[February 05, 2013] |
|
Fiserv Reports Fourth Quarter and Full Year 2012 Results
BROOKFIELD, Wis. --(Business Wire)--
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial
services technology solutions, today reported financial results for the
fourth quarter and full year 2012.
GAAP revenue was $1.16 billion and adjusted revenue was $1.08 billion in
the fourth quarter, both consistent with the fourth quarter of 2011. For
the full year, GAAP revenue was $4.48 billion compared with $4.34
billion in 2011. Adjusted revenue was $4.20 billion compared with $4.07
billion in 2011, an increase of 3 percent.
GAAP earnings per share from continuing operations for the fourth
quarter was $1.18 compared with $1.07 in 2011. GAAP earnings per share
from continuing operations for the full year was $4.34 compared with
$3.40, which included a loss from early debt extinguishment of $0.37 per
share, in 2011.
Adjusted earnings per share from continuing operations in the fourth
quarter increased 9 percent to $1.39 compared with $1.27 in the fourth
quarter of 2011. Adjusted earnings per share from continuing operations
for the year grew 12 percent to $5.13 compared with $4.58 in 2011.
"Our 2012 results were highlighted by our 27th consecutive year of
double-digit adjusted earnings per share growth and meaningful strategic
progress," said Jeffery Yabuki, President and Chief Executive Officer of
Fiserv. "We capped off a strong sales year with exceptional performance
in the fourth quarter."
Recent Developments
On January 14, 2013, the company acquired Open Solutions Inc., a leading
provider of collaborative, enterprise account processing technology for
financial institutions. This acquisition advances the company's
go-to-market strategies including the addition of multiple high-quality
technology solutions and over 3,300 clients worldwide.
Fourth Quarter and Full Year 2012
-
Adjusted revenue grew 3 percent for the full year to $4.20 billion
compared to 2011.
-
Adjusted internal revenue growth for the full year was 2 percent, with
2 percent growth in each of the Payments and Financial segments.
Adjusted internal revenue was flat in the quarter due primarily to a
decrease in license revenue compared to 2011.
-
Adjusted operating margin was 30.7 percent in the quarter; an increase
of 70 basis points compared with the prior year period, and for the
year was up 40 basis points to 29.6 percent compared to 2011.
-
Adjusted earnings per share in the quarter increased 9 percent to
$1.39 and increased 12 percent for the full year to $5.13, compared to
the respective prior year periods.
-
Free cash flow grew 19% in the quarter to $271 million. Free cash flow
for the year was $772 million compared with $746 million in 2011, an
increase of 3%.
-
The company repurchased 9.2 million shares of common stock for $625
million in 2012, which included 0.7 million shares in the fourth
quarter. The company had approximately 5.6 million shares remaining
under its existing share repurchase authorization at year-end.
-
The company extended its electronic bill payment and presentment
relationship with Bank of America for a 10-year term. The bank will
leverage the CheckFree® RXP® platform through
its online and mobile channels.
-
The company presented its two billionth electronic bill since 2005
during the quarter.
-
The company received a $55 million cash dividend payment in the
quarter from StoneRiver Group, L.P., a company in which Fiserv owns a
49% interest.
-
The company signed 134 Mobiliti™ clients in the quarter and
552 mobile banking clients for the full year. As of December 31, 2012,
Fiserv has nearly 1,400 mobile banking clients.
-
The company signed 113 electronic bill payment clients and 40 debit
processing clients in the quarter, and 404 electronic bill payment
clients and 165 debit clients for the full year.
-
The company signed 113 Popmoney® clients in the quarter and
455 for the full year. As of December 31, 2012, the network includes
more than 1,800 financial institutions.
-
Fiserv generated a number of new and expanded client relationships in
the quarter, including:
-
American Electric Power Company, Inc., one of the largest
power generators and distributors in the U.S. serving more than
five million customers in 11 states, extended its relationship
with Fiserv for a full suite of comprehensive billing and payment
options, including CheckFreePay® for walk-in bill
payments, Biller Direct™ HV for bill presentment and
online payments, BillMatrix® On Demand Payments for
phone and web payments and eBill Distribution to enable the
delivery of the company's bills to financial institution websites.
-
Broadway Bank, headquartered in San Antonio, Texas with
$2.8 billion in assets, extended and expanded its relationship
with Fiserv. The bank will continue to leverage the Signature®
account processing platform and selected an integrated technology
suite of Fiserv solutions for payments, processing services, risk
and compliance, business intelligence and customer and channel
management.
-
California Credit Union, one of the largest credit unions
in Southern California with $1.1 billion in assets, agreed to
leverage payment solutions from Fiserv with CheckFree RXP
and Popmoney for bill payment and person-to-person payments. The
credit union is also a member of the ACCEL/Exchange®
Network from Fiserv.
-
Cape Bank, a $1 billion institution headquartered in Cape
May Court House, N.J., selected the Premier® account
processing platform. The bank will integrate a full suite of
Fiserv solutions, including Mobiliti, CheckFree RXP, CheckFree
Small Business, the ACCEL/Exchange Network, Debit Processing,
Teller Source Capture™, Merchant Source Capture™,
the Fiserv Clearing Network and AccountCreateSM.
-
First American International Bank, a New York State
chartered commercial bank with $526 million in assets, selected
the Premier account processing platform from Fiserv. The bank will
also leverage CheckFree RXP, the ACCEL/Exchange Network
and Debit Processing for payments, the Common Origination Platform™
for lending, Branch Source Capture™ and the Fiserv
Clearing Network for item processing and Prologue™ for
financial performance management.
-
Founders Federal Credit Union, headquartered in Lancaster,
S.C. with $1.6 billion in assets, expanded its account processing
and payments relationship with Fiserv to enhance its digital
channels capabilities with Corillian Online®, Mobiliti,
AllData® PFM and Mobile Source Capture™.
-
Humana Inc., a leading health care company headquartered in
Louisville, Ky., selected Fiserv to produce its secure health
savings account and member identification cards for the company's
commercial and dental customers.
-
Katahdin Trust Company, a commercial bank in Houlton, Maine
with $576 million in assets, selected the Premier account
processing platform, and will integrate Mobiliti, CheckFree RXP,
CheckFree Small Business, Popmoney, Source Capture Solutions®,
the ACCEL/Exchange Network, Business Online™, Retail
Online™, WireXchange, and AccountCreate for customer
and channel management, Consumer and Commercial Debit for
processing services, and AML Manager and Fraud Risk Manager™
for risk and compliance.
-
Mutual of Omaha Bank, headquartered in Omaha, Neb. with
$5.8 billion in assets, renewed its relationship with Fiserv for
the Signature account processing platform and accompanying
solutions, including Corillian Online for online banking,
CheckFree RXP for bill payment, Nautilus® for
enterprise content management, and WireXchange for wire transfer
as well as card production services. The bank also added PEP+®
for ACH processing, XRoads™ for data management and
Aperio™ for customer and channel management.
-
SunTrust Banks, Inc., one of the nation's largest banking
organizations with $173.4 billion in assets and headquartered in
Atlanta, implemented Popmoney, offering its online banking
customers person-to-person payment options. The bank also uses
Mobiliti, CheckFree RXP, TransferNow® for inter-bank
transfers and FundNow® for new account funding.
-
Union Bank, N.A., a subsidiary of UnionBanCal Corporation,
a financial holding company with $97 billion in assets, and a
member of the Mitsubishi UFJ Financial Group, selected CheckFree
RXP from Fiserv to enable electronic bill delivery and payment
through its online and mobile banking channels. The bank also
leverages TransferNow and Banklink® Cash Management to
support its online channel, as well as treasury management,
financial crime risk management and cash forecasting solutions
from Fiserv.
-
United Community Banks, Inc., the third largest bank
holding company in Georgia with $6.7 billion in assets, expanded
its relationship with Fiserv. Centered on the Premier account
processing platform, the bank will implement the ACCEL/Exchange
Network and Debit Processing and continue to use CheckFree RXP,
Popmoney, Retail Online, Business Online, Merchant Source Capture,
Director™ and several other Fiserv solutions.
Outlook for 2013
Fiserv expects total adjusted revenue growth for 2013 to be in excess of
10 percent and adjusted internal revenue growth to be in a range
of 3 to 4 percent. The company also expects adjusted earnings per share
to be in a range of $5.88 to $6.07, which represents growth of 15 to 18
percent over $5.13 in 2012.
"The continued strength in our recurring revenue businesses, along with
the acquisition of Open Solutions, has us well positioned to accelerate
revenue growth while delivering strong earnings and cash flow in 2013,"
said Yabuki.
Earnings Conference Call
The company will discuss its fourth quarter and full year 2012 results
on a conference call and webcast at 4 p.m. CT on Tuesday, February 5,
2013. To register for the event, go to www.fiserv.com
and click on the Q4 Earnings webcast link. Supplemental materials will
be available in the "Investor Relations" section of the website.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) is a leading global technology provider
serving the financial services industry, driving innovation in payments,
processing services, risk and compliance, customer and channel
management, and business insights and optimization. For more
information, visit www.fiserv.com.
Use of Non-GAAP Financial Measures
We supplement our reporting of revenue, operating income, income from
continuing operations and earnings per share information determined in
accordance with GAAP by using "adjusted revenue," "adjusted internal
revenue growth," "adjusted operating income," "adjusted income from
continuing operations," "adjusted earnings per share," "adjusted
operating margin," and "free cash flow" in this earnings release.
Management believes that adjustments for certain non-cash or other items
and the exclusion of certain pass-through revenue and expenses enhance
our shareholders' ability to evaluate our performance because such items
do not reflect how we manage our operations. Therefore, we exclude these
items from GAAP revenue, operating income, operating margin, income from
continuing operations and earnings per share to calculate these non-GAAP
measures. In addition, the company's prior year free cash flow has been
restated to conform to the current year presentation.
Examples of non-cash or other items may include, but are not limited to,
non-cash intangible asset amortization expense associated with
acquisitions, severance costs, merger costs, certain integration
expenses related to acquisitions, certain costs associated with the
achievement of the company's operational effectiveness objectives and
certain discrete tax benefits. We exclude these items to more clearly
focus on the factors we believe are pertinent to the management of our
operations, and we use this information to allocate resources to our
various businesses.
Free cash flow and adjusted internal revenue growth are non-GAAP
financial measures and are described on page 12. We believe free cash
flow is useful to measure the funds generated in a given period that are
available for strategic capital decisions. We believe adjusted internal
revenue growth is useful because it presents revenue growth excluding
all acquired revenue and postage reimbursements in our Output Solutions
business. We believe this supplemental information enhances our
shareholders' ability to evaluate and understand our core business
performance.
These non-GAAP measures should be considered in addition to, and not as
a substitute for, revenue, operating income, operating margin, income
from continuing operations and earnings per share or any other amount
determined in accordance with GAAP. These non-GAAP measures reflect
management's judgment of particular items and may not be comparable to
similarly titled measures reported by other companies.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated adjusted revenue, adjusted
internal revenue, and adjusted earnings per share growth. Statements can
generally be identified as forward-looking because they include words
such as "believes," "anticipates," "expects," "could," "should" or words
of similar meaning. Statements that describe the company's future plans,
objectives or goals are also forward-looking statements. Forward-looking
statements are subject to assumptions, risks and uncertainties that may
cause actual results to differ materially from those contemplated by
such forward-looking statements. The factors that may affect the
company's results include, among others: the impact on the company's
business of the current state of the economy, including the risk of
reduction in revenue resulting from decreased spending on the products
and services that the company offers; legislative and regulatory actions
in the United States and internationally, including the impact of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and related
regulations; the company's ability to successfully integrate
acquisitions, including Open Solutions Inc., into its operations;
changes in client demand for the company's products or services; pricing
or other actions by competitors; the impact of the company's strategic
initiatives; the company's ability to comply with government
regulations, including privacy regulations; and other factors included
in the company's filings with the SEC, including its Annual Report on
Form 10-K for the year ended December 31, 2011 and in other documents
that the company files with the SEC. You should consider these factors
carefully in evaluating forward-looking statements and are cautioned not
to place undue reliance on such statements. The company assumes no
obligation to update any forward-looking statements, which speak only as
of the date of this press release.
Fiserv, Inc.
|
|
Condensed Consolidated Statements of Income
|
|
(In millions, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing and services
|
|
$
|
950
|
|
|
|
|
$
|
915
|
|
|
|
|
$
|
3,709
|
|
|
|
|
$
|
3,543
|
|
|
Product
|
|
|
206
|
|
|
|
|
|
246
|
|
|
|
|
|
773
|
|
|
|
|
|
794
|
|
|
Total revenue
|
|
|
1,156
|
|
|
|
|
|
1,161
|
|
|
|
|
|
4,482
|
|
|
|
|
|
4,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of processing and services
|
|
|
493
|
|
|
|
|
|
498
|
|
|
|
|
|
1,969
|
|
|
|
|
|
1,941
|
|
|
Cost of product
|
|
|
164
|
|
|
|
|
|
165
|
|
|
|
|
|
628
|
|
|
|
|
|
601
|
|
|
Selling, general and administrative
|
|
|
210
|
|
|
|
|
|
217
|
|
|
|
|
|
829
|
|
|
|
|
|
799
|
|
|
Total expenses
|
|
|
867
|
|
|
|
|
|
880
|
|
|
|
|
|
3,426
|
|
|
|
|
|
3,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
289
|
|
|
|
|
|
281
|
|
|
|
|
|
1,056
|
|
|
|
|
|
996
|
|
|
Interest expense - net
|
|
|
(38
|
)
|
|
|
|
|
(44
|
)
|
|
|
|
|
(167
|
)
|
|
|
|
|
(182
|
)
|
|
Loss on early debt extinguishment
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(85
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and income from investment in unconsolidated affiliate
|
|
|
251
|
|
|
|
|
|
237
|
|
|
|
|
|
889
|
|
|
|
|
|
729
|
|
|
Income tax provision
|
|
|
(94
|
)
|
|
|
|
|
(88
|
)
|
|
|
|
|
(303
|
)
|
|
|
|
|
(256
|
)
|
|
Income from investment in unconsolidated affiliate
|
|
|
2
|
|
|
|
|
|
4
|
|
|
|
|
|
11
|
|
|
|
|
|
18
|
|
|
Income from continuing operations
|
|
|
159
|
|
|
|
|
|
153
|
|
|
|
|
|
597
|
|
|
|
|
|
491
|
|
|
Income (loss) from discontinued operations
|
|
|
20
|
|
|
|
|
|
(10
|
)
|
|
|
|
|
14
|
|
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
179
|
|
|
|
|
$
|
143
|
|
|
|
|
$
|
611
|
|
|
|
|
$
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.18
|
|
|
|
|
$
|
1.07
|
|
|
|
|
$
|
4.34
|
|
|
|
|
$
|
3.40
|
|
|
Discontinued operations
|
|
|
0.14
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
0.10
|
|
|
|
|
|
(0.13
|
)
|
|
Total
|
|
$
|
1.32
|
|
|
|
|
$
|
1.01
|
|
|
|
|
$
|
4.44
|
|
|
|
|
$
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares used in computing earnings (loss) per share
|
|
|
135.1
|
|
|
|
|
|
142.3
|
|
|
|
|
|
137.5
|
|
|
|
|
|
144.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiserv, Inc.
|
|
Reconciliation of GAAP to Adjusted Income and
|
|
Earnings Per Share from Continuing Operations
|
|
(In millions, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from continuing operations
|
|
$
|
159
|
|
|
|
|
$
|
153
|
|
|
|
|
$
|
597
|
|
|
|
|
$
|
491
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration costs
|
|
|
4
|
|
|
|
|
|
2
|
|
|
|
|
|
13
|
|
|
|
|
|
17
|
|
|
Severance costs
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
12
|
|
|
|
|
|
18
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
41
|
|
|
|
|
|
42
|
|
|
|
|
|
163
|
|
|
|
|
|
157
|
|
|
Debt extinguishment and refinancing costs 1
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
4
|
|
|
|
|
|
85
|
|
|
Tax impact of adjustments 2
|
|
|
(16
|
)
|
|
|
|
|
(16
|
)
|
|
|
|
|
(69
|
)
|
|
|
|
|
(101
|
)
|
|
Tax benefit 3
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(14
|
)
|
|
|
|
|
(3
|
)
|
|
Gain on sale of business by unconsolidated affiliate
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(3
|
)
|
|
Adjusted income from continuing operations
|
|
$
|
188
|
|
|
|
|
$
|
181
|
|
|
|
|
$
|
706
|
|
|
|
|
$
|
661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share - continuing operations
|
|
$
|
1.18
|
|
|
|
|
$
|
1.07
|
|
|
|
|
$
|
4.34
|
|
|
|
|
$
|
3.40
|
|
|
Adjustments - net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration costs
|
|
|
0.02
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.06
|
|
|
|
|
|
0.07
|
|
|
Severance costs
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.06
|
|
|
|
|
|
0.08
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
0.19
|
|
|
|
|
|
0.19
|
|
|
|
|
|
0.76
|
|
|
|
|
|
0.69
|
|
|
Debt extinguishment and refinancing costs 1
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.02
|
|
|
|
|
|
0.37
|
|
|
Tax benefit 3
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
(0.02
|
)
|
|
Gain on sale of business by unconsolidated affiliate
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(0.02
|
)
|
|
Adjusted earnings per share
|
|
$
|
1.39
|
|
|
|
|
$
|
1.27
|
|
|
|
|
$
|
5.13
|
|
|
|
|
$
|
4.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The 2012 adjustment represents a charge of $4 million
of interest expense associated with hedge ineffectiveness of
interest rate swap agreements settled in September 2012 in
conjunction with the company's bond offering. The 2011 adjustment
represents costs associated with the early retirement of debt.
|
|
|
|
|
|
|
2 The tax impact for all periods presented is
calculated using a tax rate of approximately 36 percent, which
approximates the company's normalized annual effective tax rate.
|
|
|
|
|
3 The tax benefit in 2012 represents certain discrete
income tax benefits related to prior years recognized for GAAP
purposes in the second quarter that have been excluded from
adjusted earnings per share.
|
|
|
|
|
|
See page 5 for disclosures related to the use of non-GAAP
financial measures. Earnings per share is calculated using actual,
unrounded amounts.
|
|
|
|
|
|
|
Fiserv, Inc.
|
|
Financial Results by Segment
|
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,156
|
|
|
|
|
$
|
1,161
|
|
|
|
|
$
|
4,482
|
|
|
|
|
$
|
4,337
|
|
|
Output Solutions postage reimbursements
|
|
|
(72
|
)
|
|
|
|
|
(77
|
)
|
|
|
|
|
(286
|
)
|
|
|
|
|
(266
|
)
|
|
Adjusted revenue
|
|
$
|
1,084
|
|
|
|
|
$
|
1,084
|
|
|
|
|
$
|
4,196
|
|
|
|
|
$
|
4,071
|
|
|
Operating income
|
|
$
|
289
|
|
|
|
|
$
|
281
|
|
|
|
|
$
|
1,056
|
|
|
|
|
$
|
996
|
|
|
Merger and integration costs
|
|
|
4
|
|
|
|
|
|
2
|
|
|
|
|
|
13
|
|
|
|
|
|
17
|
|
|
Severance costs
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
12
|
|
|
|
|
|
18
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
41
|
|
|
|
|
|
42
|
|
|
|
|
|
163
|
|
|
|
|
|
157
|
|
|
Adjusted operating income
|
|
$
|
334
|
|
|
|
|
$
|
325
|
|
|
|
|
$
|
1,244
|
|
|
|
|
$
|
1,188
|
|
|
Operating margin
|
|
|
25.0
|
%
|
|
|
|
|
24.3
|
%
|
|
|
|
|
23.6
|
%
|
|
|
|
|
23.0
|
%
|
|
Adjusted operating margin
|
|
|
30.7
|
%
|
|
|
|
|
30.0
|
%
|
|
|
|
|
29.6
|
%
|
|
|
|
|
29.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments and Industry Products ("Payments")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
644
|
|
|
|
|
$
|
635
|
|
|
|
|
$
|
2,489
|
|
|
|
|
$
|
2,381
|
|
|
Output Solutions postage reimbursements
|
|
|
(72
|
)
|
|
|
|
|
(77
|
)
|
|
|
|
|
(286
|
)
|
|
|
|
|
(266
|
)
|
|
Adjusted revenue
|
|
$
|
572
|
|
|
|
|
$
|
558
|
|
|
|
|
$
|
2,203
|
|
|
|
|
$
|
2,115
|
|
|
Operating income
|
|
$
|
179
|
|
|
|
|
$
|
174
|
|
|
|
|
$
|
668
|
|
|
|
|
$
|
656
|
|
|
Operating margin
|
|
|
27.7
|
%
|
|
|
|
|
27.4
|
%
|
|
|
|
|
26.8
|
%
|
|
|
|
|
27.5
|
%
|
|
Adjusted operating margin
|
|
|
31.2
|
%
|
|
|
|
|
31.2
|
%
|
|
|
|
|
30.3
|
%
|
|
|
|
|
31.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Institution Services ("Financial")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
524
|
|
|
|
|
$
|
540
|
|
|
|
|
$
|
2,040
|
|
|
|
|
$
|
2,004
|
|
|
Operating income
|
|
$
|
173
|
|
|
|
|
$
|
178
|
|
|
|
|
$
|
652
|
|
|
|
|
$
|
613
|
|
|
Operating margin
|
|
|
33.1
|
%
|
|
|
|
|
33.1
|
%
|
|
|
|
|
32.0
|
%
|
|
|
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
(12
|
)
|
|
|
|
$
|
(14
|
)
|
|
|
|
$
|
(47
|
)
|
|
|
|
$
|
(48
|
)
|
|
Operating loss
|
|
$
|
(63
|
)
|
|
|
|
$
|
(71
|
)
|
|
|
|
$
|
(264
|
)
|
|
|
|
$
|
(273
|
)
|
|
Merger and integration costs
|
|
|
4
|
|
|
|
|
|
2
|
|
|
|
|
|
13
|
|
|
|
|
|
17
|
|
|
Severance costs
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
12
|
|
|
|
|
|
18
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
41
|
|
|
|
|
|
42
|
|
|
|
|
|
163
|
|
|
|
|
|
157
|
|
|
Adjusted operating loss
|
|
$
|
(18
|
)
|
|
|
|
$
|
(27
|
)
|
|
|
|
$
|
(76
|
)
|
|
|
|
$
|
(81
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See page 5 for disclosures related to the use of non-GAAP
financial measures. Operating margin percentages are calculated
using actual, unrounded amounts.
|
|
|
|
|
|
Fiserv, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
611
|
|
|
|
|
$
|
472
|
|
|
Adjustment for discontinued operations
|
|
|
(14
|
)
|
|
|
|
|
19
|
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and other amortization
|
|
|
191
|
|
|
|
|
|
192
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
163
|
|
|
|
|
|
157
|
|
|
|
Share-based compensation
|
|
|
44
|
|
|
|
|
|
39
|
|
|
|
Deferred income taxes
|
|
|
5
|
|
|
|
|
|
29
|
|
|
|
Settlement of interest rate hedge contracts
|
|
|
(88
|
)
|
|
|
|
|
(6
|
)
|
|
|
Dividends from unconsolidated affiliate
|
|
|
23
|
|
|
|
|
|
12
|
|
|
|
Loss on early debt extinguishment
|
|
|
-
|
|
|
|
|
|
85
|
|
|
|
Other non-cash items
|
|
|
(22
|
)
|
|
|
|
|
(26
|
)
|
|
|
Changes in assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
(12
|
)
|
|
|
|
|
(83
|
)
|
|
|
|
Prepaid expenses and other assets
|
|
|
(85
|
)
|
|
|
|
|
(25
|
)
|
|
|
|
Accounts payable and other liabilities
|
|
|
-
|
|
|
|
|
|
78
|
|
|
|
|
Deferred revenue
|
|
|
19
|
|
|
|
|
|
10
|
|
|
Net cash provided by operating activities
|
|
|
835
|
|
|
|
|
|
953
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Capital expenditures, including capitalization of software costs
|
|
|
(195
|
)
|
|
|
|
|
(192
|
)
|
|
Payments for acquisitions of businesses, net of cash acquired
|
|
|
-
|
|
|
|
|
|
(511
|
)
|
|
Dividends from unconsolidated affiliate
|
|
|
32
|
|
|
|
|
|
42
|
|
|
Net proceeds from sale (purchases) of investments
|
|
|
28
|
|
|
|
|
|
(4
|
)
|
|
Other investing activities
|
|
|
(3
|
)
|
|
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(138
|
)
|
|
|
|
|
(665
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
1,469
|
|
|
|
|
|
1,189
|
|
|
Repayments of long-term debt, including premium and costs
|
|
|
(1,642
|
)
|
|
|
|
|
(1,226
|
)
|
|
Issuance of treasury stock
|
|
|
96
|
|
|
|
|
|
73
|
|
|
Purchases of treasury stock
|
|
|
(634
|
)
|
|
|
|
|
(533
|
)
|
|
Other financing activities
|
|
|
5
|
|
|
|
|
|
(1
|
)
|
|
Net cash used in financing activities
|
|
|
(706
|
)
|
|
|
|
|
(498
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
(9
|
)
|
|
|
|
|
(210
|
)
|
|
Net cash flows from discontinued operations
|
|
|
30
|
|
|
|
|
|
(16
|
)
|
|
Beginning balance
|
|
|
337
|
|
|
|
|
|
563
|
|
|
Ending balance
|
|
$
|
358
|
|
|
|
|
$
|
337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiserv, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
358
|
|
|
|
$
|
337
|
|
Trade accounts receivable - net
|
|
|
663
|
|
|
|
|
666
|
|
Deferred income taxes
|
|
|
42
|
|
|
|
|
44
|
|
Prepaid expenses and other current assets
|
|
|
349
|
|
|
|
|
309
|
|
Total current assets
|
|
|
1,412
|
|
|
|
|
1,356
|
|
|
|
|
|
|
|
|
|
Property and equipment - net
|
|
|
249
|
|
|
|
|
258
|
|
Intangible assets - net
|
|
|
1,760
|
|
|
|
|
1,881
|
|
Goodwill
|
|
|
4,719
|
|
|
|
|
4,720
|
|
Other long-term assets
|
|
|
357
|
|
|
|
|
333
|
|
Total assets
|
|
$
|
8,497
|
|
|
|
$
|
8,548
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
724
|
|
|
|
$
|
836
|
|
Current maturities of long-term debt
|
|
|
2
|
|
|
|
|
179
|
|
Deferred revenue
|
|
|
379
|
|
|
|
|
369
|
|
Total current liabilities
|
|
|
1,105
|
|
|
|
|
1,384
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,228
|
|
|
|
|
3,216
|
|
Deferred income taxes
|
|
|
638
|
|
|
|
|
617
|
|
Other long-term liabilities
|
|
|
109
|
|
|
|
|
73
|
|
Total liabilities
|
|
|
5,080
|
|
|
|
|
5,290
|
|
Shareholders' equity
|
|
|
3,417
|
|
|
|
|
3,258
|
|
Total liabilities and shareholders' equity
|
|
$
|
8,497
|
|
|
|
$
|
8,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiserv, Inc.
|
|
Selected Non-GAAP Financial Measures
|
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Internal Revenue Growth 1
|
|
|
|
Three Months Ended December 31, 2012
|
|
|
|
Year Ended December 31, 2012
|
|
Payments Segment
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
Financial Segment
|
|
|
|
(3
|
%)
|
|
|
|
2
|
%
|
|
Total Company
|
|
|
|
0
|
%
|
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Adjusted internal revenue growth is measured as the
increase in adjusted revenue (see page 9), excluding acquired revenue
for the current period, divided by adjusted revenue from the prior year
period. Acquired revenue was $2 million (all in the Financial segment)
for the fourth quarter of 2012 and $43 million ($40 million in the
Payments segment and $3 million in the Financial segment) for the full
year.
Free Cash Flow 2
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
2012
|
|
|
|
|
|
2011
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
835
|
|
|
|
|
$
|
953
|
|
|
Settlement of interest rate hedge contracts
|
|
|
|
|
88
|
|
|
|
|
|
6
|
|
|
Capital expenditures
|
|
|
|
|
(195
|
)
|
|
|
|
|
(192
|
)
|
|
Other adjustments
|
|
|
|
|
44
|
|
|
|
|
|
(21
|
)
|
|
Free cash flow
|
|
|
|
$
|
772
|
|
|
|
|
$
|
746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Free cash flow is calculated as net cash provided by
operating activities less capital expenditures and excludes the net
change in settlement assets and obligations; tax-effected severance,
merger and integration payments; and other items which management
believes may not be indicative of the future free cash flow of the
company. Free cash flow does not include $70 million received in the
fourth quarter of 2012, comprised of the portion of a cash dividend
received from an unconsolidated affiliate that is included in "net cash
from investing activities" and an insurance recovery included in
discontinued operations.
See page 5 for disclosures related to the use of non-GAAP financial
measures.
FISV-E
[ Back To TMCnet.com's Homepage ]
|