Fidelity National Financial, Inc. Reports Record Fourth Quarter Cash EPS Of $1.28

February 13, 2002

IRVINE, Calif., /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF), the nation's largest provider of title insurance and real estate related products and services, today reported operating results for the three and twelve-month periods ended December 31, 2001. All per share amounts are presented on a diluted basis. 

 Recurring Net Earnings
 4th Quarter 4th Quarter Full-year Full-year
 2001(1) 2000 2001(1)(2) 2000(3)
 $102.3 million $37.5 million $321.2 million $121.7 million
 $1.16 $.48 $3.65 $1.82
 (1) Excludes a non-recurring, after-tax charge of $10.0 million, or
 approximately $.12 per diluted share, related to the previously
 announced discontinuation of small-ticket lease origination at FNF
 Capital and the wholesale international long distance business at
 Micro General, a majority-owned subsidiary of FNF
 (2) Excludes the cumulative effect of an accounting change taken in the
 second quarter of 2001
 (3) Includes the results of Chicago Title from March 20, 2000 and
 excludes certain non-recurring, non-title related charges taken in
 the first quarter of 2000
 Net Cash Earnings(1)
 4th Quarter 2001 4th Quarter 2000 Full-year 2001 Full-year 2000
 $113.1 million $48.1 million $366.2 million $155.9 million
 $1.28 $.61 $4.16 $2.33
 (1) Excludes amortization of cost in excess of net assets acquired
 Net GAAP Earnings
 4th Quarter 2001 4th Quarter 2000 Full-year 2001 Full-year 2000
 $92.3 million $37.5 million $305.5 million $108.3 million
 $1.04 $.48 $3.47 $1.62

Revenues for the fourth quarter of 2001 were a record $1.1 billion, compared with $817 million for the fourth quarter of 2000. For the twelve- month period ended December 31, 2001, revenues were $3.9 billion versus $2.7 billion in the prior year period.

Total title premiums were $792 million for the fourth quarter of 2001, compared with $589 million for the fourth quarter of 2000. For the twelve- month period ended December 31, 2001, total title premiums were $2.7 billion versus $1.9 billion in the prior year period.

"The fourth quarter was a great finish to the best year in the history of our company," said Chairman and Chief Executive Officer William P. Foley, II. "Revenues exceeded $1 billion for the second consecutive quarter and recurring net earnings topped $100 million this quarter, a first for our company and industry. We also had numerous strategic accomplishments in 2001, most notably the successful merger and reorganization of Fidelity National Information Solutions (Nasdaq:FNIS) as a publicly traded company. FNIS provides data, solutions and services to lenders, real estate agents and other participants in the real estate purchase process." 

 FIDELITY NATIONAL FINANCIAL, INC.
 SUMMARY OF EARNINGS
 (In thousands except per share amounts and order information)
 Three-months ended Twelve-months ended
 December 31, December 31,
 2001 2000 2001 2000
 (Unaudited) (Unaudited)
 Direct title
 premiums $370,839 $240,514 $1,291,276 $811,621
 Agency title
 premiums 421,660 348,536 1,403,203 1,134,538
 Total title
 premiums 792,499 589,050 2,694,479 1,946,159
 Escrow and other
 title-related fees 211,866 133,784 728,406 459,121
 Real estate related
 services 91,465 50,462 287,063 166,718
 Interest and
 investment income 19,334 25,228 99,454 87,191
 Other income 16,913 18,068 64,705 82,805
 Total revenue 1,132,077 816,592 3,874,107 2,741,994
 Personnel costs 333,006 244,978 1,187,177 845,349
 Other operating
 expenses 245,498 178,443 834,513 626,308
 Agent commissions 331,723 271,413 1,098,328 884,498
 Claim loss expense 39,289 29,467 134,724 97,322
 Interest expense 9,652 17,862 46,569 59,374
 Total expenses 959,168 742,163 3,301,311 2,512,851
 Earnings before
 amortization of cost
 in excess of net
 assets acquired 172,909 74,429 572,796 229,143
 Amortization of cost
 in excess of net
 assets acquired 19,110 10,861 54,155 35,003
 Earnings before
 income taxes 153,799 63,568 518,641 194,140
 Income tax expense 61,519 26,063 207,456 85,825
 Earnings before
 cumulative effect
 of accounting change 92,280 37,505 311,185 108,315
 Cumulative effect of
 accounting change,
 net of tax benefit
 of $3,035 -- -- (5,709) --
 Net earnings $92,280 $37,505 $305,476 $108,315
 EPS before cumulative
 effect of accounting
 change - basic $1.07 $0.50 $3.64 $1.67
 EPS before cumulative
 effect of accounting
 change - diluted $1.04 $0.48 $3.54 $1.62
 Net EPS - basic $1.07 $0.50 $3.57 $1.67
 Net EPS - diluted $1.04 $0.48 $3.47 $1.62
 Weighted average
 shares - basic 85,938 75,314 85,498 64,703
 Weighted average
 shares - diluted 88,478 78,397 88,059 67,030
 Direct orders opened 787,200 381,400 2,635,200 1,351,600(1)
 Direct orders closed 534,500 288,300 1,770,600 970,900(1)
 (1) Includes Chicago Title beginning April 1, 2000.
 FIDELITY NATIONAL FINANCIAL, INC.
 RECURRING NET EARNINGS AND NET CASH EARNINGS PER SHARE
 (In thousands except per share amounts)
 (Unaudited)
 Three-months ended Twelve-months ended
 December 31, December 31,
 2001 2000 2001 2000
 Net earnings $92,280 $37,505 $305,476 $108,315
 Cumulative effect
 of accounting change,
 net of tax -- -- 5,709 --
 Non-recurring charges,
 net of tax 9,989 -- 9,989 13,371
 Recurring net
 earnings $102,269 $37,505 $321,174 $121,686
 Recurring net
 earnings per diluted
 share $1.16 $0.48 $3.65 $1.82
 Recurring net
 earnings $102,269 $37,505 $321,174 $121,686
 Amortization of
 cost in excess
 of net assets
 acquired (1) 11,090 10,861 46,135 35,003
 Tax effect of
 amortization of
 cost in excess of
 net assets acquired (246) (255) (1,062) (838)
 Net cash earnings $113,113 $48,111 $366,247 $155,851
 Net cash earnings
 per diluted share $1.28 $0.61 $4.16 $2.33
 Diluted weighted
 average shares
 outstanding 88,478 78,397 88,059 67,030
 (1) Amortization of cost in excess of net assets acquired for the
 three-months and twelve-months ended December 31, 2001 excludes an
 $8.0 million write-off associated with the discontinuation of two
 businesses in the fourth quarter of 2001. These charges are
 reflected net of tax as part of the non-recurring charges in the
 calculation of recurring net earnings above.

The table presented above presents recurring net earnings, which exclude the cumulative effect of an accounting change that was recorded in the second quarter of 2001, non-recurring charges related to the discontinuation of two businesses in the fourth quarter of 2001 and certain non-recurring charges that were recorded in the first quarter of 2000. Recurring net earnings are then converted into net cash earnings by excluding the amortization of cost in excess of net assets acquired related to acquisitions. All other customary non-cash charges such as claim loss expense, depreciation expense and normal recurring accruals are included. Amortization of cost in excess of net assets acquired, the non-recurring charges and the cumulative effect of an accounting change are non-cash charges against earnings that are reflected in typical earnings per share calculations. This table presents recurring net earnings and net cash earnings per share of the company and is not prepared in accordance with accounting principles generally accepted in the United States of America and may not be consistent with the presentation of cash earnings per share made by other companies. 

 FIDELITY NATIONAL FINANCIAL, INC.
 SUMMARY BALANCE SHEET INFORMATION
 (Dollars in thousands)
 December 31, December 31,
 2001 2000
 Cash and investment portfolio $2,346,441 $1,948,286
 Cost in excess of net assets acquired 808,584 770,060
 Total assets 4,415,998 3,833,985
 Notes payable 565,690 791,430
 Reserve for claim losses 881,053 907,482
 Total equity 1,638,870 1,106,737
 Book value per share 19.13 14.48

Source: Fidelity National Financial, Inc.


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