Bose George: Okay. That makes sense. Thanks. And then actually, just to follow-up on the F&G – sorry, on the corporate question as well. So, the Corporate segment goes up, actually, where is the offset, is that coming out of the F&G segment?
Tony Park: Yes. So, F&G is paying dividend, both on their common shares and their preferred. So, it’s like $22 million common dividend, another $5 million on the preferred. Dividends actually come out of the equity section in F&G, so it’s not an expense to F&G. But it’s real cash to FNF corporate and so we book it in the income and then we eliminate it since you can’t earn, you can’t show earnings from a subsidiary in your financials. And so that’s why that’s an offset. And it was like that absent the preferred dividend, I don’t know that we had that last quarter. But in terms of just the common dividend, we had it in the prior quarter, it’s just it was netted together.
Bose George: Okay. And is the elimination in the income statement, or is that sort of below the line somewhere?
Tony Park: Yes, the elimination is in the income statement. There is actually a column that you can now see in our earnings release that shows a negative $27 million that offsets the Corporate segment.
Bose George: Okay. Great. Thanks.
Operator: [Operator Instructions] Our next question is from the line of John Campbell with Stephens Inc. Please go ahead.
John Campbell: Hi guys. Good morning.
Mike Nolan: Hi John.
Tony Park: Good morning John.
John Campbell: It looks like you ended up with more title-filled staff in the quarter. I think that was the first sequential increase since maybe 3Q ‘21. And obviously, it’s a seasonally weaker period. Just curious about how you are thinking about the staffing levels as you move throughout the year? And maybe if you could talk to how much incremental capacity maybe you feel like you have built in the last year or so. I mean going back to the margin commentary, it seems like you are not – at least you are not signaling a big lift off of last year, but with order growth and what I think would be maybe a little bit of incremental capacity, it seems like you should do better there, but just maybe some commentary around that.
Mike Nolan: Yes. Well, first the staffing. I think the increase was fairly modest. It mainly relates to additional hours that get put on by existing staff, which isn’t unusual as we head into the New Year coming off the weakness in the fourth quarter. We are very focused on headcount still, John. And – but at the same time, also recruiting and have had some adds in the acquisition space as well. So, I think we are well positioned with staffing to the current environment. And back to the margin question, if we get – if we see more revenue, more pickup in purchase in particular, we will drive better margins. We are very well positioned for that. It just gets back to the volatility on mortgage rates and how quickly that could have an impact in one direction or the other.
And as we go through the balance of the year, I think we will just continue to manage the staffing accordingly like we always have. I mean I think the outperformance on margin in the first quarter certainly is partly due to the fact that we came into the year in a better position from an expense standpoint and took advantage of that in the first quarter.
John Campbell: Okay. Makes a lot of sense. And then on the capital allocation framework, obviously, you guys have flat line in the buybacks after record years in 2021 and 2022. I don’t know if I am reading too much in the commentary from you, Tony, but it sounds like maybe we should just be thinking about the return, potentially the buyback activity just kind of aligning with U.S. housing recovery. Is that a fair assumption?
Tony Park: Yes. I think it probably is. We took – we paused in 2023 in the first quarter. I think from my standpoint, I am looking to see some positive cash flow. I mean we have positive cash flow, but a lot of it goes towards a $525 million dividend commitment and a couple $200 million to $300 million in acquisition activity. And so I guess, I am looking for something more than $800 million to fund that, realizing that we do have a cushion in a $600 million sitting on the balance sheet. We generated positive operating cash flow in Q1 of about $80 million in the Title and in Corporate segments, which isn’t unusual, the first quarter is always the most challenging. But if we see upside to cash flow this year relative to last, I could see us revisiting that.
But to your point, I think a lot of it depends on just where we feel like the trends are headed. And I think we all believe that things are going to get better. It’s just calling that timing is probably most challenging.
John Campbell: Okay. That makes sense and if I could squeeze in maybe one more here. Mike, I agree with you. I mean the market feels like it is wanting to bounce back, obviously a lot that hinges on rates. And so just kind of related to that, you guys gave the April numbers, so maybe if you could talk to maybe the progression week-to-week throughout the quarter if you saw much of an influence from rate movements. And then I don’t know if you have got the orders for the trends for the first week of May, but maybe talk to how the market kind of turned into May?
