United States
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
April 25, 2007
Fidelity National Financial, Inc.
001-32630
(Commission File Number)
Delaware | 16-1725106 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) |
601 Riverside Avenue
Jacksonville, Florida 32204
(904) 854-8100
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EXHIBIT 99.1 |
Item 2.02. Results of Operations and Financial Condition
On April 25, 2007, Fidelity National Financial, Inc. issued an earnings release announcing its financial results for the three-month period ended March 31, 2007. The information in this Current Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
A copy of the earnings release is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2007 EPS of $0.37. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Fidelity National Financial, Inc. |
||||
Date: April 27, 2007 | By: | /s/ Anthony J. Park | ||
Name: Anthony J. Park Title: Chief Financial Officer |
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EXHIBIT INDEX
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2007 EPS of $0.37. |
Pro Forma | ||||||
1st Quarter 2007 | 1st Quarter 2006* | 1st Quarter 2006** | ||||
Total revenue |
$1.37 billion | $2.35 billion | $1.51 billion | |||
Pre-tax margin |
9.3% | 9.3% | 10.3% | |||
Net earnings |
$83.4 million | $106.4 million | $98.8 million | |||
Net earnings per diluted share |
$0.37 | $0.61 | $0.45 | |||
Cash flow from operations |
$85.1 million | $8.0 million | N/A | |||
Return on average equity |
9.6% | 11.3% | N/A |
1st Quarter 2007 | 1st Quarter 2006 | |||
Total revenue |
$1.25 billion | $1.39 billion | ||
Pre-tax earnings |
$114.8 million | $132.5 million | ||
Pre-tax margin |
9.2% | 9.5% |
Month | Direct Orders Opened | Direct Orders Closed | Closing % | |||
January 2007 |
212,900 | 128,700 | 60% | |||
February 2007 |
202,000 | 120,300 | 60% | |||
March 2007 |
237,500 | 141,400 | 60% | |||
First Quarter 2007 |
652,400 | 390,400 | 60% |
Month | Direct Orders Opened | Direct Orders Closed | Closing % | |||
January 2006 |
215,000 | 134,200 | 62% | |||
February 2006 |
213,200 | 133,500 | 63% | |||
March 2006 |
255,600 | 168,600 | 66% | |||
First Quarter 2006 |
683,800 | 436,300 | 64% |
Open | Closed | Commercial | ||||||
Commercial | Commercial | Revenue | Commercial | |||||
Orders | Orders | (In thousands) | Fee Per File | |||||
1st Quarter 2007 |
15,020 | 7,213 | $74,504 | $10,329 | ||||
1st Quarter 2006 |
14,345 | 8,147 | $65,339 | $8,020 |
1st Quarter 2007 | 1st Quarter 2006 | |||
Total revenue |
$99.0 million | $110.4 million | ||
Pre-tax earnings |
$25.4 million*** | $32.5 million | ||
Pre-tax margin |
25.7% | 29.4% |
Three months ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
(Unaudited) | ||||||||
Direct title premiums |
$ | 418,597 | $ | 468,922 | ||||
Agency title premiums |
542,146 | 606,054 | ||||||
Total title premiums |
960,743 | 1,074,976 | ||||||
Escrow and other title-related fees |
244,806 | 253,527 | ||||||
Total title and escrow |
1,205,549 | 1,328,503 | ||||||
Transaction processing services |
| 843,199 | ||||||
Specialty insurance |
94,998 | 106,743 | ||||||
Interest and investment income |
49,959 | 51,363 | ||||||
Realized gains and losses |
6,382 | 11,930 | ||||||
Other |
12,174 | 12,761 | ||||||
Total revenue |
1,369,062 | 2,354,499 | ||||||
Personnel costs |
435,260 | 877,931 | ||||||
Other operating expenses |
234,441 | 493,344 | ||||||
Agent commissions |
420,157 | 469,707 | ||||||
Depreciation and amortization |
29,354 | 124,631 | ||||||
Claim loss expense |
110,986 | 114,492 | ||||||
Interest expense |
11,977 | 54,645 | ||||||
Total expenses |
1,242,175 | 2,134,750 | ||||||
Earnings before income taxes |
126,887 | 219,749 | ||||||
Income tax expense |
45,045 | 81,747 | ||||||
Minority interest |
(1,557 | ) | 31,631 | |||||
Net earnings |
$ | 83,399 | $ | 106,371 | ||||
Net earnings per share basic |
$ | 0.38 | $ | 0.61 | ||||
Net earnings per share diluted |
$ | 0.37 | $ | 0.61 | ||||
Weighted average shares basic |
219,014 | 173,473 | ||||||
Weighted average shares diluted |
222,912 | 173,654 | ||||||
Direct operations orders opened |
652,400 | 831,400 | ||||||
Direct operations orders closed |
390,400 | 526,700 | ||||||
Fee per file |
$ | 1,557 | $ | 1,337 |
Three Months Ended | Specialty | Corporate | ||||||||||||||
March 31, 2007 | Consolidated | FNT | Insurance | and Other | ||||||||||||
Gross operating revenue |
$ | 1,312,721 | $ | 1,200,916 | $ | 94,998 | 16,807 | |||||||||
Interest and investment income |
49,959 | 42,009 | 4,003 | 3,947 | ||||||||||||
Realized gains and losses |
6,382 | 3,161 | (31 | ) | 3,252 | |||||||||||
Total revenue |
1,369,062 | 1,246,086 | 98,970 | 24,006 | ||||||||||||
Personnel costs |
435,260 | 410,573 | 11,599 | 13,088 | ||||||||||||
Other operating expenses |
234,441 | 198,408 | 21,052 | 14,981 | ||||||||||||
Agent commissions |
420,157 | 420,051 | | 106 | ||||||||||||
Depreciation and amortization |
29,354 | 26,917 | 1,558 | 879 | ||||||||||||
Claim loss expense |
110,986 | 72,056 | 38,930 | | ||||||||||||
Interest expense |
11,977 | 3,309 | 405 | 8,263 | ||||||||||||
Total expenses |
1,242,175 | 1,131,314 | 73,544 | 37,317 | ||||||||||||
Pretax earnings |
126,887 | 114,772 | 25,426 | (13,311 | ) | |||||||||||
Pretax margin |
9.3 | % | 9.2 | % | 25.7 | % | | |||||||||
Open orders |
652,400 | 652,400 | | | ||||||||||||
Closed orders |
390,400 | 390,400 | | |
Three Months Ended | Specialty | Corporate | ||||||||||||||||||||||
March 31, 2006 | Consolidated | Eliminations | FNT | FIS | Insurance | and Other | ||||||||||||||||||
Gross operating revenue |
$ | 2,291,206 | ($57,736 | ) | $ | 1,340,746 | $ | 900,935 | $ | 106,743 | $ | 518 | ||||||||||||
Interest and investment income |
51,363 | | 38,617 | 1,709 | 3,656 | 7,381 | ||||||||||||||||||
Realized gains and losses |
11,930 | | 12,629 | 1,023 | (4 | ) | (1,718 | ) | ||||||||||||||||
Total revenue |
2,354,499 | (57,736 | ) | 1,391,992 | 903,667 | 110,395 | 6,181 | |||||||||||||||||
Personnel costs |
877,931 | (5,235 | ) | 452,435 | 413,220 | 11,315 | 6,196 | |||||||||||||||||
Other operating expenses |
493,344 | (33,886 | ) | 209,621 | 286,064 | 31,027 | 518 | |||||||||||||||||
Agent commissions |
469,707 | (18,615 | ) | 488,368 | | | (46 | ) | ||||||||||||||||
Depreciation and amortization |
124,631 | | 26,237 | 96,795 | 1,470 | 129 | ||||||||||||||||||
Claim loss expense |
114,492 | | 80,721 | 65 | 33,869 | (163 | ) | |||||||||||||||||
Interest expense |
54,645 | | 2,082 | 43,268 | 256 | 9,039 | ||||||||||||||||||
Total expenses |
2,134,750 | (57,736 | ) | 1,259,464 | 839,412 | 77,937 | 15,673 | |||||||||||||||||
Pretax earnings |
219,749 | | 132,528 | 64,255 | 32,458 | (9,492 | ) | |||||||||||||||||
Pretax margin |
9.3 | % | | 9.5 | % | 7.1 | % | 29.4 | % | | ||||||||||||||
Open orders |
831,400 | | 683,800 | 147,600 | | | ||||||||||||||||||
Closed orders |
526,700 | | 436,300 | 90,400 | | |
March 31, | December 31, | |||||||
2007 | 2006 | |||||||
(Unaudited) | ||||||||
Cash and investment portfolio |
$ | 4,489,527 | $ | 4,798,195 | ||||
Goodwill |
1,201,832 | 1,154,298 | ||||||
Title Plant |
328,494 | 324,155 | ||||||
Total assets |
7,015,576 | 7,259,559 | ||||||
Notes payable |
502,132 | 491,167 | ||||||
Reserve for claim losses |
1,237,496 | 1,220,636 | ||||||
Secured trust deposits |
756,264 | 905,461 | ||||||
Total stockholders equity |
3,493,773 | 3,474,368 | ||||||
Book value per share |
15.77 | 15.75 |
FNF Capital | ||||||||||||||||||||||
pro forma | Other Pro | |||||||||||||||||||||
Historical | FIS pro forma | adjustments | Forma | FNF | ||||||||||||||||||
FNF | adjustments(1) | (2) | Adjustments | Notes | Pro Forma | |||||||||||||||||
Total title and escrow |
$ | 1,328,503 | ($18,615 | ) | | $ | 18,615 | (3) | $ | 1,328,503 | ||||||||||||
Transaction processing |
843,199 | (882,320 | ) | | 39,121 | (3) | | |||||||||||||||
Specialty insurance |
106,743 | | | | 106,743 | |||||||||||||||||
Interest and investments income |
51,363 | (1,709 | ) | (19 | ) | | 49,635 | |||||||||||||||
Realized gains and losses |
11,930 | (1,023 | ) | | | 10,907 | ||||||||||||||||
Other income |
12,761 | | (2,263 | ) | | 10,498 | ||||||||||||||||
Total revenue |
$ | 2,354,499 | ($903,667 | ) | (2,282 | ) | $ | 57,736 | $ | 1,506,286 | ||||||||||||
Personnel costs |
877,931 | (413,220 | ) | (870 | ) | 5,235 | (4) | 469,076 | ||||||||||||||
Other operating expenses |
493,344 | (286,064 | ) | (163 | ) | 33,886 | (4) | 241,003 | ||||||||||||||
Agent commissions |
469,707 | | | 18,615 | (5) | 488,322 | ||||||||||||||||
Depreciation and amortization |
124,631 | (96,795 | ) | (7 | ) | | 27,829 | |||||||||||||||
Provision for claim losses |
114,492 | (65 | ) | | | 114,427 | ||||||||||||||||
Interest expense |
54,645 | (43,268 | ) | (843 | ) | 159 | (6) | 10,693 | ||||||||||||||
Total expenses |
2,134,750 | (839,412 | ) | (1,883 | ) | 57,895 | 1,351,350 | |||||||||||||||
Earnings before income taxes |
219,749 | (64,255 | ) | (399 | ) | (159 | ) | 154,936 | ||||||||||||||
Income tax expense |
81,747 | (24,586 | ) | (172 | ) | (1,987 | ) | 55,002 | ||||||||||||||
Minority interest |
31,631 | (311 | ) | | (30,214 | ) | (7) | 1,106 | ||||||||||||||
Net income |
$ | 106,371 | ($39,358 | ) | (227 | ) | $ | 32,042 | $ | 98,828 | ||||||||||||
Net income per share-basic |
$ | 0.45 | ||||||||||||||||||||
Pro forma weighted average
shares-basic |
219,000 | (8) | ||||||||||||||||||||
Net income per share-diluted |
$ | 0.45 | ||||||||||||||||||||
Pro forma weighted average
shares-diluted |
222,000 | (8) | ||||||||||||||||||||
(1) | This column represents the historical results of operations of FIS as included in FNFs consolidated results of operations for the period presented. | |
(2) | This column represents the historical results of operations of FNF Capital as included in FNFs consolidated results of operations for the period presented. | |
(3) | This represents the intercompany revenues relating to various agreements recorded on FIS income statement that had already been eliminated from the consolidated results of operations of FNF. These revenues amounted to $57.7 million for the three-month period ended March 31, 2006. | |
(4) | This represents the intercompany expenses related to various agreements that were eliminated in the consolidated results of operations of FNF, but are third-party expenses subsequent to the reorganization transaction. These expenses amounted to $39.1 million for the three-month period ended March 31, 2006. | |
(5) | This represents the additional agent commissions paid by FNF to FIS that were previously eliminated in the consolidated results of FNF, but are a third-party expense subsequent to the reorganization transaction. These commissions amounted to $18.6 million for the three-month period ended March 31, 2006. | |
(6) | This represents intercompany interest expense that is a third-party expense subsequent to the reorganization transaction. These expenses amounted to $0.2 million for the three-month period ended March 31, 2006. | |
(7) | This represents the elimination of the minority interest expense recorded by FNF relating to its earnings in FIS and FNT. Minority interest expense relating to FIS was $16.4 million for the three-month period ended March 31, 2006. Minority interest relating to FNT was $13.8 million for the three-month period ended March 31, 2006. | |
(8) | Amounts presented approximate the actual number of basic and diluted weighted average shares outstanding subsequent to the reorganization transaction. |