Third Quarter 2021
On a GAAP foundation, income grew by greater than $300 million, or 10%, to $3.5 billion. Web earnings attributable to widespread stockholders was $158 million or $0.26 per diluted share.
On an natural foundation, which excludes the affect of overseas alternate, revenues additionally grew 10%. Adjusted EBITDA grew 17% to $1.6 billion. Adjusted EBITDA margin expanded by 270 foundation factors (bps) to 45.2%, primarily as a consequence of excessive contribution margins from income development in addition to ongoing income and expense synergies. Adjusted internet earnings elevated 21% to $1.1 billion and adjusted internet earnings per share elevated 22% to $1.73 per diluted share.
|
($ hundreds of thousands, besides per share information, unaudited) |
Three Months Ended September 30, |
||||||||||
|
% |
Natural |
||||||||||
|
2021 |
2020 |
Change |
Progress 1 |
||||||||
|
Income |
$ |
3,507 |
$ |
3,197 |
10% |
10% |
|||||
|
Service provider Options |
1,161 |
1,017 |
14% |
13% |
|||||||
|
Banking Options |
1,610 |
1,488 |
8% |
8% |
|||||||
|
Capital Market Options |
654 |
587 |
11% |
10% |
|||||||
|
Company and Different |
82 |
105 |
(21)% |
||||||||
|
Adjusted EBITDA |
$ |
1,585 |
$ |
1,357 |
17% |
||||||
|
Adjusted EBITDA Margin |
45.2 |
% |
42.5 |
% |
270 bps |
||||||
|
Web earnings attributable to FIS widespread stockholders (GAAP) |
$ |
158 |
$ |
20 |
* |
||||||
|
Diluted EPS (GAAP) |
$ |
0.26 |
$ |
0.03 |
* |
||||||
|
Adjusted internet earnings |
$ |
1,070 |
$ |
887 |
21% |
||||||
|
Adjusted EPS |
$ |
1.73 |
$ |
1.42 |
22% |
||||||
|
* Signifies comparability not significant |
|||||||||||
|
1 Natural development excludes the affect of overseas forex alternate fluctuation (FX) as there was no M&A affect through the quarter |
|||||||||||
Working Phase Data
- Service provider Options:
Income grew 14%, together with a 4% headwind created by the weird shift of the U.S. tax reporting deadline in 2020 to July 15 from April 15. As in comparison with the third quarter of 2019 (professional forma for the Worldpay acquisition), income grew 16% to $1.2 billion as the worldwide economic system continues to recuperate from the continuing pandemic. Adjusted EBITDA elevated 23% over the prior 12 months interval to $600 million. Adjusted EBITDA margin expanded 380 foundation factors to 51.7%, primarily as a consequence of excessive contribution margins from new income in addition to ongoing synergies.To additional improve transparency, FIS is publishing quarterly quantity and transaction information for its Service provider phase, and third quarter efficiency is described within the following paragraph. Please see the “Further Service provider Disclosure” part beneath for historic quarterly quantity and transaction information, courting again to the primary quarter of 2019. Proforma outcomes are included for the primary three quarters of 2019.
In the course of the third quarter, World Quantity elevated 17% to $530 billion, and Transactions elevated 11% to 12.0 billion. As in comparison with the third quarter of 2019, World Quantity grew 23% and Transactions grew 13%. Quantity development in extra of transaction development displays a rise within the common greenback worth of every transaction (or elevated common ticket) through the interval. As in comparison with 2019, the tempo of common ticket improve slowed within the third quarter relative to that of the primary and second quarters, contributing to the continued enchancment in income yield on quantity.
- Banking Options:
Income grew 8% to $1.6 billion. Banking’s sturdy third quarter efficiency is primarily as a consequence of new gross sales execution. On an natural foundation, which excludes the affect of FX, income additionally elevated 8%. Adjusted EBITDA elevated 14% to $742 million. Adjusted EBITDA margin expanded 250 foundation factors over the prior 12 months interval to 46.1%, primarily as a consequence of income combine, excessive contribution margins from new income, and ongoing synergies associated to the Worldpay acquisition. - Capital Market Options:
Income grew 11% to $654 million. Capital Market’s sturdy third quarter efficiency is primarily as a consequence of strong gross sales of end-to-end SaaS options and contains an approximate 2% profit from the timing of renewals. On an natural foundation, which excludes the affect of FX, income elevated 10%. Adjusted EBITDA elevated 20% to $316 million. Adjusted EBITDA margin expanded 330 foundation factors over the prior 12 months interval to 48.4%, primarily as a consequence of excessive contribution margins from new income and income combine.
Integration Replace
The Firm achieved synergies associated to the Worldpay acquisition, exiting the third quarter of 2021 as follows:
- Income synergies of roughly $600 million on an annual run-rate foundation, together with sturdy cross-selling wins spanning the Premium Payback loyalty community, digital banking, issuer, core software program and information wins. The Firm expects to attain its $700 million annual run-rate income synergy goal by the tip of the 12 months.
- Price synergies of roughly $875 million, together with roughly $475 million of working expense synergies. The Firm expects to attain its $900 million annual run-rate expense synergy goal by the tip of the 12 months, together with working expense synergies of roughly $500 million.
Steadiness Sheet and Money Flows
As of September 30, 2021, debt excellent totaled $19.8 billion. Third quarter internet money offered by working actions was $1.8 billion, and free money move was $1.1 billion.
FIS paid dividends of $238 million and repurchased $1.2 billion in shares through the third quarter. The corporate tripled its tempo of share repurchase through the third quarter as in comparison with that of the primary and second quarters and has repurchased $2.0 billion in shares year-to-date. The corporate has 85 million shares remaining underneath its current 100 million share repurchase authorization.
Full-Yr 2021 GAAP Steering
|
($ hundreds of thousands, besides share information) |
FY 2021 |
||
|
Income |
$13,900 – $14,000 |
||
|
Diluted EPS |
$0.70 – $0.80 |
Full-Yr 2021 Non-GAAP Steering
|
($ hundreds of thousands, besides share information) |
FY 2021 |
||
|
Income (GAAP) |
$13,900 – $14,000 |
||
|
Adjusted EPS |
$6.50 – $6.60 |
Further Service provider Disclosure
|
2019 1 |
2020 |
2021 |
|||||||||||
|
1Q |
2Q |
3Q |
4Q |
FY |
1Q |
2Q |
3Q |
4Q |
FY |
1Q |
2Q |
3Q |
|
|
Income ($M) |
$937 |
$1,083 |
$1,003 |
$1,090 |
$4,113 |
$935 |
$812 |
$1,017 |
$1,003 |
$3,767 |
$966 |
$1,177 |
$1,161 |
|
Progress (Reported) |
7% |
8% |
4% |
8% |
7% |
—% |
(25)% |
1% |
(8)% |
(8)% |
3% |
45% |
14% |
|
Progress vs 2019 |
3% |
9% |
16% |
||||||||||
|
World Quantity 2 ($B) |
$400 |
$432 |
$430 |
$461 |
$1,723 |
$420 |
$399 |
$452 |
$486 |
$1,756 |
$468 |
$539 |
$530 |
|
Progress |
(1)% |
4% |
5% |
6% |
4% |
5% |
(8)% |
5% |
5% |
2% |
12% |
35% |
17% |
|
Progress vs 2019 |
17% |
25% |
23% |
||||||||||
|
US Quantity 2 ($B) |
$291 |
$316 |
$315 |
$338 |
$1,260 |
$311 |
$306 |
$336 |
$357 |
$1,310 |
$349 |
$398 |
$392 |
|
Progress |
6% |
8% |
9% |
10% |
8% |
7% |
(3)% |
7% |
6% |
4% |
12% |
30% |
17% |
|
Progress vs 2019 |
20% |
26% |
25% |
||||||||||
|
Transactions (B) |
9.8 |
10.4 |
10.6 |
11.2 |
41.9 |
10.5 |
9.3 |
10.8 |
11.3 |
41.8 |
10.7 |
11.7 |
12.0 |
|
Progress |
2% |
4% |
3% |
2% |
3% |
7% |
(11)% |
2% |
1% |
—% |
2% |
26% |
11% |
|
Progress vs 2019 |
10% |
12% |
13% |
||||||||||
|
1 2019 outcomes are professional forma for the Worldpay acquisition. |
|||||||||||||
|
2 Quantity refers back to the whole greenback worth of the transactions processed through the said interval. |
|||||||||||||
COVID-19 Replace
We’ve got continued to prioritize investments in options and companies that assist tackle the wants of our shoppers all through the continuing international pandemic with the intention to improve the Firm’s potential to speed up income development. In the course of the third quarter, the Firm’s income development continued to recuperate as COVID-19’s affect on our monetary outcomes lessened as a result of continued opening of markets, offset partially by the COVID-19 variants.
Webcast
FIS will sponsor a dwell webcast of its earnings convention name with the funding group starting at 8:30 a.m. (EDT) Thursday, November 4, 2021. To entry the webcast, go to the Investor Relations part of FIS‘ homepage, www.fisglobal.com . A replay shall be accessible after the conclusion of the dwell webcast.
About FIS
FIS is a number one supplier of know-how options for retailers, banks and capital markets companies globally. Our staff are devoted to advancing the way in which the world pays, banks and invests by making use of our scale, deep experience and data-driven insights. We assist our shoppers use know-how in modern methods to resolve business-critical challenges and ship superior experiences for his or her clients. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Commonplace & Poor’s 500® Index.
To study extra, go to www.fisglobal.com . Comply with FIS on Fb, LinkedIn and Twitter (@FISWorld).
FIS Use of Non-GAAP Monetary Data
Typically Accepted Accounting Ideas (GAAP) is the time period used to seek advice from the usual framework of pointers for monetary accounting in america. GAAP contains the requirements, conventions, and guidelines accountants comply with in recording and summarizing transactions and within the preparation of monetary statements. Along with reporting monetary ends in accordance with GAAP, we’ve offered sure non-GAAP monetary measures.
These non-GAAP measures embrace fixed forex income, natural income development, adjusted EBITDA, adjusted EBITDA margin, adjusted internet earnings, adjusted EPS, and free money move. These non-GAAP measures could also be used on this launch and/or within the hooked up supplemental monetary info.
We consider these non-GAAP measures assist buyers higher perceive the underlying fundamentals of our enterprise. As additional described beneath, the non-GAAP income and earnings measures introduced remove objects administration believes will not be indicative of FIS‘ working efficiency. The fixed forex and natural income development measures regulate for the consequences of alternate fee fluctuations, whereas natural income development additionally adjusts for acquisitions and divestitures and excludes income from Company and Different, giving buyers additional perception into our efficiency. Lastly, free money move offers additional details about the power of our enterprise to generate money. For these causes, administration additionally makes use of these non-GAAP measures in its evaluation and administration of FIS‘ efficiency.
As described beneath, our Adjusted EBITDA and Adjusted Web Earnings measures additionally exclude incremental and direct prices ensuing from the COVID-19 pandemic. Administration believes that this adjustment could assist buyers perceive the longer-term fundamentals of our underlying enterprise.
Fixed forex income represents reported working phase income excluding the affect of fluctuations in overseas forex alternate charges within the present interval.
Natural income development is fixed forex income, as outlined above, for the present interval in comparison with an adjusted income base for the prior interval, which is adjusted so as to add pre-acquisition income of acquired companies for a portion of the prior 12 months matching the portion of the present 12 months for which the enterprise was owned, and subtract pre-divestiture income for divested companies for the portion of the prior 12 months matching the portion of the present 12 months for which the enterprise was not owned, for any acquisitions or divestitures by FIS. When referring to natural income development, revenues from our Company and Different phase, which is comprised of income from non-strategic companies, are excluded.
Adjusted EBITDA displays internet earnings earlier than curiosity, different revenue (expense), taxes, fairness methodology funding earnings (loss), and depreciation and amortization, and excludes sure prices and different transactions that administration deems non-operational in nature, the removing of which improves comparability of working outcomes throughout reporting intervals. It additionally excludes incremental and direct prices ensuing from the COVID-19 pandemic. This measure is reported to the chief working choice maker for functions of creating selections about allocating sources to the segments and assessing their efficiency. Because of this, adjusted EBITDA, because it pertains to our segments, is introduced in conformity with Accounting Requirements Codification 280, Phase Reporting, and is excluded from the definition of non-GAAP monetary measures underneath the Securities and Trade Fee’s Regulation G and Merchandise 10(e) of Regulation S-Ok.
Adjusted EBITDA margin displays adjusted EBITDA, as outlined above, divided by income.
Adjusted internet earnings excludes the affect of sure prices and different transactions which administration deems non-operational in nature, the removing of which improves comparability of working outcomes throughout reporting intervals. It additionally excludes the affect of acquisition-related buy accounting amortization and fairness methodology funding earnings (loss), each of that are recurring. It additionally excludes incremental and direct prices ensuing from the COVID-19 pandemic.
Adjusted EPS displays adjusted internet earnings, as outlined above, divided by weighted common diluted shares excellent.
Free money move displays internet money offered by working actions, adjusted for the web change in settlement belongings and obligations and excluding sure transactions which are carefully related to non-operating actions or are in any other case non-operational in nature and never indicative of future working money flows, together with incremental and direct prices ensuing from the COVID-19 pandemic, much less capital expenditures excluding capital expenditures associated to the Firm’s new headquarters. Free money move doesn’t symbolize our residual money move accessible for discretionary expenditures, since we’ve obligatory debt service necessities and different non-discretionary expenditures that aren’t deducted from the measure.
Any non-GAAP measures ought to be thought of in context with the GAAP monetary presentation and shouldn’t be thought of in isolation or as an alternative to GAAP measures. Additional, FIS‘ non-GAAP measures could also be calculated otherwise from equally titled measures of different firms. Reconciliations of those non-GAAP measures to associated GAAP measures, together with footnotes describing the precise changes, are offered within the hooked up schedules and within the Investor Relations part of the FIS web site, www.fisglobal.com .
Ahead-Trying Statements
This earnings launch and at this time’s webcast include “forward-looking statements” throughout the that means of the U.S. federal securities legal guidelines. Statements that aren’t historic information, together with statements about anticipated monetary outcomes, together with any earnings steerage or projections of the Firm, projected income or expense synergies, enterprise and market circumstances, outlook, overseas forex alternate charges, deleveraging plans, anticipated dividends and share repurchases, the Firm’s gross sales pipeline and anticipated profitability and development, in addition to different statements about our expectations, beliefs, intentions, or methods concerning the long run, or different characterizations of future occasions or circumstances, are forward-looking statements. These statements relate to future occasions and our future outcomes and contain a lot of dangers and uncertainties. Ahead-looking statements are primarily based on administration’s beliefs in addition to assumptions made by, and data at the moment accessible to, administration.
Precise outcomes, efficiency or achievement might differ materially from these contained in these forward-looking statements. The dangers and uncertainties to which forward-looking statements are topic embrace the next, with out limitation:
- the outbreak or recurrence of the novel coronavirus and any associated variants (“COVID-19”) and measures to scale back its unfold, together with the affect of governmental or voluntary actions reminiscent of enterprise shutdowns and stay-at-home orders in sure geographies;
- the period, together with any recurrence, of the COVID-19 pandemic and its impacts, together with reductions in shopper and enterprise spending, and instability of the monetary markets in closely impacted areas throughout the globe;
- the financial and different impacts of COVID-19 on our shoppers which have an effect on the gross sales of our options and companies and the implementation of such options;
- the danger of losses within the occasion of defaults by retailers (or different events) to which we lengthen credit score in our card settlement operations or in respect of any chargeback legal responsibility, both of which might adversely affect liquidity and outcomes of operations;
- adjustments usually financial, enterprise and political circumstances, together with these ensuing from COVID-19 or different pandemics, intensified worldwide hostilities, acts of terrorism, adjustments in both or each america and worldwide lending, capital and monetary markets and forex fluctuations;
- the danger that different acquired companies won’t be built-in efficiently or that the mixing shall be extra expensive or extra time-consuming and complicated than anticipated;
- the danger that value financial savings and different synergies anticipated to be realized from different acquisitions is probably not absolutely realized or could take longer to comprehend than anticipated;
- the dangers of doing enterprise internationally;
- the impact of legislative initiatives or proposals, statutory adjustments, governmental or different relevant rules and/or adjustments in trade necessities, together with privateness and cybersecurity legal guidelines and rules;
- the dangers of discount in income from the elimination of current and potential clients as a consequence of consolidation in, or new legal guidelines or rules affecting, the banking, retail and monetary companies industries or as a consequence of monetary failures or different setbacks suffered by companies in these industries;
- adjustments within the development charges of the markets for our options;
- the quantity, declaration and fee of future dividends is on the discretion of our Board of Administrators and depends upon, amongst different issues, our funding alternatives, outcomes of operations, monetary situation, money necessities, future prospects, the period and affect of the COVID-19 pandemic, and different components that could be thought of related by our Board of Administrators, together with authorized and contractual restrictions;
- failures to adapt our options to adjustments in know-how or within the market;
- inner or exterior safety breaches of our methods, together with these regarding unauthorized entry, theft, corruption or lack of private info and pc viruses and different malware affecting our software program or platforms, and the reactions of shoppers, card associations, authorities regulators and others to any such occasions;
- the danger that implementation of software program, together with software program updates, for purchasers or at buyer areas or worker error in monitoring our software program and platforms could end result within the corruption or lack of information or buyer info, interruption of enterprise operations, outages, publicity to legal responsibility claims or lack of clients;
- the response of present and potential clients to communications from us or regulators concerning info safety, danger administration, inner audit or different issues;
- the danger that insurance policies and ensuing actions of the present administration within the U.S. could lead to further rules and government orders, in addition to further regulatory and tax prices;
- aggressive pressures on pricing associated to the reducing variety of group banks within the U.S., the event of latest disruptive applied sciences competing with a number of of our options, rising presence of worldwide rivals within the U.S. market and the entry into the market by international banks and international firms with respect to sure aggressive options, every of which can have the affect of unbundling particular person options from a complete suite of options we offer to lots of our clients;
- the failure to innovate with the intention to sustain with new rising applied sciences, which might affect our options and our means to draw new, or retain current, clients;
- an operational or pure catastrophe at considered one of our main operations facilities;
- failure to adjust to relevant necessities of fee networks or adjustments in these necessities;
- fraud by retailers or unhealthy actors; and
- different dangers detailed within the “Danger Components” and different sections of our Annual Report on Kind 10-Ok for the fiscal 12 months ended December 31, 2020, in our quarterly studies on Kind 10-Q and in our different filings with the Securities and Trade Fee.
Different unknown or unpredictable components additionally might have a fabric hostile impact on our enterprise, monetary situation, outcomes of operations and prospects. Accordingly, readers shouldn’t place undue reliance on these forward-looking statements. These forward-looking statements are inherently topic to uncertainties, dangers and adjustments in circumstances which are tough to foretell. Besides as required by relevant legislation or regulation, we don’t undertake (and expressly disclaim) any obligation and don’t intend to publicly replace or evaluation any of those forward-looking statements, whether or not on account of new info, future occasions or in any other case.
|
Constancy Nationwide Data Providers, Inc. |
|||
|
Earnings Launch Supplemental Monetary Data |
|||
|
November 4, 2021 |
|||
|
Exhibit A |
Condensed Consolidated Statements of Earnings – Unaudited for the three and 9 months ended September 30, 2021 and 2020 |
||
|
Exhibit B |
Condensed Consolidated Steadiness Sheets – Unaudited as of September 30, 2021 and December 31, 2020 |
||
|
Exhibit C |
Condensed Consolidated Statements of Money Flows – Unaudited for the 9 months ended September 30, 2021 and 2020 |
||
|
Exhibit D |
Supplemental Non-GAAP Monetary Data – Unaudited for the three and 9 months ended September 30, 2021 and 2020 |
||
|
Exhibit E |
Supplemental GAAP to Non-GAAP Reconciliations – Unaudited for the three and 9 months ended September 30, 2021 and 2020 |
||
|
Exhibit F |
Supplemental GAAP to Non-GAAP Reconciliations on Steering – Unaudited for the complete 12 months ended December 31, 2021 |
||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED (In hundreds of thousands, besides per share quantities) |
|||||||||||||||
|
Exhibit A |
|||||||||||||||
|
Three months ended September 30, |
9 months ended September 30, |
||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
||||||||||||
|
Income |
$ |
3,507 |
$ |
3,197 |
$ |
10,205 |
$ |
9,236 |
|||||||
|
Price of income |
2,178 |
2,104 |
6,431 |
6,238 |
|||||||||||
|
Gross revenue |
1,329 |
1,093 |
3,774 |
2,998 |
|||||||||||
|
Promoting, common, and administrative bills |
989 |
862 |
2,972 |
2,613 |
|||||||||||
|
Asset impairments |
202 |
— |
202 |
— |
|||||||||||
|
Working revenue |
138 |
231 |
600 |
385 |
|||||||||||
|
Different revenue (expense): |
|||||||||||||||
|
Curiosity expense, internet |
(46 |
) |
(84 |
) |
(169 |
) |
(252 |
) |
|||||||
|
Different revenue (expense), internet |
110 |
(4 |
) |
(58 |
) |
31 |
|||||||||
|
Whole different revenue (expense), internet |
64 |
(88 |
) |
(227 |
) |
(221 |
) |
||||||||
|
Earnings earlier than revenue taxes and fairness methodology funding earnings (loss) |
202 |
143 |
373 |
164 |
|||||||||||
|
Provision (profit) for revenue taxes |
41 |
121 |
246 |
94 |
|||||||||||
|
Fairness methodology funding earnings (loss) |
— |
— |
6 |
(9 |
) |
||||||||||
|
Web earnings |
161 |
22 |
133 |
61 |
|||||||||||
|
Web (earnings) loss attributable to noncontrolling curiosity |
(3 |
) |
(2 |
) |
(7 |
) |
(7 |
) |
|||||||
|
Web earnings attributable to FIS widespread stockholders |
$ |
158 |
$ |
20 |
$ |
126 |
$ |
54 |
|||||||
|
Web earnings per share-basic attributable to FIS widespread stockholders |
$ |
0.26 |
$ |
0.03 |
$ |
0.20 |
$ |
0.09 |
|||||||
|
Weighted common shares outstanding-basic |
613 |
620 |
618 |
618 |
|||||||||||
|
Web earnings per share-diluted attributable to FIS widespread stockholders |
$ |
0.26 |
$ |
0.03 |
$ |
0.20 |
$ |
0.09 |
|||||||
|
Weighted common shares outstanding-diluted |
619 |
627 |
623 |
626 |
|||||||||||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (In hundreds of thousands, besides per share quantities) |
|||||||
|
Exhibit B |
|||||||
|
September 30, |
December 31, |
||||||
|
ASSETS |
|||||||
|
Present belongings: |
|||||||
|
Money and money equivalents |
$ |
1,390 |
$ |
1,959 |
|||
|
Settlement deposits and service provider float |
3,572 |
3,252 |
|||||
|
Commerce receivables, internet |
3,468 |
3,314 |
|||||
|
Settlement receivables |
761 |
662 |
|||||
|
Different receivables |
331 |
317 |
|||||
|
Pay as you go bills and different present belongings |
489 |
394 |
|||||
|
Whole present belongings |
10,011 |
9,898 |
|||||
|
Property and tools, internet |
846 |
887 |
|||||
|
Goodwill |
52,796 |
53,268 |
|||||
|
Intangible belongings, internet |
12,040 |
13,928 |
|||||
|
Software program, internet |
3,141 |
3,370 |
|||||
|
Different noncurrent belongings |
1,921 |
1,574 |
|||||
|
Deferred contract prices, internet |
935 |
917 |
|||||
|
Whole belongings |
$ |
81,690 |
$ |
83,842 |
|||
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY |
|||||||
|
Present liabilities: |
|||||||
|
Accounts payable, accrued and different liabilities |
$ |
2,470 |
$ |
2,482 |
|||
|
Settlement payables |
5,342 |
4,934 |
|||||
|
Deferred income |
868 |
881 |
|||||
|
Quick-term borrowings |
3,484 |
2,750 |
|||||
|
Present portion of long-term debt |
463 |
1,314 |
|||||
|
Whole present liabilities |
12,627 |
12,361 |
|||||
|
Lengthy-term debt, excluding present portion |
15,833 |
15,951 |
|||||
|
Deferred revenue taxes |
4,118 |
4,017 |
|||||
|
Different noncurrent liabilities |
1,767 |
1,967 |
|||||
|
Deferred income |
52 |
59 |
|||||
|
Whole liabilities |
34,397 |
34,355 |
|||||
|
Redeemable noncontrolling curiosity |
176 |
174 |
|||||
|
Fairness: |
|||||||
|
FIS stockholders’ fairness: |
|||||||
|
Most well-liked inventory $0.01 par worth |
— |
— |
|||||
|
Widespread inventory $0.01 par worth |
6 |
6 |
|||||
|
Further paid in capital |
46,366 |
45,947 |
|||||
|
Retained earnings |
2,840 |
3,440 |
|||||
|
Gathered different complete earnings (loss) |
156 |
57 |
|||||
|
Treasury inventory, at value |
(2,263 |
) |
(150 |
) |
|||
|
Whole FIS stockholders’ fairness |
47,105 |
49,300 |
|||||
|
Noncontrolling curiosity |
12 |
13 |
|||||
|
Whole fairness |
47,117 |
49,313 |
|||||
|
Whole liabilities, redeemable noncontrolling curiosity and fairness |
$ |
81,690 |
$ |
83,842 |
|||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED (In hundreds of thousands) |
|||||||
|
Exhibit C |
|||||||
|
9 months ended September 30, |
|||||||
|
2021 |
2020 |
||||||
|
Money flows from working actions: |
|||||||
|
Web earnings |
$ |
133 |
$ |
61 |
|||
|
Adjustment to reconcile internet earnings (loss) to internet money offered by working actions: |
|||||||
|
Depreciation and amortization |
2,981 |
2,760 |
|||||
|
Amortization of debt situation prices |
22 |
24 |
|||||
|
Asset impairments |
202 |
— |
|||||
|
Loss (acquire) on sale of companies, investments and different |
(233 |
) |
3 |
||||
|
Loss on extinguishment of debt |
528 |
— |
|||||
|
Inventory-based compensation |
320 |
182 |
|||||
|
Deferred revenue taxes |
(35 |
) |
(24 |
) |
|||
|
Web adjustments in belongings and liabilities, internet of results from acquisitions and overseas forex: |
|||||||
|
Commerce and different receivables |
(229 |
) |
78 |
||||
|
Settlement exercise |
575 |
594 |
|||||
|
Pay as you go bills and different belongings |
(350 |
) |
(169 |
) |
|||
|
Deferred contract prices |
(323 |
) |
(354 |
) |
|||
|
Deferred income |
(12 |
) |
(50 |
) |
|||
|
Accounts payable, accrued liabilities and different liabilities |
118 |
(81 |
) |
||||
|
Web money offered by working actions |
3,697 |
3,024 |
|||||
|
Money flows from investing actions: |
|||||||
|
Additions to property and tools |
(193 |
) |
(186 |
) |
|||
|
Additions to software program |
(684 |
) |
(652 |
) |
|||
|
Acquisitions, internet of money acquired |
— |
(469 |
) |
||||
|
Web proceeds from sale of companies and investments |
370 |
— |
|||||
|
Different investing actions, internet |
(90 |
) |
92 |
||||
|
Web money offered by (utilized in) investing actions |
(597 |
) |
(1,215 |
) |
|||
|
Money flows from financing actions: |
|||||||
|
Borrowings |
40,569 |
37,125 |
|||||
|
Reimbursement of borrowings and different financing obligations |
(40,644 |
) |
(37,646 |
) |
|||
|
Debt issuance prices |
(74 |
) |
— |
||||
|
Web proceeds from inventory issued underneath stock-based compensation plans |
87 |
302 |
|||||
|
Treasury inventory exercise |
(2,113 |
) |
(102 |
) |
|||
|
Dividends paid |
(724 |
) |
(650 |
) |
|||
|
Different financing actions, internet |
(138 |
) |
(222 |
) |
|||
|
Web money offered by (utilized in) financing actions |
(3,037 |
) |
(1,193 |
) |
|||
|
Impact of overseas forex alternate fee adjustments on money |
(57 |
) |
8 |
||||
|
Web improve (lower) in money and money equivalents |
6 |
624 |
|||||
|
Money and money equivalents, starting of interval |
4,030 |
3,211 |
|||||
|
Money and money equivalents, finish of interval |
$ |
4,036 |
$ |
3,835 |
|||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL NON-GAAP ORGANIC REVENUE GROWTH — UNAUDITED (In hundreds of thousands) |
|||||||||||||||||
|
Exhibit D |
|||||||||||||||||
|
Three months ended September 30, |
|||||||||||||||||
|
2021 |
2020 |
||||||||||||||||
|
Fixed |
|||||||||||||||||
|
Foreign money |
Natural |
||||||||||||||||
|
Income |
FX |
Income |
Income |
Progress (1) |
|||||||||||||
|
Service provider Options |
$ |
1,161 |
$ |
(17 |
) |
$ |
1,144 |
$ |
1,017 |
13 |
% |
||||||
|
Banking Options |
1,610 |
(4 |
) |
1,606 |
1,488 |
8 |
% |
||||||||||
|
Capital Market Options |
654 |
(6 |
) |
647 |
587 |
10 |
% |
||||||||||
|
Company and Different |
82 |
— |
82 |
105 |
|||||||||||||
|
Whole |
$ |
3,507 |
$ |
(27 |
) |
$ |
3,479 |
$ |
3,197 |
10 |
% |
||||||
|
9 months ended September 30, |
|||||||||||||||||
|
2021 |
2020 |
||||||||||||||||
|
Fixed |
|||||||||||||||||
|
Foreign money |
Natural |
||||||||||||||||
|
Income |
FX |
Income |
Income |
Progress (1) |
|||||||||||||
|
Service provider Options |
$ |
3,303 |
$ |
(70 |
) |
$ |
3,233 |
$ |
2,764 |
17 |
% |
||||||
|
Banking Options |
4,729 |
(21 |
) |
4,708 |
4,394 |
7 |
% |
||||||||||
|
Capital Market Options |
1,908 |
(28 |
) |
1,880 |
1,777 |
6 |
% |
||||||||||
|
Company and Different |
265 |
(3 |
) |
262 |
301 |
||||||||||||
|
Whole |
$ |
10,205 |
$ |
(122 |
) |
$ |
10,083 |
$ |
9,236 |
10 |
% |
||||||
| Quantities in tables could not sum or calculate as a consequence of rounding. | ||
|
(1) |
Natural development excludes the affect of overseas forex alternate charges within the present interval, acquisition or divestiture affect from the prior intervals (which was not significant within the intervals introduced), and Company and Different income from the present and prior intervals. |
|
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED (In hundreds of thousands) |
|||||||
|
Exhibit D (continued) |
|||||||
|
Three months ended |
9 months ended |
||||||
|
September 30, 2021 |
September 30, 2021 |
||||||
|
Web money offered by working actions |
$ |
1,833 |
$ |
3,697 |
|||
|
Non-GAAP changes: |
|||||||
|
Acquisition, integration and different funds (1) |
117 |
383 |
|||||
|
Settlement exercise |
(565 |
) |
(575 |
) |
|||
|
Adjusted money flows from operations |
1,385 |
3,505 |
|||||
|
Capital expenditures (2) |
(238 |
) |
(797 |
) |
|||
|
Free money move |
$ |
1,147 |
$ |
2,708 |
|||
|
Three months ended |
9 months ended |
||||||
|
September 30, 2020 |
September 30, 2020 |
||||||
|
Web money offered by working actions |
$ |
1,411 |
$ |
3,024 |
|||
|
Non-GAAP changes: |
|||||||
|
Acquisition, integration and different funds (1) |
140 |
438 |
|||||
|
Settlement exercise |
(422 |
) |
(594 |
) |
|||
|
Adjusted money flows from operations |
1,129 |
2,868 |
|||||
|
Capital expenditures (2) |
(263 |
) |
(808 |
) |
|||
|
Free money move |
$ |
866 |
$ |
2,060 |
|||
Free money move displays adjusted money flows from operations much less capital expenditures (additions to property and tools and additions to software program, excluding capital spend associated to the development of our new headquarters). Free money move doesn’t symbolize our residual money flows accessible for discretionary expenditures, since we’ve obligatory debt service necessities and different non-discretionary expenditures that aren’t deducted from the measure.
|
(1) |
Adjusted money flows from operations and free money move for the three and 9 months ended September 30, 2021 and 2020 exclude money funds for sure acquisition, integration and different prices (see Notice 2 to Exhibit E), internet of associated tax affect. The associated tax affect totaled $20 million and $23 million for the three months and $65 million and $70 million for the 9 months ended September 30, 2021 and 2020, respectively. |
|
|
(2) |
Capital expenditures free of charge money move exclude capital spend associated to the development of our new headquarters totaling $27 million and $9 million for the three months and $80 million and $30 million for the 9 months ended September 30, 2021 and 2020, respectively. |
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED (In hundreds of thousands, besides per share quantities) |
||||||||||||||||
|
Exhibit E |
||||||||||||||||
|
Three months ended September 30, |
9 months ended September 30, |
|||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
|||||||||||||
|
Web earnings attributable to FIS widespread stockholders |
$ |
158 |
$ |
20 |
$ |
126 |
$ |
54 |
||||||||
|
Provision (profit) for revenue taxes |
41 |
121 |
246 |
94 |
||||||||||||
|
Curiosity expense, internet |
46 |
84 |
169 |
252 |
||||||||||||
|
Different, internet |
(107 |
) |
6 |
59 |
(15 |
) |
||||||||||
|
Working revenue, as reported |
138 |
231 |
600 |
385 |
||||||||||||
|
Depreciation and amortization, excluding buy accounting amortization |
344 |
238 |
918 |
705 |
||||||||||||
|
Non-GAAP changes: |
||||||||||||||||
|
Buy accounting amortization (1) |
714 |
693 |
2,063 |
2,055 |
||||||||||||
|
Acquisition, integration and different prices (2) |
187 |
195 |
629 |
616 |
||||||||||||
|
Asset impairments (3) |
202 |
— |
202 |
— |
||||||||||||
|
Adjusted EBITDA |
$ |
1,585 |
$ |
1,357 |
$ |
4,412 |
$ |
3,761 |
||||||||
|
See Notes to Exhibit E. |
||||||||||||||||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED (In hundreds of thousands, besides per share quantities) |
||||||||||||||||
|
Exhibit E (continued) |
||||||||||||||||
|
Three months ended September 30, |
9 months ended September 30, |
|||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
|||||||||||||
|
Earnings earlier than revenue taxes and fairness methodology funding earnings (loss) |
$ |
202 |
$ |
143 |
$ |
373 |
$ |
164 |
||||||||
|
(Provision) profit for revenue taxes |
(41 |
) |
(121 |
) |
(246 |
) |
(94 |
) |
||||||||
|
Fairness methodology funding earnings (loss) |
— |
— |
6 |
(9 |
) |
|||||||||||
|
Web (earnings) loss attributable to noncontrolling curiosity |
(3 |
) |
(2 |
) |
(7 |
) |
(7 |
) |
||||||||
|
Web earnings attributable to FIS widespread stockholders |
158 |
20 |
126 |
54 |
||||||||||||
|
Non-GAAP changes: |
||||||||||||||||
|
Buy accounting amortization (1) |
714 |
693 |
2,063 |
2,055 |
||||||||||||
|
Acquisition, integration and different prices (2) |
247 |
195 |
689 |
622 |
||||||||||||
|
Asset impairments (3) |
202 |
— |
202 |
— |
||||||||||||
|
Non-operating (revenue) expense (4) |
(110 |
) |
4 |
58 |
(31 |
) |
||||||||||
|
Fairness methodology funding (earnings) loss (5) |
— |
— |
(6 |
) |
9 |
|||||||||||
|
Tax fee change (6) |
— |
103 |
178 |
103 |
||||||||||||
|
(Provision) profit for revenue taxes on non-GAAP changes |
(141 |
) |
(128 |
) |
(423 |
) |
(405 |
) |
||||||||
|
Whole non-GAAP changes |
912 |
867 |
2,761 |
2,353 |
||||||||||||
|
Adjusted internet earnings |
$ |
1,070 |
$ |
887 |
$ |
2,887 |
$ |
2,407 |
||||||||
|
Web earnings per share-diluted attributable to FIS widespread stockholders |
$ |
0.26 |
$ |
0.03 |
$ |
0.20 |
$ |
0.09 |
||||||||
|
Non-GAAP changes: |
||||||||||||||||
|
Buy accounting amortization (1) |
1.15 |
1.11 |
3.31 |
3.28 |
||||||||||||
|
Acquisition, integration and different prices (2) |
0.40 |
0.31 |
1.11 |
0.99 |
||||||||||||
|
Asset impairments (3) |
0.33 |
— |
0.32 |
— |
||||||||||||
|
Non-operating (revenue) expense (4) |
(0.18 |
) |
0.01 |
0.09 |
(0.05 |
) |
||||||||||
|
Fairness methodology funding (earnings) loss (5) |
— |
— |
(0.01 |
) |
0.01 |
|||||||||||
|
Tax fee change (6) |
— |
0.16 |
0.29 |
0.16 |
||||||||||||
|
(Provision) profit for revenue taxes on non-GAAP changes |
(0.23 |
) |
(0.20 |
) |
(0.68 |
) |
(0.65 |
) |
||||||||
|
Adjusted internet earnings per share-diluted attributable to FIS widespread stockholders |
$ |
1.73 |
$ |
1.42 |
$ |
4.63 |
$ |
3.85 |
||||||||
|
Weighted common shares outstanding-diluted |
619 |
627 |
623 |
626 |
||||||||||||
|
Quantities in desk could not sum or calculate as a consequence of rounding. |
||||||||||||||||
|
See Notes to Exhibit E. |
||||||||||||||||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS — UNAUDITED (In hundreds of thousands, besides per share quantities) |
|||
|
Exhibit E (continued) |
|||
| Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations for the three and 9 months ended September 30, 2021 and 2020. | |||
| The changes are as follows: | |||
|
(1) |
This merchandise represents buy worth amortization expense on all intangible belongings acquired by means of varied Firm acquisitions, together with buyer relationships, contract worth, emblems and tradenames, and know-how belongings. For the three and 9 months ended September 30, 2021, this merchandise additionally contains $42 million of incremental amortization expense related to shortened estimated helpful lives and accelerated amortization strategies for sure acquired software program pushed by the Firm’s Platform initiatives that primarily embrace enabling shoppers to simply eat the breadth of our capabilities utilizing microservices in addition to course of automation and consolidation of know-how platforms to hurry new resolution and repair innovation over roughly the subsequent three years. The Firm has excluded the affect of buy worth amortization expense as such quantities may be considerably impacted by the timing and/or dimension of acquisitions. Though the Firm excludes these quantities from its non-GAAP bills, the Firm believes that it is crucial for buyers to grasp that such intangible belongings contribute to income era. Amortization of belongings that relate to previous acquisitions will recur in future intervals till such belongings have been absolutely amortized. Any future acquisitions could end result within the amortization of further intangible belongings. |
||
|
(2) |
This merchandise represents acquisition and integration prices primarily associated to the acquisition of Worldpay in addition to sure different prices, together with prices related to the Firm’s Platform initiatives, described in Notice (1), totaling $64 million for the three and 9 months ended September 30, 2021. This merchandise additionally contains prices associated to information middle consolidation actions totaling $4 million and $20 million for the three months and $32 million and $60 million for the 9 months ended September 30, 2021 and 2020, respectively. The Firm additionally recorded incremental fees instantly associated to COVID-19 of $14 million and $41 million for the three months and $33 million and $56 million for the 9 months ended September 30, 2021 and 2020, respectively. For the 9 months ended September 30, 2021, this merchandise additionally contains $104 million in accelerated inventory compensation expense to mirror the affect of creating a Certified Retirement Fairness Program that changed unvested fairness awards excellent at January 1, 2021. For the three and 9 months ended September 30, 2021, for functions of calculating Adjusted internet earnings, this merchandise additionally contains $60 million of incremental amortization expense related to shortened estimated helpful lives and accelerated amortization strategies for sure software program and deferred contract value belongings pushed by the Firm’s Platform initiatives, described in Notice (1), which had been instituted within the third quarter. |
||
|
(3) |
For the three and 9 months ended September 30, 2021, this merchandise represents impairment of sure software program and deferred contract value belongings pushed by the Firm’s Platform initiatives described in Notice (1). |
||
|
(4) |
Non-operating (revenue) expense primarily consists of different revenue and expense objects outdoors of the Firm’s working actions, together with honest worth changes on sure non-operating belongings and liabilities and overseas forex transaction remeasurement good points and losses. For the three and 9 months ended September 30, 2021, this merchandise contains internet good points on fairness safety investments with out readily determinable honest values of $126 million and $214 million, respectively. For the 9 months ended September 30, 2021, this merchandise additionally contains $225 million associated to the acquire on the sale of our fairness possession curiosity in Cardinal Holdings, LP and a loss on extinguishment of debt of roughly $528 million regarding tender premiums, make-whole quantities, and charges; the write-off of unamortized bond reductions and debt issuance prices; and losses on associated by-product devices. |
||
|
(5) |
This merchandise represents our fairness methodology funding earnings or loss and was predominantly as a consequence of our fairness possession curiosity in Cardinal Holdings, LP, which was bought on April 29, 2021. |
||
|
(6) |
For the 9 months ended September 30, 2021, this merchandise represents the one-time internet remeasurement of sure deferred tax liabilities as a result of improve within the U.Ok. company statutory tax fee from 19% to 25% efficient April 1, 2023, enacted on June 10, 2021. For the 2020 intervals, this merchandise represents the one-time internet remeasurement of sure deferred tax liabilities as a result of improve within the U.Ok. company statutory tax fee from 17% to 19% enacted on July 22, 2020. |
||
|
FIDELITY NATIONAL INFORMATION SERVICES, INC. SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS ON GUIDANCE — UNAUDITED (In hundreds of thousands, besides per share quantities) |
|||||||
|
Exhibit F |
|||||||
|
Yr ended |
|||||||
|
December 31, 2021 |
|||||||
|
Low |
Excessive |
||||||
|
Web earnings per share-diluted attributable to FIS widespread stockholders |
$ |
0.70 |
$ |
0.80 |
|||
|
Estimated changes (1) |
5.80 |
5.80 |
|||||
|
Adjusted internet earnings per share-diluted attributable to FIS widespread stockholders |
$ |
6.50 |
$ |
6.60 |
|||
|
(1) |
Estimated changes embrace buy accounting amortization, acquisition, integration and different prices, asset impairments, fairness methodology funding earnings (loss) and different objects, internet of tax affect. |
View supply model on businesswire.com: https://www.businesswire.com/information/house/20211104005225/en/
Ellyn Raftery, 904.438.6083
Chief Advertising and marketing Officer
FIS World Advertising and marketing and Company Communications
Ellyn.Raftery@fisglobal.com
Nathan Rozof, CFA, 904.438.6918
Govt Vice President
FIS Company Finance and Investor Relations
Nathan.Rozof@fisglobal.com
