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):
July 23, 2015
Fidelity National Information Services, Inc.
(Exact name of Registrant as Specified in its Charter)
1-16427
(Commission File Number)
Georgia | 37-1490331 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) | |
601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)
(904) 438-6000
(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)) | |
Item 2.02. Results of Operations and Financial Condition
On July 23, 2015, Fidelity National Information Services, Inc. issued a press release announcing financial results for the quarter ended June 30, 2015. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.
The information included in this Item 2.02, including the accompanying exhibit, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit | Description | |
99.1 | Press release of Fidelity National Information Services, Inc. dated July 23, 2015 regarding second quarter 2015 financial results. | |
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 23, 2015 | By: | /s/ James W. Woodall | ||
Name: | James W. Woodall | |||
Title: | Corporate Executive Vice President and Chief Financial Officer | |||
Fidelity National Information Services, Inc. | ||||
Date: July 23, 2015 | By: | /s/ Michael A. Nussbaum | ||
Name: | Michael A. Nussbaum | |||
Title: | Chief Accounting Officer | |||
EXHIBIT INDEX
Exhibit | Description | |
99.1 | Press release of Fidelity National Information Services, Inc. dated July 23, 2015 regarding second quarter 2015 financial results. | |
Exhibit 99.1
News Release
FIS Reports Second Quarter 2015 Results
• | Revenue of $1.6 billion |
• | EPS from continuing operations of $0.85, or $0.74 on an adjusted basis |
• | $224 million returned to shareholders in dividends and share repurchases |
JACKSONVILLE, Fla., July 23, 2015 - FIS™ (NYSE:FIS), a global leader in banking and payments technology as well as consulting and outsourcing solutions, today reported that second quarter revenue was $1.6 billion, down one percent on a reported basis from the prior year quarter and up three percent on a constant currency basis. GAAP net earnings from continuing operations attributable to common stockholders was $242 million, or $0.85 per diluted share, compared to $180 million, or $0.62 per diluted share in the prior year quarter.
Non-GAAP adjusted net earnings from continuing operations attributable to common stockholders was $211 million for the quarter, or $0.74 per share. Second quarter 2015 non-GAAP adjusted net earnings from continuing operations excludes acquisition-related purchase price amortization of $0.12 per share, costs pertaining to acquisition, integration and severance of $0.03 per share and a divestiture gain of $0.25 per share. Adjusted EBITDA decreased to $453 million in the second quarter 2015, down three percent from $466 million in the prior year quarter, while adjusted EBITDA margin was 28.5 percent compared to 29.2 percent in the prior year quarter.
“We continue to invest for growth in order to consistently deliver shareholder returns and generate significant recurring revenue. We are pleased with our recent restructuring and re-segmentation of our business which has allowed us to align our service and solution portfolio to address clients’ unique business challenges,” stated Gary Norcross, president and chief executive officer of FIS.
For the six months ended June 30, 2015, GAAP revenue increased to $3.14 billion from $3.12 billion in the prior year period. GAAP net earnings from continuing operations attributable to common stockholders increased to $356 million, or $1.25 per diluted share, from $336 million, or $1.16 per diluted share, in the prior year period. Adjusted net earnings attributable to common stockholders decreased to $1.39 per diluted share from $1.43 per diluted share in the prior year period.
Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
Segment Information
The following is a review of second quarter 2015 results by segment:
• | Integrated Financial Solutions: |
Revenue on a reported basis was flat compared to prior year period at $969 million. Adjusted EBITDA decreased to $378 million from $380 million in the second quarter 2014, while adjusted EBITDA margin was 39.0 percent compared to 39.2 percent in the prior year period, primarily reflecting continued lower termination fees.
• | Global Financial Solutions: |
On a reported basis, revenue decreased two percent to $619 million from $631 million in the second quarter 2014. Revenue increased eight percent on a constant currency basis. Adjusted EBITDA decreased three percent to $123 million from $126 million in the second quarter of 2014, while adjusted EBITDA margin decreased 20 basis points to 19.8 percent.
• | Corporate/Other: |
GAAP corporate costs totaled $115 million in the second quarter 2015 compared to $102 million in the prior year quarter. Corporate costs, as adjusted, totaled $48 million in the second quarter 2015 compared to $39 million in the prior year quarter. Interest expense, net of interest income, decreased to $36 million from $42 million in the second quarter 2014, reflecting lower costs resulting from previous debt refinancing activities. The effective GAAP tax rate was 39 percent, or 33 percent on an adjusted basis.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $446 million as of June 30, 2015, while debt outstanding totaled $5.0 billion.
Net cash provided by operations year-to-date was $443 million and adjusted cash flow from operations was $518 million. Year-to-date capital expenditures totaled $219 million, resulting in free cash flow of $299 million for the first six months of 2015.
FIS repurchased 2.3 million common shares at a total cost of approximately $150 million in the second quarter 2015. Approximately $1.2 billion remained under the existing share repurchase authorization as of June 30, 2015. The Company paid shareholder dividends of $74 million in the second quarter of 2015.
2015 Outlook
FIS’ full year 2015 guidance is as follows:
• | Reported revenue growth of 1 to 3 percent |
• | Adjusted EPS from continuing operations of $3.27 to $3.37, an increase of 6 to 9 percent compared to 2014 |
• | Free cash flow is expected to approximate adjusted net earnings |
Webcast
FIS will host a webcast on July 23, 2015, to discuss second quarter 2015 results beginning at 8:30 a.m. ET. To listen to the live event and to access a supplemental slide presentation, go to the Investor Relations section at www.fisglobal.com and click on “News and Events.” A webcast replay will be available on FIS’ Investor Relations Web site, and a telephone replay will be available through August 6, 2015 by dialing 800.475.6701 (U.S.) or 320.365.3844 (International). The access code is 363923. To access a .PDF version of this release and accompanying financial tables, go to www.investor.fisglobal.com.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. For these reasons, management also uses these measures in part to assess its performance.
These non-GAAP measures include constant currency revenue, adjusted revenue, EBITDA, adjusted EBITDA and adjusted EBITDA margin, adjusted net earnings from continuing operations (including per share amounts), adjusted cash flow from operations and free cash flow.
Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current year. Growth in revenue presented for 2015 year to date on a constant currency basis reflects a comparison of constant currency revenue for 2015 against 2014 adjusted revenue.
Adjusted revenue (2014) includes reported revenue and is increased by $9 million for a negotiated contract cash settlement for the extinguishment of certain contractual minimums with a reseller. Although the 2014 cash settlement has no contractual performance obligation, under GAAP the cash settlement revenue is amortized in this circumstance over the remaining relationship with the reseller.
EBITDA is earnings from continuing operations before interest, taxes, depreciation and amortization.
Adjusted EBITDA excludes certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results across reporting periods.
Adjusted net earnings from continuing operations excludes the after tax impact of certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the after tax impact of acquisition related amortization which is recurring.
Adjusted net earnings per diluted share, or adjusted EPS, is equal to adjusted net earnings divided by weighted average diluted shares outstanding.
Adjusted cash flow from operations is GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations, and excludes certain transactions that are closely associated with non-operating activities or are otherwise non-recurring or unusual in nature and not indicative of future operating cash flows.
Free cash flow is adjusted operating cash flow less capital expenditures. Free cash flow does not represent our residual cash flow available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure.
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 measures. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures, including footnotes describing the specific adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
About FIS
FIS is a global leader in banking and payments technology as well as consulting and outsourcing solutions. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs approximately 42,000 people worldwide and holds leadership positions in payment processing and banking solutions. Providing software, services and outsourcing of the technology that drives financial institutions, FIS is 426 on the Fortune 500 and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.
Follow us on Facebook (facebook.com/FIStoday) and Twitter (@FISGlobal).
Forward-Looking Statements
This news release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings guidance of the Company, business and market conditions, outlook, foreign currency exchange rates, expected dividends and share repurchases, the Company’s sales pipeline and anticipated profitability and growth, and the anticipated costs and benefits resulting from the realignment of the Company’s organizational structure and its change in reportable segments, as well as other statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.
Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include, without limitation:
• | changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in either or both the United States and international lending, capital and financial markets, and changes in foreign exchange rates; |
• | the effect of legislative initiatives or proposals, statutory changes, changes in governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations; |
• | the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; |
• | changes in the growth rates of the markets for our solutions; |
• | failures to adapt our solutions to changes in technology or in the marketplace; |
• | internal or external security breaches of our systems, including those relating to the theft of personal information and computer viruses affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events; |
• | the reaction of our current and potential customers to communications from us or our regulators regarding information security, risk management, internal audit or other matters; |
• | competitive pressures on pricing related to our solutions including the ability to attract new, or retain existing, customers; |
• | an operational or natural disaster at one of our major operations centers; |
• | and other risks detailed in “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and other filings with the SEC. |
Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.
For More Information:
Ellyn Raftery, 904.438.6083 | Peter Gunnlaugsson, 904.438.6603 | |
Chief Marketing Officer | Senior Vice President | |
FIS Global Marketing and Communications | FIS Corporate Finance and Investor Relations | |
ellyn.raftery@fisglobal.com | pete.gunnlaugsson@fisglobal.com | |
Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
July 23, 2015
Exhibit A | Consolidated Statements of Earnings - Unaudited for the three and six months ended June 30, 2015 and 2014 |
Exhibit B | Consolidated Balance Sheets - Unaudited as of June 30, 2015 and December 31, 2014 |
Exhibit C | Consolidated Statements of Cash Flows - Unaudited for the six months ended June 30, 2015 and 2014 |
Exhibit D | Supplemental Non-GAAP Financial Information - Unaudited for the three and six months ended June 30, 2015 and 2014 |
Exhibit E | Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the three and six months ended June 30, 2015 and 2014 |
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
Exhibit A | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Processing and services revenues | $ | 1,586.8 | $ | 1,599.1 | $ | 3,141.6 | $ | 3,119.4 | |||||||
Cost of revenues | 1,069.0 | 1,092.5 | 2,139.3 | 2,136.9 | |||||||||||
Gross profit | 517.8 | 506.6 | 1,002.3 | 982.5 | |||||||||||
Selling, general and administrative expenses | 230.8 | 196.9 | 500.2 | 386.7 | |||||||||||
Operating income | 287.0 | 309.7 | 502.1 | 595.8 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (35.8 | ) | (41.9 | ) | (73.2 | ) | (83.0 | ) | |||||||
Other income (expense), net | 152.1 | (1.2 | ) | 150.7 | (1.7 | ) | |||||||||
Total other income (expense), net | 116.3 | (43.1 | ) | 77.5 | (84.7 | ) | |||||||||
Earnings from continuing operations before income taxes | 403.3 | 266.6 | 579.6 | 511.1 | |||||||||||
Provision for income taxes | 156.4 | 80.4 | 214.2 | 161.6 | |||||||||||
Earnings from continuing operations, net of tax | 246.9 | 186.2 | 365.4 | 349.5 | |||||||||||
Earnings (loss) from discontinued operations, net of tax | (2.2 | ) | (0.9 | ) | (5.3 | ) | (3.1 | ) | |||||||
Net earnings | 244.7 | 185.3 | 360.1 | 346.4 | |||||||||||
Net earnings attributable to noncontrolling interest | (4.5 | ) | (6.5 | ) | (9.0 | ) | (13.1 | ) | |||||||
Net earnings attributable to FIS common stockholders | $ | 240.2 | $ | 178.8 | $ | 351.1 | $ | 333.3 | |||||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders | $ | 0.86 | $ | 0.63 | $ | 1.26 | $ | 1.17 | |||||||
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders | (0.01 | ) | — | (0.02 | ) | (0.01 | ) | ||||||||
Net earnings per share-basic attributable to FIS common stockholders * | $ | 0.85 | $ | 0.63 | $ | 1.25 | $ | 1.16 | |||||||
Weighted average shares outstanding-basic | 281.0 | 285.5 | 282.0 | 286.7 | |||||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders | $ | 0.85 | $ | 0.62 | $ | 1.25 | $ | 1.16 | |||||||
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders | (0.01 | ) | — | (0.02 | ) | (0.01 | ) | ||||||||
Net earnings per share-diluted attributable to FIS common stockholders * | $ | 0.84 | $ | 0.62 | $ | 1.23 | $ | 1.15 | |||||||
Weighted average shares outstanding-diluted | 284.4 | 289.2 | 285.6 | 290.5 | |||||||||||
Amounts attributable to FIS common stockholders: | |||||||||||||||
Earnings from continuing operations, net of tax | $ | 242.4 | $ | 179.7 | $ | 356.4 | $ | 336.4 | |||||||
Earnings (loss) from discontinued operations, net of tax | (2.2 | ) | (0.9 | ) | (5.3 | ) | (3.1 | ) | |||||||
Net earnings attributable to FIS common stockholders | $ | 240.2 | $ | 178.8 | $ | 351.1 | $ | 333.3 | |||||||
* Amounts may not sum due to rounding.
1
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions, except per share data)
Exhibit B | |||||||
As of | As of | ||||||
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 446.4 | $ | 492.8 | |||
Settlement deposits | 239.2 | 393.9 | |||||
Trade receivables, net | 1,127.3 | 1,126.4 | |||||
Settlement receivables | 330.3 | 153.7 | |||||
Other receivables | 30.3 | 31.5 | |||||
Due from Brazilian venture partner | 34.9 | 33.6 | |||||
Prepaid expenses and other current assets | 204.0 | 167.0 | |||||
Deferred income taxes | 70.2 | 67.4 | |||||
Assets held for sale | — | 6.8 | |||||
Total current assets | 2,482.6 | 2,473.1 | |||||
Property and equipment, net | 495.0 | 483.3 | |||||
Goodwill | 8,751.8 | 8,877.6 | |||||
Intangible assets, net | 1,123.3 | 1,268.0 | |||||
Computer software, net | 905.6 | 893.4 | |||||
Deferred contract costs, net | 232.3 | 213.2 | |||||
Other noncurrent assets | 312.9 | 311.9 | |||||
Total assets | $ | 14,303.5 | $ | 14,520.5 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 794.6 | $ | 730.3 | |||
Settlement payables | 539.3 | 558.4 | |||||
Deferred revenues | 318.9 | 279.4 | |||||
Current portion of long-term debt | 13.5 | 13.1 | |||||
Due to Brazilian venture partner | 11.0 | 13.3 | |||||
Liabilities held for sale | — | 4.4 | |||||
Total current liabilities | 1,677.3 | 1,598.9 | |||||
Long-term debt, excluding current portion | 5,029.8 | 5,054.6 | |||||
Deferred income taxes | 837.7 | 874.4 | |||||
Due to Brazilian venture partner | 26.3 | 29.6 | |||||
Deferred revenues | 28.1 | 26.1 | |||||
Other long-term liabilities | 173.0 | 245.4 | |||||
Total liabilities | 7,772.2 | 7,829.0 | |||||
Equity: | |||||||
FIS stockholders’ equity: | |||||||
Preferred stock $0.01 par value | — | — | |||||
Common stock $0.01 par value | 3.9 | 3.9 | |||||
Additional paid in capital | 7,386.0 | 7,336.8 | |||||
Retained earnings | 2,950.9 | 2,746.8 | |||||
Accumulated other comprehensive earnings (loss) | (198.1 | ) | (107.2 | ) | |||
Treasury stock $0.01 par value | (3,702.2 | ) | (3,423.6 | ) | |||
Total FIS stockholders’ equity | 6,440.5 | 6,556.7 | |||||
Noncontrolling interest | 90.8 | 134.8 | |||||
Total equity | 6,531.3 | 6,691.5 | |||||
Total liabilities and equity | $ | 14,303.5 | $ | 14,520.5 | |||
2
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
Exhibit C | |||||||
Six months ended June 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 360.1 | $ | 346.4 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 307.9 | 309.1 | |||||
Amortization of debt issue costs | 4.4 | 6.7 | |||||
Gain on sale of assets | (150.4 | ) | — | ||||
Stock-based compensation | 35.8 | 26.6 | |||||
Deferred income taxes | (37.5 | ) | (19.0 | ) | |||
Excess income tax benefit from exercise of stock options | (12.3 | ) | (10.1 | ) | |||
Other operating activities, net | 1.6 | (1.9 | ) | ||||
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency: | |||||||
Trade receivables | (26.0 | ) | (22.4 | ) | |||
Settlement activity | (29.5 | ) | 15.8 | ||||
Prepaid expenses and other assets | (33.7 | ) | (35.7 | ) | |||
Deferred contract costs | (55.4 | ) | (40.4 | ) | |||
Deferred revenue | 39.7 | 30.9 | |||||
Accounts payable, accrued liabilities and other liabilities | 37.8 | (126.9 | ) | ||||
Net cash provided by operating activities | 442.5 | 479.1 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (80.7 | ) | (77.3 | ) | |||
Additions to computer software | (137.9 | ) | (109.3 | ) | |||
Proceeds from sale of assets | 240.7 | — | |||||
Acquisitions, net of cash acquired and equity investments | — | (29.0 | ) | ||||
Other investing activities, net | 1.0 | 9.3 | |||||
Net cash provided by (used in) investing activities | 23.1 | (206.3 | ) | ||||
Cash flows from financing activities: | |||||||
Borrowings | 3,493.0 | 4,430.1 | |||||
Repayment of borrowings and capital lease obligations | (3,519.8 | ) | (3,976.6 | ) | |||
Debt issuance costs | — | (6.6 | ) | ||||
Excess income tax benefit from exercise of stock options | 12.3 | 10.1 | |||||
Proceeds from exercise of stock options | 27.0 | 15.5 | |||||
Treasury stock activity | (307.3 | ) | (355.6 | ) | |||
Dividends paid | (146.5 | ) | (137.9 | ) | |||
Distribution to Brazilian Venture partner | (23.6 | ) | — | ||||
Other financing activities, net | (18.9 | ) | (18.3 | ) | |||
Net cash (used in) provided by financing activities | (483.8 | ) | (39.3 | ) | |||
Effect of foreign currency exchange rate changes on cash | (28.2 | ) | 12.7 | ||||
Net (decrease) increase in cash and cash equivalents | (46.4 | ) | 246.2 | ||||
Cash and cash equivalents, at beginning of period | 492.8 | 547.5 | |||||
Cash and cash equivalents, at end of period | $ | 446.4 | $ | 793.7 | |||
3
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit D | |||||||||||||||
Three months ended June 30, 2015 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Processing and services revenue | $ | 968.9 | $ | 618.9 | $ | (1.0 | ) | $ | 1,586.8 | ||||||
Operating income (loss) | $ | 321.0 | $ | 81.4 | $ | (115.4 | ) | $ | 287.0 | ||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition, integration and severance costs (1) | — | — | 11.4 | 11.4 | |||||||||||
Purchase price amortization | — | — | 49.7 | 49.7 | |||||||||||
Non-GAAP operating income (loss) | 321.0 | 81.4 | (54.3 | ) | 348.1 | ||||||||||
Depreciation and amortization from continuing operations | 56.9 | 41.1 | 6.8 | 104.8 | |||||||||||
Adjusted EBITDA | $ | 377.9 | $ | 122.5 | $ | (47.5 | ) | $ | 452.9 | ||||||
Non-GAAP operating margin | 33.1 | % | 13.2 | % | N/M | 21.9 | % | ||||||||
Adjusted EBITDA margin | 39.0 | % | 19.8 | % | N/M | 28.5 | % | ||||||||
Three months ended June 30, 2014 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Processing and services revenue | $ | 968.7 | $ | 630.6 | $ | (0.2 | ) | $ | 1,599.1 | ||||||
Operating income (loss) | $ | 325.9 | $ | 86.0 | $ | (102.2 | ) | $ | 309.7 | ||||||
Non-GAAP adjustments: | |||||||||||||||
Purchase price amortization | — | — | 54.0 | 54.0 | |||||||||||
Non-GAAP operating income (loss) | 325.9 | 86.0 | (48.2 | ) | 363.7 | ||||||||||
Depreciation and amortization from continuing operations | 53.6 | 40.1 | 8.8 | 102.5 | |||||||||||
Adjusted EBITDA | $ | 379.5 | $ | 126.1 | $ | (39.4 | ) | $ | 466.2 | ||||||
Non-GAAP operating margin | 33.6 | % | 13.6 | % | N/M | 22.7 | % | ||||||||
Adjusted EBITDA margin | 39.2 | % | 20.0 | % | N/M | 29.2 | % | ||||||||
Total revenue growth from prior year period | |||||||||||||||
Three months ended June 30, 2015 | — | % | (1.9 | )% | N/M | (0.8 | )% | ||||||||
(1)See note (1) to exhibit E.
4
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit D (continued) | |||||||||||||||
Six months ended June 30, 2015 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Processing and services revenue | $ | 1,937.8 | $ | 1,205.8 | $ | (2.0 | ) | $ | 3,141.6 | ||||||
Operating income (loss) | $ | 647.4 | $ | 128.4 | $ | (273.7 | ) | $ | 502.1 | ||||||
Non-GAAP adjustments: | |||||||||||||||
Acquisition, integration and severance costs (1) | — | — | 23.6 | 23.6 | |||||||||||
Global restructure (2) | — | — | 44.6 | 44.6 | |||||||||||
Purchase price amortization | — | — | 100.0 | 100.0 | |||||||||||
Non-GAAP operating income (loss) | 647.4 | 128.4 | (105.5 | ) | 670.3 | ||||||||||
Depreciation and amortization from continuing operations | 109.3 | 84.3 | 14.3 | 207.9 | |||||||||||
Adjusted EBITDA | $ | 756.7 | $ | 212.7 | $ | (91.2 | ) | $ | 878.2 | ||||||
Non-GAAP operating margin | 33.4 | % | 10.6 | % | N/M | 21.3 | % | ||||||||
Adjusted EBITDA margin | 39.0 | % | 17.6 | % | N/M | 28.0 | % | ||||||||
Six months ended June 30, 2014 | |||||||||||||||
Integrated Financial Solutions | Global Financial Solutions | Corporate and Other | Consolidated | ||||||||||||
Processing and services revenue | $ | 1,905.9 | $ | 1,214.1 | $ | (0.6 | ) | $ | 3,119.4 | ||||||
Non-GAAP adjustments: | |||||||||||||||
Contract settlement (3) | 9.0 | — | — | 9.0 | |||||||||||
Adjusted processing and services revenue | $ | 1,914.9 | $ | 1,214.1 | $ | (0.6 | ) | $ | 3,128.4 | ||||||
Operating income (loss) | $ | 645.9 | $ | 153.0 | $ | (203.1 | ) | $ | 595.8 | ||||||
Non-GAAP adjustments: | |||||||||||||||
Contract settlement (3) | 9.0 | — | — | 9.0 | |||||||||||
Purchase price amortization | — | 0.1 | 108.8 | 108.9 | |||||||||||
Non-GAAP operating income (loss) | 654.9 | 153.1 | (94.3 | ) | 713.7 | ||||||||||
Depreciation and amortization from continuing operations | 105.2 | 78.2 | 16.8 | 200.2 | |||||||||||
Adjusted EBITDA | $ | 760.1 | $ | 231.3 | $ | (77.5 | ) | $ | 913.9 | ||||||
Non-GAAP operating margin | 34.2 | % | 12.6 | % | N/M | 22.8 | % | ||||||||
Adjusted EBITDA margin | 39.7 | % | 19.1 | % | N/M | 29.2 | % | ||||||||
Total adjusted revenue growth from prior year period | |||||||||||||||
Six months ended June 30, 2015 | 1.2 | % | (0.7 | )% | N/M | 0.4 | % | ||||||||
(1)See note (1) to exhibit E.
(2)See note (3) to exhibit E.
(3)See note (4) to exhibit E.
5
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CONSTANT CURRENCY REVENUE — UNAUDITED
(In millions)
Exhibit D (continued) | ||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Constant | Constant | |||||||||||||||||
Currency | Currency | |||||||||||||||||
Revenue | FX | Revenue | Revenue | Growth | ||||||||||||||
Integrated Financial Solutions | $ | 968.9 | $ | 0.5 | $ | 969.4 | $ | 968.7 | 0.1 | % | ||||||||
Global Financial Solutions | 618.9 | 62.9 | 681.8 | 630.6 | 8.1 | % | ||||||||||||
Corporate and Other | (1.0 | ) | (0.2 | ) | (1.2 | ) | (0.2 | ) | N/M | |||||||||
Total processing and services revenue | $ | 1,586.8 | $ | 63.2 | $ | 1,650.0 | $ | 1,599.1 | 3.2 | % | ||||||||
Six months ended June 30, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Constant | Constant | |||||||||||||||||
Currency | Currency | |||||||||||||||||
Revenue | FX | Revenue | Revenue (1) | Growth | ||||||||||||||
Integrated Financial Solutions | $ | 1,937.8 | $ | 1.3 | $ | 1,939.1 | $ | 1,914.9 | 1.3 | % | ||||||||
Global Financial Solutions | 1,205.8 | 107.8 | 1,313.6 | 1,214.1 | 8.2 | % | ||||||||||||
Corporate and Other | (2.0 | ) | (0.3 | ) | (2.3 | ) | (0.6 | ) | N/M | |||||||||
Total processing and services revenue | $ | 3,141.6 | $ | 108.8 | $ | 3,250.4 | $ | 3,128.4 | 3.9 | % | ||||||||
(1) | As adjusted. See note (4) to exhibit E. |
6
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED
(In millions)
Exhibit D (continued) | |||||||
Three months ended | Six months ended | ||||||
June 30, 2015 | June 30, 2015 | ||||||
Net cash provided by operating activities | $ | 211.4 | $ | 442.5 | |||
Non-GAAP adjustments: | |||||||
Capco acquisition related payments (1) | 2.1 | 31.4 | |||||
Severance payments (2) | 7.8 | 14.5 | |||||
Settlement activity | (24.8 | ) | 29.5 | ||||
Adjusted cash flows from operations | 196.5 | 517.9 | |||||
Capital expenditures | (117.4 | ) | (218.6 | ) | |||
Free cash flow | $ | 79.1 | $ | 299.3 | |||
Three months ended | Six months ended | ||||||
June 30, 2014 | June 30, 2014 | ||||||
Net cash provided by operating activities | $ | 256.5 | $ | 479.1 | |||
Non-GAAP adjustments: | |||||||
Capco acquisition related payments (1) | 2.1 | 30.1 | |||||
Settlement activity | (13.3 | ) | (15.8 | ) | |||
Adjusted cash flows from operations | 245.3 | 493.4 | |||||
Capital expenditures | (96.7 | ) | (186.6 | ) | |||
Free cash flow | $ | 148.6 | $ | 306.8 | |||
(1) | Adjusted cash flow from operations for the three and six months ended June 30, 2015 and 2014 excludes payments for contingent purchase price and the New Hires and Promotions Incentive Plan associated with the 2010 acquisition of Capco. In accordance with the accounting guidance, contingent purchase price payments are included in other financing activities on the Statement of Cash Flows only to the extent they represent the original liability established at the acquisition date. Payments related to subsequent adjustments to the contingent purchase price are included in the net cash provided by operating activities. |
(2) | Adjusted cash flow from operations for the three months ended June 30, 2015 excludes certain severance payments, net of the related tax impact. Adjusted cash flow from operations for the six months ended June 30, 2015 reflects a change to exclude certain severance payments from the previously reported first quarter presentation. |
7
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net earnings from continuing operations attributable to FIS | $ | 242.4 | $ | 179.7 | $ | 356.4 | $ | 336.4 | ||||||||
Plus provision for income taxes | 156.4 | 80.4 | 214.2 | 161.6 | ||||||||||||
Interest expense, net | 35.8 | 41.9 | 73.2 | 83.0 | ||||||||||||
Other, net | (147.6 | ) | 7.7 | (141.7 | ) | 14.8 | ||||||||||
Operating income | 287.0 | 309.7 | 502.1 | 595.8 | ||||||||||||
Non-GAAP adjustments: | ||||||||||||||||
Acquisition, integration and severance (1) | 11.4 | — | 23.6 | — | ||||||||||||
Global restructure (2) | — | — | 44.6 | — | ||||||||||||
Contract settlement (3) | — | — | — | 9.0 | ||||||||||||
Purchase price amortization | 49.7 | 54.0 | 100.0 | 108.9 | ||||||||||||
Non-GAAP operating income | 348.1 | 363.7 | 670.3 | 713.7 | ||||||||||||
Depreciation and amortization from continuing operations | 104.8 | 102.5 | 207.9 | 200.2 | ||||||||||||
Adjusted EBITDA | $ | 452.9 | $ | 466.2 | $ | 878.2 | $ | 913.9 | ||||||||
(1)See note (1) to exhibit E.
(2)See note (3) to exhibit E.
(3)See note (4) to exhibit E.
8
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E (continued) | ||||||||||||||||||||||||
Three months ended June 30, 2015 | ||||||||||||||||||||||||
Acquisition, | ||||||||||||||||||||||||
Integration, | ||||||||||||||||||||||||
and | Sale of | Purchase | ||||||||||||||||||||||
Severance | Gaming | Price | ||||||||||||||||||||||
GAAP | Costs (1) | Contracts (2) | Subtotal | Amort. (5) | Non-GAAP | |||||||||||||||||||
Processing and services revenue | $ | 1,586.8 | $ | — | $ | — | $ | 1,586.8 | $ | — | $ | 1,586.8 | ||||||||||||
Cost of revenues | 1,069.0 | — | — | 1,069.0 | (49.7 | ) | 1,019.3 | |||||||||||||||||
Gross profit | 517.8 | — | — | 517.8 | 49.7 | 567.5 | ||||||||||||||||||
Selling, general and administrative | 230.8 | (11.4 | ) | — | 219.4 | — | 219.4 | |||||||||||||||||
Operating income | 287.0 | 11.4 | — | 298.4 | 49.7 | 348.1 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income (expense), net | (35.8 | ) | — | — | (35.8 | ) | — | (35.8 | ) | |||||||||||||||
Other income (expense), net | 152.1 | — | (140.4 | ) | 11.7 | — | 11.7 | |||||||||||||||||
Total other income (expense) | 116.3 | — | (140.4 | ) | (24.1 | ) | — | (24.1 | ) | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | 403.3 | 11.4 | (140.4 | ) | 274.3 | 49.7 | 324.0 | |||||||||||||||||
Provision for income taxes | 156.4 | 3.8 | (68.6 | ) | 91.6 | 16.6 | 108.2 | |||||||||||||||||
Earnings (loss) from continuing operations, net of tax | 246.9 | 7.6 | (71.8 | ) | 182.7 | 33.1 | 215.8 | |||||||||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (2.2 | ) | — | — | (2.2 | ) | — | (2.2 | ) | |||||||||||||||
Net earnings (loss) | 244.7 | 7.6 | (71.8 | ) | 180.5 | 33.1 | 213.6 | |||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (4.5 | ) | — | — | (4.5 | ) | — | (4.5 | ) | |||||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 240.2 | $ | 7.6 | $ | (71.8 | ) | $ | 176.0 | $ | 33.1 | $ | 209.1 | |||||||||||
Amounts attributable to FIS common stockholders | ||||||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 242.4 | $ | 7.6 | $ | (71.8 | ) | $ | 178.2 | $ | 33.1 | $ | 211.3 | |||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (2.2 | ) | — | — | (2.2 | ) | — | (2.2 | ) | |||||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 240.2 | $ | 7.6 | $ | (71.8 | ) | $ | 176.0 | $ | 33.1 | $ | 209.1 | |||||||||||
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 0.85 | $ | 0.03 | $ | (0.25 | ) | $ | 0.63 | $ | 0.12 | $ | 0.74 | |||||||||||
Weighted average shares outstanding — diluted | 284.4 | 284.4 | 284.4 | 284.4 | 284.4 | 284.4 | ||||||||||||||||||
Effective tax rate | 39 | % | 33 | % | ||||||||||||||||||||
Supplemental information: | ||||||||||||||||||||||||
Depreciation and amortization | $ | 154.5 | (49.7 | ) | $ | 104.8 | ||||||||||||||||||
Stock compensation expense | $ | 16.4 | ||||||||||||||||||||||
* Amounts may not sum due to rounding.
See accompanying notes.
9
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E (continued) | ||||||||||||||||||||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||||||||||||
Acquisition, | ||||||||||||||||||||||||||||
Integration, | ||||||||||||||||||||||||||||
and | Sale of | Purchase | ||||||||||||||||||||||||||
Severance | Gaming | Global | Price | |||||||||||||||||||||||||
GAAP | Costs (1) | Contracts (2) | Restructure (3) | Subtotal | Amort. (5) | Non-GAAP | ||||||||||||||||||||||
Processing and services revenue | $ | 3,141.6 | $ | — | $ | — | $ | — | $ | 3,141.6 | $ | — | $ | 3,141.6 | ||||||||||||||
Cost of revenues | 2,139.3 | — | — | — | 2,139.3 | (100.0 | ) | 2,039.3 | ||||||||||||||||||||
Gross profit | 1,002.3 | — | — | — | 1,002.3 | 100.0 | 1,102.3 | |||||||||||||||||||||
Selling, general and administrative | 500.2 | (23.6 | ) | — | (44.6 | ) | 432.0 | — | 432.0 | |||||||||||||||||||
Operating income | 502.1 | 23.6 | — | 44.6 | 570.3 | 100.0 | 670.3 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income (expense), net | (73.2 | ) | — | — | — | (73.2 | ) | — | (73.2 | ) | ||||||||||||||||||
Other income (expense), net | 150.7 | — | (140.4 | ) | — | 10.3 | — | 10.3 | ||||||||||||||||||||
Total other income (expense) | 77.5 | — | (140.4 | ) | — | (62.9 | ) | — | (62.9 | ) | ||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 579.6 | 23.6 | (140.4 | ) | 44.6 | 507.4 | 100.0 | 607.4 | ||||||||||||||||||||
Provision for income taxes | 214.2 | 7.8 | (68.6 | ) | 14.6 | 168.0 | 33.1 | 201.1 | ||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | 365.4 | 15.8 | (71.8 | ) | 30.0 | 339.4 | 66.9 | 406.3 | ||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (5.3 | ) | — | — | — | (5.3 | ) | — | (5.3 | ) | ||||||||||||||||||
Net earnings (loss) | 360.1 | 15.8 | (71.8 | ) | 30.0 | 334.1 | 66.9 | 401.0 | ||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (9.0 | ) | — | — | — | (9.0 | ) | — | (9.0 | ) | ||||||||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 351.1 | $ | 15.8 | $ | (71.8 | ) | $ | 30.0 | $ | 325.1 | $ | 66.9 | $ | 392.0 | |||||||||||||
Amounts attributable to FIS common stockholders | ||||||||||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 356.4 | $ | 15.8 | $ | (71.8 | ) | $ | 30.0 | $ | 330.4 | $ | 66.9 | $ | 397.3 | |||||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (5.3 | ) | — | — | — | (5.3 | ) | — | (5.3 | ) | ||||||||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 351.1 | $ | 15.8 | $ | (71.8 | ) | $ | 30.0 | $ | 325.1 | $ | 66.9 | $ | 392.0 | |||||||||||||
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 1.25 | $ | 0.06 | $ | (0.25 | ) | $ | 0.11 | $ | 1.16 | $ | 0.23 | $ | 1.39 | |||||||||||||
Weighted average shares outstanding — diluted | 285.6 | 285.6 | 285.6 | 285.6 | 285.6 | 285.6 | 285.6 | |||||||||||||||||||||
Effective tax rate | 37 | % | 33 | % | ||||||||||||||||||||||||
Supplemental information: | ||||||||||||||||||||||||||||
Depreciation and amortization | $ | 307.9 | (100.0 | ) | $ | 207.9 | ||||||||||||||||||||||
Stock compensation expense | $ | 35.8 | ||||||||||||||||||||||||||
* Amounts may not sum due to rounding.
See accompanying notes.
10
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E (continued) | ||||||||||||
Three months ended June 30, 2014 | ||||||||||||
Purchase | ||||||||||||
Price | ||||||||||||
GAAP | Amort. (5) | Non-GAAP | ||||||||||
Processing and services revenue | $ | 1,599.1 | $ | — | $ | 1,599.1 | ||||||
Cost of revenues | 1,092.5 | (54.0 | ) | 1,038.5 | ||||||||
Gross profit | 506.6 | 54.0 | 560.6 | |||||||||
Selling, general and administrative | 196.9 | — | 196.9 | |||||||||
Operating income | 309.7 | 54.0 | 363.7 | |||||||||
Other income (expense): | ||||||||||||
Interest income (expense), net | (41.9 | ) | — | (41.9 | ) | |||||||
Other income (expense), net | (1.2 | ) | — | (1.2 | ) | |||||||
Total other income (expense) | (43.1 | ) | — | (43.1 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | 266.6 | 54.0 | 320.6 | |||||||||
Provision for income taxes | 80.4 | 16.3 | 96.7 | |||||||||
Earnings (loss) from continuing operations, net of tax | 186.2 | 37.7 | 223.9 | |||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (0.9 | ) | — | (0.9 | ) | |||||||
Net earnings (loss) | 185.3 | 37.7 | 223.0 | |||||||||
Net (earnings) loss attributable to noncontrolling interest | (6.5 | ) | — | (6.5 | ) | |||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 178.8 | $ | 37.7 | $ | 216.5 | ||||||
Amounts attributable to FIS common stockholders | ||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 179.7 | $ | 37.7 | $ | 217.4 | ||||||
Earnings (loss) from discontinued operations, net of tax (6) | (0.9 | ) | — | (0.9 | ) | |||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 178.8 | $ | 37.7 | $ | 216.5 | ||||||
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 0.62 | $ | 0.13 | $ | 0.75 | ||||||
Weighted average shares outstanding — diluted | 289.2 | 289.2 | 289.2 | |||||||||
Effective tax rate | 30 | % | 30 | % | ||||||||
Supplemental information: | ||||||||||||
Depreciation and amortization | $ | 156.5 | (54.0 | ) | $ | 102.5 | ||||||
Stock compensation expense | $ | 13.3 | ||||||||||
* Amounts may not sum due to rounding.
See accompanying notes.
11
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E (continued) | ||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||
Purchase | ||||||||||||||||||||
Contract | Price | |||||||||||||||||||
GAAP | Settlement (4) | Subtotal | Amort. (5) | Non-GAAP | ||||||||||||||||
Processing and services revenue | $ | 3,119.4 | $ | 9.0 | $ | 3,128.4 | $ | — | $ | 3,128.4 | ||||||||||
Cost of revenues | 2,136.9 | — | 2,136.9 | (108.9 | ) | 2,028.0 | ||||||||||||||
Gross profit | 982.5 | 9.0 | 991.5 | 108.9 | 1,100.4 | |||||||||||||||
Selling, general and administrative | 386.7 | — | 386.7 | — | 386.7 | |||||||||||||||
Operating income | 595.8 | 9.0 | 604.8 | 108.9 | 713.7 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest income (expense), net | (83.0 | ) | — | (83.0 | ) | — | (83.0 | ) | ||||||||||||
Other income (expense), net | (1.7 | ) | — | (1.7 | ) | — | (1.7 | ) | ||||||||||||
Total other income (expense) | (84.7 | ) | — | (84.7 | ) | — | (84.7 | ) | ||||||||||||
Earnings (loss) from continuing operations before income taxes | 511.1 | 9.0 | 520.1 | 108.9 | 629.0 | |||||||||||||||
Provision for income taxes | 161.6 | 3.0 | 164.6 | 34.7 | 199.3 | |||||||||||||||
Earnings (loss) from continuing operations, net of tax | 349.5 | 6.0 | 355.5 | 74.2 | 429.7 | |||||||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (3.1 | ) | — | (3.1 | ) | — | (3.1 | ) | ||||||||||||
Net earnings (loss) | 346.4 | 6.0 | 352.4 | 74.2 | 426.6 | |||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (13.1 | ) | — | (13.1 | ) | — | (13.1 | ) | ||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 333.3 | $ | 6.0 | $ | 339.3 | $ | 74.2 | $ | 413.5 | ||||||||||
Amounts attributable to FIS common stockholders | ||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | 336.4 | $ | 6.0 | $ | 342.4 | $ | 74.2 | $ | 416.6 | ||||||||||
Earnings (loss) from discontinued operations, net of tax (6) | (3.1 | ) | — | (3.1 | ) | — | (3.1 | ) | ||||||||||||
Net earnings (loss) attributable to FIS common stockholders | $ | 333.3 | $ | 6.0 | $ | 339.3 | $ | 74.2 | $ | 413.5 | ||||||||||
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* | $ | 1.16 | $ | 0.02 | $ | 1.18 | $ | 0.26 | $ | 1.43 | ||||||||||
Weighted average shares outstanding — diluted | 290.5 | 290.5 | 290.5 | 290.5 | 290.5 | |||||||||||||||
Effective tax rate | 32 | % | 32 | % | ||||||||||||||||
Supplemental information: | ||||||||||||||||||||
Depreciation and amortization | $ | 309.1 | (108.9 | ) | $ | 200.2 | ||||||||||||||
Stock compensation expense | $ | 26.6 | ||||||||||||||||||
* Amounts may not sum due to rounding.
See accompanying notes.
12
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the three and six months ended June 30, 2015 and 2014.
The adjustments are as follows:
(1) | This column represents non-recurring transaction and other costs, including integration activities, related to recent acquisitions and other severance costs. |
(2) | Represents gain on the sale of check warranty contracts in the gaming industry. The sale did not meet the standard necessary to be reported as discontinued operations and, therefore, the gain and related prior period earnings remain reported within earnings from continuing operations. |
(3) | Severance costs incurred in connection with the reorganization and streamlining of operations in our Global Financial Solutions segment in order to focus on growth and specific market demands of clientele in that market. |
(4) | The revenue adjustment in this column represents a cash settlement for the extinguishment of certain contractual minimums with a reseller. Although the 2014 cash settlement has no contract performance obligation, revenue is amortized in this circumstance over the remaining relationship with the reseller. |
(5) | This column represents purchase price amortization expense on intangible assets acquired through various Company acquisitions. |
(6) | During the 2015 and 2014 periods, certain operations were classified as discontinued. Reporting for discontinued operations classifies revenues and expenses as one line item net of tax in the consolidated statements of earnings. The table below outlines the components of discontinued operations for the periods presented, net of tax. During the second quarter of 2014, management committed to a plan to sell our primary business operations in China because they do not align with our strategic plans. The activity for Fidelity National Participacoes Ltda. ("Participacoes"), our former item processing and remittance services business in Brazil, relates to the ongoing settlement of labor claims as a result of the dismissal of employees in that business. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
China business line | $ | (1.9 | ) | $ | (0.4 | ) | $ | (3.6 | ) | $ | (2.2 | ) | |||
Participacoes | (0.3 | ) | (0.5 | ) | (1.7 | ) | (0.9 | ) | |||||||
Total discontinued operations | $ | (2.2 | ) | $ | (0.9 | ) | $ | (5.3 | ) | $ | (3.1 | ) | |||
13