<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1
TO
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: February 26, 1998
FIDELITY NATIONAL FINANCIAL, INC.
---------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 1-9396 86-0498599
- ---------------------------- ---------------- ----------------------
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification Number)
17911 Von Karman Avenue, Irvine, California 92614
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(Address of principal executive offices)
(714) 622-5000
--------------
(Registrant's telephone number, including area code)
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIDELITY NATIONAL FINANCIAL, INC.
Dated: May 12, 1998 /s/ M'Liss Jones Kane
---------------------------------
M'Liss Jones Kane
Senior Vice President, General
Counsel and Corporate Secretary
<PAGE> 3
Item 7. Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired
The required audited consolidated balance sheet of Granite Financial,
Inc. and its subsidiaries ("Granite") as of June 30, 1997 and the related
consolidated statements of operations, stockholders' equity and cash flows for
each of the two fiscal years ended June 30, 1996 and June 30, 1997 are included
in pages F-3 to F-7 of Granite's Annual Report on Form 10-KSB for the fiscal
year ended June 30, 1997, as filed with the Securities and Exchange Commission
(the "Commission") on September 29, 1997, which is incorporated by reference as
Exhibit 99(B) to this Report.
The required consolidated balance sheet of Granite as of December 31,
1997 and the related consolidated statements of operations, stockholders' equity
and cash flows for the six-month periods ended December 31, 1996 and December
31, 1997 are included in pages 3 to 7 of Granite's Current Report on Form
10-QSB for the quarterly period ended December 31, 1997, as filed with the
Commission on February 13, 1998, which is incorporated by reference as Exhibit
99(C) to this Report.
(b) Pro Forma Financial Information
The following unaudited pro forma combined condensed balance sheet of
Fidelity as of December 31, 1997 combines the historical consolidated balance
sheet of Fidelity as of December 31, 1997 with the historical consolidated
balance sheet of Granite as of December 31, 1997 as if the merger had been
effective on December 31, 1997. The following unaudited pro forma combined
condensed statement of income of Fidelity for the year ended December 31, 1997
presents the results of operations of Fidelity for the year ended December 31,
1997 combined with the results of operations of Granite for the 12 months ended
December 31, 1997, as if the merger had been effective at January 1, 1997.
The required unaudited pro forma combined condensed statements of income
of Fidelity for each of the years ended December 31, 1996 and December 31, 1995
are included in the unaudited pro forma condensed financial statements of
Fidelity set forth on pages 41 to 47 of the Joint Proxy Statement/Prospectus of
Fidelity and Granite, dated January 16, 1998, as filed by Fidelity with the
Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended,
on January 20, 1998 in connection with Fidelity's Registration Statement on Form
S-4, as amended (Registration No. 333-44153), which is incorporated by reference
as Exhibit 99(D) to this Report.
The unaudited pro forma combined condensed financial information is
provided for comparative purposes only and is not indicative of the results of
operations or the financial position of the combined companies that would have
occurred had the merger occurred at the beginning of the periods presented or on
the date indicated, nor is it indicative of future operating results or
financial position. The unaudited pro forma adjustments are based on currently
available information and upon certain assumptions that management of Fidelity
and Granite believe are reasonable under the circumstances. The unaudited pro
forma combined condensed financial information and the related notes thereto
should be read in conjunction with the historical consolidated financial
statements and the related notes of Fidelity and Granite. In addition, the
unaudited pro forma combined condensed financial information does not reflect
certain cost savings that management believes may be realized following the
merger.
The unaudited pro forma combined condensed financial information
reflects the application of the pooling-of-interests method of accounting for
the merger. Under this method of accounting, the recorded assets, liabilities,
stockholders' equity, income and expenses of Fidelity and Granite are combined
and reflected at their historical amounts.
<PAGE> 4
PRO FORMA COMBINED BALANCE SHEET AS OF DECEMBER 31, 1997
(Unaudited, Dollars in Thousands)
<TABLE>
<CAPTION>
DECEMBER 31, 1997
---------------------------------------------------------------
GRANITE FIDELITY NATIONAL PRO FORMA
FINANCIAL, INC. FINANCIAL, INC. ADJUSTMENTS COMBINED
--------------- ----------------- ----------- --------
<S> <C> <C> <C> <C>
ASSETS
Investments
Fixed maturities available for sale, at fair value... $ 217,001 $ 217,001
Equity securities, at fair value..................... 70,418 70,418
Other long-term investments, at cost, which
approximates fair value........................... 600 15,864 16,464
Short-term investments, at cost, which approximates
fair value........................................ 17,793 17,793
Investments in real estate and partnerships, net..... 5,201 5,201
--------- --------- --------- --------
Total investments............................... 600 326,277 326,877
Cash and cash equivalents.................................... 5,850(1) 54,005 (3,784)(2) 56,071
Leases and lease residual interests......................... 53,782 53,782
Trade receivables............................................ 52,650 52,650
Notes receivable............................................. 8,898 8,898
Prepaid and other assets..................................... 16,576 70,213 86,789
Title plants................................................. 51,756 51,756
Property and equipment, net.................................. 2,225 36,760 38,985
--------- --------- -------- --------
$ 79,033 $ 600,559 $ (3,784)(2) $675,808
========= ========= ========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable and accrued liabilities................... $ 9,112 $ 63,312 $ 72,424
Notes payable.............................................. 32,772 123,023 155,795
Reserve for claim losses................................... 190,747 190,747
Deferred income taxes...................................... 13,422 13,422
Income taxes payable....................................... 1,638 10,122 11,760
--------- --------- --------- --------
43,522 400,626 0 444,148
--------- --------- --------- --------
Minority interest.......................................... 3,614 3,614
Stockholders' equity
Preferred stock............................................
Common stock............................................... 6 2 (5)(3) 3
Additional paid-in capital................................. 31,742 101,735 5 (3) 133,482
Retained earnings.......................................... 3,763 126,535 (3,784)(2) 126,514
--------- --------- --------- --------
35,511 228,272 (3,784) 259,999
--------- --------- --------- --------
Net unrealized gains on investments........................ 22,422 22,422
Less treasury stock........................................ 54,375 54,375
--------- --------- --------- --------
35,511 196,319 (3,784) 228,046
--------- --------- --------- --------
$ 79,033 $ 600,559 $ (3,784) $675,808
========= ========= ========= ========
</TABLE>
(1) Cash, cash equivalents and restricted cash includes restricted cash of
$3,358,000.
(2) Cash, total assets and stockholders' equity have been adjusted to
reflect the cumulative impact of dividends that would have been paid on an
additional 4,505,000 shares issued and outstanding.
(3) Adjustment represents the conversion of the Granite Common Stock, $.001 par
value, to Fidelity Common Stock, $.0001 par value.
<PAGE> 5
PRO FORMA COMBINED STATEMENT OF INCOME
(Unaudited, In Thousands Except Per Share Amounts)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997
-----------------------------------------
GRANITE
FIDELITY
GRANITE FIDELITY COMBINED
----------- ------------ ----------
<S> <C> <C> <C>
REVENUE:
Title insurance premiums.................................... $ 533,220 $ 533,220
Escrow fees................................................ 81,241 81,241
Other fees and revenue...................................... 16,469 98,695 115,164
Interest and investment income, including
realized gains (losses)................................... 33,556 33,556
--------- --------- ---------
16,469 746,712 763,181
--------- --------- ---------
EXPENSES:
Personnel costs............................................. 3,096 240,223 243,319
Other operating expenses.................................... 5,698 161,200 166,898
Agent commissions........................................... 223,797 223,797
Provision for claim losses.................................. 38,661 38,661
Interest expense............................................ 2,253 9,401 11,654
--------- --------- ---------
11,047 673,282 684,329
--------- --------- ---------
Earnings before extraordinary item.......................... 5,422 73,430 78,852
Income tax expense.......................................... 2,096 31,959 34,055
--------- --------- ---------
Earnings before income taxes and extraordinary item......... 3,326 41,471 44,797
Extraordinary item, loss on early retirement of debt, net
of applicable income taxes.............................. (1,700) (1,700)
--------- --------- ---------
Net earnings................................................ $ 3,326 $ 39,771 $ 43,097
========= ========= =========
Basic net earnings.......................................... $ 3,326 $ 39,771 $ 43,097
========= ========= =========
Basic earnings per share before extraordinary item.......... $ 0.99 $ 2.61 $ 2.31
Extraordinary item, loss on early retirement of debt, net
of applicable income taxes.............................. (0.11) (0.09)
--------- --------- ---------
Basic earnings per share.................................... $ 0.99 $ 2.50 $ 2.22
========= ========= =========
Weighted average shares outstanding, basic basis............ 3,361 15,911 19,376
Diluted net earnings........................................ $ 3,326 $ 42,913 $ 46,239
========= ========= =========
Diluted earnings per share before extraordinary item........ $ 0.96 $ 2.08 $ 1.92
Extraordinary item, gain on early retirement of debt, net
of applicable income taxes.............................. (0.08) (0.07)
--------- --------- ---------
Diluted earnings per share.................................. $ 0.96 $ 2.00 $ 1.85
========= ========= =========
Weighted average shares outstanding, diluted basis.......... 3,465 21,483 24,948
</TABLE>
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(c) Exhibits
<TABLE>
<CAPTION>
<S> <C>
23(A) Consent of Ehrhardt Keefe Steiner & Hottman PC
99(A) *Press Release - Fidelity National Financial, Inc. and
Granite Financial, Inc. Announce Completion of Merger
99(B) Annual Report on Form 10-KSB of Granite Financial, Inc.
for the fiscal year ended June 30, 1997, as filed with the
Commission on September 29, 1997 and incorporated herein
by reference.
99(C) Current Report on Form 10-QSB of Granite Financial, Inc.
for the quarterly period ended December 31, 1997, as filed
with the Commission on February 13, 1998 and incorporated
herein by reference.
99(D) Joint Proxy Statement/Prospectus of Fidelity and Granite,
dated January 16, 1998, as filed by Fidelity with the
Commission pursuant to Rule 424(b) on January 20, 1998
(Registration No. 333-44153) and incorporated herein by
reference.
</TABLE>
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* Previously filed
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EXHIBIT 23(A)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
We hereby consent to the incorporation by reference of our report on Granite
Financial, Inc. dated August 20, 1997, into Fidelity National Financial, Inc.'s
Amendment No. 1 to Form 8K/A.
/s/ EHRHARDT KEEFE STEINER & HOTTMAN PC
---------------------------------------
Ehrhardt Keefe Steiner & Hottman PC
May 11, 1998
Denver, Colorado
