[February 08, 2017] |
|
Fiserv Reports Fourth Quarter and Full Year 2016 Results
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial
services technology solutions, today reported financial results for the
fourth quarter and full year 2016.
Fourth Quarter and Full Year 2016 GAAP Results
GAAP revenue for the company increased 5 percent in the fourth quarter
to $1.43 billion, driven by 7 percent growth in the Payments segment and
2 percent growth in the Financial segment, compared to the fourth
quarter of 2015. Full year GAAP revenue for the company increased 5
percent in 2016 to $5.51 billion, driven by 8 percent growth in the
Payments segment and 1 percent growth in the Financial segment, compared
to the prior year.
GAAP earnings per share was $0.98 in the fourth quarter of 2016 and
$4.15 for the full year, increasing 21 percent and 39 percent,
respectively, compared to the prior year periods. GAAP earnings per
share for the full year included a net investment gain of $0.39 per
share in 2016 driven by the sale of a business interest at StoneRiver
Group, L.P. ("StoneRiver"), a joint venture in which the company owns a
49% interest, and debt extinguishment and refinancing costs of $0.25 per
share in 2015.
GAAP operating margin was 26.1 percent in the fourth quarter of 2016 and
26.2 percent for the full year, increasing 210 basis points and 130
basis points, respectively, compared to the prior year periods.
Net cash provided by operating activities for the full year was $1.43
billion in 2016 compared with $1.35 billion in the prior year, an
increase of 6 percent.
"Results in 2016 were punctuated by our 31st consecutive
year of double-digit adjusted earnings per share growth, operating
margin expansion and excellent free cash flow," said Jeffery Yabuki,
President and Chief Executive Officer of Fiserv. "Our strong sales
performance sets us up to accelerate internal revenue growth in 2017."
Fourth Quarter and Full Year 2016 Non-GAAP Results and Additional
Information
-
Adjusted revenue increased 5 percent both in the fourth quarter and
for the full year to $1.35 billion and $5.21 billion, respectively,
compared to the prior year periods.
-
Internal revenue growth for the company both in the fourth quarter and
for the full year was 4 percent, driven by 6 percent growth in the
Payments segment and 2 percent growth in the Financial segment in each
period.
-
Adjusted earnings per share increased 16 percent in the fourth quarter
to $1.16 and 14 percent for the full year to $4.43 compared to the
prior year periods.
-
Adjusted operating margin expanded 140 basis points to 32.1 percent in
the fourth quarter and 50 basis points to 32.2 percent for the full
year compared to the prior year periods.
-
Free cash flow increased 8 percent to $1.08 billion for the full year
compared to the prior year. Cash distributions from StoneRiver of $151
million in 2016 related to the sale of a business interest have been
excluded from the company's free cash flow results.
-
Sales performance increased 22 percent in the fourth quarter and 21
percent for the full year compared to the prior year periods.
-
The company repurchased 11.9 million shares of common stock for $1.20
billion in 2016, which included 2.6 million shares of common stock for
$265 million in the fourth quarter. The company announced a new 15
million share repurchase authorization in the quarter and had 20.5
million remaining shares authorized for repurchase as of December 31,
2016.
-
In January 2017, the company completed its acquisition of Online
Banking Solutions, Inc., gaining additional cash management and
digital business banking capabilities, which complement and enrich the
company's existing solutions.
Outlook for 2017
Fiserv expects internal revenue to grow in a range of 4 to 5 percent.
The company also expects adjusted earnings per share in a range of $5.03
to $5.17, which would represent growth of 14 to 17 percent over $4.43 in
2016.
"We enter 2017 with market momentum and a focus on providing high-value,
differentiated experiences that enhance growth for our clients and value
for our shareholders," said Yabuki.
Earnings Conference Call
The company will discuss its fourth quarter and full year 2016 results
on a conference call and webcast at 4 p.m. CT on Wednesday, February 8,
2017. To register for the event, go to 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) enables clients worldwide to create and
deliver financial services experiences that are in step with the way
people live and work today. For more than 30 years, Fiserv has been a
trusted leader in financial services technology, helping clients achieve
best-in-class results by driving quality and innovation in payments,
processing services, risk and compliance, customer and channel
management, and insights and optimization. Fiserv is a member of the
FORTUNE® 500 and has been named a FORTUNE World's Most
Admired Company for three consecutive years. For more information, visit Fiserv.com.
Use of Non-GAAP Financial Measures
In this earnings release, the company supplements its reporting of
information determined in accordance with GAAP, such as revenue,
operating income, operating margin, net income, earnings per share and
net cash provided by operating activities, with "adjusted revenue,"
"internal revenue growth," "adjusted operating income," "adjusted
operating margin," "adjusted net income," "adjusted earnings per share"
and "free cash flow." Management believes that adjustments for certain
non-cash or other items and the exclusion of certain pass-through
revenue and expenses enhance shareholders' ability to evaluate the
company's performance as such measures provide additional insights into
the factors and trends affecting its business. Therefore, the company
excludes these items from GAAP revenue, operating income, operating
margin, net income, earnings per share and net cash provided by
operating activities to calculate these non-GAAP measures. The
corresponding reconciliations of these non-GAAP financial measures to
the most comparable GAAP measures are included in this earnings release,
except for forward-looking measures where a reconciliation to the
corresponding GAAP measures is not available due to the variability,
complexity and low visibility of the non-cash and other items described
below that are excluded from the non-GAAP outlook measures. See page 11
for additional information regarding the company's forward-looking
non-GAAP financial measures.
Examples of non-cash or other items may include, but are not limited to,
non-cash deferred revenue adjustments arising from acquisitions,
non-cash intangible asset amortization expense associated with
acquisitions, non-cash impairment charges, gains or losses from
unconsolidated affiliates, severance costs, charges associated with
early debt extinguishment, merger and integration costs related to
acquisitions, and certain costs associated with the achievement of the
company's operational effectiveness objectives. The company excludes
these items to more clearly focus on the factors management believes are
pertinent to its operations, and management uses this information to
make operating decisions, including the allocation of resources to the
company's various businesses.
Internal revenue growth and free cash flow are non-GAAP financial
measures and are described on page 10. Management believes internal
revenue growth is useful because it presents revenue growth excluding
the effects of acquisitions and dispositions and the impact of postage
reimbursements in the company's Output Solutions business, and including
deferred revenue purchase accounting adjustments. Management believes
free cash flow is useful to measure the funds generated in a given
period that are available for debt service requirements and strategic
capital decisions. Management believes this supplemental information
enhances shareholders' ability to evaluate and understand the company's
core business performance.
These non-GAAP measures may not be comparable to similarly titled
measures reported by other companies and should be considered in
addition to, and not as a substitute for, revenue, operating income,
operating margin, net income, earnings per share and net cash provided
by operating activities or any other amount determined in accordance
with GAAP.
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 internal revenue growth,
adjusted earnings per share 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: pricing and
other actions by competitors; the capacity of the company's technology
to keep pace with a rapidly evolving marketplace; the impact of market
and economic conditions on the financial services industry; the impact
of a security breach or operational failure on the company's business;
the effect of legislative and regulatory actions in the United States
and internationally; the company's ability to comply with government
regulations; the company's ability to successfully identify,
complete and integrate acquisitions, and to realize the anticipated
benefits associated with the same; the impact of the company's strategic
initiatives; 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, 2015 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
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing and services
|
|
|
$
|
1,184
|
|
|
|
$
|
1,110
|
|
|
|
$
|
4,625
|
|
|
|
$
|
4,411
|
|
Product
|
|
|
247
|
|
|
|
258
|
|
|
|
880
|
|
|
|
843
|
|
Total revenue
|
|
|
1,431
|
|
|
|
1,368
|
|
|
|
5,505
|
|
|
|
5,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of processing and services
|
|
|
561
|
|
|
|
553
|
|
|
|
2,212
|
|
|
|
2,178
|
|
Cost of product
|
|
|
200
|
|
|
|
210
|
|
|
|
747
|
|
|
|
731
|
|
Selling, general and administrative
|
|
|
295
|
|
|
|
276
|
|
|
|
1,101
|
|
|
|
1,034
|
|
Total expenses
|
|
|
1,056
|
|
|
|
1,039
|
|
|
|
4,060
|
|
|
|
3,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
375
|
|
|
|
329
|
|
|
|
1,445
|
|
|
|
1,311
|
|
Interest expense
|
|
|
(42
|
)
|
|
|
(39
|
)
|
|
|
(163
|
)
|
|
|
(170
|
)
|
Interest and investment (loss) income - net
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
1
|
|
Loss on early debt extinguishment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(85
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes and income from investment in
unconsolidated affiliate
|
|
|
333
|
|
|
|
290
|
|
|
|
1,275
|
|
|
|
1,057
|
|
Income tax provision
|
|
|
(119
|
)
|
|
|
(98
|
)
|
|
|
(492
|
)
|
|
|
(377
|
)
|
Income (loss) from investment in unconsolidated affiliate
|
|
|
1
|
|
|
|
(3
|
)
|
|
|
147
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
215
|
|
|
|
$
|
189
|
|
|
|
$
|
930
|
|
|
|
$
|
712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share - diluted
|
|
|
$
|
0.98
|
|
|
|
$
|
0.81
|
|
|
|
$
|
4.15
|
|
|
|
$
|
2.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares used in computing earnings per share
|
|
|
219.9
|
|
|
|
231.6
|
|
|
|
223.9
|
|
|
|
238.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share is calculated using actual, unrounded amounts.
|
Fiserv, Inc.
|
Reconciliation of GAAP to
|
Adjusted Net Income and Adjusted Earnings Per Share
|
(In millions, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
215
|
|
|
|
$
|
189
|
|
|
|
$
|
930
|
|
|
|
$
|
712
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger, integration and other costs 1
|
|
|
17
|
|
|
|
9
|
|
|
|
58
|
|
|
|
37
|
|
Severance costs
|
|
|
4
|
|
|
|
11
|
|
|
|
15
|
|
|
|
24
|
|
Amortization of acquisition-related intangible assets
|
|
|
39
|
|
|
|
45
|
|
|
|
158
|
|
|
|
194
|
|
Debt extinguishment and refinancing costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
92
|
|
Tax impact of adjustments 2
|
|
|
(21
|
)
|
|
|
(23
|
)
|
|
|
(81
|
)
|
|
|
(122
|
)
|
StoneRiver and other investment activity 3
|
|
|
-
|
|
|
|
3
|
|
|
|
(139
|
)
|
|
|
(29
|
)
|
Tax impact of StoneRiver and other investment activity 2
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
52
|
|
|
|
13
|
|
Adjusted net income
|
|
|
$
|
254
|
|
|
|
$
|
233
|
|
|
|
$
|
993
|
|
|
|
$
|
921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share
|
|
|
$
|
0.98
|
|
|
|
$
|
0.81
|
|
|
|
$
|
4.15
|
|
|
|
$
|
2.99
|
|
Adjustments - net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger, integration and other costs 1
|
|
|
0.05
|
|
|
|
0.02
|
|
|
|
0.17
|
|
|
|
0.10
|
|
Severance costs
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.04
|
|
|
|
0.06
|
|
Amortization of acquisition-related intangible assets
|
|
|
0.12
|
|
|
|
0.13
|
|
|
|
0.46
|
|
|
|
0.53
|
|
Debt extinguishment and refinancing costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.25
|
|
StoneRiver and other investment activity 3
|
|
|
-
|
|
|
|
0.01
|
|
|
|
(0.39
|
)
|
|
|
(0.07
|
)
|
Adjusted earnings per share
|
|
|
$
|
1.16
|
|
|
|
$
|
1.00
|
|
|
|
$
|
4.43
|
|
|
|
$
|
3.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Merger, integration and other costs include
acquisition and related integration costs of $36 million in 2016,
including a $10 million non-cash impairment charge during the
first quarter associated with the decision to replace an existing
software solution with software purchased in a business
acquisition; certain costs associated with the achievement of the
company's operational effectiveness objectives, including expenses
related to data center and real estate consolidation activities;
and a non-cash expense in 2015 related to the modification of
certain employee equity award agreements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 The tax impact of adjustments is calculated using a
tax rate of 35 percent, which approximates the company's annual
effective tax rate, exclusive of the actual tax impacts associated
with StoneRiver transactions.
|
|
3 Represents the company's share of net (gains) losses
on the sales of a business interest and a subsidiary business at
StoneRiver, as well as a non-cash write-off of a $7 million
investment in the first quarter of 2016.
|
See page 3 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
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Total Company
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
1,431
|
|
|
|
$
|
1,368
|
|
|
|
$
|
5,505
|
|
|
|
$
|
5,254
|
|
Output Solutions postage reimbursements
|
|
|
(79
|
)
|
|
|
(85
|
)
|
|
|
(300
|
)
|
|
|
(313
|
)
|
Deferred revenue purchase accounting adjustments
|
|
|
2
|
|
|
|
1
|
|
|
|
6
|
|
|
|
4
|
|
Adjusted revenue
|
|
|
$
|
1,354
|
|
|
|
$
|
1,284
|
|
|
|
$
|
5,211
|
|
|
|
$
|
4,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
375
|
|
|
|
$
|
329
|
|
|
|
$
|
1,445
|
|
|
|
$
|
1,311
|
|
Merger, integration and other costs
|
|
|
17
|
|
|
|
9
|
|
|
|
58
|
|
|
|
37
|
|
Severance costs
|
|
|
4
|
|
|
|
11
|
|
|
|
15
|
|
|
|
24
|
|
Amortization of acquisition-related intangible assets
|
|
|
39
|
|
|
|
45
|
|
|
|
158
|
|
|
|
194
|
|
Adjusted operating income
|
|
|
$
|
435
|
|
|
|
$
|
394
|
|
|
|
$
|
1,676
|
|
|
|
$
|
1,566
|
|
Operating margin
|
|
|
26.1
|
%
|
|
|
24.0
|
%
|
|
|
26.2
|
%
|
|
|
24.9
|
%
|
Adjusted operating margin
|
|
|
32.1
|
%
|
|
|
30.7
|
%
|
|
|
32.2
|
%
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments and Industry Products ("Payments")
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
806
|
|
|
|
$
|
751
|
|
|
|
$
|
3,090
|
|
|
|
$
|
2,862
|
|
Output Solutions postage reimbursements
|
|
|
(79
|
)
|
|
|
(85
|
)
|
|
|
(300
|
)
|
|
|
(313
|
)
|
Deferred revenue purchase accounting adjustments
|
|
|
1
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
Adjusted revenue
|
|
|
$
|
728
|
|
|
|
$
|
666
|
|
|
|
$
|
2,793
|
|
|
|
$
|
2,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
240
|
|
|
|
$
|
224
|
|
|
|
$
|
943
|
|
|
|
$
|
840
|
|
Merger, integration and other costs
|
|
|
1
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
Adjusted operating income
|
|
|
$
|
241
|
|
|
|
$
|
224
|
|
|
|
$
|
946
|
|
|
|
$
|
840
|
|
Operating margin
|
|
|
29.8
|
%
|
|
|
29.8
|
%
|
|
|
30.5
|
%
|
|
|
29.3
|
%
|
Adjusted operating margin
|
|
|
33.1
|
%
|
|
|
33.6
|
%
|
|
|
33.8
|
%
|
|
|
33.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Institution Services ("Financial")
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
643
|
|
|
|
$
|
630
|
|
|
|
$
|
2,477
|
|
|
|
$
|
2,443
|
|
Deferred revenue purchase accounting adjustments
|
|
|
1
|
|
|
|
1
|
|
|
|
3
|
|
|
|
4
|
|
Adjusted revenue
|
|
|
$
|
644
|
|
|
|
$
|
631
|
|
|
|
$
|
2,480
|
|
|
|
$
|
2,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
217
|
|
|
|
$
|
195
|
|
|
|
$
|
823
|
|
|
|
$
|
826
|
|
Operating margin
|
|
|
33.7
|
%
|
|
|
31.0
|
%
|
|
|
33.2
|
%
|
|
|
33.8
|
%
|
Adjusted operating margin
|
|
|
33.7
|
%
|
|
|
31.0
|
%
|
|
|
33.2
|
%
|
|
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
(18
|
)
|
|
|
$
|
(13
|
)
|
|
|
$
|
(62
|
)
|
|
|
$
|
(51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
$
|
(82
|
)
|
|
|
$
|
(90
|
)
|
|
|
$
|
(321
|
)
|
|
|
$
|
(355
|
)
|
Merger, integration and other costs
|
|
|
16
|
|
|
|
9
|
|
|
|
55
|
|
|
|
37
|
|
Severance costs
|
|
|
4
|
|
|
|
11
|
|
|
|
15
|
|
|
|
24
|
|
Amortization of acquisition-related intangible assets
|
|
|
39
|
|
|
|
45
|
|
|
|
158
|
|
|
|
194
|
|
Adjusted operating loss
|
|
|
$
|
(23
|
)
|
|
|
$
|
(25
|
)
|
|
|
$
|
(93
|
)
|
|
|
$
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See page 3 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,
|
|
|
|
2016
|
|
2015
|
Cash flows from operating activities
|
|
|
|
|
|
Net income
|
|
|
$
|
930
|
|
|
$
|
712
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and other amortization
|
|
|
253
|
|
|
223
|
|
Amortization of acquisition-related intangible assets
|
|
|
158
|
|
|
194
|
|
Share-based compensation
|
|
|
68
|
|
|
65
|
|
Excess tax benefits from share-based awards
|
|
|
(51
|
)
|
|
(38
|
)
|
Deferred income taxes
|
|
|
21
|
|
|
20
|
|
Income from investment in unconsolidated affiliate
|
|
|
(147
|
)
|
|
(32
|
)
|
Dividends from unconsolidated affiliate
|
|
|
151
|
|
|
36
|
|
Non-cash impairment charges
|
|
|
17
|
|
|
6
|
|
Loss on early debt extinguishment
|
|
|
-
|
|
|
85
|
|
Other operating activities
|
|
|
(2
|
)
|
|
(1
|
)
|
Changes in assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
Trade accounts receivable
|
|
|
(88
|
)
|
|
(2
|
)
|
Prepaid expenses and other assets
|
|
|
(68
|
)
|
|
(66
|
)
|
Accounts payable and other liabilities
|
|
|
178
|
|
|
148
|
|
Deferred revenue
|
|
|
11
|
|
|
(4
|
)
|
Net cash provided by operating activities
|
|
|
1,431
|
|
|
1,346
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Capital expenditures, including capitalization of software costs
|
|
|
(290
|
)
|
|
(359
|
)
|
Payments for acquisitions of businesses
|
|
|
(265
|
)
|
|
-
|
|
Other investing activities
|
|
|
1
|
|
|
(1
|
)
|
Net cash used in investing activities
|
|
|
(554
|
)
|
|
(360
|
)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Debt proceeds
|
|
|
2,126
|
|
|
3,121
|
|
Debt repayments, including redemption and other costs
|
|
|
(1,863
|
)
|
|
(2,707
|
)
|
Proceeds from issuance of treasury stock
|
|
|
79
|
|
|
71
|
|
Purchases of treasury stock, including employee shares withheld
for tax obligations
|
|
|
(1,245
|
)
|
|
(1,522
|
)
|
Excess tax benefits from share-based awards
|
|
|
51
|
|
|
38
|
|
Other financing activities
|
|
|
-
|
|
|
(6
|
)
|
Net cash used in financing activities
|
|
|
(852
|
)
|
|
(1,005
|
)
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
25
|
|
|
(19
|
)
|
Cash and cash equivalents, beginning balance
|
|
|
275
|
|
|
294
|
|
Cash and cash equivalents, ending balance
|
|
|
$
|
300
|
|
|
$
|
275
|
|
|
Fiserv, Inc.
|
Condensed Consolidated Balance Sheets
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
300
|
|
|
|
$
|
275
|
Trade accounts receivable - net
|
|
|
902
|
|
|
|
802
|
Prepaid expenses and other current assets
|
|
|
526
|
|
|
|
429
|
Total current assets
|
|
|
1,728
|
|
|
|
1,506
|
|
|
|
|
|
|
|
Property and equipment - net
|
|
|
405
|
|
|
|
396
|
Intangible assets - net
|
|
|
1,833
|
|
|
|
1,872
|
Goodwill
|
|
|
5,373
|
|
|
|
5,200
|
Other long-term assets
|
|
|
404
|
|
|
|
366
|
Total assets
|
|
|
$
|
9,743
|
|
|
|
$
|
9,340
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
1,242
|
|
|
|
$
|
1,024
|
Current maturities of long-term debt
|
|
|
95
|
|
|
|
5
|
Deferred revenue
|
|
|
483
|
|
|
|
473
|
Total current liabilities
|
|
|
1,820
|
|
|
|
1,502
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
4,467
|
|
|
|
4,288
|
Deferred income taxes
|
|
|
762
|
|
|
|
726
|
Other long-term liabilities
|
|
|
153
|
|
|
|
164
|
Total liabilities
|
|
|
7,202
|
|
|
|
6,680
|
Shareholders' equity
|
|
|
2,541
|
|
|
|
2,660
|
Total liabilities and shareholders' equity
|
|
|
$
|
9,743
|
|
|
|
$
|
9,340
|
|
|
|
|
|
|
|
Fiserv, Inc.
Selected Non-GAAP Financial Measures
($ in millions, unaudited)
|
|
|
|
|
|
|
|
Internal Revenue Growth 1
|
|
|
Three Months Ended December 31, 2016
|
|
|
Year Ended December 31, 2016
|
Payments Segment
|
|
|
6%
|
|
|
6%
|
Financial Segment
|
|
|
2%
|
|
|
2%
|
Total Company
|
|
|
4%
|
|
|
4%
|
|
|
|
|
|
|
|
1 Internal revenue growth is measured as the increase
in adjusted revenue (see page 7) for the current period excluding
acquired revenue and revenue attributable to dispositions, divided
by adjusted revenue from the prior year period excluding revenue
attributable to dispositions. In the fourth quarter of 2016,
acquired revenue was $25 million (all in the Payments segment),
and revenue in the comparable prior year period attributable to
dispositions was $2 million (all in the Financial segment). Full
year 2016 acquired revenue was $89 million (all in the Payments
segment), and revenue in the comparable prior year period
attributable to dispositions was $8 million (all in the Financial
segment).
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
Net cash provided by operating activities
|
|
|
$
|
1,431
|
|
|
$
|
1,346
|
|
Capital expenditures 1
|
|
|
(290
|
)
|
|
(359
|
)
|
Other adjustments 1, 2
|
|
|
(57
|
)
|
|
19
|
|
Free cash flow
|
|
|
$
|
1,084
|
|
|
$
|
1,006
|
|
|
|
|
|
|
|
|
|
|
|
1 2015 includes $70 million of capital expenditures,
primarily leasehold improvements and furniture and equipment
related to the company's Atlanta facility consolidation, of which
$25 million is offset by landlord reimbursements reported in net
cash provided by operating activities, and $45 million of
non-reimbursable building expenditures is included in "other
adjustments."
|
|
|
|
|
|
|
|
|
|
|
2 Free cash flow excludes tax-effected severance,
merger and integration payments; certain cash distributions from
StoneRiver; cash tax benefits on early debt extinguishment; and
other items which management believes may not be indicative of the
future free cash flow of the company. "Other adjustments" removes
cash distributions, net of related tax payments, from StoneRiver
of $99 million and $20 million in 2016 and 2015, respectively.
|
|
|
|
|
|
|
|
|
|
|
See page 3 for disclosures related to the use of non-GAAP
financial measures.
|
|
Fiserv, Inc. Forward-Looking Non-GAAP Financial Measures
Internal Revenue Growth - The company's internal revenue growth
outlook for 2017 excludes the effects of acquisitions and dispositions
and the impact of postage reimbursements in its Output Solutions
business, and includes deferred revenue purchase accounting adjustments.
These adjustments are subject to variability and are anticipated to
impact 2017 revenue growth by approximately 1 percent.
Adjusted Earnings Per Share - The company's adjusted earnings per
share outlook for 2017 excludes certain non-cash or other items to
enhance shareholders' ability to evaluate the company's performance as
such measures provide additional insights into the factors and trends
affecting its business. Non-cash or other items may be significant and
include, but are not limited to, non-cash deferred revenue adjustments
arising from acquisitions, non-cash intangible asset amortization
expense associated with acquisitions, non-cash impairment charges, gains
or losses from unconsolidated affiliates, severance costs, charges
associated with early debt extinguishment, merger and integration costs
related to acquisitions, and certain costs associated with the
achievement of the company's operational effectiveness objectives. The
company estimates that the annual amortization expense with respect to
acquired intangible assets recorded at December 31, 2016 will
approximate $150 million in 2017. Other adjustments to earnings per
share that have been incurred in 2016 are presented on page 6. Estimates
of these other adjustments on a forward-looking basis are not available
due to the variability, complexity and low visibility of these items.
See page 3 for disclosures related to the use of non-GAAP financial
measures.
FISV-E
View source version on businesswire.com: http://www.businesswire.com/news/home/20170208006131/en/
[ Back To TMCnet.com's Homepage ]
|