United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Item 2.02. | Results of Operations and Financial Condition | |
On February 13, 2020 , Fidelity National Financial, Inc. (the "Company", "FNF") issued an earnings release announcing its financial results for the Fourth Quarter of 2019. 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 FNF earnings release is attached as Exhibit 99.1.
Item 9.01. | Financial Statements and Exhibits | |
(d) Exhibits
Exhibit | Description | ||||
99.1 | |||||
101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
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: | February 13, 2020 | By: | /s/ Anthony J. Park | ||
Name: | Anthony J. Park | ||||
Title: | Chief Financial Officer | ||||
FNF Reports Fourth Quarter 2019 Diluted EPS of $1.22 and Adjusted Diluted EPS of $0.95, Pre-Tax Title Margin of 20.3% and Adjusted Pre-Tax Title Margin of 16.3%
Jacksonville, Fla. - (February 13, 2020) - Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, today reported operating results for the three and twelve-month periods ended December 31, 2019.
• | Total revenue of approximately $2.4 billion in the fourth quarter versus $1.7 billion in the fourth quarter of 2018 |
• | Fourth quarter net earnings of $340 million and adjusted net earnings of $263 million versus net earnings of $44 million and adjusted net earnings of $175 million for the fourth quarter of 2018 |
• | Fourth quarter diluted EPS of $1.22 and adjusted diluted EPS of $0.95 versus diluted EPS of $0.16 and adjusted diluted EPS of $0.63 in the fourth quarter of 2018 |
• | Realized gains were $131 million in the fourth quarter versus realized losses of $144 million in the fourth quarter of 2018 |
Title
• | Total revenue of approximately $2.3 billion versus approximately $1.7 billion in total revenue in the fourth quarter of 2018 |
• | Pre-tax earnings of $468 million and adjusted pre-tax earnings of $355 million versus pre-tax earnings of $102 million and adjusted pre-tax earnings of $258 million in the fourth quarter of 2018 |
• | Pre-tax title margin of 20.3% and adjusted pre-tax title margin of 16.3% versus pre-tax title margin of 6.1% and adjusted pre-tax title margin of 14.2% in the fourth quarter of 2018 |
• | Fourth quarter purchase orders opened increased 3% on a daily basis and purchase orders closed increased 5% on a daily basis versus the fourth quarter of 2018 |
• | Total commercial revenue of $321 million, a 2% decline over total commercial revenue in the fourth quarter of 2018, driven by a 12% decline in fee per file partially offset by a 11% increase in closed orders; fourth quarter total commercial open orders increased 20% compared to the prior year |
• | Overall fourth quarter average fee per file of $2,384, a 15% decrease versus the fourth quarter of 2018 |
Title Orders
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
October 2019 | 195,000 | 50% | 153,000 | 48% | ||||
November 2019 | 157,000 | 49% | 127,000 | 49% | ||||
December 2019 | 140,000 | 51% | 137,000 | 50% | ||||
Fourth Quarter 2019 | 492,000 | 50% | 417,000 | 49% | ||||
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
October 2018 | 150,000 | 69% | 111,000 | 68% | ||||
November 2018 | 123,000 | 68% | 95,000 | 70% | ||||
December 2018 | 106,000 | 65% | 95,000 | 68% | ||||
Fourth Quarter 2018 | 379,000 | 67% | 301,000 | 69% | ||||
* Includes an immaterial number of non-purchase and non-refinance orders
1
Open | Closed | Commercial | |||||||||||||
Commercial | Commercial | Revenue | Commercial | ||||||||||||
Orders | Orders | (In millions) | Fee Per File | ||||||||||||
Fourth Quarter 2019 - Total Commercial | 55,100 | 39,100 | $321 | $8,200 | |||||||||||
Fourth Quarter 2018 - Total Commercial | 46,000 | 35,200 | $328 | $9,300 | |||||||||||
“Our strong fourth quarter results rounded out a banner year for our title business. In the quarter we generated adjusted pre-tax title earnings of $355 million and an adjusted pre-tax title margin of 16.3%. Total commercial revenues were $321 million for the quarter which compares favorably to the record breaking results that we posted in the 2018 fourth quarter where total commercial revenues were $328 million,” commented Chairman William P. Foley, II. “For the full year 2019, we generated adjusted pre-tax title earnings of $1.3 billion, a record year, and an adjusted pre-tax title margin of 16.3%, our best year since 2003. Looking ahead to 2020, we expect mortgage originations to moderate through the year from the very strong levels enjoyed in 2019 as refinance volumes naturally ease. We will remain vigilant on expenses as we manage this expected slowdown in volumes.
Following the termination of the merger agreement with Stewart Information Services, the Board and management underwent a comprehensive review of FNF’s capital allocation strategy and determined that expanding into the annuity market through the acquisition of FGL Holdings (“F&G”), announced subsequent to quarter end, would best maximize value for our shareholders. After three years as a minority owner and with the advent of new leadership at F&G, we decided to acquire the remaining interest in F&G as a way to diversify our earnings and reduce the risk and volatility inherent in our stand-alone title operations. F&G offers an attractive return on our capital investment in an industry with strong secular growth tailwinds that will perform well in economic environments that may be more challenging for title insurance. FNF is excited to welcome F&G's employees and policy holders to the FNF family.”
Mr. Foley concluded, “In 2019 the Board focused on returning capital to shareholders having increased our quarterly cash dividend 6.5% to $0.33 per share in addition to repurchasing 2,120,000 shares throughout the year. FNF’s share repurchase plan has 22.2 million shares remaining on the authorization. The Board will continue to evaluate capital allocation including share repurchases, dividends, debt paydown and further investments in our business segments.”
Conference Call
We will host a call with investors and analysts to discuss fourth quarter 2019 FNF results on Friday, February 14, 2020, beginning at 12:00 p.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 fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com. The telephone replay will be available from 3:00 p.m. Eastern Time on February 14, 2020, through February 21, 2020, by dialing 1-844-512-2921 (USA) or 1-412-317-6671. The access code will be 13697834.
About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance 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. More information about FNF can be found at 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, FNF 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 adjusted pre-tax earnings, adjusted pre-tax earnings as a percentage of adjusted revenue (adjusted pre-tax title margin), adjusted net earnings, and adjusted EPS.
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.
2
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: the ability to consummate the proposed F&G transaction; the ability to obtain requisite regulatory, shareholder and stockholder approval and the satisfaction of other conditions to the consummation of the proposed F&G transaction; the ability of FNF to successfully integrate F&G's operations and employees; the potential impact of the announcement or consummation of the proposed F&G transaction on relationships, including with employees, suppliers, customers and competitors; 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; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission ("SEC").
FNF-E
SOURCE: Fidelity National Financial, Inc.
CONTACT: Jamie Lillis, Managing Director, Solebury Trout, 203-428-3223, jlillis@soleburytrout.com
3
FIDELITY NATIONAL FINANCIAL, INC.
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Direct title premiums | $ | 656 | $ | 656 | $ | — | ||||||
Agency title premiums | 828 | 828 | — | |||||||||
Escrow, title related and other fees | 692 | 642 | 50 | |||||||||
Total title and escrow | 2,176 | 2,126 | 50 | |||||||||
Interest and investment income | 55 | 49 | 6 | |||||||||
Realized gains and losses, net | 131 | 135 | (4 | ) | ||||||||
Total revenue | 2,362 | 2,310 | 52 | |||||||||
Personnel costs | 717 | 681 | 36 | |||||||||
Agent commissions | 628 | 628 | — | |||||||||
Other operating expenses | 455 | 428 | 27 | |||||||||
Depreciation and amortization | 46 | 39 | 7 | |||||||||
Claim loss expense | 66 | 66 | — | |||||||||
Interest expense | 11 | — | 11 | |||||||||
Total expenses | 1,923 | 1,842 | 81 | |||||||||
Pre-tax earnings (loss) | $ | 439 | $ | 468 | $ | (29 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | (131 | ) | (135 | ) | 4 | |||||||
Purchase price amortization | 27 | 22 | 5 | |||||||||
Severance costs | 6 | — | 6 | |||||||||
Total non-GAAP adjustments before taxes | $ | (98 | ) | $ | (113 | ) | $ | 15 | ||||
Adjusted pre-tax earnings (loss) | $ | 341 | $ | 355 | $ | (14 | ) | |||||
Adjusted pre-tax margin | 15.3 | % | 16.3 | % | — | % | ||||||
Pre-tax earnings (loss) | $ | 439 | $ | 468 | $ | (29 | ) | |||||
Income tax expense (benefit) | 98 | 103 | (5 | ) | ||||||||
Earnings from equity investments | 3 | 2 | 1 | |||||||||
Non-controlling interests | 4 | 5 | (1 | ) | ||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 340 | $ | 362 | $ | (22 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 1.24 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 1.22 | ||||||||||
FNF, Inc. weighted average shares - basic | 274 | |||||||||||
FNF, Inc. weighted average shares - diluted | 278 | |||||||||||
4
FIDELITY NATIONAL FINANCIAL, INC.
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 340 | $ | 362 | $ | (22 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | (98 | ) | $ | (113 | ) | $ | 15 | ||||
Income taxes on non-GAAP adjustments | 24 | 28 | (4 | ) | ||||||||
Noncontrolling interest on non-GAAP adjustments | (3 | ) | (3 | ) | — | |||||||
Total non-GAAP adjustments | $ | (77 | ) | $ | (88 | ) | $ | 11 | ||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 263 | $ | 274 | $ | (11 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.95 | ||||||||||
Direct orders opened (000's) | 492 | 492 | ||||||||||
Direct orders closed (000's) | 417 | 417 | ||||||||||
Fee per file | $ | 2,384 | $ | 2,384 | ||||||||
Actual title claims paid | $ | 53 | $ | 53 | ||||||||
Cash flows provided by operations | $ | 428 | ||||||||||
5
FIDELITY NATIONAL FINANCIAL, INC.
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2018 | ||||||||||||
Direct title premiums | $ | 576 | $ | 576 | $ | — | ||||||
Agency title premiums | 672 | 672 | — | |||||||||
Escrow, title related and other fees | 537 | 521 | 16 | |||||||||
Total title and escrow | 1,785 | 1,769 | 16 | |||||||||
Interest and investment income | 52 | 48 | 4 | |||||||||
Realized gains and losses, net | (144 | ) | (135 | ) | (9 | ) | ||||||
Total revenue | 1,693 | 1,682 | 11 | |||||||||
Personnel costs | 613 | 613 | — | |||||||||
Agent commissions | 513 | 513 | — | |||||||||
Other operating expenses | 394 | 360 | 34 | |||||||||
Depreciation and amortization | 44 | 38 | 6 | |||||||||
Claim loss expense | 56 | 56 | — | |||||||||
Interest expense | 12 | — | 12 | |||||||||
Total expenses | 1,632 | 1,580 | 52 | |||||||||
Pre-tax earnings (loss) | $ | 61 | $ | 102 | $ | (41 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | 144 | 135 | 9 | |||||||||
Purchase price amortization | 27 | 21 | 6 | |||||||||
Transaction costs | 4 | — | 4 | |||||||||
Total non-GAAP adjustments before taxes | $ | 175 | $ | 156 | $ | 19 | ||||||
Adjusted pre-tax earnings (loss) | $ | 236 | $ | 258 | $ | (22 | ) | |||||
Adjusted pre-tax margin | 12.8 | % | 14.2 | % | — | % | ||||||
Pre-tax earnings (loss) | $ | 61 | $ | 102 | $ | (41 | ) | |||||
Income tax expense (benefit) | 16 | 26 | (10 | ) | ||||||||
Earnings from equity investments | 1 | 1 | — | |||||||||
Non-controlling interests | 2 | 1 | 1 | |||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 44 | $ | 76 | $ | (32 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 0.16 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.16 | ||||||||||
FNF, Inc. weighted average shares - basic | 274 | |||||||||||
FNF, Inc. weighted average shares - diluted | 277 | |||||||||||
6
FIDELITY NATIONAL FINANCIAL, INC.
FOURTH QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2018 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 44 | $ | 76 | $ | (32 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 175 | $ | 156 | $ | 19 | ||||||
Income taxes on non-GAAP adjustments | (40 | ) | (36 | ) | (4 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (4 | ) | (3 | ) | (1 | ) | ||||||
Total non-GAAP adjustments | $ | 131 | $ | 117 | $ | 14 | ||||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 175 | $ | 193 | $ | (18 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.63 | ||||||||||
Direct orders opened (000's) | 379 | 379 | ||||||||||
Direct orders closed (000's) | 301 | 301 | ||||||||||
Fee per file | $ | 2,803 | $ | 2,803 | ||||||||
Actual title claims paid | $ | 58 | $ | 58 | ||||||||
Cash flows provided by operations | $ | 273 | ||||||||||
7
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Twelve Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Direct title premiums | $ | 2,381 | $ | 2,381 | $ | — | ||||||
Agency title premiums | 2,961 | 2,961 | — | |||||||||
Escrow, title related and other fees | 2,584 | 2,389 | 195 | |||||||||
Total title and escrow | 7,926 | 7,731 | 195 | |||||||||
Interest and investment income | 225 | 202 | 23 | |||||||||
Realized gains and losses, net | 318 | 326 | (8 | ) | ||||||||
Total revenue | 8,469 | 8,259 | 210 | |||||||||
Personnel costs | 2,696 | 2,562 | 134 | |||||||||
Agent commissions | 2,258 | 2,258 | — | |||||||||
Other operating expenses | 1,681 | 1,509 | 172 | |||||||||
Depreciation and amortization | 178 | 154 | 24 | |||||||||
Claim loss expense | 240 | 240 | — | |||||||||
Interest expense | 47 | — | 47 | |||||||||
Total expenses | 7,100 | 6,723 | 377 | |||||||||
Pre-tax earnings (loss) | $ | 1,369 | $ | 1,536 | $ | (167 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | (318 | ) | (326 | ) | 8 | |||||||
Purchase price amortization | 105 | 86 | 19 | |||||||||
Transaction costs | 58 | — | 58 | |||||||||
Severance costs | 6 | — | 6 | |||||||||
Other adjustments | 1 | 1 | — | |||||||||
Total non-GAAP adjustments before taxes | $ | (148 | ) | $ | (239 | ) | $ | 91 | ||||
Adjusted pre-tax earnings (loss) | $ | 1,221 | $ | 1,297 | $ | (76 | ) | |||||
Adjusted pre-tax margin | 15.0 | % | 16.3 | % | — | % | ||||||
Pre-tax earnings (loss) | $ | 1,369 | $ | 1,536 | $ | (167 | ) | |||||
Income tax expense (benefit) | 308 | 363 | (55 | ) | ||||||||
Earnings from equity investments | 15 | 13 | 2 | |||||||||
Non-controlling interests | 14 | 15 | (1 | ) | ||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 1,062 | $ | 1,171 | $ | (109 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 3.89 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 3.83 | ||||||||||
FNF, Inc. weighted average shares - basic | 273 | |||||||||||
FNF, Inc. weighted average shares - diluted | 277 | |||||||||||
8
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Twelve Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 1,062 | $ | 1,171 | $ | (109 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | (148 | ) | $ | (239 | ) | $ | 91 | ||||
Income taxes on non-GAAP adjustments | 38 | 60 | (22 | ) | ||||||||
Noncontrolling interest on non-GAAP adjustments | (12 | ) | (11 | ) | (1 | ) | ||||||
Total non-GAAP adjustments | $ | (122 | ) | $ | (190 | ) | $ | 68 | ||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 940 | $ | 981 | $ | (41 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 3.39 | ||||||||||
Direct orders opened (000's) | 2,066 | 2,066 | ||||||||||
Direct orders closed (000's) | 1,448 | 1,448 | ||||||||||
Fee per file | $ | 2,511 | $ | 2,511 | ||||||||
Actual title claims paid | $ | 220 | $ | 220 | ||||||||
Cash flows provided by operations | $ | 1,121 | ||||||||||
9
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Twelve Months Ended | Consolidated | Title | Corporate and Other | |||||||||
December 31, 2018 | ||||||||||||
Direct title premiums | $ | 2,221 | $ | 2,221 | $ | — | ||||||
Agency title premiums | 2,690 | 2,690 | — | |||||||||
Escrow, title related and other fees | 2,615 | 2,204 | 411 | |||||||||
Total title and escrow | 7,526 | 7,115 | 411 | |||||||||
Interest and investment income | 177 | 170 | 7 | |||||||||
Realized gains and losses, net | (109 | ) | (110 | ) | 1 | |||||||
Total revenue | 7,594 | 7,175 | 419 | |||||||||
Personnel costs | 2,538 | 2,444 | 94 | |||||||||
Agent commissions | 2,059 | 2,059 | — | |||||||||
Other operating expenses | 1,801 | 1,421 | 380 | |||||||||
Depreciation and amortization | 182 | 154 | 28 | |||||||||
Claim loss expense | 221 | 221 | — | |||||||||
Interest expense | 43 | — | 43 | |||||||||
Total expenses | 6,844 | 6,299 | 545 | |||||||||
Pre-tax earnings (loss) | $ | 750 | $ | 876 | $ | (126 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | 109 | 110 | (1 | ) | ||||||||
Purchase price amortization | 109 | 87 | 22 | |||||||||
Transaction costs | 17 | — | 17 | |||||||||
Sales tax contingency | 6 | 6 | — | |||||||||
Other adjustments | 3 | 1 | 2 | |||||||||
Total non-GAAP adjustments before taxes | $ | 244 | $ | 204 | $ | 40 | ||||||
Adjusted pre-tax earnings (loss) | $ | 994 | $ | 1,080 | $ | (86 | ) | |||||
Adjusted pre-tax margin | 12.9 | % | 14.8 | % | — | % | ||||||
Pre-tax earnings (loss) | $ | 750 | $ | 876 | $ | (126 | ) | |||||
Income tax expense (benefit) | 120 | 163 | (43 | ) | ||||||||
Earnings from equity investments | 5 | 4 | 1 | |||||||||
Non-controlling interests | 7 | 8 | (1 | ) | ||||||||
Net earnings attributable to FNF, Inc. common shareholders | $ | 628 | $ | 709 | $ | (81 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 2.30 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 2.26 | ||||||||||
FNF, Inc. weighted average shares - basic | 273 | |||||||||||
FNF, Inc. weighted average shares - diluted | 278 | |||||||||||
10
FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
Consolidated | Title | Corporate and Other | ||||||||||
Twelve Months Ended | ||||||||||||
December 31, 2018 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 628 | $ | 709 | $ | (81 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 244 | $ | 204 | $ | 40 | ||||||
Income taxes on non-GAAP adjustments | (55 | ) | (46 | ) | (9 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (14 | ) | (11 | ) | (3 | ) | ||||||
Change in tax estimate | (45 | ) | (45 | ) | — | |||||||
Black Knight tax contingency | (8 | ) | — | (8 | ) | |||||||
Total non-GAAP adjustments | $ | 122 | $ | 102 | $ | 20 | ||||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 750 | $ | 811 | $ | (61 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 2.70 | ||||||||||
Direct orders opened (000's) | 1,818 | 1,818 | ||||||||||
Direct orders closed (000's) | 1,315 | 1,315 | ||||||||||
Fee per file | $ | 2,585 | $ | 2,585 | ||||||||
Actual title claims paid | $ | 223 | $ | 223 | ||||||||
Cash flows provided by operations | $ | 943 | ||||||||||
11
FIDELITY NATIONAL FINANCIAL, INC.
QUARTERLY OPERATING STATISTICS
(Unaudited)
Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | |||||||||||||||||||||||||
Quarterly Opened Orders ('000's except % data) | ||||||||||||||||||||||||||||||||
Total opened orders* | 492 | 592 | 544 | 438 | 379 | 456 | 505 | 478 | ||||||||||||||||||||||||
Total opened orders per day* | 7.8 | 9.3 | 8.5 | 7.2 | 6.0 | 7.2 | 7.9 | 7.7 | ||||||||||||||||||||||||
Purchase % of opened orders | 50 | % | 52 | % | 61 | % | 65 | % | 67 | % | 69 | % | 71 | % | 66 | % | ||||||||||||||||
Refinance % of opened orders | 50 | % | 48 | % | 39 | % | 35 | % | 33 | % | 31 | % | 29 | % | 34 | % | ||||||||||||||||
Total closed orders* | 417 | 409 | 359 | 263 | 301 | 339 | 362 | 313 | ||||||||||||||||||||||||
Total closed orders per day* | 6.6 | 6.4 | 5.6 | 4.3 | 4.8 | 5.4 | 5.7 | 5.0 | ||||||||||||||||||||||||
Purchase % of closed orders | 49 | % | 55 | % | 65 | % | 66 | % | 69 | % | 71 | % | 71 | % | 62 | % | ||||||||||||||||
Refinance % of closed orders | 51 | % | 45 | % | 35 | % | 34 | % | 31 | % | 29 | % | 29 | % | 38 | % | ||||||||||||||||
Commercial (millions, except orders in '000's) | ||||||||||||||||||||||||||||||||
Total commercial revenue | $ | 321 | $ | 301 | $ | 286 | $ | 231 | $ | 328 | $ | 276 | $ | 280 | $ | 235 | ||||||||||||||||
Total commercial opened orders | 55.1 | 56.0 | 58.6 | 49.8 | 46.0 | 48.9 | 54.2 | 52.8 | ||||||||||||||||||||||||
Total commercial closed orders | 39.1 | 36.4 | 34.0 | 30.0 | 35.2 | 31.2 | 35.1 | 31.5 | ||||||||||||||||||||||||
National commercial revenue | $ | 188 | $ | 173 | $ | 165 | $ | 123 | $ | 197 | $ | 157 | $ | 155 | $ | 128 | ||||||||||||||||
National commercial opened orders | 22.6 | 23.8 | 25.3 | 20.6 | 19.1 | 19.8 | 23.0 | 21.1 | ||||||||||||||||||||||||
National commercial closed orders | 16.2 | 14.1 | 12.7 | 10.5 | 13.2 | 12.0 | 12.9 | 11.2 | ||||||||||||||||||||||||
Total Fee Per File | ||||||||||||||||||||||||||||||||
Fee per file | $ | 2,384 | $ | 2,459 | $ | 2,677 | $ | 2,567 | $ | 2,803 | $ | 2,623 | $ | 2,579 | $ | 2,344 | ||||||||||||||||
Residential fee per file | $ | 1,792 | $ | 1,928 | $ | 2,075 | $ | 1,964 | $ | 2,003 | $ | 2,032 | $ | 2,051 | $ | 1,816 | ||||||||||||||||
Total commercial fee per file | $ | 8,200 | $ | 8,300 | $ | 8,400 | $ | 7,700 | $ | 9,300 | $ | 8,800 | $ | 8,000 | $ | 7,500 | ||||||||||||||||
National commercial fee per file | $ | 11,600 | $ | 12,300 | $ | 13,000 | $ | 11,700 | $ | 14,900 | $ | 13,100 | $ | 12,000 | $ | 11,400 | ||||||||||||||||
Total Staffing | ||||||||||||||||||||||||||||||||
Total field operations employees** | 12,300 | 12,200 | 12,000 | 11,700 | 11,800 | 12,400 | 12,500 | 12,400 | ||||||||||||||||||||||||
* Includes an immaterial number of non-purchase and non-refinance orders
**During Q4 2019 we established an automated payroll data feed, based on hours worked, as a new process to determine number of field operation employees. This new process captures shared services and other operational employees that were not previously included. All previous periods have been restated using the new method.
FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In millions)
FNF, Inc. December 31, 2019 | FNF, Inc. December 31, 2018 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
Cash and investment portfolio | $ | 5,760 | $ | 4,806 | ||||||
Goodwill | 2,727 | 2,726 | ||||||||
Title plant | 404 | 405 | ||||||||
Total assets | 10,677 | 9,301 | ||||||||
Notes payable | 838 | 836 | ||||||||
Reserve for title claim losses | 1,509 | 1,488 | ||||||||
Secured trust deposits | 791 | 822 | ||||||||
Redeemable non-controlling interests | 344 | 344 | ||||||||
Non-redeemable non-controlling interests | (17 | ) | (2 | ) | ||||||
Total equity and non-controlling interests | 5,709 | 4,972 | ||||||||
Total equity attributable to common shareholders | 5,382 | 4,630 | ||||||||
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