News Release

FNFV Reports Third Quarter 2017 Results With $1.02 Billion Book Value of Portfolio Company Investments, or $15.65 Per Share

October 25, 2017

JACKSONVILLE, Fla., Oct. 25, 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 nine-month periods ended September 30, 2017

  • Total revenue of $279 million in the third quarter versus $319 million in the third quarter of 2016
  • Third quarter diluted EPS of ($0.08) versus diluted EPS of ($0.11) in the third quarter of 2016
  • Pretax loss of $21 million and EBITDA of ($8) million for the third quarter versus pretax loss of $4 million and EBITDA of $15 million for the third quarter of 2016
  • $323 million in holding company cash on September 30, 2017

Restaurant Group

  • $266 million in total revenue, pretax loss of $19 million, EBITDA of ($6) million for the third quarter, versus $272 million in total revenue, pretax loss of $4 million, EBITDA of $9 million, and an EBITDA margin of 3.3% in the third quarter of 2016
  • Same store sales declined 1.3% in the third quarter, as Ninety Nine same stores sales decreased by 1.3%, O'Charley's declined by 1.4%, Village Inn fell by 1.3% and Bakers Square declined by 0.7%

Ceridian HCM

  • Third quarter total revenue of $185 million, an 8.6% increase over the third quarter of 2016, pretax loss of $16.3 million, EBITDA of $20.1 million, a $20.7 million increase over the third quarter of 2016, and an EBITDA margin of 10.9%
  • Cloud-based revenues grew 33% to $103 million in the third quarter on a constant currency basis as 165 Dayforce customers went live on the platform during the quarter
  • Over 2,850 Dayforce customers are live on the platform, up from approximately 2,150 at the end of the third quarter of 2016

Monetization and Investment Initiatives

  • In October, completed the acquisition of T-System Holdings, a provider of clinical documentation and coding solutions to hospital-based and free-standing emergency departments and urgent care facilities, for approximately $200 million in cash
  • In August, announced a definitive agreement to merge 99 Restaurant & Pub with J. Alexander Holdings, after which FNFV will directly and indirectly own approximately 16.27 million common share equivalents, or approximately 52% of the outstanding common stock of J. Alexander's

"I am pleased with the success that we achieved this quarter, as we announced two exciting transactions that we believe will create value for our shareholders," said Chairman William P. Foley, II.  "The first is T-System, which is a great company with an experienced management team that operates in a very large and fragmented medical documentation and coding market, with a business model that is shifting to a majority of recurring revenue streams.  We believe that the documentation business is at an inflection point with a significant near-term organic growth opportunity.  We are also confident that we can assist T-System in making multiple acquisitions that can further accelerate future growth while expanding the product and services that the company offers to its customers.  Longer term, we see the Healthcare IT and Services sector as an exciting area for investment and growth and see T-System as a platform to take advantage of this opportunity.

"We also announced the merger of our 99 Restaurant and Pub operations with J. Alexander's in a stock for stock combination. Both 99 and J. Alexander's are terrific concepts that have individually generated strong same store sales and impressive financial performance in a challenging environment for the casual dining industry.  We believe this combination provides a larger, stronger, better diversified and more formidable player in the casual dining segment.

Mr. Foley concluded, "We made significant progress on the FNFV exchange transaction during the third quarter and have now set a shareholder vote and closing date of November 17, 2017, for the exchange of the FNFV tracking stock for Cannae Holdings common stock.  The new Cannae Holdings common stock will trade on the NYSE under the ticker symbol 'CNNE' and it will be a legally separate, stand-alone public company."

Conference Call
We will host a call with investors and analysts to discuss third quarter 2017 results of FNFV on Thursday, October 26, 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 October 26, 2017, through November 1, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 430330.

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. 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 Cannae Holdings 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

THIRD QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant
Group

 

Corporate and
Other

Three Months Ended

     

September 30, 2017

     

Operating revenue

 

$

280

   

$

269

   

$

11

 

Interest and investment income

 

2

   

   

2

 

Realized gains and losses, net

 

(3)

   

(3)

   

 

Total revenue

 

279

   

266

   

13

 
             

Personnel costs

 

19

   

13

   

6

 

Other operating expenses

 

25

   

16

   

9

 

Cost of restaurant revenue

 

243

   

243

   

 

Depreciation and amortization

 

12

   

11

   

1

 

Interest expense

 

1

   

2

   

(1)

 

Total expenses

 

300

   

285

   

15

 
             

Pre-tax loss from continuing operations

 

$

(21)

   

$

(19)

   

$

(2)

 
             

  Income tax benefit

 

$

(14)

   

$

   

$

(14)

 

  Loss from equity investments

 

(6)

   

   

(6)

 

  Non-controlling interests

 

(8)

   

(8)

   

 
             

Net (loss) earnings attributable to FNFV common shareholders

 

$

(5)

   

$

(11)

   

$

6

 
             

EPS attributable to FNFV common shareholders - basic

 

$

(0.08)

   

$

(0.17)

   

$

0.09

 

EPS attributable to FNFV common shareholders - diluted

 

$

(0.08)

   

$

(0.17)

   

$

0.09

 
             

FNFV weighted average shares - basic

 

65

         

FNFV weighted average shares - diluted

 

65

         
             

Pre-tax loss from continuing operations

 

$

(21)

   

$

(19)

   

$

(2)

 
             

Interest expense

 

$

1

   

$

2

   

$

(1)

 

Depreciation and amortization

 

12

   

11

   

1

 
             

EBITDA

 

$

(8)

   

$

(6)

   

$

(2)

 

EBITDA margin

 

   

   

 

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

THIRD QUARTER SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant
Group

 

Corporate and
Other

Three Months Ended

     

September 30, 2016

     

Operating revenue

 

$

319

   

$

273

   

$

46

 

Interest and investment income

 

1

   

   

1

 

Realized gains and losses, net

 

(1)

   

(1)

   

 

Total revenue

 

319

   

272

   

47

 
             

Personnel costs

 

42

   

13

   

29

 

Other operating expenses

 

25

   

13

   

12

 

Cost of restaurant revenue

 

237

   

237

   

 

Depreciation and amortization

 

15

   

11

   

4

 

Interest expense

 

4

   

2

   

2

 

Total expenses

 

323

   

276

   

47

 
             

Pre-tax loss from continuing operations

 

$

(4)

   

$

(4)

   

$

 
             

  Income tax benefit

 

$

(7)

   

$

   

$

(7)

 

 Loss from equity investments

 

(11)

   

   

(11)

 

  Non-controlling interests

 

(1)

   

(1)

   

 
             

Net loss attributable to FNFV common shareholders

 

$

(7)

   

$

(3)

   

$

(4)

 
             

EPS attributable to FNFV common shareholders - basic

 

$

(0.11)

   

$

(0.05)

   

$

(0.06)

 

EPS attributable to FNFV common shareholders - diluted

 

$

(0.11)

   

$

(0.05)

   

$

(0.06)

 
             

FNFV weighted average shares - basic

 

66

         

FNFV weighted average shares - diluted

 

69

         
             

Pre-tax loss from continuing operations

 

$

(4)

   

$

(4)

   

$

 
             

Interest expense

 

$

4

   

$

2

   

$

2

 

Depreciation and amortization

 

15

   

11

   

4

 
             

EBITDA

 

$

15

   

$

9

   

$

6

 

EBITDA margin

 

4.7

%

 

3.3

%

 

12.8

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant
Group

 

Corporate and
Other

Nine Months Ended

     

September 30, 2017

     

Operating revenue

 

$

932

   

$

830

   

$

102

 

Interest and investment income

 

4

   

   

4

 

Realized gains and losses, net

 

277

   

(4)

   

281

 

Total revenue

 

1,213

   

826

   

387

 
             

Personnel costs

 

136

   

39

   

97

 

Other operating expenses

 

80

   

46

   

34

 

Cost of restaurant revenue

 

728

   

728

   

 

Depreciation and amortization

 

44

   

33

   

11

 

Interest expense

 

8

   

5

   

3

 

Total expenses

 

996

   

851

   

145

 
             

Pre-tax earnings (loss) from continuing operations

 

$

217

   

$

(25)

   

$

242

 
             

  Income tax expense

 

97

   

   

97

 

 Loss from equity investments

 

(14)

   

   

(14)

 

  Non-controlling interests

 

(11)

   

(11)

   

 
             

Net earnings (loss) attributable to FNFV common shareholders

 

$

117

   

$

(14)

   

$

131

 
             

EPS attributable to FNFV common shareholders - basic

 

$

1.80

   

$

(0.22)

   

$

2.02

 

EPS attributable to FNFV common shareholders - diluted

 

$

1.75

   

$

(0.22)

   

$

1.97

 
             

FNFV weighted average shares - basic

 

65

         

FNFV weighted average shares - diluted

 

67

         
             

Pre-tax earnings (loss) from continuing operations

 

$

217

   

$

(25)

   

$

242

 
             

Interest expense

 

$

8

   

$

5

   

$

3

 

Depreciation and amortization

 

44

   

33

   

11

 
             

EBITDA

 

$

269

   

$

13

   

$

256

 

EBITDA margin

 

22.2

%

 

1.6

%

 

66.1

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

YTD SEGMENT INFORMATION

(In millions)

(Unaudited)

 
   

Total FNFV

 

Restaurant
Group

 

Corporate and
Other

Nine Months Ended

     

September 30, 2016

     

Operating revenue

 

$

982

   

$

858

   

$

124

 

Interest and investment income

 

3

   

   

3

 

Realized gains and losses, net

 

11

   

(4)

   

15

 

Total revenue

 

996

   

854

   

142

 
             

Personnel costs

 

120

   

40

   

80

 

Other operating expenses

 

80

   

50

   

30

 

Cost of restaurant revenue

 

727

   

727

   

 

Depreciation and amortization

 

45

   

31

   

14

 

Interest expense

 

8

   

4

   

4

 

Total expenses

 

980

   

852

   

128

 
             

Pre-tax earnings from continuing operations

 

$

16

   

$

2

   

$

14

 
             

Income tax benefit

 

$

(5)

   

$

   

$

(5)

 

Loss from equity investments

 

(16)

   

   

(16)

 

Non-controlling interests

 

1

   

1

   

 
             

Net earnings attributable to FNFV common shareholders

 

$

4

   

$

1

   

$

3

 
             

EPS attributable to FNFV common shareholders - basic

 

$

0.06

   

$

0.02

   

$

0.04

 

EPS attributable to FNFV common shareholders - diluted

 

$

0.06

   

$

0.02

   

$

0.04

 
             

FNFV weighted average shares - basic

 

68

         

FNFV weighted average shares - diluted

 

70

         
             

Pre-tax earnings from continuing operations

 

$

16

   

$

2

   

$

14

 
             

Interest expense

 

$

8

   

$

4

   

$

4

 

Depreciation and amortization

 

45

   

31

   

14

 
             

EBITDA

 

$

69

   

$

37

   

$

32

 

EBITDA margin

 

6.9

%

 

4.3

%

 

22.5

%

 

 

FIDELITY NATIONAL FINANCIAL VENTURES

SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY

(In millions)

 
   

FNFV

September 30,
2017

 

FNFV

December 31,
2016

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$

807

     

$

642

 

Goodwill

   

101

     

206

 

Total assets

   

1,311

     

1,400

 

Notes payable

   

128

     

233

 

Non-controlling interest

   

99

     

116

 

Total equity and redeemable non-controlling interests

   

1,114

     

1,032

 

Total equity attributable to common shareholders

   

1,015

     

916

 
 
   

FNF Group

September 30,
2017

   

FNFV

September 30,
2017

   

Consolidated

September 30,
2017

 

Consolidated

December 31,
2016

   

(Unaudited)

 

(Unaudited)

   

(Unaudited)

     

Cash and investment portfolio

   

$

4,555

     

$

807

       

$

5,362

     

$

5,473

 

Goodwill

   

2,683

     

101

       

2,784

     

2,761

 

Title plant

   

398

     

       

398

     

395

 

Total assets

   

9,190

     

1,311

       

10,501

     

14,463

 

Notes payable

   

762

     

128

       

890

     

1,220

 

Reserve for title claim losses

   

1,496

     

       

1,496

     

1,487

 

Secured trust deposits

   

923

     

       

923

     

860

 

Redeemable non-controlling interests

   

344

     

       

344

     

344

 

Non-redeemable non-controlling interests

   

     

99

       

99

     

902

 

Total equity and redeemable non-controlling interests

 

4,599

     

1,114

       

5,713

     

7,242

 

Total equity attributable to common shareholders

   

4,255

     

1,015

       

5,270

     

5,996

 
 

Adjusted Book Value Summary

 

FNFV

September 30,
2017

 

FNFV

December 31,
2016

   

(Unaudited)

 

(Unaudited)

Ceridian/Fleetcor

   

$

400

     

$

386

 

American Blue Ribbon Holdings

   

157

     

173

 

One Digital

   

     

75

 

Del Frisco's Restaurant Group

   

17

     

49

 

Holding Company Cash

   

323

     

129

 

Other

   

118

     

104

 

     FNFV Book Value

   

$

1,015

     

$

916

 

     Outstanding FNFV shares

   

64.9

     

66.4

 

     FNFV Book Value per Share

   

$

15.65

     

$

13.78

 

 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

 
 

Three Months Ended

   

Nine Months Ended

 

September 30, 2017

   

September 30, 2017

 

Consolidated

 

Core

 

FNFV

   

Consolidated

 

Core

 

FNFV

Direct title premiums

$

558

   

$

558

   

$

     

$

1,598

   

$

1,598

   

$

 

Agency title premiums

719

   

719

   

     

2,028

   

2,028

   

 

     Total title premiums

1,277

   

1,277

   

     

3,626

   

3,626

   

 

Escrow, title-related and other fees

689

   

678

   

11

     

2,071

   

1,969

   

102

 

     Total title and escrow and other

1,966

   

1,955

   

11

     

5,697

   

5,595

   

102

 
                         

Restaurant revenue

269

   

   

269

     

830

   

   

830

 

Interest and investment income

34

   

32

   

2

     

97

   

93

   

4

 

Realized gains and losses, net

(4)

   

(1)

   

(3)

     

277

   

   

277

 

     Total revenue

2,265

   

1,986

   

279

     

6,901

   

5,688

   

1,213

 
                         

Personnel costs

646

   

627

   

19

     

1,958

   

1,822

   

136

 

Other operating expenses

468

   

443

   

25

     

1,392

   

1,312

   

80

 

Cost of restaurant revenue

243

   

   

243

     

728

   

   

728

 

Agent commissions

553

   

553

   

     

1,557

   

1,557

   

 

Depreciation and amortization

58

   

46

   

12

     

177

   

133

   

44

 

Title claim loss expense

64

   

64

   

     

181

   

181

   

 

Interest expense

12

   

11

   

1

     

47

   

39

   

8

 

     Total expenses

2,044

   

1,744

   

300

     

6,040

   

5,044

   

996

 
                         

Earnings (loss) from continuing operations before taxes

221

   

242

   

(21)

     

861

   

644

   

217

 

Income tax expense (benefit)

74

   

88

   

(14)

     

355

   

258

   

97

 

Earnings (loss) from continuing operations before equity investments

147

   

154

   

(7)

     

506

   

386

   

120

 

(Loss) earnings from equity investments

(3)

   

3

   

(6)

     

(7)

   

7

   

(14)

 

Net earnings (loss) from continuing operations

144

   

157

   

(13)

     

499

   

393

   

106

 

Earnings from discontinued operations, net of tax

31

   

31

   

     

59

   

59

   

 

Net earnings (loss)

175

   

188

   

(13)

     

558

   

452

   

106

 

Non-controlling interests

10

   

18

   

(8)

     

25

   

36

   

(11)

 

Net earnings (loss) attributable to common shareholders

$

165

   

$

170

   

$

(5)

     

$

533

   

$

416

   

$

117

 
                         

Cash flows provided by (used in) operations

274

   

302

   

(28)

     

566

   

691

   

(125)

 

 

 

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

 
 

Three Months Ended

   

Nine Months Ended

 

September 30, 2016

   

September 30, 2016

 

Consolidated

 

Core

 

FNFV

   

Consolidated

 

Core

 

FNFV

Direct title premiums

$

556

   

$

556

   

$

     

$

1,518

   

$

1,518

   

$

 

Agency title premiums

713

   

713

   

     

1,934

   

1,934

   

 

  Total title premiums

1,269

   

1,269

   

     

3,452

   

3,452

   

 

Escrow, title-related and other fees

700

   

654

   

46

     

1,920

   

1,796

   

124

 

     Total title and escrow and other

1,969

   

1,923

   

46

     

5,372

   

5,248

   

124

 
                         

Restaurant revenue

273

   

   

273

     

858

   

   

858

 

Interest and investment income

29

   

28

   

1

     

96

   

93

   

3

 

Realized gains and losses, net

(4)

   

(3)

   

(1)

     

5

   

(6)

   

11

 

     Total revenue

2,267

   

1,948

   

319

     

6,331

   

5,335

   

996

 
                         

Personnel costs

630

   

588

   

42

     

1,800

   

1,680

   

120

 

Other operating expenses

464

   

439

   

25

     

1,296

   

1,216

   

80

 

Cost of restaurant revenue

237

   

   

237

     

727

   

   

727

 

Agent commissions

545

   

545

   

     

1,473

   

1,473

   

 

Depreciation and amortization

56

   

41

   

15

     

161

   

116

   

45

 

Title claim loss expense

70

   

70

   

     

190

   

190

   

 

Interest expense

18

   

14

   

4

     

55

   

47

   

8

 

     Total expenses

2,020

   

1,697

   

323

     

5,702

   

4,722

   

980

 
                         

Earnings (loss) from continuing operations before taxes

247

   

251

   

(4)

     

629

   

613

   

16

 

Income tax expense (benefit)

88

   

95

   

(7)

     

218

   

223

   

(5)

 

Earnings from continuing operations before equity investments

159

   

156

   

3

     

411

   

390

   

21

 

(Loss) earnings from equity investments

(7)

   

4

   

(11)

     

(6)

   

10

   

(16)

 

Net earnings (loss) from continuing operations

152

   

160

   

(8)

     

405

   

400

   

5

 

Earnings from discontinued operations, net of tax

17

   

17

   

     

54

   

54

   

 

Net earnings (loss)

169

   

177

   

(8)

     

459

   

454

   

5

 

Non-controlling interests

13

   

14

   

(1)

     

32

   

31

   

1

 

Net earnings (loss) attributable to common shareholders

$

156

   

$

163

   

$

(7)

     

$

427

   

$

423

   

$

4

 
                         

Cash flows provided by operations

372

   

360

   

12

     

745

   

709

   

36

 

 

View original content:http://www.prnewswire.com/news-releases/fnfv-reports-third-quarter-2017-results-with-102-billion-book-value-of-portfolio-company-investments-or-1565-per-share-300543156.html

SOURCE Fidelity National Financial, Inc.

 

 

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