[July 29, 2014] |
|
FIS Reports Second Quarter 2014 Results
JACKSONVILLE, Fla. --(Business Wire)--
FIS™
(NYSE:FIS), the world's largest provider of banking and payments
technology solutions, and a global leader in consulting and outsourcing
solutions, today announced second quarter revenue increased 6 percent to
$1.60 billion compared to $1.51 billion a year earlier. GAAP net
earnings from continuing operations attributable to common stockholders
increased to $180 million, or $0.62 per diluted share, from $92 million,
or $0.31 per diluted share in the prior year quarter.
Non-GAAP adjusted net earnings from continuing operations attributable
to common stockholders increased to $217 million in the second quarter
2014 from $210 million in the prior year quarter and adjusted net
earnings per diluted share increased 6 percent to $0.75 from $0.71 in
the second quarter 2013. Second quarter 2014 non-GAAP adjusted net
earnings from continuing operations excludes acquisition-related
purchase amortization of $0.13 per share and the prior year quarter
excludes debt refinancing and other costs of $0.26 per diluted share and
acquisition-related purchase amortization of $0.14 per diluted share.
Second quarter 2014 revenue increased 5 percent on an organic basis,
which excludes the impact of acquisitions and changes in foreign
currency, from the prior year quarter. Adjusted EBITDA increased to $466
million in the second quarter 2014, up 3 percent from $451 million in
the prior year period. Adjusted EBITDA margin was 29.2 percent compared
to 29.8 percent in the prior year quarter, primarily reflecting a change
in revenue mix and increased investment in the global financial
institutions market.
"FIS achieved strong results in the second quarter underscored by growth
in organic revenue and earnings consistent with our 2014 outlook," said
Frank Martire, chairman and chief executive officer of FIS. "This
performance reflects our success in delivering strategic value to our
clients with an unmatched value proposition of integrated technology,
services and consulting solutions on a global scale. We are excited
about the future of our company and remain focused on optimizing our
business to drive long-term, profitable growth."
For the six months ended June 30, 2014, GAAP revenue increased 4 percent
to $3.12 billion, from $2.99 billion in the prior year period. GAAP net
earnings from continuing operations attributable to common stockholders
increased to $336 million, or $1.16 per diluted share, from $241
million, or $0.82 per diluted share, in the prior year period.
Non-GAAP adjusted net earnings from continuing operations attributable
to common stockholders increased to $417 million in the first half of
2014, up 6 percent from $393 million in the prior year period. Adjusted
net earnings per diluted share increased 8 percent to $1.43 from $1.33
in the first half of 2013. First half 2014 non-GAAP adjusted net
earnings from continuing operations excludes acquisition-related
purchase amortization of $0.26 per share and includes $0.02 per share
related to contract settlement revenue, and the 2013 period excludes
debt refinancing and other costs of $0.26 per diluted share,
acquisition-related purchase amortization of $0.27 per diluted share and
excludes a gain related to the acquisition of mFoundry of $0.02 per
diluted share. Adjusted EBITDA for the six months increased 4 percent to
$914 million from $880 million in the prior year period. Adjusted EBITDA
margin was 29.2 percent compared to 29.4 percent 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 2014 results by segment:
Revenue increased 7 percent to $629 million, from $587 million in the
second quarter 2013 and increased 6 percent on an organic basis, driven
by growth in consulting, professional services and digital banking.
Contractual fees related to a client conversion also contributed to the
results. Adjusted EBITDA increased 8 percent to $249 million from $231
million in the second quarter 2013, while adjusted EBITDA margin was
39.6 percent compared to 39.4 percent a year earlier.
Revenue was $624 million compared to $623 million in the second quarter
2013. Growth in network solutions, bill payment services and image and
output solutions was offset primarily by lower termination fees.
Adjusted EBITDA was $253 million compared to $263 million in the second
quarter of 2013, primarily reflecting lower termination fees and revenue
mix. Adjusted EBITDA margin was 40.6 percent compared to 42.2 percent a
year earlier.
Revenue increased 14 percent to $347 million from $304 million in the
second quarter 2013 and increased 12 percent on an organic basis.
Currency impact was immaterial in the quarter. The increase in revenue
reflects growth across all major regions. Adjusted EBITDA increased 11
percent to $73 million from $66 million in the second quarter of 2013.
Adjusted EBITDA margin was 21.1 percent compared to 21.8 percent a year
earlier, primarily reflecting increased investment in the global
financial institutions market.
Corporate costs totaled $109 million in the second quarter 2014,
unchanged from the prior year quarter, reflecting diligent cost
management. Interest expense, net of interest income, decreased to $42
million from $49 million in the second quarter 2013, reflecting lower
debt costs resulting from debt refinancing in the second quarter of
2013. The effective tax rate was 30.2 percent in the second quarter of
2014 compared to 30.0 percent in the second quarter of 2013, reflecting
the favorable resolution of certain tax matters in both periods.
Balance Sheet and Cash Flow
Cash and cash equivalents totaled $794 million as of June 30, 2014
compared to $548 million as of year-end 2013. Debt outstanding totaled
$4.9 billion compared to $4.5 billion as of December 31, 2013.
Net cash provided by operations increased to $256 million in the second
quarter of 2014 from $157 million in the prior year quarter. Adjusted
cash flow from operations was $245 million in the second quarter of 2014
compared to $199 million for the prior year quarter. Capital
expenditures totaled $97 million compared to $83 million in the second
quarter 2013. Free cash flow increased to $149 million for second
quarter of 2014 from $115 million in the 2013 quarter.
FIS repurchased 2.8 million common shares at a total cost of $151
million in the second quarter 2014 and 6.0 million shares at a total
cost of $326 million in the first six months of 2014. Approximately
$1,674 million remained under the existing share repurchase
authorization as of June 30, 2014. The company paid shareholder
dividends of $68 million in the second quarter 2014 and $137 million in
the first six months of 2014.
2014 Outlook
FIS reiterated its full year 2014 outlook as follows:
-
Organic revenue growth of 4.5 to 6.5 percent
-
EBITDA, as adjusted, growth of 4.5 to 6.5 percent
-
EPS from continuing operations of $3.05 to $3.16, as adjusted, an
increase of 8 to 12 percent
-
Free cash flow is expected to approximate adjusted net earnings
Webcast
FIS will host a webcast on July 29, 2014, to discuss second quarter 2014
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 12, 2014 by dialing 800.475.6701 (U.S.) or
320.365.3844 (International). The access code is 331212. 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 organic revenue, adjusted revenue,
EBITDA, adjusted EBITDA and adjusted EBITDA margin, adjusted cash flow
from operations, adjusted net earnings (including per share amounts) and
free cash flow.
Organic revenue includes reported revenue (adjusted revenue for 2014)
plus pre-acquisition revenue for companies acquired during the
applicable reporting periods. Organic revenue excludes the impact of
foreign currency fluctuation in 2014.
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 (2014 comparative data) includes the contract cash
settlement revenue.
Adjusted EBITDA (2013 comparative data) excludes adjustments related to
the 2010 acquisition of Capco.
Adjusted net earnings (2014 comparative data) excludes the after-tax
impact of acquisition-related amortization and includes the after-tax
impact of adjusted revenue.
Adjusted net earnings (2013 comparative data) excludes the after-tax
impact of acquisition related amortization, a net benefit related to a
gain on the mFoundry acquisition, debt issuance and refinancing costs
and adjustments related to the Capco acquisition.
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 (2014 comparative data) is GAAP cash
flow from operations as adjusted for the net change in settlement assets
and obligations and certain payments for contingent purchase price and
incentive compensation programs associated with the 2010 acquisition of
Capco.
Adjusted cash flow from operations (2013 comparative data) is GAAP cash
flow from operations as adjusted for the net change in settlement assets
and obligations and excludes the premium paid related to the early
redemption of senior notes.
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 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.
About
FIS
FIS is the world's largest provider of banking and payments technology
solutions, and a global leader in consulting and outsourcing solutions.
With a long history deeply rooted in the financial services sector, FIS
serves more than 14,000 institutions in over 110 countries.
Headquartered in Jacksonville, Fla., FIS employs more than 39,000 people
worldwide and holds leadership positions in payment processing and
banking solutions, providing software, services and outsourcing of the
technology that drives financial institutions. First in financial
technology, FIS tops the annual FinTech 100 list, is 434 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
future revenue, organic revenue, earnings before interest, taxes,
depreciation and amortization ("EBITDA"), earnings per share and margin
expansion, 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;
-
the effect of legislative initiatives or proposals, statutory changes,
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, 2013 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.
Fidelity National Information Services, Inc.
|
Earnings Release Supplemental Financial Information
|
July 29, 2014
|
|
Exhibit A
|
|
|
|
|
Consolidated Statements of Earnings - Unaudited for the three and
six months ended June 30, 2014 and 2013
|
|
|
|
|
|
|
Exhibit B
|
|
|
|
|
Consolidated Balance Sheets - Unaudited as of June 30, 2014 and
December 31, 2013
|
|
|
|
|
|
|
Exhibit C
|
|
|
|
|
Consolidated Statements of Cash Flows - Unaudited for the six months
ended June 30, 2014 and 2013
|
|
|
|
|
|
|
Exhibit D
|
|
|
|
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Supplemental Non-GAAP Financial Information - Unaudited for the
three and six months ended June 30, 2014 and 2013
|
|
|
|
|
|
|
Exhibit E
|
|
|
|
|
Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the
three and six months ended June 30, 2014 and 2013
|
|
|
|
|
|
|
|
|
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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,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Processing and services revenues
|
|
$
|
1,599.1
|
|
|
$
|
1,512.8
|
|
|
$
|
3,119.4
|
|
|
$
|
2,990.1
|
|
Cost of revenues
|
|
1,092.8
|
|
|
1,031.5
|
|
|
2,140.4
|
|
|
2,040.9
|
|
Gross profit
|
|
506.3
|
|
|
481.3
|
|
|
979.0
|
|
|
949.2
|
|
Selling, general and administrative expenses
|
|
196.6
|
|
|
232.6
|
|
|
383.2
|
|
|
424.7
|
|
Operating income
|
|
309.7
|
|
|
248.7
|
|
|
595.8
|
|
|
524.5
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
(41.9
|
)
|
|
(49.4
|
)
|
|
(83.0
|
)
|
|
(101.1
|
)
|
Other income (expense), net
|
|
(1.2
|
)
|
|
(61.9
|
)
|
|
(1.7
|
)
|
|
(56.8
|
)
|
Total other income (expense), net
|
|
(43.1
|
)
|
|
(111.3
|
)
|
|
(84.7
|
)
|
|
(157.9
|
)
|
Earnings from continuing operations before income taxes
|
|
266.6
|
|
|
137.4
|
|
|
511.1
|
|
|
366.6
|
|
Provision for income taxes
|
|
80.4
|
|
|
41.2
|
|
|
161.6
|
|
|
116.6
|
|
Earnings from continuing operations, net of tax
|
|
186.2
|
|
|
96.2
|
|
|
349.5
|
|
|
250.0
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
(0.9
|
)
|
|
12.8
|
|
|
(3.1
|
)
|
|
8.4
|
|
Net earnings
|
|
185.3
|
|
|
109.0
|
|
|
346.4
|
|
|
258.4
|
|
Net earnings attributable to noncontrolling interest
|
|
(6.5
|
)
|
|
(4.2
|
)
|
|
(13.1
|
)
|
|
(9.5
|
)
|
Net earnings attributable to FIS common stockholders
|
|
$
|
178.8
|
|
|
$
|
104.8
|
|
|
$
|
333.3
|
|
|
$
|
248.9
|
|
Net earnings per share-basic from continuing operations attributable
to FIS common stockholders
|
|
$
|
0.63
|
|
|
$
|
0.32
|
|
|
$
|
1.17
|
|
|
$
|
0.83
|
|
Net earnings (loss) per share-basic from discontinued operations
attributable to FIS common stockholders
|
|
-
|
|
|
0.04
|
|
|
(0.01
|
)
|
|
0.03
|
|
Net earnings per share-basic attributable to FIS common stockholders
*
|
|
$
|
0.63
|
|
|
$
|
0.36
|
|
|
$
|
1.16
|
|
|
$
|
0.86
|
|
Weighted average shares outstanding-basic
|
|
285.5
|
|
|
289.9
|
|
|
286.7
|
|
|
290.5
|
|
Net earnings per share-diluted from continuing operations
attributable to FIS common stockholders
|
|
$
|
0.62
|
|
|
$
|
0.31
|
|
|
$
|
1.16
|
|
|
$
|
0.82
|
|
Net earnings (loss) per share-diluted from discontinued operations
attributable to FIS common stockholders
|
|
-
|
|
|
0.04
|
|
|
(0.01
|
)
|
|
0.03
|
|
Net earnings per share-diluted attributable to FIS common
stockholders *
|
|
$
|
0.62
|
|
|
$
|
0.36
|
|
|
$
|
1.15
|
|
|
$
|
0.84
|
|
Weighted average shares outstanding-diluted
|
|
289.2
|
|
|
294.3
|
|
|
290.5
|
|
|
294.8
|
|
Amounts attributable to FIS common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations, net of tax
|
|
$
|
179.7
|
|
|
$
|
92.0
|
|
|
$
|
336.4
|
|
|
$
|
240.5
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
(0.9
|
)
|
|
12.8
|
|
|
(3.1
|
)
|
|
8.4
|
|
Net earnings attributable to FIS common stockholders
|
|
$
|
178.8
|
|
|
$
|
104.8
|
|
|
$
|
333.3
|
|
|
$
|
248.9
|
|
* Amounts may not sum due to rounding.
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,
|
|
|
2014
|
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
793.7
|
|
|
$
|
547.5
|
|
Settlement deposits
|
|
439.5
|
|
|
327.4
|
|
Trade receivables, net
|
|
1,018.2
|
|
|
987.9
|
|
Settlement receivables
|
|
262.4
|
|
|
178.2
|
|
Other receivables
|
|
41.2
|
|
|
62.1
|
|
Due from Brazilian venture partner
|
|
38.2
|
|
|
35.8
|
|
Prepaid expenses and other current assets
|
|
167.7
|
|
|
154.1
|
|
Deferred income taxes
|
|
65.7
|
|
|
58.9
|
|
Assets held for sale
|
|
8.3
|
|
|
-
|
|
Total current assets
|
|
2,834.9
|
|
|
2,351.9
|
|
Property and equipment, net
|
|
459.0
|
|
|
439.0
|
|
Goodwill
|
|
8,517.7
|
|
|
8,500.0
|
|
Intangible assets, net
|
|
1,246.5
|
|
|
1,339.3
|
|
Computer software, net
|
|
869.7
|
|
|
856.5
|
|
Deferred contract costs, net
|
|
212.2
|
|
|
206.8
|
|
Other noncurrent assets
|
|
300.8
|
|
|
266.6
|
|
Total assets
|
|
$
|
14,440.8
|
|
|
$
|
13,960.1
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
648.5
|
|
|
$
|
768.0
|
|
Settlement payables
|
|
730.7
|
|
|
518.6
|
|
Deferred revenues
|
|
276.0
|
|
|
243.6
|
|
Current portion of long-term debt
|
|
23.0
|
|
|
128.8
|
|
Due to Brazilian venture partner
|
|
20.1
|
|
|
13.7
|
|
Liabilities held for sale
|
|
3.0
|
|
|
-
|
|
Total current liabilities
|
|
1,701.3
|
|
|
1,672.7
|
|
Long-term debt, excluding current portion
|
|
4,900.5
|
|
|
4,339.8
|
|
Deferred income taxes
|
|
816.4
|
|
|
823.6
|
|
Due to Brazilian venture partner
|
|
32.7
|
|
|
34.5
|
|
Deferred revenues
|
|
28.2
|
|
|
27.2
|
|
Other long-term liabilities
|
|
261.6
|
|
|
325.0
|
|
Total liabilities
|
|
7,740.7
|
|
|
7,222.8
|
|
Equity:
|
|
|
|
|
|
|
FIS stockholders' equity:
|
|
|
|
|
|
|
Preferred stock $0.01 par value
|
|
-
|
|
|
-
|
|
Common stock $0.01 par value
|
|
3.9
|
|
|
3.9
|
|
Additional paid in capital
|
|
7,286.5
|
|
|
7,247.6
|
|
Retained earnings
|
|
2,538.0
|
|
|
2,341.9
|
|
Accumulated other comprehensive earnings (loss)
|
|
12.9
|
|
|
(9.9
|
)
|
Treasury stock $0.01 par value
|
|
(3,319.2
|
)
|
|
(3,003.0
|
)
|
Total FIS stockholders' equity
|
|
6,522.1
|
|
|
6,580.5
|
|
Noncontrolling interest
|
|
178.0
|
|
|
156.8
|
|
Total equity
|
|
6,700.1
|
|
|
6,737.3
|
|
Total liabilities and equity
|
|
$
|
14,440.8
|
|
|
$
|
13,960.1
|
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit C
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
2014
|
|
|
2013
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net earnings
|
|
$
|
346.4
|
|
|
$
|
258.4
|
|
Adjustment to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
309.1
|
|
|
305.5
|
|
Amortization of debt issue costs
|
|
6.7
|
|
|
14.6
|
|
Gain on sale of assets
|
|
-
|
|
|
(26.8
|
)
|
Gain on mFoundry
|
|
-
|
|
|
(9.2
|
)
|
Stock-based compensation
|
|
26.6
|
|
|
26.4
|
|
Deferred income taxes
|
|
(19.0
|
)
|
|
(24.7
|
)
|
Excess income tax benefit from exercise of stock options
|
|
(10.1
|
)
|
|
(14.5
|
)
|
Other operating activities, net
|
|
(1.9
|
)
|
|
1.7
|
|
Net changes in assets and liabilities, net of effects from
acquisitions and foreign currency:
|
|
|
|
|
|
|
Trade receivables
|
|
(22.4
|
)
|
|
(26.1
|
)
|
Settlement activity
|
|
15.8
|
|
|
(3.6
|
)
|
Prepaid expenses and other assets
|
|
(35.7
|
)
|
|
(60.7
|
)
|
Deferred contract costs
|
|
(40.4
|
)
|
|
(37.3
|
)
|
Deferred revenue
|
|
30.9
|
|
|
(26.0
|
)
|
Accounts payable, accrued liabilities and other liabilities
|
|
(126.9
|
)
|
|
(12.9
|
)
|
Net cash provided by operating activities
|
|
479.1
|
|
|
364.8
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Additions to property and equipment
|
|
(77.3
|
)
|
|
(59.5
|
)
|
Additions to computer software
|
|
(109.3
|
)
|
|
(97.5
|
)
|
Proceeds from sale of assets
|
|
-
|
|
|
26.8
|
|
Acquisitions, net of cash acquired and equity investments
|
|
(29.0
|
)
|
|
(130.1
|
)
|
Other investing activities, net
|
|
9.3
|
|
|
(22.8
|
)
|
Net cash used in investing activities
|
|
(206.3
|
)
|
|
(283.1
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Borrowings
|
|
4,430.1
|
|
|
7,151.6
|
|
Repayment of borrowings and capital lease obligations
|
|
(3,976.6
|
)
|
|
(6,776.0
|
)
|
Debt issuance costs
|
|
(6.6
|
)
|
|
(17.0
|
)
|
Excess income tax benefit from exercise of stock options
|
|
10.1
|
|
|
14.5
|
|
Proceeds from exercise of stock options
|
|
15.5
|
|
|
72.9
|
|
Treasury stock activity
|
|
(355.6
|
)
|
|
(230.8
|
)
|
Dividends paid
|
|
(137.9
|
)
|
|
(127.9
|
)
|
Other financing activities, net
|
|
(18.3
|
)
|
|
(11.8
|
)
|
Net cash (used in) provided by financing activities
|
|
(39.3
|
)
|
|
75.5
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash
|
|
12.7
|
|
|
(21.7
|
)
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
246.2
|
|
|
135.5
|
|
Cash and cash equivalents, at beginning of period
|
|
547.5
|
|
|
517.6
|
|
Cash and cash equivalents, at end of period
|
|
$
|
793.7
|
|
|
$
|
653.1
|
|
|
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION - UNAUDITED
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit D
|
|
|
|
Three months ended June 30, 2014
|
|
|
Financial
Solutions
|
|
Payment
Solutions
|
|
International
Solutions
|
|
Corporate
and Other
|
|
Consolidated
|
Processing and services revenue
|
|
$
|
629.0
|
|
|
$
|
623.6
|
|
|
$
|
346.8
|
|
|
$
|
(0.3
|
)
|
|
$
|
1,599.1
|
|
Operating income (loss)
|
|
$
|
208.0
|
|
|
$
|
232.9
|
|
|
$
|
51.7
|
|
|
$
|
(182.9
|
)
|
|
$
|
309.7
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase price amortization
|
|
-
|
|
|
-
|
|
|
-
|
|
|
54.0
|
|
|
54.0
|
|
Non-GAAP operating income (loss)
|
|
208.0
|
|
|
232.9
|
|
|
51.7
|
|
|
(128.9
|
)
|
|
363.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization from continuing operations
|
|
41.0
|
|
|
20.5
|
|
|
21.5
|
|
|
19.5
|
|
|
102.5
|
|
Adjusted EBITDA
|
|
$
|
249.0
|
|
|
$
|
253.4
|
|
|
$
|
73.2
|
|
|
$
|
(109.4
|
)
|
|
$
|
466.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
33.1
|
%
|
|
37.3
|
%
|
|
14.9
|
%
|
|
N/M
|
|
22.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
39.6
|
%
|
|
40.6
|
%
|
|
21.1
|
%
|
|
N/M
|
|
29.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2013
|
|
|
Financial
Solutions
|
|
Payment
Solutions
|
|
International
Solutions
|
|
Corporate
and Other
|
|
Consolidated
|
Processing and services revenue
|
|
$
|
587.0
|
|
|
$
|
623.1
|
|
|
$
|
303.8
|
|
|
$
|
(1.1
|
)
|
|
$
|
1,512.8
|
|
Operating income (loss)
|
|
$
|
190.8
|
|
|
$
|
242.8
|
|
|
$
|
47.4
|
|
|
$
|
(232.3
|
)
|
|
$
|
248.7
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capco acquisition adjustment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
50.2
|
|
|
50.2
|
|
Purchase price amortization
|
|
-
|
|
|
-
|
|
|
-
|
|
|
57.3
|
|
|
57.3
|
|
Non-GAAP operating income (loss)
|
|
190.8
|
|
|
242.8
|
|
|
47.4
|
|
|
(124.8
|
)
|
|
356.2
|
|
Depreciation and amortization from continuing operations
|
|
40.4
|
|
|
20.1
|
|
|
18.7
|
|
|
15.8
|
|
|
95.0
|
|
Adjusted EBITDA
|
|
$
|
231.2
|
|
|
$
|
262.9
|
|
|
$
|
66.1
|
|
|
$
|
(109.0
|
)
|
|
$
|
451.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
32.5
|
%
|
|
39.0
|
%
|
|
15.6
|
%
|
|
N/M
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
39.4
|
%
|
|
42.2
|
%
|
|
21.8
|
%
|
|
N/M
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue growth from prior year period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2014
|
|
7.2
|
%
|
|
0.1
|
%
|
|
14.2
|
%
|
|
N/M
|
|
5.7
|
%
|
|
|
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION - UNAUDITED
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit D (continued)
|
|
|
|
Six months ended June 30, 2014
|
|
|
Financial
Solutions
|
|
Payment
Solutions
|
|
International
Solutions
|
|
Corporate
and Other
|
|
Consolidated
|
Processing and services revenue
|
|
$
|
1,215.8
|
|
|
$
|
1,243.1
|
|
|
$
|
661.2
|
|
|
$
|
(0.7
|
)
|
|
$
|
3,119.4
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract settlement
|
|
-
|
|
|
9.0
|
|
|
-
|
|
|
-
|
|
|
9.0
|
|
Adjusted processing and services revenue
|
|
$
|
1,215.8
|
|
|
$
|
1,252.1
|
|
|
$
|
661.2
|
|
|
$
|
(0.7
|
)
|
|
$
|
3,128.4
|
|
Operating income (loss)
|
|
$
|
395.0
|
|
|
$
|
468.4
|
|
|
$
|
93.5
|
|
|
$
|
(361.1
|
)
|
|
$
|
595.8
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract settlement
|
|
-
|
|
|
9.0
|
|
|
-
|
|
|
-
|
|
|
9.0
|
|
Purchase price amortization
|
|
-
|
|
|
-
|
|
|
0.1
|
|
|
108.8
|
|
|
108.9
|
|
Non-GAAP operating income (loss)
|
|
395.0
|
|
|
477.4
|
|
|
93.6
|
|
|
(252.3
|
)
|
|
713.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization from continuing operations
|
|
80.9
|
|
|
40.4
|
|
|
41.0
|
|
|
37.9
|
|
|
200.2
|
|
Adjusted EBITDA
|
|
$
|
475.9
|
|
|
$
|
517.8
|
|
|
$
|
134.6
|
|
|
$
|
(214.4
|
)
|
|
$
|
913.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
32.5
|
%
|
|
38.1
|
%
|
|
14.2
|
%
|
|
N/M
|
|
22.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
39.1
|
%
|
|
41.4
|
%
|
|
20.4
|
%
|
|
N/M
|
|
29.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2013
|
|
|
Financial
Solutions
|
|
Payment
Solutions
|
|
International
Solutions
|
|
Corporate
and Other
|
|
Consolidated
|
Processing and services revenue
|
|
$
|
1,162.3
|
|
|
$
|
1,234.9
|
|
|
$
|
594.7
|
|
|
$
|
(1.8
|
)
|
|
$
|
2,990.1
|
|
Operating income (loss)
|
|
$
|
379.2
|
|
|
$
|
481.3
|
|
|
$
|
88.4
|
|
|
$
|
(424.4
|
)
|
|
$
|
524.5
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capco acquisition adjustment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
50.2
|
|
|
50.2
|
|
Purchase price amortization
|
|
-
|
|
|
-
|
|
|
0.1
|
|
|
117.5
|
|
|
117.6
|
|
Non-GAAP operating income (loss)
|
|
379.2
|
|
|
481.3
|
|
|
88.5
|
|
|
(256.7
|
)
|
|
692.3
|
|
Depreciation and amortization from continuing operations
|
|
79.6
|
|
|
39.9
|
|
|
37.4
|
|
|
31.0
|
|
|
187.9
|
|
Adjusted EBITDA
|
|
$
|
458.8
|
|
|
$
|
521.2
|
|
|
$
|
125.9
|
|
|
$
|
(225.7
|
)
|
|
$
|
880.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
32.6
|
%
|
|
39.0
|
%
|
|
14.9
|
%
|
|
N/M
|
|
23.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
39.5
|
%
|
|
42.2
|
%
|
|
21.2
|
%
|
|
N/M
|
|
29.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue growth from prior year period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2014
|
|
4.6
|
%
|
|
1.4
|
%
|
|
11.2
|
%
|
|
N/M
|
|
4.6
|
%
|
|
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
SUPPLEMENTAL NON-GAAP ORGANIC REVENUE MEASURES - UNAUDITED
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit D (continued)
|
|
|
|
Three months ended June 30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Constant
|
|
|
|
|
|
|
|
Adjusted
|
|
Organic
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
In Year
|
|
Base
|
|
Revenue
|
|
|
Revenue
|
|
FX
|
|
Revenue
|
|
Revenue
|
|
Acquisitions
|
|
Revenue
|
|
Growth
|
Financial Solutions
|
|
$
|
629.0
|
|
|
$
|
0.6
|
|
|
$
|
629.6
|
|
|
$
|
587.0
|
|
|
$
|
4.5
|
|
|
$
|
591.5
|
|
|
6.4
|
%
|
Payment Solutions
|
|
623.6
|
|
|
0.4
|
|
|
624.0
|
|
|
623.1
|
|
|
-
|
|
|
623.1
|
|
|
0.1
|
%
|
International Solutions
|
|
346.8
|
|
|
0.1
|
|
|
346.9
|
|
|
303.8
|
|
|
5.8
|
|
|
309.6
|
|
|
12.0
|
%
|
Corporate and Other
|
|
(0.3
|
)
|
|
-
|
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
-
|
|
|
(1.1
|
)
|
|
N/M
|
Total processing and services
revenue
|
|
$
|
1,599.1
|
|
|
$
|
1.1
|
|
|
$
|
1,600.2
|
|
|
$
|
1,512.8
|
|
|
$
|
10.3
|
|
|
$
|
1,523.1
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Constant
|
|
|
|
|
|
|
|
Adjusted
|
|
Organic
|
|
|
|
|
|
|
|
|
Currency
|
|
|
|
|
In Year
|
|
Base
|
|
Revenue
|
|
|
Revenue (1)
|
|
FX
|
|
Revenue
|
|
Revenue
|
|
Acquisitions
|
|
Revenue
|
|
Growth
|
Financial Solutions
|
|
$
|
1,215.8
|
|
|
$
|
1.8
|
|
|
$
|
1,217.6
|
|
|
$
|
1,162.3
|
|
|
$
|
8.3
|
|
|
$
|
1,170.6
|
|
|
4.0
|
%
|
Payment Solutions
|
|
1,252.1
|
|
|
0.9
|
|
|
1,253.0
|
|
|
1,234.9
|
|
|
-
|
|
|
1,234.9
|
|
|
1.5
|
%
|
International Solutions
|
|
661.2
|
|
|
14.1
|
|
|
675.3
|
|
|
594.7
|
|
|
11.6
|
|
|
606.3
|
|
|
11.4
|
%
|
Corporate and Other
|
|
(0.7
|
)
|
|
-
|
|
|
(0.7
|
)
|
|
(1.8
|
)
|
|
-
|
|
|
(1.8
|
)
|
|
N/M
|
Total processing and services
revenue
|
|
$
|
3,128.4
|
|
|
$
|
16.8
|
|
|
$
|
3,145.2
|
|
|
$
|
2,990.1
|
|
|
$
|
19.9
|
|
|
$
|
3,010.0
|
|
|
4.5
|
%
|
|
(1) As adjusted. See note (1) for exhibit E.
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, 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
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2013
|
|
June 30, 2013
|
Net cash provided by operating activities
|
|
$
|
157.3
|
|
|
$
|
364.8
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
Settlement activity
|
|
(10.3
|
)
|
|
3.6
|
|
Bond premium payment (2)
|
|
51.6
|
|
|
51.6
|
|
Adjusted cash flows from operations
|
|
198.6
|
|
|
420.0
|
|
Capital expenditures
|
|
(83.3
|
)
|
|
(157.0
|
)
|
Free cash flow
|
|
$
|
115.3
|
|
|
$
|
263.0
|
|
|
(1) Free cash flow for the three and six months ended June 30, 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) Free cash flow for the three and six months ended June 30, 2013 is
adjusted for the one time bond premium payment on our 2017 senior notes
that were redeemed in May 2013.
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,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations attributable to FIS
|
|
$
|
179.7
|
|
|
$
|
92.0
|
|
|
$
|
336.4
|
|
|
$
|
240.5
|
Plus provision for income taxes
|
|
80.4
|
|
|
41.2
|
|
|
161.6
|
|
|
116.6
|
Interest expense, net
|
|
41.9
|
|
|
49.4
|
|
|
83.0
|
|
|
101.1
|
Other, net
|
|
7.7
|
|
|
66.1
|
|
|
14.8
|
|
|
66.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
309.7
|
|
|
248.7
|
|
|
595.8
|
|
|
524.5
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Contract settlement
|
|
-
|
|
|
-
|
|
|
9.0
|
|
|
-
|
Capco acquisition adjustment
|
|
-
|
|
|
50.2
|
|
|
-
|
|
|
50.2
|
Purchase price amortization
|
|
54.0
|
|
|
57.3
|
|
|
108.9
|
|
|
117.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
363.7
|
|
|
356.2
|
|
|
713.7
|
|
|
692.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization from continuing operations
|
|
102.5
|
|
|
95.0
|
|
|
200.2
|
|
|
187.9
|
Adjusted EBITDA
|
|
$
|
466.2
|
|
|
$
|
451.2
|
|
|
$
|
913.9
|
|
|
$
|
880.2
|
|
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
|
|
1,092.8
|
|
|
(54.0
|
)
|
|
1,038.8
|
|
Gross profit
|
|
506.3
|
|
|
54.0
|
|
|
560.3
|
|
Selling, general and administrative
|
|
196.6
|
|
|
-
|
|
|
196.6
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
Exhibit E (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
|
|
|
|
|
|
|
|
|
Contract
|
|
|
|
|
Price
|
|
|
|
|
|
GAAP
|
|
Settlement (1)
|
|
Subtotal
|
|
Amort. (5)
|
|
Non-GAAP
|
Processing and services revenue
|
|
$
|
3,119.4
|
|
|
$
|
9.0
|
|
|
$
|
3,128.4
|
|
|
$
|
-
|
|
|
$
|
3,128.4
|
|
Cost of revenues
|
|
2,140.4
|
|
|
-
|
|
|
2,140.4
|
|
|
(108.9
|
)
|
|
2,031.5
|
|
Gross profit
|
|
979.0
|
|
|
9.0
|
|
|
988.0
|
|
|
108.9
|
|
|
1,096.9
|
|
Selling, general and administrative
|
|
383.2
|
|
|
-
|
|
|
383.2
|
|
|
-
|
|
|
383.2
|
|
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.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit E (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
|
|
Capco
|
|
|
|
|
Purchase
|
|
|
|
|
|
|
|
|
Debt
|
|
Acquisition
|
|
|
|
|
Price
|
|
|
|
|
|
GAAP
|
|
Refinance (2)
|
|
Adjustments (3)
|
|
Subtotal
|
|
Amort. (5)
|
|
Non-GAAP
|
Processing and services revenue
|
|
$
|
1,512.8
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,512.8
|
|
|
$
|
-
|
|
|
$
|
1,512.8
|
|
Cost of revenues
|
|
1,031.5
|
|
|
-
|
|
|
(6.3
|
)
|
|
1,025.2
|
|
|
(57.3
|
)
|
|
967.9
|
|
Gross profit
|
|
481.3
|
|
|
-
|
|
|
6.3
|
|
|
487.6
|
|
|
57.3
|
|
|
544.9
|
|
Selling, general and administrative
|
|
232.6
|
|
|
-
|
|
|
(43.9
|
)
|
|
188.7
|
|
|
-
|
|
|
188.7
|
|
Operating income
|
|
248.7
|
|
|
-
|
|
|
50.2
|
|
|
298.9
|
|
|
57.3
|
|
|
356.2
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
(49.4
|
)
|
|
-
|
|
|
-
|
|
|
(49.4
|
)
|
|
-
|
|
|
(49.4
|
)
|
Other income (expense), net
|
|
(61.9
|
)
|
|
60.9
|
|
|
-
|
|
|
(1.0
|
)
|
|
-
|
|
|
(1.0
|
)
|
Total other income (expense)
|
|
(111.3
|
)
|
|
60.9
|
|
|
-
|
|
|
(50.4
|
)
|
|
-
|
|
|
(50.4
|
)
|
Earnings (loss) from continuing operations before income taxes
|
|
137.4
|
|
|
60.9
|
|
|
50.2
|
|
|
248.5
|
|
|
57.3
|
|
|
305.8
|
|
Provision for income taxes
|
|
41.2
|
|
|
18.3
|
|
|
15.1
|
|
|
74.6
|
|
|
17.2
|
|
|
91.8
|
|
Earnings (loss) from continuing operations, net of tax
|
|
96.2
|
|
|
42.6
|
|
|
35.1
|
|
|
173.9
|
|
|
40.1
|
|
|
214.0
|
|
Earnings (loss) from discontinued operations, net of tax (6)
|
|
12.8
|
|
|
-
|
|
|
-
|
|
|
12.8
|
|
|
-
|
|
|
12.8
|
|
Net earnings (loss)
|
|
109.0
|
|
|
42.6
|
|
|
35.1
|
|
|
186.7
|
|
|
40.1
|
|
|
226.8
|
|
Net (earnings) loss attributable to noncontrolling interest
|
|
(4.2
|
)
|
|
-
|
|
|
-
|
|
|
(4.2
|
)
|
|
-
|
|
|
(4.2
|
)
|
Net earnings (loss) attributable to FIS common stockholders
|
|
$
|
104.8
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
182.5
|
|
|
$
|
40.1
|
|
|
$
|
222.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to FIS common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations, net of tax
|
|
$
|
92.0
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
169.7
|
|
|
$
|
40.1
|
|
|
$
|
209.8
|
|
Earnings (loss) from discontinued operations, net of tax (6)
|
|
12.8
|
|
|
-
|
|
|
-
|
|
|
12.8
|
|
|
-
|
|
|
12.8
|
|
Net earnings (loss) attributable to FIS common stockholders
|
|
$
|
104.8
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
182.5
|
|
|
$
|
40.1
|
|
|
$
|
222.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share - diluted from continuing operations
attributable to FIS common stockholders*
|
|
$
|
0.31
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
$
|
0.58
|
|
|
$
|
0.14
|
|
|
$
|
0.71
|
|
Weighted average shares outstanding - diluted
|
|
294.3
|
|
|
294.3
|
|
|
294.3
|
|
|
294.3
|
|
|
294.3
|
|
|
294.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
$
|
152.3
|
|
|
(57.3
|
)
|
|
$
|
95.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13.2
|
|
|
* Amounts may not sum due to rounding.
See accompanying notes.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
|
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
|
(In millions)
|
Exhibit E (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
|
|
Capco
|
|
|
|
|
|
|
|
Purchase
|
|
|
|
|
|
|
|
|
Debt
|
|
Acquisition
|
|
Gain on
|
|
|
|
|
Price
|
|
|
|
|
|
GAAP
|
|
Refinance (2)
|
|
Adjustments (3)
|
|
mFoundry (4)
|
|
Subtotal
|
|
Amort. (5)
|
|
Non-GAAP
|
Processing and services revenue
|
|
$
|
2,990.1
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2,990.1
|
|
|
$
|
-
|
|
|
$
|
2,990.1
|
|
Cost of revenues
|
|
2,040.9
|
|
|
-
|
|
|
(6.3
|
)
|
|
-
|
|
|
2,034.6
|
|
|
(117.6
|
)
|
|
1,917.0
|
|
Gross profit
|
|
949.2
|
|
|
-
|
|
|
6.3
|
|
|
-
|
|
|
955.5
|
|
|
117.6
|
|
|
1,073.1
|
|
Selling, general and administrative
|
|
424.7
|
|
|
-
|
|
|
(43.9
|
)
|
|
-
|
|
|
380.8
|
|
|
-
|
|
|
380.8
|
|
Operating income
|
|
524.5
|
|
|
-
|
|
|
50.2
|
|
|
-
|
|
|
574.7
|
|
|
117.6
|
|
|
692.3
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
(101.1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(101.1
|
)
|
|
-
|
|
|
(101.1
|
)
|
Other income (expense), net
|
|
(56.8
|
)
|
|
60.9
|
|
|
-
|
|
|
(9.2
|
)
|
|
(5.1
|
)
|
|
-
|
|
|
(5.1
|
)
|
Total other income (expense)
|
|
(157.9
|
)
|
|
60.9
|
|
|
-
|
|
|
(9.2
|
)
|
|
(106.2
|
)
|
|
-
|
|
|
(106.2
|
)
|
Earnings (loss) from continuing operations before income taxes
|
|
366.6
|
|
|
60.9
|
|
|
50.2
|
|
|
(9.2
|
)
|
|
468.5
|
|
|
117.6
|
|
|
586.1
|
|
Provision for income taxes
|
|
116.6
|
|
|
18.3
|
|
|
15.1
|
|
|
(3.0
|
)
|
|
147.0
|
|
|
37.0
|
|
|
184.0
|
|
Earnings (loss) from continuing operations, net of tax
|
|
250.0
|
|
|
42.6
|
|
|
35.1
|
|
|
(6.2
|
)
|
|
321.5
|
|
|
80.6
|
|
|
402.1
|
|
Earnings (loss) from discontinued operations, net of tax (6)
|
|
8.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8.4
|
|
|
-
|
|
|
8.4
|
|
Net earnings (loss)
|
|
258.4
|
|
|
42.6
|
|
|
35.1
|
|
|
(6.2
|
)
|
|
329.9
|
|
|
80.6
|
|
|
410.5
|
|
Net (earnings) loss attributable to noncontrolling interest
|
|
(9.5
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9.5
|
)
|
|
-
|
|
|
(9.5
|
)
|
Net earnings (loss) attributable to FIS common stockholders
|
|
$
|
248.9
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
(6.2
|
)
|
|
$
|
320.4
|
|
|
$
|
80.6
|
|
|
$
|
401.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to FIS common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations, net of tax
|
|
$
|
240.5
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
(6.2
|
)
|
|
$
|
312.0
|
|
|
$
|
80.6
|
|
|
$
|
392.6
|
|
Earnings (loss) from discontinued operations, net of tax (6)
|
|
8.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
8.4
|
|
|
-
|
|
|
8.4
|
|
Net earnings (loss) attributable to FIS common stockholders
|
|
$
|
248.9
|
|
|
$
|
42.6
|
|
|
$
|
35.1
|
|
|
$
|
(6.2
|
)
|
|
$
|
320.4
|
|
|
$
|
80.6
|
|
|
$
|
401.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share - diluted from continuing operations
attributable to FIS common stockholders*
|
|
$
|
0.82
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
$
|
(0.02
|
)
|
|
$
|
1.06
|
|
|
$
|
0.27
|
|
|
$
|
1.33
|
|
Weighted average shares outstanding - diluted
|
|
294.8
|
|
|
294.8
|
|
|
294.8
|
|
|
294.8
|
|
|
294.8
|
|
|
294.8
|
|
|
294.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
305.5
|
|
|
(117.6
|
)
|
|
$
|
187.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26.4
|
|
* Amounts may not sum due to rounding.
See accompanying notes.
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, 2014 and 2013.
The adjustments are as follows:
(1) 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.
(2) This column represents the write-off of certain previously
capitalized debt issuance costs and transaction expenses related to
refinancing activities undertaken in the second quarter of 2013,
including a $51.6 million bond premium incurred as a result of the early
redemption of certain debt.
(3) The adjustment in this column represents an increase in the
liability established at the acquisition of Capco for contingent
payments based on expected operating performance in 2013 through 2015.
(4) Gain resulting from the purchase of the remaining shares of
mFoundry, Inc., representing the difference between the fair value and
carrying value of the minority interest investment previously held.
(5) This column represents purchase price amortization expense on
intangible assets acquired through various Company acquisitions.
(6) During the 2014 and 2013 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 don't 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. In the second
quarter of 2013, we received an earn-out payment related to the 2010
sale of our ClearPar business.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China business line
|
|
$
|
(0.4
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(2.2
|
)
|
|
$
|
(1.3
|
)
|
ClearPar
|
|
-
|
|
|
16.7
|
|
|
-
|
|
|
16.7
|
|
Participacoes
|
|
(0.5
|
)
|
|
(3.1
|
)
|
|
(0.9
|
)
|
|
(7.0
|
)
|
Total discontinued operations
|
|
$
|
(0.9
|
)
|
|
$
|
12.8
|
|
|
$
|
(3.1
|
)
|
|
$
|
8.4
|
|
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