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Table of Contents

 
 
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
September 5, 2008
Fidelity National Information Services, Inc.
(Exact name of Registrant as Specified in its Charter)

1-16427
(Commission File Number)
     
Georgia   58-2606325
(State or Other Jurisdiction of Incorporation or Organization)   (IRS Employer Identification Number)
601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)
(904) 854-8100
(Registrant’s Telephone Number, Including Area Code)
 
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Table of Contents

Item 2.02 Results of Operations and Financial Condition
On July 2, 2008, Fidelity National Information Services, Inc. (“FIS”) completed the spin-off of Lender Processing Services, Inc. (“LPS”). Since the completion of the spin-off occurred subsequent to the reporting period ended June 30, 2008, generally accepted accounting principles do not allow presentation of LPS as a discontinued operation in our periodic filings until FIS presents operating results for the three and nine-month periods ended September 30, 2008. Because of these requirements and desire to furnish additional information to investors to improve the understanding of the Company’s operating performance, management is separately furnishing information which reflects the operations of LPS as a discontinued operation. The purpose of the schedules included in Exhibit 99.1 is to recast the 2007 results from continuing operations by quarter and on an annual basis, along with the first and second quarter of 2008 in a manner consistent with how FIS will report results from continuing operations beginning in the third quarter of 2008. These schedules exclude the operating results of LPS, and other smaller operations from continuing operations. The exhibit also includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). FIS’s management uses non-GAAP measures for planning purposes, including the preparation of annual operating budgets, and to evaluate the operating performance of its businesses and to compare its operating performance with that of its competitors. Therefore, management believes non-GAAP measures to be relevant and useful information for investors. The non-GAAP measures exclude certain items, which management believes are not indicative of core operating results, however, these items do impact our income statement, and management therefore utilizes non-GAAP measures as an operating performance measure in conjunction with GAAP measures, such as operating income or other income statement data prepared in accordance with GAAP. The non-GAAP measures should not be used in isolation or as a substitute for other measures of financial performance reported in accordance with GAAP.
The information included in Items 2.02 and 9.01 within this Current Report are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information included in Items 2.02 and 9.01 within this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. A copy of the historical financial data is attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1   Fidelity National Information Services, Inc. Supplemental Financial Schedules
 
*   As described in Item 2.02 above of this Current Report, this exhibit is “furnished” and not “filed” with this Current Report.

 

Table of Contents

SIGNATURE
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 thereunto duly authorized.
         
  Fidelity National Information Services, Inc.
 		  
Date: September 5, 2008  By:   /s/ George P. Scanlon    
    Name:   George P. Scanlon   
    Title:   Executive Vice President and
Chief Financial Officer 		  
 

 

Table of Contents

EXHIBIT INDEX
     
Exhibit   Description
99.1
  Fidelity National Information Services, Inc. Supplemental Financial Information
 
*   As described in Item 2.02 above of this Current Report, this exhibit is “furnished” and not “filed” with this Current Report.

 

exv99w1
Exhibit 99.1
Fidelity National Information Services, Inc.
Supplemental Financial Schedules
September 5, 2008
On July 2, 2008, FIS completed the spin-off of Lender Processing Services, Inc. (“LPS”). Since the completion of the spin-off occurred subsequent to the reporting period ended June 30, 2008, generally accepted accounting principles do not allow presentation of LPS as a discontinued operation in our periodic filings until FIS presents operating results for the three and nine-month periods ended September 30, 2008.
Because of these requirements and desire to furnish additional information to investors to improve the understanding of the Company’s operating performance, management is separately furnishing information which excludes the operations of LPS and other smaller operations which the company has exited. The purpose of the attached schedules is to recast the 2007 results from continuing operations by quarter and on an annual basis along with the first and second quarter of 2008 in a manner consistent with how FIS will report results from continuing operations beginning in the third quarter of 2008. These schedules exclude the operating results of LPS, and other smaller operations, which we have exited. As previously announced we anticipate exiting our Australian check operations through a sale of this business to a third party. These schedules do not reflect the results of our Australian check operations as discontinued operations.
Exhibit Listing
     
Exhibit A.
  FIS Supplemental GAAP to Non-GAAP Reconciliation — Unaudited for the Full Year 2007 and the Quarters Ended March 31, June 30, September 30 and December 31, 2007 and March 31, and June 30, 2008

1

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                                                 
    GAAP     M&A                                                             Non-GAAP  
    Twelve Months     Restructuring     Corporate             Gain                                     Twelve Months  
    Ended     and     Costs     LPS     On Sale     Interest     Debt             Purchase     Ended  
    December 31, 2007     Integration     Non-Disc     Spin     Covansys     Expense     Restructure             Price     December 31, 2007  
    (Unaudited)     Costs(1)     Ops(2)     Costs(3)     Stock(4)     Allocation(5)     Charge(6)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 2,950,109     $ —     $ —     $ —     $ —     $ —     $ —     $ 2,950,109     $ —     $ 2,950,109  
Cost of revenues
     2,277,161       (22,289 )      —       —       —       —       —       2,254,872       (124,243 )     2,130,629  
 
                                                            
Gross profit
     672,948       22,289       —       —       —       —       —       695,237       124,243       819,480  
 
                                                            
 
                                                                                
Selling, general and administrative
     302,888       (5,975 )     (22,056 )     (500 )     —       —       —       274,357       —       274,357  
Research and development costs
     70,378       —       —       —       —       —       —       70,378       —       70,378  
 
                                                            
Operating income
     299,682       28,264       22,056       500       —       —       —       350,502       124,243       474,745  
 
                                                            
 
                                                                                
Other income (expense):
                                                                                
Interest income
     3,035       —       —       —       —       —       —       3,035       —       3,035  
Interest expense
     (193,233 )     —       —       —       —       55,800       27,164       (110,269 )     —       (110,269 )
Gain on sale of Covansys stock
     274,488       —       —       —       (274,488 )     —       —       —       —       —  
Other income, net
     15,734       (14,846 )     —       —       —       —       —       888       —       888  
 
                                                            
Total other income (expense)
     100,024       (14,846 )     —       —       (274,488 )     55,800       27,164       (106,346 )     —       (106,346 )
 
                                                            
 
                                                                                
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     399,706       13,418       22,056       500       (274,488 )     55,800       27,164       244,156       124,243       368,399  
Provision (benefit) for income taxes
     140,884       4,972       8,337       185       (101,561 )     21,584       10,105       84,506       44,635       129,141  
 
                                                            
 
                                                                                
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     258,822       8,446       13,719       315       (172,927 )     34,216       17,059       159,650       79,608       239,258  
Equity in earnings (losses) of unconsolidated entities
     2,825       —       —       —       —       —       —       2,825       —       2,825  
Minority interest income (expense)
     50       —       —       —       —       —       —       50       —       50  
 
                                                            
Net earnings from continuing operations
   $  261,697     $  8,446     $  13,719     $  315     $  (172,927 )   $  34,216     $  17,059     $  162,525     $  79,608     $  242,133  
 
                                                            
 
                                                                                
Net earnings per share — diluted from continuing operations *
   $ 1.33     $ 0.04     $ 0.07     $ 0.00     $ (0.88 )   $ 0.17     $ 0.09     $ 0.83     $ 0.41     $ 1.23  
 
                                                            
Weighted average shares outstanding — diluted
     196,546       196,546       196,546       196,546       196,546       196,546       196,546       196,546       196,546       196,546  
 
                                                            
 
                                                                                
Depreciation and amortization from continuing operations
                                                       $ 373,705     $ (124,243 )    $ 249,462  
 
                                                                          
 
*   Amounts may not sum due to rounding.
See accompanying notes.

2

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                                 
    GAAP     M&A                                             Non-GAAP  
    Three Months     Restructuring     Corporate                                     Three Months  
    Ended     and     Costs     Interest     Debt             Purchase     Ended  
    March 31, 2007     Integration     Non-Disc     Expense     Restructure             Price     March 31, 2007  
    (Unaudited)     Costs(1)     Ops(2)     Allocation(5)     Charge(6)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 671,252       —       —       —       —     $ 671,252       —     $ 671,252  
Cost of revenues
     521,196       (4,961 )     —       —       —       516,235       (29,253 )     486,982  
 
                                                
Gross profit
     150,056       4,961       —       —       —       155,017       29,253       184,270  
 
                                                
 
                                                              
Selling, general and administrative
     69,557       —     (6,219 )     —       —       63,338       —       63,338  
Research and development costs
     17,518       —       —       —       —       17,518       —       17,518  
 
                                                
Operating income
     62,981       4,961       6,219       —       —       74,161       29,253       103,414  
 
                                                
 
                                                                
Other income (expense):
                                                                
Interest income
     209       —       —       —       —       209       —       209  
Interest expense
     (72,073 )     —       —       19,729       27,164       (25,180 )     —       (25,180 )
Gain on sale of Covansys stock
     —       —       —       —       —       —       —       —  
Other income, net
     92       —       —       —       —       92       —       92  
 
                                                
Total other income (expense)
     (71,772 )     —       —       19,729       27,164       (24,879 )     —       (24,879 )
 
                                                
 
                                                                
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     (8,791 )     4,961       6,219       19,729       27,164       49,282       29,253       78,535  
Provision (benefit) for income taxes
     (4,720 )     1,845       2,351       7,632       10,105       17,213       10,368       27,581  
 
                                                
 
                                                                
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     (4,071 )     3,116       3,868       12,097       17,059       32,069       18,885       50,954  
Equity in earnings (losses) of unconsolidated entities
     1,408       —       —       —       —       1,408       —       1,408  
Minority interest income (expense)
     339       —       —       —       —       339       —       339  
 
                                                
Net earnings from continuing operations
   $ (2,324 )   $ 3,116     $ 3,868     $ 12,097     $ 17,059     $ 33,816     $ 18,885     $ 52,701  
 
                                                
 
                                                                
Net earnings per share — diluted from continuing operations *
   $ (0.01 )   $ 0.02     $ 0.02     $ 0.06     $ 0.09     $ 0.17     $ 0.10     $ 0.27  
 
                                                
Weighted average shares outstanding — diluted
     195,807       195,807       195,807       195,807       195,807       195,807       195,807       195,807  
 
                                                
 
                                                                
Depreciation and amortization from continuing operations
                                       $ 82,203     $  (29,253 )   $ 52,950  
 
                                                          
 
*   Amounts may not sum due to rounding.
See accompanying notes.

3

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                                 
    GAAP     M&A                                         Non-GAAP  
    Three Months     Restructuring     Corporate     Gain                             Three Months  
    Ended     and     Costs     On Sale     Interest             Purchase     Ended  
    June 30, 2007     Integration     Non-Disc     Covansys     Expense             Price     June 30, 2007  
    (Unaudited)     Costs(1)     Ops(2)     Stock(4)     Allocation(5)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 701,630       —       —       —       —     $ 701,630       —     $ 701,630  
Cost of revenues
     540,269       (2,195 )      —       —       —       538,074       (27,041 )     511,033  
 
                                                
Gross profit
     161,361       2,195       —       —       —       163,556       27,041       190,597  
 
                                                
 
                                                                
Selling, general and administrative
     74,668       —     (6,697 )     —       —       67,971       —       67,971  
Research and development costs
     14,905       —       —       —       —       14,905       —       14,905  
 
                                                
Operating income
     71,788       2,195       6,697       —       —       80,680       27,041       107,721  
 
                                                
 
                                                                
Other income (expense):
                                                                
Interest income
     165       —       —       —       —       165       —       165  
Interest expense
     (42,934 )     —       —       —       19,949       (22,985 )     —       (22,985 )
Gain on sale of Covansys stock
     92,044       —       —       (92,044 )     —       —       —       —  
Other income, net
     1,336       —       —       —       —       1,336       —       1,336  
 
                                                
Total other income (expense)
     50,611       —       —       (92,044 )     19,949       (21,484 )     —       (21,484 )
 
                                                
 
                                                                
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     122,399       2,195       6,697       (92,044 )     19,949       59,196       27,041       86,237  
Provision (benefit) for income taxes
     43,284       810       2,532       (34,056 )     7,716       20,286       9,463       29,749  
 
                                                
 
                                                                
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     79,115       1,385       4,165       (57,988 )     12,233       38,910       17,578       56,488  
Equity in earnings (losses) of unconsolidated entities
     1,330       —       —       —       —       1,330       —       1,330  
Minority interest income (expense)
     (11 )     —       —       —       —       (11 )     —       (11 )
 
                                                
Net earnings from continuing operations
   $ 80,434     $ 1,385     $ 4,165     $ (57,988 )   $ 12,233     $ 40,229     $ 17,578     $ 57,807  
 
                                                
 
                                                                
Net earnings per share — diluted from continuing operations *
   $ 0.41     $ 0.01     $ 0.02     $ (0.29 )   $ 0.06     $ 0.20     $ 0.09     $ 0.29  
 
                                                
Weighted average shares outstanding — diluted
     196,977       196,977       196,977       196,977       196,977       196,977       196,977       196,977  
 
                                                
 
                                                                
Depreciation and amortization from continuing operations
                                       $ 85,642     $ (27,041 )   $ 58,601  
 
                                                          
 
*   Amounts may not sum due to rounding
See accompanying notes.

4

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                                 
    GAAP     M&A                                         Non-GAAP  
    Three Months     Restructuring     Corporate     Gain                             Three Months  
    Ended     and     Costs     On Sale     Interest             Purchase     Ended  
    September 30, 2007     Integration     Non-Disc     Covansys     Expense             Price     September 30, 2007  
    (Unaudited)     Costs(1)     Ops(2)     Stock(4)     Allocation(5)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 712,812       —       —       —       —     $ 712,812       —     $ 712,812  
Cost of revenues
     562,998       (15,133 )      —       —       —       547,865       (29,574 )     518,291  
 
                                                
Gross profit
     149,814       15,133       —       —       —       164,947       29,574       194,521  
 
                                                
 
                                                                
Selling, general and administrative
     72,387       (4,322 )     (5,697 )     —       —       62,368       —       62,368  
Research and development costs
     17,579       —       —       —       —       17,579       —       17,579  
 
                                                
Operating income
     59,848       19,455       5,697       —       —       85,000       29,574       114,574  
 
                                                
 
                                                                
Other income (expense):
                                                                
Interest income
     719       —       —       —       —       719       —       719  
Interest expense
     (37,856 )     —       —       —       16,122       (21,734 )     —       (21,734 )
Gain on sale of Covansys stock
     182,444       —       —       (182,444 )     —       —       —       —  
Other income, net
     3,327       (2,781 )     —       —       —       546       —       546  
 
                                                
Total other income (expense)
     148,634       (2,781 )     —       (182,444 )     16,122       (20,469 )     —       (20,469 )
 
                                                
 
                                                                
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     208,482       16,674       5,697       (182,444 )     16,122       64,531       29,574       94,105  
Provision (benefit) for income taxes
     75,238       6,169       2,153       (67,505 )     6,236       22,291       10,536       32,827  
 
                                                
 
                                                                
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     133,244       10,505       3,544       (114,939 )     9,886       42,240       19,038       61,278  
Equity in earnings (losses) of unconsolidated entities
     86       —       —       —       —       86       —       86  
Minority interest income (expense)
     41       —       —       —       —       41       —       41  
 
                                                
Net earnings from continuing operations
   $ 133,371     $ 10,505     $ 3,544     $ (114,939 )   $ 9,886     $ 42,367     $ 19,038     $ 61,405  
 
                                                
 
                                                                
Net earnings per share — diluted from continuing operations *
   $ 0.68     $ 0.05     $ 0.02     $ (0.58 )   $ 0.05     $ 0.22     $ 0.10     $ 0.31  
 
                                                
Weighted average shares outstanding — diluted
     196,649       196,649       196,649       196,649       196,649       196,649       196,649       196,649  
 
                                                
 
                                                                
Depreciation and amortization from continuing operations
                                       $ 93,973     $ (29,574 )    $ 64,399  
 
                                                          
 
*   Amounts may not sum due to rounding.
See accompanying notes.

5

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                         
    GAAP     M&A                                 Non-GAAP  
    Three Months     Restructuring     Corporate                             Three Months  
    Ended     and     Costs     LPS             Purchase     Ended  
    December 31, 2007     Integration     Non-Disc     Spin             Price     December 31, 2007  
    (Unaudited)     Costs(1)     Ops(2)     Costs(3)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 864,415       —       —       —     $ 864,415       —     $ 864,415  
Cost of revenues
     652,698       —       —       —       652,698       (38,375 )     614,323  
 
                                          
Gross profit
     211,717       —       —       —       211,717       38,375       250,092  
 
                                          
 
                                                        
Selling, general and administrative
     86,276       (1,653 )     (3,443 )     (500 )     80,680       —       80,680  
Research and development costs
     20,376       —       —       —       20,376       —       20,376  
 
                                          
Operating income
     105,065       1,653       3,443       500       110,661       38,375       149,036  
 
                                          
 
                                                        
Other income (expense):
                                                        
Interest income
     1,942       —       —       —       1,942       —       1,942  
Interest expense
     (40,370 )     —       —       —       (40,370 )     —       (40,370 )
Gain on sale of Covansys stock
     —       —       —       —       —       —       —  
Other income, net
     10,979       (12,065 )     —       —       (1,086 )     —       (1,086 )
 
                                          
Total other income (expense)
     (27,449 )     (12,065 )     —       —       (39,514 )     —       (39,514 )
 
                                          
 
                                                        
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     77,616       (10,412 )     3,443       500       71,147       38,375       109,522  
Provision (benefit) for income taxes
     27,082       (3,852 )     1,301       185       24,716       14,268       38,984  
 
                                          
 
                                                        
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     50,534       (6,560 )     2,142       315       46,431       24,107       70,538  
Equity in earnings (losses) of unconsolidated entities
     1       —       —       —       1       —       1  
Minority interest income (expense)
     (319 )     —       —       —       (319 )     —       (319 )
 
                                          
Net earnings from continuing operations
   $ 50,216     $ (6,560 )   $ 2,142     $ 315     $ 46,113     $ 24,107     $ 70,220  
 
                                          
 
                                                        
Net earnings per share — diluted from continuing operations *
   $ 0.26     $ (0.03 )   $ 0.01     $ 0.00     $ 0.23     $ 0.12     $ 0.36  
 
                                          
Weighted average shares outstanding — diluted
     196,741       196,741       196,741       196,741       196,741       196,741       196,741  
 
                                          
 
                                                        
Depreciation and amortization from continuing operations
                               $ 111,887     $ (38,375 )   $ 73,512  
 
                                                  
 
*   Amounts may not sum due to rounding.
See accompanying notes.

6

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                         
    GAAP     M&A                                 Non-GAAP  
    Three Months     Restructuring     Corporate                             Three Months  
    Ended     and     Costs     LPS             Purchase     Ended  
    March 31, 2008     Integration     Non-Disc     Spin             Price     March 31, 2008  
    (Unaudited)     Costs(1)     Ops(2)     Costs(3)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 838,223       —       —       —     $ 838,223       —     $ 838,223  
Cost of revenues
     648,268       —       —       —       648,268       (36,500 )     611,768  
 
                                          
Gross profit
     189,955       —       —       —       189,955       36,500       226,455  
 
                                          
 
                                                        
Selling, general and administrative
     116,192       (14,970 )     (9,025 )     (2,858 )     89,339       —       89,339  
Research and development costs
     18,283       —       —       —       18,283       —       18,283  
 
                                          
Operating income
     55,480       14,970       9,025       2,858       82,333       36,500       118,833  
 
                                          
 
                                                        
Other income (expense):
                                                        
Interest income
     2,758       —       —       —       2,758       —       2,758  
Interest expense
     (39,577 )     —       —       —       (39,577 )     —       (39,577 )
Other income, net
     (441 )     —       —       —       (441 )     —       (441 )
 
                                          
Total other income (expense)
     (37,260 )     —       —       —       (37,260 )     —       (37,260 )
 
                                          
 
                                                        
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     18,220       14,970       9,025       2,858       45,073       36,500       81,573  
Provision (benefit) for income taxes
     4,608       5,479       2,787       1,046       13,920       12,918       26,838  
 
                                          
 
                                                        
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     13,612       9,491       6,238       1,812       31,153       23,582       54,735  
Equity in earnings (losses) of unconsolidated entities
     —       —       —       —       —       —       —  
Minority interest
     190       —       —       —       190       —       190  
 
                                          
Net earnings from continuing operations
   $ 13,802     $ 9,491     $ 6,238     $ 1,812     $ 31,343     $ 23,582     $ 54,925  
 
                                          
 
                                                        
Net earnings per share — diluted from continuing operations *
   $ 0.07     $ 0.05     $ 0.03     $ 0.01     $ 0.16     $ 0.12     $ 0.28  
 
                                          
Weighted average shares outstanding — diluted
     196,537       196,537       196,537       196,537       196,537       196,537       196,537  
 
                                          
 
                                                        
Depreciation and amortization from continuing operations
                               $ 101,971     $ (36,500 )   $ 65,471  
 
                                                  
 
*   Amounts may not sum due to rounding.
See accompanying notes.

7

 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
                                                         
    GAAP     M&A                                 Non-GAAP  
    Three Months     Restructuring     Corporate                             Three Months  
    Ended     and     Costs     LPS             Purchase     Ended  
    June 30, 2008     Integration     Non-Disc     Spin             Price     June 30, 2008  
    (Unaudited)     Costs(1)     Ops(2)     Costs(3)     Subtotal     Amortization(7)     (Unaudited)  
Processing and services revenue
   $ 878,653       —       —       —     $ 878,653       —     $ 878,653  
Cost of revenues
     674,032       (23,950  )      —       —       650,082       (35,459 )     614,623  
 
                                          
Gross profit
     204,621       23,950       —       —       228,571       35,459       264,030  
 
                                          
 
                                                        
Selling, general and administrative
     122,223       (5,121 )     (9,093 )     (5,582 )     102,427       —       102,427  
Research and development costs
     19,357       —       —       —       19,357       —       19,357  
 
                                          
Operating income
     63,041       29,071       9,093       5,582       106,787       35,459       142,246  
 
                                          
 
                                                        
Other income (expense):
                                                        
Interest income
     1,637       —       —       —       1,637       —       1,637  
Interest expense
     (44,441 )     2,722       —       —       (41,719 )     —       (41,719 )
Other income, net
     2,224       —       —       —       2,224       —       2,224  
 
                                          
Total other income (expense)
     (40,580 )     2,722       —       —       (37,858 )     —       (37,858 )
 
                                          
 
                                                        
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     22,461       31,793       9,093       5,582       68,929       35,459       104,388  
Provision (benefit) for income taxes
     4,802       11,255       2,751       1,976       20,784       12,360       33,144  
 
                                          
 
                                                        
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations
     17,659       20,538       6,342       3,606       48,145       23,099       71,244  
Equity in earnings (losses) of unconsolidated entities
     (157 )     —       —       —       (157 )     —       (157 )
Minority interest
     (306 )     —       —       —       (306 )     —       (306 )
 
                                          
Net earnings from continuing operations
   $ 17,196     $ 20,538     $ 6,342     $ 3,606     $ 47,682     $ 23,099     $ 70,781  
 
                                          
 
                                                        
Net earnings per share — diluted from continuing operations *
   $ 0.09     $ 0.11     $ 0.03     $ 0.02     $ 0.25     $ 0.12     $ 0.36  
 
                                          
Weighted average shares outstanding — diluted
     194,448       194,448       194,448       194,448       194,448       194,448       194,448  
 
                                          
 
                                                        
Depreciation and amortization from continuing operations
                               $ 96,473     $ (35,459 )   $ 61,014  
 
                                                  
 
*   Amounts may not sum due to rounding.
See accompanying notes.

8

 

Notes to Unaudited GAAP to Non-GAAP Reconciliation for the Full Year 2007 and the Quarters Ended March 31, June 30, September 30, and December 31, 2007 and March 31, and June 30, 2008
The adjustments are as follows:
(1)   This column represents charges for restructuring and integration costs relating to merger and acquisition activities as previously disclosed in our earnings releases.
(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 a gain on sale of investment in Covansys to a third party recorded in the second and third quarters of 2007.
(5)   This column represents the allocation of interest expense for the periods presented, as if the debt retired in conjunction with the LPS spin-off had occurred on January 1, 2007, as previously reported in our investor package furnished on form 8-K on May 28, 2008.
(6)   This column represents debt restructuring charges recorded in the first quarter of 2007, to write-off capitalized unamortized debt issuance costs.
(7)   This column represents purchase price amortization expense related to intangibles assets acquired through various Company acquisitions.

9