News Release

FNFV Reports First Quarter 2017 Results With $917 Million Book Value of Portfolio Company Investments, or $13.80 Per Share

May 3, 2017

JACKSONVILLE, Fla., May 3, 2017 /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, 2017

  • Total revenue of $328 million in the first quarter versus $329 million in the first quarter of 2016
  • First quarter diluted EPS of $0.01 versus diluted EPS of $0.01 in the first quarter of 2016
  • Pretax earnings of $1 million and EBITDA of $21 million for the first quarter versus pretax earnings of $1 million and EBITDA of $19 million for the first quarter of 2016
  • $160 million in holding company cash on March 31, 2017
  • Since the formation of FNFV in July 2014, more than 26 million shares of FNFV common stock have been repurchased for a total of more than $354 million; approximately 29% of the shares of FNFV common stock distributed in July 2014 have been repurchased

Restaurant Group

  • $273 million in total revenue, pretax loss of $4 million, EBITDA of $9 million, and an EBITDA margin of 3.3% for the first quarter, versus $290 million in total revenue, pretax earnings of $0 million, EBITDA of $11 million, and an EBITDA margin of 3.8% in the first quarter of 2016
  • Same store sales decreased approximately 4% in the first quarter, as Ninety Nine same stores sales declined 0.8%, O'Charley's declined by 5.0%, Village Inn decreased 5.9% and Bakers Square fell by 6.7%

One Digital

  • First quarter total revenue of nearly $47 million, a 28% increase over the first quarter of 2016; pretax earnings of $4.8 million; EBITDA of $11.4 million, a 37% increase over the first quarter of 2016; first quarter EBITDA margin of 24.4%

Ceridian HCM

  • First quarter total revenue of approximately $187 million, a 4.7% increase over the first quarter of 2016, pretax loss of $9.2 million, EBITDA of $26.3 million, a 16% increase over the first quarter of 2016, and an EBITDA margin of 14.1%

Monetization and Investment Initiatives

  • During the first quarter, we sold 1,882,441 shares of Del Frisco's common stock for total cash proceeds of approximately $31.6 million and a realized gain of $5.1 million

"The first quarter was relatively quiet on the monetization front as we prepare for the exchange of the FNFV tracking stock in the third quarter," said Chairman William P. Foley, II.  "However, in two transactions during the first quarter, we sold a total of 1,882,441 shares of Del Frisco's common stock for total cash proceeds of approximately $31.6 million, bringing our holdings in Del Frisco's down to 1,161,888 shares.

"We are continuing to focus on completing the necessary filings, shareholder votes and other closing conditions for the FNFV tracking stock exchange.  As part of the exchange that we expect to complete in the third quarter, the newly formed public company is expected to be named Cannae Holdings, Inc. to more formally reflect its independence from FNF, with a new trading symbol of 'CNNE' currently on reserve with the New York Stock Exchange."

Conference Call
We will host a call with investors and analysts to discuss first quarter 2017 results of FNFV on Thursday, May 4, 2017, 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 May 4, 2017, through May 11, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 421932.

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., 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), and earnings before interest, taxes and depreciation as a percent of revenue (EBITDA margin).

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: our ability to successfully achieve the conditions to and consummate the plan to redeem and exchange the FNFV tracking stock with the result being an independent, publicly-traded FNFV common stock; 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, 2017

     

Operating revenue

 

$

322

   

$

273

   

$

49

 

Interest and investment income

 

1

   

   

1

 

Realized gains and losses, net

 

5

   

   

5

 

Total revenue

 

328

   

273

   

55

 
             

Personnel costs

 

46

   

13

   

33

 

Other operating expenses

 

25

   

15

   

10

 

Cost of restaurant revenue

 

236

   

236

   

 

Depreciation and amortization

 

16

   

11

   

5

 

Interest expense

 

4

   

2

   

2

 

Total expenses

 

327

   

277

   

50

 
             

Pre-tax earnings (loss) from continuing operations

 

$

1

   

$

(4)

   

$

5

 
             

  Income tax benefit

 

$

(2)

   

$

   

$

(2)

 

  Loss from equity investments

 

(4)

   

   

(4)

 

  Non-controlling interests

 

(2)

   

(2)

   

 
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

1

   

$

(2)

   

$

3

 
             

EPS attributable to FNFV common shareholders - basic

 

$

0.02

   

$

(0.03)

   

$

0.05

 

EPS attributable to FNFV common shareholders - diluted

 

$

0.01

   

$

(0.03)

   

$

0.04

 
             

FNFV weighted average shares - basic

 

66

         

FNFV weighted average shares - diluted

 

68

         
             

Pre-tax earnings (loss) from continuing operations

 

$

1

   

$

(4)

   

$

5

 
             

Interest expense

 

$

4

   

$

2

   

$

2

 

Depreciation and amortization

 

16

   

11

   

5

 
             

EBITDA

 

$

21

   

$

9

   

$

12

 

EBITDA margin

 

6.4

%

 

3.3

%

 

21.8

%

 

 

 

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

 
             

  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

         
             

Pre-tax earnings from continuing operations

 

$

1

   

$

   

$

1

 
             

Interest expense

 

$

3

   

$

1

   

$

2

 

Depreciation and amortization

 

15

   

10

   

5

 
             

EBITDA

 

$

19

   

$

11

   

$

8

 

EBITDA margin

 

5.8

%

 

3.8

%

 

20.5

%

 

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)

 
   

FNFV

March 31, 2017

 

FNFV

December 31,
2016

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$

662

     

$

642

 

Goodwill

   

216

     

206

 

Total assets

   

1,423

     

1,400

 

Notes payable

   

259

     

233

 

Non-controlling interest

   

114

     

116

 

Total equity and redeemable non-controlling interests

   

1,031

     

1,032

 

Total equity attributable to common shareholders

   

917

     

916

 
 
 
   

FNF Group

March 31, 2017

   

FNFV

March 31, 2017

   

Consolidated

March 31, 2017

 

Consolidated

December 31,
2016

   

(Unaudited)

 

(Unaudited)

   

(Unaudited)

     

Cash and investment portfolio

   

$

4,660

     

$

662

       

$

5,322

     

$

5,607

 

Goodwill

   

4,869

     

216

       

5,085

     

5,065

 

Title plant

   

395

     

       

395

     

395

 

Total assets

   

12,755

     

1,423

       

14,178

     

14,463

 

Notes payable

   

2,463

     

259

       

2,722

     

2,746

 

Reserve for title claim losses

   

1,484

     

       

1,484

     

1,487

 

Secured trust deposits

   

748

     

       

748

     

860

 

Redeemable non-controlling interests

   

344

     

       

344

     

344

 

Non-redeemable non-controlling interests

   

797

     

114

       

911

     

902

 

Total equity and redeemable non-controlling
interests

   

6,203

     

1,031

       

7,234

     

7,242

 

Total equity attributable to common shareholders

   

5,062

     

917

       

5,979

     

5,996

 
 
 

Adjusted Book Value Summary

 

FNFV

March 31,

2017

   

FNFV

December 31,
2016

   

(Unaudited)

   

(Unaudited)

Ceridian/Fleetcor

 

$

385

     

$

386

 

American Blue Ribbon Holdings

 

171

     

173

 

One Digital

 

77

     

75

 

Del Frisco's Restaurant Group

 

20

     

49

 

Holding Company Cash

 

160

     

129

 

Other

 

104

     

104

 

     FNFV Book Value

 

$

917

     

$

916

 

     Outstanding FNFV shares

 

66.4

     

66.4

 

     FNFV Book Value per Share

 

$

13.80

     

$

13.78

 

 

 

 

FIDELITY NATIONAL FINANCIAL, INC.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

 
 

Three Months Ended

 

March 31, 2017

 

Consolidated

 

Core

 

FNFV

Direct title premiums

$

465

   

$

465

   

$

 

Agency title premiums

583

   

583

   

 

     Total title premiums

1,048

   

1,048

   

 

Escrow, title-related and other fees

868

   

819

   

49

 

     Total title and escrow and other

1,916

   

1,867

   

49

 
           

Restaurant revenue

273

   

   

273

 

Interest and investment income

29

   

28

   

1

 

Realized gains and losses, net

(1)

   

(6)

   

5

 

     Total revenue

2,217

   

1,889

   

328

 
           

Personnel costs

715

   

669

   

46

 

Other operating expenses

460

   

435

   

25

 

Cost of restaurant revenue

236

   

   

236

 

Agent commissions

446

   

446

   

 

Depreciation and amortization

112

   

96

   

16

 

Title claim loss expense

52

   

52

   

 

Interest expense

35

   

31

   

4

 

     Total expenses

2,056

   

1,729

   

327

 
           

Earnings from continuing operations before taxes

161

   

160

   

1

 

Income tax expense (benefit)

78

   

80

   

(2)

 

Earnings from continuing operations before equity investments

83

   

80

   

3

 

(Loss) earnings from equity investments

(2)

   

2

   

(4)

 

Net earnings (loss)

81

   

82

   

(1)

 

Non-controlling interests

9

   

11

   

(2)

 

Net earnings attributable to common shareholders

$

72

   

$

71

   

$

1

 
           

Cash flows provided by (used in) operations

4

   

(11)

   

15

 

 

 

 

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 from continuing operations

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

 

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fnfv-reports-first-quarter-2017-results-with-917-million-book-value-of-portfolio-company-investments-or-1380-per-share-300450879.html

SOURCE Fidelity National Financial, Inc.