OREANDA-NEWS. October 28, 2015. Fidelity National Financial, Inc. today reported the operating results of FNF Group  (NYSE:FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and nine-month periods ended September 30, 2015.

  • Total revenue of approximately \\$2.0 billion in the third quarter versus \\$1.7 billion in the third quarter of 2014
  • Adjusted third quarter net earnings of \\$171 million versus adjusted net earnings of \\$144 million for the third quarter of 2014
  • Adjusted third quarter diluted EPS of \\$0.60 versus adjusted diluted EPS of \\$0.51 in the third quarter of 2014
  • Third quarter free cash flow provided of \\$231 million versus \\$281 million provided in the third quarter of 2014
  • Repurchased 2.35 million shares of FNF common stock for approximately \\$88 million in the third quarter

Title

  • Approximately \\$1.8 billion in total revenue, adjusted pre-tax earnings of \\$268 million and adjusted pre-tax title margin of 14.9% for the third quarter versus approximately \\$1.5 billion in total revenue, adjusted pre-tax earnings of \\$224 million and an adjusted pre-tax title margin of 14.8% in the third quarter of 2014
  • Adjusted pre-tax title margin of 14.9% was a 20 basis point improvement over the third quarter 2014 adjusted pre-tax title margin of 14.8%
  • Claims loss provision was reduced to 5.5% for the third quarter driven by significantly lower title loss payments related to policy years 2009-2014
  • ServiceLink generated \\$220 million in revenue, adjusted EBITDA of \\$30 million, an adjusted EBITDA margin of 14%, adjusted pre-tax earnings of \\$27 million and an adjusted pre-tax margin of 12% for the third quarter
  • Open orders per day of 8,031 for the third quarter versus 7,516 open orders per day for the third quarter of 2014
  • Closed orders per day of 5,906 for the third quarter versus 5,438 closed orders per day for the third quarter of 2014
  • Third quarter purchase orders opened and closed increased by 8% and 11%, respectively, versus the third quarter of 2014; purchase orders opened and closed increased by 9% and 11%, respectively, versus the third quarter of 2014, for FNTG only (excluding ServiceLink)
  • Total commercial revenue of \\$258 million, a 15% increase over total commercial revenue in the third quarter of 2014; third quarter national commercial title revenue of \\$146 million, a 7% increase from the third quarter of 2014, driven by a 13% improvement in the commercial fee per file and a 5% decrease in closed orders; open national commercial orders decreased by 2% over the prior year
  • Overall third quarter average fee per file of \\$2,133, a 3% increase versus the third quarter of 2014
  • Title claims paid of \\$70 million, a decrease of \\$11 million, or 14%, from the third quarter of 2014

Title Orders

Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% Purchase)

July 2015

176,000

61%

136,000

60%

August 2015

169,000

58%

120,000

60%

September 2015

169,000

55%

122,000

59%





Third Quarter 2015

514,000

58%

378,000

60%








Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% Purchase)

July 2014

170,000

60%

120,000

62%

August 2014

155,000

59%

115,000

62%

September 2014

156,000

60%

113,000

60%





Third Quarter 2014

481,000

60%

348,000

62%


* Includes an immaterial number of non-purchase and non-refinance orders

Open

Closed

Commercial




Commercial

Commercial

Revenue

Commercial

Orders*

Orders*

(In millions)

Fee

Per File*

Third Quarter 2015 - Total Commercial

50,300


33,000


\\$258


\\$7,800

Third Quarter 2014 - Total Commercial









\\$225


—














Third Quarter 2015 - National Commercial

21,000


12,200


\\$146


\\$12,000

Third Quarter 2014 - National Commercial

21,400


12,800


\\$136


\\$10,600


* Total commercial order and fee per file tracking began in January 2015

BKFS

  • Revenue of \\$234 million, led by Servicing Technology revenue of approximately \\$162 million
  • Revenue growth of 9% for the third quarter compared to the third quarter of 2014, led by strong growth in Data & Analytics and Origination Technology
  • Adjusted EBITDA of \\$105 million and adjusted EBITDA margin of 44.7%

"We generated a solid 14.9% adjusted pre-tax title margin this quarter, essentially at the lower end of our normalized title margin target range," said Chairman

William P. Foley, II.  "The commercial market remains very strong, the residential purchase market continues to steadily improve and the residential refinance market has been declining, although a recent drop in rates may provide a further period of improving refinance volumes.  We are pleased with our title margin performance this quarter, but to consistently reach and move higher in our 15%-20% normalized pre-tax title margin target range, we need to see continued improvement in the residential purchase market.  Additionally, as we enter the seasonally slower fourth quarter, our title margins will have to absorb the cost and more lengthy closing process resulting from the new TILA-RESPA closing disclosure requirements.

"Black Knight continues to meet and exceed our high expectations, generating 9% revenue growth, \\$105 million in adjusted EBITDA and a 44.7% adjusted EBITDA margin in the third quarter.  FNF's Black Knight ownership stake is currently worth approximately \\$2.9 billion, or approximately \\$10 per  FNF share, and we believe that a publicly-traded Black Knight will continue to be a source of value creation for FNF shareholders in the future." 

Conference Call
We will host a call with investors and analysts to discuss third quarter 2015 FNF Group results on Wednesday, October 28, 2015, beginning at 9:00 a.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 11:00 a.m. Eastern time on October 28, 2015, through November 4, 2015, by dialing 800-475-6701 (USA) or 320-365-3844 (International).  The access code will be 370124.

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. and Digital Insurance, 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 FNFV 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 GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Three Months Ended



September 30, 2015



Direct title premiums

\\$

524

\\$

524

\\$

—

\\$

—

Agency title premiums

647

647

—

—

Escrow, title related and other fees (1)

823

594

234

(5)

Total title and escrow

1,994

1,765

234

(5)









Interest and investment income

29

30

—

(1)

Realized gains and losses, net

—

1

—

(1)

Total revenue

2,023

1,796

234

(7)









Personnel costs

641

543

90

8

Agent commissions

495

495

—

—

Other operating expenses

452

413

41

(2)

Depreciation and amortization

85

36

48

1

Claim loss expense

65

65

—

—

Interest expense

31

—

16

15

Total expenses

1,769

1,552

195

22









Pre-tax earnings (loss) from continuing operations

\\$

254

\\$

244

\\$

39

\\$

(29)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

\\$

—

\\$

(1)

\\$

—

\\$

1

  Deferred revenue add back and management fee

3

1

2

—

  Purchase price amortization

47

24

23

—

 Total non-GAAP adjustments before taxes

\\$

50

\\$

24

\\$

25

\\$

1









  Adjusted pre-tax earnings (loss) from continuing ops.

\\$

304

\\$

268

\\$

64

\\$

(28)

  Adjusted pre-tax margin from continuing operations

15.0

%

14.9

%

27.1

%

—









Purchase price amortization

(47)

(24)

(23)

—

Depreciation and amortization

85

36

48

1

Interest expense

31

—

16

15









  Adjusted EBITDA

\\$

373

\\$

280

\\$

105

\\$

(12)

  Adjusted EBITDA margin

18.4

%

15.6

%

44.7

%

—









ServiceLink non-GAAP reconciliations:







ServiceLink pre-tax earnings

\\$

4






Depreciation and amortization

23






ServiceLink EBITDA

\\$

27






Management fee / other fees

3






ServiceLink Adjusted EBITDA

\\$

30















ServiceLink pre-tax earnings

\\$

4






Purchase price amortization

20






Management fee / other fees

3






ServiceLink adjusted pre-tax earnings

\\$

27







1. BKFS also reported adjusted revenue of \\$236 million, which includes \\$2 million of deferred revenue

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Three Months Ended



September 30, 2015



Pre-tax earnings (loss) from continuing operations

\\$

254

\\$

244

\\$

39

\\$

(29)

  Income tax expense (benefit)

95

89

17

(11)

  Earnings from equity investments

2

2

—

—

  Non-controlling interests

11

1

10

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

150

\\$

156

\\$

12

\\$

(18)









EPS attributable to FNF Group common shareholders - basic

\\$

0.54

\\$

0.56

\\$

0.04

\\$

(0.06)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.53

\\$

0.55

\\$

0.04

\\$

(0.06)









FNF Group weighted average shares - basic

277






FNF Group weighted average shares - diluted

285















Net earnings (loss) attributable to FNF Group common shareholders

\\$

150

\\$

156

\\$

12

\\$

(18)









 Total non-GAAP, pre-tax adjustments

50

24

25

1

  Noncontrolling interest on non-GAAP adjustments

(16)

(5)

(11)

—

  Income taxes on non-GAAP adjustments

(13)

(7)

(6)

—

Total non-GAAP adjustments

21

12

8

1









Adjusted net earnings (loss) attributable to FNF Group common shareholders

\\$

171

\\$

168

\\$

20

\\$

(17)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

0.60

\\$

0.59

\\$

0.07

\\$

(0.06)









Direct orders opened (000's)

514

514




Direct orders closed (000's)

378

378




Fee per file

\\$

2,133

\\$

2,133




Actual title claims paid

\\$

70

\\$

70













Cash flows provided by operations:

\\$

277






Non-GAAP adjustments:







  THL Management fee

1






Total non-GAAP adjustments

1















Adjusted cash flows from operations

278






Capital expenditures

47






Free cash flow

\\$

231






FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Three Months Ended



September 30, 2014



Direct title premiums

\\$

465

\\$

465

\\$

—

\\$

—

Agency title premiums

528

528

—

—

Escrow, title related and other fees

708

491

214

3

Total title and escrow

1,701

1,484

214

3









Interest and investment income

27

28

—

(1)

Realized gains and losses, net

(2)

(2)

—

—

Total revenue

1,726

1,510

214

2









Personnel costs

584

479

96

9

Agent commissions

396

396

—

—

Other operating expenses

390

349

38

3

Depreciation and amortization

84

35

48

1

Claim loss expense

59

59

—

—

Interest expense

32

—

8

24

Total expenses

1,545

1,318

190

37









Pre-tax earnings (loss) from continuing operations

\\$

181

\\$

192

\\$

24

\\$

(35)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

2

\\$

2

—

—

  Deferred revenue add back

2

—

2

—

Severance expense

4

3

1

—

  Synergy accrual

9

3

4

2

  Merger transaction costs

4

3

1

—

  Other legal matters

5

—

3

2

  Purchase price amortization

46

21

25

—

 Total non-GAAP adjustments before taxes

\\$

72

\\$

32

\\$

36

\\$

4









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

253

\\$

224

\\$

60

\\$

(31)

  Adjusted pre-tax margin from continuing operations

14.6

%

14.8

%

27.8

%

—









Purchase price amortization

(46)

(21)

(25)

—

Depreciation and amortization

84

35

48

1

Interest expense

32

—

8

24









  Adjusted EBITDA

\\$

323

\\$

238

\\$

91

\\$

(6)

  Adjusted EBITDA margin

18.7

%

15.7

%

42.1

%

—

FNF GROUP

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Three Months Ended



September 30, 2014



Pre-tax earnings (loss) from continuing operations

\\$

181

\\$

192

\\$

24

\\$

(35)









  Income tax expense

73

69

—

4

  Earnings from equity investments

1

1

—

—

  Non-controlling interests

(5)

(5)

—

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

114

\\$

129

\\$

24

\\$

(39)









EPS attributable to FNF Group common shareholders - basic

\\$

0.41

\\$

0.47

\\$

0.08

\\$

(0.14)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.40

\\$

0.46

\\$

0.08

\\$

(0.14)









FNF Group weighted average shares - basic

275






FNF Group weighted average shares - diluted

284















Net earnings (loss) attributable to FNF Group common shareholders

\\$

114

\\$

129

\\$

24

\\$

(39)









 Total non-GAAP, pre-tax adjustments

72

32

36

4

  Income taxes on non-GAAP adjustments

(18)

(8)

(9)

(1)

  Noncontrolling interest on non-GAAP adjustments

(24)

(11)

(13)

—

Total non-GAAP adjustments

30

13

14

3









Adjusted net earnings (loss) attributable to FNF Group common shareholders

\\$

144

\\$

142

\\$

38

\\$

(36)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

0.51

\\$

0.50

\\$

0.14

\\$

(0.13)









Direct orders opened (000's)

481

481




Direct orders closed (000's)

348

348




Fee per file

\\$

2,066

\\$

2,066




Actual title claims paid

\\$

81

\\$

81













Cash flows provided by operations:

\\$

292






Non-GAAP adjustments:







   Severance payments for LPS employees

4






   Synergy bonus payments

9






   THL Management Fee

1






   LPS merger transaction costs

3






   Other legal expenses

5






Total non-GAAP adjustments

22















Adjusted cash flows from operations

314






Capital expenditures

33






Free cash flow

\\$

281






FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Nine Months Ended



September 30, 2015



Direct title premiums

\\$

1,488

\\$

1,488

\\$

—

\\$

—

Agency title premiums

1,685

1,685

—

—

Escrow, title related and other fees

2,345

1,657

693

(5)

Total title and escrow

5,518

4,830

693

(5)









Interest and investment income

91

92



(1)

Realized gains and losses, net

(8)

2

(5)

(5)

Total revenue

5,601

4,924

688

(11)









Personnel costs

1,878

1,569

289

20

Agent commissions

1,279

1,279

—

—

Other operating expenses

1,277

1,154

119

4

Depreciation and amortization

255

110

143

2

Claim loss expense

185

185

—

—

Interest expense

91

—

35

56

Total expenses

4,965

4,297

586

82









Pre-tax earnings (loss) from continuing operations

\\$

636

\\$

627

\\$

102

\\$

(93)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

8

\\$

(2)

5

5

  Deferred revenue add back and management fee

10

2

8

—

  Purchase price amortization

137

70

67

—

  IPO costs & profits interest acceleration

10

—

10

—

 Total non-GAAP adjustments before taxes

\\$

165

\\$

70

\\$

90

\\$

5









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

801

\\$

697

\\$

192

\\$

(88)

  Adjusted pre-tax margin from continuing operations

14.3

%

14.2

%

27.4

%

—









Purchase price amortization

(137)

(70)

(67)

—

Depreciation and amortization

255

110

143

2

Interest expense

91

—

35

56









  Adjusted EBITDA

\\$

1,010

\\$

737

\\$

303

\\$

(30)

  Adjusted EBITDA margin

18.0

%

15.0

%

43.3

%

—

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Nine Months Ended



September 30, 2015



Pre-tax earnings (loss) from continuing operations

\\$

636

\\$

627

\\$

102

\\$

(93)









  Income tax expense

237

229

17

(9)

  Earnings from equity investments

4

4

—

—

  Non-controlling interests

7

(10)

17

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

396

\\$

412

\\$

68

\\$

(84)









EPS attributable to FNF Group common shareholders - basic

\\$

1.42

\\$

1.48

\\$

0.24

\\$

(0.30)

EPS attributable to FNF Group common shareholders - diluted

\\$

1.38

\\$

1.44

\\$

0.24

\\$

(0.30)









FNF Group weighted average shares - basic

278






FNF Group weighted average shares - diluted

286















Net earnings (loss) attributable to FNF Group common shareholders

\\$

396

\\$

412

\\$

68

\\$

(84)









 Total non-GAAP, pre-tax adjustments

165

70

90

5

  Income taxes on non-GAAP adjustments

(42)

(19)

(21)

(2)

  Noncontrolling interest on non-GAAP adjustments

(54)

(19)

(35)

—

Total non-GAAP adjustments

69

32

34

3









Adjusted net earnings attributable to FNF Group common shareholders

\\$

465

\\$

444

\\$

102

\\$

(81)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

1.63

\\$

1.55

\\$

0.36

\\$

(0.28)









Direct orders opened (000's)

1,651

1,651




Direct orders closed (000's)

1,132

1,132




Fee per file

\\$

2,003

\\$

2,003




Actual title claims paid

\\$

201

\\$

201













Cash flows provided by operations:

\\$

653






Non-GAAP adjustments:







  IPO Cost

4






  Management fee

3






Total non-GAAP adjustments

7















Adjusted cash flows from operations

660






Capital expenditures

127






Free cash flow

\\$

533






FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Nine Months Ended



September 30, 2014



Direct title premiums

\\$

1,249

\\$

1,249

\\$

—

\\$

—

Agency title premiums

1,450

1,450

—

—

Escrow, title related and other fees

2,015

1,394

632

(11)

Total title and escrow

4,714

4,093

632

(11)









Interest and investment income

88

89

—

(1)

Total revenue

4,802

4,182

632

(12)









Personnel costs

1,774

1,413

342

19

Agent commissions

1,098

1,098

—

—

Other operating expenses

1,186

1,040

159

(13)

Depreciation and amortization

253

109

142

2

Claim loss expense

169

169

—

—

Interest expense

93

—

23

70

Total expenses

4,573

3,829

666

78









Pre-tax earnings (loss) from continuing operations

\\$

229

\\$

353

\\$

(34)

\\$

(90)









Non-GAAP adjustments before taxes







  Deferred revenue add back

10

—

10

—

Severance expense

45

18

27

—

  Synergy accrual

67

28

28

11

  Merger transaction costs

56

32

50

(26)

  Premium tax settlement

(8)

(8)

—

—

  Other legal matters

21

—

11

10

  Purchase price amortization

137

64

73

—

 Total non-GAAP adjustments before taxes

\\$

328

\\$

134

\\$

199

\\$

(5)









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

557

\\$

487

\\$

165

\\$

(95)

  Adjusted pre-tax margin from continuing operations

11.6

%

11.6

%

25.7

%

—









Purchase price amortization

(137)

(64)

(73)

—

Depreciation and amortization

253

109

142

2

Interest expense

93

—

23

70









  Adjusted EBITDA

\\$

766

\\$

532

\\$

257

\\$

(23)

  Adjusted EBITDA margin

15.9

%

12.7

%

40.0

%

—

FNF GROUP

YTD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

Total FNF Group

Title

BKFS

FNF Group Corporate and Other

Nine Months Ended



September 30, 2014



Pre-tax earnings (loss) from continuing operations

\\$

229

\\$

353

\\$

(34)

\\$

(90)









  Income tax expense (benefit)

92

129

(11)

(26)

  Earnings from equity investments

3

3

—

—

  Loss from discontinued operations, net of tax

(1)

(1)

—

—

  Non-controlling interests

(76)

(40)

(36)

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

215

\\$

266

\\$

13

\\$

(64)









EPS attributable to Old FNF common shareholders - basic

\\$

0.37

\\$

0.50

\\$

(0.04)

\\$

(0.09)

EPS attributable to Old FNF common shareholders - diluted

\\$

0.36

\\$

0.49

\\$

(0.04)

\\$

(0.09)









EPS attributable to FNF Group common shareholders - basic

\\$

0.41

\\$

0.47

\\$

0.08

\\$

(0.14)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.40

\\$

0.46

\\$

0.08

\\$

(0.14)









Old FNF weighted average shares - basic

183






Old FNF weighted average shares - diluted

189















FNF Group weighted average shares - basic

92






FNF Group weighted average shares - diluted

94















Net earnings (loss) attributable to FNF common shareholders *

\\$

215

\\$

266

\\$

13

\\$

(64)









 Total non-GAAP, pre-tax adjustments

328

134

199

(5)

  Income taxes on non-GAAP adjustments

(79)

(32)

(49)

2

  Noncontrolling interest on non-GAAP adjustments

(119)

(49)

(70)

—

Total non-GAAP adjustments

130

53

80

(3)









Adjusted net earnings (loss) attributable to FNF common shareholders *

\\$

345

\\$

319

\\$

93

\\$

(67)

Adjusted EPS attributable to FNF common shareholders - diluted *

\\$

1.22

\\$

1.13

\\$

0.33

\\$

(0.24)

*Adjusted EPS is presented as Old FNF common shareholders and FNF Group common shareholders are combined.







Direct orders opened (000's)

1,463

1,463




Direct orders closed (000's)

985

985




Fee per file

\\$

1,974

\\$

1,974




Actual title claims paid

\\$

226

\\$

226















Cash flows provided by operations:

\\$

288






Non-GAAP adjustments:







  Transaction costs related to acquisition of LPS

52






  Severance costs related to acquisition of LPS

45






  Synergy bonus payment

67






  Premium tax settlement

(8)






  THL Management Fee

4






  Other legal matters

21






Total non-GAAP adjustments

181















Adjusted cash flows from operations

469






Capital expenditures

86






Free cash flow

\\$

383






FNF GROUP

QUARTERLY OPERATING STATISTICS

(Unaudited)

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Quarterly Open Orders ('000's except % data)

Total open orders*

514

560

578

452

481

514

469

391

Total open orders per day*

8.0

8.8

9.5

7.1

7.5

8.0

7.7

6.2

Purchase % of open orders

58

%

57

%

47

%

52

%

60

%

60

%

57

%

55

%

Refinance % of open orders

42

%

43

%

53

%

48

%

40

%

40

%

43

%

45

%

Total closed orders*

378

408

345

334

348

342

295

307

Total closed orders per day*

5.9

6.4

5.7

5.2

5.4

5.3

4.8

4.9

Purchase % of closed orders

60

%

54

%

46

%

57

%

62

%

61

%

52

%

56

%

Refinance % of closed orders

40

%

46

%

54

%

43

%

38

%

39

%

48

%

44

%















Commercial (millions, except orders in '000's)

Total commercial revenue**

\\$

258

\\$

258

\\$

208

\\$

274

\\$

225

\\$

183

175

—

Total commercial open orders**

50.3

50.8

47.8

—

—

—

—

—

Total commercial closed orders**

33.0

32.4

29.6

—

—

—

—

—

















National commercial revenue

\\$

146

\\$

150

\\$

119

\\$

166.3

\\$

136

\\$

115

\\$

104

\\$

146

National commercial open orders

21.0

21.2

20.4

18.1

21.4

22.2

19.6

19.3

National commercial closed orders

12.2

12.5

11.1

12.7

12.8

11.8

10.2

12.8

















Total Fee Per File

Fee per file

\\$

2,133

\\$

2,026

\\$

1,833

\\$

2,131

\\$

2,066

\\$

1,982

\\$

1,858

\\$

2,082

Residential and local commercial fee per file

\\$

1,805

\\$

1,711

\\$

1,538

\\$

1,699

\\$

1,739

\\$

1,750

\\$

1,559

\\$

1,676

Residential fee per file

\\$

1,589

\\$

1,514

\\$

1,346

\\$

—

\\$

—

\\$

—

\\$

—

\\$

—

Total commercial fee per file**

\\$

7,800

\\$

8,000

7,200

—

—

—

—

—

National commercial fee per file

\\$

12,000

\\$

12,000

\\$

10,700

\\$

13,100

\\$

10,600

\\$

9,800

\\$

10,200

\\$

11,400

















Total Staffing

Total field operations employees

11,000

10,900

10,400

9,900

10,200

10,200

10,300

9,900

















FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total open orders*

422

458

456

354

385

403

349

331

Total open orders per day*

6.6

7.2

7.5

5.6

6.0

6.3

5.7

5.3

Purchase % of open orders

65

%

65

%

54

%

60

%

69

%

71

%

71

%

65

%

Refinance % of open orders

35

%

35

%

46

%

40

%

31

%

29

%

29

%

35

%

Total closed orders*

314

334

277

273

282

272

219

263

Total closed orders per day*

4.9

5.2

4.5

4.3

4.4

4.3

3.6

4.2

Purchase % of closed orders

66

%

61

%

52

%

63

%

70

%

71

%

67

%

66

%

Refinance % of closed orders

34

%

39

%

48

%

37

%

30

%

29

%

33

%

34

%

Fee per file

2,364

2,264

2,055

2,382

2,306

2,227

2,151

2,260

Total tile field operations employees

9,700

9,600

9,100

8,700

8,900

8,700

8,600

8,900

















ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)

Total Open Orders*

92

102

122

98

96

111

120

60

Total open orders per day*

1.4

1.6

2.0

1.6

1.5

1.7

2.0

1.0

Purchase % of open orders

23

%

22

%

17

%

23

23

20

7

—

Refinance % of open orders

77

%

78

%

83

%

77

%

77

%

80

%

93

%

100

%

Total closed orders

64

74

68

61

66

70

76

44

Total closed orders per day*

1.0

1.2

1.1

1.0

1.0

1.1

1.2

0.7

Purchase % of closed orders

26

%

21

%

22

%

26

24

18

6

—

Refinance % of closed orders

74

%

79

%

78

%

74

%

76

%

82

%

94

%

100

%

Fee per file

987

958

921

1,027

1,052

1,038

1,009

1,013

Total ServiceLink operating employees

1,300

1,300

1,300

1,200

1,300

1,500

1,700

970

* Includes an immaterial number of non-purchase and non-refinance orders

** Total commercial order and fee per file tracking began in January 2015

FNF GROUP

SUMMARY BALANCE SHEET INFORMATION

(In millions)




FNF Group

September 30, 2015

FNF Group

December 31, 2014




(Unaudited)

(Unaudited)

Cash and investment portfolio





\\$

4,924


\\$

4,360

Goodwill





4,543


4,514

Title plant





394


393

Total assets





12,548


11,926

Notes payable





2,600


2,683

Reserve for title claim losses





1,605


1,621

Secured trust deposits





684


622

Redeemable non-controlling interests





344


715

Non-redeemable non-controlling interests





703


(58)

Total equity and redeemable non-controlling interests





5,825


5,272

Total equity attributable to common shareholders





4,778


4,615












FNF Group
September 30, 2015

FNFV

September 30, 2015

Consolidated

September 30, 2015

Consolidated

December 31, 2014

(Unaudited)

(Unaudited)

(Unaudited)


Cash and investment portfolio

\\$

4,924


\\$

781


\\$

5,705


\\$

5,369

Goodwill

4,543


188


4,731


4,721

Title plant

394


—


394


393

Total assets

12,548


1,488


14,036


13,845

Notes payable

2,600


211


2,811


2,803

Reserve for title claim losses

1,605


—


1,605


1,621

Secured trust deposits

684


—


684


622

Redeemable non-controlling interests

344


—


344


715

Non-redeemable non-controlling interests

703


111


814


79

Total equity and redeemable non-controlling interests

5,825


1,124


6,949


6,788

Total equity attributable to common shareholders

4,778


1,013


5,791


5,994

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)



Three Months Ended

Nine Months Ended

September 30, 2015

September 30, 2015

Consolidated

Core

FNFV

Consolidated

Core

FNFV

Direct title premiums

\\$

524

\\$

524

\\$

—


\\$

1,488

\\$

1,488

\\$

—

Agency title premiums

647

647

—


1,685

1,685

—

     Total title premiums

1,171

1,171

—


3,173

3,173

—

Escrow, title-related and other fees

852

823

29


2,517

2,345

172

     Total title and escrow and other

2,023

1,994

29


5,690

5,518

172













Restaurant revenue

349

—

349


1,084

—

1,084

Interest and investment income

30

29

1


93

91

2

Realized gains and losses, net

(10)

—

(10)


(19)

(8)

(11)

     Total revenue

2,392

2,023

369


6,848

5,601

1,247













Personnel costs

680

641

39


1,993

1,878

115

Other operating expenses

476

452

24


1,424

1,277

147

Cost of restaurant revenue

302

—

302


921

—

921

Agent commissions

495

495

—


1,279

1,279

—

Depreciation and amortization

102

85

17


306

255

51

Title claim loss expense

65

65

—


185

185

—

Interest expense

34

31

3


97

91

6

     Total expenses

2,154

1,769

385


6,205

4,965

1,240













Earnings (loss) from continuing operations before taxes

238

254

(16)


643

636

7

Income tax expense (benefit)

81

95

(14)


219

237

(18)

Earnings (loss) from continuing operations before equity investments

157

159

(2)


424

399

25

(Loss) earnings from equity investments

(19)

2

(21)


(16)

4

(20)

Net earnings (loss)

138

161

(23)


408

403

5

Non-controlling interests

6

11

(5)


20

7

13

Net earnings (loss) attributable to common shareholders

\\$

132

\\$

150

\\$

(18)


\\$

388

\\$

396

\\$

(8)













Cash flows provided by operations

280

277

3


660

653

7

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30, 2014

September 30, 2014

Consolidated

Core

FNFV

Consolidated

Core

FNFV

Direct title premiums

\\$

465

\\$

465

\\$

—


\\$

1,249

\\$

1,249

\\$

—

Agency title premiums

528

528

—


1,450

1,450

—

     Total title premiums

993

993

—


2,699

2,699

—

Escrow, title-related and other fees

736

708

28


2,097

2,015

82

     Total title and escrow and other

1,729

1,701

28


4,796

4,714

82













Restaurant revenue

343

—

343


1,055

—

1,055

Interest and investment income

28

27

1


93

88

5

Realized gains and losses, net

(7)

(2)

(5)


(6)

—

(6)

     Total revenue

2,093

1,726

367


5,938

4,802

1,136













Personnel costs

626

584

42


1,888

1,774

114

Other operating expenses

411

390

21


1,247

1,186

61

Cost of restaurant revenue

296

—

296


899

—

899

Agent commissions

396

396

—


1,098

1,098

—

Depreciation and amortization

101

84

17


302

253

49

Title claim loss expense

59

59

—


169

169

—

Interest expense

32

32

—


96

93

3

     Total expenses

1,921

1,545

376


5,699

4,573

1,126













Earnings (loss) from continuing operations before taxes

172

181

(9)


239

229

10

Income tax expense (benefit)

65

73

(8)


79

92

(13)

Earnings from continuing operations before equity investments

107

108

(1)


160

137

23

(Loss) earnings from equity investments

(7)

1

(8)


(43)

3

(46)

Net earnings (loss) from continuing operations

100

109

(9)


117

140

(23)

Loss from discontinued operations, net of tax

(13)

—

(13)


(1)

(1)

—

Net earnings (loss)

87

109

(22)


116

139

(23)

Non-controlling interests

(15)

(5)

(10)


(75)

(76)

1

Net earnings (loss) attributable to common shareholders

\\$

102

\\$

114

\\$

(12)


\\$

191

\\$

215

\\$

(24)













Cash flows provided by operations

300

292

8


289

288

1