United States
SECURITIES AND EXCHANGE COMMISSION
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):
July 24, 2007
Fidelity National Information Services, Inc.
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
(904) 854-8100
(Registrants Telephone Number, Including Area Code)
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)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 8.01. Other Events | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EXHIBIT 99.1 |
Item 2.02. Results of Operations and Financial Condition
On July 24, 2007, Fidelity National Information Services, Inc. issued an earnings release announcing its financial results for the Second Quarter of 2007. 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 earnings release is attached as Exhibit 99.1.
Item 8.01. Other Events.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Information Services, Inc. Reports Second Quarter 2007 Earnings. |
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: July 24, 2007 | By: | /s/ Jeffrey S. Carbiener | ||
Name: Jeffrey S. Carbiener Title: Executive Vice President and Chief Financial Officer |
||||
EXHIBIT INDEX
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Information Services, Inc. Reports Second Quarter 2007 Earnings. |
PRESS RELEASE |
2nd Quarter | 2nd Quarter | |||||||
GAAP | 2007 | 2006 | ||||||
Total Revenue |
$1,176.2 million | $1,021.9 million | ||||||
Net Earnings |
$148.0 million | $66.0 million | ||||||
Net Earnings Per Diluted Share |
$ | 0.75 | $ | 0.34 |
Adjusted, excluding items | ||||||||||||
described above | 2nd Quarter | 2nd Quarter | % | |||||||||
(see Appendix A) | 2007 | 2006 | Chg | |||||||||
Total Revenue |
$1,176.2 million | $1,021.9 million | 15.1 | % | ||||||||
EBITDA |
$299.6 million | $270.1 million | 10.9 | % | ||||||||
Net Earnings |
$91.4 million | $70.3 million | 29.9 | % | ||||||||
Net Earnings Per Diluted Share |
$ | 0.46 | $ | 0.37 | 24.3 | % | ||||||
Cash Earnings |
$115.3 million | $98.9 million | 16.6 | % | ||||||||
Cash Earnings Per Diluted Share |
$ | 0.59 | $ | 0.51 | 15.7 | % | ||||||
Diluted Shares Outstanding |
197.0 million | 195.4 million |
Segment Revenues | 2nd Quarter | 2nd Quarter | ||||||||||
(amounts in millions) | 2007 | 2006 | % Chg | |||||||||
Transaction Processing Services: |
||||||||||||
Integrated Financial Solutions |
$ | 297.1 | $ | 272.4 | 9.1 | % | ||||||
Enterprise Solutions |
270.1 | 243.3 | 11.0 | % | ||||||||
International |
143.3 | 99.3 | 44.3 | % | ||||||||
Other |
(0.8 | ) | (2.9 | ) | 73.2 | % | ||||||
$ | 709.7 | $ | 612.1 | 16.0 | % | |||||||
Lender Processing Services: |
||||||||||||
Mortgage Processing |
$ | 97.3 | $ | 93.2 | 4.5 | % | ||||||
Information Services |
365.2 | 303.5 | 20.3 | % | ||||||||
Other |
| 11.4 | (100.0 | %) | ||||||||
$ | 462.5 | $ | 408.1 | 13.3 | % | |||||||
Corporate |
$ | 4.0 | $ | 1.7 | 124.8 | % | ||||||
Total FIS |
$ | 1,176.2 | $ | 1,021.9 | 15.1 | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Processing and services revenues |
$ | 1,176,238 | $ | 1,021,946 | $ | 2,300,304 | $ | 1,922,882 | ||||||||
Cost of revenues |
842,946 | 719,718 | 1,656,262 | 1,342,055 | ||||||||||||
Selling, general, and administrative expenses |
125,770 | 125,866 | 245,253 | 271,595 | ||||||||||||
Research and development costs |
23,588 | 23,646 | 50,697 | 51,706 | ||||||||||||
Operating income |
183,934 | 152,716 | 348,092 | 257,526 | ||||||||||||
Other income (expense) |
||||||||||||||||
Interest income |
578 | 1,533 | 1,267 | 3,424 | ||||||||||||
Gain on sale of Covansys stock |
92,044 | | 92,044 | | ||||||||||||
Other income (expense) |
812 | 866 | 1,480 | (1,244 | ) | |||||||||||
Interest expense |
(42,991 | ) | (49,033 | ) | (115,106 | ) | (92,301 | ) | ||||||||
Total other income (expense) |
50,443 | (46,634 | ) | (20,315 | ) | (90,121 | ) | |||||||||
Earnings before income taxes, equity earnings and minority
interest |
234,377 | 106,082 | 327,777 | 167,405 | ||||||||||||
Provision for income taxes |
86,533 | 40,629 | 121,278 | 64,116 | ||||||||||||
Equity in earnings of
unconsolidated entities |
736 | 259 | 1,672 | 2,092 | ||||||||||||
Minority interest expense (income) |
576 | (317 | ) | 664 | (6 | ) | ||||||||||
Net earnings |
$ | 148,004 | $ | 66,029 | $ | 207,507 | $ | 105,387 | ||||||||
Net earnings per share-basic |
$ | 0.77 | $ | 0.34 | $ | 1.08 | $ | 0.58 | ||||||||
Weighted average shares outstanding-basic |
192,743 | 192,224 | 192,323 | 181,168 | ||||||||||||
Net earnings per share-diluted |
$ | 0.75 | $ | 0.34 | $ | 1.06 | $ | 0.57 | ||||||||
Weighted average shares outstanding-diluted |
196,977 | 195,374 | 196,395 | 184,242 | ||||||||||||
2007 Q2 | FIS | |||
Net Earnings |
$ | 148,004 | ||
+ Interest Expense |
42,991 | |||
+ Minority Interest |
576 | |||
+ Income Taxes |
86,533 | |||
+ Depreciation/Amort |
113,891 | |||
- Interest Income |
(578 | ) | ||
- Equity in (Earnings) Losses of Unconsolidated Entities, net of tax |
(736 | ) | ||
- Other (Income) Expense |
(812 | ) | ||
- Covansys Gain |
(92,044 | ) | ||
EBITDA |
$ | 297,825 | ||
2006 Q2 | FIS | |||
Net Earnings |
$ | 66,029 | ||
+ Interest Expense |
49,033 | |||
+ Minority Interest |
(317 | ) | ||
+ Income Taxes |
40,629 | |||
+ Depreciation/Amort |
110,374 | |||
- Interest Income |
(1,533 | ) | ||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(259 | ) | ||
- Other (Income) Expense |
(866 | ) | ||
- Covansys Gain |
| |||
EBITDA |
$ | 263,090 | ||
2007 Q2 | FIS | |||
EBITDA |
$ | 297,825 | ||
Revenue |
$ | 1,176,238 | ||
EBITDA Margin |
25.3 | % |
2006 Q2 | FIS | |||
EBITDA |
$ | 263,090 | ||
Revenue |
$ | 1,021,946 | ||
EBITDA Margin |
25.7 | % |
2007 Q2 | FIS | |||
Net Earnings |
$ | 148,004 | ||
+ Interest Expense |
42,991 | |||
+ Minority Interest |
576 | |||
+ Income Taxes |
86,533 | |||
- Interest Income |
(578 | ) | ||
- Equity in (Earnings) Losses of Unconsolidated Entities, net of tax |
(736 | ) | ||
- Other (Income) Expense |
(812 | ) | ||
- Covansys Gain |
(92,044 | ) | ||
EBIT |
$ | 183,934 | ||
2006 Q2 | FIS | |||
Net Earnings |
$ | 66,029 | ||
+ Interest Expense |
49,033 | |||
+ Minority Interest |
(317 | ) | ||
+ Income Taxes |
40,629 | |||
- Interest Income |
(1,533 | ) | ||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(259 | ) | ||
- Other (Income) Expense |
(866 | ) | ||
- Covansys Gain |
| |||
EBIT |
$ | 152,716 | ||
2007 Q2 | FIS | |||
EBIT |
$ | 183,934 | ||
Revenue |
$ | 1,176,238 | ||
EBIT Margin |
15.6 | % |
2006 Q2 | FIS | |||
EBIT |
$ | 152,716 | ||
Revenue |
$ | 1,021,946 | ||
EBIT Margin |
14.9 | % |
2007 Q2 | FIS | |||
Net Earnings |
$ | 148,004 | ||
Adjusted diluted EPS |
$ | 0.75 | ||
Diluted Shares Outstanding |
196,977 |
2006 Q2 | FIS | |||
Net Earnings |
$ | 66,029 | ||
Adjusted EPS |
$ | 0.34 | ||
Diluted Shares Outstanding |
195,374 |
2007 Q2 | FIS | |||
Net Earnings |
$ | 148,004 | ||
+ Tax Adjusted Purchase Price Amortization |
23,901 | |||
Cash Earnings |
$ | 171,905 | ||
Diluted Cash EPS |
$ | 0.87 | ||
Diluted Shares Outstanding |
196,977 |
2006 Q2 | FIS | |||
Net Earnings |
$ | 66,029 | ||
+ Tax Adjusted Purchase Price Amortization |
28,597 | |||
Cash Earnings |
$ | 94,626 | ||
Diluted Cash EPS |
$ | 0.48 | ||
Diluted Shares Outstanding |
195,374 |
2007 Q2 | FIS | |||
Net Earnings |
$ | 148,004 | ||
+ Depreciation/Amort |
113,891 | |||
- Capital Expenditures |
(79,894 | ) | ||
Free Cash Flow |
$ | 182,001 | ||
2006 Q2 | FIS | |||
Net Earnings |
$ | 66,029 | ||
+ Depreciation/Amort |
110,374 | |||
- Capital Expenditures |
(80,156 | ) | ||
Free Cash Flow |
$ | 96,247 |
2007 Q2 | ||||
Stock Compensation |
$ | 8,752 |
2006 Q2 | ||||
Stock Compensation |
$ | 4,829 |
EBITDA |
$ | 297,825 | ||
Merger and Acquisition, and Integration Costs |
1,802 | |||
EBITDA, excluding non recurring items |
$ | 299,627 | ||
Net Earnings |
$ | 148,004 | ||
Merger and Acquisition, and Integration Costs, net of tax |
1,385 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Net Earnings, excluding non recurring items |
$ | 91,401 | ||
Diluted Shares Outstanding |
196,977 | |||
Net Earnings per diluted share |
$ | 0.75 | ||
Merger and Acquisition, and Integration Costs per share |
0.01 | |||
Covansys Gain, net of tax |
(0.29 | ) | ||
Net Earnings per diluted share, excluding non recurring items |
$ | 0.46 | ||
Cash Earnings |
$ | 171,905 | ||
Merger and Acquisition, and Integration Costs, net of tax |
1,385 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Cash Earnings, excluding non recurring items |
$ | 115,302 | ||
Cash Earnings per diluted share |
$ | 0.87 | ||
Merger and Acquisition, and Integration Costs per share |
0.01 | |||
Covansys Gain, net of tax |
(0.29 | ) | ||
Cash Earnings per diluted share, excluding non recurring items |
$ | 0.59 | ||
Free Cash Flow |
$ | 182,001 | ||
Merger and Acquisition, and Integration Costs, net of tax |
1,132 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Free Cash Flow, excluding non recurring items |
$ | 125,145 | ||
EBITDA |
$ | 263,090 | ||
Merger and Acquisition, and Integration Costs |
6,978 | |||
EBITDA, excluding non recurring items |
$ | 270,068 | ||
Net Earnings |
$ | 66,029 | ||
Merger and Acquisition, and Integration Costs, net of tax |
4,305 | |||
Net Earnings, excluding non recurring items |
$ | 70,334 | ||
Diluted Shares Outstanding |
195,374 | |||
Net Earnings per diluted share |
$ | 0.34 | ||
Merger and Acquisition, and Integration Costs per share |
0.03 | |||
Net Earnings per diluted share, excluding non recurring items |
$ | 0.37 | ||
Cash Earnings |
$ | 94,626 | ||
Merger and Acquisition, and Integration Costs, net of tax |
4,305 | |||
Cash Earnings, excluding non recurring items |
$ | 98,931 | ||
Cash Earnings per diluted share |
$ | 0.48 | ||
Merger and Acquisition, and Integration Costs per share |
0.03 | |||
Cash Earnings per diluted share, excluding non recurring items |
$ | 0.51 | ||
Free Cash Flow |
$ | 96,247 | ||
Merger and Acquisition, and Integration Costs, net of tax |
4,305 | |||
Free Cash Flow, excluding non recurring items |
$ | 100,552 | ||
2007 Six Months | FIS | |||
Net Earnings |
$ | 207,507 | ||
+ Interest Expense |
115,106 | |||
+ Minority Interest |
664 | |||
+ Income Taxes |
121,278 | |||
+ Depreciation/Amort |
224,503 | |||
- Interest Income |
(1,267 | ) | ||
- Equity in (Earnings) Losses of Unconsolidated Entities, net of tax |
(1,672 | ) | ||
- Other (Income) Expense |
(1,480 | ) | ||
- Covansys Gain |
(92,044 | ) | ||
EBITDA |
$ | 572,595 | ||
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 105,387 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 59,156 | ||||||
+ Interest Expense |
92,301 | 1,081 | | 93,382 | ||||||||||||
+ Minority Interest |
(6 | ) | | | (6 | ) | ||||||||||
+ Income Taxes |
64,116 | (26,396 | ) | (2,626 | ) | 35,094 | ||||||||||
+ Depreciation/Amort |
207,169 | 4,274 | 6,856 | 218,299 | ||||||||||||
- Interest Income |
(3,424 | ) | | | (3,424 | ) | ||||||||||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(2,092 | ) | | (2,092 | ) | |||||||||||
- Other (Income) Expense |
1,244 | 123 | 1,367 | |||||||||||||
- Covansys Gain |
| | | | ||||||||||||
EBITDA |
$ | 464,695 | $ | (63,441 | ) | $ | 522 | $ | 401,776 | |||||||
2007 Six Months | FIS | |||
EBITDA |
$ | 572,595 | ||
Revenue |
$ | 2,300,304 | ||
EBITDA Margin |
24.9 | % |
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
EBITDA |
$ | 464,695 | $ | (63,441 | ) | $ | 522 | $ | 401,776 | |||||||
Revenue |
$ | 1,922,882 | $ | 92,915 | $ | | $ | 2,015,797 | ||||||||
EBITDA Margin |
24.2 | % | -68.3 | % | 19.9 | % |
2007 Six Months | FIS | |||
Net Earnings |
$ | 207,507 | ||
+ Interest Expense |
115,106 | |||
+ Minority Interest |
664 | |||
+ Income Taxes |
121,278 | |||
- Interest Income |
(1,267 | ) | ||
- Equity in (Earnings) Losses of Unconsolidated Entities, net of tax |
(1,672 | ) | ||
- Other (Income) Expense |
(1,480 | ) | ||
- Covansys Gain |
(92,044 | ) | ||
EBIT |
$ | 348,092 | ||
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 105,387 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 59,156 | ||||||
+ Interest Expense |
92,301 | 1,081 | | 93,382 | ||||||||||||
+ Minority Interest |
(6 | ) | | | (6 | ) | ||||||||||
+ Income Taxes |
64,116 | (26,396 | ) | (2,626 | ) | 35,094 | ||||||||||
- Interest Income |
(3,424 | ) | | | (3,424 | ) | ||||||||||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(2,092 | ) | | | (2,092 | ) | ||||||||||
- Other (Income) Expense |
1,244 | 123 | | 1,367 | ||||||||||||
- Covansys Gain |
| | | | ||||||||||||
EBIT |
$ | 257,526 | $ | (67,715 | ) | $ | (6,334 | ) | $ | 183,477 | ||||||
2007 Six Months | FIS | |||
EBIT |
$ | 348,092 | ||
Revenue |
$ | 2,300,304 | ||
EBIT Margin |
15.1 | % |
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
EBIT |
$ | 257,526 | $ | (67,715 | ) | $ | (6,334 | ) | $ | 183,477 | ||||||
Revenue |
$ | 1,922,882 | $ | 92,915 | $ | | $ | 2,015,797 | ||||||||
EBIT Margin |
13.4 | % | -72.9 | % | 9.1 | % |
2007 Six Months | FIS | |||
Net Earnings |
$ | 207,507 | ||
Adjusted diluted EPS |
$ | 1.06 | ||
Diluted Shares Outstanding |
196,395 |
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 105,387 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 59,156 | ||||||
Adjusted EPS |
$ | 0.57 | $ | 0.30 | ||||||||||||
Diluted Shares Outstanding |
184,242 | 195,244 |
2007 Six Months | FIS | |||
Net Earnings |
$ | 207,507 | ||
+ Tax Adjusted Purchase Price Amortization |
49,513 | |||
Cash Earnings |
$ | 257,020 | ||
Diluted Cash EPS |
$ | 1.31 | ||
Diluted Shares Outstanding |
196,395 |
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 105,387 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 59,156 | ||||||
+ Tax Adjusted Purchase Price Amortization |
53,117 | 233 | 3,524 | 56,874 | ||||||||||||
Cash Earnings |
$ | 158,504 | $ | (42,290 | ) | $ | (184 | ) | $ | 116,030 | ||||||
Diluted Cash EPS |
$ | 0.86 | $ | 0.59 | ||||||||||||
Diluted Shares Outstanding |
184,242 | 195,244 |
2007 Six Months | FIS | |||
Net Earnings |
$ | 207,507 | ||
+ Depreciation/Amort |
224,503 | |||
- Capital Expenditures |
(154,010 | ) | ||
Free Cash Flow |
$ | 278,000 | ||
2006 Six Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 105,387 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 59,156 | ||||||
+ Depreciation/Amort |
207,169 | 4,274 | 6,856 | 218,299 | ||||||||||||
- Capital Expenditures |
(149,420 | ) | (5,200 | ) | | (154,620 | ) | |||||||||
Free Cash Flow |
$ | 163,136 | $ | (43,449 | ) | $ | 3,148 | $ | 122,835 |
2007 Six Months | ||||
Stock Compensation |
$ | 17,241 |
2006 Six Months | ||||||||||||||||
Stock Compensation |
$ | 32,787 | $ | 552 | $ | (552 | ) | $ | 32,787 |
EBITDA |
$ | 572,595 | ||
Merger and Acquisition, and Integration Costs |
6,080 | |||
EBITDA, excluding non recurring items |
$ | 578,675 | ||
Net Earnings |
$ | 207,507 | ||
Merger and Acquisition, and Integration Costs, net of tax |
4,501 | |||
Debt Restructure Charge, net of tax |
17,059 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Net Earnings, excluding non recurring items |
$ | 171,079 | ||
Diluted Shares Outstanding |
196,395 | |||
Net Earnings per diluted share |
$ | 1.06 | ||
Merger and Acquisition, and Integration Costs per share |
0.02 | |||
Debt Restructure Charge per share |
0.09 | |||
Covansys Gain, net of tax |
(0.30 | ) | ||
Net Earnings per diluted share, excluding non recurring items |
$ | 0.87 | ||
Cash Earnings |
$ | 257,020 | ||
Merger and Acquisition, and Integration Costs, net of tax |
4,501 | |||
Debt Restructure Charge, net of tax |
17,059 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Cash Earnings, excluding non recurring items |
$ | 220,592 | ||
Cash Earnings per diluted share |
$ | 1.31 | ||
Merger and Acquisition, and Integration Costs per share |
0.02 | |||
Debt Restructure Charge per share |
0.09 | |||
Covansys Gain, net of tax |
(0.30 | ) | ||
Cash Earnings per diluted share, excluding non recurring items |
$ | 1.12 | ||
Free Cash Flow |
$ | 278,000 | ||
Merger and Acquisition, and Integration Costs, net of tax |
3,564 | |||
Debt Restructure Charge, net of tax |
17,059 | |||
Covansys Gain, net of tax |
(57,988 | ) | ||
Free Cash Flow, excluding non recurring items |
$ | 240,635 | ||
Pro Forma EBITDA |
$ | 401,776 | ||
Merger and Acquisition, and Integration Costs |
88,729 | |||
Performance Based Stock Option Costs |
24,130 | |||
Pro Forma EBITDA, excluding non recurring items |
$ | 514,635 | ||
Pro Forma Net Earnings |
$ | 59,156 | ||
Merger and Acquisition, and Integration Costs, net of tax |
54,914 | |||
Performance Based Stock Option Costs, net of tax |
14,888 | |||
Pro Forma Net Earnings, excluding non recurring items |
$ | 128,958 | ||
Diluted Shares Outstanding |
184,242 | |||
Adjustment as if transaction took place 1/1/2005 |
11,002 | |||
Pro Forma Diluted Shares Outstanding |
195,244 | |||
Pro Forma Net Earnings per diluted share |
$ | 0.30 | ||
Merger and Acquisition, and Integration Costs per share |
0.28 | |||
Performance Based Stock Option Costs per share |
0.08 | |||
Pro Forma
Net Earnings per diluted share, excluding non recurring items |
$ | 0.66 | ||
Cash Earnings |
$ | 116,030 | ||
Merger and Acquisition, and Integration Costs, net of tax |
54,914 | |||
Performance Based Stock Option Costs, net of tax |
14,888 | |||
Cash Earnings, excluding non recurring items |
$ | 185,832 | ||
Cash Earnings per diluted share |
$ | 0.59 | ||
Merger and Acquisition, and Integration Costs per share |
0.28 | |||
Performance Based Stock Option Costs per share |
0.08 | |||
Cash Earnings per diluted share, excluding non recurring items |
$ | 0.95 | ||
Free Cash Flow |
$ | 122,835 | ||
Merger and Acquisition, and Integration Costs, net of tax |
54,914 | |||
Performance Based Stock Option Costs, net of tax |
14,888 | |||
Free Cash Flow, excluding non recurring items |
$ | 192,637 | ||
Tax Adjusted | ||||||||||||||||||||||||||||
Pro Forma | Purchase Price | Cash | ||||||||||||||||||||||||||
Certegy-Jan | FIS | Adjustments | Note | Pro Forma | Amortization | Earnings | ||||||||||||||||||||||
Total revenue |
$ | 92,915 | $ | 1,922,882 | $ | 2,015,797 | ||||||||||||||||||||||
Total cost of revenue |
73,218 | 1,342,055 | 6,856 | (1 | ) | 1,422,129 | ||||||||||||||||||||||
Gross profit (loss) |
19,697 | 580,827 | (6,856 | ) | 593,668 | |||||||||||||||||||||||
General and administrative |
7,645 | 271,595 | (522 | ) | (2 | ) | 278,718 | |||||||||||||||||||||
Research and development costs |
| 51,706 | 51,706 | |||||||||||||||||||||||||
Merger and Acquisition costs |
79,767 | | 79,767 | |||||||||||||||||||||||||
Income (loss) from operations |
(67,715 | ) | 257,526 | (6,334 | ) | 183,477 | ||||||||||||||||||||||
Interest income (expense) and other |
(1,204 | ) | (90,121 | ) | | (91,325 | ) | |||||||||||||||||||||
Income from continuing operations before tax and min. int |
(68,919 | ) | 167,405 | (6,334 | ) | 92,152 | ||||||||||||||||||||||
Provision for income tax |
(26,396 | ) | 64,116 | (2,626 | ) | (3 | ) | 35,094 | ||||||||||||||||||||
Income from continuing operations |
(42,523 | ) | 103,289 | (3,708 | ) | 57,058 | ||||||||||||||||||||||
Equity in earnings (loss) of unconsolidated entities, net |
| 2,092 | | 2,092 | ||||||||||||||||||||||||
Minority interests in earnings, net of tax |
| 6 | | 6 | ||||||||||||||||||||||||
Net income |
$ | (42,523 | ) | $ | 105,387 | $ | (3,708 | ) | $ | 59,156 | $ | 56,874 | $ | 116,030 | ||||||||||||||
Net income per share-basic |
$ | (0.68 | ) | $ | 0.58 | $ | 0.31 | $ | 0.60 | |||||||||||||||||||
Pro forma Weighted average shares-basic |
62,326 | 181,168 | 192,017 | 192,017 | ||||||||||||||||||||||||
Net income per share-diluted |
$ | (0.67 | ) | $ | 0.57 | $ | 0.30 | $ | 0.59 | |||||||||||||||||||
Pro forma Weighted average shares-diluted |
63,796 | 184,242 | 195,244 | 195,244 | ||||||||||||||||||||||||
Pro Forma Net Earnings |
$ | 59,156 | ||||||||||||||||||||||||||
Merger and Acquisition Costs, net of tax |
54,914 | |||||||||||||||||||||||||||
Performance Based Stock Option Costs, net of tax |
14,888 | |||||||||||||||||||||||||||
Pro Forma Net Earnings, excluding selected items |
$ | 128,958 |
(1) | Reflects the increase in amortization expense as a result of allocating an assumed portion of the merger consideration to intangible assets of Certegy, namely customer relationship intangibles and acquired software, and amortizing such intangibles over their estimated useful lives as of the assumed acquisition date, offset by the amortization expense for such intangibles actually recorded by Certegy during the respective periods. Customer relationships are being amortized over 10 years on an accelerated method. Acquired computer software is being amortized over its estimated useful life of up to 10 years on an accelerated method. The acquired trademarks are considered to have indefinite useful lives and, therefore, are not reflected in these adjustments. |
(2) | Under the merger agreement, all Certegy stock options and restricted stock and restricted stock units vested upon the closing of the merger. Accordingly, this adjustment reflects the elimination of historical stock compensation expense relating to the vesting of Certegy options in January 2006 (prior to merger), because such expense was reflected at the time of closing of the merger offset by option costs relating to options granted by FIS to certain employees of Certegy who remained with the merged entity. |
(3) | Reflects the tax benefit relating to the pro forma adjustments for the six months ended June 30, 2006. |
Historical | ||||||||||||||||
Transaction | Lender | Corporate | ||||||||||||||
Processing Services | Processing Services | and Other | Total | |||||||||||||
Processing and services revenue |
709,724 | 462,493 | 4,021 | 1,176,238 | ||||||||||||
Cost of revenues |
550,691 | 292,255 | | 842,946 | ||||||||||||
Gross profit |
159,033 | 170,238 | 4,021 | 333,292 | ||||||||||||
Selling, general and admin costs |
45,989 | 48,110 | 31,671 | 125,770 | ||||||||||||
Research development costs |
14,905 | 8,683 | | 23,588 | ||||||||||||
Operating income |
98,139 | 113,445 | (27,650 | ) | 183,934 | |||||||||||
Depreciation and amortization |
73,397 | 33,796 | 6,698 | 113,891 | ||||||||||||
EBITDA |
171,536 | 147,241 | (20,952 | ) | 297,825 | |||||||||||
EBITDA |
171,536 | 147,241 | (20,952 | ) | 297,825 | |||||||||||
Merger and Acquisition, and Integration costs |
| 1,802 | | 1,802 | ||||||||||||
EBITDA, excluding non-recurring items |
171,536 | 149,043 | (20,952 | ) | 299,627 |
Historical | ||||||||||||||||
Transaction | Lender | Corporate | ||||||||||||||
Processing Services | Processing Services | and Other | Total | |||||||||||||
Processing and services revenue |
1,390,269 | 902,882 | 7,153 | 2,300,304 | ||||||||||||
Cost of revenues |
1,080,742 | 575,520 | | 1,656,262 | ||||||||||||
Gross profit |
309,527 | 327,362 | 7,153 | 644,042 | ||||||||||||
Selling, general and admin costs |
89,028 | 95,066 | 61,159 | 245,253 | ||||||||||||
Research development costs |
32,423 | 18,274 | | 50,697 | ||||||||||||
Operating income |
188,076 | 214,022 | (54,006 | ) | 348,092 | |||||||||||
Depreciation and amortization |
144,165 | 67,552 | 12,786 | 224,503 | ||||||||||||
EBITDA |
332,241 | 281,574 | (41,220 | ) | 572,595 | |||||||||||
EBITDA |
332,241 | 281,574 | (41,220 | ) | 572,595 | |||||||||||
Merger and Acquisition, and Integration costs |
| 6,080 | | 6,080 | ||||||||||||
EBITDA, excluding selected items |
332,241 | 287,654 | (41,220 | ) | 578,675 |
Historical | ||||||||||||||||
Transaction | Lender | Corporate | ||||||||||||||
Processing Services | Processing Services | and Other | Total | |||||||||||||
Processing and services revenue |
612,076 | 408,081 | 1,789 | 1,021,946 | ||||||||||||
Cost of revenues |
474,648 | 245,070 | | 719,718 | ||||||||||||
Gross profit |
137,428 | 163,011 | 1,789 | 302,228 | ||||||||||||
Selling, general and admin costs |
51,089 | 50,173 | 24,604 | 125,866 | ||||||||||||
Research development costs |
15,268 | 8,378 | | 23,646 | ||||||||||||
Operating income |
71,071 | 104,460 | (22,815 | ) | 152,716 | |||||||||||
Depreciation and amortization |
72,906 | 35,104 | 2,364 | 110,374 | ||||||||||||
EBITDA |
143,977 | 139,564 | (20,451 | ) | 263,090 | |||||||||||
EBITDA |
143,977 | 139,564 | (20,451 | ) | 263,090 | |||||||||||
Merger and Acquisition costs |
3,530 | 1,842 | 1,606 | 6,978 | ||||||||||||
Acceleration of performance-based shares |
| | | | ||||||||||||
EBITDA, excluding selected items |
147,507 | 141,406 | (18,845 | ) | 270,068 |
Historical | ||||||||||||||||
Transaction | Lender | Corporate | ||||||||||||||
Processing Services | Processing Services | and Other | Total | |||||||||||||
Processing and services revenue |
1,113,624 | 808,581 | 677 | 1,922,882 | ||||||||||||
Cost of revenues |
862,464 | 479,591 | | 1,342,055 | ||||||||||||
Gross profit |
251,160 | 328,990 | 677 | 580,827 | ||||||||||||
Selling, general and admin costs |
90,605 | 109,236 | 71,754 | 271,595 | ||||||||||||
Research development costs |
34,345 | 17,361 | | 51,706 | ||||||||||||
Operating income |
126,210 | 202,393 | (71,077 | ) | 257,526 | |||||||||||
Depreciation and amortization |
132,500 | 71,224 | 3,445 | 207,169 | ||||||||||||
EBITDA |
258,710 | 273,617 | (67,632 | ) | 464,695 | |||||||||||
EBITDA |
258,710 | 273,617 | (67,632 | ) | 464,695 | |||||||||||
Merger and Acquisition costs |
4,283 | 2,012 | 82,434 | 88,729 | ||||||||||||
Acceleration of performance-based shares |
| | 24,130 | 24,130 | ||||||||||||
EBITDA, excluding selected items |
262,993 | 275,629 | 38,932 | 577,554 |
Pro Forma | ||||||||||||||||
Transaction | Lender | Corporate | ||||||||||||||
Processing Services | Processing Services | and Other | Total | |||||||||||||
Processing and services revenue |
1,204,587 | 808,581 | 2,629 | 2,015,797 | ||||||||||||
Cost of revenues |
942,538 | 479,591 | | 1,422,129 | ||||||||||||
Gross profit |
262,049 | 328,990 | 2,629 | 593,668 | ||||||||||||
Selling, general and admin costs |
95,015 | 109,236 | 154,234 | 358,485 | ||||||||||||
Research development costs |
34,345 | 17,361 | | 51,706 | ||||||||||||
Operating income |
132,689 | 202,393 | (151,605 | ) | 183,477 | |||||||||||
Depreciation and amortization |
143,540 | 71,224 | 3,535 | 218,299 | ||||||||||||
EBITDA |
276,229 | 273,617 | (148,070 | ) | 401,776 | |||||||||||
ProForma EBITDA |
276,229 | 273,617 | (148,070 | ) | 401,776 | |||||||||||
Merger and Acquisition costs |
4,283 | 2,012 | 82,434 | 88,729 | ||||||||||||
Acceleration of performance-based shares |
| | 24,130 | 24,130 | ||||||||||||
ProForma EBITDA, excluding selected items |
280,512 | 275,629 | (41,506 | ) | 514,635 |