EX-99.1 2 g24077exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(FIS LOGO)
News Release
FIS Reports Solid Second Quarter 2010 Results
Second Quarter Highlights:
    Revenue of $1.29 billion, up 2.4%, as adjusted
 
    EPS of $0.46, as adjusted
 
    EBITDA margin of 29.9%, up 140 basis points, as adjusted
 
    Free cash flow of $108 million, as adjusted
JACKSONVILLE, Fla., July 20, 2010 — FIS (NYSE:FIS), one of the world’s largest providers of banking and payments technology, today reported financial results for the quarter ended June 30, 2010. For comparative purposes, references to pro forma measures for 2009 assume that the October 1, 2009 merger with Metavante Technologies, Inc. was completed on January 1, 2009 and reflect adjustments in a manner consistent with 2010 adjusted results.
Adjusted revenue (which excludes a $5 million negative impact to deferred revenue from purchase accounting) increased 2.4% to $1.29 billion in U.S. dollars in the second quarter of 2010 compared to pro forma revenue of $1.26 billion in the second quarter of 2009, and increased 1.7% in constant currency. Adjusted EBITDA was $385.8 million, 7.2% higher as compared to pro forma EBITDA of $359.8 million in the prior year quarter. The adjusted EBITDA margin expanded 140 basis points to 29.9% driven primarily by synergy cost savings. Adjusted net earnings from continuing operations totaled $176.5 million, or $0.46 per diluted share. Adjusted free cash flow totaled $108 million in the second quarter. On a GAAP basis, second quarter consolidated revenue totaled $1.286 billion. During the quarter, FIS recorded after-tax merger and integration costs and recapitalization costs totaling $41.2 million, or $0.11 per share. The deferred revenue adjustment impacted after-tax earnings by $3.3 million, or $0.01 per share. These combined charges, along with purchase price amortization of intangible assets acquired through various acquisitions, resulted in GAAP net earnings from continuing operations attributable to common stockholders of $90.2 million, or $0.23 per diluted share.
“We are pleased with the solid second quarter operating results, and we remain focused on the goals that we established early in the year,” stated Frank R. Martire, president and chief executive officer of FIS. “Importantly, we are winning in the marketplace and continue to further strengthen our industry leading position.”
“The Metavante integration is proceeding according to plan, and we are well on our way to achieving the $260 million in targeted synergy cost savings,” added William P. Foley, II, executive chairman of FIS. “In addition, we have successfully completed the financing for the previously announced recapitalization plan and we are on track to complete the share repurchase in early August.”
The financing condition to FIS’ previously announced tender offer for shares of its common stock was satisfied by the completion of the financing announced by FIS on July 16, 2010.

 


 

Acquisitions and Discontinued Operations
On October 1, 2009, FIS completed the acquisition of Metavante Technologies, Inc. The transaction was treated as a purchase and the results of Metavante are included in the consolidated results of FIS beginning October 1, 2009. For comparative purposes, in accordance with management’s desire to improve the understanding of the company’s operating performance, the supplemental information provided below assumes the merger was completed on January 1, 2009 and combines Metavante’s results with FIS’s historical results on a pro forma basis.
In addition, FIS completed the sale of its ClearPar automated syndicated loan trade settlement business on January 1, 2010. The results of ClearPar are reported as discontinued operations for all periods presented.
Supplemental Information
The following supplemental information is presented on an adjusted pro forma basis, which management believes provides meaningful comparisons between the periods presented. Reconciliations of non-GAAP measures to related GAAP measures are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
Consolidated second quarter revenue increased 2.4% to $1.291 billion in U.S. dollars, compared with $1.261 billion in the second quarter of 2009. Excluding a $9.2 million favorable foreign currency impact, consolidated revenue increased 1.7%.
      Financial Solutions revenue increased 3.0% to $458.3 million compared to $445.0 million in the 2009 quarter driven by higher professional services revenue and software license fees.
      Payment Solutions revenue of $630.6 million was comparable to $631.1 million in the 2009 quarter as growth in electronic payment solutions was offset by lower item processing and retail check activity.
      International Solutions revenue increased 8.0% to $200.7 million in U.S. dollars, and 3.1% in constant currency compared to $185.8 million in the 2009 quarter. The increase was driven primarily by increased card processing volumes in Brazil. Software and professional services revenue was comparable to prior year.
Adjusted EBITDA increased 7.2% to $385.8 million in the second quarter of 2010 compared to $359.8 million in the 2009 quarter. The adjusted EBITDA margin improved 140 basis points to 29.9% compared to 28.5% in the prior-year quarter, driven primarily by the realization of synergy cost savings and ongoing expense management.
      Financial Solutions EBITDA increased 5.0% to $200.6 million, while the margin improved 90 basis points to 43.8% compared to 42.9% in the prior year quarter.
      Payment Solutions EBITDA increased 4.0% to $232.3 million, and the margin increased 140 basis points to 36.8% compared to 35.4% in the prior year.
      International EBITDA increased 1.1% to $36.4 million. The currency impact was not material to EBITDA. The reported EBITDA margin was 18.1%, and 19.0% in constant currency, compared to 19.4% in the prior year quarter.

 


 

Balance Sheet
FIS had $502 million in cash and cash equivalents and total debt outstanding of approximately $3.0 billion at June 30, 2010.
Capital expenditures totaled $76.0 million in the quarter, compared to $78.9 million in pro forma capital expenditures 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 adjusted revenue, adjusted earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted net earnings, and adjusted free cash flow. Adjusted revenue excludes the impact of deferred revenue purchase accounting. Adjusted EBITDA excludes the impact of merger and acquisition and integration expenses, accelerated stock compensation charges associated with merger and acquisition activity, costs associated with the announced recapitalization plan, and certain other costs. Adjusted net earnings exclude the after-tax impact of merger and acquisition and integration expenses, accelerated stock compensation charges associated with merger and acquisition activity, costs associated with the announced recapitalization plan, acquisition related amortization and certain other costs. Adjusted free cash flow is GAAP operating cash flow less capital expenditures, acquisition related cash items and cash items associated with the announced recapitalization plan. Non-GAAP adjustments are recorded in the Corporate and Other segment and do not impact operating segment results. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided in the attached schedules and in the Investor Relations section of the FIS Web site, www.fisglobal.com.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss second quarter 2010 results on Tuesday, July 20, 2010 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.fisglobal.com and click on “News and Events.” A webcast replay will be available on FIS’ Investor Relations website, and a telephone replay will be available through August 3, 2010, by dialing 800-475-6701(USA) or 320-365-3844 (International). The access code will be 163692. To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fisglobal.com.
About FIS
FIS delivers banking and payments technologies to more than 14,000 financial institutions and businesses in over 100 countries worldwide. FIS provides financial institution core processing, and card issuer and transaction processing services, including the NYCE® Network. FIS is a member of Standard and Poor’s (S&P) 500® Index and consistently holds a leading ranking in the annual

 


 

FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS employs more than 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.fisglobal.com.
Forward-Looking Statements
This news release and today’s conference call contain 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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical facts, including statements about 2010 adjusted earnings per share, margin expansion and cash flow, as well as other 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 risk 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 synergy 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 undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
FIS-e
SOURCE: Fidelity National Information Services, Inc.
CONTACTS: Mary Waggoner, Senior Vice President, Investor Relations, 904-854-3282, mary.waggoner@fisglobal.com; Marcia Danzeisen, Senior Vice President, Marketing and Corporate Communications, 904-854-5083, marcia.danzeisen@fisglobal.com.
###

 


 

Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
July 20, 2010
     
Exhibit A  
Consolidated Statements of Earnings — Unaudited for the three and six months ended June 30, 2010 and 2009
   
 
Exhibit B  
Consolidated Balance Sheets — Unaudited as of June 30, 2010 and December 31, 2009
   
 
Exhibit C  
Consolidated Statements of Cash Flows — Unaudited for the six months ended June 30, 2010 and 2009
   
 
Exhibit D  
Supplemental Non-GAAP Financial Information — Unaudited for the three and six months ended June 30, 2010 and 2009
   
 
Exhibit E  
Supplemental GAAP to Non-GAAP Reconciliation — Unaudited for the three and six months ended June 30, 2010 and 2009

1


 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
                                 
    Three months ended June 30,     Six months ended June 30,  
    2010     2009     2010     2009  
Processing and services revenues
  $ 1,286.1     $ 829.2     $ 2,535.7     $ 1,623.3  
 
                               
Cost of revenues
    912.2       622.8       1,819.4       1,241.2  
Selling, general and administrative expenses
    197.0       93.0       355.6       188.9  
 
                       
 
                               
Operating income
    176.9       113.4       360.7       193.2  
 
                       
 
                               
Other income (expense):
                               
Interest income
    1.1       0.5       2.4       1.3  
Interest expense
    (20.4 )     (31.8 )     (50.0 )     (63.8 )
Other income (expense)
    (12.6 )     5.5       (17.9 )     6.7  
 
                       
Total other income (expense)
    (31.9 )     (25.8 )     (65.5 )     (55.8 )
 
                       
 
                               
Earnings from continuing operations before income taxes
    145.0       87.6       295.2       137.4  
Provision for income taxes
    53.6       30.1       109.2       47.2  
 
                       
 
                               
Net earnings from continuing operations
    91.4       57.5       186.0       90.2  
Earnings (loss) from discontinued operations, net of tax
    (0.3 )     2.1       (1.4 )     2.1  
 
                       
 
                               
Net earnings
    91.1       59.6       184.6       92.3  
Net (earnings) loss attributable to noncontrolling interest
    (1.2 )     (0.4 )     (1.1 )     (0.1 )
 
                       
 
                               
Net earnings attributable to FIS
  $ 89.9     $ 59.2     $ 183.5     $ 92.2  
 
                       
 
                               
Net earnings per share-basic from continuing operations attributable to FIS common stockholders *
  $ 0.24     $ 0.30     $ 0.49     $ 0.47  
Net earnings per share-basic from discontinued operations attributable to FIS common stockholders *
          0.01             0.01  
 
                       
Net earnings per share-basic attributable to FIS common stockholders *
  $ 0.24     $ 0.31     $ 0.49     $ 0.48  
 
                       
 
                               
Weighted average shares outstanding-basic
    376.5       190.3       374.9       190.2  
 
                       
 
                               
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders *
  $ 0.23     $ 0.30     $ 0.48     $ 0.47  
Net earnings per share-diluted from discontinued operations attributable to FIS common stockholders *
          0.01             0.01  
 
                       
Net earnings per share-diluted attributable to FIS common stockholders *
  $ 0.23     $ 0.31     $ 0.48     $ 0.48  
 
                       
 
                               
Weighted average shares outstanding-diluted
    384.6       192.7       382.3       192.2  
 
                       
 
                               
Amounts attributable to FIS common stockholders:
                               
Net earnings from continuing operations, net of tax
  $ 90.2     $ 57.1     $ 184.9     $ 90.1  
Earnings (loss) from discontinued operations, net of tax
    (0.3 )     2.1       (1.4 )     2.1  
 
                       
Net earnings attributable to FIS common stockholders
  $ 89.9     $ 59.2     $ 183.5     $ 92.2  
 
                       
 
*   Amounts may not sum due to rounding.

2


 

Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions)
                 
    As of     As of  
    June 30,     December 31,  
    2010     2009  
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 502.0     $ 430.9  
Settlement deposits
    43.5       50.8  
Trade receivables, net
    737.0       765.4  
Settlement receivables
    61.9       62.5  
Other receivables
    23.7       30.9  
Receivable from related parties
    33.4       32.0  
Prepaid expenses and other current assets
    144.8       141.2  
Deferred income taxes
    71.9       80.9  
Assets held for sale
          71.5  
 
           
Total current assets
    1,618.2       1,666.1  
 
               
Property and equipment, net of accumulated depreciation and amortization
    368.3       375.9  
Goodwill
    8,207.0       8,232.9  
Other intangible assets, net of accumulated amortization
    2,296.0       2,396.8  
Computer software, net of accumulated amortization
    905.3       932.7  
Deferred contract costs
    239.7       261.4  
Other noncurrent assets
    131.8       131.8  
 
           
Total assets
  $ 13,766.3     $ 13,997.6  
 
           
 
               
Liabilities and Equity
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 480.9     $ 523.2  
Due to Brazilian venture partners
    73.3       73.0  
Settlement payables
    115.1       122.3  
Current portion of long-term debt
    263.7       236.7  
Deferred revenues
    279.2       279.5  
 
           
Total current liabilities
    1,212.2       1,234.7  
 
               
Deferred revenues
    89.2       104.8  
Deferred income taxes
    856.4       915.9  
Long-term debt, excluding current portion
    2,697.2       3,016.6  
Other long-term liabilities
    232.8       207.0  
 
           
Total liabilities
    5,087.8       5,479.0  
 
           
 
               
Equity:
               
FIS stockholders’ equity:
               
Preferred stock $0.01 par value
           
Common stock $0.01 par value
    3.8       3.8  
Additional paid in capital
    7,242.2       7,345.1  
Retained earnings
    1,280.4       1,134.6  
Accumulated other comprehensive earnings (loss)
    16.1       82.2  
Treasury stock
    (66.4 )     (256.8 )
 
           
Total FIS stockholders’ equity
    8,476.1       8,308.9  
Noncontrolling interest
    202.4       209.7  
 
           
Total equity
    8,678.5       8,518.6  
 
           
 
               
Total liabilities and equity
  $ 13,766.3     $ 13,997.6  
 
           

3


 

Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
                 
    Six months ended June 30,  
    2010     2009  
Cash flows from operating activities:
               
Net earnings
  $ 184.6     $ 92.3  
Adjustment to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    305.1       184.1  
Stock-based compensation cost
    26.4       18.3  
Deferred income taxes
    (44.9 )     (31.8 )
Income tax benefit from exercise of stock options
    (5.3 )     (0.1 )
Other operating activities, net
    11.5       1.7  
Changes in assets and liabilities, net of effects from acquisitions:
               
Net decrease (increase) in trade receivables
    48.8       93.8  
Net decrease (increase) in settlement receivables
    0.7       8.2  
Net decrease (increase) in prepaid expenses and other assets
    (7.9 )     19.3  
Net additions to deferred contract costs
    (20.6 )     (25.3 )
Net increase (decrease) in deferred revenue
    (4.4 )     2.5  
Net increase (decrease) in accounts payable, accrued liabilities and other liabilities
    (48.8 )     (31.9 )
 
           
 
               
Net cash provided by operating activities
    445.2       331.1  
 
           
 
               
Cash flows from investing activities:
               
Additions to property and equipment
    (47.6 )     (27.1 )
Additions to capitalized software
    (86.6 )     (69.1 )
Net proceeds from sale of assets
    71.5        
Acquisitions, net of cash acquired
    (46.6 )     (3.8 )
Other investing activities
    36.0        
 
           
 
               
Net cash used in investing activities
    (73.3 )     (100.0 )
 
           
 
               
Cash flows from financing activities:
               
Borrowings
    4,250.1       1,198.7  
Debt service payments
    (4,544.3 )     (1,420.1 )
Capitalized debt issuance costs
    (17.7 )      
Dividends paid
    (39.3 )     (19.1 )
Income tax benefit from exercise of stock options
    5.3       0.1  
Stock options exercised
    86.3       6.0  
Treasury stock purchases
    (32.2 )      
Other financing activity
    3.3          
 
           
 
               
Net cash used in financing activities
    (288.5 )     (234.4 )
 
           
 
               
Effect of foreign currency exchange rates on cash
    (12.3 )     10.3  
 
           
 
               
Net increase in cash and cash equivalents
    71.1       7.0  
 
               
Cash and cash equivalents, at beginning of period
    430.9       220.9  
 
           
 
               
Cash and cash equivalents, at end of period
  $ 502.0     $ 227.9  
 
           

4


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
                                         
    Three months ended June 30, 2010  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations, as adjusted
  $ 458.3     $ 630.6     $ 200.7     $ 1.8     $ 1,291.4  
 
                             
 
                                       
Operating income (loss)
  $ 162.8     $ 207.6     $ 21.4     $ (214.9 )   $ 176.9  
M&A, restructuring and integration costs
                      51.6       51.6  
Acquisition deferred revenue adjustments
                      5.3       5.3  
Purchase price amortization
                      66.4       66.4  
 
                             
Non GAAP operating income (loss)
  $ 162.8     $ 207.6     $ 21.4     $ (91.6 )   $ 300.2  
 
                                       
Depreciation and amortization from continuing Operations, as adjusted
    37.8       24.7       15.0       8.1       85.6  
 
                             
EBITDA, as adjusted
  $ 200.6     $ 232.3     $ 36.4     $ (83.5 )   $ 385.8  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    35.5 %     32.9 %     10.7 %     N/M %     23.2 %
 
                             
 
                                       
EBITDA margin, as adjusted
    43.8 %     36.8 %     18.1 %     N/M %     29.9 %
 
                             
                                         
    Three months ended June 30, 2009  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 269.9     $ 379.2     $ 180.7     $ (0.6 )   $ 829.2  
Pro forma Metavante revenue and adjustments
    175.1       251.9       5.1             432.1  
 
                             
Pro forma revenue from continuing operations
  $ 445.0     $ 631.1     $ 185.8     $ (0.6 )   $ 1,261.3  
 
                             
 
                                       
Operating income (loss)
  $ 88.9     $ 96.3     $ 19.8     $ (91.6 )   $ 113.4  
Pro forma Metavante operating income and adjustments
    62.7       98.5       1.7       (80.7 )     82.2  
 
                             
Pro forma operating Income (loss)
    151.6       194.8       21.5       (172.3 )     195.6  
M&A, restructuring and integration costs
                      6.4       6.4  
Purchase price amortization
                      67.6       67.6  
 
                             
Non GAAP operating income (loss)
  $ 151.6     $ 194.8     $ 21.5     $ (98.3 )   $ 269.6  
 
                                       
Depreciation and amortization from continuing Operations, as adjusted
    39.4       28.5       14.5       7.8       90.2  
 
                             
EBITDA, as adjusted
  $ 191.0     $ 223.3     $ 36.0     $ (90.5 )   $ 359.8  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    34.1 %     30.9 %     11.6 %     N/M %     21.4 %
 
                             
 
                                       
EBITDA margin, as adjusted
    42.9 %     35.4 %     19.4 %     N/M %     28.5 %
 
                             
 
                                       
Total Revenue Growth from Prior Year Period
                                       
 
                                       
Three months ended June 30, 2010
    3.0 %     -0.1 %     8.0 %     N/M %     2.4 %
 
                             

5


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
1. Revenue, Operating Income and EBITDA
                                         
    Six months ended June 30, 2010  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations, as adjusted
  $ 901.8     $ 1,249.4     $ 395.7     $ 3.0     $ 2,549.9  
 
                             
 
                                       
Operating income (loss)
  $ 310.5     $ 412.4     $ 37.6     $ (399.8 )   $ 360.7  
M&A, restructuring and integration costs
                      68.9       68.9  
Acquisition deferred revenue adjustments
                      14.2       14.2  
Purchase price amortization
                      131.5       131.5  
 
                             
Non GAAP operating income (loss)
  $ 310.5     $ 412.4     $ 37.6     $ (185.2 )   $ 575.3  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    75.7       49.4       30.4       17.7       173.2  
 
                             
EBITDA, as adjusted
  $ 386.2     $ 461.8     $ 68.0     $ (167.5 )   $ 748.5  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    34.4 %     33.0 %     9.5 %     N/M %     22.6 %
 
                             
 
                                       
EBITDA margin, as adjusted
    42.8 %     37.0 %     17.2 %     N/M %     29.4 %
 
                             
                                         
    Six months ended June 30, 2009  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 536.2     $ 743.5     $ 344.7     $ (1.1 )   $ 1,623.3  
Pro forma Metavante revenue and adjustments
    338.7       500.4       10.8             849.9  
 
                             
Pro forma revenue from continuing operations
  $ 874.9     $ 1,243.9     $ 355.5     $ (1.1 )   $ 2,473.2  
 
                             
 
                                       
Operating income (loss)
  $ 162.5     $ 182.1     $ 34.4     $ (185.8 )   $ 193.2  
Pro forma Metavante operating income and adjustments
    114.3       190.3       4.1       (164.7 )     144.0  
 
                             
Pro forma operating Income (loss)
    276.8       372.4       38.5       (350.5 )     337.2  
M&A, restructuring and integration costs
                      15.9       15.9  
Purchase price amortization
                      136.1       136.1  
 
                             
Non GAAP operating income (loss)
  $ 276.8     $ 372.4     $ 38.5     $ (198.5 )   $ 489.2  
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    77.1       57.5       27.6       16.7       178.9  
 
                             
EBITDA, as adjusted
  $ 353.9     $ 429.9     $ 66.1     $ (181.8 )   $ 668.1  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    31.6 %     29.9 %     10.8 %     N/M %     19.8 %
 
                             
 
                                       
EBITDA margin, as adjusted
    40.5 %     34.6 %     18.6 %     N/M %     27.0 %
 
                             
 
                                       
Total Revenue Growth from Prior Year Period
                                       
 
                                       
Six months ended June 30, 2010
    3.1 %     0.4 %     11.3 %     N/M %     3.1 %
 
                             

6


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF CASH FLOW MEASURES — UNAUDITED
(In millions)
                                                 
    Three months ended June 30, 2010     Six months ended June 30, 2010  
    GAAP     Adj     Adjusted     GAAP     Adj     Adjusted  
Cash flows from operating activities:
                                               
Net earnings (1)
  $ 91.1     $ 86.3     $ 177.4     $ 184.6     $ 145.7     $ 330.3  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                                               
Non-cash adjustments (2)
    127.1       (31.1 )     96.0       292.8       (76.5 )     216.3  
Working capital adjustments (3)
    (44.7 )     (45.2 )     (89.9 )     (32.2 )     (31.4 )     (63.6 )
 
                                   
 
                                               
Net cash provided by operating activities
    173.5       10.0       183.5       445.2       37.8       483.0  
 
                                               
Capital expenditures
    (76.0 )           (76.0 )     (134.2 )           (134.2 )
 
                                               
 
                                   
 
                                               
Free cash flow
  $ 97.5     $ 10.0     $ 107.5     $ 311.0     $ 37.8     $ 348.8  
 
                                   
                                                 
    Three months ended June 30, 2009     Six months ended June 30, 2009  
    GAAP     Adj     Adjusted     GAAP     Adj     Adjusted  
Cash flows from operating activities:
                                               
Net earnings (1)
  $ 59.6     $ 1.0     $ 60.6     $ 92.3     $ 6.0     $ 98.3  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                                               
Non-cash adjustments (2)
    69.0             69.0       172.2             172.2  
Working capital adjustments (3)
    39.9       6.0       45.9       66.6       3.0       69.6  
 
                                   
 
                                               
Net cash provided by operating activities
    168.5       7.0       175.5       331.1       9.0       340.1  
 
                                               
Capital expenditures
    (50.9 )           (50.9 )     (96.2 )           (96.2 )
 
                                               
 
                                   
 
                                               
Free cash flow
  $ 117.6     $ 7.0     $ 124.6     $ 234.9     $ 9.0     $ 243.9  
 
                                   
 
(1)   Adjustments to Net Earnings reflect the elimination of the after-tax impact of M&A and related integration costs, 2010 leveraged recapitalization plan costs, as well as, non-cash impairment, stock acceleration charges and purchase price amortization.
 
(2)   Adjustments to Non Cash Adjustments reflects the after-tax impact of stock acceleration charges and purchase price amortization.
 
(3)   Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities and for the 2009 period, the elimination of accruals related to the acquisition of Metavante.
Cash flows generated by Metavante Operations are included prospectively beginning October 1, 2009 in the consolidated cash flows for FIS.

7


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
                                 
    Three months ended June 30,     Six months ended June 30,  
    2010     2009     2010     2009  
Net earnings from continuing operations attributable to FIS
  $ 90.2     $ 57.1     $ 184.9     $ 90.1  
Provision for income taxes
    53.6       30.1       109.2       47.2  
 
                       
 
                               
Earnings from continuing operations before income taxes
    143.8       87.2       294.1       137.3  
Other, net
    33.1       26.2       66.6       55.9  
 
                       
 
                               
Operating income
    176.9       113.4       360.7       193.2  
 
                               
Pro forma Metavante operating income and adjustments
          82.2             144.0  
M&A, restructuring and integration costs
    51.6       6.4       68.9       15.9  
Acquisition deferred revenue adjustments
    5.3             14.2        
Purchase price amortization
    66.4       67.6       131.5       136.1  
 
                       
 
                               
Non GAAP operating income
    300.2       269.6       575.3       489.2  
 
                               
Depreciation and amortization from continuing operations, as adjusted
    85.6       90.2       173.2       178.9  
 
                       
EBITDA, as adjusted
  $ 385.8     $ 359.8     $ 748.5     $ 668.1  
 
                       

8


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                 
    GAAP     M&A                             Non-GAAP  
    Three Months     Restructuring     Acquisition                     Three Months  
    Ended     Integration &     Deferred             Purchase     Ended  
    June 30, 2010     Recapitalization     Revenue             Price     June 30, 2010  
    (Unaudited)     Costs (1)     Adjustments (2)     Subtotal     Amortization (3)     (Unaudited)  
Processing and services revenue
  $ 1,286.1     $     $ 5.3     $ 1,291.4     $     $ 1,291.4  
Cost of revenues
    912.2                   912.2       (66.4 )     845.8  
 
                                   
Gross profit
    373.9             5.3       379.2       66.4       445.6  
 
                                   
 
                                               
Selling, general and administrative
    197.0       (51.6 )           145.4             145.4  
 
                                   
Operating income
    176.9       51.6       5.3       233.8       66.4       300.2  
 
                                   
 
                                               
Other income (expense):
                                               
Interest income
    1.1                   1.1             1.1  
Interest expense
    (20.4 )                 (20.4 )           (20.4 )
Other income (expense), net
    (12.6 )     13.8             1.2             1.2  
 
                                   
Total other income (expense)
    (31.9 )     13.8             (18.1 )           (18.1 )
 
                                   
 
                                               
Earnings from continuing operations before income taxes
    145.0       65.4       5.3       215.7       66.4       282.1  
Provision for income taxes
    53.6       24.2       2.0       79.8       24.6       104.4  
 
                                   
 
Earnings from continuing operations
    91.4       41.2       3.3       135.9       41.8       177.7  
Loss from discontinued operations
    (0.3 )                 (0.3 )           (0.3 )
 
                                   
Net earnings
    91.1       41.2       3.3       135.6       41.8       177.4  
Noncontrolling interest
    (1.2 )                 (1.2 )           (1.2 )
 
                                   
 
                                               
Net earnings attributable to FIS
  $ 89.9     $ 41.2     $ 3.3     $ 134.4     $ 41.8     $ 176.2  
 
                                   
 
                                               
Amounts attributable to FIS common stockholders:
                                               
Net earnings from continuing operations, net of tax
  $ 90.2     $ 41.2     $ 3.3     $ 134.7     $ 41.8     $ 176.5  
Loss from discontinued operations, net of tax
    (0.3 )                 (0.3 )           (0.3 )
 
                                   
Net earnings attributable to FIS common stockholders
  $ 89.9     $ 41.2     $ 3.3     $ 134.4     $ 41.8     $ 176.2  
 
                                   
 
                                               
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.23     $ 0.11     $ 0.01     $ 0.35     $ 0.11     $ 0.46  
 
                                   
Weighted average shares outstanding — diluted
    384.6       384.6       384.6       384.6       384.6       384.6  
 
                                   
 
                                               
Effective tax rate
    37 %                                     37 %
 
                                           
 
                                               
Supplemental Information:
                                               
 
                                               
Depreciation and amortization from continuing operations
                          $ 152.0     $ (66.4 )   $ 85.6  
 
                                         
 
Stock compensation expense from continuing operations, excluding acceleration charges
                                          $ 10.4  
Stock acceleration charges
                                             
 
                                             
Total stock compensation expense from continuing operations
                                          $ 10.4  
 
                                             
 
*   Amounts may not sum due to rounding.
See accompanying notes.

9


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                 
    GAAP     M&A                             Non-GAAP  
    Six Months     Restructuring,     Acquisition                     Six Months  
    Ended     Integration &     Deferred             Purchase     Ended  
    June 30, 2010     Recapitalization     Revenue             Price     June 30, 2010  
    (Unaudited)     Costs (1)     Adjustments (2)     Subtotal     Amortization (3)     (Unaudited)  
Processing and services revenue
  $ 2,535.7     $     $ 14.2     $ 2,549.9     $     $ 2,549.9  
Cost of revenues
    1,819.4                   1,819.4       (131.5 )     1,687.9  
 
                                   
Gross profit
    716.3             14.2       730.5       131.5       862.0  
 
                                   
 
                                               
Selling, general and administrative
    355.6       (68.9 )           286.7             286.7  
 
                                   
Operating income
    360.7       68.9       14.2       443.8       131.5       575.3  
 
                                   
 
                                               
Other income (expense):
                                               
Interest income
    2.4                   2.4             2.4  
Interest expense
    (50.0 )                 (50.0 )           (50.0 )
Other income (expense), net
    (17.9 )     16.8             (1.1 )           (1.1 )
 
                                   
Total other income (expense)
    (65.5 )     16.8             (48.7 )           (48.7 )
 
                                   
 
                                               
Earnings from continuing operations before income taxes
    295.2       85.7       14.2       395.1       131.5       526.6  
Provision for income taxes
    109.2       31.7       5.3       146.2       48.7       194.9  
 
                                   
 
                                               
Earnings from continuing operations
    186.0       54.0       8.9       248.9       82.8       331.7  
Loss from discontinued operations
    (1.4 )                 (1.4 )           (1.4 )
 
                                   
Net earnings
    184.6       54.0       8.9       247.5       82.8       330.3  
Noncontrolling interest
    (1.1 )                 (1.1 )           (1.1 )
 
                                   
 
                                               
Net earnings attributable to FIS
  $ 183.5     $ 54.0     $ 8.9     $ 246.4     $ 82.8     $ 329.2  
 
                                   
 
                                               
Amounts attributable to FIS common stockholders:
                                               
Net earnings from continuing operations, net of tax
  $ 184.9     $ 54.0     $ 8.9     $ 247.8     $ 82.8     $ 330.6  
Loss from discontinued operations, net of tax
    (1.4 )                 (1.4 )           (1.4 )
 
                                   
Net earnings attributable to FIS common stockholders
  $ 183.5     $ 54.0     $ 8.9     $ 246.4     $ 82.8     $ 329.2  
 
                                   
 
                                               
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.48     $ 0.14     $ 0.02     $ 0.65     $ 0.22     $ 0.86  
 
                                   
Weighted average shares outstanding — diluted
    382.3       382.3       382.3       382.3       382.3       382.3  
 
                                   
 
                                               
Effective tax rate
    37 %                                     37 %
 
                                           
 
                                               
Supplemental Information:
                                               
 
                                               
Depreciation and amortization from continuing operations
                          $ 304.7     $ (131.5 )   $ 173.2  
 
                                         
 
                                               
Stock compensation expense from continuing operations, excluding acceleration charges
                                          $ 21.0  
Stock acceleration charges
                                            5.4  
 
                                             
Total stock compensation expense from continuing operations
                                          $ 26.4  
 
                                             
 
*   Amounts may not sum due to rounding.
See accompanying notes.

10


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                         
    GAAP     M&A                     Non-GAAP  
    Three Months     Restructuring                     Three Months  
    Ended     And             Purchase     Ended  
    June 30, 2009     Integration             Price     June 30, 2009  
    (Unaudited)     Costs (1)     Subtotal     Amortization (3)     (Unaudited)  
Processing and services revenue
  $ 829.2     $     $ 829.2     $     $ 829.2  
Cost of revenues
    622.8             622.8       (29.2 )     593.6  
 
                             
Gross profit
    206.4             206.4       29.2       235.6  
 
                             
 
                                       
Selling, general and administrative
    93.0       (2.1 )     90.9             90.9  
 
                             
Operating income
    113.4       2.1       115.5       29.2       144.7  
 
                             
 
                                       
Other income (expense):
                                       
Interest income
    0.5             0.5             0.5  
Interest expense
    (31.8 )           (31.8 )           (31.8 )
Other income, net
    5.5             5.5             5.5  
 
                             
Total other income (expense)
    (25.8 )           (25.8 )           (25.8 )
 
                             
 
                                       
Earnings from continuing operations before income taxes
    87.6       2.1       89.7       29.2       118.9  
Provision for income taxes
    30.1       0.7       30.8       10.1       40.9  
 
                             
 
                                       
Earnings from continuing operations
    57.5       1.4       58.9       19.1       78.0  
Earnings (loss) from discontinued operations
    2.1             2.1             2.1  
 
                             
Net earnings
    59.6       1.4       61.0       19.1       80.1  
Noncontrolling interest
    (0.4 )           (0.4 )           (0.4 )
 
                             
 
                                       
Net earnings attributable to FIS
  $ 59.2     $ 1.4     $ 60.6     $ 19.1     $ 79.7  
 
                             
 
                                       
Amounts attributable to FIS common stockholders:
                                       
Net earnings from continuing operations, net of tax
  $ 57.1     $ 1.4     $ 58.5     $ 19.1     $ 77.6  
Earnings (loss) from discontinued operations, net of tax
    2.1             2.1             2.1  
 
                             
Net earnings attributable to FIS common stockholders
  $ 59.2     $ 1.4     $ 60.6     $ 19.1     $ 79.7  
 
                             
 
                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.30     $ 0.01     $ 0.30     $ 0.10     $ 0.40  
 
                             
Weighted average shares outstanding — diluted
    192.7       192.7       192.7       192.7       192.7  
 
                             
 
Effective tax rate
    34 %                             34 %
 
                                   
 
Supplemental Information:
                                       
 
Depreciation and amortization from continuing operations
                  $ 92.0     $ (29.2 )   $ 62.8  
 
                                 
 
Stock compensation expense from continuing operations, excluding acceleration charges
                                  $ 8.8  
Stock acceleration charges
                                     
 
                                     
Total stock compensation expense from continuing operations
                                  $ 8.8  
 
                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.
GAAP results include Metavante’s operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.

11


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                         
    GAAP     M&A                     Non-GAAP  
    Six months     Restructuring                     Six months  
    Ended     And             Purchase     Ended  
    June 30, 2009     Integration             Price     June 30, 2009  
    (Unaudited)     Costs (1)     Subtotal     Amortization (3)     (Unaudited)  
Processing and services revenue
  $ 1,623.3     $     $ 1,623.3     $     $ 1,623.3  
Cost of revenues
    1,241.2             1,241.2       (59.3 )     1,181.9  
 
                             
Gross profit
    382.1             382.1       59.3       441.4  
 
                             
 
                                       
Selling, general and administrative
    188.9       (9.4 )     179.5             179.5  
 
                             
Operating income
    193.2       9.4       202.6       59.3       261.9  
 
                             
 
                                       
Other income (expense):
                                       
Interest income
    1.3             1.3             1.3  
Interest expense
    (63.8 )           (63.8 )           (63.8 )
Other income, net
    6.7             6.7             6.7  
 
                             
Total other income (expense)
    (55.8 )           (55.8 )           (55.8 )
 
                             
 
                                       
Earnings from continuing operations before income taxes
    137.4       9.4       146.8       59.3       206.1  
Provision for income taxes
    47.2       3.2       50.4       20.5       70.9  
 
                             
 
                                       
Earnings from continuing operations
    90.2       6.2       96.4       38.8       135.2  
Earnings (loss) from discontinued operations
    2.1             2.1             2.1  
 
                             
Net earnings
    92.3       6.2       98.5       38.8       137.3  
Noncontrolling interest
    (0.1 )           (0.1 )           (0.1 )
 
                             
 
                                       
Net earnings attributable to FIS
  $ 92.2     $ 6.2     $ 98.4     $ 38.8     $ 137.2  
 
                             
 
                                       
Amounts attributable to FIS common stockholders:
                                       
Net earnings from continuing operations, net of tax
  $ 90.1     $ 6.2     $ 96.3     $ 38.8     $ 135.1  
Earnings (loss) from discontinued operations, net of tax
    2.1             2.1             2.1  
 
                             
Net earnings attributable to FIS common stockholders
  $ 92.2     $ 6.2     $ 98.4     $ 38.8     $ 137.2  
 
                             
 
                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.47     $ 0.03     $ 0.50     $ 0.20     $ 0.70  
 
                             
Weighted average shares outstanding — diluted
    192.2       192.2       192.2       192.2       192.2  
 
                             
 
                                       
Effective tax rate
    34 %                             34 %
 
                                   
 
                                       
Supplemental Information:
                                       
 
                                       
Depreciation and amortization from continuing operations
                  $ 183.9     $ (59.3 )   $ 124.6  
 
                                 
 
                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                  $ 18.3  
Stock acceleration charges
                                     
 
                                     
Total stock compensation expense from continuing operations
                                  $ 18.3  
 
                                     
 
*   Amounts may not sum due to rounding.
See accompanying notes.
GAAP results include Metavante’s operating results in the consolidated results of FIS beginning October 1, 2009 on a prospective basis.

12


 

Notes to Unaudited — Supplemental GAAP to Non-GAAP Reconciliation for the Three and Six Months ended June 30, 2010 and 2009
The adjustments are as follows:
(1)   This column represents (1) charges for restructuring and integration costs relating to merger and acquisition activities and (2) costs associated with the 2010 leveraged recapitalization plan. For the three and six months ended June 30, 2010 and 2009, the adjustments to “Selling, general and administrative” expenses primarily represent incremental transaction costs incurred by the Company related to the acquisition of Metavante Technologies, Inc., completed on October 1, 2009. The adjustments to “Other income (expense), net” represent certain costs associated with the leveraged recapitalization, the write-off of certain previously deferred debt issue costs associated with the amended and extended debt facility and the write-off of unamortized discount associated with the portion of the Metavante debt that was paid with the proceeds thereof.
 
(2)   This column represents the impact of the purchase accounting adjustment to reduce Metavante’s deferred revenues to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by Metavante but was not recognized due to GAAP purchase accounting requirements.
 
(3)   This column represents purchase price amortization expense on intangibles assets acquired through various Company acquisitions.

13