Industry News

Fidelity National Financial, Inc. Reports First Quarter 2005 EPS of $2.51

April 26, 2005

JACKSONVILLE, Fla., /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF), a Fortune 500 provider of products and outsourced services and solutions to financial institutions and the real estate industry, today reported operating results for the three-month period ended March 31, 2005.

• Total revenue for the first quarter of 2005 was $2.27 billion, compared with $1.84 billion for the first quarter of 2004
• Total title and escrow revenue was $1.23 billion for the first quarter of 2005 versus $1.29 billion in the first quarter of 2004
• Direct and agency title premiums were $478 million and $511 million, respectively, for the first quarter of 2005 versus direct and agency title premiums of $465 million and $606 million, respectively, in the first quarter of 2004; net agency title premiums (agency title premiums less agent commissions) were $119 million for the first quarter of 2005 versus $132 million in the first quarter of 2004
• Escrow and other title related fees were $242 million for the first quarter of 2005 versus $219 million for the first quarter of 2004
• Specialty Insurance contributed $76 million for the first quarter of 2005 versus $49 million in the first quarter of 2004
• Revenue from Financial Institution Software and Services ("FISS"), was $381 million for the first quarter of 2005 versus $243 million for the first
  quarter of 2004; FISS gross revenue was $396 million for the first quarter of 2005 versus $254 million in the prior year quarter
• FISS gross organic revenue growth was 2.5 percent for the first quarter of 2005 versus the first quarter of 2004
• Lender Outsourcing Solutions ("LOS") revenue was $71 million for the first quarter of 2005 compared to $74 million for the first quarter of 2004;
  LSI, which provides centralized loan facilitation services for national lenders, contributed $13 million in non-title premium revenue versus $15 million in the first quarter of 2004, while Default Management generated $55 million in revenue for the first quarter of 2005 versus $47 million in the first quarter of 2004
• For accounting purposes, $18 million of LSI revenue is included in title premiums for the first quarter of 2005 versus $40 million in the first quarter
  of 2004; for segment reporting, all of the LSI revenue is included in the LOS segment and LSI contributed $32 million in total revenue for the first quarter of 2005 compared to $55 million in the first quarter of 2004; for segment reporting purposes, LOS reported total operating revenue of $90 million for the first quarter of 2005 compared to $114 million for the first quarter of 2004
• Information Services ("IS") revenue was $155 million for the first quarter of 2005 compared with $142 million for the first quarter of 2004
• A $318 million non-operating gain was recognized on the sale of the minority equity interest in FIS during the first quarter of 2005
• The provision for claim loss expense was $80 million for the first quarter of 2005; the provision for title insurance claims was increased to 6.5% for the first quarter of 2005 versus 5.3 % in the prior year quarter as actual title claims paid as a percentage of title insurance premiums increased; the provision for claim losses attributable to the specialty insurance segment, specifically homeowners' insurance, was $15 million in 2005 versus $4 million in the first quarter of 2005 due to growth in thehe
  homeowners' portfolio
• Interest expense for the first quarter of 2005 was $25 million compared with $8 million for the first quarter of 2004; the increase included the interest expense from the $2.8 billion credit facility utilized to fund the recapitalization of FIS that closed on March 9, 2005 and the consolidated $810 million in credit facility borrowings that were outstanding from January 1, 2005 until their repayment on March 9, 2005
• Cash flow from operations was $121 million for the first quarter of 2005 compared with $119 million for the first quarter of 2004

Source: Fidelity National Financial, Inc.

Contact ALTA at 202-296-3671 or [email protected].