We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Fidelity National Information Services Inc | NYSE:FIS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.52 | -0.68% | 75.96 | 77.01 | 75.47 | 76.28 | 15,141,393 | 01:00:00 |
FIS® (NYSE:FIS), a global leader in financial technology, today reported its first quarter 2024 results.
“We are off to a very strong start in 2024. This marks the fifth straight quarter of exceeding our financial outlook, and we are pleased with the continued new sales momentum we are seeing across the business,” said FIS CEO and President Stephanie Ferris. “We are confident in our ability to deliver on our full-year outlook, as the Future Forward strategy we put in place last year is delivering improved operational and financial outcomes. We look forward to updating you on FIS’ corporate strategy and medium-term financial targets at tomorrow’s Investor Day.”
Financial Reporting Considerations for Completed Worldpay Sale
On July 6, 2023, the Company announced an acceleration of its previously announced separation plan to create two highly focused global companies with greater strategic flexibility. FIS signed a definitive agreement to sell a 55% stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR (the "Worldpay Sale"). The Worldpay Sale was completed on January 31, 2024.
Unless otherwise noted, all results are presented on a continuing operations basis and exclude the results of the Worldpay Merchant Solutions business that was classified as discontinued operations as of the third quarter of 2023.
Following the close of the Worldpay Sale on January 31, 2024, FIS retains a non-controlling 45% ownership interest in a new standalone joint venture, Worldpay Holdco, LLC ("Worldpay"), and records its proportionate share of Worldpay's earnings (loss) in the "Equity method investment earnings (loss), net of tax" (EMI) line of the income statement, which for the first quarter of 2024 consists of the two-month period from February 1 to March 31, 2024.
Capital Allocation Update
The Company remains committed to shareholder returns and is increasing its goal to repurchase approximately $4.0 billion of shares in 2024, up from the previous goal of at least $3.5 billion. The Company repurchased $1.4 billion of shares in the first quarter. Additionally, the Company continues to target a dividend payout ratio of 35% of adjusted net earnings, excluding EMI.
Investor Day
FIS will sponsor a live webcast of its Investor Day with the investment community beginning at 8:30 a.m. (EDT) on Tuesday, May 7, 2024. At the conference, FIS' executive leadership team will be providing an update to the company’s corporate strategy and a medium-term financial outlook. To access the webcast, go to the Investor Relations section of FIS’ homepage, www.fisglobal.com. A replay will be available after the conclusion of the live webcast.
First Quarter 2024 Financial Results
On a GAAP basis, excluding $403 million of revenue classified as discontinued operations, revenue increased 3% as compared to the prior-year period to approximately $2.5 billion. GAAP net earnings (loss) attributable to common stockholders for continuing operations were $17 million or $0.03 per diluted share. Including discontinued operations, GAAP net earnings (loss) attributable to common stockholders were $724 million or $1.25 per diluted share.
On an adjusted basis, revenue increased 3% as compared to the prior-year period driven by 5% adjusted recurring revenue growth, offset by a 10% decline in professional services adjusted revenue. Adjusted EBITDA margin expanded by 200 basis points (bps) over the prior-year period to 39.5% primarily driven by cost saving initiatives. Adjusted net earnings for continuing operations were approximately $635 million, and adjusted EPS increased by 53% as compared to the prior-year period to $1.10 per diluted share. Including discontinued operations, adjusted net earnings were approximately $768 million and adjusted EPS increased 3% as compared to the prior-year period to $1.33 per diluted share reflecting one month of discontinued operations contribution in the first quarter of 2024 as compared to three months in the prior year.
($ millions, except per share data, unaudited)
Three Months Ended March 31,
%
Adjusted
Continuing Operations
2024
2023
Change
Growth
Banking Solutions Revenue
1,684
1,646
2%
2%
Capital Market Solutions Revenue
706
663
7%
6%
Operating Segment Total Revenue
$
2,390
$
2,309
4%
3%
Corporate and Other Revenue
77
88
(12)%
-
Consolidated FIS Revenue
$
2,467
$
2,397
3%
-
Adjusted EBITDA
$
975
$
900
8%
Adjusted EBITDA Margin
39.5
%
37.5
%
200 bps
Net Earnings (Loss) (GAAP)
$
17
$
96
*
Diluted Earnings (Loss) Per Common Share (GAAP)
$
0.03
$
0.16
*
Adjusted Net Earnings
$
635
$
426
49%
Adjusted EPS
$
1.10
$
0.72
53%
($ millions, except per share data, unaudited)
Three Months Ended March 31,
%
Adjusted
Total FIS (Including Discontinued Operations)
2024
2023
Change
Growth
Net Earnings (Loss) (GAAP)
$
724
$
140
*
Diluted Earnings (Loss) Per Common Share (GAAP)
$
1.25
$
0.24
*
Adjusted Net Earnings
$
768
$
767
0%
Adjusted EPS
$
1.33
$
1.29
3%
*Indicates comparison not meaningful
Segment Information
Discontinued Operations (Worldpay Merchant Solutions)
For the month of January, discontinued operations revenue was $403 million. Adjusted EBITDA was $187 million, and Adjusted EBITDA margin was 46.4%. Having completed the Worldpay Sale on January 31, 2024, year-over-year growth comparisons are not meaningful.
Balance Sheet and Cash Flows
As of March 31, 2024, debt outstanding totaled $11.2 billion. First quarter net cash provided by operating activities for continuing operations was $206 million, and free cash flow for continuing operations was approximately $95 million. Free cash flow in the quarter was negatively impacted by approximately $195 million of transitory impacts. In the quarter, the Company returned $1.6 billion of capital to shareholders through $1.4 billion of share repurchases and $209 million of dividends paid.
Second Quarter and Full-Year 2024 Outlook
The Company is introducing its second quarter outlook and, for the full-year, is reaffirming its outlook for revenue and adjusted EBITDA and is increasing its outlook for adjusted EPS by $0.22 compared to the prior outlook. The adjusted EPS outlook reflects 11 months of EMI contribution for the full-year.
Following the close of the Worldpay Sale on January 31, 2024, FIS retains a non-controlling 45% ownership interest in a new standalone joint venture, Worldpay Holdco, LLC ("Worldpay"), and records its proportionate share of Worldpay's earnings (loss) in the EMI line of the income statement, which for the first quarter of 2024 consists of the two-month period from February 1 to March 31, 2024.
($ millions, except share data)
2Q 2024
FY 2024
Revenue
$2,465 - $2,490
$10,100 - $10,150
Adjusted EBITDA (Non-GAAP)1
$980 - $995
$4,100 - $4,140
Adjusted EPS (Non-GAAP)1
$1.21 - $1.25
$4.88 - $4.98
1The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. The Company is unable to address the probable significance of the unavailable information.
Webcast
FIS will host a recorded webcast of its earnings conference call with the investment community beginning at 4:30 p.m. (EDT) on Monday, May 6, 2024. To access the webcast, go to the Investor Relations section of FIS’ homepage, www.fisglobal.com. A replay will be available after the conclusion of the live webcast.
About FIS
FIS is a financial technology company providing solutions to financial institutions, businesses and developers. We unlock financial technology that underpins the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our client’s confidently run, grow and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses adapt to meet the needs of their customers by harnessing the power that comes when reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit www.FISglobal.com. Follow FIS on Facebook, LinkedIn and X (@FISglobal).
FIS 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 in the United States. 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, we have provided certain non-GAAP financial measures.
These non-GAAP measures include constant currency revenue, adjusted revenue growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings, adjusted EPS, and free cash flow. These non-GAAP measures may be used in this release and/or in the attached supplemental financial information.
We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. As further described below, the non-GAAP revenue and earnings measures presented eliminate items management believes are not indicative of FIS’ operating performance. The constant currency revenue and adjusted revenue growth measures adjust for the effects of exchange rate fluctuations and exclude discontinued operations, while adjusted revenue growth also excludes revenue from Corporate and Other, giving investors further insight into our performance. Finally, free cash flow provides further information about the ability of our business to generate cash. For these reasons, management also uses these non-GAAP measures in its assessment and management of FIS’ performance.
Constant currency revenue represents reported segment revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period.
Adjusted revenue growth reflects the percentage change in constant currency revenue for the current period as compared to the prior period. When referring to adjusted revenue growth, revenue from our Corporate and Other segment is excluded.
Adjusted EBITDA reflects net earnings (loss) before interest, other income (expense), taxes, equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs and other transactions that management deems non-operational in nature, or that otherwise improve the comparability of operating results across reporting periods by their exclusion. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission's Regulation G and Item 10(e) of Regulation S-K.
Adjusted EBITDA margin reflects adjusted EBITDA, as defined above, divided by revenue.
Adjusted net earnings excludes the impact of certain costs and other transactions which management deems non-operational in nature or that otherwise improve the comparability of operating results across reporting periods by their exclusion. These include, among others, the impact of acquisition-related purchase accounting amortization which is recurring. For purposes of calculating Adjusted net earnings, our equity method investment earnings (loss) (EMI) from Worldpay is also adjusted to exclude certain costs and other transactions in a similar manner.
Adjusted EPS reflects adjusted net earnings, as defined above, divided by weighted average diluted shares outstanding.
Free cash flow reflects net cash provided by operating activities, adjusted for the net change in settlement assets and obligations and excluding certain transactions that are closely associated with non-operating activities or are otherwise non-operational in nature and not indicative of future operating cash flows, less capital expenditures. Free cash flow does not represent our residual cash flow available for discretionary expenditures since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure. Free cash flow as presented in this earnings release excludes cash flow from discontinued operations, which our management will not be able to freely access following the Worldpay separation.
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 measures. 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, including footnotes describing the adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS website, www.fisglobal.com.
Forward-Looking Statements
This earnings release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, or other characterizations of future events or circumstances, are forward-looking statements. Forward-looking statements include statements about anticipated financial outcomes, including any earnings outlook or projections, projected revenue or expense synergies or dis-synergies, business and market conditions, outlook, foreign currency exchange rates, deleveraging plans, expected dividends and share repurchases of the Company, the Company’s sales pipeline and anticipated profitability and growth, plans, strategies and objectives for future operations, strategic value creation, risk profile and investment strategies, any statements regarding future economic conditions or performance and any statements with respect to the future impacts of the Worldpay Sale or any agreements or arrangements entered into in connection with such transaction, the expected financial and operational results of the Company, and expectations regarding the Company’s business or organization after the separation of the Worldpay Merchant Solutions business. These statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue,” “likely,” and similar expressions, and include statements reflecting future results, statements of outlook and various accruals and estimates. These statements relate to future events and our future results and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs as well as assumptions made by, and information currently available to, management.
Actual results, performance or achievement could differ materially from these forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include the following, without limitation:
Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.
Fidelity National Information Services, Inc. Earnings Release Supplemental Financial Information May 6, 2024
Exhibit A
Condensed Consolidated Statements of Earnings (Loss) - Unaudited for the three months ended March 31, 2024 and 2023
Exhibit B
Condensed Consolidated Balance Sheets - Unaudited as of March 31, 2024, and December 31, 2023
Exhibit C
Condensed Consolidated Statements of Cash Flows - Unaudited for the three months ended March 31, 2024 and 2023
Exhibit D
Supplemental Non-GAAP Adjusted Revenue Growth - Unaudited for the three months ended March 31, 2024 and 2023
Exhibit E
Supplemental Disaggregation of Revenue - Recast and Unaudited for the three months ended March 31, 2024 and 2023
Exhibit F
Supplemental Non-GAAP Financial Information - Recast and Unaudited for the three months ended March 31, 2024 and 2023
Exhibit G
Supplemental Non-GAAP Cash flow Measures - Unaudited for the three months ended March 31, 2024 and 2023
Exhibit H
Supplemental GAAP to Non-GAAP Reconciliations - Unaudited for the three months ended March 31, 2024 and 2023
Exhibit I
Supplemental Financial Information of Worldpay - Unaudited for the two months ended March 31, 2024
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)— UNAUDITED
(In millions, except per share amounts)
Exhibit A
Three months ended March 31,
2024
2023
Revenue
$
2,467
$
2,397
Cost of revenue
1,552
1,569
Gross profit
915
828
Selling, general, and administrative expenses
573
517
Asset impairments
14
—
Other operating (income) expense, net - related party
(33
)
—
Operating income (loss)
361
311
Other income (expense):
Interest expense, net
(77
)
(142
)
Other income (expense), net
(154
)
(36
)
Total other income (expense), net
(231
)
(178
)
Earnings (loss) before income taxes and equity method investment earnings (loss)
130
133
Provision (benefit) for income taxes
26
37
Equity method investment earnings (loss), net of tax
(86
)
—
Net earnings (loss) from continuing operations
18
96
Earnings (loss) from discontinued operations, net of tax
707
45
Net earnings (loss)
725
141
Net (earnings) loss attributable to noncontrolling interest from continuing operations
(1
)
—
Net (earnings) loss attributable to noncontrolling interest from discontinued operations
—
(1
)
Net earnings (loss) attributable to FIS common stockholders
$
724
$
140
Net earnings (loss) attributable to FIS:
Continuing operations
$
17
$
96
Discontinued operations
707
44
Total
$
724
$
140
Basic earnings (loss) per common share attributable to FIS:
Continuing operations
$
0.03
$
0.16
Discontinued operations
1.23
0.07
Total
$
1.26
$
0.24
Diluted earnings (loss) per common share attributable to FIS:
Continuing operations
$
0.03
$
0.16
Discontinued operations
1.22
0.07
Total
$
1.25
$
0.24
Weighted average common shares outstanding:
Basic
576
592
Diluted
578
593
Amounts in table may not sum or calculate due to rounding.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions, except per share amounts)
Exhibit B
March 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
3,329
$
440
Settlement assets
585
617
Trade receivables, net
1,685
1,730
Other receivables
321
287
Receivable from related party
153
—
Prepaid expenses and other current assets
623
603
Current assets held for sale
942
10,111
Total current assets
7,638
13,788
Property and equipment, net
668
695
Goodwill
16,974
16,971
Intangible assets, net
1,682
1,823
Software, net
2,133
2,115
Equity method investment
4,131
—
Other noncurrent assets
1,521
1,528
Deferred contract costs, net
1,105
1,076
Noncurrent assets held for sale
19
17,109
Total assets
$
35,871
$
55,105
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable, accrued and other liabilities
$
2,036
$
1,859
Settlement payables
607
635
Deferred revenue
906
832
Short-term borrowings
—
4,760
Current portion of long-term debt
587
1,348
Current liabilities held for sale
894
8,884
Total current liabilities
5,030
18,318
Long-term debt, excluding current portion
10,607
12,970
Deferred income taxes
877
2,179
Other noncurrent liabilities
1,332
1,446
Noncurrent liabilities held for sale
—
1,093
Total liabilities
17,846
36,006
Equity:
FIS stockholders' equity:
Preferred stock $0.01 par value
—
—
Common stock $0.01 par value
6
6
Additional paid in capital
46,968
46,935
(Accumulated deficit) retained earnings
(22,347
)
(22,864
)
Accumulated other comprehensive earnings (loss)
(432
)
(260
)
Treasury stock, at cost
(6,174
)
(4,724
)
Total FIS stockholders' equity
18,021
19,093
Noncontrolling interest
4
6
Total equity
18,025
19,099
Total liabilities and equity
$
35,871
$
55,105
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
Exhibit C
Three months ended March 31,
2024
2023
Cash flows from operating activities:
Net earnings (loss)
$
725
$
141
Less earnings (loss) from discontinued operations, net of tax
707
45
Net earnings (loss) from continuing operations
18
96
Adjustment to reconcile net earnings (loss) from continuing operations to net cash provided by operating activities:
Depreciation and amortization
428
447
Amortization of debt issuance costs
6
8
Asset impairments
14
—
Loss on extinguishment of debt
174
—
Loss (gain) on sale of businesses, investments and other
14
—
Stock-based compensation
31
13
Loss from equity method investment
86
—
Deferred income taxes
(64
)
(10
)
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency:
Trade and other receivables
133
125
Receivable from related party
(153
)
—
Settlement activity
12
4
Prepaid expenses and other assets
(116
)
(163
)
Deferred contract costs
(115
)
(102
)
Deferred revenue
45
58
Accounts payable, accrued liabilities and other liabilities
(307
)
(185
)
Net cash provided by operating activities from continuing operations
206
291
Cash flows from investing activities:
Additions to property and equipment
(27
)
(39
)
Additions to software
(175
)
(154
)
Settlement of net investment hedge cross-currency interest rate swaps
5
(10
)
Net proceeds from sale of businesses and investments
12,795
—
Cash divested from sale of business
(3,137
)
—
Acquisitions, net of cash acquired
(56
)
—
Other investing activities, net
(24
)
(4
)
Net cash provided by (used in) investing activities
9,381
(207
)
Cash flows from financing activities from continuing operations:
Borrowings
13,441
20,233
Repayment of borrowings and other financing obligations
(21,379
)
(20,538
)
Debt issuance costs
—
(2
)
Net proceeds from stock issued under stock-based compensation plans
—
47
Treasury stock activity
(1,342
)
(14
)
Dividends paid
(209
)
(309
)
Purchase of noncontrolling interest
—
(173
)
Other financing activities, net
43
(1
)
Net cash provided by (used in) financing activities from continuing operations
(9,446
)
(757
)
Discontinued operations
Net cash provided by (used in) operating activities
(241
)
341
Net cash provided by (used in) investing activities
(39
)
(86
)
Net cash provided by (used in) financing activities
(65
)
(139
)
Net cash provided by (used in) discontinued operations
(345
)
116
Effect of foreign currency exchange rate changes on cash from continuing operations
(17
)
9
Effect of foreign currency exchange rate changes on cash from discontinued operations
(25
)
77
Net increase (decrease) in cash, cash equivalents and restricted cash
(246
)
(471
)
Cash, cash equivalents and restricted cash, beginning of period
4,414
4,813
Cash, cash equivalents and restricted cash, end of period
$
4,168
$
4,342
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP ORGANIC REVENUE GROWTH — UNAUDITED
(In millions)
Exhibit D
Three months ended March 31,
2024
2023
Revenue
FX
Constant Currency Revenue
Revenue
Adjusted
Growth (1)
Banking Solutions
$
1,684
$
(1
)
$
1,683
$
1,646
2
%
Capital Market Solutions
706
(3
)
703
663
6
%
Operating segment total
2,390
(4
)
2,386
2,309
3
%
Corporate and Other
77
(1
)
76
88
Consolidated FIS
$
2,467
$
(5
)
$
2,462
$
2,397
Amounts in table may not sum or calculate due to rounding.
(1)
Adjusted growth excludes Corporate and Other.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL DISAGGREGATION OF REVENUE — RECAST AND UNAUDITED
(In millions)
Exhibit E
In the following tables, revenue is disaggregated by primary geographical market and type of revenue. The tables also include a reconciliation of the disaggregated revenue with the Company's reportable segments.
For the three months ended March 31, 2024 (in millions):
Banking Solutions
Capital Market Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
1,431
$
445
$
41
$
1,917
All others
253
261
36
550
Total
$
1,684
$
706
$
77
$
2,467
Type of Revenue:
Recurring revenue:
Transaction processing and services (1)
$
1,264
$
371
$
47
$
1,682
Software maintenance
91
143
—
234
Other recurring
64
22
10
96
Total recurring
1,419
536
57
2,012
Software license
50
74
—
124
Professional services
132
96
1
229
Other non-recurring (1)
83
—
19
102
Total
$
1,684
$
706
$
77
$
2,467
For the three months ended March 31, 2023 (in millions):
Banking Solutions
Capital Market Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
1,420
$
425
$
47
$
1,892
All others
226
238
41
505
Total
$
1,646
$
663
$
88
$
2,397
Type of Revenue:
Recurring revenue:
Transaction processing and services (1)
$
1,225
$
342
$
67
$
1,634
Software maintenance
90
129
—
219
Other recurring
54
19
10
83
Total recurring
1,369
490
77
1,936
Software license
12
73
—
85
Professional services
154
100
2
256
Other non-recurring (1)
111
—
9
120
Total
$
1,646
$
663
$
88
$
2,397
(1)
December 31, 2023, was the final deadline for states to complete all benefit issuance under federally funded pandemic relief programs. Accordingly, revenue associated with services the Company provided related to these programs has been classified as Other non-recurring commencing in the fourth quarter of 2023, and related prior-period amounts have been reclassified from Transaction processing and services to Other non-recurring for comparability.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — RECAST AND UNAUDITED
(In millions)
Exhibit F
As a result of our ongoing portfolio assessments, the Company reclassified certain non-strategic operations from Banking Solutions to Corporate and Other during the fourth quarter of 2023. Revenue during the year ended December 31, 2023, from the operations reclassified during the fourth quarter of 2023 represented approximately 1% of consolidated revenue for the year ended December 31, 2023. During the quarter ended December 31, 2023, the Company also reclassified revenue associated with federally funded pandemic relief programs from recurring to non-recurring based on the publicly announced termination of benefits under these programs. The following tables recast 2023 and 2022 quarterly and full-year revenue to reflect the impact of these reclassifications.
Fiscal year 2023
Banking Solutions Revenue
Q1
Q2
Q3
Q4
Full Year
Recurring revenue
$
1,369
$
1,388
$
1,391
$
1,423
$
5,572
Professional services revenue
154
156
125
126
562
Other non-recurring revenue
123
121
213
142
599
Banking Solutions revenue
$
1,646
$
1,666
$
1,730
$
1,692
$
6,733
Fiscal year 2022
Banking Solutions Revenue
Q1
Q2
Q3
Q4
Full Year
Recurring revenue
$
1,331
$
1,352
$
1,340
$
1,330
$
5,353
Professional services revenue
144
154
153
181
632
Other non-recurring revenue
150
135
172
183
639
Banking Solutions revenue
$
1,625
$
1,641
$
1,664
$
1,694
$
6,624
Amounts in table may not sum or calculate due to rounding.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED
(In millions)
Exhibit G
Three months ended March 31,
2024
2023
Net cash provided by operating activities
$
206
$
291
Non-GAAP adjustments:
Acquisition, integration and other payments (1)
103
78
Settlement activity
(12
)
(4
)
Adjusted cash flows from operations
297
365
Capital expenditures
(202
)
(193
)
Free cash flow
$
95
$
172
Free cash flow reflects adjusted cash flows from operations less capital expenditures (additions to property and equipment and additions to software). Free cash flow does not represent our residual cash flows available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure. Free cash flow as presented in this earnings release excludes cash flows from discontinued operations.
(1)
Adjusted cash flows from operations and free cash flow for the three months ended March 31, 2024 and 2023, exclude cash payments for certain acquisition, integration and other costs (see Note 2 to Exhibit H), net of related tax impact. The related tax impact totaled $18 million and $14 million for the three months ended March 31, 2024 and 2023, respectively.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions, except per share amounts)
Exhibit H
Three months ended March 31,
2024
2023
Net earnings (loss) attributable to FIS from continuing operations
$
17
$
96
Provision (benefit) for income taxes
26
37
Interest expense, net
77
142
Equity method investment (earnings) loss, net of tax
86
—
Other, net
155
36
Operating income (loss), as reported
361
311
Depreciation and amortization, excluding purchase accounting amortization
263
271
Non-GAAP adjustments:
Purchase accounting amortization (1)
165
176
Acquisition, integration and other costs (2)
158
100
Asset impairments (3)
14
—
Indirect Worldpay business support costs (4)
14
42
Adjusted EBITDA from continuing operations
$
975
$
900
Net earnings (loss) attributable to FIS from discontinued operations
$
707
$
44
Provision (benefit) for income taxes
(991
)
11
Interest expense, net
(1
)
(5
)
Other, net
470
(24
)
Operating income (loss)
185
26
Depreciation and amortization, excluding purchase accounting amortization
3
76
Non-GAAP adjustments:
Purchase accounting amortization (1)
—
372
Acquisition, integration and other costs (2)
13
27
Indirect Worldpay business support costs (4)
(14
)
(42
)
Adjusted EBITDA from discontinued operations
$
187
$
459
Adjusted EBITDA
$
1,162
$
1,359
See Notes to Exhibit H.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions, except per share amounts)
Exhibit H (continued)
Three months ended March 31,
2024
2023
Earnings (loss) attributable to FIS from continuing operations
$
17
$
96
Equity method investment (earnings) loss, net of tax
86
—
Earnings (loss) attributable to FIS from continuing operations, excluding equity method investment earnings (loss)
103
96
Non-GAAP adjustments from continuing operations:
Purchase accounting amortization (1)
165
176
Acquisition, integration and other costs (2)
158
110
Asset impairments (3)
14
—
Indirect Worldpay business support costs (4)
14
42
Non-operating (income) expense (5)
154
36
Non-GAAP tax (provision) benefit (6)
(65
)
(34
)
Total non-GAAP adjustments from continuing operations
440
330
Adjusted net earnings attributable to FIS from continuing operations, excluding equity method investment earnings (loss)
543
426
Equity method investment earnings (loss), net of tax (7)
(86
)
—
Non-GAAP adjustments on equity method investment earnings (loss), net of related (provision) benefit for income taxes (7) (8)
178
—
Adjusted equity method investment earnings (loss) (7)
92
—
Adjusted net earnings attributable to FIS from continuing operations
$
635
$
426
Earnings (loss) attributable to FIS from discontinued operations, net of tax
$
707
$
44
Non-GAAP adjustments from discontinued operations:
Purchase accounting amortization (1)
—
372
Acquisition, integration and other costs (2)
13
36
Indirect Worldpay business support costs (4)
(14
)
(42
)
Amortization on long-lived assets held for sale (9)
(30
)
—
Non-operating (income) expense (5)
6
(25
)
Loss on sale of disposal group (10)
466
—
Non-GAAP tax (provision) benefit (6)
(1,015
)
(44
)
Total non-GAAP adjustments from discontinued operations
(574
)
297
Adjusted net earnings attributable to FIS from discontinued operations
$
133
$
341
Adjusted net earnings attributable to FIS common stockholders
$
768
$
767
See Notes to Exhibit H.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions, except per share amounts)
Exhibit H (continued)
Three months ended March 31,
2024
2023
Earnings (loss) attributable to FIS from continuing operations
$
0.03
$
0.16
Equity method investment (earnings) loss, net of tax
0.15
—
Earnings (loss) attributable to FIS from continuing operations, excluding equity method investment earnings (loss)
0.18
0.16
Non-GAAP adjustments from continuing operations:
Purchase accounting amortization (1)
0.29
0.30
Acquisition, integration and other costs (2)
0.27
0.19
Asset impairments (3)
0.02
—
Indirect Worldpay business support costs (4)
0.02
0.07
Non-operating (income) expense (5)
0.27
0.06
Non-GAAP tax (provision) benefit (6)
(0.11
)
(0.06
)
Total non-GAAP adjustments from continuing operations
0.76
0.56
Adjusted net earnings attributable to FIS from continuing operations, excluding equity method investment earnings (loss)
0.94
0.72
Equity method investment earnings (loss) (7)
(0.15
)
—
Non-GAAP adjustments on Equity method investment earnings (loss), net of related (provision) benefit for income taxes (7) (8)
0.31
$
—
Adjusted equity method investment earnings (loss) (7)
0.16
—
Adjusted net earnings attributable to FIS from continuing operations
$
1.10
$
0.72
Earnings (loss) attributable to FIS from discontinued operations, net of tax
$
1.22
$
0.07
Non-GAAP adjustments from discontinued operations:
Purchase accounting amortization (1)
—
0.63
Acquisition, integration and other costs (2)
0.02
0.06
Indirect Worldpay business support costs (4)
(0.02
)
(0.07
)
Amortization on long-lived assets held for sale (9)
(0.05
)
—
Non-operating (income) expense (5)
0.01
(0.04
)
Loss on sale of disposal group (10)
0.81
—
Non-GAAP tax (provision) benefit (6)
(1.76
)
(0.07
)
Total non-GAAP adjustments from discontinued operations
(0.99
)
0.51
Adjusted net earnings attributable to FIS from discontinued operations
$
0.23
$
0.58
Adjusted net earnings attributable to FIS common stockholders
$
1.33
$
1.29
Weighted average shares outstanding-diluted
578
593
Amounts in table may not sum or calculate due to rounding.
See Notes to Exhibit H.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED
(In millions, except per share amounts)
Exhibit H (continued)
Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliations for the three months ended March 31, 2024 and 2023.
(1)
This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, technology assets, trademarks and trade names. The Company has excluded the impact of purchase price amortization expense as such amounts can be significantly impacted by the timing and/or size of acquisitions. Although the Company excludes these amounts from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of assets that relate to past acquisitions will recur in future periods until such assets have been fully amortized. Any future acquisitions may result in the amortization of future assets.
(2)
This item represents costs comprised of the following:
Three months ended
March 31,
2024
2023
Continuing operations:
Acquisition and integration
$
24
$
6
Enterprise transformation, including Future Forward and platform modernization
73
71
Severance and other termination expenses
18
23
Separation of the Worldpay Merchant Solutions business
30
—
Incremental stock compensation directly attributable to specific programs
11
—
Other, including divestiture-related expenses and enterprise cost control and other initiatives
2
—
Subtotal
158
100
Accelerated amortization (a)
—
10
Total from continuing operations
$
158
$
110
Discontinued operations:
Acquisition and integration
$
—
$
3
Enterprise transformation, including Future Forward and platform modernization
1
5
Severance and other termination expenses
1
5
Separation of the Worldpay Merchant Solutions business
8
11
Incremental stock compensation directly attributable to specific programs
—
—
Other, including divestiture-related expenses and enterprise cost control and other initiatives
3
3
Subtotal
13
27
Accelerated amortization (a)
—
9
Total from discontinued operations
$
13
$
36
Total consolidated
$
171
$
146
Amounts in table may not sum due to rounding.
(a)
For purposes of calculating Adjusted net earnings, this item includes incremental amortization expense associated with shortened estimated useful lives and accelerated amortization methods for certain software and deferred contract cost assets driven by the Company's platform modernization. The incremental amortization expenses are included in the Depreciation and amortization, excluding purchase accounting amortization line item within the Adjusted EBITDA reconciliation.
(3)
For the three months ended March 31, 2024, this item includes impairments primarily related to the termination of certain internally developed software projects.
(4)
This item represents costs that were incurred in support of the Worldpay Merchant Solutions business prior to the separation but are not directly attributable to it and thus were not recorded in discontinued operations. The Company expects that it will be reimbursed for these expenses as part of Transition Services Agreements with the purchaser or eliminate them post separation; therefore, the expenses have been adjusted out of continuing operations and added to discontinued operations.
(5)
Non-operating (income) expense primarily consists of other income and expense items outside of the Company's operating activities, including fair value adjustments on certain non-operating assets and liabilities and foreign currency transaction remeasurement gains and losses. For the three months ended March 31, 2024, this item also includes loss on extinguishment of debt of approximately $174 million relating to tender discounts and fees; the write-off of unamortized bond discounts, debt issuance costs and fair value basis adjustments; and gains on related derivative instruments.
(6)
This adjustment is based on a normalized adjusted earnings tax rate of 14.5% and 14.0% for the periods ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, the Company recorded a tax benefit of $991 million in its earnings from discontinued operations primarily from the write-off of U.S. deferred tax liabilities that were not transferred in the Worldpay Sale, net of the estimated current U.S. tax cost that the Company expects to incur as a result of the Worldpay Sale. This adjustment includes the removal of the impact of the tax benefit of these items from our earnings for this period.
(7)
FIS completed the separation of Worldpay on January 31, 2024, retaining a non-controlling 45% ownership interest that is recorded under the equity method of accounting. FIS' share of Worldpay's results for the first quarter of 2024 under the equity method of accounting reflects activity for the two-month period beginning on February 1, 2024.
(8)
This item represents FIS' proportionate share of Worldpay's non-GAAP adjustments on its earnings (loss) consistent with FIS' non-GAAP measures and is comprised of the following:
Two months ended March 31, 2024
FIS' share of Worldpay's purchase accounting amortization
$
135
FIS' share of Worldpay's acquisition, integration and other costs (a)
85
FIS' share of Worldpay's non-operating (income) expense
(8
)
Non-GAAP tax (provision) benefit
(34
)
Non-GAAP adjustments on Equity method investment earnings (loss), net of related (provision) benefit for income taxes
$
178
Amounts in table may not sum due to rounding.
(a)
Worldpay acquisition, integration, and other costs for the two months ended March 31, 2024, consist primarily of transaction costs related to the separation from FIS.
(9)
The Company stopped recording depreciation and amortization on the long-lived assets classified as held for sale beginning July 5, 2023. The amount of depreciation and amortization that would have been recorded in discontinued operations had these assets not been classified as held for sale has been deducted from adjusted net earnings for comparability purposes.
(10)
We closed the sale of Worldpay on January 31, 2024. Loss on sale of disposal group of $466 million reflects the impact of the excess of the carrying value of the disposal group to the estimated fair value less estimated cost to sell.FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit I
The Company completed the Worldpay Sale on January 31, 2024. The results of the Worldpay Merchant Solutions business prior to the completion of the Worldpay Sale have been presented as discontinued operations. The following table represents a reconciliation of the major components of Earnings (loss) from discontinued operations, net of tax, presented in the consolidated statements of earnings (loss), reflecting activity through January 31, 2024 (the date the Worldpay Sale closed) (in millions). The Company's presentation of earnings (loss) from discontinued operations excludes general corporate overhead costs that were historically allocated to the Worldpay Merchant Solutions business. Additionally, beginning on July 5, 2023, the Company stopped amortization of long-lived assets held for sale in accordance with ASC 360.
One month
Three months
ended
ended
January 31, 2024
March 31, 2023
Major components of earnings (loss) from discontinued operations before income taxes:
Revenue
$
403
$
1,113
Cost of revenue
(63
)
(600
)
Selling, general, and administrative expenses
(155
)
(487
)
Interest income (expense), net
1
5
Other, net
(4
)
24
Earnings (loss) from discontinued operations related to major components of pretax earnings (loss)
182
55
Loss on sale of disposal group (1)
(466
)
—
Earnings (loss) from discontinued operations
(284
)
55
Provision (benefit) for income taxes (2)
(991
)
11
Earnings (loss) from discontinued operations, net of tax
$
707
$
44
(1)
Loss on sale of disposal group of $466 million reflects the impact of the excess of the carrying value of the disposal group over the estimated fair value less cost to sell.
(2)
The Company recorded a tax benefit of $991 million primarily from the write-off of U.S. deferred tax liabilities that were not transferred in the Worldpay Sale, net of the estimated current U.S. tax cost that the Company expects to incur as a result of the Worldpay Sale and which was recorded based on available data and management determinations as of March 31, 2024. Post-closing selling price adjustments and completion of other purchase agreement provisions in connection with the Worldpay Sale could result in further adjustments to the loss on sale amount and the estimated tax impact.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION OF WORLDPAY HOLDCO, LLC — UNAUDITED
(In millions)
Exhibit J
Summary Worldpay Holdco, LLC financial information is as follows:
Two months ended March 31, 2024 (1)
Revenue
$
832
Gross profit
$
385
Earnings (loss) before income taxes
$
(230
)
Net earnings (loss) attributable to Worldpay Holdco, LLC
$
(243
)
FIS share of net earnings (loss) attributable to Worldpay Holdco, LLC, net of tax (2)
$
(86
)
The following is a GAAP to Non-GAAP reconciliation of Adjusted EBITDA for Worldpay Holdco LLC.
Two months ended March 31, 2024 (1)
Net earnings (loss) attributable to Worldpay Holdco, LLC
$
(243
)
Provision (benefit) for income taxes
12
Interest expense, net
116
Other, net
(17
)
Operating income (loss)
(132
)
Depreciation and amortization, excluding purchase accounting amortization
10
Non-GAAP adjustments:
Purchase accounting amortization
300
Transition, acquisition, integration and other costs (3)
188
Adjusted EBITDA
$
366
(1)
FIS completed the separation of Worldpay on January 31, 2024. Accordingly, Worldpay's results for the first quarter of 2024 reflect activity for the two-month period beginning on February 1, 2024.
(2)
Amount includes our share of the net income attributable to Worldpay and our investor-level tax benefit of $23 million and is reported as Equity method investment earnings (loss), net of tax on our consolidated statement of earnings.
(3)
This item represents primarily transaction costs associated with the separation of Worldpay from FIS.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506854589/en/
Ellyn Raftery, 904.438.6083 Chief Marketing & Communications Officer FIS Global Marketing & Corporate Communications Ellyn.Raftery@fisglobal.com
George Mihalos, 904.438.6438 Senior Vice President FIS Investor Relations Georgios.Mihalos@fisglobal.com
1 Year Fidelity National Inform... Chart |
1 Month Fidelity National Inform... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions