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):
October 25, 2006
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 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EXHIBIT 99.1 |
Item 2.02. Results of Operations and Financial Condition
On October 25, 2006, Fidelity National Information Services, Inc. issued an earnings release announcing its financial results for the Third Quarter of 2006. The information in this Current Report is 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 in 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 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Information Services, Inc. Reports Third Quarter 2006 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: October 30, 2006 | 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 Third Quarter 2006 Earnings. |
PRESS RELEASE |
GAAP | 3rd Quarter | 3rd Quarter | ||||||
(amounts in millions) | 2006 | 2005 | ||||||
Total Revenue |
$ | 1,080.7 | million | $ | 698.1 | million | ||
Net Earnings |
$ | 78.6 | million | $ | 57.9 | million | ||
Net Earnings Per Diluted Share |
$ | 0.41 | $ | 0.45 |
Adjusted Pro Forma (see Appendix A) | 3rd Quarter | 3rd Quarter | ||||||||||
(amounts in millions) | 2006 | 2005 | % Chg | |||||||||
Total Revenue |
$ | 1,080.7 | million | $ | 980.9 | million | 10.2 | % | ||||
EBITDA |
$ | 286.2 | million | $ | 259.0 | million | 10.5 | % | ||||
Pro Forma Net Earnings |
$ | 82.2 | million | $ | 73.4 | million | 11.9 | % | ||||
Pro Forma Net Earnings Per Diluted Share |
$ | 0.42 | $ | 0.38 | 10.5 | % | ||||||
Cash Earnings |
$ | 110.9 | million | $ | 102.6 | million | 8.0 | % | ||||
Cash Earnings Per Diluted Share |
$ | 0.57 | $ | 0.54 | 5.6 | % |
Segment Revenues | 3rd Quarter | 3rd Quarter | ||||||||||
(amounts in millions) | 2006 | 2005 | % Chg. | |||||||||
Transaction Processing Services: |
||||||||||||
Integrated Financial Solutions |
$ | 280.7 | $ | 255.5 | 9.8 | % | ||||||
Enterprise Solutions |
253.6 | 230.4 | 10.0 | % | ||||||||
International |
118.8 | 86.9 | 36.8 | % | ||||||||
Other |
(2.7 | ) | (2.8 | ) | 4.5 | % | ||||||
$ | 650.4 | $ | 570.0 | 14.1 | % | |||||||
Lender Processing Services: |
||||||||||||
Mortgage Processing |
$ | 93.6 | $ | 91.1 | 2.7 | % | ||||||
Information Outsourcing |
339.4 | 321.6 | 5.5 | % | ||||||||
Other |
(0.1 | ) | 0.9 | (11.1 | )% | |||||||
$ | 432.9 | $ | 413.6 | 4.7 | % | |||||||
Corporate |
$ | (2.6 | ) | $ | (2.7 | ) | | |||||
Total FIS |
$ | 1,080.7 | $ | 980.9 | 10.2 | % | ||||||
| Revenue growth of 7% to 8% compared to its previous outlook for 5% to 7%; | ||
| Pro forma earnings per diluted share of $1.51 to $1.55; | ||
| Pro forma cash earnings per diluted share of $2.08 to $2.12; | ||
| Pro forma EBITDA growth of 10% to 12%; | ||
| Capital expenditures of approximately $300 million, including anticipated investments in the Brazilian credit card processing joint venture and the newly launched item processing and business process outsourcing operation; | ||
| Pro forma free cash flow of $440 million to $470 million, which includes the aforementioned capital investments in Brazil. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Processing and services revenues |
$ | 1,080,651 | $ | 698,109 | $ | 3,003,533 | $ | 2,058,402 | ||||||||
Cost of revenues |
772,580 | 447,794 | 2,114,635 | 1,331,373 | ||||||||||||
Selling, general, and administrative expenses |
112,724 | 93,047 | 384,319 | 312,921 | ||||||||||||
Research and development costs |
25,855 | 33,545 | 77,561 | 85,784 | ||||||||||||
Operating income |
169,492 | 123,723 | 427,018 | 328,324 | ||||||||||||
Other income (expense) |
||||||||||||||||
Interest income |
477 | 1,790 | 3,901 | 4,826 | ||||||||||||
Realized gains and losses |
(593 | ) | 821 | (1,837 | ) | (2,391 | ) | |||||||||
Interest expense |
(49,717 | ) | (37,548 | ) | (142,018 | ) | (87,357 | ) | ||||||||
Total other income (expense) |
(49,833 | ) | (34,937 | ) | (139,954 | ) | (84,922 | ) | ||||||||
Earnings before income taxes, equity earnings and minority interest |
119,659 | 88,786 | 287,064 | 243,402 | ||||||||||||
Income tax expense |
42,799 | 31,112 | 106,915 | 90,546 | ||||||||||||
Equity in earnings of unconsolidated entities |
(1,686 | ) | (2,135 | ) | (3,778 | ) | (4,379 | ) | ||||||||
Minority interest |
(34 | ) | 1,917 | (40 | ) | 6,171 | ||||||||||
Net earnings |
$ | 78,580 | $ | 57,892 | $ | 183,967 | $ | 151,064 | ||||||||
Net earnings per share-basic |
$ | 0.41 | $ | 0.45 | $ | 1.00 | $ | 1.18 | ||||||||
Weighted average shares outstanding-basic |
190,690 | 127,920 | 184,373 | 127,920 | ||||||||||||
Net earnings per share-diluted |
$ | 0.41 | $ | 0.45 | $ | 0.98 | $ | 1.18 | ||||||||
Weighted average shares outstanding-diluted |
193,626 | 127,920 | 187,405 | 127,920 | ||||||||||||
NOTE: The Adjustments Column represents pro forma adjustments relating to the merger transaction between CEY and FIS, the recapitalization transaction at FIS in March 2005, and the purchase of the remaining minority interest in Kordoba in September 2005 to reflect such transactions as if they occurred January 1, 2005 |
2006 Q3 | FIS | |||
Net Earnings |
$ | 78,580 | ||
+ Interest Expense |
49,717 | |||
+ Minority Interest |
(34 | ) | ||
+ Income Taxes |
42,799 | |||
+ Depreciation/Amort |
111,135 | |||
- Interest Income |
(477 | ) | ||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(1,686 | ) | ||
- Other (Income) Expense |
593 | |||
EBITDA |
$ | 280,627 | ||
2006 Q3 | FIS | |||
EBITDA |
$ | 280,627 | ||
Revenue |
$ | 1,080,651 | ||
EBITDA Margin |
26.0 | % |
2006 Q3 | FIS | |||
Net Earnings |
$ | 78,580 | ||
+ Interest Expense |
49,717 | |||
+ Minority Interest |
(34 | ) | ||
+ Income Taxes |
42,799 | |||
- Interest Income |
(477 | ) | ||
- Equity in (Earnings) Loss of Unconsolidated Entities, net of tax |
(1,686 | ) | ||
- Other (Income) Expense |
593 | |||
EBIT |
$ | 169,492 | ||
2006 Q3 | FIS | |||
EBIT |
$ | 169,492 | ||
Revenue |
$ | 1,080,651 | ||
EBIT Margin |
15.7 | % |
2006 Q3 | FIS | |||
Net Earnings |
$ | 78,580 | ||
Adjusted EPS |
$ | 0.41 | ||
Diluted Shares Outstanding |
193,626 |
2006 Q3 | FIS | |||
Net Earnings |
$ | 78,580 | ||
+ Tax Adjusted Purchase Price Amortization |
28,749 | |||
Cash Earnings |
$ | 107,329 | ||
Diluted Cash EPS |
$ | 0.55 | ||
Diluted Shares Outstanding |
193,626 |
2006 Q3 | FIS | |||
Net Earnings |
$ | 78,580 | ||
+ Depreciation/Amort |
111,135 | |||
- Capital Expenditures |
(67,114 | ) | ||
Free Cash Flow |
$ | 122,601 |
2006 Q3 | ||||
Stock Compensation |
$ | 4,434 |
EBITDA |
$ | 280,627 | ||
M&A and Integration costs |
5,621 | |||
EBITDA, excluding selected items |
$ | 286,248 | ||
Net Earnings |
$ | 78,580 | ||
M&A and Integration Costs, net of tax |
3,575 | |||
Net Earnings, excluding selected items |
$ | 82,155 | ||
Net Earnings per diluted share |
$ | 0.41 | ||
M&A and Integration costs per share |
0.01 | |||
Net Earnings per diluted share, excluding selected items |
$ | 0.42 | ||
Net Earnings, excluding selected items |
$ | 82,155 | ||
+ Tax Adjusted Purchase Price Amortization |
28,749 | |||
Cash Earnings, excluding selected items |
$ | 110,904 | ||
Net Earnings per diluted share, excluding selected items |
$ | 0.42 | ||
+ Tax Adjusted Purchase Price Amortization-per share |
0.15 | |||
Cash Earnings per diluted share, excluding selected items |
$ | 0.57 | ||
Net Earnings, excluding selected items |
$ | 82,155 | ||
+ Depreciation/Amort |
$ | 111,135 | ||
- Capital Expenditures |
(67,114 | ) | ||
Free Cash Flow, excluding selected items |
$ | 126,176 | ||
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 57,892 | $ | 22,667 | $ | (7,142 | ) | $ | 73,417 | |||||||
+ Interest Expense |
37,548 | 3,122 | | 40,670 | ||||||||||||
+ Minority Interest |
1,917 | | (740 | ) | 1,177 | |||||||||||
+ Income Taxes |
31,112 | 17,900 | (4,669 | ) | 44,343 | |||||||||||
+ Depreciation/Amort |
70,783 | 12,939 | 21,133 | 104,855 | ||||||||||||
- Interest Income |
(1,790 | ) | | | (1,790 | ) | ||||||||||
- Equity in (Earnings) Loss of
Non-Consolidated Entities, net of tax |
(2,135 | ) | | | (2,135 | ) | ||||||||||
- Other (Income) Expense |
(821 | ) | (671 | ) | | (1,492 | ) | |||||||||
EBITDA |
$ | 194,506 | $ | 55,957 | $ | 8,582 | $ | 259,045 | ||||||||
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
EBITDA |
$ | 194,506 | $ | 55,957 | $ | 8,582 | $ | 259,045 | ||||||||
Revenue |
$ | 698,109 | $ | 282,774 | $ | | $ | 980,883 | ||||||||
EBITDA Margin |
27.9 | % | 19.8 | % | 26.4 | % |
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 57,892 | $ | 22,667 | $ | (7,142 | ) | $ | 73,417 | |||||||
+ Interest Expense |
37,548 | 3,122 | | 40,670 | ||||||||||||
+ Minority Interest |
1,917 | | (740 | ) | 1,177 | |||||||||||
+ Income Taxes |
31,112 | 17,900 | (4,669 | ) | 44,343 | |||||||||||
- Interest Income |
(1,790 | ) | | | (1,790 | ) | ||||||||||
- Equity in (Earnings) Loss of
Non-Consolidated Entities, net of tax |
(2,135 | ) | | | (2,135 | ) | ||||||||||
- Other (Income) Expense |
(821 | ) | (671 | ) | | (1,492 | ) | |||||||||
EBIT |
$ | 123,723 | $ | 43,018 | $ | (12,551 | ) | $ | 154,190 | |||||||
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
EBIT |
$ | 123,723 | $ | 43,018 | $ | (12,551 | ) | $ | 154,190 | |||||||
Revenue |
$ | 698,109 | $ | 282,774 | $ | | $ | 980,883 | ||||||||
EBIT Margin |
17.7 | % | 15.2 | % | 15.7 | % |
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 57,892 | $ | 22,667 | $ | (7,142 | ) | $ | 73,417 | |||||||
Adjusted EPS |
$ | 0.45 | $ | 0.38 | ||||||||||||
Diluted Shares Outstanding |
127,920 | 191,233 |
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 57,892 | $ | 22,667 | $ | (7,142 | ) | $ | 73,417 | |||||||
+ Tax Adjusted Purchase Price Amortization |
17,941 | 680 | 10,606 | 29,227 | ||||||||||||
Cash Earnings |
$ | 75,833 | $ | 23,347 | $ | 3,464 | $ | 102,644 | ||||||||
Diluted Cash EPS |
$ | 0.59 | $ | 0.54 | ||||||||||||
Diluted Shares Outstanding |
127,920 | | | 191,233 |
2005 Q3 | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 57,892 | $ | 22,667 | $ | (7,142 | ) | $ | 73,417 | |||||||
+ Depreciation/Amort |
70,783 | 12,939 | 21,133 | 104,855 | ||||||||||||
- Capital Expenditures |
(74,602 | ) | (14,764 | ) | | (89,366 | ) | |||||||||
Free Cash Flow |
$ | 54,073 | $ | 20,842 | $ | 13,991 | $ | 88,906 | ||||||||
2005 Q3 | ||||||||||||||||
Stock Compensation |
$ | 4,562 | $ | 2,900 | $ | (2,900 | ) | $ | 4,562 |
NOTE: The Adjustments Column represents pro forma adjustments relating to the merger transaction between CEY and FIS, the recapitalization transaction at FIS in March 2005, and the purchase of the remaining minority interest in Kordoba in September 2005 to reflect such transactions as if they occurred January 1, 2005 |
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 183,967 | $ | (42,523 | ) | (3,708 | ) | $ | 137,736 | |||||||
+ Interest Expense |
142,018 | 1,081 | | 143,099 | ||||||||||||
+ Minority Interest |
(40 | ) | | | (40 | ) | ||||||||||
+ Income Taxes |
106,915 | (26,396 | ) | (2,626 | ) | 77,893 | ||||||||||
+ Depreciation/Amort |
318,304 | 4,274 | 6,856 | 329,434 | ||||||||||||
- Interest Income |
(3,901 | ) | | | (3,901 | ) | ||||||||||
- Equity in (Earnings) Loss of Unconsolidated
Entities, net of tax |
(3,778 | ) | | (3,778 | ) | |||||||||||
- Other (Income) Expense |
1,837 | 123 | 1,960 | |||||||||||||
EBITDA |
$ | 745,322 | $ | (63,441 | ) | $ | 522 | $ | 682,403 | |||||||
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
EBITDA |
$ | 745,322 | $ | (63,441 | ) | $ | 522 | $ | 682,403 | |||||||
Revenue |
$ | 3,003,533 | $ | 92,915 | $ | | $ | 3,096,448 | ||||||||
EBITDA Margin |
24.8 | % | -68.3 | % | 22.0 | % |
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 183,967 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 137,736 | ||||||
+ Interest Expense |
142,018 | 1,081 | | 143,099 | ||||||||||||
+ Minority Interest |
(40 | ) | | | (40 | ) | ||||||||||
+ Income Taxes |
106,915 | (26,396 | ) | (2,626 | ) | 77,893 | ||||||||||
- Interest Income |
(3,901 | ) | | | (3,901 | ) | ||||||||||
- Equity in (Earnings) Loss of Unconsolidated
Entities, net of tax |
(3,778 | ) | | | (3,778 | ) | ||||||||||
- Other (Income) Expense |
1,837 | 123 | | 1,960 | ||||||||||||
EBIT |
$ | 427,018 | $ | (67,715 | ) | $ | (6,334 | ) | $ | 352,969 | ||||||
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
EBIT |
$ | 427,018 | $ | (67,715 | ) | $ | (6,334 | ) | $ | 352,969 | ||||||
Revenue |
$ | 3,003,533 | $ | 92,915 | $ | | $ | 3,096,448 | ||||||||
EBIT Margin |
14.2 | % | -72.9 | % | 11.4 | % |
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 183,967 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 137,736 | ||||||
Adjusted EPS |
$ | 0.98 | $ | 0.71 | ||||||||||||
Diluted Shares Outstanding |
187,405 | 194,700 |
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 183,967 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 137,736 | ||||||
+ Tax Adjusted Purchase Price Amortization |
81,866 | 233 | 3,524 | 85,623 | ||||||||||||
Cash Earnings |
$ | 265,833 | $ | (42,290 | ) | $ | (184 | ) | $ | 223,359 | ||||||
Diluted Cash EPS |
$ | 1.42 | $ | 1.15 | ||||||||||||
Diluted Shares Outstanding |
187,405 | 194,700 |
2006 Nine Months | FIS | CEY-Jan | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 183,967 | $ | (42,523 | ) | $ | (3,708 | ) | $ | 137,736 | ||||||
+ Depreciation/Amort |
318,304 | 4,274 | 6,856 | 329,434 | ||||||||||||
- Capital Expenditures |
(216,534 | ) | (5,200 | ) | | (221,734 | ) | |||||||||
Free Cash Flow |
$ | 285,737 | $ | (43,449 | ) | $ | 3,148 | $ | 245,436 |
2006 Nine Months | ||||||||||||||||
Stock Compensation |
$ | 37,222 | $ | 552 | $ | (552 | ) | $ | 37,222 |
Pro Forma EBITDA |
$ | 682,403 | ||
M&A and Integration costs |
94,350 | |||
Performance Based Stock Option Costs |
24,130 | |||
Pro Forma EBITDA, excluding selected items |
$ | 800,883 | ||
Pro Forma Net Earnings |
137,736 | |||
M&A and Integration Costs, net of tax |
58,489 | |||
Performance Based Stock Option Costs, net of tax |
14,888 | |||
Pro Forma Net Earnings, excluding selected items |
$ | 211,113 | ||
Weighted Average Shares |
187,405 | |||
Adjustment as if transaction took place 1/1/2005 |
7,295 | |||
Pro Forma Weighted Average Shares |
194,700 | |||
Pro Forma Net Earnings per diluted share |
$ | 0.71 | ||
M&A and Integration costs per share |
0.29 | |||
Performance Based Stock Option Costs per share |
0.08 | |||
Pro Forma Net Earnings per diluted share, excluding selected items |
$ | 1.08 | ||
Net Earnings, excluding selected items |
211,113 | |||
+ Tax Adjusted Purchase Price Amortization |
85,623 | |||
Cash Earnings, excluding selected items |
296,736 | |||
Net Earnings per diluted share, excluding selected items |
1.08 | |||
+ Tax Adjusted Purchase Price Amortizationper share |
0.44 | |||
Cash Earnings per diluted share, excluding selected items |
$ | 1.52 | ||
Net Earnings, excluding selected items |
$ | 211,113 | ||
+ Depreciation/Amort |
329,434 | |||
- Capital Expenditures |
(221,734 | ) | ||
Free Cash Flow, excluding selected items |
$ | 318,813 | ||
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 151,064 | $ | 69,213 | $ | (42,481 | ) | $ | 177,796 | |||||||
+ Interest Expense |
87,357 | 9,677 | 21,031 | 118,065 | ||||||||||||
+ Minority Interest |
6,171 | | (2,368 | ) | 3,803 | |||||||||||
+ Income Taxes |
90,546 | 45,969 | (26,568 | ) | 109,947 | |||||||||||
+ Depreciation/Amort |
221,886 | 38,352 | 63,399 | 323,637 | ||||||||||||
- Interest Income |
(4,826 | ) | | | (4,826 | ) | ||||||||||
- Equity in (Earnings) Loss of
Non-Consolidated Entities, net of tax |
(4,379 | ) | | | (4,379 | ) | ||||||||||
- Other (Income) Expense |
2,391 | (1,412 | ) | | 979 | |||||||||||
EBITDA |
$ | 550,210 | $ | 161,799 | $ | 13,013 | $ | 725,022 | ||||||||
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
EBITDA |
$ | 550,210 | $ | 161,799 | $ | 13,013 | $ | 725,022 | ||||||||
Revenue |
$ | 2,058,402 | $ | 821,255 | $ | | $ | 2,879,657 | ||||||||
EBITDA Margin |
26.7 | % | 19.7 | % | 25.2 | % |
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 151,064 | $ | 69,213 | $ | (42,481 | ) | $ | 177,796 | |||||||
+ Interest Expense |
87,357 | 9,677 | 21,031 | 118,065 | ||||||||||||
+ Minority Interest |
6,171 | | (2,368 | ) | 3,803 | |||||||||||
+ Income Taxes |
90,546 | 45,969 | (26,568 | ) | 109,947 | |||||||||||
- Interest Income |
(4,826 | ) | | | (4,826 | ) | ||||||||||
- Equity in (Earnings) Loss of
Non-Consolidated Entities, net of tax |
(4,379 | ) | | | (4,379 | ) | ||||||||||
- Other (Income) Expense |
2,391 | (1,412 | ) | | 979 | |||||||||||
EBIT |
$ | 328,324 | $ | 123,447 | $ | (50,386 | ) | $ | 401,385 | |||||||
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
EBIT |
$ | 328,324 | $ | 123,447 | $ | (50,386 | ) | $ | 401,385 | |||||||
Revenue |
$ | 2,058,402 | $ | 821,255 | $ | | $ | 2,879,657 | ||||||||
EBIT Margin |
16.0 | % | 15.0 | % | 13.9 | % |
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 151,064 | $ | 69,213 | $ | (42,481 | ) | $ | 177,796 | |||||||
Adjusted EPS |
$ | 1.18 | $ | 0.93 | ||||||||||||
Diluted Shares Outstanding |
127,920 | 190,864 |
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 151,064 | $ | 69,213 | $ | (42,481 | ) | $ | 177,796 | |||||||
+ Tax Adjusted Purchase Price Amortization |
60,857 | 1,361 | 31,819 | 94,037 | ||||||||||||
Cash Earnings |
$ | 211,921 | $ | 70,574 | $ | (10,662 | ) | $ | 271,833 | |||||||
Diluted Cash EPS |
$ | 1.66 | $ | 1.42 | ||||||||||||
Diluted Shares Outstanding |
127,920 | | | 190,864 |
2005 Nine Months | FIS | CEY | ADJ | Pro Forma | ||||||||||||
Net Earnings |
$ | 151,064 | $ | 69,213 | $ | (42,481 | ) | $ | 177,796 | |||||||
+ Depreciation/Amort |
221,886 | 38,352 | 63,399 | 323,637 | ||||||||||||
- Capital Expenditures |
(180,497 | ) | (42,883 | ) | | (223,380 | ) | |||||||||
Free Cash Flow |
$ | 192,453 | $ | 64,682 | $ | 20,918 | $ | 278,053 | ||||||||
2005 Nine Months | ||||||||||||||||
Stock Compensation |
$ | 16,017 | $ | 9,200 | $ | (9,200 | ) | $ | 16,017 |
Tax Adjusted | ||||||||||||||||||||||||
Pro Forma | Purchase Price | Cash | ||||||||||||||||||||||
Certegy-Jan | FIS | Adjustments | Pro Forma | Amortization | Earnings | |||||||||||||||||||
Total revenue |
$ | 92,915 | $ | 3,003,533 | $ | 3,096,448 | ||||||||||||||||||
Total cost of revenue |
73,218 | 2,114,635 | 6,856 | 2,194,709 | ||||||||||||||||||||
Gross profit (loss) |
19,697 | 888,898 | (6,856 | ) | 901,739 | |||||||||||||||||||
General and administrative |
7,645 | 369,736 | (522 | ) | 376,859 | |||||||||||||||||||
Research and development costs |
| 77,561 | 77,561 | |||||||||||||||||||||
Merger and Acquisition costs |
79,767 | 14,583 | 94,350 | |||||||||||||||||||||
Income (loss) from operations |
(67,715 | ) | 427,018 | (6,334 | ) | 352,969 | ||||||||||||||||||
Interest income (expense) and other |
(1,204 | ) | (139,954 | ) | | (141,158 | ) | |||||||||||||||||
Income from continuing operations before tax and min. int |
(68,919 | ) | 287,064 | (6,334 | ) | 211,811 | ||||||||||||||||||
Provision for income tax |
(26,396 | ) | 106,915 | (2,626 | ) | 77,893 | ||||||||||||||||||
Income from continuing operations |
(42,523 | ) | 180,149 | (3,708 | ) | 133,918 | ||||||||||||||||||
Equity in earnings (loss) of unconsolidated entities, net |
| 3,778 | | 3,778 | ||||||||||||||||||||
Minority interests in earnings, net of tax |
| 40 | | 40 | ||||||||||||||||||||
Net income |
$ | (42,523 | ) | $ | 183,967 | $ | (3,708 | ) | $ | 137,736 | $ | 85,623 | $ | 223,359 | ||||||||||
Net income per share-basic |
$ | (0.68 | ) | $ | 1.00 | $ | 0.72 | $ | 1.17 | |||||||||||||||
Pro forma Weighted average shares-basic |
62,326 | 184,373 | 191,567 | 191,567 | ||||||||||||||||||||
Net income per share-diluted |
$ | (0.67 | ) | $ | 0.98 | $ | 0.71 | $ | 1.15 | |||||||||||||||
Pro forma Weighted average shares-diluted |
63,796 | 187,405 | 194,700 | 194,700 | ||||||||||||||||||||
Pro Forma Net Earnings |
$ | 137,736 | ||
Merger and Acquisition and Integration Costs, net of tax |
58,489 | |||
Performance Based Stock Option Costs, net of tax |
14,888 | |||
Pro Forma Net Earnings, excluding selected items |
$ | 211,113 |
2006- Quarter 3 | Pro Forma | Historical | ||||||||||||||||||||||||||||||
Transaction | Lender | Transaction | Lender | |||||||||||||||||||||||||||||
Processing | Processing | Corporate | Processing | Processing | Corporate | |||||||||||||||||||||||||||
Services | Services | and Other | Total | Services | Services | and Other | Total | |||||||||||||||||||||||||
Processing and services revenue |
650,406 | 432,891 | (2,646 | ) | 1,080,651 | 650,406 | 432,891 | (2,646 | ) | 1,080,651 | ||||||||||||||||||||||
Cost of revenues |
514,390 | 258,190 | | 772,580 | 514,390 | 258,190 | | 772,580 | ||||||||||||||||||||||||
Gross profit |
136,016 | 174,701 | (2,646 | ) | 308,071 | 136,016 | 174,701 | (2,646 | ) | 308,071 | ||||||||||||||||||||||
Selling, general and admin costs |
39,736 | 52,338 | 20,650 | 112,724 | 39,736 | 52,338 | 20,650 | 112,724 | ||||||||||||||||||||||||
Research development costs |
17,838 | 8,017 | | 25,855 | 17,838 | 8,017 | | 25,855 | ||||||||||||||||||||||||
Operating income |
78,442 | 114,346 | (23,296 | ) | 169,492 | 78,442 | 114,346 | (23,296 | ) | 169,492 | ||||||||||||||||||||||
Depreciation and amortization |
75,158 | 33,658 | 2,319 | 111,135 | 75,158 | 33,658 | 2,319 | 111,135 | ||||||||||||||||||||||||
EBITDA |
153,600 | 148,004 | (20,977 | ) | 280,627 | 153,600 | 148,004 | (20,977 | ) | 280,627 | ||||||||||||||||||||||
ProForma EBITDA |
153,600 | 148,004 | (20,977 | ) | 280,627 | |||||||||||||||||||||||||||
Merger and Acquisition and
Integration costs |
3,568 | 1,337 | 716 | 5,621 | ||||||||||||||||||||||||||||
ProForma EBITDA, excluding
selected items |
157,168 | 149,341 | (20,261 | ) | 286,248 |
2006- 9mths YTD | Pro Forma | Historical | ||||||||||||||||||||||||||||||
Transaction | Lender | Transaction | Lender | |||||||||||||||||||||||||||||
Processing | Processing | Corporate | Processing | Processing | Corporate | |||||||||||||||||||||||||||
Services | Services | and Other | Total | Services | Services | and Other | Total | |||||||||||||||||||||||||
Processing and services revenue |
1,854,993 | 1,241,472 | (17 | ) | 3,096,448 | 1,764,030 | 1,241,472 | (1,969 | ) | 3,003,533 | ||||||||||||||||||||||
Cost of revenues |
1,456,928 | 737,781 | | 2,194,709 | 1,376,854 | 737,781 | | 2,114,635 | ||||||||||||||||||||||||
Gross profit |
398,065 | 503,691 | (17 | ) | 901,739 | 387,176 | 503,691 | (1,969 | ) | 888,898 | ||||||||||||||||||||||
Selling, general and admin costs |
134,751 | 161,574 | 174,884 | 471,209 | 130,341 | 161,574 | 92,404 | 384,319 | ||||||||||||||||||||||||
Research development costs |
52,183 | 25,378 | | 77,561 | 52,183 | 25,378 | | 77,561 | ||||||||||||||||||||||||
Operating income |
211,131 | 316,739 | (174,901 | ) | 352,969 | 204,652 | 316,739 | (94,373 | ) | 427,018 | ||||||||||||||||||||||
Depreciation and amortization |
218,698 | 104,882 | 5,854 | 329,434 | 207,658 | 104,882 | 5,764 | 318,304 | ||||||||||||||||||||||||
EBITDA |
429,829 | 421,621 | (169,047 | ) | 682,403 | 412,310 | 421,621 | (88,609 | ) | 745,322 | ||||||||||||||||||||||
ProForma EBITDA |
429,829 | 421,621 | (169,047 | ) | 682,403 | |||||||||||||||||||||||||||
Merger and Acquisition and
Integration costs |
7,851 | 3,349 | 83,150 | 94,350 | ||||||||||||||||||||||||||||
Acceleration of performance-based
shares |
| | 24,130 | 24,130 | ||||||||||||||||||||||||||||
ProForma EBITDA, excluding
selected items |
437,680 | 424,970 | (61,767 | ) | 800,883 |
2005 - Quarter 3 | Pro Forma | Historical | ||||||||||||||||||||||||||||||
Transaction | Lender | Transaction | Lender | |||||||||||||||||||||||||||||
Processing | Processing | Corporate | Processing | Processing | Corporate | |||||||||||||||||||||||||||
Services | Services | and Other | Total | Services | Services | and Other | Total | |||||||||||||||||||||||||
Processing and services revenue |
570,015 | 413,591 | (2,723 | ) | 980,883 | 287,241 | 413,591 | (2,723 | ) | 698,109 | ||||||||||||||||||||||
Cost of revenues |
439,483 | 231,179 | | 670,662 | 216,615 | 231,179 | | 447,794 | ||||||||||||||||||||||||
Gross profit |
130,532 | 182,412 | (2,723 | ) | 310,221 | 70,626 | 182,412 | (2,723 | ) | 250,315 | ||||||||||||||||||||||
Selling, general and admin costs |
35,315 | 55,693 | 31,478 | 122,486 | 13,312 | 55,693 | 24,042 | 93,047 | ||||||||||||||||||||||||
Research development costs |
26,294 | 7,251 | | 33,545 | 26,294 | 7,251 | | 33,545 | ||||||||||||||||||||||||
Operating income |
68,923 | 119,468 | (34,201 | ) | 154,190 | 31,020 | 119,468 | (26,765 | ) | 123,723 | ||||||||||||||||||||||
Depreciation and amortization |
68,145 | 34,334 | 2,376 | 104,855 | 34,360 | 34,334 | 2,089 | 70,783 | ||||||||||||||||||||||||
EBITDA |
137,068 | 153,802 | (31,825 | ) | 259,045 | 65,380 | 153,802 | (24,676 | ) | 194,506 | ||||||||||||||||||||||
2005 - 9 mths YTD | Pro Forma | Historical | ||||||||||||||||||||||||||||||
Transaction | Lender | Transaction | Lender | |||||||||||||||||||||||||||||
Processing | Processing | Corporate | Processing | Processing | Corporate | |||||||||||||||||||||||||||
Services | Services | and Other | Total | Services | Services | and Other | Total | |||||||||||||||||||||||||
Processing and services revenue |
1,726,995 | 1,156,848 | (4,186 | ) | 2,879,657 | 905,740 | 1,156,848 | (4,186 | ) | 2,058,402 | ||||||||||||||||||||||
Cost of revenues |
1,323,088 | 659,657 | | 1,982,745 | 671,716 | 659,657 | | 1,331,373 | ||||||||||||||||||||||||
Gross profit |
403,907 | 497,191 | (4,186 | ) | 896,912 | 234,024 | 497,191 | (4,186 | ) | 727,029 | ||||||||||||||||||||||
Selling, general and admin costs |
141,618 | 171,593 | 96,532 | 409,743 | 71,016 | 171,593 | 70,312 | 312,921 | ||||||||||||||||||||||||
Research development costs |
66,530 | 19,254 | | 85,784 | 66,530 | 19,254 | | 85,784 | ||||||||||||||||||||||||
Operating income |
195,759 | 306,344 | (100,718 | ) | 401,385 | 96,478 | 306,344 | (74,498 | ) | 328,324 | ||||||||||||||||||||||
Depreciation and amortization |
209,155 | 109,235 | 5,247 | 323,637 | 108,328 | 109,235 | 4,323 | 221,886 | ||||||||||||||||||||||||
EBITDA |
404,914 | 415,579 | (95,471 | ) | 725,022 | 204,806 | 415,579 | (70,175 | ) | 550,210 | ||||||||||||||||||||||