News Release

FNFV Reports First Quarter 2016 Results With $951 Million Adjusted Book Value of Portfolio Company Investments, or $13.78 Per Share; Repurchased Additional 3.2 Million Shares of Common Stock in First Quarter

April 27, 2016

JACKSONVILLE, Fla., April 27, 2016 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results for FNFV Group (NYSE: FNFV), a tracking stock established to highlight the inherent value of the portfolio companies of Fidelity National Financial, Inc., for the three-month period ended March 31, 2016. 

  • Total revenue of $329 million in the first quarter versus $478 million in the first quarter of 2015
  • First quarter adjusted diluted EPS of $0.08 versus adjusted diluted EPS of $0.03 in the first quarter of 2015
  • Adjusted EBITDA of $28 million for the first quarter versus adjusted EBITDA of $40 million for the first quarter of 2015
  • First quarter FNFV free cash flow of $7 million versus $3 million used in the first quarter of 2015
  • $112 million in holding company cash on March 31, 2016
  • Repurchased approximately 3.2 million shares of common stock for nearly $33 million in the first quarter
  • Since the formation of FNFV in July 2014, more than 23.7 million shares of FNFV common stock have been repurchased for a total of approximately $324 million; approximately 26% of the shares of  FNFV common stock distributed in July 2014 have been repurchased

Restaurant Group

  • $290 million in total revenue, adjusted EBITDA of $20 million and adjusted EBITDA margin of 6.8% for the first quarter versus approximately $364 million in total revenue, adjusted EBITDA of $25 million and an adjusted EBITDA margin of 6.9% in the first quarter of 2015; first quarter of 2015 included results of J. Alexander's and Max & Erma's and first quarter 2016 only included a partial quarter from Max & Erma's
  • Same store sales decreased approximately 0.4% in the first quarter, as Ninety Nine and Bakers Square same store sales growth of 3.3% and 3.5%, respectively, was offset by a 2.5% decline at O'Charley's and a 1.7% decline at Village Inn

Ceridian HCM

  • First quarter total revenue of approximately $197 million, a 0.3% increase over the first quarter of 2015 and EBITDA of more than $23 million, a $3 million decline from the first  quarter of 2015, for an EBITDA margin of approximately 12%

Digital Insurance

  • First quarter total revenue of $37 million, a 31% increase over the first quarter of 2015; adjusted EBITDA of more than $9 million, a 38% increase over the first quarter of 2015; first quarter EBITDA margin of nearly 25%

Monetization and Investment Initiatives

  • Announced a $47.4 million additional capital investment in Ceridian, as FNFV was one participant in the transaction that raised a total of $150 million for Ceridian to fund the continued growth of the Dayforce customer base through additional implementation resources, continued cloud-based development and further sales and marketing efforts
  • In January, made an aggregate $22 million investment in the debt of Colt Defense, the iconic American gun producer
  • During the first quarter, purchased an additional 827,000 shares of Del Frisco's Restaurant Group common stock for a total investment of more than $12 million; total cumulative investment of approximately 3 million shares (13% of outstanding shares) for nearly $44 million
  • Repurchased approximately 3.2 million shares of FNFV common stock for nearly $33 million during the first  quarter

"We made one new investment and two incremental investments this quarter, and continued to aggressively repurchase FNFV common stock," said Chairman William P. Foley, II.  "In January, we made an aggregate $22 million investment in the debt of Colt Defense after working on and leading the debt restructuring of that company in 2015.  During January and February, we acquired an additional 827,000 shares of Del Frisco's common stock, bringing our investment to 3 million shares for a total cost of $44 million, or $14.53 per Del Frisco's common share.  In March, we made a $47.4 millionadditional capital investment in Ceridian to fund the continued growth of the Dayforce product line.  Dayforce is winning in the marketplace and this capital infusion will allow Ceridian to continue to grow the cloud-based revenue of the company even more aggressively.

"We also continued our share repurchase efforts in the first quarter, buying back an additional 3.2 million shares of FNFV common stock for approximately $33 million.  We will continue to focus on the growth and financial performance of our investments and seek to maximize the value of current and future investments for the benefit of our shareholders."

Conference Call

We will host a call with investors and analysts to discuss first quarter 2016 results of FNFV on Thursday, April 28, 2016, beginning at 12:30 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 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 2:30 p.m. Eastern time on April 28, 2016, through May 5, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 391053.

About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV).  FNF is a leading provider of title insurance, technology 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.  FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC.  FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc., Fleetcor Technologies, Inc., Digital Insurance, Inc. and Del Frisco's Restaurant Group, Inc.  More information about FNF and FNFV can be found at www.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, the Company 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 earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted net earnings, adjusted EPS and free cash flow.

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.

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: 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.

This press release should be read in conjunction with the press release filed for the results of FNF Group on this same date as well as the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-Q,10-K and other filings with the Securities and Exchange Commission.

FNF-E

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant Group

 

FNFV 
Corporate and Other

Three Months Ended

     

March 31, 2016

     

Operating revenue

 

$

331

   

$

293

   

$

38

 

Interest and investment income

 

1

   

   

1

 

Realized gains and losses, net

 

(3)

   

(3)

   

 

Total revenue

 

329

   

290

   

39

 
             

Personnel costs

 

38

   

13

   

25

 

Other operating expenses

 

27

   

21

   

6

 

Cost of restaurant revenue

 

245

   

245

   

 

Depreciation and amortization

 

15

   

10

   

5

 

Interest expense

 

3

   

1

   

2

 

Total expenses

 

328

   

290

   

38

 
             

Pre-tax earnings from continuing operations

 

$

1

   

$

   

$

1

 
             

Non-GAAP adjustments before taxes

           

  Realized (gains) and losses, net

 

$

3

   

$

3

   

$

 

  Max & Erma's exit/disposal cost

 

6

   

6

     

  Purchase price amortization

 

7

   

3

   

4

 

 Total non-GAAP adjustments before taxes

 

$

16

   

$

12

   

$

4

 
             

  Adjusted pre-tax earnings from continuing operations

 

$

17

   

$

12

   

$

5

 

  Adjusted pre-tax margin from continuing operations

 

5.1

%

 

4.1

%

 

12.8

%

             

Purchase price amortization

 

(7)

   

(3)

   

(4)

 

Depreciation and amortization

 

15

   

10

   

5

 

Interest expense

 

3

   

1

   

2

 
             

  Adjusted EBITDA

 

$

28

   

$

20

   

$

8

 

  Adjusted EBITDA margin

 

8.4

%

 

6.8

%

 

20.5

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant Group

 

FNFV 
Corporate and Other

Three Months Ended

     

March 31, 2016

     

Pre-tax earnings from continuing operations

 

$

1

   

$

   

$

1

 
             

  Income tax benefit

 

(1)

   

   

(1)

 

  Loss from equity investments

 

(1)

   

   

(1)

 
             

Net earnings attributable to FNFV common shareholders

 

$

1

   

$

   

$

1

 
             

EPS attributable to FNFV common shareholders - basic

 

$

0.01

   

$

   

$

0.01

 

EPS attributable to FNFV common shareholders - diluted

 

$

0.01

   

$

   

$

0.01

 
             

FNFV weighted average shares - basic

 

70

         

FNFV weighted average shares - diluted

 

72

         
             

Net earnings attributable to FNFV common shareholders

 

$

1

   

$

   

$

1

 
             

 Total non-GAAP, pre-tax adjustments

 

$

16

   

$

12

   

$

4

 

  Income taxes on non-GAAP adjustments

 

(3)

   

(3)

   

 

  Ceridian divestiture (gain) loss

 

(3)

   

   

(3)

 

  Noncontrolling interest on non-GAAP adjustments

 

(5)

   

(5)

   

 

Total non-GAAP adjustments

 

5

   

4

   

1

 
             

Adjusted net earnings attributable to FNFV common shareholders

 

$

6

   

$

4

   

$

2

 
             

Adjusted EPS attributable to FNFV common shareholders - diluted

 

$

0.08

   

$

0.06

   

$

0.02

 
             

Cash flows provided by operations:

 

$

19

         

Non-GAAP adjustments:

           

Total non-GAAP adjustments

 

         
             

Adjusted cash flows from operations

 

19

         

Capital expenditures

 

12

         

Free cash flow

 

$

7

         

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant Group

 

FNFV 
Corporate and Other

Three Months Ended

     

March 31, 2015

     

Operating revenue

 

$

477

   

$

364

   

$

113

 

Interest and investment income

 

1

   

   

1

 

Total revenue

 

478

   

364

   

114

 
             

Personnel costs

 

38

   

17

   

21

 

Other operating expenses

 

94

   

16

   

78

 

Cost of restaurant revenue

 

306

   

306

   

 

Depreciation and amortization

 

17

   

13

   

4

 

Interest expense

 

2

   

2

   

 

Total expenses

 

457

   

354

   

103

 
             

Pre-tax earnings from continuing operations

 

$

21

   

$

10

   

$

11

 
             

Non-GAAP adjustments before taxes

           

  Purchase price amortization

 

7

   

4

   

3

 

 Total non-GAAP adjustments before taxes

 

$

7

   

$

4

   

$

3

 
             

  Adjusted pre-tax earnings from continuing operations

 

$

28

   

$

14

   

$

14

 

  Adjusted pre-tax margin from continuing operations

 

5.9

%

 

3.8

%

 

12.3

%

             

Purchase price amortization

 

(7)

   

(4)

   

(3)

 

Depreciation and amortization

 

17

   

13

   

4

 

Interest expense

 

2

   

2

   

 
             

  Adjusted EBITDA

 

$

40

   

$

25

   

$

15

 

  Adjusted EBITDA margin

 

8.4

%

 

6.9

%

 

13.2

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

FIRST QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant Group

 

FNFV 
Corporate and Other

Three Months Ended

     

March 31, 2015

     

Pre-tax earnings from continuing operations

 

$

21

   

$

10

   

$

11

 
             

  Income tax expense

 

3

   

   

3

 

(Loss) from equity investments

 

(3)

   

   

(3)

 

  Non-controlling interests

 

15

   

3

   

12

 
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

   

$

7

   

$

(7)

 
             

EPS attributable to FNFV common shareholders - basic

 

$

   

$

0.08

   

$

(0.08)

 

EPS attributable to FNFV common shareholders - diluted

 

$

   

$

0.08

   

$

(0.08)

 
             

FNFV weighted average shares - basic

 

90

         

FNFV weighted average shares - diluted

 

92

         
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

   

$

7

   

$

(7)

 
             

 Total non-GAAP, pre-tax adjustments

 

$

7

   

$

4

   

$

3

 

  Income taxes on non-GAAP adjustments

 

(2)

   

(1)

   

(1)

 

  Noncontrolling interest on non-GAAP adjustments

 

(2)

   

(2)

   

 

Total non-GAAP adjustments

 

3

   

1

   

2

 
             

Adjusted net earnings (loss) attributable to FNFV common shareholders

 

$

3

   

$

8

   

$

(5)

 
             

Adjusted EPS attributable to FNFV common shareholders - diluted

 

$

0.03

   

$

0.09

   

$

(0.06)

 
             

Cash flows provided by operations:

 

$

7

         

Non-GAAP adjustments:

           

Total Non-GAAP adjustments

 

         
             

Adjusted cash flows from operations

 

7

         

Capital expenditures

 

10

         

Free cash flow

 

$

(3)

         

 

 

1FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)

 
   

FNFV

March 31, 2016

 

FNFV

December 31, 
2015

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$

701

     

$

735

 

Goodwill

   

187

     

188

 

Total assets

   

1,410

     

1,429

 

Notes payable

   

207

     

200

 

Non-controlling interest

   

116

     

114

 

Total equity and redeemable non-controlling interests

   

1,067

     

1,083

 

Total equity attributable to common shareholders

   

951

     

969

 

 

   

FNF Group

March 31, 2016

   

FNFV

March 31, 2016

   

Consolidated

March 31, 2016

 

Consolidated

December 31, 
2015

   

(Unaudited)

 

(Unaudited)

   

(Unaudited)

     

Cash and investment portfolio

   

$

4,957

     

$

701

       

$

5,658

     

$

5,633

 

Goodwill

   

4,579

     

187

       

4,766

     

4,760

 

Title plant

   

395

     

       

395

     

395

 

Total assets

   

12,533

     

1,410

       

13,943

     

13,931

 

Notes payable

   

2,535

     

207

       

2,742

     

2,793

 

Reserve for title claim losses

   

1,595

     

       

1,595

     

1,583

 

Secured trust deposits

   

840

     

       

840

     

701

 

Redeemable non-controlling interests

   

344

     

       

344

     

344

 

Non-redeemable non-controlling interests

   

732

     

116

       

848

     

834

 

Total equity and redeemable non-controlling interests

   

5,852

     

1,067

       

6,919

     

6,932

 

Total equity attributable to common shareholders

   

4,776

     

951

       

5,727

     

5,754

 

 

 Adjusted Book Value Summary

FNFV

March 31,

2016

 

FNFV

December 31, 
2015

 

(Unaudited)

 

(Unaudited)

Ceridian/Fleetcor

 

$

420

     

$

363

 

American Blue Ribbon Holdings

 

169

     

169

 

Del Frisco's Restaurant Group

 

48

     

34

 

Digital Insurance

 

74

     

73

 

Holding Company Cash

 

112

     

245

 

Other

 

128

     

85

 

     Adjusted FNFV Book Value

 

$

951

     

$

969

 

     Outstanding FNFV shares

 

69.0

     

72.2

 

     Adjusted FNFV Book Value per Share

 

$

13.78

     

$

13.43

 

 

 

FIDELITY NATIONAL FINANCIAL, INC.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

 
 

Three Months Ended

 

March 31, 2016

 

Consolidated

 

Core

 

FNFV

Direct title premiums

$

422

   

$

422

   

$

 

Agency title premiums

530

   

530

   

 

     Total title premiums

952

   

952

   

 

Escrow, title-related and other fees

779

   

741

   

38

 

     Total title and escrow and other

1,731

   

1,693

   

38

 
           

Restaurant revenue

293

   

   

293

 

Interest and investment income

30

   

29

   

1

 

Realized gains and losses, net

(6)

   

(3)

   

(3)

 

     Total revenue

2,048

   

1,719

   

329

 
           

Personnel costs

652

   

614

   

38

 

Other operating expenses

432

   

405

   

27

 

Cost of restaurant revenue

245

   

   

245

 

Agent commissions

402

   

402

   

 

Depreciation and amortization

100

   

85

   

15

 

Title claim loss expense

52

   

52

   

 

Interest expense

34

   

31

   

3

 

     Total expenses

1,917

   

1,589

   

328

 
           

Earnings from continuing operations before taxes

131

   

130

   

1

 

Income tax expense (benefit)

49

   

50

   

(1)

 

Earnings from continuing operations before equity investments

82

   

80

   

2

 

Earnings (loss) from equity investments

2

   

3

   

(1)

 

Net earnings

84

   

83

   

1

 

Non-controlling interests

10

   

10

   

 

Net earnings attributable to common shareholders

$

74

   

$

73

   

$

1

 
           

Cash flows provided by operations

92

   

73

   

19

 

 

 

FIDELITY NATIONAL FINANCIAL, INC.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

 
 

Three Months Ended

 

March 31, 2015

 

Consolidated

 

Core

 

FNFV

Direct title premiums

$

417

   

$

417

   

$

 

Agency title premiums

441

   

441

   

 

  Total title premiums

858

   

858

   

 

Escrow, title-related and other fees

808

   

695

   

113

 

     Total title and escrow and other

1,666

   

1,553

   

113

 
           

Restaurant revenue

364

   

   

364

 

Interest and investment income

31

   

30

   

1

 

     Total revenue

2,061

   

1,583

   

478

 
           

Personnel costs

623

   

585

   

38

 

Other operating expenses

466

   

372

   

94

 

Cost of restaurant revenue

306

   

   

306

 

Agent commissions

333

   

333

   

 

Depreciation and amortization

100

   

83

   

17

 

Title claim loss expense

51

   

51

   

 

Interest expense

31

   

29

   

2

 

     Total expenses

1,910

   

1,453

   

457

 
           

Earnings from continuing operations before taxes

151

   

130

   

21

 

Income tax expense

50

   

47

   

3

 

Earnings from continuing operations before equity investments

101

   

83

   

18

 

(Loss) earnings from equity investments

(1)

   

2

   

(3)

 

Net earnings

100

   

85

   

15

 

Non-controlling interests

14

   

(1)

   

15

 

Net earnings attributable to common shareholders

$

86

   

$

86

   

$

 
           

Cash flows provided by operations

42

   

35

   

7

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnfv-reports-first-quarter-2016-results-with-951-million-adjusted-book-value-of-portfolio-company-investments-or-1378-per-share-repurchased-additional-32-million-shares-of-common-stock-in-first-quarter-300258650.html

SOURCE Fidelity National Financial, Inc.

 

 

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