(Source: Business Wire)

FIS (NYSE:FIS), a leading global provider of technology services to
financial institutions, today reported financial results for the quarter
ended September 30, 2009.
Consolidated revenue of $850.7 million declined 3.8% in U.S. dollars and
1.9% in constant currency compared to $884.0 million in the third
quarter of 2008. The adjusted EBITDA margin expanded 250 basis points to
27.7%. Non-GAAP adjusted net earnings per share increased 12.2% to $0.46
per share in U.S. dollars, compared to $0.41 in the prior year, and
increased 14.6% in constant currency. The increase is due primarily to
improved operating performance across all major business lines, which
offset a higher average diluted share count in the third quarter of
2009. GAAP net earnings from continuing operations attributable to
common stockholders totaled $67.6 million, or $0.35 per share, compared
to $0.23 per share in the prior period. Free cash flow (cash from
operations less capital expenditures) was $132.8 million compared with
$118.2 million in the prior year quarter.
FIS completed the acquisition of Metavante Technologies, Inc. (NYSE: MV)
on October 1, 2009. Metavante's operations will be included in the FIS
results prospectively, beginning in the fourth quarter of 2009.
"While revenue growth remains challenging in the current economic
environment, we continue to drive strong margin expansion, double-digit
growth in earnings per share and excellent free cash flow. We are
confident in our ability to drive solid organic top line growth and
realize strong operating leverage when the banking industry recovers,"
stated William P. Foley, II, executive chairman. "With the successful
completion of the Metavante acquisition, FIS will be even better
positioned to compete on a global basis and deliver strong financial
performance."
Frank Martire, president and chief executive officer of FIS added, "We
are very excited about the future of this great company. We remain
highly focused on meeting our customers' needs, driving operational
excellence and building long-term value."
Supplemental Information
Consolidated revenue in the third quarter of 2009 was $850.7 million,
compared with $884.0 in the prior year quarter, a decrease of 3.8% in
U.S. dollars. Excluding a $16.8 million unfavorable impact of foreign
currency, consolidated revenue declined 1.9%. The decline was primarily
due to lower license and professional services revenue, coupled with
nonrecurring interchange adjustments and card marketing revenue recorded
in the prior year quarter.
Financial Solutions revenue declined 7.3% to $278.2 million compared
to $300.2 million in the prior period, due to lower software license
and professional services revenue.
Payment Solutions revenue declined 5.0% to $369.5 million compared to
$389.1 million in the 2008 quarter, due to ongoing weakness in
consumer spending and lower item processing volumes. The growth rate
was also impacted by a nonrecurring interchange adjustment and
particularly strong card marketing revenue in the third quarter of
2008.
International Solutions revenue increased 4.1% to $203.5 million in
U.S. dollars, and 12.7% in constant currency compared to $195.4
million in the prior year quarter. Core processing revenue increased
14.3% driven by strong services revenue and volumes in Asia Pacific
and EMEA, while payments revenue increased 11.8% driven by organic
account growth across all regions.
Adjusted EBITDA
increased 5.6% to $235.3 million in the third quarter of 2009 compared
to $222.8 million in the 2008 quarter. The adjusted EBITDA margin
improved 250 basis points to 27.7% compared to 25.2% in the prior-year
quarter, driven by ongoing expense management across all operating
segments.
Financial Solutions EBITDA decreased 1.7% to $126.6 million due to
lower software sales and professional services revenue, while the
margin improved 260 basis points to 45.5% compared to 42.9% in the
prior year.
Payment Solutions EBITDA increased 2.8% to $108.3 million, and the
margin increased 220 basis points to 29.3% compared to 27.1% in the
prior year.
International EBITDA increased 57.1% to $42.9 million. The EBITDA
margin improved 710 basis points to 21.1% compared to 14.0% in the
prior year, as account growth and productivity improvements more than
offset a $3.7 million unfavorable currency impact
The
effective tax rate in the third quarter of 2009 was 34.4% compared to
34.9% in the third quarter of 2008.
Balance Sheet
FIS had $205.6 million in cash and cash equivalents at September 30,
2009. The company repaid $153.7 million of debt during the third
quarter, reducing total debt outstanding to $2.1 billion, the majority
of which has been swapped to fixed interest rates. The effective
interest rate was 5.9% as of September, 2009. Total debt outstanding
increased to $3.4 billion in conjunction with the October 1, 2009
acquisition of Metavante.
Capital expenditures totaled $49.4 million in the quarter, compared to
$48.2 million spent in the prior year.
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 depreciation 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 third
quarter 2009 results on Wednesday, October 21, 2009, beginning at 5:00
p.m. Eastern daylight time. To register for the live event and to access
a supplemental slide presentation, go to the Investor Relations section
at www.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 November 4, 2009, by dialing 800-475-6701 (USA) or
320-365-3844 (International). The access code will be 117478. To access
a PDF version of this release and accompanying financial tables, go to http://www.investor.fidelityinfoservices.com.
About FIS
FIS delivers banking and payments technologies to more than 14,000
financial institutions and businesses in more than 90 countries
worldwide. FIS provides financial institution core processing, and card
issuer and transaction processing services, including the NYCE Network.
FIS maintains processing and technology relationships with 40 of the top
50 global banks, including nine of the top 10. FIS is a member of
Standard and Poor's (S&P) 500® Index and has been ranked
the number one overall financial technology provider in the world by The
American Banker newspaper and the research firm Financial Insights
in their annual "FinTech 100" rankings. Headquartered in Jacksonville,
Fla., FIS employs approximately 30,000 on a global basis. FIS is listed
on the New York Stock Exchange under the "FIS" ticker symbol. For more
information about FIS see www.fidelityinfoservices.com.
Forward-Looking Statements
This press release contains statements related to FIS' future plans and
expectations, and, as such, constitutes "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995, Section27A of the Securities Act of 1933, as amended, and
Section21E of the Securities Exchange Act of 1934, as amended.
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; 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; failures to adapt our services to changes in
technology or in the marketplace; the failure to achieve some or all of
the benefits that we expect from the acquisition of Metavante, including
the possibility that our acquisition of Metavante may not be accretive
to our earnings due to undisclosed liabilities, management or
integration issues, loss of customers, the inability to achieve targeted
cost savings, or other factors; our potential inability to find suitable
acquisition candidates or 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 ("SEC") that are available
on the SEC's web site located at www.sec.gov.
All forward-looking statements included in this document are based on
information available at the time of the document. FIS assumes no
obligation to update any forward-looking statement.
FIS-e
Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
October 21, 2009
(Unaudited)
Exhibit A Consolidated Statements of Earnings for the Three and Nine Months ended September 30, 2009 and 2008
Exhibit B Consolidated Balance Sheets as of September 30, 2009 and December 31, 2008
Exhibit C Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008
Exhibit D Supplemental Non-GAAP Financial Information for the Three and Nine Months Ended September 30, 2009 and 2008
Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the Three and Nine Months Ended September 30, 2009 and 2008
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Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.