Delaware (State or Other Jurisdiction of Incorporation or Organization) | 16-1725106 (IRS Employer Identification Number) |
þ | 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 |
Fidelity National Financial, Inc. | |||||
Date: | May 2, 2018 | By: | /s/ Anthony J. Park | ||
Name: | Anthony J. Park | ||||
Title: | Chief Financial Officer |
Exhibit | Description | ||||
99.1 |
• | Total revenue of approximately $1.7 billion in the first quarter versus $1.6 billion in the first quarter of 2017 |
• | First quarter net earnings of $97 million and adjusted net earnings of $118 million versus net earnings from continuing operations of $61 million and adjusted net earnings from continuing operations of $99 million for the first quarter of 2017 |
• | First quarter diluted EPS of $0.35 and adjusted diluted EPS of $0.42 versus diluted EPS from continuing operations of $0.22 and adjusted diluted EPS from continuing operations of $0.35 in the first quarter of 2017 |
• | Total revenue of approximately $1.6 billion versus approximately $1.6 billion in total revenue in the first quarter of 2017 |
• | Pre-tax earnings of $163 million and adjusted pre-tax earnings of $186 million versus pre-tax earnings of $151 million and adjusted pre-tax earnings of $175 million in the first quarter of 2017 |
• | Pre-tax title margin of 10.3% and adjusted pre-tax title margin of 11.7% versus pre-tax title margin of 9.6% and adjusted pre-tax title margin of 11.1% in the first quarter of 2017 |
• | First quarter purchase orders opened and closed increased by 4% and decreased by 1%, respectively, versus the first quarter of 2017 |
• | Total commercial revenue of $230 million, a 3% increase over total commercial revenue in the first quarter of 2017, driven by a 5% increase in closed orders and a 3% decline in total commercial fee per file; first quarter total commercial open orders increased 7% compared to the prior year |
• | Overall first quarter average fee per file of $2,344, a 9% increase versus the first quarter of 2017 |
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
January 2018 | 158,000 | 62% | 101,000 | 58% | ||||
February 2018 | 148,000 | 66% | 96,000 | 62% | ||||
March 2018 | 172,000 | 69% | 116,000 | 66% | ||||
First Quarter 2018 | 478,000 | 66% | 313,000 | 62% | ||||
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
January 2017 | 144,000 | 62% | 112,000 | 53% | ||||
February 2017 | 145,000 | 64% | 99,000 | 57% | ||||
March 2017 | 183,000 | 65% | 123,000 | 64% | ||||
First Quarter 2017 | 472,000 | 64% | 334,000 | 58% | ||||
Open | Closed | Commercial | |||||||||||||
Commercial | Commercial | Revenue | Commercial | ||||||||||||
Orders | Orders | (In millions) | Fee Per File | ||||||||||||
First Quarter 2018 - Total Commercial | 52,800 | 31,500 | $230 | $7,300 | |||||||||||
First Quarter 2017 - Total Commercial | 49,400 | 30,000 | $224 | $7,500 |
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
March 31, 2018 | ||||||||||||
Direct title premiums | $ | 472 | $ | 472 | $ | — | ||||||
Agency title premiums | 564 | 564 | — | |||||||||
Escrow, title related and other fees | 618 | 516 | 102 | |||||||||
Total title and escrow | 1,654 | 1,552 | 102 | |||||||||
Interest and investment income | 38 | 37 | 1 | |||||||||
Realized gains and losses, net | 1 | 1 | — | |||||||||
Total revenue | 1,693 | 1,590 | 103 | |||||||||
Personnel costs | 607 | 579 | 28 | |||||||||
Agent commissions | 431 | 431 | — | |||||||||
Other operating expenses | 423 | 330 | 93 | |||||||||
Depreciation and amortization | 47 | 40 | 7 | |||||||||
Claim loss expense | 47 | 47 | — | |||||||||
Interest expense | 11 | — | 11 | |||||||||
Total expenses | 1,566 | 1,427 | 139 | |||||||||
Pre-tax earnings (loss) | $ | 127 | $ | 163 | $ | (36 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | (1 | ) | (1 | ) | — | |||||||
Purchase price amortization | 29 | 23 | 6 | |||||||||
Other adjustments | 3 | 1 | 2 | |||||||||
Total non-GAAP adjustments before taxes | $ | 31 | $ | 23 | $ | 8 | ||||||
Adjusted pre-tax earnings (loss) | $ | 158 | $ | 186 | $ | (28 | ) | |||||
Adjusted pre-tax margin | 9.3 | % | 11.7 | % | — | |||||||
Pre-tax earnings (loss) | $ | 127 | $ | 163 | $ | (36 | ) | |||||
Income tax expense (benefit) | 31 | 40 | (9 | ) | ||||||||
Earnings from equity investments | 2 | 1 | 1 | |||||||||
Non-controlling interests | 1 | 1 | — | |||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 97 | $ | 123 | $ | (26 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 0.36 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.35 | ||||||||||
FNF, Inc. weighted average shares - basic | 273 | |||||||||||
FNF, Inc. weighted average shares - diluted | 280 |
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
March 31, 2018 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 97 | $ | 123 | $ | (26 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 31 | $ | 23 | $ | 8 | ||||||
Income taxes on non-GAAP adjustments | (7 | ) | (5 | ) | (2 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (3 | ) | (3 | ) | — | |||||||
Total non-GAAP adjustments | $ | 21 | $ | 15 | $ | 6 | ||||||
Adjusted net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 118 | $ | 138 | $ | (20 | ) | |||||
Adjusted EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.42 | ||||||||||
Direct orders opened (000's) | 478 | 478 | ||||||||||
Direct orders closed (000's) | 313 | 313 | ||||||||||
Fee per file | $ | 2,344 | $ | 2,344 | ||||||||
Actual title claims paid | $ | 51 | $ | 51 | ||||||||
Cash flows provided by operations | $ | 18 |
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
March 31, 2017 | ||||||||||||
Direct title premiums | $ | 465 | $ | 465 | $ | — | ||||||
Agency title premiums | 583 | 583 | — | |||||||||
Escrow, title related and other fees | 571 | 496 | 75 | |||||||||
Total title and escrow | 1,619 | 1,544 | 75 | |||||||||
Interest and investment income | 28 | 28 | — | |||||||||
Realized gains and losses, net | (4 | ) | (2 | ) | (2 | ) | ||||||
Total revenue | 1,643 | 1,570 | 73 | |||||||||
Personnel costs | 569 | 548 | 21 | |||||||||
Agent commissions | 446 | 446 | — | |||||||||
Other operating expenses | 389 | 335 | 54 | |||||||||
Depreciation and amortization | 43 | 38 | 5 | |||||||||
Claim loss expense | 52 | 52 | — | |||||||||
Interest expense | 16 | — | 16 | |||||||||
Total expenses | 1,515 | 1,419 | 96 | |||||||||
Pre-tax earnings (loss) from continuing operations | $ | 128 | $ | 151 | $ | (23 | ) | |||||
Non-GAAP adjustments before taxes | ||||||||||||
Realized (gains) and losses, net | 4 | 2 | 2 | |||||||||
Purchase price amortization | 26 | 22 | 4 | |||||||||
Total non-GAAP adjustments before taxes | $ | 30 | $ | 24 | $ | 6 | ||||||
Adjusted pre-tax earnings (loss) from continuing operations | $ | 158 | $ | 175 | $ | (17 | ) | |||||
Adjusted pre-tax margin from continuing operations | 9.6 | % | 11.1 | % | — | |||||||
Pre-tax earnings (loss) from continuing operations | $ | 128 | $ | 151 | $ | (23 | ) | |||||
Income tax expense (benefit) | 69 | 78 | (9 | ) | ||||||||
Earnings (loss) from equity investments | 1 | 2 | (1 | ) | ||||||||
Earnings from discontinued operations, net of tax | 21 | — | 21 | |||||||||
Non-controlling interests | 9 | (1 | ) | 10 | ||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 72 | $ | 76 | $ | (4 | ) | |||||
Net earnings attributable to FNFV Group common shareholders | $ | 1 | $ | — | $ | 1 | ||||||
Net earnings (loss) attributable to FNF Group common shareholders | $ | 71 | $ | 76 | $ | (5 | ) | |||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 61 | $ | 76 | $ | (15 | ) | |||||
EPS attributable to FNF, Inc. common shareholders - basic | $ | 0.26 | ||||||||||
EPS attributable to FNF, Inc. common shareholders - diluted | $ | 0.25 | ||||||||||
EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 0.22 | ||||||||||
FNF, Inc. weighted average shares - basic | 271 | |||||||||||
FNF, Inc. weighted average shares - diluted | 279 |
Consolidated | Title | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
March 31, 2017 | ||||||||||||
Net earnings (loss) attributable to FNF, Inc. common shareholders | $ | 72 | $ | 76 | $ | (4 | ) | |||||
Earnings from discontinued operations, net of tax | 21 | — | 21 | |||||||||
Non-controlling interests of discontinued operations | 10 | — | 10 | |||||||||
Net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 61 | $ | 76 | $ | (15 | ) | |||||
Total non-GAAP, pre-tax adjustments | $ | 30 | $ | 24 | $ | 6 | ||||||
Income taxes on non-GAAP adjustments | (10 | ) | (8 | ) | (2 | ) | ||||||
Noncontrolling interest on non-GAAP adjustments | (3 | ) | (3 | ) | — | |||||||
Nondeductible income taxes on consent order settlement | 21 | 21 | — | |||||||||
Total non-GAAP adjustments | $ | 38 | $ | 34 | $ | 4 | ||||||
Adjusted net earnings (loss) from continuing operations attributable to FNF, Inc. common shareholders | $ | 99 | $ | 110 | $ | (11 | ) | |||||
Adjusted EPS from continuing operations attributable to FNF, Inc. common shareholders - diluted | $ | 0.35 | ||||||||||
Direct orders opened (000's) | 472 | 472 | ||||||||||
Direct orders closed (000's) | 334 | 334 | ||||||||||
Fee per file | $ | 2,148 | $ | 2,148 | ||||||||
Actual title claims paid | $ | 51 | $ | 51 | ||||||||
Cash flows provided by operations | $ | 4 | ||||||||||
Cash flows used in operations attributable to FNF Group | $ | (11 | ) | |||||||||
Cash flows provided by operations attributable to FNFV Group | $ | 15 |
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | |||||||||||||||||||||||||
Quarterly Open Orders ('000's except % data) | ||||||||||||||||||||||||||||||||
Total open orders* | 478 | 445 | 501 | 524 | 472 | 474 | 616 | 577 | ||||||||||||||||||||||||
Total open orders per day* | 7.7 | 7.2 | 8.0 | 8.2 | 7.6 | 7.6 | 9.6 | 9.0 | ||||||||||||||||||||||||
Purchase % of open orders | 66 | % | 60 | % | 62 | % | 66 | % | 64 | % | 53 | % | 50 | % | 57 | % | ||||||||||||||||
Refinance % of open orders | 34 | % | 40 | % | 38 | % | 34 | % | 36 | % | 47 | % | 50 | % | 43 | % | ||||||||||||||||
Total closed orders* | 313 | 357 | 367 | 370 | 334 | 419 | 433 | 401 | ||||||||||||||||||||||||
Total closed orders per day* | 5.0 | 5.8 | 5.8 | 5.8 | 5.4 | 6.8 | 6.8 | 6.3 | ||||||||||||||||||||||||
Purchase % of closed orders | 62 | % | 61 | % | 65 | % | 67 | % | 58 | % | 51 | % | 54 | % | 58 | % | ||||||||||||||||
Refinance % of closed orders | 38 | % | 39 | % | 35 | % | 33 | % | 42 | % | 49 | % | 46 | % | 42 | % | ||||||||||||||||
Commercial (millions, except orders in '000's) | ||||||||||||||||||||||||||||||||
Total commercial revenue | $ | 230 | $ | 288 | $ | 250 | $ | 261 | $ | 224 | $ | 285 | $ | 233 | $ | 244 | ||||||||||||||||
Total commercial open orders | 52.8 | 46.3 | 48.3 | 50.8 | 49.4 | 45.9 | 50.4 | 49.9 | ||||||||||||||||||||||||
Total commercial closed orders | 31.5 | 33.2 | 33.4 | 33.6 | 30.0 | 34.7 | 31.9 | 33.6 | ||||||||||||||||||||||||
National commercial revenue | $ | 122 | $ | 165 | $ | 138 | $ | 148 | $ | 127 | $ | 167 | $ | 130 | $ | 144 | ||||||||||||||||
National commercial open orders | 21.1 | 19.0 | 19.9 | 22.0 | 21.1 | 17.9 | 20.4 | 20.3 | ||||||||||||||||||||||||
National commercial closed orders | 11.2 | 12.1 | 13.1 | 13.3 | 11.2 | 12.8 | 11.7 | 11.6 | ||||||||||||||||||||||||
Total Fee Per File | ||||||||||||||||||||||||||||||||
Fee per file | $ | 2,344 | $ | 2,425 | $ | 2,368 | $ | 2,428 | $ | 2,148 | $ | 2,091 | $ | 2,015 | $ | 2,116 | ||||||||||||||||
Residential and local commercial fee per file | $ | 2,027 | $ | 2,032 | $ | 2,066 | $ | 2,104 | $ | 1,829 | $ | 1,746 | $ | 1,762 | $ | 1,809 | ||||||||||||||||
Residential fee per file | $ | 1,789 | $ | 1,784 | $ | 1,856 | $ | 1,895 | $ | 1,623 | $ | 1,538 | $ | 1,594 | $ | 1,645 | ||||||||||||||||
Total commercial fee per file | $ | 7,300 | $ | 8,700 | $ | 7,500 | $ | 7,800 | $ | 7,500 | $ | 8,200 | $ | 7,300 | $ | 7,300 | ||||||||||||||||
National commercial fee per file | $ | 10,900 | $ | 13,600 | $ | 10,500 | $ | 11,100 | $ | 11,300 | $ | 13,000 | $ | 11,100 | $ | 12,400 | ||||||||||||||||
Total Staffing | ||||||||||||||||||||||||||||||||
Total field operations employees | 10,900 | 11,200 | 11,700 | 11,300 | 11,000 | 11,100 | 11,400 | 10,900 | ||||||||||||||||||||||||
FNF, Inc. March 31, 2018 | FNF, Inc. December 31, 2017 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
Cash and investment portfolio | $ | 4,371 | $ | 4,481 | ||||||
Goodwill | 2,747 | 2,746 | ||||||||
Title plant | 398 | 398 | ||||||||
Total assets | 9,018 | 9,151 | ||||||||
Notes payable | 748 | 759 | ||||||||
Reserve for title claim losses | 1,486 | 1,490 | ||||||||
Secured trust deposits | 825 | 830 | ||||||||
Redeemable non-controlling interests | 344 | 344 | ||||||||
Non-redeemable non-controlling interests | 21 | 20 | ||||||||
Total equity and redeemable non-controlling interests | 4,823 | 4,811 | ||||||||
Total equity attributable to common shareholders | 4,458 | 4,447 |
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