-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Oeqbc3d3sIuRdp9V5n5Ohm8FPQ5V3WEBpH/9UDO2uxWj3FihNNYMAjDF81LHsOxI vytjn0tKTiGUYqFWfsS97Q== 0000892569-98-001334.txt : 19980513 0000892569-98-001334.hdr.sgml : 19980513 ACCESSION NUMBER: 0000892569-98-001334 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980226 ITEM INFORMATION: FILED AS OF DATE: 19980512 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY NATIONAL FINANCIAL INC /DE/ CENTRAL INDEX KEY: 0000809398 STANDARD INDUSTRIAL CLASSIFICATION: TITLE INSURANCE [6361] IRS NUMBER: 860498599 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-09396 FILM NUMBER: 98615980 BUSINESS ADDRESS: STREET 1: 17911 VON KARMAN AVE STREET 2: STE 300 CITY: IRVINE STATE: CA ZIP: 92614 BUSINESS PHONE: 7146225000 MAIL ADDRESS: STREET 1: MLISS JONES KANE STREET 2: 17911 VON KARMAN AVE STE 300 CITY: IRVINE STATE: CA ZIP: 92614 8-K/A 1 AMENDMENT NO.1 TO FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 1 TO FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: February 26, 1998 FIDELITY NATIONAL FINANCIAL, INC. --------------------------------- (Exact name of Registrant as specified in its charter) Delaware 1-9396 86-0498599 - ---------------------------- ---------------- ---------------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification Number) 17911 Von Karman Avenue, Irvine, California 92614 ------------------------------------------------- (Address of principal executive offices) (714) 622-5000 -------------- (Registrant's telephone number, including area code) 2 SIGNATURES 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 hereunto duly authorized. FIDELITY NATIONAL FINANCIAL, INC. Dated: May 12, 1998 /s/ M'Liss Jones Kane --------------------------------- M'Liss Jones Kane Senior Vice President, General Counsel and Corporate Secretary 3 Item 7. Financial Statements and Exhibits (a) Financial Statements of Businesses Acquired The required audited consolidated balance sheet of Granite Financial, Inc. and its subsidiaries ("Granite") as of June 30, 1997 and the related consolidated statements of operations, stockholders' equity and cash flows for each of the two fiscal years ended June 30, 1996 and June 30, 1997 are included in pages F-3 to F-7 of Granite's Annual Report on Form 10-KSB for the fiscal year ended June 30, 1997, as filed with the Securities and Exchange Commission (the "Commission") on September 29, 1997, which is incorporated by reference as Exhibit 99(B) to this Report. The required consolidated balance sheet of Granite as of December 31, 1997 and the related consolidated statements of operations, stockholders' equity and cash flows for the six-month periods ended December 31, 1996 and December 31, 1997 are included in pages 3 to 7 of Granite's Current Report on Form 10-QSB for the quarterly period ended December 31, 1997, as filed with the Commission on February 13, 1998, which is incorporated by reference as Exhibit 99(C) to this Report. (b) Pro Forma Financial Information The following unaudited pro forma combined condensed balance sheet of Fidelity as of December 31, 1997 combines the historical consolidated balance sheet of Fidelity as of December 31, 1997 with the historical consolidated balance sheet of Granite as of December 31, 1997 as if the merger had been effective on December 31, 1997. The following unaudited pro forma combined condensed statement of income of Fidelity for the year ended December 31, 1997 presents the results of operations of Fidelity for the year ended December 31, 1997 combined with the results of operations of Granite for the 12 months ended December 31, 1997, as if the merger had been effective at January 1, 1997. The required unaudited pro forma combined condensed statements of income of Fidelity for each of the years ended December 31, 1996 and December 31, 1995 are included in the unaudited pro forma condensed financial statements of Fidelity set forth on pages 41 to 47 of the Joint Proxy Statement/Prospectus of Fidelity and Granite, dated January 16, 1998, as filed by Fidelity with the Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on January 20, 1998 in connection with Fidelity's Registration Statement on Form S-4, as amended (Registration No. 333-44153), which is incorporated by reference as Exhibit 99(D) to this Report. The unaudited pro forma combined condensed financial information is provided for comparative purposes only and is not indicative of the results of operations or the financial position of the combined companies that would have occurred had the merger occurred at the beginning of the periods presented or on the date indicated, nor is it indicative of future operating results or financial position. The unaudited pro forma adjustments are based on currently available information and upon certain assumptions that management of Fidelity and Granite believe are reasonable under the circumstances. The unaudited pro forma combined condensed financial information and the related notes thereto should be read in conjunction with the historical consolidated financial statements and the related notes of Fidelity and Granite. In addition, the unaudited pro forma combined condensed financial information does not reflect certain cost savings that management believes may be realized following the merger. The unaudited pro forma combined condensed financial information reflects the application of the pooling-of-interests method of accounting for the merger. Under this method of accounting, the recorded assets, liabilities, stockholders' equity, income and expenses of Fidelity and Granite are combined and reflected at their historical amounts. 4 PRO FORMA COMBINED BALANCE SHEET AS OF DECEMBER 31, 1997 (Unaudited, Dollars in Thousands)
DECEMBER 31, 1997 --------------------------------------------------------------- GRANITE FIDELITY NATIONAL PRO FORMA FINANCIAL, INC. FINANCIAL, INC. ADJUSTMENTS COMBINED --------------- ----------------- ----------- -------- ASSETS Investments Fixed maturities available for sale, at fair value... $ 217,001 $ 217,001 Equity securities, at fair value..................... 70,418 70,418 Other long-term investments, at cost, which approximates fair value........................... 600 15,864 16,464 Short-term investments, at cost, which approximates fair value........................................ 17,793 17,793 Investments in real estate and partnerships, net..... 5,201 5,201 --------- --------- --------- -------- Total investments............................... 600 326,277 326,877 Cash and cash equivalents.................................... 5,850(1) 54,005 (3,784)(2) 56,071 Leases and lease residual interests......................... 53,782 53,782 Trade receivables............................................ 52,650 52,650 Notes receivable............................................. 8,898 8,898 Prepaid and other assets..................................... 16,576 70,213 86,789 Title plants................................................. 51,756 51,756 Property and equipment, net.................................. 2,225 36,760 38,985 --------- --------- -------- -------- $ 79,033 $ 600,559 $ (3,784)(2) $675,808 ========= ========= ========= ======== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accounts payable and accrued liabilities................... $ 9,112 $ 63,312 $ 72,424 Notes payable.............................................. 32,772 123,023 155,795 Reserve for claim losses................................... 190,747 190,747 Deferred income taxes...................................... 13,422 13,422 Income taxes payable....................................... 1,638 10,122 11,760 --------- --------- --------- -------- 43,522 400,626 0 444,148 --------- --------- --------- -------- Minority interest.......................................... 3,614 3,614 Stockholders' equity Preferred stock............................................ Common stock............................................... 6 2 (5)(3) 3 Additional paid-in capital................................. 31,742 101,735 5 (3) 133,482 Retained earnings.......................................... 3,763 126,535 (3,784)(2) 126,514 --------- --------- --------- -------- 35,511 228,272 (3,784) 259,999 --------- --------- --------- -------- Net unrealized gains on investments........................ 22,422 22,422 Less treasury stock........................................ 54,375 54,375 --------- --------- --------- -------- 35,511 196,319 (3,784) 228,046 --------- --------- --------- -------- $ 79,033 $ 600,559 $ (3,784) $675,808 ========= ========= ========= ========
(1) Cash, cash equivalents and restricted cash includes restricted cash of $3,358,000. (2) Cash, total assets and stockholders' equity have been adjusted to reflect the cumulative impact of dividends that would have been paid on an additional 4,505,000 shares issued and outstanding. (3) Adjustment represents the conversion of the Granite Common Stock, $.001 par value, to Fidelity Common Stock, $.0001 par value. 5 PRO FORMA COMBINED STATEMENT OF INCOME (Unaudited, In Thousands Except Per Share Amounts)
FOR THE YEAR ENDED DECEMBER 31, 1997 ----------------------------------------- GRANITE FIDELITY GRANITE FIDELITY COMBINED ----------- ------------ ---------- REVENUE: Title insurance premiums.................................... $ 533,220 $ 533,220 Escrow fees................................................ 81,241 81,241 Other fees and revenue...................................... 16,469 98,695 115,164 Interest and investment income, including realized gains (losses)................................... 33,556 33,556 --------- --------- --------- 16,469 746,712 763,181 --------- --------- --------- EXPENSES: Personnel costs............................................. 3,096 240,223 243,319 Other operating expenses.................................... 5,698 161,200 166,898 Agent commissions........................................... 223,797 223,797 Provision for claim losses.................................. 38,661 38,661 Interest expense............................................ 2,253 9,401 11,654 --------- --------- --------- 11,047 673,282 684,329 --------- --------- --------- Earnings before extraordinary item.......................... 5,422 73,430 78,852 Income tax expense.......................................... 2,096 31,959 34,055 --------- --------- --------- Earnings before income taxes and extraordinary item......... 3,326 41,471 44,797 Extraordinary item, loss on early retirement of debt, net of applicable income taxes.............................. (1,700) (1,700) --------- --------- --------- Net earnings................................................ $ 3,326 $ 39,771 $ 43,097 ========= ========= ========= Basic net earnings.......................................... $ 3,326 $ 39,771 $ 43,097 ========= ========= ========= Basic earnings per share before extraordinary item.......... $ 0.99 $ 2.61 $ 2.31 Extraordinary item, loss on early retirement of debt, net of applicable income taxes.............................. (0.11) (0.09) --------- --------- --------- Basic earnings per share.................................... $ 0.99 $ 2.50 $ 2.22 ========= ========= ========= Weighted average shares outstanding, basic basis............ 3,361 15,911 19,376 Diluted net earnings........................................ $ 3,326 $ 42,913 $ 46,239 ========= ========= ========= Diluted earnings per share before extraordinary item........ $ 0.96 $ 2.08 $ 1.92 Extraordinary item, gain on early retirement of debt, net of applicable income taxes.............................. (0.08) (0.07) --------- --------- --------- Diluted earnings per share.................................. $ 0.96 $ 2.00 $ 1.85 ========= ========= ========= Weighted average shares outstanding, diluted basis.......... 3,465 21,483 24,948
6 (c) Exhibits
23(A) Consent of Ehrhardt Keefe Steiner & Hottman PC 99(A) *Press Release - Fidelity National Financial, Inc. and Granite Financial, Inc. Announce Completion of Merger 99(B) Annual Report on Form 10-KSB of Granite Financial, Inc. for the fiscal year ended June 30, 1997, as filed with the Commission on September 29, 1997 and incorporated herein by reference. 99(C) Current Report on Form 10-QSB of Granite Financial, Inc. for the quarterly period ended December 31, 1997, as filed with the Commission on February 13, 1998 and incorporated herein by reference. 99(D) Joint Proxy Statement/Prospectus of Fidelity and Granite, dated January 16, 1998, as filed by Fidelity with the Commission pursuant to Rule 424(b) on January 20, 1998 (Registration No. 333-44153) and incorporated herein by reference.
- ------------------- * Previously filed EX-23.A 2 CONSENT OF EHRHARDT KEEFE STEINER & HOTTMAN PC 1 EXHIBIT 23(A) CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS We hereby consent to the incorporation by reference of our report on Granite Financial, Inc. dated August 20, 1997, into Fidelity National Financial, Inc.'s Amendment No. 1 to Form 8K/A. /s/ EHRHARDT KEEFE STEINER & HOTTMAN PC --------------------------------------- Ehrhardt Keefe Steiner & Hottman PC May 11, 1998 Denver, Colorado -----END PRIVACY-ENHANCED MESSAGE-----