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):
July 25, 2006
Fidelity National Title Group, 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 July 25, 2006, Fidelity National Title Group, Inc. issued an earnings release announcing its financial results for the Second Quarter of 2006. 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 Title Group, Inc. Reports Second Quarter 2006 EPS of $0.67. |
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. |
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Date: July 26, 2006 | 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 Title Group, Inc. Reports Second Quarter 2006 EPS of $0.67. |
PRESS RELEASE |
2nd Quarter | 2nd Quarter | |||
2006 | 2005 | |||
Total revenue |
$1.566 billion | $1.687 billion | ||
Pre-tax margin |
11.6% | 15.4% | ||
Net earnings |
$116.5 million | $160.6 million | ||
Net earnings per share diluted |
$0.67 | $0.93 | ||
Cash flow from operations |
$221.7 million | $332.0 million | ||
Return on average equity |
18.4% | 22.3% |
Six Months Ended | Six Months Ended | |||
June 30, 2006 | June 30, 2005 | |||
Total revenue |
$2.959 billion | $2.952 billion | ||
Pre-tax margin |
10.3% | 13.2% | ||
Net earnings |
$195.6 million | $242.9 million | ||
Net earnings per share diluted |
$1.13 | $1.40 | ||
Cash flow from operations |
$301.9 million | $391.2 million | ||
Return on average equity |
15.6% | 17.0% |
Direct Orders | Direct Orders | |||||||||||
Month | Opened | Closed | Closing % | |||||||||
April 2006 |
217,700 | 146,400 | 67 | % | ||||||||
May 2006 |
243,000 | 161,800 | 67 | % | ||||||||
June 2006 |
236,500 | 165,600 | 70 | % | ||||||||
Second Quarter 2006 |
697,200 | 473,800 | 68 | % | ||||||||
Direct Orders | Direct Orders | |||||||||||
Month | Opened | Closed | Closing % | |||||||||
April 2005 |
259,600 | 177,100 | 68 | % | ||||||||
May 2005 |
268,700 | 180,200 | 67 | % | ||||||||
June 2005 |
301,200 | 203,100 | 67 | % | ||||||||
Second Quarter 2005 |
829,500 | 560,400 | 68 | % | ||||||||
Open | Closed | Commercial | ||||||||||||||
Commercial | Commercial | Revenue | Commercial | |||||||||||||
Orders | Orders | (In thousands) | Fee Per File | |||||||||||||
2nd Quarter 2006 |
14,240 | 9,064 | $ | 68,936 | $ | 7,605 | ||||||||||
2nd Quarter 2005 |
14,644 | 8,761 | $ | 66,821 | $ | 7,627 |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Direct title premiums |
$ | 504,532 | $ | 561,191 | $ | 952,301 | $ | 1,017,396 | ||||||||
Agency title premiums |
708,714 | 771,687 | 1,337,134 | 1,304,200 | ||||||||||||
Total title premiums |
1,213,246 | 1,332,878 | 2,289,435 | 2,321,596 | ||||||||||||
Escrow and other title-related fees |
287,598 | 300,328 | 541,657 | 543,465 | ||||||||||||
Total title and escrow |
1,500,844 | 1,633,206 | 2,831,092 | 2,865,061 | ||||||||||||
Interest and investment income |
46,717 | 24,576 | 84,729 | 45,430 | ||||||||||||
Realized gains and losses |
6,107 | 18,486 | 20,613 | 21,922 | ||||||||||||
Other |
11,931 | 10,945 | 22,429 | 20,020 | ||||||||||||
Total revenue |
1,565,599 | 1,687,213 | 2,958,863 | 2,952,433 | ||||||||||||
Personnel costs |
466,221 | 479,943 | 918,656 | 904,603 | ||||||||||||
Other operating expenses |
242,645 | 241,358 | 453,538 | 451,093 | ||||||||||||
Agent commissions |
544,169 | 595,220 | 1,032,537 | 1,005,121 | ||||||||||||
Depreciation and amortization |
27,194 | 24,523 | 53,431 | 49,389 | ||||||||||||
Claim loss expense |
91,017 | 86,451 | 171,738 | 150,677 | ||||||||||||
Interest expense |
12,374 | 421 | 23,700 | 724 | ||||||||||||
Total expenses |
1,383,620 | 1,427,916 | 2,653,600 | 2,561,607 | ||||||||||||
Earnings before income taxes |
181,979 | 259,297 | 305,263 | 390,826 | ||||||||||||
Income tax expense |
64,603 | 97,774 | 108,369 | 146,637 | ||||||||||||
Minority interest |
863 | 945 | 1,279 | 1,292 | ||||||||||||
Net earnings |
$ | 116,513 | $ | 160,578 | $ | 195,615 | $ | 242,897 | ||||||||
Net earnings per share basic |
$ | 0.67 | $ | 0.93 | $ | 1.13 | $ | 1.40 | ||||||||
Net earnings per share diluted |
$ | 0.67 | $ | 0.93 | $ | 1.13 | $ | 1.40 | ||||||||
Weighted average shares basic |
173,475 | 173,520 | 173,475 | 173,520 | ||||||||||||
Weighted average shares diluted |
173,647 | 173,520 | 173,651 | 173,520 | ||||||||||||
Direct operations orders opened |
697,200 | 829,500 | 1,381,000 | 1,577,200 | ||||||||||||
Direct operations orders closed |
473,800 | 560,400 | 910,100 | 1,048,900 | ||||||||||||
Fee Per File |
$ | 1,597 | $ | 1,500 | $ | 1,566 | $ | 1,447 |
(1) | For the 2005 period, net earnings per share is a pro forma presentation based on the distribution of 173,520 shares on October 17, 2005 |
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
(Unaudited) | ||||||||
Cash and investment portfolio |
$ | 4,098,288 | $ | 3,762,895 | ||||
Goodwill |
1,051,523 | 1,051,526 | ||||||
Title plants |
314,832 | 308,675 | ||||||
Total assets |
6,199,666 | 5,900,533 | ||||||
Notes payable |
573,197 | 603,262 | ||||||
Reserve for claim losses |
1,130,444 | 1,063,857 | ||||||
Secured trust deposits |
1,001,727 | 882,602 | ||||||
Total stockholders equity |
2,551,178 | 2,480,037 | ||||||
Book value per share |
14.64 | 14.23 |