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FIS Reports First Quarter 2014 Rise in Revenue and Earnings

FIS™ (NYSE:FIS), the world’s largest provider of banking and payments technology, today announced first quarter GAAP revenue of $1.52 billion compared to $1.48 billion a year earlier. GAAP net earnings from continuing operations attributable to common stockholders increased to $155 million, or $0.53 per diluted share, compared to $148 million, or $0.50 per diluted share in the prior year quarter.

Non-GAAP adjusted net earnings from continuing operations attributable to common stockholders increased to $197 million from $182 million in the first quarter 2013 and adjusted net earnings per diluted share increased 10 percent to $0.68 from $0.62 in the first quarter 2013. First quarter 2014 non-GAAP adjusted net earnings from continuing operations excludes acquisition-related purchase amortization of $0.13 per share and includes $0.02 per share related to contract settlement revenue. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.

“We are pleased with our first quarter results and the execution of our growth strategy,” said Frank Martire, chairman and chief executive officer of FIS. “Our consistently strong performance reflects demand for FIS solutions which enable financial institutions to succeed while meeting increased efficiency, risk management and compliance requirements. We are confident in our 2014 outlook and long-term growth prospects.”

Segment Information

The following is a discussion of first quarter results by segment:

  • Financial Solutions:

Financial Solutions revenue was $587 million, an increase of 2 percent on an organic basis, compared to $575 million in the first quarter 2013, reflecting continued growth in eBanking solutions, consulting and services. Financial Solutions adjusted EBITDA was $227 million, flat with the first quarter of 2013, while adjusted EBITDA margin was 38.7 percent compared to 39.6 percent a year earlier, reflecting a change in revenue mix and lower termination fees.

  • Payment Solutions:

Payment Solutions GAAP revenue was $620 million and adjusted revenue was $629 million, an increase of 3 percent on an organic basis, compared to $612 million in the first quarter 2013 reflecting growth in image and output solutions and card solutions. Payment Solutions adjusted EBITDA rose 2 percent to $264 million compared to $258 million in the first quarter of 2013. Adjusted EBITDA margin was 42.1 percent compared to 42.2 percent a year earlier.

  • International Solutions:

International Solutions revenue increased 8 percent to $314 million compared to $292 million in the first quarter 2013 and increased 10 percent on an organic basis excluding an unfavorable currency impact of $14 million. The increase in revenue reflects growth across all major regions. International Solutions adjusted EBITDA was $59 million, flat compared to first quarter of 2013. Adjusted EBITDA margin was 18.8 percent compared to 20.3 percent a year earlier, reflecting higher expenses related to the global financial institutions market and lower license revenue.

  • Corporate/Other:

Corporate costs totaled $105 million in the first quarter 2014 compared to $117 million in the prior-year quarter, primarily reflecting lower administrative expenses. Interest expense, net of interest income, declined to $41 million in the first quarter of 2014 compared to $52 million in the first quarter 2013, reflecting lower debt costs resulting from attainment of investment grade ratings and debt refinancing in the first half of 2013. The effective tax rate was 33.3% in the first quarter of 2014 compared to 32.9% in the first quarter of 2013.

Balance Sheet and Cash Flow

Cash and cash equivalents totaled $738 million as of March 31, 2014 compared to $548 million as of year-end 2013. Debt outstanding totaled $4.8 billion compared to $4.5 billion at December 31, 2013.

Net cash provided by operations increased to $223 million in the first quarter of 2014. Capital expenditures totaled $90 million compared to $74 million in the first quarter 2013. Free cash flow, which excludes settlement activity related to the payments businesses and the previously announced Capco acquisition related payments, increased to $158 million for first quarter of 2014, compared to $148 million in the 2013 quarter.

FIS repurchased approximately 3.2 million common shares at a total cost of approximately $175 million and paid shareholder dividends of $70 million in the first quarter 2014, compared to $100 million and $65 million respectively, in the prior year quarter.

2014 Outlook

FIS reiterated its full year 2014 outlook as follows:

  • Organic revenue growth of 4.5 to 6.5 percent
  • EBITDA, as adjusted, growth of 4.5 to 6.5 percent
  • EPS from continuing operations of $3.05 to $3.16, as adjusted, an increase of 8 to 12 percent compared to $2.83 per share in 2013
  • Free cash flow is expected to approximate adjusted net earnings

Webcast

FIS will host a webcast on May 1, 2014, to discuss first quarter 2014 results beginning at 8:30 a.m. ET. To listen to 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 Web site, and a telephone replay will be available through May 15, 2014 by dialing 800.475.6701 (U.S.) or 320.365.3844 (International). The access code is 324136. To access a .PDF version of this release and accompanying financial tables, go to www.investor.fisglobal.com.

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. For these reasons, management also uses these measures in part to assess its performance.

These non-GAAP measures include organic revenue, adjusted revenue, EBITDA, adjusted EBITDA and adjusted EBITDA margin, adjusted cash flow from operations, adjusted net earnings (including per share amounts) and free cash flow.

Organic revenue includes adjusted revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation.

Adjusted revenue (2014) includes reported revenue and is increased by $9 million for a negotiated contract cash settlement for the extinguishment of certain contractual minimums with a reseller. Although the 2014 cash settlement has no contractual performance obligation, under GAAP the cash settlement revenue is amortized in this circumstance over the remaining relationship with the reseller. Adjusted EBITDA (2014) is also adjusted for this settlement.

EBITDA is earnings from continuing operations before interest, taxes, depreciation and amortization.

Adjusted net earnings excludes the after-tax impact of acquisition-related amortization and, for 2014, includes the after-tax impact of adjusted revenue.

Adjusted cash flow from operations is GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations and certain payments for contingent purchase price and incentive compensation programs associated with the 2010 acquisition of Capco.

Adjusted net earnings per diluted share, or adjusted EPS, is equal to adjusted net earnings divided by weighted average diluted shares outstanding.

Free cash flow is adjusted operating cash flow 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.

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.

About FIS

FIS is the world’s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 110 countries. Headquartered in Jacksonville, Fla., FIS employs more than 39,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. First in financial technology, FIS tops the annual FinTech 100 list, is 434 on the Fortune 500 and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.

Forward-Looking Statements

This news 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, including statements about future revenue, organic revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”), earnings per share and margin expansion, as well as other statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. 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. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.

Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include without limitation:

  • changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in either or both the United States and international lending, capital and financial markets;
  • the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations;
  • the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries;
  • changes in the growth rates of the markets for our solutions;
  • failures to adapt our solutions to changes in technology or in the marketplace;
  • internal or external security breaches of our systems, including those relating to the theft of personal information and computer viruses affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events;
  • the reaction of our current and potential customers to communications from us or our regulators regarding information security, risk management, internal audit or other matters;
  • competitive pressures on pricing related to our solutions including the ability to attract new, or retain existing, customers;
  • an operational or natural disaster at one of our major operations centers;
  • and other risks detailed in “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and other filings with the SEC.

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 1, 2014

Exhibit A Consolidated Statements of Earnings - Unaudited for the three months ended March 31, 2014 and 2013

Exhibit B Consolidated Balance Sheets - Unaudited as of March 31, 2014 and December 31, 2013

Exhibit C Consolidated Statements of Cash Flows - Unaudited for the three months ended March 31, 2014 and 2013

Exhibit D Supplemental Non-GAAP Financial Information - Unaudited for the three months ended March 31, 2014 and 2013

Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the three months ended March 31, 2014 and 2013

FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
 
  Exhibit A
 
Three months ended March 31,
2014     2013  
Processing and services revenues $ 1,520.3 $ 1,478.0
Cost of revenues 1,050.0   1,008.0  
Gross profit 470.3 470.0
Selling, general and administrative expenses 186.6   194.9  
Operating income 283.7   275.1  
Other income (expense):
Interest expense, net (41.1 ) (51.7 )
Other income (expense), net (0.5 ) 5.1  
Total other income (expense), net (41.6 ) (46.6 )
Earnings from continuing operations before income taxes 242.1 228.5
Provision for income taxes 80.6   75.2  
Earnings from continuing operations, net of tax 161.5 153.3
Loss from discontinued operations, net of tax (0.4 ) (3.9 )
Net earnings 161.1 149.4
Net earnings attributable to noncontrolling interest (6.6 ) (5.3 )
Net earnings attributable to FIS common stockholders $ 154.5   $ 144.1  
Net earnings per share-basic from continuing operations attributable to FIS common stockholders $ 0.54 $ 0.51
Net loss per share-basic from discontinued operations attributable to FIS common stockholders   (0.01 )
Net earnings per share-basic attributable to FIS common stockholders * $ 0.54   $ 0.50  
Weighted average shares outstanding-basic 288.0   291.0  
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders $ 0.53 $ 0.50
Net loss per share-diluted from discontinued operations attributable to FIS common stockholders   (0.01 )
Net earnings per share-diluted attributable to FIS common stockholders * $ 0.53   $ 0.49  
Weighted average shares outstanding-diluted 291.9   295.5  
Amounts attributable to FIS common stockholders:
Earnings from continuing operations, net of tax $ 154.9 $ 148.0
Loss from discontinued operations, net of tax (0.4 ) (3.9 )
Net earnings attributable to FIS common stockholders $ 154.5   $ 144.1  
 

* Amounts may not sum due to rounding.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions, except per share data)
 
    Exhibit B
 
As of As of
March 31, December 31,
2014 2013
Assets
Current assets:
Cash and cash equivalents $ 737.7 $ 547.5
Settlement deposits 444.7 327.4
Trade receivables, net 987.9 987.9
Settlement receivables 257.2 178.2
Other receivables 19.4 62.1
Due from Brazilian venture partner 34.9 35.8
Prepaid expenses and other current assets 153.7 154.1
Deferred income taxes 52.8   58.9  
Total current assets 2,688.3 2,351.9
Property and equipment, net 449.2 439.0
Goodwill 8,500.0 8,500.0
Intangible assets, net 1,288.0 1,339.3
Computer software, net 861.1 856.5
Deferred contract costs, net 206.9 206.8
Other noncurrent assets 277.4   266.6  
Total assets $ 14,270.9   $ 13,960.1  
 
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities $ 653.2 $ 768.0
Due to Brazilian venture partner 14.4 13.7
Settlement payables 717.0 518.6
Current portion of long-term debt 49.7 128.8
Deferred revenues 270.1   243.6  
Total current liabilities 1,704.4 1,672.7
Deferred revenues 26.7 27.2
Deferred income taxes 810.7 823.6
Long-term debt, excluding current portion 4,728.9 4,339.8
Due to Brazilian venture partner 36.2 34.5
Other long-term liabilities 261.6   325.0  
Total liabilities 7,568.5   7,222.8  
Equity:
FIS stockholders’ equity:
Preferred stock $0.01 par value
Common stock $0.01 par value 3.9 3.9
Additional paid in capital 7,271.5 7,247.6
Retained earnings 2,427.6 2,341.9
Accumulated other comprehensive earnings 3.2 (9.9 )
Treasury stock $0.01 par value (3,172.1 ) (3,003.0 )
Total FIS stockholders’ equity 6,534.1 6,580.5
Noncontrolling interest 168.3   156.8  
Total equity 6,702.4   6,737.3  
Total liabilities and equity $ 14,270.9   $ 13,960.1  
 
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
 
    Exhibit C
 
Three months ended March 31,
2014 2013
Cash flows from operating activities:
Net earnings $ 161.1 $ 149.4
Adjustment to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 152.6 153.2
Amortization of debt issue costs 2.6 2.8
Gain on mFoundry (9.2 )
Stock-based compensation 13.3 13.2
Deferred income taxes (6.7 ) (15.4 )
Excess income tax benefit from exercise of stock options (8.5 ) (4.0 )
Other operating activities, net (0.6 )
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency:
Trade receivables 15.3 (12.0 )
Settlement activity 2.5 (13.9 )
Prepaid expenses and other assets (13.0 ) (35.1 )
Deferred contract costs (16.6 ) (19.7 )
Deferred revenue 25.9 (8.3 )
Accounts payable, accrued liabilities and other liabilities (105.3 ) 6.5  
Net cash provided by operating activities 222.6   207.5  
 
Cash flows from investing activities:
Additions to property and equipment (37.9 ) (31.0 )
Additions to computer software (52.0 ) (42.7 )
Acquisitions, net of cash acquired and equity investments (115.0 )
Other investing activities, net 8.5   (7.0 )
Net cash used in investing activities (81.4 ) (195.7 )
 
Cash flows from financing activities:
Borrowings 1,839.0 2,206.3
Repayment of borrowings and capital lease obligations (1,529.6 ) (1,990.1 )
Excess income tax benefit from exercise of stock options 8.5 4.0
Proceeds from exercise of stock options 12.8 18.8
Treasury stock activity (203.1 ) (105.3 )
Dividends paid (69.5 ) (64.8 )
Other financing activities, net (15.7 ) (0.7 )
Net cash provided by financing activities 42.4   68.2  
 
Effect of foreign currency exchange rate changes on cash 6.6   (7.0 )
 
Net increase in cash and cash equivalents 190.2 73.0
Cash and cash equivalents, at beginning of period 547.5   517.6  
Cash and cash equivalents, at end of period $ 737.7   $ 590.6  
 
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
         
Exhibit D
 
Three months ended March 31, 2014
Financial

Solutions

Payment

Solutions

International

Solutions

Corporate

and Other

Consolidated
Processing and services revenue $ 586.8 $ 619.5 $ 314.4 $ (0.4 ) $ 1,520.3
Non-GAAP adjustments:
Contract settlement   9.0       9.0  
Adjusted processing and services revenue $ 586.8   $ 628.5   $ 314.4   $ (0.4 ) $ 1,529.3  
Operating income (loss) $ 187.0 $ 235.5 $ 39.4 $ (178.2 ) $ 283.7
Non-GAAP adjustments:
Contract settlement 9.0 9.0
Purchase price amortization     0.1   54.8   54.9  
Non-GAAP operating income (loss) 187.0 244.5 39.5 (123.4 ) 347.6
 
Depreciation and amortization from continuing operations 39.9   19.9   19.5   18.4   97.7  
Adjusted EBITDA $ 226.9   $ 264.4   $ 59.0   $ (105.0 ) $ 445.3  
 
Non-GAAP operating margin 31.9 % 38.9 % 12.6 % N/M 22.7 %
 
Adjusted EBITDA margin 38.7 % 42.1 % 18.8 % N/M 29.1 %
 
 
Three months ended March 31, 2013
Financial

Solutions

Payment

Solutions

International

Solutions

Corporate

and Other

Consolidated
Processing and services revenue $ 575.3   $ 611.8   $ 291.6   $ (0.7 ) $ 1,478.0  
Operating income (loss) $ 188.4 $ 238.5 $ 40.3 $ (192.1 ) $ 275.1
Non-GAAP adjustments:
Purchase price amortization     0.1   60.2   60.3  
Non-GAAP operating income (loss) 188.4 238.5 40.4 (131.9 ) 335.4
Depreciation and amortization from continuing operations 39.2   19.8   18.7   15.2   92.9  
Adjusted EBITDA $ 227.6   $ 258.3   $ 59.1   $ (116.7 ) $ 428.3  
 
Non-GAAP operating margin 32.7 % 39.0 % 13.9 % N/M 22.7 %
 
Adjusted EBITDA margin 39.6 % 42.2 % 20.3 % N/M 29.0 %
 
Total revenue growth from prior year period
Three months ended March 31, 2014 2.0 % 2.7 % 7.8 % N/M 3.5 %
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP ORGANIC REVENUE MEASURES — UNAUDITED
(In millions)
        Exhibit D (continued)
   
Three months ended March 31,
2014 2013
Constant Adjusted Organic
Currency In Year Base Revenue
Revenue (1) FX Revenue Revenue Acquisitions Revenue Growth
Financial Solutions $ 586.8 $ 1.2 $ 588.0 $ 575.3 $ 3.8 $ 579.1 1.5 %
Payment Solutions 628.5 0.5 629.0 611.8 611.8 2.8 %
International Solutions 314.4 14.0 328.4 291.6 5.8 297.4 10.4 %
Corporate and Other (0.4 )   (0.4 ) (0.7 )   (0.7 ) N/M
Total processing and services

revenue

$ 1,529.3   $ 15.7   $ 1,545.0   $ 1,478.0   $ 9.6   $ 1,487.6   3.9 %

 

(1) As adjusted. See note (1) for exhibit E.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED
(In millions)
 
Exhibit D (continued)
 
Three months ended March 31,
2014   2013  
Net cash provided by operating activities $ 222.6 $ 207.5
Non-GAAP adjustments:
Capco acquisition related payments (1) 28.0
Settlement activity (2.5 ) 13.9  
Adjusted cash flows from operations 248.1 221.4
Capital expenditures (89.9 ) (73.7 )
Free cash flow $ 158.2   $ 147.7  

(1) Free cash flow for the three months ended March 31, 2014 excludes payments for contingent purchase price and the New Hires and Promotions Incentive Plan associated with the 2010 acquisition of Capco. In accordance with the accounting guidance, contingent purchase price payments are included in other financing activities on the Statement of Cash Flows only to the extent they represent the original liability established at the acquisition date. Payments related to subsequent adjustments to the contingent purchase price are included in the net cash provided by operating activities.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
 
Exhibit E
   
Three months ended
March 31,
2014   2013
 
Net earnings from continuing operations attributable to FIS $ 154.9 $ 148.0
Plus provision for income taxes 80.6 75.2
Interest expense, net 41.1 51.7
Other, net 7.1   0.2
 
Operating income 283.7 275.1
Non-GAAP adjustments:
Contract settlement 9.0
Purchase price amortization 54.9   60.3
 
Non-GAAP operating income 347.6 335.4
 
Depreciation and amortization from continuing operations 97.7   92.9
Adjusted EBITDA $ 445.3   $ 428.3
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
 
        Exhibit E (continued)
 
Three months ended March 31, 2014
Purchase
Contract Price
GAAP Settlement (1) Subtotal Amort. (3) Non-GAAP
Processing and services revenue $ 1,520.3 $ 9.0 $ 1,529.3 $ $ 1,529.3
Cost of revenues 1,050.0     1,050.0   (54.9 ) 995.1  
Gross profit 470.3 9.0 479.3 54.9 534.2
Selling, general and administrative 186.6     186.6     186.6  
Operating income 283.7   9.0   292.7   54.9   347.6  
Other income (expense):
Interest income (expense), net (41.1 ) (41.1 ) (41.1 )
Other income (expense), net (0.5 )   (0.5 )   (0.5 )
Total other income (expense) (41.6 )   (41.6 )   (41.6 )
Earnings (loss) from continuing operations before income taxes 242.1 9.0 251.1 54.9 306.0
Provision for income taxes 80.6   3.0   83.6   18.4   102.0  
Earnings (loss) from continuing operations, net of tax 161.5 6.0 167.5 36.5 204.0
Earnings (loss) from discontinued operations, net of tax (4) (0.4 )   (0.4 )   (0.4 )
Net earnings (loss) 161.1 6.0 167.1 36.5 203.6
Net (earnings) loss attributable to noncontrolling interest (6.6 )   (6.6 )   (6.6 )
Net earnings (loss) attributable to FIS common stockholders $ 154.5   $ 6.0   $ 160.5   $ 36.5   $ 197.0  
 
Amounts attributable to FIS common stockholders
Earnings (loss) from continuing operations, net of tax $ 154.9 $ 6.0 $ 160.9 $ 36.5 $ 197.4
Earnings (loss) from discontinued operations, net of tax (4) (0.4 )   (0.4 )   (0.4 )
Net earnings (loss) attributable to FIS common stockholders $ 154.5   $ 6.0   $ 160.5   $ 36.5   $ 197.0  
 
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* $ 0.53   $ 0.02   $ 0.55   $ 0.13   $ 0.68  
Weighted average shares outstanding — diluted 291.9   291.9   291.9   291.9   291.9  
 
Effective tax rate 33 % 33 %
 
Supplemental information:
Depreciation and amortization $ 152.6   (54.9 ) $ 97.7  
Stock compensation expense, excluding acceleration charges $ 13.3
Stock acceleration charges  
Total stock compensation expense $ 13.3  
 
* Amounts may not sum due to rounding.
 
See accompanying notes.

FIDELITY NATIONAL INFORMATION SERVICES, INC.

SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED

(In millions)

 
        Exhibit E (continued)
 
Three months ended March 31, 2013
 
Stock and Other Purchase
Gain on Price
GAAP mFoundry (2) Subtotal Amort. (3) Non-GAAP
Processing and services revenue $ 1,478.0 $ $ 1,478.0 $ $ 1,478.0
Cost of revenues 1,008.0     1,008.0   (60.3 ) 947.7  
Gross profit 470.0 470.0 60.3 530.3
Selling, general and administrative 194.9     194.9     194.9  
Operating income 275.1     275.1   60.3   335.4  
Other income (expense):
Interest income (expense), net (51.7 ) (51.7 ) (51.7 )
Other income (expense), net 5.1   (9.2 ) (4.1 )   (4.1 )
Total other income (expense) (46.6 ) (9.2 ) (55.8 )   (55.8 )
Earnings (loss) from continuing operations before income taxes 228.5 (9.2 ) 219.3 60.3 279.6
Provision for income taxes 75.2   (3.0 ) 72.2   19.8   92.0  
Earnings (loss) from continuing operations, net of tax 153.3 (6.2 ) 147.1 40.5 187.6
Earnings (loss) from discontinued operations, net of tax (4) (3.9 )   (3.9 )   (3.9 )
Net earnings (loss) 149.4 (6.2 ) 143.2 40.5 183.7
Net (earnings) loss attributable to noncontrolling interest (5.3 )   (5.3 )   (5.3 )
Net earnings (loss) attributable to FIS common stockholders $ 144.1   $ (6.2 ) $ 137.9   $ 40.5   $ 178.4  
 
Amounts attributable to FIS common stockholders
Earnings (loss) from continuing operations, net of tax $ 148.0 $ (6.2 ) $ 141.8 $ 40.5 $ 182.3
Earnings (loss) from discontinued operations, net of tax (4) (3.9 )   (3.9 )   (3.9 )
Net earnings (loss) attributable to FIS common stockholders $ 144.1   $ (6.2 ) $ 137.9   $ 40.5   $ 178.4  
 
Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* $ 0.50   $ (0.02 ) $ 0.48   $ 0.14   $ 0.62  
Weighted average shares outstanding — diluted 295.5   295.5   295.5   295.5   295.5  
 
Effective tax rate 33 % 33 %
 
Supplemental information:
Depreciation and amortization $ 153.2   (60.3 ) $ 92.9  
Stock compensation expense, excluding acceleration charges $ 13.2
Stock acceleration charges  
Total stock compensation expense $ 13.2  
 
* Amounts may not sum due to rounding.
 
See accompanying notes.

FIDELITY NATIONAL INFORMATION SERVICES, INC.

SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED

(In millions)

Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2014 and 2013.

The adjustments are as follows:

(1) The revenue adjustment in this column represents a cash settlement for the extinguishment of certain contractual minimums with a reseller. Although the 2014 cash settlement has no contract performance obligation, revenue is amortized in this circumstance over the remaining relationship with the reseller.

(2) Gain resulting from the purchase of the remaining shares of mFoundry, Inc., representing the difference between the fair value and carrying value of the minority interest investment previously held.

(3) This column represents purchase price amortization expense on intangible assets acquired through various Company acquisitions.

(4) During the third quarter of 2010, we determined that Fidelity National Participacoes Ltda. ("Participacoes"), our item processing and remittance services business in Brazil, should be treated as a discontinued operation. Participacoes had losses of $(0.4) million and $(3.9) million during the three months ended March 31, 2014 and 2013, respectively, related to ongoing labor claim settlements that were not transferred with other assets and liabilities in the disposal.

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Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
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The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...