Adjusted EPS of $0.31, up 19.2%
JACKSONVILLE, Fla., April 28 /PRNewswire-FirstCall/ --
Fidelity National Information Services, Inc. (NYSE:FIS), a leading global provider of technology services to financial institutions, today reported financial results for the quarter ended March 31, 2009.
Consolidated revenue of $797.8 million declined 3.9% in U.S. dollars and increased 0.3% in constant currency compared to $830.3 million in the first quarter of 2008. Non-GAAP adjusted net earnings increased 19.2% to $0.31 per share in U.S. dollars, compared to $0.26 in the prior year, and increased 23.1% in constant currency. The increase is attributable to improved operating performance, lower interest expense and a lower share count, partially offset by a slightly higher tax rate. GAAP net earnings from continuing operations attributable to common stockholders totaled $34.3 million, or $0.18 per share compared to $0.06 per share in the prior period. Free cash flow (cash from operations less capital expenditures) was $119.2 million compared with $4.9 million in the prior year quarter.
"FIS's strong first quarter performance in the midst of ongoing economic uncertainty reflects the continued solid execution of our business plan and the strength of our operating model," stated William P. Foley, II, executive chairman of FIS.
"We are very pleased with the strong growth in earnings, profit margins and free cash flow," stated Lee A. Kennedy, president and chief executive officer. "Despite very difficult market conditions, our disciplined focus on improving efficiency and managing costs drove a 100 basis point improvement in our EBITDA margin, and contributed to the 19.2% increase in earnings per share. Although we expect challenging market conditions to persist throughout 2009, we remain confident in our ability to achieve solid earnings growth and strong free cash flow."
Supplemental Information
Consolidated revenue in the first quarter of 2009 was $797.8 million, compared with $830.3 in the prior year quarter, a decrease of 3.9% in U.S. dollars. Excluding a $34.9 million unfavorable impact of foreign currency resulting from a strengthening of the U.S. dollar, consolidated revenue increased 0.3% driven by strong growth in International.
-- Financial Solutions revenue declined 3.2% to $271.3 million compared
to $280.4 million in the prior period, as increased demand for risk
management and commercial outsourcing services was offset by lower
software license and professional services revenue;
-- Payment Solutions revenue declined 2.3% to $364.7 million compared to
$373.3 million in the 2008 quarter, due primarily to a $9.7 million
decline in the company's retail check guarantee business. Excluding
Check Services' revenue from both periods, Payment Solutions revenue
increased 0.4%;
-- International revenue declined 8.3% to $162.3 million in U.S. dollars,
compared to $176.9 million in the prior year quarter. International
revenue increased 11.5% in constant currency, driven by 16.3% growth
in payments and 4.5% growth in financial solutions.
Adjusted EBITDA increased 0.7% to $181.2 million in the first quarter of 2009 compared to $180.0 million in the 2008 quarter. The adjusted EBITDA margin improved 100 basis points to 22.7% compared to 21.7% in the prior-year quarter, driven by increased operating leverage and ongoing expense management.
-- Financial Solutions EBITDA declined 2.9% to $102.0 million, due
primarily to a decline in high margin software sales. The 37.6%
margin was comparable to the prior period;
-- Payment Solutions EBITDA increased 11.5% to $95.2 million, and the
margin increased 320 basis points to 26.1%. The improvement is
attributable to increased operating efficiency;
-- International EBITDA decreased 8.6% to $23.4 million due to a $5.2
million unfavorable currency impact. The International margin of
14.4% was comparable to prior year.
The effective tax rate in the first quarter of 2009 was 34.5% compared to 33.1% in the first quarter of 2008.
Balance Sheet
FIS had $272.0 million in cash and cash equivalents at March 31, 2009. The company repaid $54.0 million of debt during the first quarter, reducing total debt outstanding to $2.46 billion, of which $2.1 billion has been swapped to fixed interest rates. The effective interest rate was 5.2% as of March 31, 2009.
Continuing an intensive focus on capital spending, capital expenditures totaled $45.3 million in the quarter, which is a 42% reduction from the $78.3 million spent in the prior year.
Acquisition Update
On April 1, 2009, FIS announced plans to acquire Metavante Technologies, Inc. (NYSE:MV). The transaction is subject to approval by FIS and Metavante shareholders, receipt of regulatory approvals and the satisfaction of customary closing conditions. Subject to receiving the required approvals, FIS expects to complete the transaction in the third quarter of 2009.
2009 Outlook
FIS reaffirmed its full year outlook for adjusted net earnings of $1.60 to $1.66 per share. This guidance does not reflect the proposed acquisition of Metavante. FIS will update its fiscal 2009 guidance to include Metavante's results following the completion of the transaction.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the company has provided non-GAAP financial measures which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and amortization (EBITDA), adjusted net earnings, and free cash flow. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, LPS spin-off related costs, certain stock compensation charges, acquisition related amortization and certain other costs. 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's non-GAAP measures may be calculated differently from similarly-titled measures of other companies. A reconciliation of these non-GAAP measures to related GAAP measures is included in the press release attachments.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss first quarter 2009 results on Wednesday, April 29, 2009, beginning at 8:30 a.m. Eastern daylight time. To register for the live event and to access a supplemental slide presentation, go to the Investor Relations section at http://www.fidelityinfoservices.com/ and click on "Events and Multimedia." A webcast replay will be available on FIS' Investor Relations website, and a telephone replay will be available through May 13, 2009, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 996633. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fidelityinfoservices.com/.
About Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (NYSE:FIS), a member of the S&P 500 Index, is a leading provider of core processing for financial institutions; card issuer and transaction processing services; and outsourcing services to financial institutions and retailers. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10 and was ranked the number one banking technology provider in the world by American Banker and the research firm Financial Insights in the 2008 FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 14,000 financial institutions in more than 90 countries worldwide. For more information on Fidelity National Information Services, please visit http://www.fidelityinfoservices.com/.
Forward-Looking Statements
This press release contains forward-looking statements, including certain plans, expectations, goals and projections, and statements about FIS's acquisition of Metavante, which are subject to numerous assumptions, risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. The risks and uncertainties that forward-looking statements are subject to include, without limitation: changes in general economic, business and political conditions, including changes in the financial markets; the effect of governmental regulations, including the possibility that there are unexpected delays in obtaining regulatory approvals; the failure to obtain required transaction approvals from FIS's and Metavante's shareholders; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in the banking, retail and financial services industries or due to financial failures suffered by firms in those industries; actions that may be taken by the competitors, customers and suppliers of FIS or Metavante that may cause the transaction to be delayed or not completed; failures to adapt our services to changes in technology or in the marketplace; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions; competitive pressures on product pricing and services; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K and other filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available at the time of the document. FIS assumes any obligation to update any forward-looking statement.
FIS-e
Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
April 28, 2009
(Unaudited)
Exhibit A Consolidated Statements of Earnings for the Three Months Ended
March 31, 2009 and 2008
Exhibit B Consolidated Balance Sheets as of March 31, 2009 and December
31, 2008
Exhibit C Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 2009 and 2008
Exhibit D Supplemental Non-GAAP Financial Information for the Three
Months Ended March 31, 2009 and 2008
Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for
the Three Months Ended March 31, 2009 and 2008
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In millions, except per share data)
Three months ended March 31,
---------------------------
2009 2008
---- ----
Processing and services revenues $797.8 $830.3
Cost of revenues 594.3 648.7
Selling, general and
administrative expenses 99.0 111.1
Research and development costs 22.6 19.3
---- ----
Operating income 81.9 51.2
Other income (expense):
Interest income 0.8 2.8
Interest expense (32.0) (38.8)
Other income (expense) 1.2 (1.2)
----- -----
Total other income (expense) (30.0) (37.2)
---- ----
Earnings from continuing operations
before income taxes 51.9 14.0
Provision for income taxes 17.9 3.3
---- ----
Net earnings from
continuing operations 34.0 10.7
(Loss) earnings from
discontinued operations,
net of tax (1.3) 59.6
---- ----
Net earnings 32.7 70.3
Net loss attributable
to noncontrolling interest 0.3 0.2
--- ---
Net earnings attributable
to FIS $33.0 $70.5
===== =====
Net earnings per share-basic
from continuing operations
attributable to FIS
common stockholders * $0.18 $0.06
Net earnings per share-basic
from discontinued operations
attributable to FIS
common stockholders * (0.01) 0.30
----- -----
Net earnings per share-basic
attributable to FIS
common stockholders * $0.17 $0.36
===== =====
Weighted average shares
outstanding-basic 190.0 194.5
===== =====
Net earnings per share-diluted
from continuing operations
attributable to FIS
common stockholders * $0.18 $0.06
Net earnings per share-diluted
from discontinued operations
attributable to FIS
common stockholders * (0.01) 0.30
---- ----
Net earnings per share-diluted
attributable to FIS
common stockholders * $0.17 $0.36
===== =====
Weighted average shares
outstanding-diluted 191.6 196.5
===== =====
Amounts attributable to FIS
common stockholders:
Net earnings from
continuing operations,
net of tax $34.3 $10.9
(Loss) earnings from
discontinued operations,
net of tax (1.3) 59.6
---- ----
Net earnings $33.0 $70.5
===== =====
* Amounts may not sum due to rounding.
Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
As of As of
March 31, December 31,
2009 2008
---------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $272.0 $220.9
Settlement deposits 39.2 31.4
Trade receivables, net 498.8 538.1
Settlement receivables 42.7 52.1
Other receivables 86.3 121.1
Receivable from FNF and LPS 11.2 10.1
Prepaid expenses and other
current assets 99.1 115.1
Deferred income taxes 62.3 91.0
---- ----
Total current assets 1,111.6 1,179.8
------- -------
Property and equipment, net of
accumulated depreciation
and amortization 269.6 272.6
Goodwill 4,190.1 4,194.0
Other intangible assets,
net of accumulated amortization 893.1 924.3
Computer software,
net of accumulated amortization 613.0 617.0
Deferred contract costs 237.2 241.2
Long-term notes receivable from FNF 5.3 5.5
Other noncurrent assets 72.1 79.6
---- ----
Total assets $7,392.0 $7,514.0
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and
accrued liabilities $370.7 $480.5
Settlement payables 82.4 83.3
Current portion of long-term debt 132.8 105.5
Deferred revenues 192.5 182.9
----- -----
Total current liabilities 778.4 852.2
----- -----
Deferred revenues 87.9 86.7
Deferred income taxes 326.6 346.3
Long-term debt, excluding
current portion 2,327.7 2,409.0
Other long-term liabilities 147.5 122.8
----- -----
Total liabilities 3,668.1 3,817.0
------- -------
Stockholders' equity:
FIS stockholders' equity:
Preferred stock $0.01 par value - -
Common stock $0.01 par value 2.0 2.0
Additional paid in capital 2,961.6 2,959.8
Retained earnings 1,099.6 1,076.1
Accumulated other
comprehensive (loss) earnings (111.3) (102.3)
Treasury stock (391.4) (402.8)
------ ------
Total FIS stockholders'
equity 3,560.5 3,532.8
Noncontrolling interest 163.4 164.2
----- -----
Total stockholders' equity 3,723.9 3,697.0
------- -------
Total liabilities and
stockholders' equity $7,392.0 $7,514.0
======== ========
Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(In millions)
Three months ended March 31,
---------------------------
2009 2008
---- ----
Cash flows from operating activities:
Net earnings $33.0 $70.5
Adjustment to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 92.0 124.1
Amortization of debt issue costs 0.9 1.4
Net gain on sale of non-strategic businesses - (4.0)
Stock-based compensation cost 9.5 26.4
Deferred income taxes 1.3 6.8
Income tax benefit from exercise of stock
options (0.1) (0.4)
Equity in loss of unconsolidated entities - 2.0
Noncontrolling interest (0.3) 0.1
Changes in assets and liabilities,
net of effects from acquisitions:
Net decrease (increase) in trade
receivables 68.9 (8.1)
Net decrease (increase) in prepaid
expenses and other assets 19.1 (12.0)
Additions to deferred contract costs (10.9) (22.0)
Net increase in deferred revenue 16.0 4.6
Net decrease in accounts payable, accrued
liabilities and other liabilities (66.5) (21.2)
----- -----
Net cash provided by operating activities 162.9 168.2
----- -----
Cash flows from investing activities:
Additions to property and equipment (15.0) (24.3)
Additions to capitalized software (30.3) (65.3)
Net proceeds from sale of company assets - 6.0
Acquisitions, net of cash acquired (3.0) (1.9)
---- ----
Net cash used in investing activities (48.3) (85.5)
----- -----
Cash flows from financing activities:
Borrowings 541.7 1,283.6
Debt service payments (595.9) (1,381.4)
Dividends paid (9.5) (9.7)
Income tax benefit from exercise
of stock options 0.1 0.4
Stock options exercised 3.7 6.0
Treasury stock purchases - (9.9)
----- -----
Net cash used in financing activities (59.9) (111.0)
----- ------
Effect of foreign currency exchange rates
on cash (3.6) 1.0
Net increase (decrease) in cash and
cash equivalents 51.1 (27.3)
Cash and cash equivalents, at beginning
of period 220.9 355.3
----- -----
Cash and cash equivalents, at end of period $272.0 $328.0
====== ======
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(In millions)
1. Revenue, EBIT and EBITDA
Three Months Ended March 31, 2009
---------------------------------
Financial Payment Inter- Corporate
Solutions Solutions national and Other Consolidated
--------- --------- -------- --------- ------------
Revenue from
Continuing
Operations $271.3 $364.7 $162.3 $(0.5) $797.8
Operating
Income $73.6 $84.1 $10.2 $(86.0) $81.9
M&A, Restruct-
uring and
Integration
Costs - - - 7.3 7.3
----- ----- ----- ----- -----
EBIT, as
adjusted $73.6 $84.1 $10.2 $(78.7) $89.2
===== ===== ===== ====== =====
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 28.4 11.1 13.2 39.3 92.0
---- ---- ---- ---- ----
EBITDA, as
adjusted $102.0 $95.2 $23.4 $(39.4) $181.2
====== ===== ===== ====== ======
EBIT Margin,
as adjusted 27.1% 23.1% 6.3% N/M% 11.2%
==== ==== === === ====
EBITDA Margin,
as adjusted 37.6% 26.1% 14.4% N/M% 22.7%
==== ==== ==== === ====
Three Months Ended March 31, 2008
---------------------------------
Financial Payment Inter- Corporate
Solutions Solutions national and Other Consolidated
--------- --------- -------- --------- ------------
Revenue from
Continuing
Operations $280.4 $373.3 $176.9 $(0.3) $830.3
Operating
Income $69.5 $70.9 $12.2 $(101.4) $51.2
M&A,
Restructuring
and Integration
Costs - - - 15.0 15.0
Corporate Costs
Non-Disc. Ops - - - 9.0 9.0
LPS Spin-off
Costs - - - 2.9 2.9
----- ----- ----- ----- -----
EBIT, as
adjusted $69.5 $70.9 $12.2 $(74.5) $78.1
===== ===== ===== ====== =====
Depreciation and
Amortization from
Continuing
Operations, as
adjusted 35.6 14.5 13.4 38.4 101.9
---- ---- ---- ---- -----
EBITDA, as
adjusted $105.1 $85.4 $25.6 $(36.1) $180.0
====== ===== ===== ====== ======
EBIT Margin,
as adjusted 24.8% 19.0% 6.9% N/M% 9.4%
==== ==== === === ===
EBITDA Margin,
as adjusted 37.5% 22.9% 14.5% N/M% 21.7%
==== ==== ==== === ====
Total Revenue Growth from Prior Year Period
Three Months
Ended
March 31,
2009 -3.2% -2.3% -8.3% N/M% -3.9%
==== ==== ==== === ====
Three Months
Ended
March 31,
2008 20.0% 27.0% 28.0% N/M% 24.9%
==== ==== ==== === ====
Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF PRO FORMA TO ADJUSTED PRO FORMA CASH FLOW MEASURES -
UNAUDITED
(In millions)
Quarter Ended March 31, 2009
----------------------------
GAAP Adj Adjusted
---- --- --------
Cash flows from
operating activities:
Net earnings (2) $33.0 $4.8 $37.8
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Non-cash adjustments 103.2 - 103.2
Working capital adjustments (3) 26.7 (3.2) 23.5
---- ---- ----
Net cash provided by
operating activities 162.9 1.6 164.5
Capital expenditures (45.3) - (45.3)
----- ----- -----
Net free cash flow $117.6 $1.6 $119.2
====== ==== ======
Quarter Ended March 31, 2008
----------------------------
Pro forma (1) Adj Adj Pro forma
------------- --- -------------
Cash flows from
operating activities:
Net earnings (4) $15.4 $8.3 $23.7
Adjustments to
reconcile net earnings
to net cash provided by
operating activities:
Non-cash adjustments 114.0 - 114.0
Working capital adjustments (3) (100.8) 46.3 (54.5)
------ ---- -----
Net cash provided by
operating activities 28.6 54.6 83.2
Capital expenditures (78.3) - (78.3)
----- ----- -----
Net free cash flow $(49.7) $54.6 $4.9
====== ===== ====
(1) Pro forma cash flows are presented as if the LPS spin-off was
completed on January 1, 2008 and represents FIS on a post-spin basis.
(2) Adjustments to Net Earnings reflect the elimination of the after-tax
impact of non-recurring M&A and related integration costs.
(3) Adjustments to working capital reflect elimination of settlement of
various acquisition related liabilities and for the 2009 period, the
elimination of current accruals related to the announced acquisition
of Metavante.
(4) Adjustments to Net Earnings reflect the elimination of the after-tax
impact of non-recurring M&A and related integration costs, costs
associated with the LPS spin-off, restructuring costs and the
elimination of corporate costs attributable to LPS.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
M&A
Restruc-
GAAP turing Non-GAAP
Three And Purchase Three
Months Integra- Price Months
Ended tion Sub- Amorti- Ended
March 31, Costs(1) total zation(4) March 31,
2009 2009
(Unaudited) (Unaudited)
--------- ------- ----- -------- ---------
Processing and
services revenue $797.8 $- $797.8 $- $797.8
Cost of revenues 594.3 - 594.3 (30.1) 564.2
----- ---- ----- ----- -----
Gross profit 203.5 - 203.5 30.1 233.6
----- ---- ----- ---- -----
Selling, general and
administrative 99.0 (7.3) 91.7 - 91.7
Research and
development costs 22.6 - 22.6 - 22.6
---- ---- ---- ---- ----
Operating income 81.9 7.3 89.2 30.1 119.3
---- --- ---- ---- -----
Other income (expense):
Interest income 0.8 - 0.8 - 0.8
Interest expense (32.0) - (32.0) - (32.0)
Other income, net 1.2 - 1.2 - 1.2
--- --- --- --- ---
Total other income
(expense) (30.0) - (30.0) - (30.0)
----- ----- ----- ----- -----
Earnings from
continuing
operations
before income
taxes, 51.9 7.3 59.2 30.1 89.3
Provision (benefit)
for income taxes 17.9 2.5 20.4 10.4 30.8
---- ---- ---- ---- ----
Earnings from
continuing
operations 34.0 4.8 38.8 19.7 58.5
Loss from
discontinued
operations (1.3) - (1.3) - (1.3)
---- ---- ---- ---- ----
Net earnings 32.7 4.8 37.5 19.7 57.2
Noncontrolling
interest 0.3 - 0.3 - 0.3
--- --- --- --- ---
Net earnings
attributable
to FIS $33.0 $4.8 $37.8 $19.7 $57.5
===== ==== ===== ===== =====
Amounts
attributable
to FIS common
stockholders
Net earnings
from continuing
operations,
net of tax $34.3 $4.8 $39.1 $19.7 $58.8
(Loss) earnings
from discontinued
operations,
net of tax (1.3) - (1.3) - (1.3)
---- ---- ---- ---- ----
Net earnings $33.0 $4.8 $37.8 $19.7 $57.5
===== ==== ===== ===== =====
Net earnings per
share - diluted
from continuing
operations
attributable
to FIS common
stockholders* $0.18 $0.03 $0.20 $0.10 $0.31
===== ===== ===== ===== =====
Weighted average
shares
outstanding -
diluted 191.6 191.6 191.6 191.6 191.6
===== ===== ===== ===== =====
Supplemental Information:
Depreciation and
amortization from
continuing operations $92.0 $(30.1) $61.9
===== ====== =====
Stock compensation expense
from continuing operations,
excluding acceleration charges $9.5
Stock acceleration charges -
----
Total stock compensation
expense from continuing
operations $9.5
====
* Amounts may not sum due to rounding.
See accompanying notes.
Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION - UNAUDITED
(in millions, except per share data)
M&A
Restruc- Corp-
GAAP turing orate Non-GAAP
Three And Costs Purchase Three
Months Integra- Non- LPS Price Months
Ended tion Disc Spin Sub- Amorti- Ended
March 31, Costs(1) Ops(2) Costs(3) total zation(4) March 31,
2008 2008
(Unaudited) (Unaudited)
--------- ------- ----- ------- ----- -------- ---------
Processing
and services
revenue $830.3 $- $- $- $830.3 $- $830.3
Cost of
revenues 648.7 - - - 648.7 (36.5) 612.2
----- ---- ---- ---- ----- ----- -----
Gross
profit 181.6 - - - 181.6 36.5 218.1
----- ---- ---- ---- ----- ---- -----
Selling,
general and
adminis-
trative 111.1 (15.0) (9.0) (2.9) 84.2 - 84.2
Research and
development
costs 19.3 - - - 19.3 - 19.3
---- ---- ---- ---- ---- ---- ----
Operating
income 51.2 15.0 9.0 2.9 78.1 36.5 114.6
---- ---- --- --- ---- ---- -----
Other income
(expense):
Interest
income 2.8 - - - 2.8 - 2.8
Interest
expense (38.8) - - - (38.8) - (38.8)
Other
income,
net (1.2) - - - (1.2) - (1.2)
---- ---- ---- ---- ---- ---- ----
Total
other
income
(expense)(37.2) - - - (37.2) - (37.2)
----- ---- ---- ---- ----- ---- -----
Earnings
before
income
taxes 14.0 15.0 9.0 2.9 40.9 36.5 77.4
Provision
(benefit)
for income
taxes 3.3 5.5 2.8 1.1 12.7 12.9 25.6
--- --- --- --- ---- ---- ----
Earnings from
continuing
opera-
tions 10.7 9.5 6.2 1.8 28.2 23.6 51.8
Earnings from
discontinued
opera-
tions 59.6 - - - 59.6 - 59.6
---- ---- ---- ---- ---- ---- ----
Net
earnings 70.3 9.5 6.2 1.8 87.8 23.6 111.4
Noncontrolling
Interest 0.2 - - - 0.2 - 0.2
--- --- --- --- --- --- ---
Net earnings
Attributable
to FIS $70.5 $9.5 $6.2 $1.8 $88.0 $23.6 $111.6
===== ==== ==== ==== ===== ===== ======
Amounts attributable
to FIS common stockholders
Net earnings
from continuing
operations,
net of
tax $10.9 $9.5 $6.2 $1.8 $28.4 $23.6 $52.0
(Loss)
earnings from
discontinued
operations,
net of
tax 59.6 - - - 59.6 - 59.6
---- ---- ---- ---- ---- ---- ----
Net
earn-
ings $70.5 $9.5 $6.2 $1.8 $88.0 $23.6 $111.6
===== ==== ==== ==== ===== ===== ======
Net earnings
per share -
diluted from
continuing
operations
attributable
to FIS common
stock-
hold-
ers* $0.06 $0.05 $0.03 $0.01 $0.14 $0.12 $0.26
===== ===== ===== ===== ===== ===== =====
Weighted
average
shares
outstanding -
dilut-
ed 196.5 196.5 196.5 196.5 196.5 196.5 196.5
===== ===== ===== ===== ===== ===== =====
Supplemental Information:
Depreciation and amortization
from continuing operations $101.9 $(36.5) $65.4
====== ====== =====
Stock compensation expense
from continuing operations,
excluding acceleration charges $7.8
Stock acceleration charges 14.2
----
Total stock compensation expense
from continuing operations $22.0
=====
* Amounts may not sum due to rounding.
See accompanying notes.
Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the
Three Month Periods ended March 31, 2009 and 2008
The adjustments are as follows:
(1) This column represents charges for restructuring and integration costs
relating to merger and acquisition activities. For the period
ended March 31, 2009, the amounts represent incremental transaction
costs incurred by the Company related to the previously announced
acquisition of Metavante Technologies, Inc.
(2) This column represents corporate costs attributable to LPS as
previously reported in our investor package furnished on form 8-K
on May 28, 2008. These amounts are not allocable to discontinued
operations under U.S. Generally Accepted Accounting Principles.
(3) This column represents incremental transaction costs incurred by the
Company directly related to the LPS spin-off.
(4) This column represents purchase price amortization expense on
intangibles assets acquired through various Company acquisitions.
DATASOURCE: Fidelity National Information Services, Inc.
CONTACT: Mary Waggoner, Senior Vice President, Investor Relations,
+1-904-854-3282, , or Marcia Danzeisen, Senior Vice
President, Market and Corporate Communications, +1-904-854-5083, both of
Fidelity National Information Services, Inc.
Web Site: http://www.fidelityinfoservices.com/