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):
April 28, 2009
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) 854-5000
(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 | ||
EXHIBIT 99.2 |
Item 2.02. Results of Operations and Financial Condition
On April 28, 2009, Fidelity National Information Services, Inc. issued an earnings release announcing its financial results for the First Quarter of 2009. 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 and a copy of the financial results presentation is attached as Exhibit 99.2
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Information Services, Inc. Reports First Quarter 2009 Earnings. | |
99.2 |
Financial results presentation. |
Fidelity National Information
Services, Inc. |
||||
Date: April 29, 2009 | By: | /s/ George P. Scanlon | ||
Name: George P. Scanlon | ||||
Title: Executive Vice President
and Chief Financial Officer |
||||
EXHIBIT INDEX
Exhibit |
Description |
|
99.1 |
Press release announcing Fidelity National Information Services, Inc. Reports First Quarter 2009 Earnings. | |
99.2 |
Financial results presentation. |
| Financial Solutions revenue declined 3.2% to $271.3 million compared to $280.4 million in the prior period, as increased demand for risk management and commercial outsourcing services was offset by lower software license and professional services revenue; | ||
| Payment Solutions revenue declined 2.3% to $364.7 million compared to $373.3 million in the 2008 quarter, due primarily to a $9.7 million decline in the companys retail check guarantee business. Excluding Check Services revenue from both periods, Payment Solutions revenue increased 0.4%; | ||
| International revenue declined 8.3% to $162.3 million in U.S. dollars, compared to $176.9 million in the prior year quarter. International revenue increased 11.5% in constant currency, driven by 16.3% growth in payments and 4.5% growth in financial solutions. |
| Financial Solutions EBITDA declined 2.9% to $102.0 million, due primarily to a decline in high margin software sales. The 37.6% margin was comparable to the prior period; | ||
| Payment Solutions EBITDA increased 11.5% to $95.2 million, and the margin increased 320 basis points to 26.1%. The improvement is attributable to increased operating efficiency; | ||
| International EBITDA decreased 8.6% to $23.4 million due to a $5.2 million unfavorable currency impact. The International margin of 14.4% was comparable to prior year. |
Exhibit A
|
Consolidated Statements of Earnings for the Three Months Ended March 31, 2009 and 2008 | |
Exhibit B
|
Consolidated Balance Sheets as of March 31, 2009 and December 31, 2008 | |
Exhibit C
|
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2009 and 2008 | |
Exhibit D
|
Supplemental Non-GAAP Financial Information for the Three Months Ended March 31, 2009 and 2008 | |
Exhibit E
|
Supplemental GAAP to Non-GAAP Reconciliation Unaudited for the Three Months Ended March 31, 2009 and 2008 |
1
Three months ended March 31, | ||||||||
2009 | 2008 | |||||||
Processing and services revenues |
$ | 797.8 | $ | 830.3 | ||||
Cost of revenues |
594.3 | 648.7 | ||||||
Selling, general and administrative expenses |
99.0 | 111.1 | ||||||
Research and development costs |
22.6 | 19.3 | ||||||
Operating income |
81.9 | 51.2 | ||||||
Other income (expense): |
||||||||
Interest income |
0.8 | 2.8 | ||||||
Interest expense |
(32.0 | ) | (38.8 | ) | ||||
Other income (expense) |
1.2 | (1.2 | ) | |||||
Total other income (expense) |
(30.0 | ) | (37.2 | ) | ||||
Earnings from continuing operations before income taxes |
51.9 | 14.0 | ||||||
Provision for income taxes |
17.9 | 3.3 | ||||||
Net earnings from continuing operations |
34.0 | 10.7 | ||||||
(Loss) earnings from discontinued operations, net of tax |
(1.3 | ) | 59.6 | |||||
Net earnings |
32.7 | 70.3 | ||||||
Net loss attributable to noncontrolling interest |
0.3 | 0.2 | ||||||
Net earnings attributable to FIS |
$ | 33.0 | $ | 70.5 | ||||
Net earnings
per share-basic from continuing operations attributable to FIS common
stockholders * |
$ | 0.18 | $ | 0.06 | ||||
Net earnings per share-basic from discontinued operations attributable to FIS common stockholders * |
(0.01 | ) | 0.30 | |||||
Net earnings per share-basic attributable to FIS common stockholders * |
$ | 0.17 | $ | 0.36 | ||||
Weighted average shares outstanding-basic |
190.0 | 194.5 | ||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders * |
$ | 0.18 | $ | 0.06 | ||||
Net earnings per share-diluted from discontinued operations attributable to FIS common stockholders * |
(0.01 | ) | 0.30 | |||||
Net earnings per share-diluted attributable to FIS common stockholders * |
$ | 0.17 | $ | 0.36 | ||||
Weighted average shares outstanding-diluted |
191.6 | 196.5 | ||||||
Amounts attributable to FIS common stockholders: |
||||||||
Net earnings from continuing operations, net of tax |
$ | 34.3 | $ | 10.9 | ||||
(Loss) earnings from discontinued operations, net of tax |
(1.3 | ) | 59.6 | |||||
Net earnings |
$ | 33.0 | $ | 70.5 | ||||
* | Amounts may not sum due to rounding. |
2
As of | As of | |||||||
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 272.0 | $ | 220.9 | ||||
Settlement deposits |
39.2 | 31.4 | ||||||
Trade receivables, net |
498.8 | 538.1 | ||||||
Settlement receivables |
42.7 | 52.1 | ||||||
Other receivables |
86.3 | 121.1 | ||||||
Receivable from FNF and LPS |
11.2 | 10.1 | ||||||
Prepaid expenses and other current assets |
99.1 | 115.1 | ||||||
Deferred income taxes |
62.3 | 91.0 | ||||||
Total current assets |
1,111.6 | 1,179.8 | ||||||
Property and equipment, net of accumulated depreciation and amortization |
269.6 | 272.6 | ||||||
Goodwill |
4,190.1 | 4,194.0 | ||||||
Other intangible assets, net of accumulated amortization |
893.1 | 924.3 | ||||||
Computer software, net of accumulated amortization |
613.0 | 617.0 | ||||||
Deferred contract costs |
237.2 | 241.2 | ||||||
Long-term notes receivable from FNF |
5.3 | 5.5 | ||||||
Other noncurrent assets |
72.1 | 79.6 | ||||||
Total assets |
$ | 7,392.0 | $ | 7,514.0 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 370.7 | $ | 480.5 | ||||
Settlement payables |
82.4 | 83.3 | ||||||
Current portion of long-term debt |
132.8 | 105.5 | ||||||
Deferred revenues |
192.5 | 182.9 | ||||||
Total current liabilities |
778.4 | 852.2 | ||||||
Deferred revenues |
87.9 | 86.7 | ||||||
Deferred income taxes |
326.6 | 346.3 | ||||||
Long-term debt, excluding current portion |
2,327.7 | 2,409.0 | ||||||
Other long-term liabilities |
147.5 | 122.8 | ||||||
Total liabilities |
3,668.1 | 3,817.0 | ||||||
Stockholders equity: |
||||||||
FIS stockholders equity: |
||||||||
Preferred stock $0.01 par value |
| | ||||||
Common stock $0.01 par value |
2.0 | 2.0 | ||||||
Additional paid in capital |
2,961.6 | 2,959.8 | ||||||
Retained earnings |
1,099.6 | 1,076.1 | ||||||
Accumulated other comprehensive (loss) earnings |
(111.3 | ) | (102.3 | ) | ||||
Treasury stock |
(391.4 | ) | (402.8 | ) | ||||
Total FIS stockholders equity |
3,560.5 | 3,532.8 | ||||||
Noncontrolling interest |
163.4 | 164.2 | ||||||
Total stockholders equity |
3,723.9 | 3,697.0 | ||||||
Total liabilities and stockholders equity |
$ | 7,392.0 | $ | 7,514.0 | ||||
3
Three months ended March 31, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities: |
||||||||
Net earnings |
$ | 33.0 | $ | 70.5 | ||||
Adjustment to reconcile net earnings to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
92.0 | 124.1 | ||||||
Amortization of debt issue costs |
0.9 | 1.4 | ||||||
Net gain on sale of non-strategic businesses |
| (4.0 | ) | |||||
Stock-based compensation cost |
9.5 | 26.4 | ||||||
Deferred income taxes |
1.3 | 6.8 | ||||||
Income tax benefit from exercise of stock options |
(0.1 | ) | (0.4 | ) | ||||
Equity in loss of unconsolidated entities |
| 2.0 | ||||||
Noncontrolling interest |
(0.3 | ) | 0.1 | |||||
Changes in assets and liabilities, net of effects from acquisitions: |
||||||||
Net decrease (increase) in trade receivables |
68.9 | (8.1 | ) | |||||
Net decrease (increase) in prepaid expenses and other assets |
19.1 | (12.0 | ) | |||||
Additions to deferred contract costs |
(10.9 | ) | (22.0 | ) | ||||
Net increase in deferred revenue |
16.0 | 4.6 | ||||||
Net decrease in accounts payable, accrued liabilities and other liabilities |
(66.5 | ) | (21.2 | ) | ||||
Net cash provided by operating activities |
162.9 | 168.2 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property and equipment |
(15.0 | ) | (24.3 | ) | ||||
Additions to capitalized software |
(30.3 | ) | (65.3 | ) | ||||
Net proceeds from sale of company assets |
| 6.0 | ||||||
Acquisitions, net of cash acquired |
(3.0 | ) | (1.9 | ) | ||||
Net cash used in investing activities |
(48.3 | ) | (85.5 | ) | ||||
Cash flows from financing activities: |
||||||||
Borrowings |
541.7 | 1,283.6 | ||||||
Debt service payments |
(595.9 | ) | (1,381.4 | ) | ||||
Dividends paid |
(9.5 | ) | (9.7 | ) | ||||
Income tax benefit from exercise of stock options |
0.1 | 0.4 | ||||||
Stock options exercised |
3.7 | 6.0 | ||||||
Treasury stock purchases |
| (9.9 | ) | |||||
Net cash used in financing activities |
(59.9 | ) | (111.0 | ) | ||||
Effect of foreign currency exchange rates on cash |
(3.6 | ) | 1.0 | |||||
Net increase (decrease) in cash and cash equivalents |
51.1 | (27.3 | ) | |||||
Cash and cash equivalents, at beginning of period |
220.9 | 355.3 | ||||||
Cash and cash equivalents, at end of period |
$ | 272.0 | $ | 328.0 | ||||
4
Three Months Ended March 31, 2009 | ||||||||||||||||||||
Financial | Payment | Corporate | ||||||||||||||||||
Solutions | Solutions | International | and Other | Consolidated | ||||||||||||||||
Revenue from Continuing Operations |
$ | 271.3 | $ | 364.7 | $ | 162.3 | $ | (0.5 | ) | $ | 797.8 | |||||||||
Operating Income |
$ | 73.6 | $ | 84.1 | $ | 10.2 | $ | (86.0 | ) | $ | 81.9 | |||||||||
M&A, Restructuring and Integration Costs |
| | | 7.3 | 7.3 | |||||||||||||||
EBIT, as adjusted |
$ | 73.6 | $ | 84.1 | $ | 10.2 | $ | (78.7 | ) | $ | 89.2 | |||||||||
Depreciation and Amortization from Continuing
Operations, as adjusted |
28.4 | 11.1 | 13.2 | 39.3 | 92.0 | |||||||||||||||
EBITDA, as adjusted |
$ | 102.0 | $ | 95.2 | $ | 23.4 | $ | (39.4 | ) | $ | 181.2 | |||||||||
EBIT Margin, as adjusted |
27.1 | % | 23.1 | % | 6.3 | % | nm | % | 11.2 | % | ||||||||||
EBITDA Margin, as adjusted |
37.6 | % | 26.1 | % | 14.4 | % | nm | % | 22.7 | % | ||||||||||
Three Months Ended March 31, 2008 | ||||||||||||||||||||
Financial | Payment | Corporate | ||||||||||||||||||
Solutions | Solutions | International | and Other | Consolidated | ||||||||||||||||
Revenue from Continuing Operations |
$ | 280.4 | $ | 373.3 | $ | 176.9 | $ | (0.3 | ) | $ | 830.3 | |||||||||
Operating Income |
$ | 69.5 | $ | 70.9 | $ | 12.2 | $ | (101.4 | ) | $ | 51.2 | |||||||||
M&A, Restructuring and Integration Costs |
| | | 15.0 | 15.0 | |||||||||||||||
Corporate Costs Non Disc. Ops |
| | | 9.0 | 9.0 | |||||||||||||||
LPS Spin-off Costs |
| | | 2.9 | 2.9 | |||||||||||||||
EBIT, as adjusted |
$ | 69.5 | $ | 70.9 | $ | 12.2 | $ | (74.5 | ) | $ | 78.1 | |||||||||
Depreciation and Amortization from Continuing
Operations, as adjusted |
35.6 | 14.5 | 13.4 | 38.4 | 101.9 | |||||||||||||||
EBITDA, as adjusted |
$ | 105.1 | $ | 85.4 | $ | 25.6 | $ | (36.1 | ) | $ | 180.0 | |||||||||
EBIT Margin, as adjusted |
24.8 | % | 19.0 | % | 6.9 | % | nm | % | 9.4 | % | ||||||||||
EBITDA Margin, as adjusted |
37.5 | % | 22.9 | % | 14.5 | % | nm | % | 21.7 | % | ||||||||||
Total Revenue Growth from Prior Year Period |
||||||||||||||||||||
Three Months Ended March 31, 2009 |
-3.2 | % | -2.3 | % | -8.3 | % | nm | % | -3.9 | % | ||||||||||
Three Months Ended March 31, 2008 |
20.0 | % | 27.0 | % | 28.0 | % | nm | % | 24.9 | % | ||||||||||
5
Quarter Ended March 31, 2009 | ||||||||||||
GAAP | Adj | Adjusted | ||||||||||
Cash flows from operating activities: |
||||||||||||
Net earnings (2) |
$ | 33.0 | $ | 4.8 | $ | 37.8 | ||||||
Adjustments to reconcile net earnings
to net cash provided by operating activities: |
||||||||||||
Non-cash adjustments |
103.2 | | 103.2 | |||||||||
Working capital adjustments (3) |
26.7 | (3.2 | ) | 23.5 | ||||||||
Net cash provided by operating activities |
162.9 | 1.6 | 164.5 | |||||||||
Capital expenditures |
(45.3 | ) | | (45.3 | ) | |||||||
Net free cash flow |
$ | 117.6 | $ | 1.6 | $ | 119.2 | ||||||
Quarter Ended March 31, 2008 | ||||||||||||
Pro forma (1) | Adj | Adj Pro forma | ||||||||||
Cash flows from operating activities: |
||||||||||||
Net earnings (4) |
$ | 15.4 | $ | 8.3 | $ | 23.7 | ||||||
Adjustments to reconcile net earnings
to net cash provided by operating activities: |
||||||||||||
Non-cash adjustments |
114.0 | | 114.0 | |||||||||
Working capital adjustments (3) |
(100.8 | ) | 46.3 | (54.5 | ) | |||||||
Net cash provided by operating activities |
28.6 | 54.6 | 83.2 | |||||||||
Capital expenditures |
(78.3 | ) | | (78.3 | ) | |||||||
Net free cash flow |
$ | (49.7 | ) | $ | 54.6 | $ | 4.9 | |||||
(1) | Pro forma cash flows are presented as if the LPS spin-off was completed on January 1, 2008 and represents FIS on a post-spin basis. | |
(2) | Adjustments to Net Earnings reflect the elimination of the after-tax impact of non-recurring M&A and related integration costs. | |
(3) | Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities and for the 2009 period, the elimination of current accruals related to the announced acquisition of Metavante. | |
(4) | Adjustments to Net Earnings reflect the elimination of the after-tax impact of non-recurring M&A and related integration costs, costs associated with the LPS spin-off, restructuring costs and the elimination of corporate costs attributable to LPS. |
6
GAAP | M&A | Non-GAAP | ||||||||||||||||||
Three Months | Restructuring | Three Months | ||||||||||||||||||
Ended | And | Purchase | Ended | |||||||||||||||||
March 31, 2009 | Integration | Price | March 31, 2009 | |||||||||||||||||
(Unaudited) | Costs (1) | Subtotal | Amortization (4) | (Unaudited) | ||||||||||||||||
Processing and services revenue |
$ | 797.8 | $ | | $ | 797.8 | $ | | $ | 797.8 | ||||||||||
Cost of revenues |
594.3 | | 594.3 | (30.1 | ) | 564.2 | ||||||||||||||
Gross profit |
203.5 | | 203.5 | 30.1 | 233.6 | |||||||||||||||
Selling, general and administrative |
99.0 | (7.3 | ) | 91.7 | | 91.7 | ||||||||||||||
Research and development costs |
22.6 | | 22.6 | | 22.6 | |||||||||||||||
Operating income |
81.9 | 7.3 | 89.2 | 30.1 | 119.3 | |||||||||||||||
Other income (expense): |
||||||||||||||||||||
Interest income |
0.8 | | 0.8 | | 0.8 | |||||||||||||||
Interest expense |
(32.0 | ) | | (32.0 | ) | | (32.0 | ) | ||||||||||||
Other income, net |
1.2 | | 1.2 | | 1.2 | |||||||||||||||
Total other income (expense) |
(30.0 | ) | | (30.0 | ) | | (30.0 | ) | ||||||||||||
Earnings from continuing operations before income taxes, |
51.9 | 7.3 | 59.2 | 30.1 | 89.3 | |||||||||||||||
Provision (benefit) for income taxes |
17.9 | 2.5 | 20.4 | 10.4 | 30.8 | |||||||||||||||
Earnings from continuing operations |
34.0 | 4.8 | 38.8 | 19.7 | 58.5 | |||||||||||||||
Loss from discontinued operations |
(1.3 | ) | | (1.3 | ) | | (1.3 | ) | ||||||||||||
Net earnings |
32.7 | 4.8 | 37.5 | 19.7 | 57.2 | |||||||||||||||
Noncontrolling interest |
0.3 | | 0.3 | | 0.3 | |||||||||||||||
Net earnings attributable to FIS |
$ | 33.0 | $ | 4.8 | $ | 37.8 | $ | 19.7 | $ | 57.5 | ||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||
Net earnings from continuing operations, net of tax |
$ | 34.3 | $ | 4.8 | $ | 39.1 | $ | 19.7 | $ | 58.8 | ||||||||||
(Loss) earnings from discontinued operations, net of tax |
(1.3 | ) | | (1.3 | ) | | (1.3 | ) | ||||||||||||
Net earnings |
$ | 33.0 | $ | 4.8 | $ | 37.8 | $ | 19.7 | $ | 57.5 | ||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.18 | $ | 0.03 | $ | 0.20 | $ | 0.10 | $ | 0.31 | ||||||||||
Weighted average shares outstanding diluted |
191.6 | 191.6 | 191.6 | 191.6 | 191.6 | |||||||||||||||
Supplemental Information: |
||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 92.0 | $ | (30.1 | ) | $ | 61.9 | |||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 9.5 | ||||||||||||||||||
Stock acceleration charges |
| |||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 9.5 | ||||||||||||||||||
* | Amounts may not sum due to rounding. |
7
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 (4) | (Unaudited) | ||||||||||||||||||||||
Processing and services revenue |
$ | 830.3 | $ | | $ | | $ | | $ | 830.3 | $ | | $ | 830.3 | ||||||||||||||
Cost of revenues |
648.7 | | | | 648.7 | (36.5 | ) | 612.2 | ||||||||||||||||||||
Gross profit |
181.6 | | | | 181.6 | 36.5 | 218.1 | |||||||||||||||||||||
Selling, general and administrative |
111.1 | (15.0 | ) | (9.0 | ) | (2.9 | ) | 84.2 | | 84.2 | ||||||||||||||||||
Research and development costs |
19.3 | | | | 19.3 | | 19.3 | |||||||||||||||||||||
Operating income |
51.2 | 15.0 | 9.0 | 2.9 | 78.1 | 36.5 | 114.6 | |||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||
Interest income |
2.8 | | | | 2.8 | | 2.8 | |||||||||||||||||||||
Interest expense |
(38.8 | ) | | | | (38.8 | ) | | (38.8 | ) | ||||||||||||||||||
Other income, net |
(1.2 | ) | | | | (1.2 | ) | | (1.2 | ) | ||||||||||||||||||
Total other income (expense) |
(37.2 | ) | | | | (37.2 | ) | | (37.2 | ) | ||||||||||||||||||
Earnings before income taxes |
14.0 | 15.0 | 9.0 | 2.9 | 40.9 | 36.5 | 77.4 | |||||||||||||||||||||
Provision (benefit) for income taxes |
3.3 | 5.5 | 2.8 | 1.1 | 12.7 | 12.9 | 25.6 | |||||||||||||||||||||
Earnings from continuing operations |
10.7 | 9.5 | 6.2 | 1.8 | 28.2 | 23.6 | 51.8 | |||||||||||||||||||||
Earnings from discontinued operations |
59.6 | | | | 59.6 | | 59.6 | |||||||||||||||||||||
Net earnings |
70.3 | 9.5 | 6.2 | 1.8 | 87.8 | 23.6 | 111.4 | |||||||||||||||||||||
Noncontrolling interest |
0.2 | | | | 0.2 | | 0.2 | |||||||||||||||||||||
Net earnings attributable to FIS |
$ | 70.5 | $ | 9.5 | $ | 6.2 | $ | 1.8 | $ | 88.0 | $ | 23.6 | $ | 111.6 | ||||||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||||||||||
Net earnings from continuing operations, net of tax |
$ | 10.9 | $ | 9.5 | $ | 6.2 | $ | 1.8 | $ | 28.4 | $ | 23.6 | $ | 52.0 | ||||||||||||||
(Loss) earnings from discontinued operations, net of tax |
59.6 | | | | 59.6 | | 59.6 | |||||||||||||||||||||
Net earnings |
$ | 70.5 | $ | 9.5 | $ | 6.2 | $ | 1.8 | $ | 88.0 | $ | 23.6 | $ | 111.6 | ||||||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.06 | $ | 0.05 | $ | 0.03 | $ | 0.01 | $ | 0.14 | $ | 0.12 | $ | 0.26 | ||||||||||||||
Weighted average shares outstanding diluted |
196.5 | 196.5 | 196.5 | 196.5 | 196.5 | 196.5 | 196.5 | |||||||||||||||||||||
Supplemental Information: |
||||||||||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 101.9 | $ | (36.5 | ) | $ | 65.4 | |||||||||||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 7.8 | ||||||||||||||||||||||||||
Stock acceleration charges |
14.2 | |||||||||||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 22.0 | ||||||||||||||||||||||||||
* | Amounts may not sum due to rounding. |
8
(1) | This column represents charges for restructuring and integration costs relating to merger and acquisition activities. For the period ended March 31, 2009, the amounts represent incremental transaction costs incurred by the Company related to the previously announced acquisition of Metavante Technologies, Inc. | |
(2) | This column represents corporate costs attributable to LPS as previously reported in our investor package furnished on form 8-K on May 28, 2008. These amounts are not allocable to discontinued operations under U.S. Generally Accepted Accounting Principles. | |
(3) | This column represents incremental transaction costs incurred by the Company directly related to the LPS spin-off. | |
(4) | This column represents purchase price amortization expense on intangibles assets acquired through various Company acquisitions. |
9
Fidelity National Information Services First Quarter 2009 Earnings Call Supplemental Materials April 28, 2009 |
Forward Looking Statements 2 This presentation contains forward-looking statements, including certain plans, expectations, goals and projections, and statements about FIS's acquisition of Metavante, which are subject to numerous assumptions, risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. The risks and uncertainties that forward-looking statements are subject to include, without limitation: changes in general economic, business and political conditions, including changes in the financial markets; the effect of governmental regulations, including the possibility that there are unexpected delays in obtaining regulatory approvals; the failure to obtain required transaction approvals from FIS's and Metavante's shareholders; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in the banking, retail and financial services industries or due to financial failures suffered by firms in those industries; actions that may be taken by the competitors, customers and suppliers of FIS or Metavante that may cause the transaction to be delayed or not completed; failures to adapt our services to changes in technology or in the marketplace; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions; competitive pressures on product pricing and services; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available at the time of the document. FIS assumes any obligation to update any forward-looking statement. |
Use of Non-GAAP Measures 3 Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the company has provided non-GAAP financial measures which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non- GAAP measures include earnings before interest, taxes and amortization (EBITDA), adjusted net earnings, and free cash flow. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges, acquisition related amortization and certain other costs. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FIS's non-GAAP measures may be calculated differently from similarly-titled measures of other companies. A reconciliation of these non-GAAP measures to related GAAP measures is included in the press release attachments. |
FIS First Quarter 2009 Earnings Conference Call Agenda 1st Quarter 2009 Results Summary and Business Overview Financial Review Q&A 4 |
Consolidated Results ($ millions) 5 Adjusted EPS Free Cash Flow Adjusted EPS increased 19.2% Constant currency EPS increased 23.1% Strong free cash flow: $119 million |
6 Revenue Adjusted EBITDA Constant currency revenue increased 0.3% - - 1.6% increase excluding retail check - - International constant currency revenue increased 11.5% Reported revenue decreased 3.9% Adjusted EBITDA increased 0.7% EBITDA margin expanded 100 bps to 22.7% - - Increased operating leverage - - Ongoing expense management Consolidated Results ($ millions) Note: Calculations may differ due to rounding. |
Financial Review 7 |
Consolidated Results Summary ($ millions) 8 Note: Calculations may differ due to rounding. |
Segment Contribution First Quarter 9 (1) Excludes corporate and other EBITDA of ($36M) in 2008 and ($39M) in 2009 reported and constant currency. 2009 - Reported(1) 2009 - Constant(1) 2008(1) $830M Total $798M Total $35M negative currency impact $216M Total $221M Total $5M negative currency impact |
Financial Solutions ($ millions) 10 Revenue Segment EBITDA Financial Solutions revenue decreased 3.2% - - Increased demand for risk management and technology services - - Lower discretionary software and professional services revenue EBITDA decreased 2.9% - - Decline in high margin software sales mitigated by strong cost controls EBITDA margin increased 10 bps to 37.6% Note: Calculations may differ due to rounding. |
Payment Solutions ($ millions) 11 Revenue Payment Solutions revenue decreased 2.3% - - Overall card transactions increased 4% Debit increased 4.5% Credit decreased 5.4% - - Retail Check Services declined 15% ($10 million) EBITDA increased 11.5% EBITDA margin expanded by 320 bps to 26.1% - - Improved operating efficiency Segment EBITDA Note: Calculations may differ due to rounding. |
Retail Check Services ($ millions) 12 Note: Calculations may differ due to rounding. |
International ($ millions) 13 Revenue Constant currency revenue increased 11.5% - - 16.3% growth in payments - - 4.5% growth in financial solutions International revenue decreased 8.3% - - $35 million unfavorable currency impact EBITDA decreased 8.6% - - $5.2 million unfavorable currency impact - - Constant currency EBITDA increased 11.7% EBITDA margin declined by 10 bps - - Currency adjusted margins comparable to previous year Segment EBITDA Note: Calculations may differ due to rounding. |
International Revenue ($ millions) FIS Q109 Revenue Composition by Major Currency 14 (1)International revenue increased 11.5% compared to Q108 assuming no change in currency. (2)International revenue decreased 8.3% compared to Q408 assuming no change in currency. Note: Calculations may differ due to rounding. |
Results Summary ($ millions) 15 (1) Includes unfavorable currency impact of $0.01 in Q1 2009. Adjusted EPS increased 23.1% excluding currency. Note: Calculations may differ due to rounding. |
16 Cash Flows ($ millions) Cash Flow Trend Comparative Cash Flow Note: Calculations may differ due to rounding. |
17 Total Debt ($ millions) Note: Calculations may differ due to rounding. |