FIS Reports Strong Earnings and Raises Full Year Outlook
JACKSONVILLE, Fla., July 28, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Fidelity National Information Services, Inc. (NYSE: FIS), a leading global provider of technology services to financial institutions, today reported financial results for the quarter ended June 30, 2009.
Consolidated revenue of $834.8 million declined 4.0% in U.S. dollars and 0.4% in constant currency compared to $869.7 million in the second quarter of 2008. Non-GAAP adjusted net earnings increased 23.5% to $0.42 per share in U.S. dollars, compared to $0.34 in the prior year, and increased 26.5% in constant currency. The increase is due to improved operating performance across all major business lines and lower net interest expense. GAAP net earnings from continuing operations attributable to common stockholders totaled $59.6 million, or $0.31 per share, compared to $0.07 per share in the prior period. Free cash flow (cash from operations less capital expenditures) was $124.6 million compared with $86.0 million in the prior year quarter.
"FIS reported another quarter of excellent growth in earnings, margin expansion and strong free cash flow. Our management team has done an excellent job navigating through the current difficult market conditions, and in further strengthening FIS's position as a premier global organization," stated William P. Foley, II, executive chairman. "Importantly, despite the difficult market environment, we remain highly focused on expanding customer relationships, and we continue to pursue growth opportunities that leverage our existing operations and drive long-term value for our shareholders."
"We are very pleased with our strong second quarter performance, which included a 250 basis point improvement in margin and once again, outstanding free cash flow. The strategic initiatives implemented over the last several quarters are producing tangible results, and we remain confident in our ability to continue to generate strong operating efficiencies and leverage," added Lee A. Kennedy, president and chief executive officer. "Based on results to date and our outlook for the remainder of 2009, we are increasing our full year earnings outlook to $1.71 to $1.75 per share from our previous guidance of $1.60 to $1.66 per share."
Supplemental Information
Consolidated revenue in the second quarter of 2009 was $834.8 million, compared with $869.7 in the prior year quarter, a decrease of 4.0% in U.S. dollars. Excluding a $31.2 million unfavorable impact of foreign currency resulting from a strengthening of the U.S. dollar, consolidated revenue declined 0.4%.
- Financial Solutions revenue declined 1.4% to $277.0 million compared to $280.8 million in the prior period, as increased demand for risk management and technology outsourcing services was offset by lower software license and professional services revenue.
- Payment Solutions revenue declined 0.9% to $380.0 million compared to $383.4 million in the 2008 quarter, as growth in debit was offset by declines in item processing, credit card and retail check services.
- International revenue declined 13.7% to $178.4 million in U.S. dollars, compared to $206.8 million in the prior year quarter. The decline was driven by the strengthening of the U.S. dollar and exceptionally strong revenue in the second quarter of 2008. International revenue increased 1.4% in constant currency, driven by 5.1% growth in payments. Financial solutions revenue declined 4.3% due to a reduction in license and professional services revenue related to significant new customer implementations in the second quarter of 2008.
Adjusted EBITDA increased 6.9% to $211.6 million in the second quarter of 2009 compared to $198.0 million in the 2008 quarter. The adjusted EBITDA margin improved 250 basis points to 25.3% compared to 22.8% in the prior-year quarter, driven by increased operating leverage and ongoing expense management across all operating segments.
- Financial Solutions EBITDA increased 15.0% to $119.4 million, and the margin improved 610 basis points to 43.1% compared to 37.0% in the prior year.
- Payment Solutions EBITDA increased 8.2% to $105.2 million, and the margin increased 230 basis points to 27.7%.
- International EBITDA increased 29.4% to $29.5 million. Productivity improvements more than offset a decline in high margin software sales and a $6.5 million unfavorable currency impact. The EBITDA margin improved 550 basis points to 16.5% compared to 11.0% in the prior year.
The effective tax rate in the second quarter of 2009 was 34.5% compared to 32.0% in the second quarter of 2008.
Balance Sheet
FIS had $227.9 million in cash and cash equivalents at June 30, 2009. The company repaid $168.4 million of debt during the second quarter, reducing total debt outstanding to $2.3 billion, of which $2.1 billion has been swapped to fixed interest rates. The effective interest rate was 5.5% as of June 30, 2009.
Capital expenditures totaled $50.9 million in the quarter, compared to $52.0 million spent in the prior year.
Acquisition Update
On April 1, 2009, FIS announced plans to acquire Metavante Technologies, Inc. (NYSE:MV). FIS expects to complete the transaction in the fourth quarter of 2009, subject to shareholder and regulatory approvals and the satisfaction of customary closing conditions.
2009 Outlook
Based on FIS's results in the first six months and the outlook for the remainder of the year, management expects to achieve adjusted net earnings of $1.71 to $1.75 per share in 2009, compared to the previous guidance of $1.60 to $1.66 per share. The company expects constant currency revenue to increase modestly in 2009 compared to 2008, and expects reported revenue to decline slightly compared to 2008. Free cash flow is expected to exceed the high end of management's previous guidance of $410 million to $430 million. This guidance does not include Metavante's operating results. FIS will update its fiscal 2009 guidance to include Metavante following the completion of the transaction.
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. These non-GAAP measures include earnings before interest, taxes and amortization (EBITDA), adjusted net earnings, and free cash flow. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges, acquisition related amortization and certain other costs. 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's non-GAAP measures may be calculated differently from similarly-titled measures of other companies. A reconciliation of these non-GAAP measures to related GAAP measures is included in the press release attachments.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss second quarter 2009 results on Tuesday, July 28, 2009, beginning at 5:00 p.m. Eastern daylight time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fidelityinfoservices.com and click on "Events and Multimedia." A webcast replay will be available on FIS' Investor Relations website, and a telephone replay will be available through August 11, 2009, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 106703. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fidelityinfoservices.com.
About Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (NYSE: FIS), a member of the S&P 500 Index, is a leading provider of core processing for financial institutions; card issuer and transaction processing services; and outsourcing services to financial institutions and retailers. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10 and was ranked the number one banking technology provider in the world by American Banker and the research firm Financial Insights in the 2008 FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 14,000 financial institutions in more than 90 countries worldwide. For more information on Fidelity National Information Services, please visit www.fidelityinfoservices.com.
Forward-Looking Statements
This press release contains forward-looking statements, including certain plans, expectations, goals and projections, and statements about FIS's acquisition of Metavante, which are subject to numerous assumptions, 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. The risks and uncertainties that forward-looking statements are subject to include, without limitation: changes in general economic, business and political conditions, including changes in the financial markets; the effect of governmental regulations, including the possibility that there are unexpected delays in obtaining regulatory approvals; the failure to obtain required transaction approvals from FIS's and Metavante's shareholders; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in the banking, retail and financial services industries or due to financial failures suffered by firms in those industries; actions that may be taken by the competitors, customers and suppliers of FIS or Metavante that may cause the transaction to be delayed or not completed; failures to adapt our services to changes in technology or in the marketplace; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions; competitive pressures on product pricing and services; 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. All forward-looking statements included in this document are based on information available at the time of the document. FIS assumes any obligation to update any forward-looking statement.
FIS-e
Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
July 28,2009
(Unaudited)
Exhibit A Consolidated Statements of Earnings for the Three and Six
Months ended June 30, 2009 and 2008
Exhibit B Consolidated Balance Sheets as of June 30, 2009 and
December 31, 2008
Exhibit C Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 2009 and 2008
Exhibit D Supplemental Non-GAAP Financial Information for the Three and
Six Months Ended June 30, 2009 and 2008
Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for
the Three and Six Months Ended June 30, 2009 and 2008
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In millions, except per share data)
Three months Six months
ended ended
June 30, June 30,
------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
Processing and services revenues $834.8 $869.7 $1,632.6 $1,700.0
Cost of revenues 602.7 674.0 1,199.9 1,322.7
Selling, general and administrative
expenses 93.2 117.9 189.3 229.0
Research and development costs 21.5 19.9 44.1 39.2
---- ---- ---- ----
Operating income 117.4 57.9 199.3 109.1
----- ---- ----- -----
Other income (expense):
Interest income 0.5 1.5 1.3 4.3
Interest expense (31.8) (43.6) (63.8) (82.4)
Other income (expense) 5.5 1.3 6.7 0.1
--- --- --- ---
Total other income (expense) (25.8) (40.8) (55.8) (78.0)
---- ---- ---- ----
Earnings from continuing operations
before income taxes 91.6 17.1 143.5 31.1
Provision for income taxes 31.6 3.3 49.5 6.6
Equity in losses of
unconsolidated entities - (0.2) - (0.2)
--- --- --- ---
Net earnings from continuing
operations 60.0 13.6 94.0 24.3
(Loss) earnings from discontinued
operations, net of tax (0.4) 59.2 (1.7) 118.8
--- ---- --- -----
Net earnings 59.6 72.8 92.3 143.1
Net earnings attributable to
noncontrolling interest (0.4) (0.9) (0.1) (0.7)
--- --- --- ---
Net earnings attributable
to FIS $59.2 $71.9 $92.2 $142.4
===== ===== ===== ======
Net earnings per share-basic
from continuing operations
attributable to FIS common
stockholders * $0.31 $0.07 $0.49 $0.13
Net earnings (loss) per share-basic
from discontinued operations
attributable to FIS common
stockholders * (0.00) 0.30 (0.01) 0.61
---- ---- ---- ----
Net earnings per share-basic
attributable to FIS
common stockholders * $0.31 $0.37 $0.48 $0.74
===== ===== ===== =====
Weighted average shares
outstanding-basic 190.3 192.5 190.2 193.5
===== ===== ===== =====
Net earnings per share-diluted
from continuing operations
attributable to FIS common
stockholders * $0.31 $0.07 $0.49 $0.12
Net earnings (loss) per share-
diluted from discontinued operations
attributable to FIS common
stockholders * (0.00) 0.30 (0.01) 0.61
---- ---- ---- ----
Net earnings per share-diluted
attributable to FIS
common stockholders * $0.31 $0.37 $0.48 $0.73
===== ===== ===== =====
Weighted average shares
outstanding-diluted 192.7 194.4 192.2 195.5
===== ===== ===== =====
Amounts attributable to FIS
common stockholders:
Net earnings from continuing
operations, net of tax $59.6 $13.3 $93.9 $24.2
(Loss) earnings from discontinued
operations, net of tax (0.4) 58.6 (1.7) 118.2
--- ---- --- -----
Net earnings attributable
to FIS common stockholders $59.2 $71.9 $92.2 $142.4
===== ===== ===== ======
* Amounts may not sum due to rounding.
Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
As of As of
June 30, December 31,
2009 2008
---- ----
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $227.9 $220.9
Settlement deposits 38.0 31.4
Trade receivables, net 521.8 538.1
Settlement receivables 38.9 52.1
Other receivables 77.5 121.1
Receivable from FNF and LPS 11.4 10.1
Prepaid expenses and other current
assets 98.9 115.1
Deferred income taxes 80.5 77.4
---- ----
Total current assets 1,094.9 1,166.2
Property and equipment, net of
accumulated depreciation and
amortization 271.4 272.6
Goodwill 4,200.2 4,194.0
Other intangible assets, net of
accumulated amortization 905.4 924.3
Computer software, net of accumulated
amortization 640.5 617.0
Deferred contract costs 249.0 241.2
Long-term notes receivable from FNF 5.1 5.5
Other noncurrent assets 73.3 79.6
---- ----
Total assets $7,439.8 $7,500.4
======== ========
Liabilities and Equity
Current liabilities:
Accounts payable and accrued
liabilities $458.1 $444.8
Settlement payables 81.6 83.3
Current portion of long-term debt 158.1 105.5
Deferred revenues 184.1 182.9
----- -----
Total current liabilities 881.9 816.5
Deferred revenues 89.1 86.7
Deferred income taxes 331.2 332.7
Long-term debt, excluding current
portion 2,134.0 2,409.0
Other long-term liabilities 115.3 158.5
----- -----
Total liabilities 3,551.5 3,803.4
------- -------
FIS stockholders' equity:
Preferred stock $0.01 par value - -
Common stock $0.01 par value 2.0 2.0
Additional paid in capital 2,964.6 2,959.8
Retained earnings 1,149.2 1,076.1
Accumulated other comprehensive
(loss) earnings (15.7) (102.3)
Treasury stock (383.2) (402.8)
----- -----
Total FIS stockholders' equity 3,716.9 3,532.8
Noncontrolling interest 171.4 164.2
----- -----
Total equity 3,888.3 3,697.0
------- -------
Total liabilities and equity $7,439.8 $7,500.4
======== ========
Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(In millions)
Six months ended
June 30,
----------------
2009 2008
---- ----
Cash flows from operating activities:
Net earnings $92.3 $143.1
Adjustment to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 184.1 244.5
Amortization of debt issue costs 1.7 2.9
Net gain on sale of non-strategic
businesses - (1.0)
Stock-based compensation cost 18.3 42.2
Deferred income taxes (31.8) 3.0
Income tax benefit from exercise of stock
options (0.1) (0.9)
Equity in losses of unconsolidated entities - 2.3
Changes in assets and liabilities, net of
effects from acquisitions:
Net decrease (increase) in trade
receivables 93.8 (58.2)
Net decrease (increase) in prepaid
expenses and other assets 19.3 (6.7)
Net additions to deferred contract costs (25.3) (39.5)
Net increase in deferred revenue 2.5 15.7
Net decrease in accounts payable,
accrued liabilities and other liabilities (23.7) (104.6)
---- -----
Net cash provided by operating activities 331.1 242.8
----- -----
Cash flows from investing activities:
Additions to property and equipment (27.1) (43.9)
Additions to capitalized software (69.1) (111.7)
Net proceeds from sale of company assets - 33.5
Acquisitions, net of cash acquired (3.8) (17.4)
Other investing activities - (4.7)
- ----
Net cash used in investing activities (100.0) (144.2)
----- -----
Cash flows from financing activities:
Borrowings 1,198.7 2,699.6
Debt service payments (1,420.1) (2,704.5)
Dividends paid (19.1) (19.3)
Income tax benefit from exercise of stock
options 0.1 0.9
Stock options exercised 6.0 11.5
Treasury stock purchases - (236.2)
- -----
Net cash used in financing activities (234.4) (248.0)
----- -----
Effect of foreign currency exchange rates on
cash 10.3 1.1
---- ---
Net increase (decrease) in cash and cash
equivalents 7.0 (148.3)
Cash and cash equivalents, at beginning of
period 220.9 355.3
----- -----
Cash and cash equivalents, at end of period $227.9 $207.0
====== ======
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(In millions)
1. Revenue, EBIT and EBITDA
Three Months Ended June 30, 2009
--------------------------------
Corporate
Financial Payment Inter- and Consoli-
Solutions Solutions national Other dated
--------- --------- -------- --------- --------
Revenue from
Continuing
Operations $277.0 $380.0 $178.4 $(0.6) $834.8
Operating Income $90.7 $94.4 $14.9 $(82.6) $117.4
M&A, Restructuring
and Integration Costs - - - 2.1 2.1
--- --- --- --- ---
EBIT, as adjusted $90.7 $94.4 $14.9 $(80.5) $119.5
===== ===== ===== ====== ======
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 28.7 10.8 14.6 38.0 92.1
---- ---- ---- ---- ----
EBITDA, as
adjusted $119.4 $105.2 $29.5 $(42.5) $211.6
====== ====== ===== ====== ======
EBIT Margin, as
adjusted 32.7% 24.8% 8.4% N/M% 14.3%
==== ==== === === ====
EBITDA Margin, as
adjusted 43.1% 27.7% 16.5% N/M% 25.3%
==== ==== ==== === ====
Three Months Ended June 30, 2008
--------------------------------
Corporate
Financial Payment Inter- and Consoli-
Solutions Solutions national Other dated
--------- --------- -------- --------- --------
Revenue from
Continuing
Operations $280.8 $383.4 $206.8 $(1.3) $869.7
Operating Income $77.9 $87.5 $7.6 $(115.1) $57.9
M&A, Restructuring
and Integration
Costs - - - 29.1 29.1
Corporate Costs
Non - Disc. Ops - - - 9.0 9.0
LPS Spin-off Costs - - - 5.6 5.6
--- --- --- --- ---
EBIT, as adjusted $77.9 $87.5 $7.6 $(71.4) $101.6
===== ===== ==== ====== ======
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 25.9 9.7 15.2 45.6 96.4
---- --- ---- ---- ----
EBITDA Margin, as
adjusted $103.8 $97.2 $22.8 $(25.8) $198.0
====== ===== ===== ====== ======
EBIT Margin, as
adjusted 27.7% 22.8% 3.7% N/M% 11.7%
==== ==== === === ====
EBITDA Margin, as
adjusted 37.0% 25.4% 11.0% N/M% 22.8%
==== ==== ==== === ====
Total Revenue Growth from
Prior Year Period
Three Months Ended
June 30, 2009 -1.4% -0.9% -13.7% N/M% -4.0%
=== === ==== === ===
Three Months Ended
June 30, 2008 13.5% 25.7% 44.3% N/M% 25.1%
==== ==== ==== === ====
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(In millions)
1. Revenue, EBIT and EBITDA
Six Months Ended June 30, 2009
-------------------------------------------------
Corporate
Financial Payment Inter- and Consoli-
Solutions Solutions national Other dated
--------- --------- -------- --------- --------
Revenue from
Continuing
Operations $548.3 $744.7 $340.7 $(1.1) $1,632.6
Operating Income $164.3 $178.5 $25.1 $(168.6) $199.3
M&A, Restructuring
and Integration
Costs - - - 9.4 9.4
--- --- --- --- ---
EBIT, as adjusted $164.3 $178.5 $25.1 $(159.2) $208.7
====== ====== ===== ======= ======
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 57.1 21.9 27.8 77.3 184.1
---- ---- ---- ---- -----
EBITDA, as
adjusted $221.4 $200.4 $52.9 $(81.9) $392.8
====== ====== ===== ====== ======
EBIT Margin, as
adjusted 30.0% 24.0% 7.4% N/M% 12.8%
==== ==== === === ====
EBITDA Margin, as
adjusted 40.4% 26.9% 15.5% N/M% 24.1%
==== ==== ==== === ====
Six Months Ended June 30, 2008
------------------------------
Corporate
Financial Payment Inter- and Consoli-
Solutions Solutions national Other dated
--------- --------- -------- --------- --------
Revenue from
Operations $561.2 $756.7 $383.7 $(1.6) $1,700.0
Operating Income $147.4 $158.4 $19.8 $(216.5) $109.1
M&A, Restructuring
and Integration Costs - - - 44.1 44.1
Corporate Costs
Non - Disc. Ops - - - 18.0 18.0
LPS Spin-off Costs - - - 8.5 8.5
--- --- --- --- ---
EBIT, as adjusted $147.4 $158.4 $19.8 $(145.9) $179.7
====== ====== ===== ======= ======
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 61.5 24.2 28.6 84.0 198.3
---- ---- ---- ---- -----
EBITDA, as
adjusted $208.9 $182.6 $48.4 $(61.9) $378.0
====== ====== ===== ====== ======
EBIT Margin, as
adjusted 26.3% 20.9% 5.2% N/M% 10.6%
==== ==== === === ====
EBITDA Margin, as
adjusted 37.2% 24.1% 12.6% N/M% 22.2%
==== ==== ==== === ====
Total Revenue Growth
from Prior Year Period
Six Months Ended
June 30, 2009 -2.3% -1.6% -11.2% N/M% -4.0%
==== ==== ===== === ====
Six Months Ended
June 30, 2008 16.7% 26.3% 36.3% N/M% 25.0%
==== ==== ==== === ====
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF PRO FORMA TO ADJUSTED PRO FORMA CASH FLOW MEASURES
- UNAUDITED
(In millions)
Three Months Six Months
Ended Ended
June 30, 2009 June 30, 2009
--------------------- ---------------------
GAAP Adj Adjusted GAAP Adj Adjusted
---- --- -------- ---- --- --------
Cash flows from operating
activities:
Net earnings (2) $59.6 $1.0 $60.6 $92.3 $6.0 $98.3
Adjustments to reconcile
net earnings
to net cash provided
by operating activities:
Non-cash adjustments 69.0 - 69.0 172.2 - 172.2
Working capital
adjustments (3) 39.9 6.0 45.9 66.6 3.0 69.6
---- --- ---- ---- --- ----
Net cash provided
by operating
activities 168.5 7.0 175.5 331.1 9.0 340.1
Capital expenditures (50.9) - (50.9) (96.2) - (96.2)
---- --- ---- ---- --- ----
Net free cash flow $117.6 $7.0 $124.6 $234.9 $9.0 $243.9
====== ==== ====== ====== ==== ======
Three Months Six Months
Ended Ended
June 30, 2008 June 30, 2008
--------------------- ---------------------
Pro Adj Pro Pro Adj Pro
forma (1) Adj forma forma (1) Adj forma
-------- --- -------- --------- --- -------
Cash flows from
operating activities:
Net earnings (4) $15.0 $29.0 $44.0 $31.0 $37.0 $68.0
Adjustments to reconcile
net earnings
to net cash provided
by operating
activities:
Non-cash adjustments 119.0 - 119.0 233.0 - 233.0
Working capital
adjustments (3) (43.0) 18.0 (25.0) (145.0) 65.0 (80.0)
----- ---- ----- ------ ---- -----
Net cash provided
by operating
activities 91.0 47.0 138.0 119.0 102.0 221.0
Capital expenditures (52.0) - (52.0) (130.0) - (130.0)
---- --- ---- ----- --- -----
Net free cash flow $39.0 $47.0 $86.0 $(11.0) $102.0 $91.0
===== ===== ===== ====== ====== =====
(1) Pro forma cash flows are presented as if the LPS spin-off was
completed on January 1, 2008 and represents FIS on a post-spin basis.
(2) Adjustments to Net Earnings reflect the elimination of the after-tax
impact of non-recurring M&A and related integration costs.
(3) Adjustments to working capital reflect elimination of settlement of
various acquisition related liabilities and for the 2009 period,
the elimination of current accruals related to the announced
acquisition of Metavante.
(4) Adjustments to Net Earnings reflect the elimination of the after-tax
impact of non-recurring M&A and related integration costs, costs
associated with the LPS spin-off, restructuring costs and the
elimination of corporate costs attributable to LPS.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
GAAP Non-GAAP
Three Months M&A Three Months
Ended Restructuring Purchase Ended
June 30, And Price June 30,
2009 Integration Sub- Amortiza- 2009
(Unaudited) Costs (1) total tion (4) (Unaudited)
-----------------------------------------------------
Processing and
Services revenue $834.8 $- $834.8 $- $834.8
Cost of revenues 602.7 - 602.7 (29.2) 573.5
----- - ----- ----- -----
Gross profit 232.1 - 232.1 29.2 261.3
----- --- ----- ---- -----
Selling, general and
administrative 93.2 (2.1) 91.1 - 91.1
Research and development
costs 21.5 - 21.5 - 21.5
---- --- ---- --- ----
Operating income 117.4 2.1 119.5 29.2 148.7
----- --- ----- ---- -----
Other income (expense):
Interest income 0.5 - 0.5 - 0.5
Interest expense (31.8) - (31.8) - (31.8)
Other income, net 5.5 - 5.5 - 5.5
--- - --- - ---
Total other income
(expense) (25.8) - (25.8) - (25.8)
---- --- ---- - ----
Earnings from
continuing
operations before
income taxes, 91.6 2.1 93.7 29.2 122.9
Provision (benefit)
for income taxes 31.6 0.7 32.3 10.1 42.4
---- --- ---- ---- ----
Earnings from continuing
operations 60.0 1.4 61.4 19.1 80.5
Loss from discontinued
operations (0.4) - (0.4) - (0.4)
---- --- --- --- ---
Net earnings 59.6 1.4 61.0 19.1 80.1
Noncontrolling interest (0.4) - (0.4) - (0.4)
---- --- --- --- ---
Net earnings attributable
to FIS $59.2 $1.4 $60.6 $19.1 $79.7
===== ==== ===== ===== =====
Amounts attributable
to FIS common
stockholders
Net earnings from
continuing
operations, net
of tax $59.6 $1.4 $61.0 $19.1 $80.1
(Loss) earnings from
discontinued
operations,
net of tax (0.4) - (0.4) - (0.4)
--- --- --- --- ---
Net earnings
attributable to
FIS common
stockholders $59.2 $1.4 $60.6 $19.1 $79.7
===== ==== ===== ===== =====
Net earnings per share -
diluted from continuing
operations attributable
to FIS common
stockholders * $0.31 $0.01 $0.32 $0.10 $0.42
===== ===== ===== ===== =====
Weighted average shares
outstanding - diluted 192.7 192.7 192.7 192.7 192.7
===== ===== ===== ===== =====
Supplemental Information:
Depreciation and
amortization from
continuing operations $92.1 $(29.2) $62.9
===== ====== =====
Stock compensation
expense from continuing
operations, excluding
acceleration charges $8.8
Stock acceleration charges -
-
Total stock compensation
expense from continuing
operations $8.8
====
* Amounts may not sum due to rounding.
See accompanying notes.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
GAAP Non-GAAP
Six Months M&A Six Months
Ended Restructuring Purchase Ended
June 30, And Price June 30,
2009 Integration Sub- Amortiza- 2009
(Unaudited) Costs (1) total tion (4) (Unaudited)
-----------------------------------------------------
Processing and
services revenue $1,632.6 $- $1,632.6 $- $1,632.6
Cost of revenues 1,199.9 - 1,199.9 (59.3) 1,140.6
------- - ------- ----- -------
Gross profit 432.7 - 432.7 59.3 492.0
----- --- ----- ---- -----
Selling, general
and administrative 189.3 (9.4) 179.9 - 179.9
Research and
development costs 44.1 - 44.1 - 44.1
---- --- ---- --- ----
Operating income 199.3 9.4 208.7 59.3 268.0
----- --- ----- ---- -----
Other income (expense):
Interest income 1.3 - 1.3 - 1.3
Interest expense (63.8) - (63.8) - (63.8)
Other income, net 6.7 - 6.7 - 6.7
--- - --- - ---
Total other income
(expense) (55.8) - (55.8) - (55.8)
---- --- ---- --- ----
Earnings from
continuing
operations before
income taxes 143.5 9.4 152.9 59.3 212.2
Provision (benefit)
for income taxes 49.5 3.2 52.7 20.5 73.2
---- --- ---- ---- ----
Earnings from
continuing operations 94.0 6.2 100.2 38.8 139.0
Loss from discontinued
operations (1.7) - (1.7) - (1.7)
--- --- --- --- ---
Net earnings 92.3 6.2 98.5 38.8 137.3
Noncontrolling
interest (0.1) - (0.1) - (0.1)
---- --- --- --- ---
Net earnings
attributable to FIS $92.2 $6.2 $98.4 $38.8 $137.2
===== ==== ===== ===== ======
Amounts attributable
to FIS common
stockholders
Net earnings from
continuing
operations, net of
tax $93.9 $6.2 $100.1 $38.8 $138.9
(Loss) earnings from
discontinued
operations, net of
tax (1.7) - (1.7) - (1.7)
---- --- --- --- ---
Net earnings
attributable to
FIS common
stockholders $92.2 $6.2 $98.4 $38.8 $137.2
===== ==== ===== ===== ======
Net earnings per
share - diluted from
continuing operations
attributable to FIS
common stockholders * $0.49 $0.03 $0.52 $0.20 $0.72
===== ===== ===== ===== =====
Weighted average
shares outstanding -
diluted 192.2 192.2 192.2 192.2 192.2
===== ===== ===== ===== =====
Supplemental Information:
Depreciation and
amortization from
continuing
operations $184.1 $(59.3) $124.8
====== ====== ======
Stock compensation
expense from continuing
operations, excluding
acceleration charges $18.3
Stock acceleration charges
-
-
Total stock compensation
expense from
continuing operations $18.3
=====
* Amounts may not sum due to rounding.
See accompanying notes.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
M&A
GAAP Restructuring Corporate
Three Months And Costs LPS
Ended Integration Non-Disc Spin
June 30, 2008 Costs Ops Costs
(Unaudited)
---------- ---------- -------- ------
Processing and services revenue $869.7 $- $- $-
Cost of revenues 674.0 (24.0) - -
---------- ---------- -------- ------
Gross profit 195.7 24.0 - -
Selling, general and administrative 117.9 (5.1) (9.0) (5.6)
Research and development costs 19.9 - - -
---------- ---------- -------- ------
Operating income 57.9 29.1 9.0 5.6
---------- ---------- -------- ------
Other income (expense):
Interest income 1.5 - - -
Interest expense (43.6) 2.7 - -
Other income, net 1.3 - - -
---------- ---------- -------- ------
Total other income (expense) (40.8) 2.7 - -
---------- ---------- -------- ------
Earnings before income taxes 17.1 31.8 9.0 5.6
Provision (benefit) for income taxes 3.3 11.3 2.7 2.0
Equity in earnings (losses) of
unconsolidated entities (0.2) - - -
---------- ---------- -------- ------
Earnings from continuing operations 13.6 20.5 6.3 3.6
Earnings from discontinued
operations 59.2 - - -
---------- ---------- -------- ------
Net earnings 72.8 20.5 6.3 3.6
Noncontrolling interest (0.9) - - -
---------- ---------- -------- ------
Net earnings attributable to FIS $71.9 $20.5 $6.3 $3.6
========== ========== ======== ======
Amounts attributable to FIS common
stockholders
Net earnings from continuing
operations, net of tax $13.3 $20.5 $6.3 $3.6
(Loss) earnings from discontinued
operations, net of tax 58.6 - - -
---------- ---------- -------- ------
Net earnings attributable to
FIS common stockholders $71.9 $20.5 $6.3 $3.6
========== ========== ======== ======
Net earnings per share - diluted
from continuing operations
attributable to FIS common
stockholders* $0.07 $0.11 $0.03 $0.02
========== ========== ======== ======
Weighted average shares outstanding
- diluted 194.4 194.4 194.4 194.4
========== ========== ======== ======
Non-GAAP
Three
Purchase Months
Price Ended
Subtotal Amortization June 30,
2008
(Unaudited)
-------- ------------ ---------
Processing and services revenue $869.7 $- $869.7
Cost of revenues 650.0 (35.5) 614.5
-------- ------------ ---------
Gross profit 219.7 35.5 255.2
-------- ------------ ---------
Selling, general and administrative 98.2 - 98.2
Research and development costs 19.9 - 19.9
-------- ------------ ---------
Operating income 101.6 35.5 137.1
-------- ------------ ---------
Other income (expense):
Interest income 1.5 - 1.5
Interest expense (40.9) - (40.9)
Other income, net 1.3 - 1.3
-------- ------------ ---------
Total other income (expense) (38.1) - (38.1)
-------- ------------ ---------
Earnings before income taxes 63.5 35.5 99.0
Provision (benefit) for income taxes 19.3 12.4 31.7
Equity in earnings (losses) of
unconsolidated entities (0.2) - (0.2)
-------- ------------ ---------
Earnings from continuing operations 44.0 23.1 67.1
Earnings from discontinued operations 59.2 - 59.2
-------- ------------ ---------
Net earnings 103.2 23.1 126.3
Noncontrolling interest (0.9) - (0.9)
-------- ------------ ---------
Net earnings attributable to FIS $102.3 $23.1 $125.4
======== ============ =========
Amounts attributable to FIS common
stockholders
Net earnings from continuing
operations, net of tax $43.7 $23.1 $66.8
(Loss) earnings from discontinued
operations, net of tax 58.6 - 58.6
-------- ------------ ---------
Net earnings attributable to FIS
common stockholders $102.3 $23.1 $125.4
======== ============ =========
Net earnings per share - diluted from
continuing operations attributable to
FIS common stockholders* $0.22 $0.12 $0.34
======== ============ =========
Weighted average shares outstanding
- diluted 194.4 194.4 194.4
======== ============ =========
Supplemental Information:
Depreciation and amortization from
continuing operations $96.4 $(35.5) $60.9
======== ============ =========
Stock compensation expense from
continuing operations,
excluding acceleration charges $8.6
Stock acceleration charges 2.5
---------
Total stock compensation expense from
continuing operations $11.1
=========
* Amounts may not sum due to rounding.
See accompanying notes.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
M&A
GAAP Restructuring Corporate
Six Months And Costs LPS
Ended Integration Non-Disc Spin
June 30, 2008 Costs Ops Costs
(Unaudited)
------------ ---------- ----------- --------
Processing and
services revenue $1,700.0 $- $- $-
Cost of revenues 1,322.7 (24.0) - -
------------ ---------- ----------- --------
Gross profit 377.3 24.0 - -
------------ ---------- ----------- --------
Selling, general and
administrative 229.0 (20.1) (18.0) (8.5)
Research and development
costs 39.2 - - -
------------ ---------- ----------- --------
Operating income 109.1 44.1 18.0 8.5
------------ ---------- ----------- --------
Other income (expense):
Interest income 4.3 - - -
Interest expense (82.4) 2.7 - -
Other income, net 0.1 - - -
------------ ---------- ----------- --------
Total other income
(expense) (78.0) 2.7 - -
------------ ---------- ----------- --------
Earnings before income
taxes 31.1 46.8 18.0 8.5
Provision (benefit)
for income taxes 6.6 16.8 5.5 3.1
Equity in earnings (losses)
of unconsolidated entities (0.2) - - -
------------ ---------- ----------- --------
Earnings from continuing
operations 24.3 30.0 12.5 5.4
Earnings from discontinued
operations 118.8 - - -
------------ ---------- ----------- --------
Net earnings 143.1 30.0 12.5 5.4
Noncontrolling interest (0.7) - - -
------------ ---------- ----------- --------
Net earnings attributable
to FIS $142.4 $30.0 $12.5 $5.4
============ ========== =========== ========
Amounts attributable to FIS
common stockholders
Net earnings from
continuing operations,
net of tax $24.2 $30.0 $12.5 $5.4
(Loss) earnings from
discontinued operations,
net of tax 118.2 - - -
------------ ---------- ----------- --------
Net earnings attributable
to FIS common
stockholders $142.4 $30.0 $12.5 $5.4
============ =========== =========== ========
Net earnings per share
- diluted from continuing
operations attributable to
FIS common stockholders* $0.12 $0.15 $0.06 $0.03
============ =========== =========== ========
Weighted average shares
outstanding - diluted 195.5 195.5 195.5 195.5
============ =========== =========== ========
Non-GAAP
Purchase Six Months
Price Ended
Subtotal Amortization June 30,
2008
(Unaudited)
--------- ---------- -----------
Processing and services revenue $1,700.0 $- $1,700.0
Cost of revenues 1,298.7 (72.0) 1,226.7
--------- ---------- -----------
Gross profit 401.3 72.0 473.3
--------- ---------- -----------
Selling, general and administrative 182.4 - 182.4
Research and development costs 39.2 - 39.2
--------- ---------- -----------
Operating income 179.7 72.0 251.7
--------- ---------- -----------
Other income (expense):
Interest income 4.3 - 4.3
Interest expense (79.7) - (79.7)
Other income, net 0.1 - 0.1
--------- ---------- -----------
Total other income (expense) (75.3) - (75.3)
--------- ---------- -----------
Earnings before income taxes 104.4 72.0 176.4
Provision (benefit) for income taxes 32.0 25.3 57.3
Equity in earnings (losses) of
unconsolidated entities (0.2) - (0.2)
--------- ---------- -----------
Earnings from continuing operations 72.2 46.7 118.9
Earnings from discontinued operations 118.8 - 118.8
--------- ---------- -----------
Net earnings 191.0 46.7 237.7
Noncontrolling interest (0.7) - (0.7)
--------- ---------- -----------
Net earnings attributable to FIS $190.3 $46.7 $237.0
========= ========== ===========
Amounts attributable to FIS common
stockholders
Net earnings from continuing
operations, net of tax $72.1 $46.7 $118.8
(Loss) earnings from discontinued
operations, net of tax 118.2 - 118.2
--------- ---------- -----------
Net earnings attributable to
FIS common stockholders $190.3 $46.7 $237.0
========= ========== ===========
Net earnings per share - diluted
from continuing operations
attributable to FIS common
stockholders* $0.37 $0.24 $0.61
========= ========== ===========
Weighted average shares outstanding
- diluted 195.5 195.5 195.5
========= ========== ===========
Supplemental Information:
Depreciation and amortization from
continuing operations $198.3 $(72.0) $126.3
========= ========== ===========
Stock compensation expense from
continuing operations,
excluding acceleration charges $16.4
Stock acceleration charges 16.7
-----------
Total stock compensation expense
from continuing operations $33.1
===========
* Amounts may not sum due to rounding.
See accompanying notes.
Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the
Three-Month and Six-Month Periods ended June 30, 2009 and 2008
The adjustments are as follows:
(1) This column represents charges for restructuring and integration
costs relating to merger and acquisition activities. For the three
and six months ended June 30, 2009, the amounts represent incremental
transaction costs incurred by the Company related to the previously
announced acquisition of Metavante Technologies, Inc.
(2) This column represents corporate costs attributable to LPS as
previously reported in our investor package furnished on form 8-K on
May 28, 2008. These amounts are not allocable to discontinued
operations under U.S. Generally Accepted Accounting Principles.
(3) This column represents incremental transaction costs incurred by the
Company directly related to the LPS spin-off.
(4) This column represents purchase price amortization expense on
intangibles assets acquired through various Company acquisitions.
SOURCE Fidelity National Information Services, Inc.
http://www.fidelityinfoservices.com