FNF Group Reports Third Quarter 2016 Diluted EPS of $0.58 and Adjusted Diluted EPS of $0.69, Pre-Tax Title Margin of 14.1% and Adjusted Pre-Tax Title Margin of 15.8%

November 2, 2016 at 4:15 PM EDT

FNF Group Reports Third Quarter 2016 Diluted EPS of $0.58 and Adjusted Diluted EPS of $0.69, Pre-Tax Title Margin of 14.1% and Adjusted Pre-Tax Title Margin of 15.8% 181.6 KB

JACKSONVILLE, Fla., Nov. 2, 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 nine-month periods ended September 30, 2016.

Total revenue of approximately $2.2 billion in the third quarter versus $2.0 billion in the third quarter of 2015
Third quarter net earnings of $163 million and adjusted net earnings of $192 million versus net earnings of $150 million and adjusted net earnings of $171 million for the third quarter of 2015
Third quarter diluted EPS of $0.58 and adjusted diluted EPS of $0.69 versus diluted EPS of $0.53 and adjusted diluted EPS of $0.60 in the third quarter of 2015
Third quarter net cash flow provided by operations of $360 million and free cash flow provided of $329 million versus net cash flow provided by operations of $279 million and free cash flow provided of $233 million in the third quarter of 2015
Repurchased 1.1 million shares of FNF common stock for nearly $41 million in the third quarter
Income tax expense rate of 37% for the third quarter versus previously stated estimate of 35%

Title

Approximately $1.9 billion in total revenue, a 7% increase over the approximately $1.7 billion in total revenue in the third quarter of 2015
Pre-tax earnings of $263 million and adjusted pre-tax earnings of $295 million versus pre-tax earnings of $239 million and adjusted pre-tax earnings of $267 million in the third quarter of 2015
Pre-tax title margin of 14.1% and adjusted pre-tax title margin of 15.8% versus pre-tax title margin of 13.8% and adjusted pre-tax title margin of 15.4% in the third quarter of 2015
ServiceLink generated $205 million in revenue, adjusted pre-tax earnings of $27 million and an adjusted pre-tax margin of 13.2% for the third quarter
Open orders per day of 9,625 for the third quarter versus 8,031 open orders per day for the third quarter of 2015
Closed orders per day of 6,766 for the third quarter versus 5,906 closed orders per day for the third quarter of 2015
Third quarter purchase orders opened and closed increased by 3% and 4%, respectively, versus the third quarter of 2015; for FNTG only (excluding ServiceLink), purchase orders opened and closed increased by 5% and 4%, respectively versus the third quarter of 2015
Total commercial revenue of $233 million, a 10% decrease from total commercial revenue in the third quarter of 2015, driven by a 3% decrease in closed orders and a 6% decrease in total commercial fee per file; third quarter total commercial open orders were essentially flat with the prior year; third quarter national commercial title revenue of $130 million, an 11% decrease from the third quarter of 2015, driven by a 8% decline in the national commercial fee per file and a 4% decrease in closed orders; third quarter national commercial open orders declined by 3%
Overall third quarter average fee per file of $2,015, a 6% decrease versus the third quarter of 2015
Title claims paid of $57 million, a decrease of $14 million, or 20%, from the third quarter of 2015

Title Orders

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
July 2016		203,000	48%		130,000	58%
August 2016		218,000	50%		156,000	53%
September 2016		195,000	50%		147,000	52%

Third Quarter 2016		616,000	50%		433,000	54%

		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%

* 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 2016 - Total Commercial		50,400		31,900		$233		$7,300
Third Quarter 2015 - Total Commercial		50,300		33,000		$258		$7,800

Third Quarter 2016 - National Commercial		20,400		11,700		$130		$11,100
Third Quarter 2015 - National Commercial		21,000		12,200		$146		$12,000

BKFS

Revenue of $267 million, led by Servicing Technology revenue of approximately $176 million
Pre-tax earnings of $38 million, a $1 million, or 3%, decrease from the third quarter of 2015
Adjusted EBITDA of $115 million, a $10 million, or 10%, increase over the third quarter of 2015 and an adjusted EBITDA margin of 44.6%, a 10 basis point decrease from the third quarter of 2015

"This was another strong quarter in our title insurance business, as we generated adjusted pre-tax title earnings of $295 million and a 15.8% adjusted pre-tax title margin," said Chairman William P. Foley, II. "We benefited from the continued mid-single digit growth in the residential purchase market and the strength of the residential refinance market. However, we did experience a slowdown in commercial revenue in the third quarter, primarily driven by a decrease in the fee per file. That weakness was more prominent in July and August, where we saw a 12% decline in daily commercial revenue. In September, total commercial revenue increased sequentially from July and August and declined by only 3% on a daily basis versus the prior year. Overall, we remain the most profitable company in the industry and we are confident that our title insurance business will have a solid finish to the year.

"Black Knight continues to execute its business plan, generating revenue of $267 million and adjusted EBITDA of $115 million, for a 44.6% adjusted EBITDA margin. FNF's Black Knight ownership stake is currently worth more than $3.2 billion, or nearly $12 per FNF share."

Conference Call
We will host a call with investors and analysts to discuss third quarter 2016 FNF Group results on Thursday, November 3, 2016, beginning at 11:30 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 1:30 p.m. Eastern time on November 3, 2016, through November 10, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 403298.

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., 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 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, 2016*
Direct title premiums	$	556		$	556		$	—		$	—
Agency title premiums	713			713			—			—
Escrow, title related and other fees (1)	904			569			267			68
Total title and escrow	2,173			1,838			267			68

Interest and investment income	28			29			—			(1)
Realized gains and losses, net	(3)			(2)			—			(1)
Total revenue	2,198			1,865			267			66

Personnel costs	690			570			103			17
Agent commissions	545			545			—			—
Other operating expenses	489			379			53			57
Depreciation and amortization	98			38			57			3
Claim loss expense	70			70			—			—
Interest expense	31			—			16			15
Total expenses	1,923			1,602			229			92

Pre-tax earnings (loss) from continuing operations	$	275		$	263		$	38		$	(26)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	3			2			—			1
Deferred revenue add back	2			—			2			—
Purchase price amortization	51			24			25			2
M&A costs	1			—			1			—
Other legal accruals	7			6			1			—
Total non-GAAP adjustments before taxes	$	64		$	32		$	29		$	3

Adjusted pre-tax earnings (loss) from continuing ops.	$	339		$	295		$	67		$	(23)
Adjusted pre-tax margin from continuing operations	15.4		%	15.8		%	24.9		%	—

Purchase price amortization	(51)			(24)			(25)			(2)
Depreciation and amortization	98			38			57			3
Interest expense	31			—			16			15

Adjusted EBITDA	$	417		$	309		$	115		$	(7)
Adjusted EBITDA margin	18.9		%	16.6		%	44.6		%	—

ServiceLink pre-tax earnings	$	1
Purchase price amortization	17
Management fee / other expenses	9
ServiceLink adjusted pre-tax earnings	$	27

1.	BKFS also reported adjusted revenue of $269 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, 2016*
Pre-tax earnings (loss) from continuing operations	$	275	$	263	$	38	$	(26)
Income tax expense (benefit)	102		100		12		(10)
Earnings from equity investments	4		3		—		1
Non-controlling interests	14		2		11		1

Net earnings (loss) attributable to FNF Group common shareholders	$	163	$	164	$	15	$	(16)

EPS attributable to FNF Group common shareholders - basic	$	0.60	$	0.60	$	0.06	$	(0.06)
EPS attributable to FNF Group common shareholders - diluted	$	0.58	$	0.59	$	0.05	$	(0.06)

FNF Group weighted average shares - basic	271
FNF Group weighted average shares - diluted	279

Net earnings (loss) attributable to FNF Group common shareholders	$	163	$	164	$	15	$	(16)

Total non-GAAP, pre-tax adjustments	$	64	$	32	$	29	$	3
Income taxes on non-GAAP adjustments	(22)		(10)		(11)		(1)
Noncontrolling interest on non-GAAP adjustments	(13)		(5)		(8)		—
Total non-GAAP adjustments	$	29	$	17	$	10	$	2

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	192	$	181	$	25	$	(14)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.69	$	0.65	$	0.09	$	(0.05)

Direct orders opened (000's)	616		616
Direct orders closed (000's)	433		433
Fee per file	$	2,015	$	2,015
Actual title claims paid	$	57	$	57

Cash flows provided by operations:	$	360
Non-GAAP adjustments:
M&A costs	1
Other	1
Total non-GAAP adjustments	2

Adjusted cash flows from operations	362
Capital expenditures	33
Free cash flow	$	329

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			537			234			52
Total title and escrow	1,994			1,708			234			52

Interest and investment income	29			30			—			(1)
Total revenue	2,023			1,738			234			51

Personnel costs	641			539			90			12
Agent commissions	495			495			—			—
Other operating expenses	452			364			41			47
Depreciation and amortization	85			36			48			1
Claim loss expense	65			65			—			—
Interest expense	31			—			16			15
Total expenses	1,769			1,499			195			75

Pre-tax earnings (loss) from continuing operations	$	254		$	239		$	39		$	(24)

Non-GAAP adjustments before taxes
Deferred revenue add back and management fee	3			1			2			—
Purchase price amortization	50			27			23			—
Total non-GAAP adjustments before taxes	$	53		$	28		$	25		$	—

Adjusted pre-tax earnings (loss) from continuing operations	$	307		$	267		$	64		$	(24)
Adjusted pre-tax margin from continuing operations	15.2		%	15.4		%	27.1		%	—

Purchase price amortization	(50)			(27)			(23)			—
Depreciation and amortization	85			36			48			1
Interest expense	31			—			16			15

Adjusted EBITDA	$	373		$	276		$	105		$	(8)
Adjusted EBITDA margin	18.4		%	15.9		%	44.7		%	—

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	$	239	$	39	$	(24)

Income tax expense (benefit)	95		87		17		(9)
Earnings from equity investments	2		2		—		—
Non-controlling interests	11		—		10		1

Net earnings (loss) attributable to FNF Group common shareholders	$	150	$	154	$	12	$	(16)

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	$	154	$	12	$	(16)

Total non-GAAP, pre-tax adjustments	$	53	$	28	$	25	$	—
Income taxes on non-GAAP adjustments	(15)		(9)		(6)		—
Noncontrolling interest on non-GAAP adjustments	(17)		(6)		(11)		—
Total non-GAAP adjustments	$	21	$	13	$	8	$	—

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	171	$	167	$	20	$	(16)

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	$	71	$	71

Cash flows provided by operations:	$	279
Non-GAAP adjustments:
THL management fee	1
Total non-GAAP adjustments	1

Adjusted cash flows from operations	280
Capital expenditures	47
Free cash flow	$	233

FNF GROUP YTD 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, 2016*
Direct title premiums	$	1,518		$	1,518		$	—		$	—
Agency title premiums	1,934			1,934			—			—
Escrow, title related and other fees (1)	2,512			1,587			765			160
Total title and escrow	5,964			5,039			765			160

Interest and investment income	93			94			—			(1)
Realized gains and losses, net	(6)			1			—			(7)
Total revenue	6,051			5,134			765			152

Personnel costs	1,971			1,633			294			44
Agent commissions	1,473			1,473			—			—
Other operating expenses	1,359			1,064			149			146
Depreciation and amortization	270			109			154			7
Claim loss expense	190			190			—			—
Interest expense	94			—			48			46
Total expenses	5,357			4,469			645			243

Pre-tax earnings (loss) from continuing operations	$	694		$	665		$	120		$	(91)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	6			(1)			—			7
Deferred revenue add back and management fee	7			1			6			—
Purchase price amortization	134			66			65			3
M&A costs	2			—			2			—
Other legal accruals	12			6			6			—
Total non-GAAP adjustments before taxes	$	161		$	72		$	79		$	10

Adjusted pre-tax earnings (loss) from continuing operations	$	855		$	737		$	199		$	(81)
Adjusted pre-tax margin from continuing operations	14.1		%	14.4		%	25.8		%	—

Purchase price amortization	(134)			(66)			(65)			(3)
Depreciation and amortization	270			109			154			7
Interest expense	94			—			48			46

Adjusted EBITDA	$	1,085		$	780		$	336		$	(31)
Adjusted EBITDA margin	17.9		%	15.2		%	45.0		%	—

1.	BKFS also reported adjusted revenue of $770 million, which includes $5 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
*Nine Months Ended*
*September 30, 2016*
Pre-tax earnings (loss) from continuing operations	$	694	$	665	$	120	$	(91)

Income tax expense (benefit)	250		251		40		(41)
Earnings from equity investments	10		9		—		1
Non-controlling interests	31		(4)		35		—

Net earnings (loss) attributable to FNF Group common shareholders	$	423	$	427	$	45	$	(49)

EPS attributable to FNF Group common shareholders - basic	$	1.56	$	1.57	$	0.17	$	(0.18)
EPS attributable to FNF Group common shareholders - diluted	$	1.51	$	1.53	$	0.16	$	(0.18)

FNF Group weighted average shares - basic	272
FNF Group weighted average shares - diluted	280

Net earnings (loss) attributable to FNF Group common shareholders	$	423	$	427	$	45	$	(49)

Total non-GAAP, pre-tax adjustments	$	161	$	72	$	79	$	10
Income taxes on non-GAAP adjustments	(57)		(23)		(30)		(4)
Noncontrolling interest on non-GAAP adjustments	(34)		(12)		(22)		—
Total non-GAAP adjustments	$	70	$	37	$	27	$	6

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	493	$	464	$	72	$	(43)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	1.76	$	1.66	$	0.26	$	(0.16)

Direct orders opened (000's)	1,708		1,708
Direct orders closed (000's)	1,156		1,156
Fee per file	$	2,055	$	2,055
Actual title claims paid	$	169	$	169

Cash flows provided by operations:	$	709
Non-GAAP adjustments:
M&A costs	2
THL management fee	1
Other	6
Total non-GAAP adjustments	9

Adjusted cash flows from operations	718
Capital expenditures	185
Free cash flow	$	533

FNF GROUP YTD 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 (1)	2,345			1,522			693			130
Total title and escrow	5,518			4,695			693			130

Interest and investment income	91			92			—			(1)
Realized gains and losses, net	(8)			—			(5)			(3)
Total revenue	5,601			4,787			688			126

Personnel costs	1,878			1,559			289			30
Agent commissions	1,279			1,279			—			—
Other operating expenses	1,277			1,036			119			122
Depreciation and amortization	255			108			143			4
Claim loss expense	185			185			—			—
Interest expense	91			—			35			56
Total expenses	4,965			4,167			586			212

Pre-tax earnings (loss) from continuing operations	$	636		$	620		$	102		$	(86)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	8			—			5			3
Deferred revenue add back and management fee	10			2			8			—
Purchase price amortization	137			69			67			1
IPO costs & profits interest acceleration	10			—			10			—
Total non-GAAP adjustments before taxes	$	165		$	71		$	90		$	4

Adjusted pre-tax earnings (loss) from continuing operations	$	801		$	691		$	192		$	(82)
Adjusted pre-tax margin from continuing operations	14.3		%	14.4		%	27.4		%	—

Purchase price amortization	(137)			(69)			(67)			(1)
Depreciation and amortization	255			108			143			4
Interest expense	91			—			35			56

Adjusted EBITDA	$	1,010		$	730		$	303		$	(23)
Adjusted EBITDA margin	18.0		%	15.2		%	43.3		%	—

1.	BKFS also reported adjusted revenue of $700 million, which includes $7 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
*Nine Months Ended*
*September 30, 2015*
Pre-tax earnings (loss) from continuing operations	$	636	$	620	$	102	$	(86)

Income tax expense (benefit)	237		226		17		(6)
Earnings from equity investments	4		4		—		—
Non-controlling interests	7		(11)		17		1

Net earnings (loss) attributable to FNF Group common shareholders	$	396	$	409	$	68	$	(81)

EPS attributable to FNF Group common shareholders - basic	$	1.42	$	1.47	$	0.24	$	(0.29)
EPS attributable to FNF Group common shareholders - diluted	$	1.38	$	1.43	$	0.24	$	(0.29)

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

Net earnings (loss) attributable to FNF Group common shareholders	$	396	$	409	$	68	$	(81)

Total non-GAAP, pre-tax adjustments	$	165	$	71	$	90	$	4
Income taxes on non-GAAP adjustments	(43)		(20)		(21)		(2)
Noncontrolling interest on non-GAAP adjustments	(54)		(19)		(35)		—
Total non-GAAP adjustments	$	68	$	32	$	34	$	2

Adjusted net earnings (loss) attributable to FNF common shareholders	$	464	$	441	$	102	$	(79)
Adjusted EPS attributable to FNF common shareholders - diluted	$	1.62	$	1.54	$	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:	$	665
Non-GAAP adjustments:
THL management fee	3
IPO cost	4
Total non-GAAP adjustments	7

Adjusted cash flows from operations	672
Capital expenditures	127
Free cash flow	$	545

FNF GROUP QUARTERLY OPERATING STATISTICS (Unaudited)

	Q3 2016			Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q2 2015				Q1 2015				Q4 2014
Quarterly Open Orders ('000's except % data)
Total open orders*	616			577				517				441				514				560				578				452
Total open orders per day*	9.6			9.0				8.3				7.0				8.0				8.8				9.5				7.1
Purchase % of open orders	50		%	57			%	55			%	55			%	58			%	57			%	47			%	52			%
Refinance % of open orders	50		%	43			%	45			%	45			%	42			%	43			%	53			%	48			%
Total closed orders*	433			401				322				341				378				408				345				334
Total closed orders per day*	6.8			6.3				5.2				5.4				5.9				6.4				5.7				5.3
Purchase % of closed orders	54		%	58			%	55			%	58			%	60			%	54			%	46			%	57			%
Refinance % of closed orders	46		%	42			%	45			%	42			%	40			%	46			%	54			%	43			%

Commercial (millions, except orders in '000's)
Total commercial revenue**	$	233			$	244			$	211			$	303			$	258			$	258			$	208			$	274
Total commercial open orders**	50.4				49.9				48.5				46.3				50.3				50.8				47.8				—
Total commercial closed orders**	31.9				33.6				30.7				36.3				33.0				32.4				29.6				—

National commercial revenue	$	130			$	144			$	121			$	183			$	146			$	150			$	119			$	166
National commercial open orders	20.4				20.3				19.3				18.1				21.0				21.2				20.4				18.1
National commercial closed orders	11.7				11.6				10.6				13.4				12.2				12.5				11.1				12.7

Total Fee Per File
Fee per file	$	2,015			$	2,116			$	2,032			$	2,272			$	2,133			$	2,026			$	1,833			$	2,131
Residential and local commercial fee per file	$	1,762			$	1,809			$	1,713			$	1,806			$	1,805			$	1,711			$	1,538			$	1,699
Residential fee per file	$	1,594			$	1,645			$	1,522			$	1,548			$	1,589			$	1,514			$	1,346			—
Total commercial fee per file**	$	7,300			$	7,300			$	6,900			$	8,300			$	7,800			$	8,000			$	7,000			—
National commercial fee per file	$	11,100			$	12,400			$	11,400			$	13,600			$	12,000			$	12,000			$	10,700			$	13,100

Total Staffing
Total field operations employees	11,400				10,900				10,900				10,700				11,000				10,900				10,400				9,900

FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total open orders*	518				484				429				360				422				458				456				354
Total open orders per day*	8.1				7.5				6.9				5.7				6.6				7.2				7.5				5.6
Purchase % of open orders	55		%		63		%		61		%		62		%		65		%		65		%		54		%		60		%
Refinance % of open orders	45		%		37		%		39		%		38		%		35		%		35		%		46		%		40		%
Total closed orders*	369				338				265				285				314				334				277				273
Total closed orders per day*	5.8				5.3				4.3				4.5				4.9				5.2				4.5				4.3
Purchase % of closed orders	58		%		63		%		60		%		63		%		66		%		61		%		52		%		63		%
Refinance % of closed orders	42		%		37		%		40		%		37		%		34		%		39		%		48		%		37		%
Fee per file	$	2,205			$	2,337			$	2,261			$	2,521			$	2,364			$	2,264			$	2,055			$	2,382
Total title field operations employees	10,200				9,600				9,700				9,500				9,700				9,600				9,100				8,700

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total Open Orders*	98				93				87				81				92				102				122				98
Total open orders per day*	1.5				1.5				1.4				1.3				1.4				1.6				2.0				1.6
Purchase % of open orders	17		%		22		%		24		%		22		%		23		%		22		%		17		%		23		%
Refinance % of open orders	83		%		78		%		76		%		78		%		77		%		78		%		83		%		77		%
Total closed orders	64				63				57				56				64				74				68				61
Total closed orders per day*	1.0				1.0				0.9				0.9				1.0				1.2				1.1				1.0
Purchase % of closed orders	27		%		27		%		28		%		31		%		26		%		21		%		22		%		26		%
Refinance % of closed orders	73		%		73		%		72		%		69		%		74		%		79		%		78		%		74		%
Fee per file	$	916			$	940			$	972			$	1,003			$	987			$	958			$	921			$	1,027
Total ServiceLink operating employees	1,200				1,300				1,200				1,200				1,300				1,300				1,300				1,200

*	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, 2016			FNF Group December 31, 2015
	(Unaudited)				(Unaudited)
Cash and investment portfolio		$	4,879		$	4,898
Goodwill		4,851			4,572
Title plant		395			395
Total assets		13,001			12,502
Notes payable		2,527			2,593
Reserve for title claim losses		1,602			1,583
Secured trust deposits		922			701
Redeemable non-controlling interests		344			344
Non-redeemable non-controlling interests		772			720
Total equity and redeemable non-controlling interests		6,068			5,849
Total equity attributable to common shareholders		4,952			4,785

FNF Group

September 30, 2016

FNFV

September 30, 2016

Consolidated

September 30, 2016

Consolidated

December 31, 2015

(Unaudited)

(Unaudited)

Cash and investment portfolio

4,879

657

5,536

5,633

Goodwill

4,851

196

5,047

4,760

Title plant

395

—

395

Total assets

13,001

1,385

14,386

13,931

Notes payable

2,527

227

2,754

2,793

Reserve for title claim losses

1,602

—

1,602

1,583

Secured trust deposits

922

—

922

701

Redeemable non-controlling interests

344

—

344

Non-redeemable non-controlling interests

772

117

889

834

Total equity and redeemable non-controlling interests

6,068

1,040

7,108

6,932

Total equity attributable to common shareholders

4,952

923

5,875

5,754

Fidelity National Financial, Inc. CONSOLIDATED SUMMARY OF EARNINGS (In millions) (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30, 2016						September 30, 2016
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	556	$	556	$	—	$	1,518	$	1,518	$	—
Agency title premiums	713		713		—		1,934		1,934		—
Total title premiums	1,269		1,269		—		3,452		3,452		—
Escrow, title-related and other fees	950		904		46		2,636		2,512		124
Total title and escrow and other	2,219		2,173		46		6,088		5,964		124

Restaurant revenue	273		—		273		858		—		858
Interest and investment income	29		28		1		96		93		3
Realized gains and losses, net	(4)		(3)		(1)		5		(6)		11
Total revenue	2,517		2,198		319		7,047		6,051		996

Personnel costs	732		690		42		2,091		1,971		120
Other operating expenses	514		489		25		1,439		1,359		80
Cost of restaurant revenue	237		—		237		727		—		727
Agent commissions	545		545		—		1,473		1,473		—
Depreciation and amortization	113		98		15		315		270		45
Title claim loss expense	70		70		—		190		190		—
Interest expense	35		31		4		102		94		8
Total expenses	2,246		1,923		323		6,337		5,357		980

Earnings (loss) from continuing operations before taxes	271		275		(4)		710		694		16
Income tax expense (benefit)	95		102		(7)		245		250		(5)
Earnings from continuing operations before equity investments	176		173		3		465		444		21
(Loss) earnings from equity investments	(7)		4		(11)		(6)		10		(16)
Net earnings (loss)	169		177		(8)		459		454		5
Non-controlling interests	13		14		(1)		32		31		1
Net earnings (loss) attributable to common shareholders	$	156	$	163	$	(7)	$	427	$	423	$	4

Cash flows provided by operations	372		360		12		745		709		36

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	283		279		4		673		665		8

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnf-group-reports-third-quarter-2016-diluted-eps-of-058-and-adjusted-diluted-eps-of-069-pre-tax-title-margin-of-141-and-adjusted-pre-tax-title-margin-of-158-300356183.html

SOURCE Fidelity National Financial, Inc.

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FNF Group Reports Third Quarter 2016 Diluted EPS of $0.58 and Adjusted Diluted EPS of $0.69, Pre-Tax Title Margin of 14.1% and Adjusted Pre-Tax Title Margin of 15.8%

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