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.