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8-K - FORM 8-K - Fidelity National Information Services, Inc. | g24971e8vk.htm |
EX-99.2 - EX-99.2 - Fidelity National Information Services, Inc. | g24971exv99w2.htm |
Exhibit 99.1
News Release
FIS Reports Third Quarter 2010 Results
Third Quarter Highlights:
| Revenue of $1.29 billion, up 3.3%, as adjusted | ||
| EPS of $0.52, as adjusted | ||
| EBITDA margin of 33.1%, up 320 basis points, as adjusted | ||
| Free cash flow of $220 million, as adjusted |
JACKSONVILLE, Fla., October 26, 2010 FIS (NYSE:FIS), one of the worlds largest
global providers dedicated to banking and payments technologies, today reported financial results
for the quarter ended September 30, 2010.
GAAP revenue in the third quarter of 2010 was $1.37 billion, compared to $828.7 million in the
third quarter of 2009. GAAP net earnings from continuing operations attributable to common
stockholders totaled $134.3 million, or $0.40 per diluted share, compared to $66.6 million, or
$0.34 per diluted share, in the prior year quarter.
Adjusted revenue in the third quarter of 2010 increased 3.3% to $1.29 billion compared to pro forma
revenue of $1.25 billion in the third quarter of 2009. Adjusted EBITDA increased 14.7% to $426.6
million, compared to pro forma adjusted EBITDA of $371.9 million in the 2009 quarter. The adjusted
EBITDA margin expanded 320 basis points to 33.1%. Adjusted net earnings from continuing operations
totaled $176.7 million or $0.52 per diluted share compared to adjusted net earnings from continuing
operations of $89.2 million, or $0.46 per share, in the third quarter of 2009. Adjusted free cash
flow increased to $220.4 million compared to adjusted free cash flow of $132.8 million in the prior
year quarter. 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.
We are very encouraged by the positive momentum in top-line growth. Our discussions with clients
continue to trend towards solutions that support their growth initiatives and expansion
strategies, stated Frank Martire, president and chief executive officer of FIS. Martire
continued, On October 1, we celebrated the one-year anniversary of the combination of FIS and
Metavante. We have made significant progress towards completing the integration, while remaining
focused on serving our clients and executing our business plan.
Third Quarter Highlights and Recent Developments
A summary of FIS recent key business developments and strategic initiatives include:
| The migration of Banco Bradescos 14 million bankcard portfolio to the FIS proprietary Base2000 card processing platform, which was completed on October 2 | ||
| The signing of a memorandum of understanding (MOU) with Banco Bradesco to continue the joint venture in Brazil | ||
| A definitive agreement to acquire Capco, a global business and technology consultancy dedicated solely to the financial services industry | ||
| The commencement of a process to pursue strategic alternatives for FIS item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes Ltda. (formerly known as Proservvi Empreendimentos e Servicos Ltda.) | ||
| Completion of a $2.5 billion recapitalization including the repurchase of 86.2 million shares at $29 per share |
Acquisitions and Discontinued Operations
On October 1, 2009, FIS completed the acquisition of Metavante Technologies, Inc. The transaction
was treated as a purchase and the results of Metavante are included in the consolidated results of
FIS beginning October 1, 2009. For comparative purposes, in accordance with managements desire to
improve the understanding of the companys operating performance, the supplemental information
provided below assumes the merger was completed on January 1, 2009 and combines Metavantes results
with FISs historical results on a pro forma basis.
During the third quarter of 2010, FIS determined that it will pursue strategic alternatives for its
item processing and remittance services subsidiary in Brazil, Fidelity National Participacoes
Ltda., and intensify its focus on expanding its card processing operation in the region. The
results of Fidelity National Participacoes Ltda. are reported as discontinued operations for all
periods presented, along with the previously disclosed ClearPar business divestiture (revenues and
expenses from discontinued operations are collapsed and classified as a separate line item on the
income statement).
Segment Information
The following segment information is presented on an adjusted pro forma basis, which management
believes provides meaningful comparisons between the periods presented. Reconciliations of
non-GAAP measures to related GAAP measures are provided in the attached schedules and in the
Investor Relations section of the FIS Web site, www.fisglobal.com.
| Financial Solutions revenue increased 10.5% to $485.5 million compared to $439.3 million in the 2009 quarter, driven by growth in professional services, software license sales and account processing revenue. Financial Solutions EBITDA increased 16.9% to $218.8 million, while the margin improved 250 basis points to 45.1% compared to 42.6% in the prior year quarter. | ||
| Payment Solutions revenue of $600.6 million declined 1.9% compared to $612.2 million in the 2009 quarter as growth in electronic payment solutions was offset by lower item |
processing and retail check activity. Payment Solutions EBITDA increased 2.3% to $230.9 million, and the margin increased 150 basis points to 38.4% compared to 36.9% in the prior year. | |||
| International Solutions revenue increased 2.3% to $199.4 million in U.S. dollars compared to $194.9 million in the 2009 quarter. The growth was driven by increased payment volumes in Brazil and Asia Pacific. Software and professional services revenue was comparable to prior year. International EBITDA decreased 4.1% to $46.5 million. The reported EBITDA margin was 23.3%, compared to 24.9% in the prior year quarter. | ||
| Corporate overhead, which included a $10 million pre-tax benefit related to the favorable resolution of a legal matter, totaled $69.6 million, compared to $89.5 million in the prior year quarter. Interest expense, net of interest income, was $60.9 million compared to $31.8 million in the 2009 quarter. The increase in interest expense was due to the recapitalization completed in the third quarter of 2010. |
Balance Sheet
Cash and cash equivalents totaled $389.4 million as of September 30, 2010. FIS began the quarter
with approximately $3.0 billion in debt and incurred an additional $2.5 billion related to the
leveraged recapitalization. The company subsequently repaid approximately $400 million resulting
in debt outstanding of approximately $5.1 billion as of September 30. Capital expenditures in the
third quarter of 2010 totaled $93.1 million, compared to $90.7 million in pro forma capital
expenditures in the prior year.
2010 Outlook
FIS anticipates 2010 adjusted revenue to be at the high end of its guidance for 1% to 3% growth in
constant currency. The company anticipates adjusted earnings per share from continuing operations
of $1.95 to $1.99 in 2010, which is consistent with previous guidance of $1.91 to $2.01 per share,
and expects to generate adjusted free cash flow in excess of $700 million. FIS is projecting
average diluted shares of 353 million for the full year, and 307 million in the fourth quarter.
We are very pleased with the solid third quarter results and our financial performance
through the first nine months of the year. We remain focused on our client relationships, growing
the business and further extending our market leadership. Martire added.
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.
These non-GAAP measures include adjusted revenue, adjusted earnings before interest, taxes and
depreciation and amortization (EBITDA), adjusted net earnings, and adjusted free cash flow.
Adjusted revenue excludes a settlement related to the card processing joint venture in Brazil and
the impact of deferred revenue purchase accounting. Adjusted EBITDA excludes the impact of merger
and acquisition and integration expenses, accelerated stock compensation charges
associated with
merger and acquisition activity, costs associated with the 2010 recapitalization plan, settlement
revenue and an impairment charge related to the card processing joint venture in Brazil; deferred
revenue purchase accounting and certain other costs. Adjusted net earnings exclude the after-tax
impact of merger and acquisition and integration expenses, accelerated stock compensation charges
associated with merger and acquisition activity, costs associated with the 2010 recapitalization
plan, an impairment charge and settlement related to the card processing joint venture in Brazil,
acquisition related amortization, deferred revenue purchase accounting and certain other costs.
Adjusted free cash flow is GAAP operating cash flow less capital expenditures, acquisition related
cash items and cash items associated with the 2010 recapitalization plan. 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 non-GAAP measures may be
calculated differently from similarly titled measures of other companies. Reconciliations of these
non-GAAP measures to related GAAP measures are provided in the attached schedules and in the
Investor Relations section of the FIS Web site, www.fisglobal.com.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss third quarter 2010 results on Tuesday,
October 26, 2010 beginning at 8:30 a.m. Eastern daylight time. To register for 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 website, and a telephone replay will be available through November 9, 2010, by
dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 173869. To
access a PDF version of this release and accompanying financial tables, go to
http://www.investor.fisglobal.com.
About FIS
FIS (NYSE: FIS) is one of the worlds largest global providers dedicated to banking and payments
technologies. With a long history deeply rooted in the financial services sector, FIS serves more
than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs
more than 30,000 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 a member of Standard & Poors 500® Index and consistently holds a
leading ranking in the annual FinTech 100 list. For more information about FIS, visit
www.fisglobal.com.
Forward-Looking Statements
This news release and todays conference call contain forward-looking statements within the
meaning of the U.S. federal securities laws. Statements that are not historical facts, including
statements about 2010 adjusted revenue, earnings per share, margin expansion and cash flow, 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
managements 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 and conditions in general economic, business and political
conditions, including the possibility of intensified international hostilities, acts of terrorism,
and changes and conditions in either or both the United States and international lending, capital
and financial markets; the effect of legislative initiatives or proposals, statutory changes,
governmental or other applicable regulations and/or changes in industry requirements, including
privacy regulations; 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 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 core processing, card issuer, and transaction processing services; failures to adapt our
services and products 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; the failure to achieve some or all of the benefits that we expect
from the Metavante Acquisition (as defined below), including the possibility that the Metavante
Acquisition may not be accretive to our earnings due to undisclosed liabilities, management or
integration issues, loss of customers, the inability to achieve targeted cost savings, or other
factors; our potential inability to find suitable acquisition candidates or finance such
acquisitions, which depends upon the availability of adequate cash reserves from operations or of
acceptable financing terms and the variability of our stock price, or difficulties in integrating
past and future acquired technology or business operations, services, clients and personnel;
competitive pressures on product pricing and services 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 Companys Annual Report on Form
10-K for the fiscal year ended December 31, 2009 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.
FIS-e
SOURCE: Fidelity National Information Services, Inc.
Marcia Danzeisen, 904.854.5083
|
Mary Waggoner, 904.854.3282 | |
Senior Vice President
|
Senior Vice President | |
FIS Global Marketing and Communications
|
FIS Investor Relations | |
marcia.danzeisen@fisglobal.com
|
mary.waggoner@fisglobal.com |
###
Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
October 26, 2010
Earnings Release Supplemental Financial Information
October 26, 2010
Exhibit A
|
Consolidated Statements of Earnings Unaudited for the three and nine months ended September 30, 2010 and 2009 | |
Exhibit B
|
Consolidated Balance Sheets Unaudited as of September 30, 2010 and December 31, 2009 | |
Exhibit C
|
Consolidated Statements of Cash Flows Unaudited for the nine months ended September 30, 2010 and 2009 | |
Exhibit D
|
Supplemental Non-GAAP Financial Information Unaudited for the three and nine months ended September 30, 2010 and 2009 | |
Exhibit E
|
Supplemental GAAP to Non-GAAP Reconciliation Unaudited for the three and nine months ended September 30, 2010 and 2009 |
1
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS UNAUDITED
(In millions, except per share data)
CONSOLIDATED STATEMENTS OF EARNINGS UNAUDITED
(In millions, except per share data)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Processing and services revenues |
$ | 1,367.2 | $ | 828.7 | $ | 3,873.2 | $ | 2,428.1 | ||||||||
Cost of revenues |
897.3 | 605.4 | 2,680.9 | 1,822.2 | ||||||||||||
Selling, general and administrative expenses |
138.9 | 89.4 | 489.8 | 275.7 | ||||||||||||
Impairment charges |
154.9 | | 154.9 | | ||||||||||||
Operating income |
176.1 | 133.9 | 547.6 | 330.2 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense, net |
(60.9 | ) | (31.8 | ) | (108.4 | ) | (94.3 | ) | ||||||||
Other income (expense), net |
17.9 | 1.4 | | 8.0 | ||||||||||||
Total other income (expense) |
(43.0 | ) | (30.4 | ) | (108.4 | ) | (86.3 | ) | ||||||||
Earnings from continuing operations before income taxes |
133.1 | 103.5 | 439.2 | 243.9 | ||||||||||||
Provision for income taxes |
48.2 | 35.5 | 161.2 | 83.8 | ||||||||||||
Earnings from continuing operations, net of tax |
84.9 | 68.0 | 278.0 | 160.1 | ||||||||||||
Earnings (losses) from discontinued operations, net of tax |
(23.9 | ) | 1.0 | (32.4 | ) | 1.2 | ||||||||||
Net earnings |
61.0 | 69.0 | 245.6 | 161.3 | ||||||||||||
Net (earnings) loss attributable to noncontrolling interest |
49.4 | (1.4 | ) | 48.3 | (1.5 | ) | ||||||||||
Net earnings attributable to FIS common stockholders |
$ | 110.4 | $ | 67.6 | $ | 293.9 | $ | 159.8 | ||||||||
Net earnings per share-basic from continuing operations attributable to FIS common stockholders * |
$ | 0.40 | $ | 0.35 | $ | 0.91 | $ | 0.83 | ||||||||
Net earnings per share-basic from discontinued operations attributable to FIS common stockholders * |
(0.07 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net earnings per share-basic attributable to FIS common stockholders * |
$ | 0.33 | $ | 0.35 | $ | 0.82 | $ | 0.84 | ||||||||
Weighted average shares outstanding-basic |
332.2 | 191.1 | 360.5 | 190.5 | ||||||||||||
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders * |
$ | 0.40 | $ | 0.34 | $ | 0.89 | $ | 0.82 | ||||||||
Net earnings per share-diluted from discontinued operations attributable to FIS common stockholders * |
(0.07 | ) | 0.01 | (0.09 | ) | 0.01 | ||||||||||
Net earnings per share-diluted attributable to FIS common stockholders * |
$ | 0.33 | $ | 0.35 | $ | 0.80 | $ | 0.83 | ||||||||
Weighted average shares outstanding-diluted |
339.2 | 194.6 | 367.7 | 193.0 | ||||||||||||
Amounts attributable to FIS common stockholders: |
||||||||||||||||
Earnings from continuing operations, net of tax |
$ | 134.3 | $ | 66.6 | $ | 326.3 | $ | 158.6 | ||||||||
Earnings (losses) from discontinued operations, net of tax |
(23.9 | ) | 1.0 | (32.4 | ) | 1.2 | ||||||||||
Net earnings attributable to FIS common stockholders |
$ | 110.4 | $ | 67.6 | $ | 293.9 | $ | 159.8 | ||||||||
* | Amounts may not sum due to rounding. |
2
Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS UNAUDITED
(In millions)
CONSOLIDATED BALANCE SHEETS UNAUDITED
(In millions)
As of | As of | |||||||
September 30, | December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 389.4 | $ | 430.9 | ||||
Settlement deposits |
48.5 | 50.8 | ||||||
Trade receivables, net |
736.6 | 765.4 | ||||||
Settlement receivables |
40.3 | 62.5 | ||||||
Other receivables |
26.8 | 30.9 | ||||||
Receivable from related parties |
28.0 | 32.0 | ||||||
Prepaid expenses and other current assets |
123.8 | 141.2 | ||||||
Deferred income taxes |
75.1 | 80.9 | ||||||
Assets held for sale |
15.0 | 71.5 | ||||||
Total current assets |
1,483.5 | 1,666.1 | ||||||
Property and equipment, net |
371.9 | 375.9 | ||||||
Goodwill |
8,222.5 | 8,232.9 | ||||||
Intangible assets, net |
2,105.3 | 2,396.8 | ||||||
Computer software, net |
911.5 | 932.7 | ||||||
Deferred contract costs |
252.5 | 261.4 | ||||||
Other noncurrent assets |
208.5 | 131.8 | ||||||
Total assets |
$ | 13,555.7 | $ | 13,997.6 | ||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 481.1 | $ | 523.2 | ||||
Due to Brazilian venture partners |
57.9 | 73.0 | ||||||
Settlement payables |
103.3 | 122.3 | ||||||
Current portion of long-term debt |
267.5 | 236.7 | ||||||
Deferred revenues |
248.4 | 279.5 | ||||||
Liabilities held for sale |
28.8 | | ||||||
Total current liabilities |
1,187.0 | 1,234.7 | ||||||
Deferred revenues |
92.9 | 104.8 | ||||||
Deferred income taxes |
800.2 | 915.9 | ||||||
Long-term debt, excluding current portion |
4,828.8 | 3,016.6 | ||||||
Other long-term liabilities |
225.9 | 207.0 | ||||||
Total liabilities |
7,134.8 | 5,479.0 | ||||||
Equity: |
||||||||
FIS stockholders equity: |
||||||||
Preferred stock $0.01 par value |
| | ||||||
Common stock $0.01 par value |
3.8 | 3.8 | ||||||
Additional paid in capital |
7,194.1 | 7,345.1 | ||||||
Retained earnings |
1,375.8 | 1,134.6 | ||||||
Accumulated other comprehensive earnings |
70.2 | 82.2 | ||||||
Treasury stock |
(2,383.2 | ) | (256.8 | ) | ||||
Total FIS stockholders equity |
6,260.7 | 8,308.9 | ||||||
Noncontrolling interest |
160.2 | 209.7 | ||||||
Total equity |
6,420.9 | 8,518.6 | ||||||
Total liabilities and equity |
$ | 13,555.7 | $ | 13,997.6 | ||||
3
Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED
(In millions)
CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED
(In millions)
Nine months ended September 30, | ||||||||
2010 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Net earnings |
$ | 245.6 | $ | 161.3 | ||||
Adjustment to reconcile net earnings to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
459.8 | 278.4 | ||||||
Asset impairment charges |
179.9 | | ||||||
Stock-based compensation |
40.7 | 27.3 | ||||||
Deferred income taxes |
(107.8 | ) | (24.6 | ) | ||||
Excess income tax benefit from exercise of stock options |
(20.8 | ) | (4.5 | ) | ||||
Other operating activities, net |
(5.8 | ) | 2.5 | |||||
Net changes in assets and liabilities, net of effects from acquisitions: |
||||||||
Trade receivables |
33.7 | 134.4 | ||||||
Settlement receivables |
5.4 | 4.7 | ||||||
Prepaid expenses and other assets |
(3.4 | ) | 27.2 | |||||
Deferred contract costs |
(36.7 | ) | (40.7 | ) | ||||
Deferred revenue |
(37.3 | ) | (13.7 | ) | ||||
Accounts payable, accrued liabilities and other liabilities |
32.6 | (47.3 | ) | |||||
Net cash provided by operating activities |
785.9 | 505.0 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property and equipment |
(89.9 | ) | (34.5 | ) | ||||
Additions to computer software |
(137.4 | ) | (111.1 | ) | ||||
Net proceeds from sale of assets |
71.5 | | ||||||
Acquisitions, net of cash acquired |
(66.6 | ) | (3.8 | ) | ||||
Other investing activities |
1.5 | 5.9 | ||||||
Net cash used in investing activities |
(220.9 | ) | (143.5 | ) | ||||
Cash flows from financing activities: |
||||||||
Borrowings |
8,067.0 | 2,147.2 | ||||||
Repayment of borrowings |
(6,229.5 | ) | (2,517.0 | ) | ||||
Capitalized debt issuance costs |
(70.3 | ) | | |||||
Dividends paid and other distributions |
(55.1 | ) | (30.6 | ) | ||||
Excess income tax benefit from exercise of stock options |
20.8 | 4.5 | ||||||
Proceeds from exercise of stock options |
198.8 | 11.6 | ||||||
Treasury stock purchases |
(2,539.4 | ) | | |||||
Other financing activity |
3.3 | | ||||||
Net cash used in financing activities |
(604.4 | ) | (384.3 | ) | ||||
Effect of foreign currency exchange rate changes on cash |
(2.1 | ) | 7.5 | |||||
Net increase in cash and cash equivalents |
(41.5 | ) | (15.3 | ) | ||||
Cash and cash equivalents, at beginning of period |
430.9 | 220.9 | ||||||
Cash and cash equivalents, at end of period |
$ | 389.4 | $ | 205.6 | ||||
4
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In millions)
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
Three months ended September 30, 2010 | ||||||||||||||||||||
Financial | Payment | International | Corporate | |||||||||||||||||
Solutions | Solutions | Solutions | and Other | Consolidated | ||||||||||||||||
Revenue from continuing operations, as adjusted |
$ | 485.5 | $ | 600.6 | $ | 199.4 | $ | 1.6 | $ | 1,287.1 | ||||||||||
Operating income (loss) |
$ | 179.8 | $ | 206.8 | $ | (38.6 | ) | $ | (171.9 | ) | $ | 176.1 | ||||||||
M&A, restructuring, integration and recapitalization costs |
| | | 22.5 | 22.5 | |||||||||||||||
Brazil joint venture |
| 71.6 | | 71.6 | ||||||||||||||||
Acquisition deferred revenue adjustments |
| | | 3.2 | 3.2 | |||||||||||||||
Purchase price amortization |
| 0.2 | 0.1 | 65.9 | 66.2 | |||||||||||||||
Non GAAP operating income (loss) |
$ | 179.8 | $ | 207.0 | $ | 33.1 | $ | (80.3 | ) | $ | 339.6 | |||||||||
Depreciation and amortization from continuing |
||||||||||||||||||||
Operations, as adjusted |
39.0 | 23.9 | 13.4 | 10.7 | 87.0 | |||||||||||||||
EBITDA, as adjusted |
$ | 218.8 | $ | 230.9 | $ | 46.5 | $ | (69.6 | ) | $ | 426.6 | |||||||||
Non GAAP operating margin, as adjusted |
37.0 | % | 34.5 | % | 16.6 | % | N/M | % | 26.4 | % | ||||||||||
EBITDA margin, as adjusted |
45.1 | % | 38.4 | % | 23.3 | % | N/M | % | 33.1 | % | ||||||||||
Three months ended September 30, 2009 | ||||||||||||||||||||
Financial | Payment | International | Corporate | |||||||||||||||||
Solutions | Solutions | Solutions | and Other | Consolidated | ||||||||||||||||
Revenue from continuing operations |
$ | 271.4 | $ | 368.8 | $ | 189.0 | $ | (0.5 | ) | $ | 828.7 | |||||||||
Pro forma Metavante revenue and adjustments |
167.9 | 243.4 | 5.9 | (0.1 | ) | 417.1 | ||||||||||||||
Pro forma revenue from continuing operations |
$ | 439.3 | $ | 612.2 | $ | 194.9 | $ | (0.6 | ) | $ | 1,245.8 | |||||||||
Operating income (loss) |
$ | 97.1 | $ | 99.6 | $ | 32.8 | $ | (95.6 | ) | $ | 133.9 | |||||||||
Pro forma Metavante operating income and adjustments |
52.4 | 98.0 | 1.9 | (82.0 | ) | 70.3 | ||||||||||||||
Pro forma operating Income (loss) |
149.5 | 197.6 | 34.7 | (177.6 | ) | 204.2 | ||||||||||||||
M&A, restructuring and integration costs |
| | | 10.2 | 10.2 | |||||||||||||||
Purchase price amortization |
| | | 67.5 | 67.5 | |||||||||||||||
Non GAAP operating income (loss) |
$ | 149.5 | $ | 197.6 | $ | 34.7 | $ | (99.9 | ) | $ | 281.9 | |||||||||
Depreciation and amortization from continuing |
||||||||||||||||||||
Operations, as adjusted |
37.7 | 28.1 | 13.8 | 10.4 | 90.0 | |||||||||||||||
EBITDA, as adjusted |
$ | 187.2 | $ | 225.7 | $ | 48.5 | $ | (89.5 | ) | $ | 371.9 | |||||||||
Non GAAP operating margin, as adjusted |
34.0 | % | 32.3 | % | 17.8 | % | N/M | % | 22.6 | % | ||||||||||
EBITDA margin, as adjusted |
42.6 | % | 36.9 | % | 24.9 | % | N/M | % | 29.9 | % | ||||||||||
Total Revenue Growth from Prior Year Period |
||||||||||||||||||||
Three months ended September 30,2010 |
10.5 | % | -1.9 | % | 2.3 | % | N/M | % | 3.3 | % | ||||||||||
5
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In millions)
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
Nine months ended September 30, 2010 | ||||||||||||||||||||
Financial | Payment | International | Corporate | |||||||||||||||||
Solutions | Solutions | Solutions | and Other | Consolidated | ||||||||||||||||
Revenue from continuing operations, as adjusted |
$ | 1,387.3 | $ | 1,850.0 | $ | 565.5 | $ | 4.7 | $ | 3,807.5 | ||||||||||
Operating income (loss) |
$ | 490.2 | $ | 619.2 | $ | 9.4 | $ | (571.2 | ) | $ | 547.6 | |||||||||
M&A, restructuring, integration and recapitalization costs |
| | | 91.5 | 91.5 | |||||||||||||||
Brazil joint venture |
| | 71.6 | | 71.6 | |||||||||||||||
Acquisition deferred revenue adjustments |
| | | 17.4 | 17.4 | |||||||||||||||
Purchase price amortization |
| 0.7 | 0.4 | 196.1 | 197.2 | |||||||||||||||
Non GAAP operating income (loss) |
$ | 490.2 | $ | 619.9 | $ | 81.4 | $ | (266.2 | ) | $ | 925.3 | |||||||||
Depreciation and amortization from continuing |
||||||||||||||||||||
Operations, as adjusted |
114.7 | 72.8 | 41.4 | 29.0 | 257.9 | |||||||||||||||
EBITDA, as adjusted |
$ | 604.9 | $ | 692.7 | $ | 122.8 | $ | (237.2 | ) | $ | 1,183.2 | |||||||||
Non GAAP operating margin, as adjusted |
35.3 | % | 33.5 | % | 14.4 | % | N/M | % | 24.3 | % | ||||||||||
EBITDA margin, as adjusted |
43.6 | % | 37.4 | % | 21.7 | % | N/M | % | 31.1 | % | ||||||||||
Nine months ended September 30, 2009 | ||||||||||||||||||||
Financial | Payment | International | Corporate | |||||||||||||||||
Solutions | Solutions | Solutions | and Other | Consolidated | ||||||||||||||||
Revenue from continuing operations |
$ | 807.5 | $ | 1,112.3 | $ | 509.8 | $ | (1.5 | ) | $ | 2,428.1 | |||||||||
Pro forma Metavante revenue and adjustments |
506.7 | 743.8 | 16.7 | (0.2 | ) | 1,267.0 | ||||||||||||||
Pro forma revenue from continuing operations |
$ | 1,314.2 | $ | 1,856.1 | $ | 526.5 | $ | (1.7 | ) | $ | 3,695.1 | |||||||||
Operating income (loss) |
$ | 259.6 | $ | 281.8 | $ | 70.1 | $ | (281.3 | ) | $ | 330.2 | |||||||||
Pro forma Metavante operating income and adjustments |
166.7 | 288.2 | 6.3 | (246.9 | ) | 214.3 | ||||||||||||||
Pro forma operating Income (loss) |
426.3 | 570.0 | 76.4 | (528.2 | ) | 544.5 | ||||||||||||||
M&A, restructuring and integration costs |
| | | 26.1 | 26.1 | |||||||||||||||
Purchase price amortization |
| | | 203.3 | 203.3 | |||||||||||||||
Non GAAP operating income (loss) |
$ | 426.3 | $ | 570.0 | $ | 76.4 | $ | (298.8 | ) | $ | 773.9 | |||||||||
Depreciation and amortization from continuing |
||||||||||||||||||||
Operations, as adjusted |
114.8 | 85.6 | 39.6 | 27.1 | 267.1 | |||||||||||||||
EBITDA, as adjusted |
$ | 541.1 | $ | 655.6 | $ | 116.0 | $ | (271.7 | ) | $ | 1,041.0 | |||||||||
Non GAAP operating margin, as adjusted |
32.4 | % | 30.7 | % | 14.5 | % | N/M | % | 20.9 | % | ||||||||||
EBITDA margin, as adjusted |
41.2 | % | 35.3 | % | 22.0 | % | N/M | % | 28.2 | % | ||||||||||
Total Revenue Growth from Prior Year Period |
||||||||||||||||||||
Nine months ended September 30, 2010 |
5.6 | % | -0.3 | % | 7.4 | % | N/M | % | 3.0 | % | ||||||||||
6
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF CASH FLOW MEASURES UNAUDITED
(In millions)
RECONCILIATION OF CASH FLOW MEASURES UNAUDITED
(In millions)
Three months ended September 30, 2010 | Nine months ended September 30, 2010 | |||||||||||||||||||||||
GAAP | Adj | Adjusted | GAAP | Adj | Adjusted | |||||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||||||
Net earnings (1) |
$ | 61.0 | $ | 92.5 | $ | 153.5 | $ | 245.6 | $ | 238.2 | $ | 483.8 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||||||||||||||||||
Non-cash adjustments (2) |
253.2 | (132.9 | ) | 120.3 | 546.0 | (209.4 | ) | 336.6 | ||||||||||||||||
Working capital adjustments (3) |
26.5 | 13.2 | 39.7 | (5.7 | ) | (18.2 | ) | (23.9 | ) | |||||||||||||||
Net cash provided by operating activities |
340.7 | (27.2 | ) | 313.5 | 785.9 | 10.6 | 796.5 | |||||||||||||||||
Capital expenditures |
(93.1 | ) | | (93.1 | ) | (227.3 | ) | | (227.3 | ) | ||||||||||||||
Free cash flow |
$ | 247.6 | $ | (27.2 | ) | $ | 220.4 | $ | 558.6 | $ | 10.6 | $ | 569.2 | |||||||||||
Three months ended September 30, 2009 | Nine months ended September 30, 2009 | |||||||||||||||||||||||
GAAP | Adj | Adjusted | GAAP | Adj | Adjusted | |||||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||||||
Net earnings (1) |
$ | 69.0 | $ | 3.5 | $ | 72.5 | $ | 161.3 | $ | 9.7 | $ | 171.0 | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||||||||||||||||||
Non-cash adjustments (2) |
106.9 | | 106.9 | 279.1 | | 279.1 | ||||||||||||||||||
Working capital adjustments (3) |
3.8 | (1.0 | ) | 2.8 | 64.6 | 2.0 | 66.6 | |||||||||||||||||
Net cash provided by operating activities |
179.7 | 2.5 | 182.2 | 505.0 | 11.7 | 516.7 | ||||||||||||||||||
Capital expenditures |
(49.4 | ) | | (49.4 | ) | (145.6 | ) | | (145.6 | ) | ||||||||||||||
Free cash flow |
$ | 130.3 | $ | 2.5 | $ | 132.8 | $ | 359.4 | $ | 11.7 | $ | 371.1 | ||||||||||||
(1) | Adjustments to Net Earnings reflect the elimination of the after-tax impact of M&A and related integration costs, 2010 leveraged recapitalization plan costs, as well as, non-cash impairment, stock acceleration charges and purchase price amortization. For the 2010 periods, the adjustment also includes the removal of the impact of Santanders exit from our Brazilian card processing venture. | |
(2) | Adjustments to Non Cash Adjustments reflects the after-tax impact of stock acceleration charges and purchase price amortization. For the 2010 periods, the adjustment also includes the removal of the impact of Santanders exit from our Brazilian card processing venture. | |
(3) | Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities and for the 2009 period, the elimination of accruals related to the acquisition of Metavante. |
Cash flows generated by Metavante Operations are included prospectively beginning October 1, 2009 in the consolidated cash flows for FIS.
7
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(In millions)
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(In millions)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net earnings from continuing operations attributable to FIS |
$ | 134.3 | $ | 66.6 | $ | 326.3 | $ | 158.6 | ||||||||
Provision for income taxes |
48.2 | 35.5 | 161.2 | 83.8 | ||||||||||||
Earnings from continuing operations before income taxes |
182.5 | 102.1 | 487.5 | 242.4 | ||||||||||||
Other, net |
(6.4 | ) | 31.8 | 60.1 | 87.8 | |||||||||||
Operating income |
176.1 | 133.9 | 547.6 | 330.2 | ||||||||||||
Pro forma Metavante operating income and adjustments |
| 70.3 | | 214.3 | ||||||||||||
M&A, restructuring and integration costs |
22.5 | 10.2 | 91.5 | 26.1 | ||||||||||||
Brazil joint venture |
71.6 | | 71.6 | | ||||||||||||
Acquisition deferred revenue adjustments |
3.2 | | 17.4 | | ||||||||||||
Purchase price amortization |
66.2 | 67.5 | 197.2 | 203.3 | ||||||||||||
Non GAAP operating income |
339.6 | 281.9 | 925.3 | 773.9 | ||||||||||||
Depreciation and amortization from continuing operations,
as adjusted |
87.0 | 90.0 | 257.9 | 267.1 | ||||||||||||
EBITDA, as adjusted |
$ | 426.6 | $ | 371.9 | $ | 1,183.2 | $ | 1,041.0 | ||||||||
8
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
GAAP | M&A | Non-GAAP | ||||||||||||||||||||||||||
Three Months | Restructuring, | Acquisition | Three Months | |||||||||||||||||||||||||
Ended | Integration & | Brazil | Deferred | Purchase | Ended | |||||||||||||||||||||||
September 30, 2010 | Recapitalization | Joint | Revenue | Price | September 30, 2010 | |||||||||||||||||||||||
(Unaudited) | Costs (1) | Venture (2) | Adjustments (3) | Subtotal | Amortization (4) | (Unaudited) | ||||||||||||||||||||||
Processing and services revenue |
$ | 1,367.2 | $ | | $ | (83.3 | ) | $ | 3.2 | $ | 1,287.1 | $ | | $ | 1,287.1 | |||||||||||||
Cost of revenues |
897.3 | | | | 897.3 | (66.2 | ) | 831.1 | ||||||||||||||||||||
Gross profit |
469.9 | | (83.3 | ) | 3.2 | 389.8 | 66.2 | 456.0 | ||||||||||||||||||||
Selling, general and administrative |
138.9 | (22.5 | ) | | | 116.4 | | 116.4 | ||||||||||||||||||||
Impairment charges |
154.9 | | (154.9 | ) | | | | | ||||||||||||||||||||
Operating income |
176.1 | 22.5 | 71.6 | 3.2 | 273.4 | 66.2 | 339.6 | |||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||
Interest income (expense), net |
(60.9 | ) | | | | (60.9 | ) | | (60.9 | ) | ||||||||||||||||||
Other income (expense), net |
17.9 | 2.7 | (19.4 | ) | | 1.2 | | 1.2 | ||||||||||||||||||||
Total other income (expense) |
(43.0 | ) | 2.7 | (19.4 | ) | | (59.7 | ) | | (59.7 | ) | |||||||||||||||||
Earnings from continuing operations before income taxes |
133.1 | 25.2 | 52.2 | 3.2 | 213.7 | 66.2 | 279.9 | |||||||||||||||||||||
Provision for income taxes |
48.2 | 9.3 | 19.3 | 1.2 | 78.0 | 24.5 | 102.5 | |||||||||||||||||||||
Earnings from continuing operations, net of tax |
84.9 | 15.9 | 32.9 | 2.0 | 135.7 | 41.7 | 177.4 | |||||||||||||||||||||
Earnings (losses) from discontinued operations, net of tax (5) |
(23.9 | ) | | | | (23.9 | ) | | (23.9 | ) | ||||||||||||||||||
Net earnings |
61.0 | 15.9 | 32.9 | 2.0 | 111.8 | 41.7 | 153.5 | |||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest |
49.4 | | (50.1 | ) | | (0.7 | ) | | (0.7 | ) | ||||||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 110.4 | $ | 15.9 | $ | (17.2 | ) | $ | 2.0 | $ | 111.1 | $ | 41.7 | $ | 152.8 | |||||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||||||||||
Earnings from continuing operations, net of tax |
$ | 134.3 | $ | 15.9 | $ | (17.2 | ) | $ | 2.0 | $ | 135.0 | $ | 41.7 | $ | 176.7 | |||||||||||||
Earnings (losses) from discontinued operations, net of tax |
(23.9 | ) | | | | (23.9 | ) | | (23.9 | ) | ||||||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 110.4 | $ | 15.9 | $ | (17.2 | ) | $ | 2.0 | $ | 111.1 | $ | 41.7 | $ | 152.8 | |||||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.40 | $ | 0.05 | $ | (0.05 | ) | $ | 0.01 | $ | 0.40 | $ | 0.12 | $ | 0.52 | |||||||||||||
Weighted average shares outstanding diluted |
339.2 | 339.2 | 339.2 | 339.2 | 339.2 | 339.2 | 339.2 | |||||||||||||||||||||
Effective tax rate |
36 | % | 37 | % | ||||||||||||||||||||||||
Supplemental Information: |
||||||||||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 153.2 | (66.2 | ) | $ | 87.0 | ||||||||||||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 13.9 | ||||||||||||||||||||||||||
Stock acceleration charges |
0.4 | |||||||||||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 14.3 | ||||||||||||||||||||||||||
* | Amounts may not sum due to rounding. |
See accompanying notes.
9
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
GAAP | M&A | Non-GAAP | ||||||||||||||||||||||||||
Nine Months | Restructuring, | Acquisition | Nine Months | |||||||||||||||||||||||||
Ended | Integration & | Brazil | Deferred | Purchase | Ended | |||||||||||||||||||||||
September 30, 2010 | Recapitalization | Joint | Revenue | Price | September 30, 2010 | |||||||||||||||||||||||
(Unaudited) | Costs (1) | Venture (2) | Adjustments (3) | Subtotal | Amortization (4) | (Unaudited) | ||||||||||||||||||||||
Processing and services revenue |
$ | 3,873.2 | $ | | $ | (83.3 | ) | $ | 17.4 | $ | 3,807.3 | $ | | $ | 3,807.3 | |||||||||||||
Cost of revenues |
2,680.9 | | | | 2,680.9 | (197.2 | ) | 2,483.7 | ||||||||||||||||||||
Gross profit |
1,192.3 | | (83.3 | ) | 17.4 | 1,126.4 | 197.2 | 1,323.6 | ||||||||||||||||||||
Selling, general and administrative |
489.8 | (91.5 | ) | | | 398.3 | | 398.3 | ||||||||||||||||||||
Impairment charges |
154.9 | | (154.9 | ) | | | | | ||||||||||||||||||||
Operating income |
547.6 | 91.5 | 71.6 | 17.4 | 728.1 | 197.2 | 925.3 | |||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||
Interest income (expense), net |
(108.4 | ) | | | | (108.4 | ) | | (108.4 | ) | ||||||||||||||||||
Other income (expense), net |
| 19.5 | (19.4 | ) | | 0.1 | | 0.1 | ||||||||||||||||||||
Total other income (expense) |
(108.4 | ) | 19.5 | (19.4 | ) | | (108.3 | ) | | (108.3 | ) | |||||||||||||||||
Earnings from continuing operations before income taxes |
439.2 | 111.0 | 52.2 | 17.4 | 619.8 | 197.2 | 817.0 | |||||||||||||||||||||
Provision for income taxes |
161.2 | 41.0 | 19.3 | 6.5 | 228.0 | 73.0 | 301.0 | |||||||||||||||||||||
Earnings from continuing operations, net of tax |
278.0 | 70.0 | 32.9 | 10.9 | 391.8 | 124.2 | 516.0 | |||||||||||||||||||||
Earnings (losses) from discontinued operations, net of tax (5) |
(32.4 | ) | | | | (32.4 | ) | | (32.4 | ) | ||||||||||||||||||
Net earnings |
245.6 | 70.0 | 32.9 | 10.9 | 359.4 | 124.2 | 483.6 | |||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest |
48.3 | | (50.1 | ) | | (1.8 | ) | | (1.8 | ) | ||||||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 293.9 | $ | 70.0 | $ | (17.2 | ) | $ | 10.9 | $ | 357.6 | $ | 124.2 | $ | 481.8 | |||||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||||||||||
Earnings from continuing operations, net of tax |
$ | 326.3 | $ | 70.0 | $ | (17.2 | ) | $ | 10.9 | $ | 390.0 | $ | 124.2 | $ | 514.2 | |||||||||||||
Earnings (losses) from discontinued operations, net of tax |
(32.4 | ) | | | | (32.4 | ) | | (32.4 | ) | ||||||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 293.9 | $ | 70.0 | $ | (17.2 | ) | $ | 10.9 | $ | 357.6 | $ | 124.2 | $ | 481.8 | |||||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.89 | $ | 0.19 | $ | (0.05 | ) | $ | 0.03 | $ | 1.06 | $ | 0.34 | $ | 1.40 | |||||||||||||
Weighted average shares outstanding diluted |
367.7 | 367.7 | 367.7 | 367.7 | 367.7 | 367.7 | 367.7 | |||||||||||||||||||||
Effective tax rate |
37 | % | 37 | % | ||||||||||||||||||||||||
Supplemental Information: |
||||||||||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 455.1 | (197.2 | ) | $ | 257.9 | ||||||||||||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 34.9 | ||||||||||||||||||||||||||
Stock acceleration charges |
5.8 | |||||||||||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 40.7 | ||||||||||||||||||||||||||
* | Amounts may not sum due to rounding. |
See accompanying notes.
10
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
GAAP | M&A | Non-GAAP | ||||||||||||||||||
Three Months | Restructuring | Three Months | ||||||||||||||||||
Ended | And | Purchase | Ended | |||||||||||||||||
September 30, 2009 | Integration | Price | September 30, 2009 | |||||||||||||||||
(Unaudited) | Costs (1) | Subtotal | Amortization (4) | (Unaudited) | ||||||||||||||||
Processing and services revenue |
$ | 828.7 | $ | | $ | 828.7 | $ | | $ | 828.7 | ||||||||||
Cost of revenues |
605.4 | | 605.4 | (28.9 | ) | 576.5 | ||||||||||||||
Gross profit |
223.3 | | 223.3 | 28.9 | 252.2 | |||||||||||||||
Selling, general and administrative |
89.4 | (5.3 | ) | 84.1 | | 84.1 | ||||||||||||||
Operating income |
133.9 | 5.3 | 139.2 | 28.9 | 168.1 | |||||||||||||||
Other income (expense): |
||||||||||||||||||||
Interest income (expense), net |
(31.8 | ) | | (31.8 | ) | | (31.8 | ) | ||||||||||||
Other income, net |
1.4 | | 1.4 | | 1.4 | |||||||||||||||
Total other income (expense) |
(30.4 | ) | | (30.4 | ) | | (30.4 | ) | ||||||||||||
Earnings from continuing operations before income taxes |
103.5 | 5.3 | 108.8 | 28.9 | 137.7 | |||||||||||||||
Provision for income taxes |
35.5 | 1.8 | 37.3 | 9.8 | 47.1 | |||||||||||||||
Earnings from continuing operations, net of tax |
68.0 | 3.5 | 71.5 | 19.1 | 90.6 | |||||||||||||||
Earnings (losses) from discontinued operations, net of tax (5) |
1.0 | | 1.0 | | 1.0 | |||||||||||||||
Net earnings |
69.0 | 3.5 | 72.5 | 19.1 | 91.6 | |||||||||||||||
Net (earnings) loss attributable to noncontrolling interest |
(1.4 | ) | | (1.4 | ) | | (1.4 | ) | ||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 67.6 | $ | 3.5 | $ | 71.1 | $ | 19.1 | $ | 90.2 | ||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||
Earnings from continuing operations, net of tax |
$ | 66.6 | $ | 3.5 | $ | 70.1 | $ | 19.1 | $ | 89.2 | ||||||||||
Earnings (losses) from discontinued operations, net of tax |
1.0 | | 1.0 | | 1.0 | |||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 67.6 | $ | 3.5 | $ | 71.1 | $ | 19.1 | $ | 90.2 | ||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.34 | $ | 0.02 | $ | 0.36 | $ | 0.10 | $ | 0.46 | ||||||||||
Weighted average shares outstanding diluted |
194.6 | 194.6 | 194.6 | 194.6 | 194.6 | |||||||||||||||
Effective tax rate |
34 | % | 34 | % | ||||||||||||||||
Supplemental Information: |
||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 91.9 | $ | (28.9 | ) | $ | 63.0 | |||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 9.0 | ||||||||||||||||||
Stock acceleration charges |
| |||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 9.0 | ||||||||||||||||||
* | Amounts may not sum due to rounding. |
See accompanying notes.
GAAP results include Metavantes operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.
11
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION UNAUDITED
(in millions, except per share data)
GAAP | M&A | Non-GAAP | ||||||||||||||||||
Nine months | Restructuring | Nine months | ||||||||||||||||||
Ended | And | Purchase | Ended | |||||||||||||||||
September 30, 2009 | Integration | Price | September 30, 2009 | |||||||||||||||||
(Unaudited) | Costs (1) | Subtotal | Amortization (4) | (Unaudited) | ||||||||||||||||
Processing and services revenue |
$ | 2,428.1 | $ | | $ | 2,428.1 | $ | | $ | 2,428.1 | ||||||||||
Cost of revenues |
1,822.2 | | 1,822.2 | (88.0 | ) | 1,734.2 | ||||||||||||||
Gross profit |
605.9 | | 605.9 | 88.0 | 693.9 | |||||||||||||||
Selling, general and administrative |
275.7 | (14.8 | ) | 260.9 | | 260.9 | ||||||||||||||
Operating income |
330.2 | 14.8 | 345.0 | 88.0 | 433.0 | |||||||||||||||
Other income (expense): |
||||||||||||||||||||
Interest income (expense), net |
(94.3 | ) | | (94.3 | ) | | (94.3 | ) | ||||||||||||
Other income, net |
8.0 | | 8.0 | | 8.0 | |||||||||||||||
Total other income (expense) |
(86.3 | ) | | (86.3 | ) | | (86.3 | ) | ||||||||||||
Earnings from continuing operations before income taxes |
243.9 | 14.8 | 258.7 | 88.0 | 346.7 | |||||||||||||||
Provision for income taxes |
83.8 | 5.1 | 88.9 | 30.1 | 119.0 | |||||||||||||||
Earnings from continuing operations, net of tax |
160.1 | 9.7 | 169.8 | 57.9 | 227.7 | |||||||||||||||
Earnings (losses) from discontinued operations, net of tax (5) |
1.2 | | 1.2 | | 1.2 | |||||||||||||||
Net earnings |
161.3 | 9.7 | 171.0 | 57.9 | 228.9 | |||||||||||||||
Net (earnings) loss attributable to noncontrolling interest |
(1.5 | ) | | (1.5 | ) | | (1.5 | ) | ||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 159.8 | $ | 9.7 | $ | 169.5 | $ | 57.9 | $ | 227.4 | ||||||||||
Amounts attributable to FIS common stockholders |
||||||||||||||||||||
Earnings from continuing operations, net of tax |
$ | 158.6 | $ | 9.7 | $ | 168.3 | $ | 57.9 | $ | 226.2 | ||||||||||
Earnings (losses) from discontinued operations, net of tax |
1.2 | | 1.2 | | 1.2 | |||||||||||||||
Net earnings attributable to FIS common stockholders |
$ | 159.8 | $ | 9.7 | $ | 169.5 | $ | 57.9 | $ | 227.4 | ||||||||||
Net earnings per share diluted from continuing operations
attributable to FIS common stockholders* |
$ | 0.82 | $ | 0.05 | $ | 0.87 | $ | 0.30 | $ | 1.17 | ||||||||||
Weighted average shares outstanding diluted |
193.0 | 193.0 | 193.0 | 193.0 | 193.0 | |||||||||||||||
Effective tax rate |
34 | % | 34 | % | ||||||||||||||||
Supplemental Information: |
||||||||||||||||||||
Depreciation and amortization from continuing operations |
$ | 273.8 | $ | (88.0 | ) | $ | 185.8 | |||||||||||||
Stock compensation expense from continuing operations,
excluding acceleration charges |
$ | 27.3 | ||||||||||||||||||
Stock acceleration charges |
| |||||||||||||||||||
Total stock compensation expense from continuing operations |
$ | 27.3 | ||||||||||||||||||
* | Amounts may not sum due to rounding. |
See accompanying notes.
GAAP results include Metavantes operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.
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Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliation for the Three and Nine
Months ended September 30, 2010 and 2009
Months ended September 30, 2010 and 2009
The adjustments are as follows:
(1) | This column represents (1) charges for restructuring and integration costs relating to merger and acquisition activities and (2) costs associated with the 2010 leveraged recapitalization plan. For the three and nine months ended September 30, 2010 and 2009, the adjustments to Selling, general and administrative expenses primarily represent incremental transaction costs incurred by the Company related to the acquisition of Metavante Technologies, Inc., completed on October 1, 2009. The adjustments to Other income (expense), net represent certain costs associated with the leveraged recapitalization, the write-off of certain previously deferred debt issue costs associated with the amended and extended debt facility and the write-off of unamortized discount associated with the portion of the Metavante debt that was paid with the proceeds thereof. | |
(2) | In August 2010, all documents required to affect a mutually agreeable exit for Banco Santander from the Brazil card processing Joint Venture were executed. Banco Santander paid a termination fee of approximately $83.3 million directly to FIS, which is included in Processing and Services Revenues for the three months ended September 30, 2010. Notes payable representing additional consideration which was to be paid to the banks upon migration of their card portfolios were forgiven and reduced by $19.4 million, representing Banco Santanders proportionate interest therein. Certain capitalized software development costs exclusively for use in processing Banco Santander card activity with a net unamortized balance of $14.6 million were written off. In addition, $140.3 million, representing the portion of the unamortized contract intangible asset recorded at the initiation of the Brazilian Venture that was attributable to Banco Santander was deemed impaired as a result of Santanders exit and charged to amortization expense. | |
(3) | This column represents the impact of the purchase accounting adjustment to reduce Metavantes deferred revenues to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by Metavante but was not recognized due to GAAP purchase accounting requirements. | |
(4) | This column represents purchase price amortization expense on intangibles assets acquired through various Company acquisitions. | |
(5) | During the 2010 and 2009 periods certain operations are classified as discontinued operations. Reporting for discontinued operations classifies revenues and expenses as one line item net of tax in the statement of operations. During the third quarter 2010, we determined that we will pursue strategic alternatives for our item processing business in Brazil. In January 2010, we closed on the sale of ClearPar. The table below outlines the components of discontinued operations for the periods presented, net of tax: |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Impairment charges Brazil item processing |
$ | (16.6 | ) | $ | | $ | (16.6 | ) | $ | | ||||||
Brazil item processing operations |
(7.3 | ) | (1.2 | ) | (14.5 | ) | (3.2 | ) | ||||||||
ClearPar and other |
| 2.2 | (1.3 | ) | 4.4 | |||||||||||
Total discontinued operations |
$ | (23.9 | ) | $ | 1.0 | $ | (32.4 | ) | $ | 1.2 | ||||||
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