News Release

FNFV Reports Second Quarter 2017 Results With $1.02 Billion Book Value of Portfolio Company Investments, or $15.70 Per Share

July 19, 2017

JACKSONVILLE, Fla., July 19, 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 and six-month periods ended June 30, 2017. 

  • Total revenue of $599 million in the second quarter versus $348 million in the second quarter of 2016
  • Pre-tax gain of $269 million from the June closing of the sale of One Digital Health and Benefits
  • Second quarter diluted EPS of $1.81 versus diluted EPS of $0.14 in the second quarter of 2016
  • Pretax earnings of $237 million and EBITDA of $256 million for the second quarter versus pretax earnings of $19 million and EBITDA of $35 millionfor the second quarter of 2016
  • $354 million in holding company cash on June 30, 2017

Restaurant Group

  • $287 million in total revenue, pretax loss of $2 million, EBITDA of $10 million, and an EBITDA margin of 3.5% for the second quarter, versus $292 million in total revenue, pretax earnings of $6 million, EBITDA of $17 million, and an EBITDA margin of 5.8% in the second quarter of 2016
  • Same store sales decreased 1.6% in the second quarter, as a Ninety Nine same stores sales increase of 0.6% was offset by an O'Charley'sdecline of 2.6%, a Village Inn decrease of 3.2% and a Bakers Square decline of 0.7%

Ceridian HCM

  • Second quarter total revenue of approximately $177 million, a 6.3% increase over the second quarter of 2016, pretax loss of $20.9 million, EBITDA of $15.2 million, a 60% increase over the second quarter of 2016, and an EBITDA margin of 8.6%

Monetization and Investment Initiatives

  • On June 2, completed the sale of One Digital Health and Benefits for $560 million in an all-cash transaction; after repayment of debt, payout to option holders and a minority equity investor and other transaction related payments, we received $331 million; after-tax proceeds were approximately $219 million
  • During the second quarter, we repurchased 1,295,800 shares of FNFV stock for approximately $19.6 million; since the formation of FNFV in July 2014, 27.6 million shares of FNFV stock have been repurchased for a total of $374 million; approximately 31% of the shares of FNFV stock distributed in July 2014 have been repurchased

"We were excited to monetize One Digital at an attractive price for our shareholders and recognize a pre-tax cash monetization of $331 million," said Chairman William P. Foley, II.  "This represented a 4.6x cash on cash multiple on our original equity investment and a 41% IRR.  We experienced tremendous growth in One Digital in our 4 1/2 year ownership and are proud of the success the company and FNFV enjoyed together.

"We also made significant progress on the FNFV exchange during the second quarter, with several milestones achieved.  We announced the receipt of the private letter ruling on May 10, filed the preliminary Registration Statement on Form S-4 with the SEC on May 11, received comments from the SEC on June 6 and responded to those comments on June 22.  We are continuing to work through the SEC review and are in the process of responding to additional comments received on July 14.  Once the SEC declares the Registration Statement on S-4 effective, we can mail the proxy to shareholders and then have the shareholder vote, at the earliest, twenty business days after the mailing.  We still expect a late third quarter closing for the exchange of the FNFV tracking stock for the new Cannae Holdings common stock that we plan to have trade on the NYSE under the ticker symbol CNNE."

Conference Call
We will host a call with investors and analysts to discuss second quarter 2017 results of FNFV on Thursday, July 20, 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 July 20, 2017, through July 27, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 426237.

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. 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

SECOND QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

             
   

Total FNFV

 

Restaurant 
Group

 

FNFV 
Corporate and 
Other

Three Months Ended

     

June 30, 2017

       

Operating revenue

 

$

330

   

$

288

   

$

42

 

Interest and investment income

 

1

   

   

1

 

Realized gains and losses, net

 

268

   

(1)

   

269

 

Total revenue

 

599

   

287

   

312

 
             

Personnel costs

 

65

   

13

   

52

 

Other operating expenses

 

29

   

15

   

14

 

Cost of restaurant revenue

 

249

   

249

   

 

Depreciation and amortization

 

16

   

11

   

5

 

Interest expense

 

3

   

1

   

2

 

Total expenses

 

362

   

289

   

73

 
             

Pre-tax earnings (loss) from continuing operations

 

$

237

   

$

(2)

   

$

239

 
             

  Income tax expense

 

$

113

   

$

   

$

113

 

  Loss from equity investments

 

(4)

   

   

(4)

 

  Non-controlling interests

 

(1)

   

(1)

   

 
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

121

   

$

(1)

   

$

122

 
             

EPS attributable to FNFV common shareholders - basic

 

$

1.83

   

$

(0.02)

   

$

1.85

 

EPS attributable to FNFV common shareholders - diluted

 

$

1.81

   

$

(0.02)

   

$

1.83

 
             

FNFV weighted average shares - basic

 

66

         

FNFV weighted average shares - diluted

 

67

         
             

Pre-tax earnings (loss) from continuing operations

 

$

237

   

$

(2)

   

$

239

 
             

Interest expense

 

$

3

   

$

1

   

$

2

 

Depreciation and amortization

 

16

   

11

   

5

 
             

EBITDA

 

$

256

   

$

10

   

$

246

 

EBITDA margin

 

42.7

%

 

3.5

%

 

78.8

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SECOND QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

             
   

Total FNFV

 

Restaurant 
Group

 

FNFV 
Corporate and 
Other

Three Months Ended

     

June 30, 2016

       

Operating revenue

 

$

332

   

$

292

   

$

40

 

Interest and investment income

 

1

   

   

1

 

Realized gains and losses, net

 

15

   

   

15

 

Total revenue

 

348

   

292

   

56

 
             

Personnel costs

 

40

   

14

   

26

 

Other operating expenses

 

28

   

16

   

12

 

Cost of restaurant revenue

 

245

   

245

   

 

Depreciation and amortization

 

15

   

10

   

5

 

Interest expense

 

1

   

1

   

 

Total expenses

 

329

   

286

   

43

 
             

Pre-tax earnings from continuing operations

 

$

19

   

$

6

   

$

13

 
             

  Income tax expense

 

$

3

   

$

   

$

3

 

Loss from equity investments

 

(4)

   

   

(4)

 

  Non-controlling interests

 

2

   

2

   

 
             

Net earnings attributable to FNFV common shareholders

 

$

10

   

$

4

   

$

6

 
             

EPS attributable to FNFV common shareholders - basic

 

$

0.15

   

$

0.06

   

$

0.09

 

EPS attributable to FNFV common shareholders - diluted

 

$

0.14

   

$

0.06

   

$

0.08

 
             

FNFV weighted average shares - basic

 

67

         

FNFV weighted average shares - diluted

 

70

         
             

Pre-tax earnings from continuing operations

 

$

19

   

$

6

   

$

13

 
             

Interest expense

 

$

1

   

$

1

   

$

 

Depreciation and amortization

 

15

     

10

     

5

 
             

EBITDA

 

$

35

   

$

17

   

$

18

 

EBITDA margin

 

10.1

%

5.8

%

   

32.1

%

                         

 

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)

             
   

Total FNFV

 

Restaurant 
Group

 

FNFV 
Corporate and 
Other

Six Months Ended

     

June 30, 2017

       

Operating revenue

 

$

652

   

$

561

   

$

91

 

Interest and investment income

 

2

   

   

2

 

Realized gains and losses, net

 

273

   

(1)

   

274

 

Total revenue

 

927

   

560

   

367

 
             

Personnel costs

 

111

   

26

   

85

 

Other operating expenses

 

54

   

30

   

24

 

Cost of restaurant revenue

 

485

   

485

   

 

Depreciation and amortization

 

32

   

22

   

10

 

Interest expense

 

7

   

3

   

4

 

Total expenses

 

689

   

566

   

123

 
             

Pre-tax earnings (loss) from continuing operations

 

$

238

   

$

(6)

   

$

244

 
             

  Income tax expense

 

111

   

   

111

 

Loss from equity investments

 

(8)

   

   

(8)

 

  Non-controlling interests

 

(3)

   

(3)

   

 
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

122

   

$

(3)

   

$

125

 
             

EPS attributable to FNFV common shareholders - basic

 

$

1.85

   

$

(0.05)

   

$

1.90

 

EPS attributable to FNFV common shareholders - diluted

 

$

1.79

   

$

(0.05)

   

$

1.84

 
             

FNFV weighted average shares - basic

 

66

         

FNFV weighted average shares - diluted

 

68

         
             

Pre-tax earnings (loss) from continuing operations

 

$

238

   

$

(6)

   

$

244

 
             

Interest expense

 

$

7

   

$

3

   

$

4

 

Depreciation and amortization

 

32

   

22

   

10

 
             

EBITDA

 

$

277

   

$

19

   

$

258

 

EBITDA margin

 

29.9

%

 

3.4

%

 

70.3

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)

             
   

Total FNFV

 

Restaurant 
Group

 

FNFV 
Corporate and 
Other

Six Months Ended

     

June 30, 2016

       

Operating revenue

 

$

663

   

$

585

   

$

78

 

Interest and investment income

 

2

   

   

2

 

Realized gains and losses, net

 

12

   

(3)

   

15

 

Total revenue

 

677

   

582

   

95

 
             

Personnel costs

 

78

   

27

   

51

 

Other operating expenses

 

55

   

37

   

18

 

Cost of restaurant revenue

 

490

   

490

   

 

Depreciation and amortization

 

30

   

20

   

10

 

Interest expense

 

4

   

2

   

2

 

Total expenses

 

657

   

576

   

81

 
             

Pre-tax earnings from continuing operations

 

$

20

   

$

6

   

$

14

 
             

Income tax expense

 

$

2

   

$

   

$

2

 

Loss from equity investments

 

(5)

   

   

(5)

 

Non-controlling interests

 

2

   

2

   

 
             

Net earnings attributable to FNFV common shareholders

 

$

11

   

$

4

   

$

7

 
             

EPS attributable to FNFV common shareholders - basic

 

$

0.16

   

$

0.06

   

$

0.10

 

EPS attributable to FNFV common shareholders - diluted

 

$

0.15

   

$

0.06

   

$

0.09

 
             

FNFV weighted average shares - basic

 

69

         

FNFV weighted average shares - diluted

 

71

         
             

Pre-tax earnings from continuing operations

 

$

20

   

$

6

   

$

14

 
             

Interest expense

 

$

4

   

$

2

   

$

2

 

Depreciation and amortization

 

30

   

20

   

10

 
             

EBITDA

 

$

54

   

$

28

   

$

26

 

EBITDA margin

 

8.0

%

 

4.8

%

 

27.4

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)

       
 

FNFV

June 30, 
2017

 

FNFV

December 31, 
2016

 

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

 

$

850

   

$

642

Goodwill

 

102

   

206

Total assets

 

1,354

   

1,400

Notes payable

 

118

   

233

Non-controlling interest

 

108

   

116

Total equity and redeemable non-controlling interests

 

1,130

   

1,032

Total equity attributable to common shareholders

 

1,022

   

916

               
                                     
                               
 

FNF Group

June 30, 2017

   

FNFV

June 30, 2017

   

Consolidated

June 30, 
2017

 

Consolidated

December 31, 
2016

 

(Unaudited)

 

(Unaudited)

   

(Unaudited)

     

Cash and investment portfolio

 

$

4,705

     

$

850

       

$

5,555

   

$

5,607

Goodwill

 

4,905

     

102

       

5,007

   

5,065

Title plant

 

395

     

       

395

   

395

Total assets

 

12,848

     

1,354

       

14,202

   

14,463

Notes payable

 

2,320

     

118

       

2,438

   

2,746

Reserve for title claim losses

 

1,492

     

       

1,492

   

1,487

Secured trust deposits

 

892

     

       

892

   

860

Redeemable non-controlling interests

 

344

     

       

344

   

344

Non-redeemable non-controlling interests

 

770

     

108

       

878

   

902

Total equity and redeemable non-controlling interests

 

6,133

     

1,130

       

7,263

   

7,242

Total equity attributable to common shareholders

 

5,019

     

1,022

       

6,041

   

5,996

                             
                           

Adjusted Book Value Summary

FNFV

June 30,

2017

 

FNFV

December 31, 
2016

 

(Unaudited)

 

(Unaudited)

Ceridian/Fleetcor

 

$

399

     

$

386

American Blue Ribbon Holdings

 

173

     

173

One Digital

 

     

75

Del Frisco's Restaurant Group

 

18

     

49

Holding Company Cash

 

354

     

129

Other

 

78

     

104

     FNFV Book Value

 

$

1,022

     

$

916

     Outstanding FNFV shares

 

65.1

     

66.4

     FNFV Book Value per Share

 

$

15.70

     

$

13.78

 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

         
 

Three Months Ended

   

Six Months Ended

 

June 30, 2017

   

June 30, 2017

 

Consolidated

 

Core

 

FNFV

   

Consolidated

 

Core

 

FNFV

Direct title premiums

$

575

   

$

575

   

$

     

$

1,040

   

$

1,040

   

$

 

Agency title premiums

726

   

726

   

     

1,309

   

1,309

   

 

     Total title premiums

1,301

   

1,301

   

     

2,349

   

2,349

   

 

Escrow, title-related and other fees

1,008

   

966

   

42

     

1,876

   

1,785

   

91

 

     Total title and escrow and other

2,309

   

2,267

   

42

     

4,225

   

4,134

   

91

 
                         

Restaurant revenue

288

   

   

288

     

561

   

   

561

 

Interest and investment income

34

   

33

   

1

     

63

   

61

   

2

 

Realized gains and losses, net

256

   

(12)

   

268

     

255

   

(18)

   

273

 

     Total revenue

2,887

   

2,288

   

599

     

5,104

   

4,177

   

927

 
                         

Personnel costs

788

   

723

   

65

     

1,503

   

1,392

   

111

 

Other operating expenses

558

   

529

   

29

     

1,018

   

964

   

54

 

Cost of restaurant revenue

249

   

   

249

     

485

   

   

485

 

Agent commissions

558

   

558

   

     

1,004

   

1,004

   

 

Depreciation and amortization

110

   

94

   

16

     

222

   

190

   

32

 

Title claim loss expense

65

   

65

   

     

117

   

117

   

 

Interest expense

29

   

26

   

3

     

64

   

57

   

7

 

     Total expenses

2,357

   

1,995

   

362

     

4,413

   

3,724

   

689

 
                         

Earnings from continuing operations before taxes

530

   

293

   

237

     

691

   

453

   

238

 

Income tax expense

226

   

113

   

113

     

304

   

193

   

111

 

Earnings from continuing operations before equity investments

304

   

180

   

124

     

387

   

260

   

127

 

(Loss) earnings from equity investments

(2)

   

2

   

(4)

     

(4)

   

4

   

(8)

 

Net earnings from continuing operations

302

   

182

   

120

     

383

   

264

   

119

 

Non-controlling interests

6

   

7

   

(1)

     

15

   

18

   

(3)

 

Net earnings attributable to common shareholders

$

296

   

$

175

   

$

121

     

$

368

   

$

246

   

$

122

 
                         

Cash flows provided by (used in) operations

287

   

401

   

(114)

     

291

   

389

   

(98)

 

 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

         
 

Three Months Ended

   

Six Months Ended

 

June 30, 2016

   

June 30, 2016

 

Consolidated

 

Core

 

FNFV

   

Consolidated

 

Core

 

FNFV

Direct title premiums

$

540

   

$

540

   

$

     

$

962

   

$

962

   

$

 

Agency title premiums

691

   

691

   

     

1,221

   

1,221

   

 

  Total title premiums

1,231

   

1,231

   

     

2,183

   

2,183

   

 

Escrow, title-related and other fees

907

   

867

   

40

     

1,686

   

1,608

   

78

 

     Total title and escrow and other

2,138

   

2,098

   

40

     

3,869

   

3,791

   

78

 
                         

Restaurant revenue

292

   

   

292

     

585

   

   

585

 

Interest and investment income

37

   

36

   

1

     

67

   

65

   

2

 

Realized gains and losses, net

15

   

   

15

     

9

   

(3)

   

12

 

     Total revenue

2,482

   

2,134

   

348

     

4,530

   

3,853

   

677

 
                         

Personnel costs

707

   

667

   

40

     

1,359

   

1,281

   

78

 

Other operating expenses

493

   

465

   

28

     

925

   

870

   

55

 

Cost of restaurant revenue

245

   

   

245

     

490

   

   

490

 

Agent commissions

526

   

526

   

     

928

   

928

   

 

Depreciation and amortization

102

   

87

   

15

     

202

   

172

   

30

 

Title claim loss expense

68

   

68

   

     

120

   

120

   

 

Interest expense

33

   

32

   

1

     

67

   

63

   

4

 

     Total expenses

2,174

   

1,845

   

329

     

4,091

   

3,434

   

657

 
                         

Earnings from continuing operations before taxes

308

   

289

   

19

     

439

   

419

   

20

 

Income tax expense

101

   

98

   

3

     

150

   

148

   

2

 

Earnings from continuing operations before equity investments

207

   

191

   

16

     

289

   

271

   

18

 

(Loss) earnings from equity investments

(1)

   

3

   

(4)

     

1

   

6

   

(5)

 

Net earnings from continuing operations

206

   

194

   

12

     

290

   

277

   

13

 

Non-controlling interests

9

   

7

   

2

     

19

   

17

   

2

 

Net earnings attributable to common shareholders

$

197

   

$

187

   

$

10

     

$

271

   

$

260

   

$

11

 
                         

Cash flows provided by operations

282

   

277

   

5

     

374

   

349

   

25

 

 

View original content:http://www.prnewswire.com/news-releases/fnfv-reports-second-quarter-2017-results-with-102-billion-book-value-of-portfolio-company-investments-or-1570-per-share-300490771.html

SOURCE Fidelity National Financial, Inc.

 

 

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