, BKFS Revenue Growth of 9% and BKFS Adjusted EBITDA Margin of 44.7%

Jacksonville, Fla. - (October 27, 2015) - 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 nine-month periods ended September 30, 2015.


•	Total revenue of approximately $2.0 billion in the third quarter versus $1.7 billion in the third quarter of 2014


•	Adjusted third quarter net earnings of $171 million versus adjusted net earnings of $144 million for the third quarter of 2014


•	Adjusted third quarter diluted EPS of $0.60 versus adjusted diluted EPS of $0.51 in the third quarter of 2014


•	Third quarter free cash flow provided of $231 million versus $281 million provided in the third quarter of 2014


•	Repurchased 2.35 million shares of FNF common stock for approximately $88 million in the third quarter

Title


•	Approximately $1.8 billion in total revenue, adjusted pre-tax earnings of $268 million and adjusted pre-tax title margin of 14.9% for the third quarter versus approximately $1.5 billion in total revenue, adjusted pre-tax earnings of $224 million and an adjusted pre-tax title margin of 14.8% in the third quarter of 2014


•	Adjusted pre-tax title margin of 14.9% was a 20 basis point improvement over the third quarter 2014 adjusted pre-tax title margin of 14.8%


•	Claims loss provision was reduced to 5.5% for the third quarter driven by significantly lower title loss payments related to policy years 2009-2014


•	ServiceLink generated $220 million in revenue, adjusted EBITDA of $30 million, an adjusted EBITDA margin of 14%, adjusted pre-tax earnings of $27 million and an adjusted pre-tax margin of 12% for the third quarter


•	Open orders per day of 8,031 for the third quarter versus 7,516 open orders per day for the third quarter of 2014


•	Closed orders per day of 5,906 for the third quarter versus 5,438 closed orders per day for the third quarter of 2014


•	Third quarter purchase orders opened and closed increased by 8% and 11%, respectively, versus the third quarter of 2014; purchase orders opened and closed increased by 9% and 11%, respectively, versus the third quarter of 2014, for FNTG only (excluding ServiceLink)


•	Total commercial revenue of $258 million, a 15% increase over total commercial revenue in the third quarter of 2014; third quarter national commercial title revenue of $146 million, a 7% increase from the third quarter of 2014, driven by a 13% improvement in the commercial fee per file and a 5% decrease in closed orders; open national commercial orders decreased by 2% over the prior year


•	Overall third quarter average fee per file of $2,133, a 3% increase versus the third quarter of 2014


•	Title claims paid of $70 million, a decrease of $11 million, or 14%, from the third quarter of 2014

Title Orders



		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
July 2015		176,000	61%		136,000	60%
August 2015		169,000	58%		120,000	60%
September 2015		169,000	55%		122,000	59%

Third Quarter 2015		514,000	58%		378,000	60%



		Direct Orders Opened *		Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
July 2014		170,000	60%	120,000	62%
August 2014		155,000	59%	115,000	62%
September 2014		156,000	60%	113,000	60%

Third Quarter 2014		481,000	60%	348,000	62%

* 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*
Third Quarter 2015 - Total Commercial		50,300		33,000		$258		$7,800
Third Quarter 2014 - Total Commercial						$225		—

Third Quarter 2015 - National Commercial		21,000		12,200		$146		$12,000
Third Quarter 2014 - National Commercial		21,400		12,800		$136		$10,600

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

BKFS


•	Revenue of $234 million, led by Servicing Technology revenue of approximately $162 million


•	Revenue growth of 9% for the third quarter compared to the third quarter of 2014, led by strong growth in Data & Analytics and Origination Technology


•	Adjusted EBITDA of $105 million and adjusted EBITDA margin of 44.7%

“We generated a solid 14.9% adjusted pre-tax title margin this quarter, essentially at the lower end of our normalized title margin target range," said Chairman William P. Foley, II. "The commercial market remains very strong, the residential purchase market continues to steadily improve and the residential refinance market has been declining, although a recent drop in rates may provide a further period of improving refinance volumes. We are pleased with our title margin performance this quarter, but to consistently reach and move higher in our 15%-20% normalized pre-tax title margin target range, we need to see continued improvement in the residential purchase market. Additionally, as we enter the seasonally slower fourth quarter, our title margins will have to absorb the cost and more lengthy closing process resulting from the new TILA-RESPA closing disclosure requirements.

“Black Knight continues to meet and exceed our high expectations, generating 9% revenue growth, $105 million in adjusted EBITDA and a 44.7% adjusted EBITDA margin in the third quarter. FNF's Black Knight ownership stake is currently worth approximately $2.9 billion, or approximately $10 per FNF share, and we believe that a publicly-traded Black Knight will continue to be a source of value creation for FNF shareholders in the future."

Conference Call

We will host a call with investors and analysts to discuss third quarter 2015 FNF Group results on Wednesday, October 28, 2015, beginning at 9:00 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 11:00 a.m. Eastern time on October 28, 2015, through November 4, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 370124.

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. and Digital Insurance, 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.

SOURCE: Fidelity National Financial, Inc.

CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Three Months Ended
September 30, 2015
Direct title premiums	$	524		$	524		$	—		$	—
Agency title premiums	647			647			—			—
Escrow, title related and other fees (1)	823			594			234			(5		)
Total title and escrow	1,994			1,765			234			(5		)

Interest and investment income	29			30			—			(1		)
Realized gains and losses, net	—			1			—			(1		)
Total revenue	2,023			1,796			234			(7		)

Personnel costs	641			543			90			8
Agent commissions	495			495			—			—
Other operating expenses	452			413			41			(2		)
Depreciation and amortization	85			36			48			1
Claim loss expense	65			65			—			—
Interest expense	31			—			16			15
Total expenses	1,769			1,552			195			22

Pre-tax earnings (loss) from continuing operations	$	254		$	244		$	39		$	(29	)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	$	—		$	(1	)	$	—		$	1
Deferred revenue add back and management fee	3			1			2			—
Purchase price amortization	47			24			23			—
Total non-GAAP adjustments before taxes	$	50		$	24		$	25		$	1

Adjusted pre-tax earnings (loss) from continuing ops.	$	304		$	268		$	64		$	(28	)
Adjusted pre-tax margin from continuing operations	15.0		%	14.9		%	27.1		%	—

Purchase price amortization	(47		)	(24		)	(23		)	—
Depreciation and amortization	85			36			48			1
Interest expense	31			—			16			15

Adjusted EBITDA	$	373		$	280		$	105		$	(12	)
Adjusted EBITDA margin	18.4		%	15.6		%	44.7		%	—

ServiceLink non-GAAP reconciliations:
ServiceLink pre-tax earnings	$	4
Depreciation and amortization	23
ServiceLink EBITDA	$	27
Management fee / other fees	3
ServiceLink Adjusted EBITDA	$	30

ServiceLink pre-tax earnings	$	4
Purchase price amortization	20
Management fee / other fees	3
ServiceLink adjusted pre-tax earnings	$	27


1.	BKFS also reported adjusted revenue of $236 million, which includes $2 million of deferred revenue

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Three Months Ended
September 30, 2015
Pre-tax earnings (loss) from continuing operations	$	254		$	244		$	39		$	(29	)
Income tax expense (benefit)	95			89			17			(11		)
Earnings from equity investments	2			2			—			—
Non-controlling interests	11			1			10			—

Net earnings (loss) attributable to FNF Group common shareholders	$	150		$	156		$	12		$	(18	)

EPS attributable to FNF Group common shareholders - basic	$	0.54		$	0.56		$	0.04		$	(0.06	)
EPS attributable to FNF Group common shareholders - diluted	$	0.53		$	0.55		$	0.04		$	(0.06	)

FNF Group weighted average shares - basic	277
FNF Group weighted average shares - diluted	285

Net earnings (loss) attributable to FNF Group common shareholders	$	150		$	156		$	12		$	(18	)

Total non-GAAP, pre-tax adjustments	50			24			25			1
Noncontrolling interest on non-GAAP adjustments	(16		)	(5		)	(11		)	—
Income taxes on non-GAAP adjustments	(13		)	(7		)	(6		)	—
Total non-GAAP adjustments	21			12			8			1

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	171		$	168		$	20		$	(17	)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.60		$	0.59		$	0.07		$	(0.06	)

Direct orders opened (000's)	514			514
Direct orders closed (000's)	378			378
Fee per file	$	2,133		$	2,133
Actual title claims paid	$	70		$	70

Cash flows provided by operations:	$	277
Non-GAAP adjustments:
THL Management fee	1
Total non-GAAP adjustments	1

Adjusted cash flows from operations	278
Capital expenditures	47
Free cash flow	$	231

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Three Months Ended
September 30, 2014
Direct title premiums	$	465		$	465		$	—		$	—
Agency title premiums	528			528			—			—
Escrow, title related and other fees	708			491			214			3
Total title and escrow	1,701			1,484			214			3

Interest and investment income	27			28			—			(1		)
Realized gains and losses, net	(2		)	(2		)	—			—
Total revenue	1,726			1,510			214			2

Personnel costs	584			479			96			9
Agent commissions	396			396			—			—
Other operating expenses	390			349			38			3
Depreciation and amortization	84			35			48			1
Claim loss expense	59			59			—			—
Interest expense	32			—			8			24
Total expenses	1,545			1,318			190			37

Pre-tax earnings (loss) from continuing operations	$	181		$	192		$	24		$	(35	)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	2			$	2		—			—
Deferred revenue add back	2			—			2			—
Severance expense	4			3			1			—
Synergy accrual	9			3			4			2
Merger transaction costs	4			3			1			—
Other legal matters	5			—			3			2
Purchase price amortization	46			21			25			—
Total non-GAAP adjustments before taxes	$	72		$	32		$	36		$	4

Adjusted pre-tax earnings (loss) from continuing operations	$	253		$	224		$	60		$	(31	)
Adjusted pre-tax margin from continuing operations	14.6		%	14.8		%	27.8		%	—

Purchase price amortization	(46		)	(21		)	(25		)	—
Depreciation and amortization	84			35			48			1
Interest expense	32			—			8			24

Adjusted EBITDA	$	323		$	238		$	91		$	(6	)
Adjusted EBITDA margin	18.7		%	15.7		%	42.1		%	—

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Three Months Ended
September 30, 2014
Pre-tax earnings (loss) from continuing operations	$	181		$	192		$	24		$	(35	)

Income tax expense	73			69			—			4
Earnings from equity investments	1			1			—			—
Non-controlling interests	(5		)	(5		)	—			—

Net earnings (loss) attributable to FNF Group common shareholders	$	114		$	129		$	24		$	(39	)

EPS attributable to FNF Group common shareholders - basic	$	0.41		$	0.47		$	0.08		$	(0.14	)
EPS attributable to FNF Group common shareholders - diluted	$	0.40		$	0.46		$	0.08		$	(0.14	)

FNF Group weighted average shares - basic	275
FNF Group weighted average shares - diluted	284

Net earnings (loss) attributable to FNF Group common shareholders	$	114		$	129		$	24		$	(39	)

Total non-GAAP, pre-tax adjustments	72			32			36			4
Income taxes on non-GAAP adjustments	(18		)	(8		)	(9		)	(1		)
Noncontrolling interest on non-GAAP adjustments	(24		)	(11		)	(13		)	—
Total non-GAAP adjustments	30			13			14			3

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	144		$	142		$	38		$	(36	)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.51		$	0.50		$	0.14		$	(0.13	)

Direct orders opened (000's)	481			481
Direct orders closed (000's)	348			348
Fee per file	$	2,066		$	2,066
Actual title claims paid	$	81		$	81

Cash flows provided by operations:	$	292
Non-GAAP adjustments:
Severance payments for LPS employees	4
Synergy bonus payments	9
THL Management Fee	1
LPS merger transaction costs	3
Other legal expenses	5
Total non-GAAP adjustments	22

Adjusted cash flows from operations	314
Capital expenditures	33
Free cash flow	$	281

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Nine Months Ended
September 30, 2015
Direct title premiums	$	1,488		$	1,488		$	—		$	—
Agency title premiums	1,685			1,685			—			—
Escrow, title related and other fees	2,345			1,657			693			(5		)
Total title and escrow	5,518			4,830			693			(5		)

Interest and investment income	91			92						(1		)
Realized gains and losses, net	(8		)	2			(5		)	(5		)
Total revenue	5,601			4,924			688			(11		)

Personnel costs	1,878			1,569			289			20
Agent commissions	1,279			1,279			—			—
Other operating expenses	1,277			1,154			119			4
Depreciation and amortization	255			110			143			2
Claim loss expense	185			185			—			—
Interest expense	91			—			35			56
Total expenses	4,965			4,297			586			82

Pre-tax earnings (loss) from continuing operations	$	636		$	627		$	102		$	(93	)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	8			$	(2	)	5			5
Deferred revenue add back and management fee	10			2			8			—
Purchase price amortization	137			70			67			—
IPO costs & profits interest acceleration	10			—			10			—
Total non-GAAP adjustments before taxes	$	165		$	70		$	90		$	5

Adjusted pre-tax earnings (loss) from continuing operations	$	801		$	697		$	192		$	(88	)
Adjusted pre-tax margin from continuing operations	14.3		%	14.2		%	27.4		%	—

Purchase price amortization	(137		)	(70		)	(67		)	—
Depreciation and amortization	255			110			143			2
Interest expense	91			—			35			56

Adjusted EBITDA	$	1,010		$	737		$	303		$	(30	)
Adjusted EBITDA margin	18.0		%	15.0		%	43.3		%	—

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Nine Months Ended
September 30, 2015
Pre-tax earnings (loss) from continuing operations	$	636		$	627		$	102		$	(93	)

Income tax expense	237			229			17			(9		)
Earnings from equity investments	4			4			—			—
Non-controlling interests	7			(10		)	17			—

Net earnings (loss) attributable to FNF Group common shareholders	$	396		$	412		$	68		$	(84	)

EPS attributable to FNF Group common shareholders - basic	$	1.42		$	1.48		$	0.24		$	(0.30	)
EPS attributable to FNF Group common shareholders - diluted	$	1.38		$	1.44		$	0.24		$	(0.30	)

FNF Group weighted average shares - basic	278
FNF Group weighted average shares - diluted	286

Net earnings (loss) attributable to FNF Group common shareholders	$	396		$	412		$	68		$	(84	)

Total non-GAAP, pre-tax adjustments	165			70			90			5
Income taxes on non-GAAP adjustments	(42		)	(19		)	(21		)	(2		)
Noncontrolling interest on non-GAAP adjustments	(54		)	(19		)	(35		)	—
Total non-GAAP adjustments	69			32			34			3

Adjusted net earnings attributable to FNF Group common shareholders	$	465		$	444		$	102		$	(81	)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	1.63		$	1.55		$	0.36		$	(0.28	)

Direct orders opened (000's)	1,651			1,651
Direct orders closed (000's)	1,132			1,132
Fee per file	$	2,003		$	2,003
Actual title claims paid	$	201		$	201

Cash flows provided by operations:	$	653
Non-GAAP adjustments:
IPO Cost	4
Management fee	3
Total non-GAAP adjustments	7

Adjusted cash flows from operations	660
Capital expenditures	127
Free cash flow	$	533

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Nine Months Ended
September 30, 2014
Direct title premiums	$	1,249		$	1,249		$	—		$	—
Agency title premiums	1,450			1,450			—			—
Escrow, title related and other fees	2,015			1,394			632			(11		)
Total title and escrow	4,714			4,093			632			(11		)

Interest and investment income	88			89			—			(1		)
Total revenue	4,802			4,182			632			(12		)

Personnel costs	1,774			1,413			342			19
Agent commissions	1,098			1,098			—			—
Other operating expenses	1,186			1,040			159			(13		)
Depreciation and amortization	253			109			142			2
Claim loss expense	169			169			—			—
Interest expense	93			—			23			70
Total expenses	4,573			3,829			666			78

Pre-tax earnings (loss) from continuing operations	$	229		$	353		$	(34	)	$	(90	)

Non-GAAP adjustments before taxes
Deferred revenue add back	10			—			10			—
Severance expense	45			18			27			—
Synergy accrual	67			28			28			11
Merger transaction costs	56			32			50			(26		)
Premium tax settlement	(8		)	(8		)	—			—
Other legal matters	21			—			11			10
Purchase price amortization	137			64			73			—
Total non-GAAP adjustments before taxes	$	328		$	134		$	199		$	(5	)

Adjusted pre-tax earnings (loss) from continuing operations	$	557		$	487		$	165		$	(95	)
Adjusted pre-tax margin from continuing operations	11.6		%	11.6		%	25.7		%	—

Purchase price amortization	(137		)	(64		)	(73		)	—
Depreciation and amortization	253			109			142			2
Interest expense	93			—			23			70

Adjusted EBITDA	$	766		$	532		$	257		$	(23	)
Adjusted EBITDA margin	15.9		%	12.7		%	40.0		%	—

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Nine Months Ended
September 30, 2014
Pre-tax earnings (loss) from continuing operations	$	229		$	353		$	(34	)	$	(90	)

Income tax expense (benefit)	92			129			(11		)	(26		)
Earnings from equity investments	3			3			—			—
Loss from discontinued operations, net of tax	(1		)	(1		)	—			—
Non-controlling interests	(76		)	(40		)	(36		)	—

Net earnings (loss) attributable to FNF Group common shareholders	$	215		$	266		$	13		$	(64	)

EPS attributable to Old FNF common shareholders - basic	$	0.37		$	0.50		$	(0.04	)	$	(0.09	)
EPS attributable to Old FNF common shareholders - diluted	$	0.36		$	0.49		$	(0.04	)	$	(0.09	)

EPS attributable to FNF Group common shareholders - basic	$	0.41		$	0.47		$	0.08		$	(0.14	)
EPS attributable to FNF Group common shareholders - diluted	$	0.40		$	0.46		$	0.08		$	(0.14	)

Old FNF weighted average shares - basic	183
Old FNF weighted average shares - diluted	189

FNF Group weighted average shares - basic	92
FNF Group weighted average shares - diluted	94

Net earnings (loss) attributable to FNF common shareholders *	$	215		$	266		$	13		$	(64	)

Total non-GAAP, pre-tax adjustments	328			134			199			(5		)
Income taxes on non-GAAP adjustments	(79		)	(32		)	(49		)	2
Noncontrolling interest on non-GAAP adjustments	(119		)	(49		)	(70		)	—
Total non-GAAP adjustments	130			53			80			(3		)

Adjusted net earnings (loss) attributable to FNF common shareholders *	$	345		$	319		$	93		$	(67	)
Adjusted EPS attributable to FNF common shareholders - diluted *	$	1.22		$	1.13		$	0.33		$	(0.24	)
*Adjusted EPS is presented as Old FNF common shareholders and FNF Group common shareholders are combined.

Direct orders opened (000's)	1,463			1,463
Direct orders closed (000's)	985			985
Fee per file	$	1,974		$	1,974
Actual title claims paid	$	226		$	226

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



(Continued)	Total FNF Group			Title	BKFS	FNF Group Corporate and Other
Nine Months Ended
September 30, 2014

Cash flows provided by operations:	$	288
Non-GAAP adjustments:
Transaction costs related to acquisition of LPS	52
Severance costs related to acquisition of LPS	45
Synergy bonus payment	67
Premium tax settlement	(8		)
THL Management Fee	4
Other legal matters	21
Total non-GAAP adjustments	181

Adjusted cash flows from operations	469
Capital expenditures	86
Free cash flow	$	383

FNF GROUP

QUARTERLY OPERATING STATISTICS

(Unaudited)



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q2 2014			Q1 2014			Q4 2013
Quarterly Open Orders ('000's except % data)
Total open orders*	514			560			578			452			481			514			469			391
Total open orders per day*	8.0			8.8			9.5			7.1			7.5			8.0			7.7			6.2
Purchase % of open orders	58		%	57		%	47		%	52		%	60		%	60		%	57		%	55		%
Refinance % of open orders	42		%	43		%	53		%	48		%	40		%	40		%	43		%	45		%
Total closed orders*	378			408			345			334			348			342			295			307
Total closed orders per day*	5.9			6.4			5.7			5.2			5.4			5.3			4.8			4.9
Purchase % of closed orders	60		%	54		%	46		%	57		%	62		%	61		%	52		%	56		%
Refinance % of closed orders	40		%	46		%	54		%	43		%	38		%	39		%	48		%	44		%

Commercial (millions, except orders in '000's)
Total commercial revenue**	$	258		$	258		$	208		$	274		$	225		$	183		175			—
Total commercial open orders**	50.3			50.8			47.8			—			—			—			—			—
Total commercial closed orders**	33.0			32.4			29.6			—			—			—			—			—

National commercial revenue	$	146		$	150		$	119		$	166.3		$	136		$	115		$	104		$	146
National commercial open orders	21.0			21.2			20.4			18.1			21.4			22.2			19.6			19.3
National commercial closed orders	12.2			12.5			11.1			12.7			12.8			11.8			10.2			12.8

Total Fee Per File
Fee per file	$	2,133		$	2,026		$	1,833		$	2,131		$	2,066		$	1,982		$	1,858		$	2,082
Residential and local commercial fee per file	$	1,805		$	1,711		$	1,538		$	1,699		$	1,739		$	1,750		$	1,559		$	1,676
Residential fee per file	$	1,589		$	1,514		$	1,346		$	—		$	—		$	—		$	—		$	—
Total commercial fee per file**	$	7,800		$	8,000		7,200			—			—			—			—			—
National commercial fee per file	$	12,000		$	12,000		$	10,700		$	13,100		$	10,600		$	9,800		$	10,200		$	11,400

Total Staffing
Total field operations employees	11,000			10,900			10,400			9,900			10,200			10,200			10,300			9,900

FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total open orders*	422			458			456			354			385			403			349			331
Total open orders per day*	6.6			7.2			7.5			5.6			6.0			6.3			5.7			5.3
Purchase % of open orders	65		%	65		%	54		%	60		%	69		%	71		%	71		%	65		%
Refinance % of open orders	35		%	35		%	46		%	40		%	31		%	29		%	29		%	35		%
Total closed orders*	314			334			277			273			282			272			219			263
Total closed orders per day*	4.9			5.2			4.5			4.3			4.4			4.3			3.6			4.2
Purchase % of closed orders	66		%	61		%	52		%	63		%	70		%	71		%	67		%	66		%
Refinance % of closed orders	34		%	39		%	48		%	37		%	30		%	29		%	33		%	34		%
Fee per file	2,364			2,264			2,055			2,382			2,306			2,227			2,151			2,260
Total tile field operations employees	9,700			9,600			9,100			8,700			8,900			8,700			8,600			8,900

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total Open Orders*	92			102			122			98			96			111			120			60
Total open orders per day*	1.4			1.6			2.0			1.6			1.5			1.7			2.0			1.0
Purchase % of open orders	23		%	22		%	17		%	23			23			20			7			—
Refinance % of open orders	77		%	78		%	83		%	77		%	77		%	80		%	93		%	100		%
Total closed orders	64			74			68			61			66			70			76			44
Total closed orders per day*	1.0			1.2			1.1			1.0			1.0			1.1			1.2			0.7
Purchase % of closed orders	26		%	21		%	22		%	26			24			18			6			—
Refinance % of closed orders	74		%	79		%	78		%	74		%	76		%	82		%	94		%	100		%
Fee per file	987			958			921			1,027			1,052			1,038			1,009			1,013
Total ServiceLink operating employees	1,300			1,300			1,300			1,200			1,300			1,500			1,700			970

* 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 September 30, 2015			FNF Group December 31, 2014
	(Unaudited)				(Unaudited)
Cash and investment portfolio		$	4,924		$	4,360
Goodwill		4,543			4,514
Title plant		394			393
Total assets		12,548			11,926
Notes payable		2,600			2,683
Reserve for title claim losses		1,605			1,621
Secured trust deposits		684			622
Redeemable non-controlling interests		344			715
Non-redeemable non-controlling interests		703			(58		)
Total equity and redeemable non-controlling interests		5,825			5,272
Total equity attributable to common shareholders		4,778			4,615



	FNF Group September 30, 2015				FNFV September 30, 2015		Consolidated September 30, 2015			Consolidated December 31, 2014
	(Unaudited)			(Unaudited)			(Unaudited)
Cash and investment portfolio		$	4,924		$	781		$	5,705		$	5,369
Goodwill		4,543			188			4,731			4,721
Title plant		394			—			394			393
Total assets		12,548			1,488			14,036			13,845
Notes payable		2,600			211			2,811			2,803
Reserve for title claim losses		1,605			—			1,605			1,621
Secured trust deposits		684			—			684			622
Redeemable non-controlling interests		344			—			344			715
Non-redeemable non-controlling interests		703			111			814			79
Total equity and redeemable non-controlling interests		5,825			1,124			6,949			6,788
Total equity attributable to common shareholders		4,778			1,013			5,791			5,994

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



	Three Months Ended								Nine Months Ended
	September 30, 2015								September 30, 2015
	Consolidated			Core		FNFV			Consolidated			Core			FNFV
Direct title premiums	$	524		$	524	$	—		$	1,488		$	1,488		$	—
Agency title premiums	647			647		—			1,685			1,685			—
Total title premiums	1,171			1,171		—			3,173			3,173			—
Escrow, title-related and other fees	852			823		29			2,517			2,345			172
Total title and escrow and other	2,023			1,994		29			5,690			5,518			172

Restaurant revenue	349			—		349			1,084			—			1,084
Interest and investment income	30			29		1			93			91			2
Realized gains and losses, net	(10		)	—		(10		)	(19		)	(8		)	(11		)
Total revenue	2,392			2,023		369			6,848			5,601			1,247

Personnel costs	680			641		39			1,993			1,878			115
Other operating expenses	476			452		24			1,424			1,277			147
Cost of restaurant revenue	302			—		302			921			—			921
Agent commissions	495			495		—			1,279			1,279			—
Depreciation and amortization	102			85		17			306			255			51
Title claim loss expense	65			65		—			185			185			—
Interest expense	34			31		3			97			91			6
Total expenses	2,154			1,769		385			6,205			4,965			1,240

Earnings (loss) from continuing operations before taxes	238			254		(16		)	643			636			7
Income tax expense (benefit)	81			95		(14		)	219			237			(18		)
Earnings (loss) from continuing operations before equity investments	157			159		(2		)	424			399			25
(Loss) earnings from equity investments	(19		)	2		(21		)	(16		)	4			(20		)
Net earnings (loss)	138			161		(23		)	408			403			5
Non-controlling interests	6			11		(5		)	20			7			13
Net earnings (loss) attributable to common shareholders	$	132		$	150	$	(18	)	$	388		$	396		$	(8	)

Cash flows provided by operations	280			277		3			660			653			7

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



	Three Months Ended									Nine Months Ended
	September 30, 2014									September 30, 2014
	Consolidated			Core			FNFV			Consolidated			Core			FNFV
Direct title premiums	$	465		$	465		$	—		$	1,249		$	1,249		$	—
Agency title premiums	528			528			—			1,450			1,450			—
Total title premiums	993			993			—			2,699			2,699			—
Escrow, title-related and other fees	736			708			28			2,097			2,015			82
Total title and escrow and other	1,729			1,701			28			4,796			4,714			82

Restaurant revenue	343			—			343			1,055			—			1,055
Interest and investment income	28			27			1			93			88			5
Realized gains and losses, net	(7		)	(2		)	(5		)	(6		)	—			(6		)
Total revenue	2,093			1,726			367			5,938			4,802			1,136

Personnel costs	626			584			42			1,888			1,774			114
Other operating expenses	411			390			21			1,247			1,186			61
Cost of restaurant revenue	296			—			296			899			—			899
Agent commissions	396			396			—			1,098			1,098			—
Depreciation and amortization	101			84			17			302			253			49
Title claim loss expense	59			59			—			169			169			—
Interest expense	32			32			—			96			93			3
Total expenses	1,921			1,545			376			5,699			4,573			1,126

Earnings (loss) from continuing operations before taxes	172			181			(9		)	239			229			10
Income tax expense (benefit)	65			73			(8		)	79			92			(13		)
Earnings from continuing operations before equity investments	107			108			(1		)	160			137			23
(Loss) earnings from equity investments	(7		)	1			(8		)	(43		)	3			(46		)
Net earnings (loss) from continuing operations	100			109			(9		)	117			140			(23		)
Loss from discontinued operations, net of tax	(13		)	—			(13		)	(1		)	(1		)	—
Net earnings (loss)	87			109			(22		)	116			139			(23		)
Non-controlling interests	(15		)	(5		)	(10		)	(75		)	(76		)	1
Net earnings (loss) attributable to common shareholders	$	102		$	114		$	(12	)	$	191		$	215		$	(24	)

Cash flows provided by operations	300			292			8			289			288			1

###

Fidelity National Financial, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 27, 2015

Attached files

Fidelity National Financial, Inc. Reports