Delaware (State or Other Jurisdiction of Incorporation or Organization) | 16-1725106 (IRS Employer Identification Number) |
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 |
Exhibit | Description | ||||
99.1 | Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2013 Earnings. |
Fidelity National Financial, Inc. | |||||
Date: | May 1, 2013 | By: | /s/ Anthony J. Park | ||
Name: | Anthony J. Park | ||||
Title: | Chief Financial Officer |
Exhibit | Description | ||||
99.1 | Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2013 Earnings. |
• | Adjusted pre-tax title margin of 12.3% for the first quarter versus 10.7% in the first quarter of 2012, nearly a 170 basis point, or 16%, increase over the prior year; highest first quarter pre-tax title margin since 2004 |
• | Open title orders of 643,000 for the first quarter, a decrease of 8,000, or 1%, from the first quarter of 2012; open orders per day of 10,540 for the first quarter versus 10,500 open orders per day for the first quarter of 2012; closed orders of 487,000 increased by 19% over the first quarter of 2012 |
• | Purchase orders opened and closed per day increased by 7% and 14%, respectively, versus the first quarter of 2012 |
• | First quarter commercial title revenue of $88 million, a 6% increase over the first quarter of 2012, primarily driven by a 16% increase in the commercial fee per file offset by a 9% decline in closed orders |
• | Restaurant group total revenue of $351 million, adjusted EBITDA of $19 million, adjusted EBITDA margin of 5.3% and a pre-tax loss of $4 million, which includes $5 million in impairments related to the closing of three unprofitable J. Alexander's locations and one Max & Erma's location, for a ($0.01) impact on earnings per share |
• | Remy total revenue of $285 million, adjusted EBITDA of $33 million, adjusted EBITDA margin of 11.6% and pre-tax loss of $1 million, which includes a one-time $7 million executive separation expense for a ($0.02) impact on earnings per share |
Three Months Ended | Three Months Ended | |||
March 31, 2013 | March 31, 2012 | |||
Total revenue | $2,050 | $1,190 | ||
Net earnings attributable to common shareholders | $90 | $74 | ||
Net earnings per diluted share attributable to common shareholders | $0.39 | $0.33 | ||
Cash flow used in operations | $(36) | $(45) |
Three Months Ended | Three Months Ended | |||
March 31, 2013 | March 31, 2012 | |||
Total revenue | $1,385 | $1,175 | ||
Pre-tax earnings | $171 | $129 | ||
Realized gains (losses) | $— | $(4) | ||
Adjusted pre-tax earnings | $171 | $125 | ||
Adjusted pre-tax margin | 12.3% | 10.7% |
Month | Direct Orders Opened | Direct Orders Closed | |||||
January 2013 | 218,000 | 167,000 | |||||
February 2013 | 203,000 | 155,000 | |||||
March 2013 | 222,000 | 165,000 | |||||
First Quarter 2013 | 643,000 | 487,000 | |||||
Month | Direct Orders Opened | Direct Orders Closed | |||||
January 2012 | 205,000 | 121,000 | |||||
February 2012 | 230,000 | 135,000 | |||||
March 2012 | 216,000 | 154,000 | |||||
First Quarter 2012 | 651,000 | 410,000 | |||||
Open | Closed | Commercial | |||||||||||||
Commercial | Commercial | Revenue | Commercial | ||||||||||||
Orders | Orders | (In millions) | Fee Per File | ||||||||||||
First Quarter 2013 | 18,700 | 10,600 | $88 | $8,300 | |||||||||||
First Quarter 2012 | 19,800 | 11,700 | $83 | $7,100 |
• | The preceding table only includes commercial activity from FNF's commercial offices in the national commercial division and does not attempt to capture potential commercial activity in our local offices. |
Three Months Ended | ||
March 31, 2013 | ||
Operating revenue | $356 | |
Realized losses | (5) | |
Total revenue | 351 | |
Pre-tax loss | (4) | |
Depreciation & amortization | 13 | |
Interest expense | 2 | |
EBITDA | 11 | |
Realized losses | 5 | |
Transaction and integration costs | 3 | |
Adjusted EBITDA | 19 | |
Adjusted EBITDA margin | 5.3% |
Three Months Ended | ||
March 31, 2013 | ||
Operating revenue | $284 | |
Interest and investment income | 1 | |
Total revenue | 285 | |
Pre-tax loss | (1) | |
Depreciation & amortization | 19 | |
Interest expense | 7 | |
EBITDA | 25 | |
Executive severance | 7 | |
Stock compensation | 1 | |
Adjusted EBITDA | 33 | |
Adjusted EBITDA margin | 11.6% |
Three Months Ended | |||||||||
March 31, | |||||||||
2013 | 2012 | ||||||||
(Unaudited) | |||||||||
Direct title premiums | $ | 414 | $ | 354 | |||||
Agency title premiums | 524 | 414 | |||||||
Total title premiums | 938 | 768 | |||||||
Escrow, title-related and other fees | 443 | 382 | |||||||
Total title and escrow | 1,381 | 1,150 | |||||||
Restaurant revenue | 356 | — | |||||||
Remy revenue | 284 | — | |||||||
Interest and investment income | 33 | 36 | |||||||
Realized gains and losses | (4 | ) | 4 | ||||||
Total revenue | 2,050 | 1,190 | |||||||
Personnel costs | 521 | 408 | |||||||
Other operating expenses | 327 | 275 | |||||||
Cost of restaurant revenue | 305 | — | |||||||
Cost of Remy revenue (includes $18 million of D&A) | 240 | — | |||||||
Agent commissions | 397 | 316 | |||||||
Depreciation and amortization | 34 | 17 | |||||||
Title claim loss expense | 65 | 54 | |||||||
Interest expense | 23 | 15 | |||||||
Total expenses | 1,912 | 1,085 | |||||||
Earnings from continuing operations before taxes and equity investments | 138 | 105 | |||||||
Income tax expense | 46 | 37 | |||||||
Earnings from continuing operations before equity investments | 92 | 68 | |||||||
Earnings (loss) from equity investments | (3 | ) | 6 | ||||||
Earnings from continuing operations, net of tax | 89 | 74 | |||||||
Earnings from discontinued operations, net of tax | — | 3 | |||||||
Net earnings | 89 | 77 | |||||||
Non-controlling interests | (1 | ) | 3 | ||||||
Net earnings attributable to common shareholders | $ | 90 | $ | 74 | |||||
Earnings per share: | |||||||||
Net earnings from continuing operations attributable to common shareholders - basic | $ | 0.40 | $ | 0.34 | |||||
Net earnings from continuing operations attributable to common shareholders - diluted | $ | 0.39 | $ | 0.33 | |||||
Weighted average shares - basic | 225 | 219 | |||||||
Weighted average shares - diluted | 231 | 223 | |||||||
Direct operations orders opened (000's) | 643 | 651 | |||||||
Direct operations orders closed (000's) | 487 | 410 | |||||||
Fee per file | $ | 1,373 | $ | 1,398 | |||||
Actual title claims paid | $ | 91 | $ | 103 |
Three Months Ended | Restaurant | Corporate | ||||||||||||||||||
March 31, 2013 | Consolidated | FNT | Group | Remy | and Other | |||||||||||||||
Gross operating revenue | $ | 2,021 | $ | 1,352 | $ | 356 | $ | 284 | $ | 29 | ||||||||||
Interest and investment income | 33 | 33 | — | 1 | (1 | ) | ||||||||||||||
Realized gains and losses | (4 | ) | — | (5 | ) | — | 1 | |||||||||||||
Total revenue | 2,050 | 1,385 | 351 | 285 | 29 | |||||||||||||||
Personnel costs | 521 | 454 | 15 | 27 | 25 | |||||||||||||||
Other operating expenses | 327 | 281 | 20 | 11 | 15 | |||||||||||||||
Cost of revenue | 545 | — | 305 | 240 | — | |||||||||||||||
Agent commissions | 397 | 397 | — | — | — | |||||||||||||||
Depreciation and amortization | 34 | 17 | 13 | 1 | 3 | |||||||||||||||
Title claim loss expense | 65 | 65 | — | — | — | |||||||||||||||
Interest expense | 23 | — | 2 | 7 | 14 | |||||||||||||||
Total expenses | 1,912 | 1,214 | 355 | 286 | 57 | |||||||||||||||
Pretax earnings (loss) from continuing operations | 138 | 171 | (4 | ) | (1 | ) | (28 | ) | ||||||||||||
Pretax margin | 6.7 | % | 12.3 | % | — | — | — | |||||||||||||
Pretax margin, excluding realized gains | 8.6 | % | 12.3 | % | — | — | — | |||||||||||||
Open orders | 643 | 643 | — | — | — | |||||||||||||||
Closed orders | 487 | 487 | — | — | — |
Three Months Ended | Restaurant | Corporate | ||||||||||||||||
March 31, 2012 | Consolidated | FNT | Group | Remy | and Other | |||||||||||||
Gross operating revenue | $ | 1,150 | $ | 1,136 | — | — | $ | 14 | ||||||||||
Interest and investment income | 36 | 35 | — | — | 1 | |||||||||||||
Realized gains and losses | 4 | 4 | — | — | — | |||||||||||||
Total revenue | 1,190 | 1,175 | — | — | 15 | |||||||||||||
Personnel costs | 408 | 401 | — | — | 7 | |||||||||||||
Other operating expenses | 275 | 259 | — | — | 16 | |||||||||||||
Agent commissions | 316 | 316 | — | — | — | |||||||||||||
Depreciation and amortization | 17 | 16 | — | — | 1 | |||||||||||||
Title claim loss expense | 54 | 54 | — | — | — | |||||||||||||
Interest expense | 15 | — | — | — | 15 | |||||||||||||
Total expenses | 1,085 | 1,046 | — | — | 39 | |||||||||||||
Pretax earnings (loss) from continuing operations | 105 | 129 | — | — | (24 | ) | ||||||||||||
Pretax margin | 8.8 | % | 11.0 | % | — | — | — | |||||||||||
Pretax margin, excluding realized gains | 8.5 | % | 10.7 | % | — | — | — | |||||||||||
Open orders | 651 | 651 | — | — | — | |||||||||||||
Closed orders | 410 | 410 | — | — | — |
March 31, 2013 | December 31, 2012 | |||||||||
(Unaudited) | ||||||||||
Cash and investment portfolio | $ | 4,989 | $ | 5,185 | ||||||
Goodwill | 1,883 | 1,909 | ||||||||
Title plant | 374 | 374 | ||||||||
Total assets | 9,682 | 9,903 | ||||||||
Notes payable | 1,354 | 1,344 | ||||||||
Reserve for claim losses | 1,723 | 1,748 | ||||||||
Secured trust deposits | 468 | 528 | ||||||||
Total equity | 4,773 | 4,749 | ||||||||
Book value per share | $ | 20.99 | $ | 20.78 |
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