OREANDA-NEWS. February 12, 2016. 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 twelve-month periods ended December 31, 2015.

  • Total revenue of approximately \\$1.9 billion in the fourth quarter versus \\$1.7 billion in the fourth quarter of 2014
  • Adjusted fourth quarter net earnings of \\$155 million versus adjusted net earnings of \\$144 million for the fourth quarter of 2014
  • Adjusted fourth quarter diluted EPS of \\$0.55 versus adjusted diluted EPS of \\$0.50 in the fourth quarter of 2014
  • Fourth quarter free cash flow provided of \\$184 million versus \\$167 million provided in the fourth quarter of 2014
  • Repurchased 2.4 million shares of FNF common stock for approximately \\$85 million in the fourth quarter; for the full-year 2015, repurchased 5.9 million shares for approximately \\$214 million

Title

  • Approximately \\$1.6 billion in total revenue, adjusted pre-tax earnings of \\$225 million and adjusted pre-tax title margin of 13.8% for the fourth quarter versus approximately \\$1.5 billion in total revenue, adjusted pre-tax earnings of \\$217 million and an adjusted pre-tax title margin of 14.8% in the fourth quarter of 2014
  • Adjusted pre-tax title margin of 13.8% was a 100 basis point decline from the fourth quarter 2014 adjusted pre-tax title margin of 14.8%
  • ServiceLink generated \\$198 million in revenue, adjusted EBITDA of \\$25 million, an adjusted EBITDA margin of 13%, adjusted pre-tax earnings of \\$21 million and an adjusted pre-tax margin of 11% for the fourth quarter
  • Open orders per day of 7,000 for the fourth quarter versus 7,175 open orders per day for the fourth quarter of 2014
  • Closed orders per day of 5,413 for the fourth quarter versus 5,302 closed orders per day for the fourth quarter of 2014
  • Fourth quarter purchase orders opened and closed increased by 6% and 9%, respectively, versus the fourth quarter of 2014; for FNTG only (excluding ServiceLink), purchase orders opened and closed both increased by 9% versus the fourth quarter of 2014
  • Total commercial revenue of \\$303 million, a 11% increase over total commercial revenue in the fourth quarter of 2014; fourth quarter national commercial title revenue of \\$183 million, a 10% increase from the fourth quarter of 2014, driven by a 4% improvement in the commercial fee per file and a 6% increase in closed orders; open national commercial orders were essentially flat with the prior year
  • Overall fourth quarter average fee per file of \\$2,272, a 7% increase versus the fourth quarter of 2014
  • Title claims paid of \\$84 million, an increase of \\$8 million, or 11%, from the fourth quarter of 2014

Title Orders

Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% Purchase)

October 2015

167,000

55%

120,000

58%

November 2015

140,000

56%

102,000

57%

December 2015

134,000

54%

119,000

59%





Fourth Quarter 2015

441,000

55%

341,000

58%







Direct Orders Opened *

Direct Orders Closed *

Month

 / (% Purchase)

 / (% Purchase)

October 2014

176,000

53%

115,000

60%

November 2014

133,000

52%

97,000

56%

December 2014

143,000

51%

122,000

54%





Fourth Quarter 2014

452,000

52%

334,000

57%






* 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*

Fourth Quarter 2015 - Total Commercial

46,300


36,300


\\$303


\\$8,300

Fourth Quarter 2014 - Total Commercial

—


—


\\$274


—














Fourth Quarter 2015 - National Commercial

18,100


13,400


\\$183


\\$13,600

Fourth Quarter 2014 - National Commercial

18,100


12,700


\\$166


\\$13,100

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

BKFS

  • Revenue of \\$238 million, led by Servicing Technology revenue of approximately \\$162 million
  • Revenue growth of 8% for the fourth quarter compared to the fourth quarter of 2014, led by strong growth in Closing Insight and Loan Origination Systems
  • Adjusted EBITDA of \\$106 million and adjusted EBITDA margin of 44.9%

"This quarter was a strong finish to another successful year for FNF," said Chairman

William P. Foley, II.  "We generated a 13.8% adjusted pre-tax title margin this quarter and a 14.3% adjusted pre-tax title margin for the full-year 2015.  The commercial market remains very strong, with record fourth quarter total commercial revenue of more than \\$300 million and full-year 2015 total commercial revenue of more than \\$1 billion.  Our open and closed purchase orders, excluding ServiceLink, both grew by 9% in the fourth quarter and for the full-year 2015, open and closed purchase orders grew by 8% and 9%, respectively.  Refinance activity declined somewhat throughout the fourth quarter, although with the recent market volatility and decline in rates, refinance volumes have the potential to be more stable than most would have expected as we head into 2016.  If we continue to see a strong commercial market, further growth in the purchase market and some level of stability from the refinance market, we believe we can generate an adjusted pre-tax title margin above 15% in 2016.

"Black Knight continued its strong financial performance this quarter, generating 8% revenue growth, \\$106 million in adjusted EBITDA and a 44.9% adjusted EBITDA margin in the fourth quarter.  For the full-year, Black Knight generated revenue growth of 9%, adjusted EBITDA of \\$409 million and an adjusted EBITDA margin of 44%.  FNF's Black Knight ownership stake is currently worth approximately \\$2.3 billion, or approximately \\$8 per FNF share.  Black Knight's business fundamentals remain strong and we firmly believe that its high single-digit organic revenue growth rate, mid-40's EBITDA margins and predictability of earnings will allow Black Knight to continue to generate value for both its shareholders and FNF shareholders." 

Conference Call
We will host a call with investors and analysts to discuss fourth quarter 2015 FNF Group results on Thursday, February 11, 2016, beginning at 11:00 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 1:00 p.m. Eastern time on February 11, 2016, through February 18, 2016, by dialing 800-475-6701 ( USA) or 320-365-3844 (International).  The access code will be 383828.

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., 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), 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-E

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

 (Unaudited)






FNF Group

Corporate 

and Other

Total FNF

Group

Title

BKFS

Three Months Ended



December 31, 2015



Direct title premiums

\\$

521

\\$

521

\\$

—

\\$

—

Agency title premiums

592

592

—

—

Escrow, title related and other fees (1)

776

483

238

55

Total title and escrow

1,889

1,596

238

55









Interest and investment income

30

31

—

(1)

Realized gains and losses, net

14

14

—

—

Total revenue

1,933

1,641

238

54









Personnel costs

636

531

93

12

Agent commissions

452

452

—

—

Other operating expenses

437

345

42

50

Depreciation and amortization

90

36

51

3

Claim loss expense

61

61

—

—

Interest expense

31

—

15

16

Total expenses

1,707

1,425

201

81









Pre-tax earnings (loss) from continuing operations

\\$

226

\\$

216

\\$

37

\\$

(27)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

\\$

(14)

\\$

(14)

\\$

—

\\$

—

  Deferred revenue add back and management fee

3

—

3

—

  Purchase price amortization

46

23

23

—

 Total non-GAAP adjustments before taxes

\\$

35

\\$

9

\\$

26

\\$

—









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

\\$

261

\\$

225

\\$

63

\\$

(27)

  Adjusted pre-tax margin from continuing operations

13.6

%

13.8

%

26.1

%

—









Purchase price amortization

(46)

(23)

(23)

—

Depreciation and amortization

90

36

51

3

Interest expense

31

—

15

16









  Adjusted EBITDA

\\$

336

\\$

238

\\$

106

\\$

(8)

  Adjusted EBITDA margin

17.5

%

14.6

%

44.9

%

—









ServiceLink non-GAAP reconciliations:







ServiceLink pre-tax loss

\\$

(5)






Depreciation and amortization

23






ServiceLink EBITDA

18






Management fee / other expenses

7






ServiceLink Adjusted EBITDA

\\$

25















ServiceLink pre-tax loss

\\$

(5)






Purchase price amortization

19






Management fee / other expenses

7






ServiceLink adjusted pre-tax earnings

\\$

21

















1.    BKFS also reported adjusted revenue of \\$240 million, which includes \\$2 million of deferred revenue

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF

Group

Title

BKFS

FNF Group

Corporate

 and Other

Three Months Ended



December 31, 2015



Pre-tax earnings (loss) from continuing operations

\\$

226

\\$

216

\\$

37

\\$

(27)

  Income tax expense (benefit)

73

79

18

(24)

  Earnings from equity investments

2

2

—

—

  Non-controlling interests

11

1

11

(1)









Net earnings (loss) attributable to FNF Group common shareholders

\\$

144

\\$

138

\\$

8

\\$

(2)









EPS attributable to FNF Group common shareholders - basic

\\$

0.52

\\$

0.50

\\$

0.03

\\$

(0.01)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.51

\\$

0.49

\\$

0.03

\\$

(0.01)









FNF Group weighted average shares - basic

275






FNF Group weighted average shares - diluted

283















Net earnings (loss) attributable to FNF Group common shareholders

\\$

144

\\$

138

\\$

8

\\$

(2)









 Total non-GAAP, pre-tax adjustments

35

9

26

—

  Noncontrolling interest on non-GAAP adjustments

(17)

(4)

(13)

—

  Income taxes on non-GAAP adjustments

(7)

(2)

(5)

—

Total non-GAAP adjustments

11

3

8

—









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

\\$

155

\\$

141

\\$

16

\\$

(2)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

0.55

\\$

0.50

\\$

0.06

\\$

(0.01)









Direct orders opened (000's)

441

441




Direct orders closed (000's)

341

341




Fee per file

\\$

2,272

\\$

2,272




Actual title claims paid

\\$

84

\\$

84













Cash flows provided by operations:

\\$

236















Capital expenditures

52






Free cash flow

\\$

184






FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF

Group

Title

BKFS

FNF Group

Corporate

and Other

Three Months Ended



December 31, 2014



Direct title premiums

\\$

478

\\$

478

\\$

—

\\$

—

Agency title premiums

494

494

—

—

Escrow, title related and other fees

679

461

220

(2)

Total title and escrow

1,651

1,433

220

(2)









Interest and investment income

33

33

—

—

Realized gains and losses, net

4

(4)

—

8

Total revenue

1,688

1,462

220

6









Personnel costs

596

483

107

6

Agent commissions

373

373

—

—

Other operating expenses

371

330

40

1

Depreciation and amortization

83

36

46

1

Claim loss expense

59

59

—

—

Interest expense

29

—

8

21

Total expenses

1,511

1,281

201

29









Pre-tax earnings (loss) from continuing operations

\\$

177

\\$

181

\\$

19

\\$

(23)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

(4)

\\$

4

—

(8)

  Deferred revenue add back

3

—

3

—

Severance expense

2

2

—

—

  Synergy accrual

6

2

3

1

  Merger transaction costs

6

3

3

—

  Premium tax settlement

—

—

—

—

  Other legal matters

2

1

1

—

  Purchase price amortization

46

24

22

—

  Payroll Accrual

3

—

3

—

 Total non-GAAP adjustments before taxes

\\$

64

\\$

36

\\$

35

\\$

(7)









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

241

\\$

217

\\$

54

\\$

(30)

  Adjusted pre-tax margin from continuing operations

14.3

%

14.8

%

24.2

%

—









Purchase price amortization

(46)

(24)

(22)

—

Depreciation and amortization

83

36

46

1

Interest expense

29

—

8

21









  Adjusted EBITDA

\\$

307

\\$

229

\\$

86

\\$

(8)

  Adjusted EBITDA margin

18.2

%

15.6

%

38.6

%

—

FNF GROUP

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF

Group

Title

BKFS

FNF Group 

Corporate

and Other

Three Months Ended



December 31, 2014



Pre-tax earnings (loss) from continuing operations

\\$

177

\\$

181

\\$

19

\\$

(23)









  Income tax expense

70

63

4

3

  Earnings from equity investments

1

1

—

—

  Non-controlling interests

8

(2)

10

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

100

\\$

121

\\$

5

\\$

(26)









EPS attributable to FNF Group common shareholders - basic

\\$

0.36

\\$

0.44

\\$

0.02

\\$

(0.09)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.35

\\$

0.42

\\$

0.02

\\$

(0.09)









FNF Group weighted average shares - basic

276






FNF Group weighted average shares - diluted

286















Net earnings (loss) attributable to FNF Group common shareholders

\\$

100

\\$

121

\\$

5

\\$

(26)









 Total non-GAAP, pre-tax adjustments

64

36

35

(7)

  Income taxes on non-GAAP adjustments

(16)

(10)

(9)

3

  Noncontrolling interest on non-GAAP adjustments

(4)

(5)

1

—

Total non-GAAP adjustments

44

21

27

(4)









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

\\$

144

\\$

142

\\$

32

\\$

(30)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

0.50

\\$

0.50

\\$

0.11

\\$

(0.10)









Direct orders opened (000's)

452

452




Direct orders closed (000's)

334

334




Fee per file

\\$

2,131

\\$

2,131




Actual title claims paid

\\$

76

\\$

76













Cash flows provided by operations:

\\$

186






Non-GAAP adjustments:







   LPS merger transaction costs

8






   Other legal expenses

11






Total non-GAAP adjustments

19















Adjusted cash flows from operations

205






Capital expenditures

38






Free cash flow

\\$

167






FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









 

Total FNF

Group

 

Title

 

BKFS

FNF Group

Corporate

and Other

Twelve Months Ended



December 31, 2015



Direct title premiums

\\$

2,009

\\$

2,009

\\$

—

\\$

—

Agency title premiums

2,277

2,277

—

—

Escrow, title related and other fees (1)

3,121

2,005

931

185

Total title and escrow

7,407

6,291

931

185









Interest and investment income

121

123

—

(2)

Realized gains and losses, net

6

14

(5)

(3)

Total revenue

7,534

6,428

926

180









Personnel costs

2,514

2,090

382

42

Agent commissions

1,731

1,731

—

—

Other operating expenses

1,714

1,381

161

172

Depreciation and amortization

345

144

194

7

Claim loss expense

246

246

—

—

Interest expense

122

—

50

72

Total expenses

6,672

5,592

787

293









Pre-tax earnings (loss) from continuing operations

\\$

862

\\$

836

\\$

139

\\$

(113)









Non-GAAP adjustments before taxes







  Realized (gains) and losses, net

(6)

\\$

(14)

5

3

  Deferred revenue add back and management fee

13

2

11

—

  Purchase price amortization

183

92

90

1

  IPO costs & profits interest acceleration

10

—

10

—

 Total non-GAAP adjustments before taxes

\\$

200

\\$

80

\\$

116

\\$

4









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

1,062

\\$

916

\\$

255

\\$

(109)

  Adjusted pre-tax margin from continuing operations

14.1

%

14.3

%

27.1

%

—









Purchase price amortization

(183)

(92)

(90)

(1)

Depreciation and amortization

345

144

194

7

Interest expense

122

—

50

72









  Adjusted EBITDA

\\$

1,346

\\$

968

\\$

409

\\$

(31)

  Adjusted EBITDA margin

17.9

%

15.1

%

44.0

%

—













1.         BKFS also reported adjusted revenue of \\$940 million, which includes \\$9 million of deferred revenue

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF

Group

Title

BKFS

FNF Group

Corporate

and Other

Twelve Months Ended



December 31, 2015



Pre-tax earnings (loss) from continuing operations

\\$

862

\\$

836

\\$

139

\\$

(113)









  Income tax expense (benefit)

310

305

35

(30)

  Earnings from equity investments

6

6

—

—

  Non-controlling interests

18

(10)

28

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

540

\\$

547

\\$

76

\\$

(83)









EPS attributable to FNF Group common shareholders - basic

\\$

1.95

\\$

1.97

\\$

0.27

\\$

(0.29)

EPS attributable to FNF Group common shareholders - diluted

\\$

1.89

\\$

1.91

\\$

0.27

\\$

(0.29)









FNF Group weighted average shares - basic

277






FNF Group weighted average shares - diluted

286















Net earnings (loss) attributable to FNF Group common shareholders

\\$

540

\\$

547

\\$

76

\\$

(83)









 Total non-GAAP, pre-tax adjustments

200

80

116

4

  Income taxes on non-GAAP adjustments

(50)

(22)

(26)

(2)

  Noncontrolling interest on non-GAAP adjustments

(71)

(23)

(48)

—

Total non-GAAP adjustments

79

35

42

2









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

\\$

619

\\$

582

\\$

118

\\$

(81)









Adjusted EPS attributable to FNF Group common shareholders - diluted

\\$

2.16

\\$

2.03

\\$

0.41

\\$

(0.28)









Direct orders opened (000's)

2,092

2,092




Direct orders closed (000's)

1,472

1,472




Fee per file

\\$

2,065

\\$

2,065




Actual title claims paid

\\$

285

\\$

285













Cash flows provided by operations:

\\$

888






Non-GAAP adjustments:







  IPO Cost

4






  Management fee

3






Total non-GAAP adjustments

7















Adjusted cash flows from operations

895






Capital expenditures

179






Free cash flow

\\$

716






FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF Group

Title

BKFS

FNF Group Corporate
and Other

Twelve Months Ended



December 31, 2014



Direct title premiums

\\$

1,727

\\$

1,727

\\$

—

\\$

—

Agency title premiums

1,944

1,944

—

—

Escrow, title related and other fees

2,694

1,855

852

(13)

Total title and escrow

6,365

5,526

852

(13)









Interest and investment income

121

122

—

(1)

Realized gains and losses, net

4

(4)

—

8

Total revenue

6,490

5,644

852

(6)









Personnel costs

2,370

1,896

449

25

Agent commissions

1,471

1,471

—

—

Other operating expenses

1,557

1,370

199

(12)

Depreciation and amortization

336

145

188

3

Claim loss expense

228

228

—

—

Interest expense

122

—

31

91

Total expenses

6,084

5,110

867

107









Pre-tax earnings (loss) from continuing operations

\\$

406

\\$

534

\\$

(15)

\\$

(113)









Non-GAAP adjustments before taxes







  Realized (gain) loss, net adjustment

(4)

4

—

(8)

  Deferred revenue add back

13

—

13

—

Severance expense

47

20

27

—

  Synergy accrual

73

30

31

12

  Merger transaction costs

62

35

53

(26)

  Premium tax settlement

(8)

(8)

—

—

  Other legal matters

23

1

12

10

  Purchase price amortization

183

88

95

—

  Payroll Accrual

3

—

3

—

 Total non-GAAP adjustments before taxes

\\$

392

\\$

170

\\$

234

\\$

(12)









  Adjusted pre-tax earnings (loss) from continuing operations

\\$

798

\\$

704

\\$

219

\\$

(125)

  Adjusted pre-tax margin from continuing operations

12.3

%

12.5

%

25.3

%

—









Purchase price amortization

(183)

(88)

(95)

—

Depreciation and amortization

336

145

188

3

Interest expense

122

—

31

91









  Adjusted EBITDA

\\$

1,073

\\$

761

\\$

343

\\$

(31)

  Adjusted EBITDA margin

16.5

%

13.5

%

39.7

%

—

FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)









Total FNF Group

Title

BKFS

FNF Group Corporate
and Other

Twelve Months Ended



December 31, 2014



Pre-tax earnings (loss) from continuing operations

\\$

406

\\$

534

\\$

(15)

\\$

(113)









  Income tax expense (benefit)

162

192

(7)

(23)

  Earnings from equity investments

4

4

—

—

  Loss from discontinued operations, net of tax

(1)

(1)

—

—

  Non-controlling interests

(68)

(42)

(26)

—









Net earnings (loss) attributable to FNF Group common shareholders

\\$

315

\\$

387

\\$

18

\\$

(90)









EPS attributable to Old FNF common shareholders - basic

\\$

0.37

\\$

0.52

\\$

(0.07)

\\$

(0.08)

EPS attributable to Old FNF common shareholders - diluted

\\$

0.37

\\$

0.52

\\$

(0.07)

\\$

(0.08)









EPS attributable to FNF Group common shareholders - basic

\\$

0.77

\\$

0.88

\\$

0.13

\\$

(0.24)

EPS attributable to FNF Group common shareholders - diluted

\\$

0.75

\\$

0.86

\\$

0.13

\\$

(0.24)









Old FNF weighted average shares - basic

138






Old FNF weighted average shares - diluted

142















FNF Group weighted average shares - basic

138






FNF Group weighted average shares - diluted

142















Net earnings (loss) attributable to FNF common shareholders *

\\$

315

\\$

387

\\$

18

\\$

(90)









 Total non-GAAP, pre-tax adjustments

392

170

234

(12)

  Income taxes on non-GAAP adjustments

(95)

(42)

(58)

5

  Noncontrolling interest on non-GAAP adjustments

(123)

(54)

(69)

—

Total non-GAAP adjustments

174

74

107

(7)









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

\\$

489

\\$

461

\\$

125

\\$

(97)

Adjusted EPS attributable to FNF common shareholders - diluted *

\\$

1.72

\\$

1.62

\\$

0.44

\\$

(0.34)

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







Direct orders opened (000's)

1,914

1,914




Direct orders closed (000's)

1,319

1,319




Fee per file

\\$

2,014

\\$

2,014




Actual title claims paid

\\$

302

\\$

302




FNF GROUP

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)







(Continued)

Total FNF
Group

Title

BKFS

FNF Group
Corporate
and Other

Twelve Months Ended



December 31, 2014












Cash flows provided by operations:

\\$

475






Non-GAAP adjustments:







  Transaction costs related to acquisition of LPS

54






  Severance costs related to acquisition of LPS

47






  Synergy bonus payment

67






  Premium tax settlement

15






  Other legal matters

8






Total non-GAAP adjustments

191















Adjusted cash flows from operations

666






Capital expenditures

124






Free cash flow

\\$

542






FNF GROUP

QUARTERLY OPERATING STATISTICS

(Unaudited)

















Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

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

Total open orders*

441

514

560

578

452

481

514

469

Total open orders per day*

7.0

8.0

8.8

9.5

7.1

7.5

8.0

7.7

Purchase % of open orders

55

%

58

%

57

%

47

%

52

%

60

%

60

%

57

%

Refinance % of open orders

45

%

42

%

43

%

53

%

48

%

40

%

40

%

43

%

Total closed orders*

341

378

408

345

334

348

342

295

Total closed orders per day*

5.4

5.9

6.4

5.7

5.3

5.4

5.3

4.8

Purchase % of closed orders

58

%

60

%

54

%

46

%

57

%

62

%

61

%

52

%

Refinance % of closed orders

42

%

40

%

46

%

54

%

43

%

38

%

39

%

48

%















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

Total commercial revenue**

\\$

303

\\$

258

\\$

258

\\$

208

\\$

274

\\$

225

\\$

183

\\$

175

Total commercial open orders**

46.3

50.3

50.8

47.8

—

—

—

—

Total commercial closed orders**

36.3

33.0

32.4

29.6

—

—

—

—

















National commercial revenue

\\$

183

\\$

146

\\$

150

\\$

119

\\$

166

\\$

136

\\$

115

\\$

104

National commercial open orders

18.1

21.0

21.2

20.4

18.1

21.4

22.2

19.6

National commercial closed orders

13.4

12.2

12.5

11.1

12.7

12.8

11.8

10.2

















Total

Fee Per File

Fee per file

\\$

2,272

\\$

2,133

\\$

2,026

\\$

1,833

\\$

2,131

\\$

2,066

\\$

1,982

\\$

1,858

Residential and local commercial fee per file

\\$

1,806

\\$

1,805

\\$

1,711

\\$

1,538

\\$

1,699

\\$

1,739

\\$

1,750

\\$

1,559

Residential fee per file

\\$

1,548

\\$

1,589

\\$

1,514

\\$

1,346

—

—

—

—

Total commercial fee per file**

\\$

8,300

\\$

7,800

\\$

8,000

\\$

7,200

—

—

—

—

National commercial fee per file

\\$

13,600

\\$

12,000

\\$

12,000

\\$

10,700

\\$

13,100

\\$

10,600

\\$

9,800

\\$

10,200

















Total Staffing

Total field operations employees

10,700

11,000

10,900

10,400

9,900

10,200

10,200

10,300

















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

Total open orders*

360

422

458

456

354

385

403

349

Total open orders per day*

5.7

6.6

7.2

7.5

5.6

6.0

6.3

5.7

Purchase % of open orders

62

%

65

%

65

%

54

%

60

%

69

%

71

%

71

%

Refinance % of open orders

38

%

35

%

35

%

46

%

40

%

31

%

29

%

29

%

Total closed orders*

285

314

334

277

273

282

272

219

Total closed orders per day*

4.5

4.9

5.2

4.5

4.3

4.4

4.3

3.6

Purchase % of closed orders

63

%

66

%

61

%

52

%

63

%

70

%

71

%

67

%

Refinance % of closed orders

37

%

34

%

39

%

48

%

37

%

30

%

29

%

33

%

Fee per file

\\$

2,521

\\$

2,364

\\$

2,264

\\$

2,055

\\$

2,382

\\$

2,306

\\$

2,227

\\$

2,151

Total tile field operations employees

9,500

9,700

9,600

9,100

8,700

8,900

8,700

8,600

















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

Total Open Orders*

81

92

102

122

98

96

111

120

Total open orders per day*

1.3

1.4

1.6

2.0

1.6

1.5

1.7

2.0

Purchase % of open orders

22

%

23

%

22

%

17

23

23

20

7

Refinance % of open orders

78

%

77

%

78

%

83

%

77

%

77

%

80

%

93

%

Total closed orders

56

64

74

68

61

66

70

76

Total closed orders per day*

0.9

1.0

1.2

1.1

1.0

1.0

1.1

1.2

Purchase % of closed orders

31

%

26

%

21

%

22

26

24

18

6

Refinance % of closed orders

69

%

74

%

79

%

78

%

74

%

76

%

82

%

94

%

Fee per file

\\$

1,003

\\$

987

\\$

958

\\$

921

\\$

1,027

\\$

1,052

\\$

1,038

\\$

1,009

Total ServiceLink operating employees

1,200

1,300

1,300

1,300

1,200

1,300

1,500

1,700

* 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

December 31, 2015

FNF Group

December 31, 2014










(Unaudited)

(Unaudited)

Cash and investment portfolio











\\$

4,898


\\$

4,360

Goodwill











4,572


4,514

Title plant











395


393

Total assets











12,502


11,926

Notes payable











2,593


2,683

Reserve for title claim losses











1,583


1,621

Secured trust deposits











701


622

Redeemable non-controlling interests











344


715

Non-redeemable non-controlling interests











720


(58)

Total equity and redeemable non-controlling interests











5,849


5,272

Total equity attributable to common shareholders











4,785


4,615




















FNF Group
December 31, 2015

FNFV

December 31, 2015

Consolidated

December 31, 2015

Consolidated

December 31, 2014

(Unaudited)

(Unaudited)

(Unaudited)


Cash and investment portfolio

\\$

4,898


\\$

735


\\$

5,633


\\$

5,369

Goodwill

4,572


188


4,760


4,721

Title plant

395


—


395


393

Total assets

12,502


1,429


13,931


13,845

Notes payable

2,593


200


2,793


2,803

Reserve for title claim losses

1,583


—


1,583


1,621

Secured trust deposits

701


—


701


622

Redeemable non-controlling interests

344


—


344


715

Non-redeemable non-controlling interests

720


114


834


79

Total equity and redeemable non-controlling interests

5,849


1,083


6,932


6,788

Total equity attributable to common shareholders

4,785


969


5,754


5,994

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited) 




Three Months Ended

Twelve Months Ended

December 31, 2015

December 31, 2015

Consolidated

Core

FNFV

Consolidated

Core

FNFV

Direct title premiums

\\$

521

\\$

521

\\$

—


\\$

2,009

\\$

2,009

\\$

—

Agency title premiums

592

592

—


2,277

2,277

—

     Total title premiums

1,113

1,113

—


4,286

4,286

—

Escrow, title-related and other fees

807

776

31


3,324

3,121

203

     Total title and escrow and other

1,920

1,889

31


7,610

7,407

203













Restaurant revenue

328

—

328


1,412

—

1,412

Interest and investment income

30

30

—


123

121

2

Realized gains and losses, net

6

14

(8)


(13)

6

(19)

     Total revenue

2,284

1,933

351


9,132

7,534

1,598













Personnel costs

678

636

42


2,671

2,514

157

Other operating expenses

457

437

20


1,881

1,714

167

Cost of restaurant revenue

274

—

274


1,195

—

1,195

Agent commissions

452

452

—


1,731

1,731

—

Depreciation and amortization

104

90

14


410

345

65

Title claim loss expense

61

61

—


246

246

—

Interest expense

34

31

3


131

122

9

     Total expenses

2,060

1,707

353


8,265

6,672

1,593













Earnings (loss) from continuing operations before taxes

224

226

(2)


867

862

5

Income tax expense (benefit)

71

73

(2)


290

310

(20)

Earnings from continuing operations before equity investments

153

153

—


577

552

25

Earnings (loss) from equity investments

—

2

(2)


(16)

6

(22)

Net earnings (loss)

153

155

(2)


561

558

3

Non-controlling interests

14

11

3


34

18

16

Net earnings (loss) attributable to common shareholders

\\$

139

\\$

144

\\$

(5)


\\$

527

\\$

540

\\$

(13)













Cash flows provided by operations

258

236

22


917

888

29

Fidelity National Financial, Inc.

CONSOLIDATED SUMMARY OF EARNINGS

(In millions)

(Unaudited)




Three Months Ended

Twelve Months Ended

December 31, 2014

December 31, 2014

Consolidated

Core

FNFV

Consolidated

Core

FNFV

Direct title premiums

\\$

478

\\$

478

\\$

—


\\$

1,727

\\$

1,727

\\$

—

Agency title premiums

494

494

—


1,944

1,944

—

     Total title premiums

972

972

—


3,671

3,671

—

Escrow, title-related and other fees

707

679

28


2,804

2,694

110

     Total title and escrow and other

1,679

1,651

28


6,475

6,365

110













Restaurant revenue

381

—

381


1,436

—

1,436

Interest and investment income

33

33

—


126

121

5

Realized gains and losses, net

(7)

4

(11)


(13)

4

(17)

     Total revenue

2,086

1,688

398


8,024

6,490

1,534













Personnel costs

652

596

56


2,540

2,370

170

Other operating expenses

396

371

25


1,643

1,557

86

Cost of restaurant revenue

321

—

321


1,220

—

1,220

Agent commissions

373

373

—


1,471

1,471

—

Depreciation and amortization

101

83

18


403

336

67

Title claim loss expense

59

59

—


228

228

—

Interest expense

31

29

2


127

122

5

     Total expenses

1,933

1,511

422


7,632

6,084

1,548













Earnings (loss) from continuing operations before taxes

153

177

(24)


392

406

(14)

Income tax expense

233

70

163


312

162

150

(Loss) earnings from continuing operations before equity investments

(80)

107

(187)


80

244

(164)

Earnings from equity investments

475

1

474


432

4

428

Net earnings from continuing operations

395

108

287


512

248

264

Earnings (loss) from discontinued operations, net of tax

8

—

8


7

(1)

8

Net earnings

403

108

295


519

247

272

Non-controlling interests

11

8

3


(64)

(68)

4

Net earnings attributable to common shareholders

\\$

392

\\$

100

\\$

292


\\$

583

\\$

315

\\$

268













Cash flows provided by operations

279

186

93


568

475

93