EX-99.1 2 a20131qex-991.htm EX-99.1 2013 1Q EX-99.1


Exhibit 99.1
        
Fidelity National Financial, Inc. Reports First Quarter 2013 EPS of $0.39 and Pre-Tax Title Margin of 12.3%; Strongest First Quarter Title Results Since 2004

Jacksonville, Fla. - (May 1, 2013) - Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, mortgage services and diversified services, today reported operating results for the three-month period ended March 31, 2013.

•
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


Consolidated ($ in millions except per share amounts)

 
 
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)

The following are summary financial and operational results for the operating segments of FNF for the three-month periods ended March 31, 2013 and 2012:

Fidelity National Title Group (“FNT”) ($ in millions)

 
 
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.

Restaurant Group ($ in millions)*

 
 
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%

* Consolidation of Restaurant Group results began May 11, 2012
















Remy ($ in millions)*

 
 
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%

* Consolidation of Remy results began August 15, 2012

“The first quarter was a great start to the year, with a continuation of the momentum we built in 2012,” said Chief Executive Officer George P. Scanlon. “We achieved our strongest first quarter in the title business since 2004, producing pre-tax earnings of $171 million and a pre-tax title margin of 12.3%. Title operating revenue grew by 19% over the first quarter of 2012, with pre-tax earnings increasing by 33% and the pre-tax margin improving by nearly 170 basis points. The commercial title business continued to perform solidly, with $88 million in revenue, a 6% increase over the first quarter of 2012. While we continue to operate in a refinance driven marketplace, we are continuing to see a growing percentage of our open orders coming from purchase transactions. During the first quarter, 38% of total title orders opened were purchase transactions, versus 36% in the first quarter of 2012, with the purchase mix increasing each month during the first quarter, peaking at nearly 41% of open orders in March. Overall, purchase orders opened and closed per day increased by 7% and 14%, respectively, in the first quarter versus the prior year. With an improving purchase market, continued low mortgage rates and a stabilizing economy, we are confident in our ability to continue to produce industry-leading earnings in our title business.”

“Remy continues to make significant investments in a global growth strategy that are expected to benefit future performance, including improved coverage in the light duty aftermarket business and the launch of a new plant and engineering center in Wuhan, China that recently opened,” said Chairman William P. Foley, II. “Additionally, the company secured new business with key Asian customers, launched new products across the globe and continues its operational restructuring efforts. We believe Remy is positioning itself to take advantage of both an improving global economy and a growing automotive marketplace.

“Our restaurant operations remain focused on continually improving financial performance, most specifically through the continued integration, redesign and update of the O'Charley's concept. The restaurant group generated a 5.3% adjusted EBITDA margin, a 20 basis point sequential improvement from the fourth quarter of 2012, despite a seasonally slow and challenging first quarter. We remain confident that we will continue to show improved financial performance in our restaurant operations as we move through 2013.”

Conference Call
FNF will host a call with investors and analysts to discuss first quarter 2013 results on Thursday, May 2, 2013, beginning at 11:00 a.m. Eastern Time. The dial-in number is 800-230-1074. 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 1:00 p.m. Eastern time on May 2, 2013, through May 9, 2013, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 287981.







About FNF
Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, mortgage services and diversified services. FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title and Alamo Title - that collectively issue more title insurance policies than any other title company in the United States. FNF owns a 55% stake in American Blue Ribbon Holdings, LLC, a family and casual dining restaurant owner and operator of the O'Charley's, Ninety Nine Restaurant, Max & Erma's, Village Inn, and Bakers Square concepts. FNF also owns an 87% stake in J. Alexander's, LLC, an upscale dining restaurant owner and operator of the J. Alexander's and Stoney River Legendary Steaks concepts. In addition, FNF also owns a 51% stake in Remy International, Inc., a leading designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. FNF also owns a minority interest in Ceridian Corporation, a leading provider of global human capital management and payment solutions. More information about FNF can be found at www.fnf.com.

Forward Looking Statements
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; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.


SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com































FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY OF EARNINGS
(In millions, except per share amounts and fee per file)
 
 
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













 FIDELITY NATIONAL FINANCIAL, INC.
FIRST QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
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

 
—

 
—

 
—






FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In millions, except per share amounts)
 
 
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


###