Jacksonville, Fla. -- (July 25, 2006) -- Fidelity National Financial, Inc. (NYSE:FNF), a Fortune 50`0 provider of outsourced products and services to a variety of industries, today reported operating results for the three-month and six-month periods ended June 30, 2006.
* For purposes of computing earnings per diluted share, FNF has to analyze the dilutive impact of outstanding options at its public subsidiaries, Fidelity National Title Group, Inc. and Fidelity National Information Services, Inc., and, if necessary, adjust the net earnings available to FNF shareholders before calculating earnings per diluted share. For the three-month and six month periods ended June 30, 2006, net earnings were reduced by $1.2 million and $1.6 million, respectively, resulting in a reduction of $0.01 in earnings per diluted share for each period.
"This was another solid financial quarter for FNF," said Chairman and Chief Executive Officer William P. Foley, II. "FNT is producing solid returns and significant cash flow in a slower mortgage market. FIS again generated strong organic growth and has raised its full-year 2006 organic growth guidance to a range of 5% to 7% and its full-year 2006 EBITDA growth guidance to a range of 10% to 12%. Our specialty insurance businesses continued to provide greater than 25% growth and the flood insurance operations acquired the existing 63,000 flood insurance policies of Southern Family Insurance Company on June 28th. Finally, Sedgwick announced two acquisitions during the quarter that has it on its way to achieving our target of becoming a $1 billion revenue business. We also continue to make progress towards the closing of the transactions we announced in late April. On June 26th, we announced that FNF and FNT had signed a formal Securities Exchange and Distribution Agreement and that FNF and FIS had signed a merger agreement under which FNF would be merged with and into FIS. On July 18th, we filed the Schedule 14C Preliminary Information Statement related to the FNF/FNT transaction and the Form S-4 Registration Statement and joint proxy statement related to the FNF/FIS merger with the SEC. We expect to close the transactions early in the fourth quarter."
The following are summary financial results for the operating subsidiaries of FNF for the three-month and six-month periods ending June 30, 2006 and 2005:
FNF presents its financial results in accordance with Generally Accepted Accounting Principles ("GAAP"). However, in order to provide the investment community with a more thorough means of evaluating the operating performance of its operations, FNF also reports several non-GAAP measures, including earnings before interest, taxes, depreciation and amortization ("EBITDA"), net earnings plus depreciation and amortization less capital expenditures ("Free Cash Flow") and net earnings plus other intangible amortization, net of income tax ("Cash Earnings"). 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.
Fidelity National Financial, Inc. (NYSE:FNF), number 248 on the Fortune 500, is a provider of outsourced products and services to a variety of industries. Through its majority-owned, publicly traded subsidiary, Fidelity National Title Group, Inc. (NYSE:FNT), FNF is one of the nation's largest title insurance companies, with nearly 29 percent national market share. Through its majority-owned, publicly traded subsidiary, Fidelity National Information Services, Inc. (NYSE:FIS), FNF provides an industry leading suite of data processing, payment and risk management services to financial institutions and retailers. Through its wholly-owned subsidiaries, FNF is also a leading provider of specialty insurance products, including flood insurance, homeowners insurance and home warranty insurance. Through its minority-owned subsidiary, Sedgwick CMS, FNF is a leading provider of outsourced insurance claims management services to large corporate and public sector entities. More information about the FNF family of companies can be found at www.fnf.com, www.fntg.com, www.fidelityinfoservices.com and www.sedgwickcms.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, 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 economic performance 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; 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 operating subsidiaries as a source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; the possibility of the announced reorganization will not be completed, will be completed in a different form or with different effects on stockholders than described or will not be successful in achieving the goals targeted; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission.
SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, 904-854-8120, email@example.com
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