Fidelity National Financial, Inc. Reports First Quarter 2008 EPS of $0.13
April 24, 2008
JACKSONVILLE, Fla., -- Fidelity National Financial, Inc. (NYSE:), a leading reported operating results for the three-month period ended March 31, 2008.
| 1st Quarter 2008 | 1st Quarter 2007 | |
| Total revenue | $1.14 billion | $1.37 billion |
| Pre-tax margin | 3.3% | $27.2 million |
| Net earnings | 9.3% | $83.4 million |
| Net earnings per diluted share | $0.13 | $0.37 |
| Cash flow from (used in) | ($74.9 million) | $84.1 million |
| Return on average equity | 3.4% | 9.6% |
The following are summary financial and operational results for the operating segments of FNF for the three-month periods ended March 31, 2008 and 2007:
Fidelity National Title Group ("FNT")
| 1st Quarter 2008 | 1st Quarter 2007 | |
| Total revenue | $1.01 billion | $1.25 billion |
| Pre-tax earnings | $54.0 million | $114.8 million |
| Pre-tax margin | 5.3% | 9.2% |
| Month | Direct Orders Opened | Direct Orders Closed | Closing % |
| January 2008 | 201,100 | 88,000 | 44% |
| February 2008 | 188,900 | 108,000 | 57% |
| March 2008 | 172,200 | 111,800 | 65% |
| First Quarter 2008 | 562,200 | 307,800 | 55% |
| Month | Direct Orders Opened | Direct Orders Closed | Closing % |
| January 2007 | 212,900 | 128,700 | 60% |
| February 2007 | 202,000 | 120,300 | 60% |
| March 2007 | 237,500 | 141,400 | 60% |
| First Quarter 2007 | 652,400 | 390,400 | 60% |
| Open Commercial Orders | Closed Commercial Orders | Commercial Revenue (In thousands) |
Commercial Fee Per File | |
1st Quarter 2008 |
12,300 | 7,400 | $66,600 | $9,000 |
1st Quarter 2007 |
15,100 | 7,300 | $75,400 | $10,400 |
- The preceding table only includes commercial activity from FNF's commercial offices in the national commercial division and does not attempt to capture potential commercial activity in our local offices.
Specialty Insurance
1st Quarter 2008 |
1st Quarter 2007 |
|
Total revenue |
$88.5 million | $99.0 million |
Pre-tax earnings |
$9.4 million | $25.4 million* |
Pre-tax margin |
10.6% | 25.7% |
*The 1st quarter 2007 Specialty Insurance results include a $12.2 million benefit from an adjustment related to the deferral and amortization ofcertain costs over the life of a policy, consistent with the recognition of the premiums. The adjustment represents costs deferred as of March 31, 2007, on policies issued over the prior twelve months.
"We continue to navigate through difficult economic conditions, particularly in the mortgage and real estate markets," said Chairman William P. Foley, II. "We did see a surge in open order volumes after the 75 basis point inter-meeting Fed rate cut, but those elevated levels did not continue through the rest of the quarter. While we peaked above 11,000 open orders per day for a few weeks in late January and early February, open orders have settled down closer to 8,000 to 8,500 per day over the last six weeks. Even that order volume is the highest level we have seen since the summer of 2007, right before the credit crisis hit the mortgage markets. We have definitely seen a better start to 2008, particularly given that the first quarter is generally the weakest quarter of the year and the fact that we now have our cost structure better aligned with that level of order volumes. On the claims front, we were encouraged by our performance in the first quarter and continue to be confident in our reserve position, as no single calendar year showed more than a 10 basis point positive or negative change in the ultimate expected loss experience. This was the best quarterly performance versus the actuarial model since the first quarter of 2007. Overall, we are prepared for the operating environment to remain challenging and we will continue to seek out ways to maximize the profitability of our title insurance operations, even if it is in the face of continued difficult mortgage and real estate markets"
Source: Fidelity National Financial, Inc.
Contact ALTA at 202-296-3671 or [email protected].