EX-99.2 3 g25424exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
(GRAPHIC)
Supplemental Financial Data and GAAP to Non-GAAP Reconciliations

 


 

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL FINANCIAL DATA — UNAUDITED
(In millions)
                                         
    Twelve Months Ended December 31, 2009  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 1,260.0     $ 1,741.9     $ 724.3     $ 0.2     $ 3,726.4  
Pro forma Metavante revenue and adjustments
    506.6       743.8       16.7             1,267.1  
 
                             
Pro forma revenue from continuing operations
  $ 1,766.6     $ 2,485.7     $ 741.0     $ 0.2     $ 4,993.5  
 
                             
 
                                       
Operating income
    417.7       475.6       121.9       (729.6 )   $ 285.6  
Pro forma Metavante operating income and adjustments
    166.7       288.2       5.9       (246.5 )     214.3  
 
                             
Pro forma operating Income
    584.4       763.8       127.8       (976.1 )     499.9  
M&A, restructuring and integration costs
                      153.5       153.5  
Acquisition deferred revenue adjustments
                      15.3       15.3  
Impairment charges
                      136.9       136.9  
Purchase price amortization
                      268.6       268.6  
 
                             
Non GAAP operating income
  $ 584.4     $ 763.8     $ 127.8     $ (401.8 )   $ 1,074.2  
 
                             
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    154.1       110.8       52.8       37.8       355.5  
 
                             
EBITDA, as adjusted
  $ 738.5     $ 874.6     $ 180.6     $ (364.0 )   $ 1,429.7  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    33.1 %     30.7 %     17.2 %     N/M %     21.5 %
 
                             
 
EBITDA margin, as adjusted
    41.8 %     35.2 %     24.4 %     N/M %     28.6 %
 
                             
                                         
    Twelve Months Ended December 31, 2008  
    Financial     Payment     International     Corporate        
    Solutions     Solutions     Solutions     and Other     Consolidated  
Revenue from continuing operations
  $ 1,135.8     $ 1,526.3     $ 700.0     $ (2.5 )   $ 3,359.6  
Pro forma Metavante revenue and adjustments
    652.6       990.9       20.8             1,664.3  
 
                             
Pro forma revenue from continuing operations
  $ 1,788.4     $ 2,517.2     $ 720.8     $ (2.5 )   $ 5,023.9  
 
                             
 
                                       
Operating income
  $ 352.2     $ 353.8     $ 81.3     $ (450.9 )   $ 336.4  
Pro forma Metavante operating income and adjustments
    201.4       371.1       5.0       (355.9 )     221.6  
 
                             
Pro forma operating Income
    553.6       724.9       86.3       (806.8 )     558.0  
M&A, restructuring and integration costs
                      47.9       47.9  
Corporate costs non - disc. Ops
                      18.0       18.0  
LPS spin-off costs
                      9.3       9.3  
Trademark impairment
                      26.0       26.0  
Purchase price amortization
                      296.0       296.0  
 
                             
Non GAAP operating income
  $ 553.6     $ 724.9     $ 86.3     $ (409.6 )   $ 955.2  
 
                             
 
                                       
Depreciation and amortization from continuing
                                       
Operations, as adjusted
    158.3       116.1       47.6       31.8       353.8  
 
                             
EBITDA, as adjusted
  $ 711.9     $ 841.0     $ 133.9     $ (377.8 )   $ 1,309.0  
 
                             
 
                                       
Non GAAP operating margin, as adjusted
    31.0 %     28.8 %     12.0 %     N/M %     19.0 %
 
                             
 
EBITDA margin, as adjusted
    39.8 %     33.4 %     18.6 %     N/M %     26.1 %
 
                             

1


 

FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF CASH FLOW MEASURES — UNAUDITED
(In millions)
                         
    Twelve Months Ended December 31, 2009  
    GAAP     Adj     Adjusted  
Cash flows from operating activities:
                       
Net earnings (2)
  $ 108.5     $ 288.8     $ 397.3  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                       
Non-cash adjustments (5)
    678.5       (220.1 )     458.4  
Working capital adjustments (3)
    (72.9 )     37.2       (35.7 )
 
                 
 
                       
Net cash provided by operating activities
    714.1       105.9       820.0  
 
                       
Capital expenditures
    (212.5 )           (212.5 )
 
                 
 
                       
Free cash flow
  $ 501.6     $ 105.9     $ 607.5  
 
                 
                         
    Twelve Months Ended December 31, 2008  
    GAAP     Adj (1)     Adjusted  
Cash flows from operating activities:
                       
Net earnings (4)
  $ 219.5     $ 46.0     $ 265.5  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                       
Non-cash adjustments (5)
    614.4       (180.9 )     433.5  
Working capital adjustments (3)
    (237.5 )     126.9       (110.6 )
 
                 
 
                       
Net cash provided by operating activities
    596.4       (8.0 )     588.4  
 
                       
Capital expenditures
    (255.4 )     25.1       (230.3 )
 
                 
 
                       
Free cash flow
  $ 341.0     $ 17.1     $ 358.1  
 
                 
 
(1)   Adjustments include the elimination of the cash flows attributable to LPS and reflect FIS on a standalone basis.
 
(2)   Adjustments to Net Earnings reflect the elimination of the after-tax impact of non-recurring M&A and related integration costs as well as non-cash impairment, 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 current accruals related to the 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. It also reflects the elimination of the after-tax impact of impairment and stock comp acceleration charges and purchase price amortization.
 
(5)   Adjustments to Non-Cash Adjustments reflects the after-tax impact of non-recurring impairment and stock acceleration charges and purchase price amortization.
Cash flows generated by Metavante Operations are included prospectively beginning October 1, 2009 in the consolidated cash flows for FIS.

2


 

FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                         
                                                   
    GAAP     M&A                                   Non-GAAP  
    Twelve Months     Restructuring     Acquisition                           Twelve Months  
    Ended     And     Deferred                   Purchase     Ended  
    December 31, 2009     Integration     Revenue     Impairment           Price     December 31, 2009  
    (Unaudited)     Costs (1)     Adjustments (2)     Charges (3)     Subtotal     Amortization (7)     (Unaudited)  
 
                                         
Processing and services revenue
  $ 3,711.1     $     $ 15.3     $     $ 3,726.4     $     $ 3,726.4  
Cost of revenues
    2,741.5                         2,741.5       (153.4 )     2,588.1  
 
                                         
Gross profit
    969.6             15.3             984.9       153.4       1,138.3  
 
                                                       
Selling, general and administrative
    547.1       (142.2 )                 404.9             404.9  
Impairment charges
    136.9                   (136.9 )                  
 
                                         
Operating income
    285.6       142.2       15.3       136.9       580.0       153.4       733.4  
 
                                         
 
                                                       
Other income (expense):
                                                       
Interest income
    3.4                         3.4             3.4  
Interest expense
    (134.0 )     1.0                   (133.0 )           (133.0 )
Other income, net
    8.7                         8.7             8.7  
 
                                         
Total other income (expense)
    (121.9 )     1.0                   (120.9 )           (120.9 )
 
                                         
 
                                                       
Earnings from continuing operations before income taxes
    163.7       143.2       15.3       136.9       459.1       153.4       612.5  
Provision (benefit) for income taxes
    54.7       51.3       5.5       49.3       160.8       53.9       214.7  
 
                                         
 
                                                       
Earnings from continuing operations
    109.0       91.9       9.8       87.6       298.3       99.5       397.8  
Earnings (loss) from discontinued operations
    4.6                         4.6             4.6  
 
                                         
Net earnings
    113.6       91.9       9.8       87.6       302.9       99.5       402.4  
Noncontrolling interest
    (2.6 )                       (2.6 )           (2.6 )
 
                                         
 
                                                       
Net earnings attributable to FIS
  $ 111.0     $ 91.9     $ 9.8     $ 87.6     $ 300.3     $ 99.5     $ 399.8  
 
                                         
 
                                                       
Amounts attributable to FIS common stockholders
                                                       
Net earnings from continuing operations, net of tax
  $ 106.4     $ 91.9     $ 9.8     $ 87.6     $ 295.7     $ 99.5     $ 395.2  
Earnings from discontinued operations, net of tax
    4.6                         4.6             4.6  
 
                                         
Net earnings attributable to FIS common stockholders
  $ 111.0     $ 91.9     $ 9.8     $ 87.6     $ 300.3     $ 99.5     $ 399.8  
 
                                         
 
                                                       
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.44     $ 0.38     $ 0.04     $ 0.37     $ 1.24     $ 0.42     $ 1.65  
 
                                         
Weighted average shares outstanding — diluted
    239.4       239.4       239.4       239.4       239.4       239.4       239.4  
 
                                         
 
                                                       
Supplemental Information:
                                                       
 
Depreciation and amortization from continuing operations
                                  $ 427.3     $ (153.4 )   $ 273.9  
 
                                                 
 
                                                       
Stock compensation expense from continuing operations, excluding acceleration charges
                                                  $ 37.3  
Stock acceleration charges
                                                    33.7  
 
                                                     
Total stock compensation expense from continuing operations
                                                  $ 71.0  
 
                                                     
 
*   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.

3


 

FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in millions, except per share data)
                                                                 
                                                           
    GAAP     M&A                                         Non-GAAP  
    Twelve Months     Restructuring     Corporate                               Twelve Months  
    Ended     And     Costs     LPS                   Purchase     Ended  
    December 31, 2008     Integration     Non-Disc     Spin     Trademark           Price     December 31, 2008  
    (Unaudited)     Costs (1)     Ops (4)     Costs (5)     Impairment (6)     Subtotal     Amortization (7)     (Unaudited)  
 
                                               
Processing and services revenue
  $ 3,359.6     $     $     $     $     $ 3,359.6     $     $ 3,359.6  
Cost of revenues
    2,642.2       (25.4 )                 (26.0 )     2,590.8       (142.4 )     2,448.4  
 
                                               
Gross profit
    717.4       25.4                   26.0       768.8       142.4       911.2  
 
                                                               
Selling, general and administrative
    381.0       (21.0 )     (18.0 )     (9.3 )           332.7             332.7  
 
                                               
Operating income
    336.4       46.4       18.0       9.3       26.0       436.1       142.4       578.5  
 
                                               
 
                                                               
Other income (expense):
                                                               
Interest income
    6.4                               6.4             6.4  
Interest expense
    (163.5 )     2.7             12.4             (148.4 )           (148.4 )
Other income (expense) net
    1.5                               1.5             1.5  
 
                                               
Total other income (expense)
    (155.6 )     2.7             12.4             (140.5 )           (140.5 )
 
                                               
 
                                                               
Earnings from continuing operations before income taxes
    180.8       49.1       18.0       21.7       26.0       295.6       142.4       438.0  
Provision (benefit) for income taxes
    57.6       17.6       5.5       7.3       8.3       96.3       47.8       144.1  
Equity in earnings (losses) of unconsolidated entities
    (0.2 )                             (0.2 )           (0.2 )
 
                                               
 
                                                               
Earnings from continuing operations
    123.0       31.5       12.5       14.4       17.7       199.1       94.6       293.7  
Earnings from discontinued operations
    96.5                               96.5             96.5  
 
                                               
Net earnings
    219.5       31.5       12.5       14.4       17.7       295.6       94.6       390.2  
Noncontrolling interest
    (4.7 )                             (4.7 )           (4.7 )
 
                                               
 
                                                               
Net earnings attributable to FIS
  $ 214.8     $ 31.5     $ 12.5     $ 14.4     $ 17.7     $ 290.9     $ 94.6     $ 385.5  
 
                                               
 
Amounts attributable to FIS common stockholders
                                                               
Net earnings from continuing operations, net of tax
  $ 118.9     $ 31.5     $ 12.5     $ 14.4     $ 17.7     $ 195.0     $ 94.6     $ 289.6  
Earnings from discontinued operations, net of tax
    95.9                               95.9             95.9  
 
                                               
Net earnings attributable to FIS common stockholders
  $ 214.8     $ 31.5     $ 12.5     $ 14.4     $ 17.7     $ 290.9     $ 94.6     $ 385.5  
 
                                               
 
                                                               
Net earnings per share — diluted from continuing operations attributable to FIS common stockholders*
  $ 0.61     $ 0.16     $ 0.06     $ 0.07     $ 0.09     $ 1.01     $ 0.49     $ 1.50  
 
                                               
Weighted average shares outstanding — diluted
    193.5       193.5       193.5       193.5       193.5       193.5       193.5       193.5  
 
                                               
 
                                                               
Supplemental Information:
                                                               
 
                                                               
Depreciation and amortization from continuing operations
                                          $ 388.8     $ (142.4 )   $ 246.4  
 
                                                         
 
                                                               
Stock compensation expense from continuing operations, excluding acceleration charges
                                                          $ 34.9  
Stock acceleration charges
                                                            16.7  
 
                                                             
Total stock compensation expense from continuing operations
                                                          $ 51.6  
 
                                                             
 
*   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.

4


 

Notes to Unaudited — Supplemental GAAP to Non-GAAP Reconciliations
The adjustments are as follows:
(1)   This column represents charges for restructuring and integration costs relating to merger and acquisition activities. For 2009, the amounts primarily represent incremental transaction costs incurred by the Company related to the acquisition of Metavante Technologies, Inc.
 
(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 impairments to: a) trademarks resulting from the re-branding of products and solutions; and b) capitalized software as a result of a rationalization of FIS and Metavante product lines.
 
(4)   This column represents corporate costs attributable to LPS that are not allocable to discontinued operations under U.S. Generally Accepted Accounting Principles.
 
(5)   This column represents incremental transaction costs incurred by the Company directly related to the LPS spin-off.
 
(6)   This column represents an impairment charge of $52 million related to a decline in the fair value of a trademark associated with our retail check business. $26 million ($0.09 per diluted share after tax) of the charge was classified in continuing operations and $26 million ($0.09 per diluted share after tax) was classified as discontinued operations.
 
(7)   This column represents purchase price amortization expense on intangible assets acquired through various Company acquisitions.

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