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

JACKSONVILLE, Fla., July 19, 2017 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results for FNFV Group (NYSE: FNFV), a tracking stock established to highlight the inherent value of the portfolio companies of Fidelity National Financial, Inc., for the three and six-month periods ended June 30, 2017.

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

Restaurant Group

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

Ceridian HCM

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

Monetization and Investment Initiatives

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

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

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

Conference Call
We will host a call with investors and analysts to discuss second quarter 2017 results of FNFV on Thursday, July 20, 2017, beginning at 12:30 p.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at www.fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com. The telephone replay will be available from 2:30 p.m. Eastern time on July 20, 2017, through July 27, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 426237.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV). FNF is a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries. FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States. FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC. FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc. and Del Frisco's Restaurant Group, Inc. More information about FNF and FNFV can be found at www.fnf.com.

Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), and earnings before interest, taxes and depreciation as a percent of revenue (EBITDA margin).

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.

Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: our ability to successfully achieve the conditions to and consummate the plan to redeem and exchange the FNFV tracking stock with the result being an independent, publicly-traded FNFV common stock; changes in general economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries.

This press release should be read in conjunction with the press release filed for the results of FNF Group on this same date as well as the risks detailed in the 'Statement Regarding Forward-Looking Information,' 'Risk Factors' and other sections of the Company's Form 10-Q,10-K and other filings with the Securities and Exchange Commission.

FNF-E

FIDELITY NATIONAL FINANCIAL VENTURES SECOND QUARTER SEGMENT INFORMATION (In millions) (Unaudited)
			Total FNFV				Restaurant Group				FNFV Corporate and Other
Three Months Ended
June 30, 2017
Operating revenue			$	330			$	288			$	42
Interest and investment income			1				-				1
Realized gains and losses, net			268				(1)				269
Total revenue			599				287				312
Personnel costs			65				13				52
Other operating expenses			29				15				14
Cost of restaurant revenue			249				249				-
Depreciation and amortization			16				11				5
Interest expense			3				1				2
Total expenses			362				289				73
Pre-tax earnings (loss) from continuing operations			$	237			$	(2)			$	239
Income tax expense			$	113			$	-			$	113
Loss from equity investments			(4)				-				(4)
Non-controlling interests			(1)				(1)				-
Net earnings (loss) attributable to FNFV common shareholders			$	121			$	(1)			$	122
EPS attributable to FNFV common shareholders - basic			$	1.83			$	(0.02)			$	1.85
EPS attributable to FNFV common shareholders - diluted			$	1.81			$	(0.02)			$	1.83
FNFV weighted average shares - basic			66
FNFV weighted average shares - diluted			67
Pre-tax earnings (loss) from continuing operations			$	237			$	(2)			$	239
Interest expense			$	3			$	1			$	2
Depreciation and amortization			16				11				5
EBITDA			$	256			$	10			$	246
EBITDA margin			42.7		%		3.5		%		78.8		%

FIDELITY NATIONAL FINANCIAL VENTURES SECOND QUARTER SEGMENT INFORMATION (In millions) (Unaudited)
			Total FNFV						Restaurant Group						FNFV Corporate and Other
Three Months Ended
June 30, 2016
Operating revenue			$			332			$			292			$			40
Interest and investment income			1						-						1
Realized gains and losses, net			15						-						15
Total revenue			348						292						56
Personnel costs			40						14						26
Other operating expenses			28						16						12
Cost of restaurant revenue			245						245						-
Depreciation and amortization			15						10						5
Interest expense			1						1						-
Total expenses			329						286						43
Pre-tax earnings from continuing operations			$			19			$			6			$			13
Income tax expense			$			3			$			-			$			3
Loss from equity investments			(4)						-						(4)
Non-controlling interests			2						2						-
Net earnings attributable to FNFV common shareholders			$			10			$			4			$			6
EPS attributable to FNFV common shareholders - basic			$			0.15			$			0.06			$			0.09
EPS attributable to FNFV common shareholders - diluted			$			0.14			$			0.06			$			0.08
FNFV weighted average shares - basic			67
FNFV weighted average shares - diluted			70
Pre-tax earnings from continuing operations			$			19			$			6			$			13
Interest expense			$			1			$			1			$			-
Depreciation and amortization			15									10						5
EBITDA			$			35			$			17			$			18
EBITDA margin			10.1				%	5.8					%					32.1	%

FIDELITY NATIONAL FINANCIAL VENTURES YTD SEGMENT INFORMATION (In millions) (Unaudited)
			Total FNFV				Restaurant Group				FNFV Corporate and Other
Six Months Ended
June 30, 2017
Operating revenue			$	652			$	561			$	91
Interest and investment income			2				-				2
Realized gains and losses, net			273				(1)				274
Total revenue			927				560				367
Personnel costs			111				26				85
Other operating expenses			54				30				24
Cost of restaurant revenue			485				485				-
Depreciation and amortization			32				22				10
Interest expense			7				3				4
Total expenses			689				566				123
Pre-tax earnings (loss) from continuing operations			$	238			$	(6)			$	244
Income tax expense			111				-				111
Loss from equity investments			(8)				-				(8)
Non-controlling interests			(3)				(3)				-
Net earnings (loss) attributable to FNFV common shareholders			$	122			$	(3)			$	125
EPS attributable to FNFV common shareholders - basic			$	1.85			$	(0.05)			$	1.90
EPS attributable to FNFV common shareholders - diluted			$	1.79			$	(0.05)			$	1.84
FNFV weighted average shares - basic			66
FNFV weighted average shares - diluted			68
Pre-tax earnings (loss) from continuing operations			$	238			$	(6)			$	244
Interest expense			$	7			$	3			$	4
Depreciation and amortization			32				22				10
EBITDA			$	277			$	19			$	258
EBITDA margin			29.9		%		3.4		%		70.3		%

FIDELITY NATIONAL FINANCIAL VENTURES YTD SEGMENT INFORMATION (In millions) (Unaudited)
			Total FNFV				Restaurant Group				FNFV Corporate and Other
Six Months Ended
June 30, 2016
Operating revenue			$	663			$	585			$	78
Interest and investment income			2				-				2
Realized gains and losses, net			12				(3)				15
Total revenue			677				582				95
Personnel costs			78				27				51
Other operating expenses			55				37				18
Cost of restaurant revenue			490				490				-
Depreciation and amortization			30				20				10
Interest expense			4				2				2
Total expenses			657				576				81
Pre-tax earnings from continuing operations			$	20			$	6			$	14
Income tax expense			$	2			$	-			$	2
Loss from equity investments			(5)				-				(5)
Non-controlling interests			2				2				-
Net earnings attributable to FNFV common shareholders			$	11			$	4			$	7
EPS attributable to FNFV common shareholders - basic			$	0.16			$	0.06			$	0.10
EPS attributable to FNFV common shareholders - diluted			$	0.15			$	0.06			$	0.09
FNFV weighted average shares - basic			69
FNFV weighted average shares - diluted			71
Pre-tax earnings from continuing operations			$	20			$	6			$	14
Interest expense			$	4			$	2			$	2
Depreciation and amortization			30				20				10
EBITDA			$	54			$	28			$	26
EBITDA margin			8.0		%		4.8		%		27.4		%

FIDELITY NATIONAL FINANCIAL VENTURES SUMMARY BALANCE SHEET AND BOOK VALUE SUMMARY (In millions)
												FNFV June 30, 2017					FNFV December 31, 2016
												(Unaudited)					(Unaudited)
Cash and investment portfolio													$	850					$	642
Goodwill													102						206
Total assets													1,354						1,400
Notes payable													118						233
Non-controlling interest													108						116
Total equity and redeemable non-controlling interests													1,130						1,032
Total equity attributable to common shareholders													1,022						916
	FNF Group June 30, 2017						FNFV June 30, 2017					Consolidated June 30, 2017					Consolidated December 31, 2016
	(Unaudited)					(Unaudited)						(Unaudited)
Cash and investment portfolio		$	4,705				$	850					$	5,555					$	5,607
Goodwill		4,905					102						5,007						5,065
Title plant		395					-						395						395
Total assets		12,848					1,354						14,202						14,463
Notes payable		2,320					118						2,438						2,746
Reserve for title claim losses		1,492					-						1,492						1,487
Secured trust deposits		892					-						892						860
Redeemable non-controlling interests		344					-						344						344
Non-redeemable non-controlling interests		770					108						878						902
Total equity and redeemable non-controlling interests		6,133					1,130						7,263						7,242
Total equity attributable to common shareholders		5,019					1,022						6,041						5,996
Adjusted Book Value Summary													FNFV June 30, 2017				FNFV December 31, 2016
													(Unaudited)						(Unaudited)
Ceridian/Fleetcor														$	399					$	386
American Blue Ribbon Holdings														173						173
One Digital														-						75
Del Frisco's Restaurant Group														18						49
Holding Company Cash														354						129
Other														78						104
FNFV Book Value														$	1,022					$	916
Outstanding FNFV shares														65.1						66.4
FNFV Book Value per Share														$	15.70					$	13.78

Fidelity National Financial, Inc. CONSOLIDATED SUMMARY OF EARNINGS (In millions) (Unaudited)
	Three Months Ended													Six Months Ended
	June 30, 2017													June 30, 2017
	Consolidated				Core				FNFV					Consolidated				Core				FNFV
Direct title premiums	$	575			$	575			$	-				$	1,040			$	1,040			$	-
Agency title premiums	726				726				-					1,309				1,309				-
Total title premiums	1,301				1,301				-					2,349				2,349				-
Escrow, title-related and other fees	1,008				966				42					1,876				1,785				91
Total title and escrow and other	2,309				2,267				42					4,225				4,134				91
Restaurant revenue	288				-				288					561				-				561
Interest and investment income	34				33				1					63				61				2
Realized gains and losses, net	256				(12)				268					255				(18)				273
Total revenue	2,887				2,288				599					5,104				4,177				927
Personnel costs	788				723				65					1,503				1,392				111
Other operating expenses	558				529				29					1,018				964				54
Cost of restaurant revenue	249				-				249					485				-				485
Agent commissions	558				558				-					1,004				1,004				-
Depreciation and amortization	110				94				16					222				190				32
Title claim loss expense	65				65				-					117				117				-
Interest expense	29				26				3					64				57				7
Total expenses	2,357				1,995				362					4,413				3,724				689
Earnings from continuing operations before taxes	530				293				237					691				453				238
Income tax expense	226				113				113					304				193				111
Earnings from continuing operations before equity investments	304				180				124					387				260				127
(Loss) earnings from equity investments	(2)				2				(4)					(4)				4				(8)
Net earnings from continuing operations	302				182				120					383				264				119
Non-controlling interests	6				7				(1)					15				18				(3)
Net earnings attributable to common shareholders	$	296			$	175			$	121				$	368			$	246			$	122
Cash flows provided by (used in) operations	287				401				(114)					291				389				(98)

Fidelity National Financial, Inc. CONSOLIDATED SUMMARY OF EARNINGS (In millions) (Unaudited)
	Three Months Ended													Six Months Ended
	June 30, 2016													June 30, 2016
	Consolidated				Core				FNFV					Consolidated				Core				FNFV
Direct title premiums	$	540			$	540			$	-				$	962			$	962			$	-
Agency title premiums	691				691				-					1,221				1,221				-
Total title premiums	1,231				1,231				-					2,183				2,183				-
Escrow, title-related and other fees	907				867				40					1,686				1,608				78
Total title and escrow and other	2,138				2,098				40					3,869				3,791				78
Restaurant revenue	292				-				292					585				-				585
Interest and investment income	37				36				1					67				65				2
Realized gains and losses, net	15				-				15					9				(3)				12
Total revenue	2,482				2,134				348					4,530				3,853				677
Personnel costs	707				667				40					1,359				1,281				78
Other operating expenses	493				465				28					925				870				55
Cost of restaurant revenue	245				-				245					490				-				490
Agent commissions	526				526				-					928				928				-
Depreciation and amortization	102				87				15					202				172				30
Title claim loss expense	68				68				-					120				120				-
Interest expense	33				32				1					67				63				4
Total expenses	2,174				1,845				329					4,091				3,434				657
Earnings from continuing operations before taxes	308				289				19					439				419				20
Income tax expense	101				98				3					150				148				2
Earnings from continuing operations before equity investments	207				191				16					289				271				18
(Loss) earnings from equity investments	(1)				3				(4)					1				6				(5)
Net earnings from continuing operations	206				194				12					290				277				13
Non-controlling interests	9				7				2					19				17				2
Net earnings attributable to common shareholders	$	197			$	187			$	10				$	271			$	260			$	11
Cash flows provided by operations	282				277				5					374				349				25

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SOURCE Fidelity National Financial, Inc.