FIS Reports First Quarter 2014 Rise in Revenue and Earnings
-
Revenue of
$1.5 billion , up 4 percent on organic basis -
Adjusted EPS from continuing operations of
$0.68 , up 10 percent -
Free cash flow of
$158 million -
$245 million in share repurchases and cash dividends returned to shareholders
Non-GAAP adjusted net earnings from continuing operations attributable
to common stockholders increased to
“We are pleased with our first quarter results and the execution of our
growth strategy,” said
Segment Information
The following is a discussion of first quarter results by segment:
- Financial Solutions:
Financial Solutions revenue was
- Payment Solutions:
Payment Solutions GAAP revenue was
- International Solutions:
International Solutions revenue increased 8 percent to
- Corporate/Other:
Corporate costs totaled
Balance Sheet and Cash Flow
Cash and cash equivalents totaled
Net cash provided by operations increased to
FIS repurchased approximately 3.2 million common shares at a total cost
of approximately
2014 Outlook
FIS reiterated its full year 2014 outlook as follows:
- Organic revenue growth of 4.5 to 6.5 percent
- EBITDA, as adjusted, growth of 4.5 to 6.5 percent
-
EPS from continuing operations of
$3.05 to $3.16 , as adjusted, an increase of 8 to 12 percent compared to$2.83 per share in 2013 - Free cash flow is expected to approximate adjusted net earnings
Webcast
FIS will host a webcast on
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. For these reasons, management also uses these measures in part to assess its performance.
These non-GAAP measures include organic revenue, adjusted revenue, EBITDA, adjusted EBITDA and adjusted EBITDA margin, adjusted cash flow from operations, adjusted net earnings (including per share amounts) and free cash flow.
Organic revenue includes adjusted revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation.
Adjusted revenue (2014) includes reported revenue and is increased by
EBITDA is earnings from continuing operations before interest, taxes, depreciation and amortization.
Adjusted net earnings excludes the after-tax impact of acquisition-related amortization and, for 2014, includes the after-tax impact of adjusted revenue.
Adjusted cash flow from operations is GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations and certain payments for contingent purchase price and incentive compensation programs associated with the 2010 acquisition of Capco.
Adjusted net earnings per diluted share, or adjusted EPS, is equal to adjusted net earnings divided by weighted average diluted shares outstanding.
Free cash flow is adjusted operating cash flow less capital expenditures. Free cash flow does not represent our residual cash flow available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure.
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. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
FIS is the world’s largest global provider dedicated to banking and
payments technologies. With a long history deeply rooted in the
financial services sector, FIS serves more than 14,000 institutions in
over 110 countries. Headquartered in
Forward-Looking Statements
This news release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about future revenue, organic revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”), earnings per share and margin expansion, as well as other statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.
Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include without limitation:
-
changes in general economic, business and political conditions,
including the possibility of intensified international hostilities,
acts of terrorism, and changes in either or both
the United States and international lending, capital and financial markets; - the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations;
- the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries;
- changes in the growth rates of the markets for our solutions;
- failures to adapt our solutions to changes in technology or in the marketplace;
- internal or external security breaches of our systems, including those relating to the theft of personal information and computer viruses affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events;
- the reaction of our current and potential customers to communications from us or our regulators regarding information security, risk management, internal audit or other matters;
- competitive pressures on pricing related to our solutions including the ability to attract new, or retain existing, customers;
- an operational or natural disaster at one of our major operations centers;
-
and other risks detailed in “Risk Factors” and other sections of the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2013 and other filings with theSEC .
Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.
Earnings Release Supplemental Financial Information
Exhibit A Consolidated Statements of Earnings - Unaudited for the three months ended March 31, 2014 and 2013
Exhibit B Consolidated Balance Sheets - Unaudited as of March 31, 2014 and December 31, 2013
Exhibit C Consolidated Statements of Cash Flows - Unaudited for the three months ended March 31, 2014 and 2013
Exhibit D Supplemental Non-GAAP Financial Information - Unaudited for the three months ended March 31, 2014 and 2013
Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the three months ended March 31, 2014 and 2013
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED | ||||||||
| (In millions, except per share data) | ||||||||
| Exhibit A | ||||||||
| Three months ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Processing and services revenues | $ | 1,520.3 | $ | 1,478.0 | ||||
| Cost of revenues | 1,050.0 | 1,008.0 | ||||||
| Gross profit | 470.3 | 470.0 | ||||||
| Selling, general and administrative expenses | 186.6 | 194.9 | ||||||
| Operating income | 283.7 | 275.1 | ||||||
| Other income (expense): | ||||||||
| Interest expense, net | (41.1 | ) | (51.7 | ) | ||||
| Other income (expense), net | (0.5 | ) | 5.1 | |||||
| Total other income (expense), net | (41.6 | ) | (46.6 | ) | ||||
| Earnings from continuing operations before income taxes | 242.1 | 228.5 | ||||||
| Provision for income taxes | 80.6 | 75.2 | ||||||
| Earnings from continuing operations, net of tax | 161.5 | 153.3 | ||||||
| Loss from discontinued operations, net of tax | (0.4 | ) | (3.9 | ) | ||||
| Net earnings | 161.1 | 149.4 | ||||||
| Net earnings attributable to noncontrolling interest | (6.6 | ) | (5.3 | ) | ||||
| Net earnings attributable to FIS common stockholders | $ | 154.5 | $ | 144.1 | ||||
| Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 0.54 | $ | 0.51 | ||||
| Net loss per share-basic from discontinued operations attributable to FIS common stockholders | — | (0.01 | ) | |||||
| Net earnings per share-basic attributable to FIS common stockholders * | $ | 0.54 | $ | 0.50 | ||||
| Weighted average shares outstanding-basic | 288.0 | 291.0 | ||||||
| Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 0.53 | $ | 0.50 | ||||
| Net loss per share-diluted from discontinued operations attributable to FIS common stockholders | — | (0.01 | ) | |||||
| Net earnings per share-diluted attributable to FIS common stockholders * | $ | 0.53 | $ | 0.49 | ||||
| Weighted average shares outstanding-diluted | 291.9 | 295.5 | ||||||
| Amounts attributable to FIS common stockholders: | ||||||||
| Earnings from continuing operations, net of tax | $ | 154.9 | $ | 148.0 | ||||
| Loss from discontinued operations, net of tax | (0.4 | ) | (3.9 | ) | ||||
| Net earnings attributable to FIS common stockholders | $ | 154.5 | $ | 144.1 | ||||
|
* Amounts may not sum due to rounding. |
||||||||
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS — UNAUDITED | ||||||||
| (In millions, except per share data) | ||||||||
| Exhibit B | ||||||||
| As of | As of | |||||||
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 737.7 | $ | 547.5 | ||||
| Settlement deposits | 444.7 | 327.4 | ||||||
| Trade receivables, net | 987.9 | 987.9 | ||||||
| Settlement receivables | 257.2 | 178.2 | ||||||
| Other receivables | 19.4 | 62.1 | ||||||
| Due from Brazilian venture partner | 34.9 | 35.8 | ||||||
| Prepaid expenses and other current assets | 153.7 | 154.1 | ||||||
| Deferred income taxes | 52.8 | 58.9 | ||||||
| Total current assets | 2,688.3 | 2,351.9 | ||||||
| Property and equipment, net | 449.2 | 439.0 | ||||||
| Goodwill | 8,500.0 | 8,500.0 | ||||||
| Intangible assets, net | 1,288.0 | 1,339.3 | ||||||
| Computer software, net | 861.1 | 856.5 | ||||||
| Deferred contract costs, net | 206.9 | 206.8 | ||||||
| Other noncurrent assets | 277.4 | 266.6 | ||||||
| Total assets | $ | 14,270.9 | $ | 13,960.1 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 653.2 | $ | 768.0 | ||||
| Due to Brazilian venture partner | 14.4 | 13.7 | ||||||
| Settlement payables | 717.0 | 518.6 | ||||||
| Current portion of long-term debt | 49.7 | 128.8 | ||||||
| Deferred revenues | 270.1 | 243.6 | ||||||
| Total current liabilities | 1,704.4 | 1,672.7 | ||||||
| Deferred revenues | 26.7 | 27.2 | ||||||
| Deferred income taxes | 810.7 | 823.6 | ||||||
| Long-term debt, excluding current portion | 4,728.9 | 4,339.8 | ||||||
| Due to Brazilian venture partner | 36.2 | 34.5 | ||||||
| Other long-term liabilities | 261.6 | 325.0 | ||||||
| Total liabilities | 7,568.5 | 7,222.8 | ||||||
| Equity: | ||||||||
| FIS stockholders’ equity: | ||||||||
| Preferred stock $0.01 par value | — | — | ||||||
| Common stock $0.01 par value | 3.9 | 3.9 | ||||||
| Additional paid in capital | 7,271.5 | 7,247.6 | ||||||
| Retained earnings | 2,427.6 | 2,341.9 | ||||||
| Accumulated other comprehensive earnings | 3.2 | (9.9 | ) | |||||
| Treasury stock $0.01 par value | (3,172.1 | ) | (3,003.0 | ) | ||||
| Total FIS stockholders’ equity | 6,534.1 | 6,580.5 | ||||||
| Noncontrolling interest | 168.3 | 156.8 | ||||||
| Total equity | 6,702.4 | 6,737.3 | ||||||
| Total liabilities and equity | $ | 14,270.9 | $ | 13,960.1 | ||||
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED | ||||||||
| (In millions) | ||||||||
| Exhibit C | ||||||||
| Three months ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 161.1 | $ | 149.4 | ||||
| Adjustment to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 152.6 | 153.2 | ||||||
| Amortization of debt issue costs | 2.6 | 2.8 | ||||||
| Gain on mFoundry | — | (9.2 | ) | |||||
| Stock-based compensation | 13.3 | 13.2 | ||||||
| Deferred income taxes | (6.7 | ) | (15.4 | ) | ||||
| Excess income tax benefit from exercise of stock options | (8.5 | ) | (4.0 | ) | ||||
| Other operating activities, net | (0.6 | ) | — | |||||
| Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | ||||||||
| Trade receivables | 15.3 | (12.0 | ) | |||||
| Settlement activity | 2.5 | (13.9 | ) | |||||
| Prepaid expenses and other assets | (13.0 | ) | (35.1 | ) | ||||
| Deferred contract costs | (16.6 | ) | (19.7 | ) | ||||
| Deferred revenue | 25.9 | (8.3 | ) | |||||
| Accounts payable, accrued liabilities and other liabilities | (105.3 | ) | 6.5 | |||||
| Net cash provided by operating activities | 222.6 | 207.5 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to property and equipment | (37.9 | ) | (31.0 | ) | ||||
| Additions to computer software | (52.0 | ) | (42.7 | ) | ||||
| Acquisitions, net of cash acquired and equity investments | — | (115.0 | ) | |||||
| Other investing activities, net | 8.5 | (7.0 | ) | |||||
| Net cash used in investing activities | (81.4 | ) | (195.7 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings | 1,839.0 | 2,206.3 | ||||||
| Repayment of borrowings and capital lease obligations | (1,529.6 | ) | (1,990.1 | ) | ||||
| Excess income tax benefit from exercise of stock options | 8.5 | 4.0 | ||||||
| Proceeds from exercise of stock options | 12.8 | 18.8 | ||||||
| Treasury stock activity | (203.1 | ) | (105.3 | ) | ||||
| Dividends paid | (69.5 | ) | (64.8 | ) | ||||
| Other financing activities, net | (15.7 | ) | (0.7 | ) | ||||
| Net cash provided by financing activities | 42.4 | 68.2 | ||||||
| Effect of foreign currency exchange rate changes on cash | 6.6 | (7.0 | ) | |||||
| Net increase in cash and cash equivalents | 190.2 | 73.0 | ||||||
| Cash and cash equivalents, at beginning of period | 547.5 | 517.6 | ||||||
| Cash and cash equivalents, at end of period | $ | 737.7 | $ | 590.6 | ||||
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||||||||||||||
| SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Exhibit D | ||||||||||||||||||||
| Three months ended March 31, 2014 | ||||||||||||||||||||
|
Financial
Solutions |
Payment
Solutions |
International
Solutions |
Corporate
and Other |
Consolidated | ||||||||||||||||
| Processing and services revenue | $ | 586.8 | $ | 619.5 | $ | 314.4 | $ | (0.4 | ) | $ | 1,520.3 | |||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Contract settlement | — | 9.0 | — | — | 9.0 | |||||||||||||||
| Adjusted processing and services revenue | $ | 586.8 | $ | 628.5 | $ | 314.4 | $ | (0.4 | ) | $ | 1,529.3 | |||||||||
| Operating income (loss) | $ | 187.0 | $ | 235.5 | $ | 39.4 | $ | (178.2 | ) | $ | 283.7 | |||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Contract settlement | — | 9.0 | — | — | 9.0 | |||||||||||||||
| Purchase price amortization | — | — | 0.1 | 54.8 | 54.9 | |||||||||||||||
| Non-GAAP operating income (loss) | 187.0 | 244.5 | 39.5 | (123.4 | ) | 347.6 | ||||||||||||||
| Depreciation and amortization from continuing operations | 39.9 | 19.9 | 19.5 | 18.4 | 97.7 | |||||||||||||||
| Adjusted EBITDA | $ | 226.9 | $ | 264.4 | $ | 59.0 | $ | (105.0 | ) | $ | 445.3 | |||||||||
| Non-GAAP operating margin | 31.9 | % | 38.9 | % | 12.6 | % | N/M | 22.7 | % | |||||||||||
| Adjusted EBITDA margin | 38.7 | % | 42.1 | % | 18.8 | % | N/M | 29.1 | % | |||||||||||
| Three months ended March 31, 2013 | ||||||||||||||||||||
|
Financial
Solutions |
Payment
Solutions |
International
Solutions |
Corporate
and Other |
Consolidated | ||||||||||||||||
| Processing and services revenue | $ | 575.3 | $ | 611.8 | $ | 291.6 | $ | (0.7 | ) | $ | 1,478.0 | |||||||||
| Operating income (loss) | $ | 188.4 | $ | 238.5 | $ | 40.3 | $ | (192.1 | ) | $ | 275.1 | |||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Purchase price amortization | — | — | 0.1 | 60.2 | 60.3 | |||||||||||||||
| Non-GAAP operating income (loss) | 188.4 | 238.5 | 40.4 | (131.9 | ) | 335.4 | ||||||||||||||
| Depreciation and amortization from continuing operations | 39.2 | 19.8 | 18.7 | 15.2 | 92.9 | |||||||||||||||
| Adjusted EBITDA | $ | 227.6 | $ | 258.3 | $ | 59.1 | $ | (116.7 | ) | $ | 428.3 | |||||||||
| Non-GAAP operating margin | 32.7 | % | 39.0 | % | 13.9 | % | N/M | 22.7 | % | |||||||||||
| Adjusted EBITDA margin | 39.6 | % | 42.2 | % | 20.3 | % | N/M | 29.0 | % | |||||||||||
| Total revenue growth from prior year period | ||||||||||||||||||||
| Three months ended March 31, 2014 | 2.0 | % | 2.7 | % | 7.8 | % | N/M | 3.5 | % | |||||||||||
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||||||||||||||||||||
| SUPPLEMENTAL NON-GAAP ORGANIC REVENUE MEASURES — UNAUDITED | ||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Exhibit D (continued) | ||||||||||||||||||||||||||
| Three months ended March 31, | ||||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||||
| Constant | Adjusted | Organic | ||||||||||||||||||||||||
| Currency | In Year | Base | Revenue | |||||||||||||||||||||||
| Revenue (1) | FX | Revenue | Revenue | Acquisitions | Revenue | Growth | ||||||||||||||||||||
| Financial Solutions | $ | 586.8 | $ | 1.2 | $ | 588.0 | $ | 575.3 | $ | 3.8 | $ | 579.1 | 1.5 | % | ||||||||||||
| Payment Solutions | 628.5 | 0.5 | 629.0 | 611.8 | — | 611.8 | 2.8 | % | ||||||||||||||||||
| International Solutions | 314.4 | 14.0 | 328.4 | 291.6 | 5.8 | 297.4 | 10.4 | % | ||||||||||||||||||
| Corporate and Other | (0.4 | ) | — | (0.4 | ) | (0.7 | ) | — | (0.7 | ) | N/M | |||||||||||||||
|
Total processing and services
revenue |
$ | 1,529.3 | $ | 15.7 | $ | 1,545.0 | $ | 1,478.0 | $ | 9.6 | $ | 1,487.6 | 3.9 | % | ||||||||||||
|
|
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|
(1) As adjusted. See note (1) for exhibit E. |
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| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||
| SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED | ||||||||
| (In millions) | ||||||||
| Exhibit D (continued) | ||||||||
| Three months ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Net cash provided by operating activities | $ | 222.6 | $ | 207.5 | ||||
| Non-GAAP adjustments: | ||||||||
| Capco acquisition related payments (1) | 28.0 | — | ||||||
| Settlement activity | (2.5 | ) | 13.9 | |||||
| Adjusted cash flows from operations | 248.1 | 221.4 | ||||||
| Capital expenditures | (89.9 | ) | (73.7 | ) | ||||
| Free cash flow | $ | 158.2 | $ | 147.7 | ||||
(1) Free cash flow for the three months ended
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | |||||||
| SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED | |||||||
| (In millions) | |||||||
| Exhibit E | |||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2014 | 2013 | ||||||
| Net earnings from continuing operations attributable to FIS | $ | 154.9 | $ | 148.0 | |||
| Plus provision for income taxes | 80.6 | 75.2 | |||||
| Interest expense, net | 41.1 | 51.7 | |||||
| Other, net | 7.1 | 0.2 | |||||
| Operating income | 283.7 | 275.1 | |||||
| Non-GAAP adjustments: | |||||||
| Contract settlement | 9.0 | — | |||||
| Purchase price amortization | 54.9 | 60.3 | |||||
| Non-GAAP operating income | 347.6 | 335.4 | |||||
| Depreciation and amortization from continuing operations | 97.7 | 92.9 | |||||
| Adjusted EBITDA | $ | 445.3 | $ | 428.3 | |||
| FIDELITY NATIONAL INFORMATION SERVICES, INC. | ||||||||||||||||||||
| SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Exhibit E (continued) | ||||||||||||||||||||
| Three months ended March 31, 2014 | ||||||||||||||||||||
| Purchase | ||||||||||||||||||||
| Contract | Price | |||||||||||||||||||
| GAAP | Settlement (1) | Subtotal | Amort. (3) | Non-GAAP | ||||||||||||||||
| Processing and services revenue | $ | 1,520.3 | $ | 9.0 | $ | 1,529.3 | $ | — | $ | 1,529.3 | ||||||||||
| Cost of revenues | 1,050.0 | — | 1,050.0 | (54.9 | ) | 995.1 | ||||||||||||||
| Gross profit | 470.3 | 9.0 | 479.3 | 54.9 | 534.2 | |||||||||||||||
| Selling, general and administrative | 186.6 | — | 186.6 | — | 186.6 | |||||||||||||||
| Operating income | 283.7 | 9.0 | 292.7 | 54.9 | 347.6 | |||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest income (expense), net | (41.1 | ) | — | (41.1 | ) | — | (41.1 | ) | ||||||||||||
| Other income (expense), net | (0.5 | ) | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||
| Total other income (expense) | (41.6 | ) | — | (41.6 | ) | — | (41.6 | ) | ||||||||||||
| Earnings (loss) from continuing operations before income taxes | 242.1 | 9.0 | 251.1 | 54.9 | 306.0 | |||||||||||||||
| Provision for income taxes | 80.6 | 3.0 | 83.6 | 18.4 | 102.0 | |||||||||||||||
| Earnings (loss) from continuing operations, net of tax | 161.5 | 6.0 | 167.5 | 36.5 | 204.0 | |||||||||||||||
| Earnings (loss) from discontinued operations, net of tax (4) | (0.4 | ) | — | (0.4 | ) | — | (0.4 | ) | ||||||||||||
| Net earnings (loss) | 161.1 | 6.0 | 167.1 | 36.5 | 203.6 | |||||||||||||||
| Net (earnings) loss attributable to noncontrolling interest | (6.6 | ) | — | (6.6 | ) | — | (6.6 | ) | ||||||||||||
| Net earnings (loss) attributable to FIS common stockholders | $ | 154.5 | $ | 6.0 | $ | 160.5 | $ | 36.5 | $ | 197.0 | ||||||||||
| Amounts attributable to FIS common stockholders | ||||||||||||||||||||
| Earnings (loss) from continuing operations, net of tax | $ | 154.9 | $ | 6.0 | $ | 160.9 | $ | 36.5 | $ | 197.4 | ||||||||||
| Earnings (loss) from discontinued operations, net of tax (4) | (0.4 | ) | — | (0.4 | ) | — | (0.4 | ) | ||||||||||||
| Net earnings (loss) attributable to FIS common stockholders | $ | 154.5 | $ | 6.0 | $ | 160.5 | $ | 36.5 | $ | 197.0 | ||||||||||
| Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 0.53 | $ | 0.02 | $ | 0.55 | $ | 0.13 | $ | 0.68 | ||||||||||
| Weighted average shares outstanding — diluted | 291.9 | 291.9 | 291.9 | 291.9 | 291.9 | |||||||||||||||
| Effective tax rate | 33 | % | 33 | % | ||||||||||||||||
| Supplemental information: | ||||||||||||||||||||
| Depreciation and amortization | $ | 152.6 | (54.9 | ) | $ | 97.7 | ||||||||||||||
| Stock compensation expense, excluding acceleration charges | $ | 13.3 | ||||||||||||||||||
| Stock acceleration charges | — | |||||||||||||||||||
| Total stock compensation expense | $ | 13.3 | ||||||||||||||||||
| * Amounts may not sum due to rounding. | ||||||||||||||||||||
| See accompanying notes. | ||||||||||||||||||||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. |
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|
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED |
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|
(In millions) |
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| Exhibit E (continued) | ||||||||||||||||||||
| Three months ended March 31, 2013 | ||||||||||||||||||||
| Stock and Other | Purchase | |||||||||||||||||||
| Gain on | Price | |||||||||||||||||||
| GAAP | mFoundry (2) | Subtotal | Amort. (3) | Non-GAAP | ||||||||||||||||
| Processing and services revenue | $ | 1,478.0 | $ | — | $ | 1,478.0 | $ | — | $ | 1,478.0 | ||||||||||
| Cost of revenues | 1,008.0 | — | 1,008.0 | (60.3 | ) | 947.7 | ||||||||||||||
| Gross profit | 470.0 | — | 470.0 | 60.3 | 530.3 | |||||||||||||||
| Selling, general and administrative | 194.9 | — | 194.9 | — | 194.9 | |||||||||||||||
| Operating income | 275.1 | — | 275.1 | 60.3 | 335.4 | |||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest income (expense), net | (51.7 | ) | — | (51.7 | ) | — | (51.7 | ) | ||||||||||||
| Other income (expense), net | 5.1 | (9.2 | ) | (4.1 | ) | — | (4.1 | ) | ||||||||||||
| Total other income (expense) | (46.6 | ) | (9.2 | ) | (55.8 | ) | — | (55.8 | ) | |||||||||||
| Earnings (loss) from continuing operations before income taxes | 228.5 | (9.2 | ) | 219.3 | 60.3 | 279.6 | ||||||||||||||
| Provision for income taxes | 75.2 | (3.0 | ) | 72.2 | 19.8 | 92.0 | ||||||||||||||
| Earnings (loss) from continuing operations, net of tax | 153.3 | (6.2 | ) | 147.1 | 40.5 | 187.6 | ||||||||||||||
| Earnings (loss) from discontinued operations, net of tax (4) | (3.9 | ) | — | (3.9 | ) | — | (3.9 | ) | ||||||||||||
| Net earnings (loss) | 149.4 | (6.2 | ) | 143.2 | 40.5 | 183.7 | ||||||||||||||
| Net (earnings) loss attributable to noncontrolling interest | (5.3 | ) | — | (5.3 | ) | — | (5.3 | ) | ||||||||||||
| Net earnings (loss) attributable to FIS common stockholders | $ | 144.1 | $ | (6.2 | ) | $ | 137.9 | $ | 40.5 | $ | 178.4 | |||||||||
| Amounts attributable to FIS common stockholders | ||||||||||||||||||||
| Earnings (loss) from continuing operations, net of tax | $ | 148.0 | $ | (6.2 | ) | $ | 141.8 | $ | 40.5 | $ | 182.3 | |||||||||
| Earnings (loss) from discontinued operations, net of tax (4) | (3.9 | ) | — | (3.9 | ) | — | (3.9 | ) | ||||||||||||
| Net earnings (loss) attributable to FIS common stockholders | $ | 144.1 | $ | (6.2 | ) | $ | 137.9 | $ | 40.5 | $ | 178.4 | |||||||||
| Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 0.50 | $ | (0.02 | ) | $ | 0.48 | $ | 0.14 | $ | 0.62 | |||||||||
| Weighted average shares outstanding — diluted | 295.5 | 295.5 | 295.5 | 295.5 | 295.5 | |||||||||||||||
| Effective tax rate | 33 | % | 33 | % | ||||||||||||||||
| Supplemental information: | ||||||||||||||||||||
| Depreciation and amortization | $ | 153.2 | (60.3 | ) | $ | 92.9 | ||||||||||||||
| Stock compensation expense, excluding acceleration charges | $ | 13.2 | ||||||||||||||||||
| Stock acceleration charges | — | |||||||||||||||||||
| Total stock compensation expense | $ | 13.2 | ||||||||||||||||||
| * Amounts may not sum due to rounding. | ||||||||||||||||||||
| See accompanying notes. | ||||||||||||||||||||
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2014 and 2013.
The adjustments are as follows:
(1) The revenue adjustment in this column represents a cash settlement for the extinguishment of certain contractual minimums with a reseller. Although the 2014 cash settlement has no contract performance obligation, revenue is amortized in this circumstance over the remaining relationship with the reseller.
(2) Gain resulting from the purchase of the remaining shares of mFoundry, Inc., representing the difference between the fair value and carrying value of the minority interest investment previously held.
(3) This column represents purchase price amortization expense on intangible assets acquired through various Company acquisitions.
(4) During the third quarter of 2010, we determined that Fidelity
National Participacoes Ltda. ("Participacoes"), our item processing and
remittance services business in
Source:
Ellyn Raftery, 904.438.6083
Chief Marketing Officer
FIS Global
Marketing and Communications
ellyn.raftery@fisglobal.com
or
Nancy
Murphy, 904.438.6192
Senior Vice President
FIS Investor
Relations
nancy.murphy@fisglobal.com