Exhibit 99.1
Fidelity National Information Services, Inc.
Supplemental Financial Schedules
September 5, 2008
On July 2, 2008, FIS completed the spin-off of Lender Processing Services, Inc. (“LPS”). Since the completion of the spin-off occurred subsequent to the reporting period ended June 30, 2008, generally accepted accounting principles do not allow presentation of LPS as a discontinued operation in our periodic filings until FIS presents operating results for the three and nine-month periods ended September 30, 2008.
Because of these requirements and desire to furnish additional information to investors to improve the understanding of the Company’s operating performance, management is separately furnishing information which excludes the operations of LPS and other smaller operations which the company has exited. The purpose of the attached schedules is to recast the 2007 results from continuing operations by quarter and on an annual basis along with the first and second quarter of 2008 in a manner consistent with how FIS will report results from continuing operations beginning in the third quarter of 2008. These schedules exclude the operating results of LPS, and other smaller operations, which we have exited. As previously announced we anticipate exiting our Australian check operations through a sale of this business to a third party. These schedules do not reflect the results of our Australian check operations as discontinued operations.
Exhibit Listing
| | |
Exhibit A. | | FIS Supplemental GAAP to Non-GAAP Reconciliation — Unaudited for the Full Year 2007 and the Quarters Ended March 31, June 30, September 30 and December 31, 2007 and March 31, and June 30, 2008 |
1
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Twelve Months | | | Restructuring | | | Corporate | | | | | | | Gain | | | | | | | | | | | | | | | | | | | Twelve Months | |
| | Ended | | | and | | | Costs | | | LPS | | | On Sale | | | Interest | | | Debt | | | | | | | Purchase | | | Ended | |
| | December 31, 2007 | | | Integration | | | Non-Disc | | | Spin | | | Covansys | | | Expense | | | Restructure | | | | | | | Price | | | December 31, 2007 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Costs(3) | | | Stock(4) | | | Allocation(5) | | | Charge(6) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 2,950,109 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,950,109 | | | $ | — | | | $ | 2,950,109 | |
Cost of revenues | | | 2,277,161 | | | | (22,289 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,254,872 | | | | (124,243 | ) | | | 2,130,629 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 672,948 | | | | 22,289 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 695,237 | | | | 124,243 | | | | 819,480 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 302,888 | | | | (5,975 | ) | | | (22,056 | ) | | | (500 | ) | | | — | | | | — | | | | — | | | | 274,357 | | | | — | | | | 274,357 | |
Research and development costs | | | 70,378 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 70,378 | | | | — | | | | 70,378 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 299,682 | | | | 28,264 | | | | 22,056 | | | | 500 | | | | — | | | | — | | | | — | | | | 350,502 | | | | 124,243 | | | | 474,745 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 3,035 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,035 | | | | — | | | | 3,035 | |
Interest expense | | | (193,233 | ) | | | — | | | | — | | | | — | | | | — | | | | 55,800 | | | | 27,164 | | | | (110,269 | ) | | | — | | | | (110,269 | ) |
Gain on sale of Covansys stock | | | 274,488 | | | | — | | | | — | | | | — | | | | (274,488 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Other income, net | | | 15,734 | | | | (14,846 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 888 | | | | — | | | | 888 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | 100,024 | | | | (14,846 | ) | | | — | | | | — | | | | (274,488 | ) | | | 55,800 | | | | 27,164 | | | | (106,346 | ) | | | — | | | | (106,346 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 399,706 | | | | 13,418 | | | | 22,056 | | | | 500 | | | | (274,488 | ) | | | 55,800 | | | | 27,164 | | | | 244,156 | | | | 124,243 | | | | 368,399 | |
Provision (benefit) for income taxes | | | 140,884 | | | | 4,972 | | | | 8,337 | | | | 185 | | | | (101,561 | ) | | | 21,584 | | | | 10,105 | | | | 84,506 | | | | 44,635 | | | | 129,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 258,822 | | | | 8,446 | | | | 13,719 | | | | 315 | | | | (172,927 | ) | | | 34,216 | | | | 17,059 | | | | 159,650 | | | | 79,608 | | | | 239,258 | |
Equity in earnings (losses) of unconsolidated entities | | | 2,825 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,825 | | | | — | | | | 2,825 | |
Minority interest income (expense) | | | 50 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 50 | | | | — | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 261,697 | | | $ | 8,446 | | | $ | 13,719 | | | $ | 315 | | | $ | (172,927 | ) | | $ | 34,216 | | | $ | 17,059 | | | $ | 162,525 | | | $ | 79,608 | | | $ | 242,133 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 1.33 | | | $ | 0.04 | | | $ | 0.07 | | | $ | 0.00 | | | $ | (0.88 | ) | | $ | 0.17 | | | $ | 0.09 | | | $ | 0.83 | | | $ | 0.41 | | | $ | 1.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | | | | 196,546 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 373,705 | | | $ | (124,243 | ) | | $ | 249,462 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
2
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | | | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | Interest | | | Debt | | | | | | | Purchase | | | Ended | |
| | March 31, 2007 | | | Integration | | | Non-Disc | | | Expense | | | Restructure | | | | | | | Price | | | March 31, 2007 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Allocation(5) | | | Charge(6) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 671,252 | | | | — | | | | — | | | | — | | | | — | | | $ | 671,252 | | | | — | | | $ | 671,252 | |
Cost of revenues | | | 521,196 | | | | (4,961 | ) | | | — | | | | — | | | | — | | | | 516,235 | | | | (29,253 | ) | | | 486,982 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 150,056 | | | | 4,961 | | | | — | | | | — | | | | — | | | | 155,017 | | | | 29,253 | | | | 184,270 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 69,557 | | | | — | | | | (6,219 | ) | | | — | | | | — | | | | 63,338 | | | | — | | | | 63,338 | |
Research and development costs | | | 17,518 | | | | — | | | | — | | | | — | | | | — | | | | 17,518 | | | | — | | | | 17,518 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 62,981 | | | | 4,961 | | | | 6,219 | | | | — | | | | — | | | | 74,161 | | | | 29,253 | | | | 103,414 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 209 | | | | — | | | | — | | | | — | | | | — | | | | 209 | | | | — | | | | 209 | |
Interest expense | | | (72,073 | ) | | | — | | | | — | | | | 19,729 | | | | 27,164 | | | | (25,180 | ) | | | — | | | | (25,180 | ) |
Gain on sale of Covansys stock | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Other income, net | | | 92 | | | | — | | | | — | | | | — | | | | — | | | | 92 | | | | — | | | | 92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (71,772 | ) | | | — | | | | — | | | | 19,729 | | | | 27,164 | | | | (24,879 | ) | | | — | | | | (24,879 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | (8,791 | ) | | | 4,961 | | | | 6,219 | | | | 19,729 | | | | 27,164 | | | | 49,282 | | | | 29,253 | | | | 78,535 | |
Provision (benefit) for income taxes | | | (4,720 | ) | | | 1,845 | | | | 2,351 | | | | 7,632 | | | | 10,105 | | | | 17,213 | | | | 10,368 | | | | 27,581 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | (4,071 | ) | | | 3,116 | | | | 3,868 | | | | 12,097 | | | | 17,059 | | | | 32,069 | | | | 18,885 | | | | 50,954 | |
Equity in earnings (losses) of unconsolidated entities | | | 1,408 | | | | — | | | | — | | | | — | | | | — | | | | 1,408 | | | | — | | | | 1,408 | |
Minority interest income (expense) | | | 339 | | | | — | | | | — | | | | — | | | | — | | | | 339 | | | | — | | | | 339 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | (2,324 | ) | | $ | 3,116 | | | $ | 3,868 | | | $ | 12,097 | | | $ | 17,059 | | | $ | 33,816 | | | $ | 18,885 | | | $ | 52,701 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | (0.01 | ) | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.06 | | | $ | 0.09 | | | $ | 0.17 | | | $ | 0.10 | | | $ | 0.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 195,807 | | | | 195,807 | | | | 195,807 | | | | 195,807 | | | | 195,807 | | | | 195,807 | | | | 195,807 | | | | 195,807 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | | | | | $ | 82,203 | | | $ | (29,253 | ) | | $ | 52,950 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
3
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | Gain | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | On Sale | | | Interest | | | | | | | Purchase | | | Ended | |
| | June 30, 2007 | | | Integration | | | Non-Disc | | | Covansys | | | Expense | | | | | | | Price | | | June 30, 2007 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Stock(4) | | | Allocation(5) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 701,630 | | | | — | | | | — | | | | — | | | | — | | | $ | 701,630 | | | | — | | | $ | 701,630 | |
Cost of revenues | | | 540,269 | | | | (2,195 | ) | | | — | | | | — | | | | — | | | | 538,074 | | | | (27,041 | ) | | | 511,033 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 161,361 | | | | 2,195 | | | | — | | | | — | | | | — | | | | 163,556 | | | | 27,041 | | | | 190,597 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 74,668 | | | | — | | | | (6,697 | ) | | | — | | | | — | | | | 67,971 | | | | — | | | | 67,971 | |
Research and development costs | | | 14,905 | | | | — | | | | — | | | | — | | | | — | | | | 14,905 | | | | — | | | | 14,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 71,788 | | | | 2,195 | | | | 6,697 | | | | — | | | | — | | | | 80,680 | | | | 27,041 | | | | 107,721 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 165 | | | | — | | | | — | | | | — | | | | — | | | | 165 | | | | — | | | | 165 | |
Interest expense | | | (42,934 | ) | | | — | | | | — | | | | — | | | | 19,949 | | | | (22,985 | ) | | | — | | | | (22,985 | ) |
Gain on sale of Covansys stock | | | 92,044 | | | | — | | | | — | | | | (92,044 | ) | | | — | | | | — | | | | — | | | | — | |
Other income, net | | | 1,336 | | | | — | | | | — | | | | — | | | | — | | | | 1,336 | | | | — | | | | 1,336 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | 50,611 | | | | — | | | | — | | | | (92,044 | ) | | | 19,949 | | | | (21,484 | ) | | | — | | | | (21,484 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 122,399 | | | | 2,195 | | | | 6,697 | | | | (92,044 | ) | | | 19,949 | | | | 59,196 | | | | 27,041 | | | | 86,237 | |
Provision (benefit) for income taxes | | | 43,284 | | | | 810 | | | | 2,532 | | | | (34,056 | ) | | | 7,716 | | | | 20,286 | | | | 9,463 | | | | 29,749 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 79,115 | | | | 1,385 | | | | 4,165 | | | | (57,988 | ) | | | 12,233 | | | | 38,910 | | | | 17,578 | | | | 56,488 | |
Equity in earnings (losses) of unconsolidated entities | | | 1,330 | | | | — | | | | — | | | | — | | | | — | | | | 1,330 | | | | — | | | | 1,330 | |
Minority interest income (expense) | | | (11 | ) | | | — | | | | — | | | | — | | | | — | | | | (11 | ) | | | — | | | | (11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 80,434 | | | $ | 1,385 | | | $ | 4,165 | | | $ | (57,988 | ) | | $ | 12,233 | | | $ | 40,229 | | | $ | 17,578 | | | $ | 57,807 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 0.41 | | | $ | 0.01 | | | $ | 0.02 | | | $ | (0.29 | ) | | $ | 0.06 | | | $ | 0.20 | | | $ | 0.09 | | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 196,977 | | | | 196,977 | | | | 196,977 | | | | 196,977 | | | | 196,977 | | | | 196,977 | | | | 196,977 | | | | 196,977 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | | | | | $ | 85,642 | | | $ | (27,041 | ) | | $ | 58,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding |
See accompanying notes.
4
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | Gain | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | On Sale | | | Interest | | | | | | | Purchase | | | Ended | |
| | September 30, 2007 | | | Integration | | | Non-Disc | | | Covansys | | | Expense | | | | | | | Price | | | September 30, 2007 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Stock(4) | | | Allocation(5) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 712,812 | | | | — | | | | — | | | | — | | | | — | | | $ | 712,812 | | | | — | | | $ | 712,812 | |
Cost of revenues | | | 562,998 | | | | (15,133 | ) | | | — | | | | — | | | | — | | | | 547,865 | | | | (29,574 | ) | | | 518,291 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 149,814 | | | | 15,133 | | | | — | | | | — | | | | — | | | | 164,947 | | | | 29,574 | | | | 194,521 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 72,387 | | | | (4,322 | ) | | | (5,697 | ) | | | — | | | | — | | | | 62,368 | | | | — | | | | 62,368 | |
Research and development costs | | | 17,579 | | | | — | | | | — | | | | — | | | | — | | | | 17,579 | | | | — | | | | 17,579 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 59,848 | | | | 19,455 | | | | 5,697 | | | | — | | | | — | | | | 85,000 | | | | 29,574 | | | | 114,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 719 | | | | — | | | | — | | | | — | | | | — | | | | 719 | | | | — | | | | 719 | |
Interest expense | | | (37,856 | ) | | | — | | | | — | | | | — | | | | 16,122 | | | | (21,734 | ) | | | — | | | | (21,734 | ) |
Gain on sale of Covansys stock | | | 182,444 | | | | — | | | | — | | | | (182,444 | ) | | | — | | | | — | | | | — | | | | — | |
Other income, net | | | 3,327 | | | | (2,781 | ) | | | — | | | | — | | | | — | | | | 546 | | | | — | | | | 546 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | 148,634 | | | | (2,781 | ) | | | — | | | | (182,444 | ) | | | 16,122 | | | | (20,469 | ) | | | — | | | | (20,469 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 208,482 | | | | 16,674 | | | | 5,697 | | | | (182,444 | ) | | | 16,122 | | | | 64,531 | | | | 29,574 | | | | 94,105 | |
Provision (benefit) for income taxes | | | 75,238 | | | | 6,169 | | | | 2,153 | | | | (67,505 | ) | | | 6,236 | | | | 22,291 | | | | 10,536 | | | | 32,827 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 133,244 | | | | 10,505 | | | | 3,544 | | | | (114,939 | ) | | | 9,886 | | | | 42,240 | | | | 19,038 | | | | 61,278 | |
Equity in earnings (losses) of unconsolidated entities | | | 86 | | | | — | | | | — | | | | — | | | | — | | | | 86 | | | | — | | | | 86 | |
Minority interest income (expense) | | | 41 | | | | — | | | | — | | | | — | | | | — | | | | 41 | | | | — | | | | 41 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 133,371 | | | $ | 10,505 | | | $ | 3,544 | | | $ | (114,939 | ) | | $ | 9,886 | | | $ | 42,367 | | | $ | 19,038 | | | $ | 61,405 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 0.68 | | | $ | 0.05 | | | $ | 0.02 | | | $ | (0.58 | ) | | $ | 0.05 | | | $ | 0.22 | | | $ | 0.10 | | | $ | 0.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 196,649 | | | | 196,649 | | | | 196,649 | | | | 196,649 | | | | 196,649 | | | | 196,649 | | | | 196,649 | | | | 196,649 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | | | | | $ | 93,973 | | | $ | (29,574 | ) | | $ | 64,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
5
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | LPS | | | | | | | Purchase | | | Ended | |
| | December 31, 2007 | | | Integration | | | Non-Disc | | | Spin | | | | | | | Price | | | December 31, 2007 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Costs(3) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 864,415 | | | | — | | | | — | | | | — | | | $ | 864,415 | | | | — | | | $ | 864,415 | |
Cost of revenues | | | 652,698 | | | | — | | | | — | | | | — | | | | 652,698 | | | | (38,375 | ) | | | 614,323 | |
| | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 211,717 | | | | — | | | | — | | | | — | | | | 211,717 | | | | 38,375 | | | | 250,092 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 86,276 | | | | (1,653 | ) | | | (3,443 | ) | | | (500 | ) | | | 80,680 | | | | — | | | | 80,680 | |
Research and development costs | | | 20,376 | | | | — | | | | — | | | | — | | | | 20,376 | | | | — | | | | 20,376 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 105,065 | | | | 1,653 | | | | 3,443 | | | | 500 | | | | 110,661 | | | | 38,375 | | | | 149,036 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 1,942 | | | | — | | | | — | | | | — | | | | 1,942 | | | | — | | | | 1,942 | |
Interest expense | | | (40,370 | ) | | | — | | | | — | | | | — | | | | (40,370 | ) | | | — | | | | (40,370 | ) |
Gain on sale of Covansys stock | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Other income, net | | | 10,979 | | | | (12,065 | ) | | | — | | | | — | | | | (1,086 | ) | | | — | | | | (1,086 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (27,449 | ) | | | (12,065 | ) | | | — | | | | — | | | | (39,514 | ) | | | — | | | | (39,514 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 77,616 | | | | (10,412 | ) | | | 3,443 | | | | 500 | | | | 71,147 | | | | 38,375 | | | | 109,522 | |
Provision (benefit) for income taxes | | | 27,082 | | | | (3,852 | ) | | | 1,301 | | | | 185 | | | | 24,716 | | | | 14,268 | | | | 38,984 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 50,534 | | | | (6,560 | ) | | | 2,142 | | | | 315 | | | | 46,431 | | | | 24,107 | | | | 70,538 | |
Equity in earnings (losses) of unconsolidated entities | | | 1 | | | | — | | | | — | | | | — | | | | 1 | | | | — | | | | 1 | |
Minority interest income (expense) | | | (319 | ) | | | — | | | | — | | | | — | | | | (319 | ) | | | — | | | | (319 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 50,216 | | | $ | (6,560 | ) | | $ | 2,142 | | | $ | 315 | | | $ | 46,113 | | | $ | 24,107 | | | $ | 70,220 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 0.26 | | | $ | (0.03 | ) | | $ | 0.01 | | | $ | 0.00 | | | $ | 0.23 | | | $ | 0.12 | | | $ | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 196,741 | | | | 196,741 | | | | 196,741 | | | | 196,741 | | | | 196,741 | | | | 196,741 | | | | 196,741 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | $ | 111,887 | | | $ | (38,375 | ) | | $ | 73,512 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
6
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | LPS | | | | | | | Purchase | | | Ended | |
| | March 31, 2008 | | | Integration | | | Non-Disc | | | Spin | | | | | | | Price | | | March 31, 2008 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Costs(3) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 838,223 | | | | — | | | | — | | | | — | | | $ | 838,223 | | | | — | | | $ | 838,223 | |
Cost of revenues | | | 648,268 | | | | — | | | | — | | | | — | | | | 648,268 | | | | (36,500 | ) | | | 611,768 | |
| | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 189,955 | | | | — | | | | — | | | | — | | | | 189,955 | | | | 36,500 | | | | 226,455 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 116,192 | | | | (14,970 | ) | | | (9,025 | ) | | | (2,858 | ) | | | 89,339 | | | | — | | | | 89,339 | |
Research and development costs | | | 18,283 | | | | — | | | | — | | | | — | | | | 18,283 | | | | — | | | | 18,283 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 55,480 | | | | 14,970 | | | | 9,025 | | | | 2,858 | | | | 82,333 | | | | 36,500 | | | | 118,833 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 2,758 | | | | — | | | | — | | | | — | | | | 2,758 | | | | — | | | | 2,758 | |
Interest expense | | | (39,577 | ) | | | — | | | | — | | | | — | | | | (39,577 | ) | | | — | | | | (39,577 | ) |
Other income, net | | | (441 | ) | | | — | | | | — | | | | — | | | | (441 | ) | | | — | | | | (441 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (37,260 | ) | | | — | | | | — | | | | — | | | | (37,260 | ) | | | — | | | | (37,260 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 18,220 | | | | 14,970 | | | | 9,025 | | | | 2,858 | | | | 45,073 | | | | 36,500 | | | | 81,573 | |
Provision (benefit) for income taxes | | | 4,608 | | | | 5,479 | | | | 2,787 | | | | 1,046 | | | | 13,920 | | | | 12,918 | | | | 26,838 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 13,612 | | | | 9,491 | | | | 6,238 | | | | 1,812 | | | | 31,153 | | | | 23,582 | | | | 54,735 | |
Equity in earnings (losses) of unconsolidated entities | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Minority interest | | | 190 | | | | — | | | | — | | | | — | | | | 190 | | | | — | | | | 190 | |
| | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 13,802 | | | $ | 9,491 | | | $ | 6,238 | | | $ | 1,812 | | | $ | 31,343 | | | $ | 23,582 | | | $ | 54,925 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 0.07 | | | $ | 0.05 | | | $ | 0.03 | | | $ | 0.01 | | | $ | 0.16 | | | $ | 0.12 | | | $ | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 196,537 | | | | 196,537 | | | | 196,537 | | | | 196,537 | | | | 196,537 | | | | 196,537 | | | | 196,537 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | $ | 101,971 | | | $ | (36,500 | ) | | $ | 65,471 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
7
Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC.
GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GAAP | | | M&A | | | | | | | | | | | | | | | | | | Non-GAAP | |
| | Three Months | | | Restructuring | | | Corporate | | | | | | | | | | | | | | | Three Months | |
| | Ended | | | and | | | Costs | | | LPS | | | | | | | Purchase | | | Ended | |
| | June 30, 2008 | | | Integration | | | Non-Disc | | | Spin | | | | | | | Price | | | June 30, 2008 | |
| | (Unaudited) | | | Costs(1) | | | Ops(2) | | | Costs(3) | | | Subtotal | | | Amortization(7) | | | (Unaudited) | |
Processing and services revenue | | $ | 878,653 | | | | — | | | | — | | | | — | | | $ | 878,653 | | | | — | | | $ | 878,653 | |
Cost of revenues | | | 674,032 | | | | (23,950 | ) | | | — | | | | — | | | | 650,082 | | | | (35,459 | ) | | | 614,623 | |
| | | | | | | | | | | | | | | | | | | | | |
Gross profit | | | 204,621 | | | | 23,950 | | | | — | | | | — | | | | 228,571 | | | | 35,459 | | | | 264,030 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 122,223 | | | | (5,121 | ) | | | (9,093 | ) | | | (5,582 | ) | | | 102,427 | | | | — | | | | 102,427 | |
Research and development costs | | | 19,357 | | | | — | | | | — | | | | — | | | | 19,357 | | | | — | | | | 19,357 | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 63,041 | | | | 29,071 | | | | 9,093 | | | | 5,582 | | | | 106,787 | | | | 35,459 | | | | 142,246 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 1,637 | | | | — | | | | — | | | | — | | | | 1,637 | | | | — | | | | 1,637 | |
Interest expense | | | (44,441 | ) | | | 2,722 | | | | — | | | | — | | | | (41,719 | ) | | | — | | | | (41,719 | ) |
Other income, net | | | 2,224 | | | | — | | | | — | | | | — | | | | 2,224 | | | | — | | | | 2,224 | |
| | | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | (40,580 | ) | | | 2,722 | | | | — | | | | — | | | | (37,858 | ) | | | — | | | | (37,858 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before income taxes, equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 22,461 | | | | 31,793 | | | | 9,093 | | | | 5,582 | | | | 68,929 | | | | 35,459 | | | | 104,388 | |
Provision (benefit) for income taxes | | | 4,802 | | | | 11,255 | | | | 2,751 | | | | 1,976 | | | | 20,784 | | | | 12,360 | | | | 33,144 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before equity in (losses) earnings of unconsolidated entities, minority interest, and discontinues operations | | | 17,659 | | | | 20,538 | | | | 6,342 | | | | 3,606 | | | | 48,145 | | | | 23,099 | | | | 71,244 | |
Equity in earnings (losses) of unconsolidated entities | | | (157 | ) | | | — | | | | — | | | | — | | | | (157 | ) | | | — | | | | (157 | ) |
Minority interest | | | (306 | ) | | | — | | | | — | | | | — | | | | (306 | ) | | | — | | | | (306 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Net earnings from continuing operations | | $ | 17,196 | | | $ | 20,538 | | | $ | 6,342 | | | $ | 3,606 | | | $ | 47,682 | | | $ | 23,099 | | | $ | 70,781 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earnings per share — diluted from continuing operations * | | $ | 0.09 | | | $ | 0.11 | | | $ | 0.03 | | | $ | 0.02 | | | $ | 0.25 | | | $ | 0.12 | | | $ | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding — diluted | | | 194,448 | | | | 194,448 | | | | 194,448 | | | | 194,448 | | | | 194,448 | | | | 194,448 | | | | 194,448 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations | | | | | | | | | | | | | | | | | | $ | 96,473 | | | $ | (35,459 | ) | | $ | 61,014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
* | | Amounts may not sum due to rounding. |
See accompanying notes.
8
Notes to Unaudited GAAP to Non-GAAP Reconciliation for the Full Year 2007 and the Quarters Ended March 31, June 30, September 30, and December 31, 2007 and March 31, and June 30, 2008
The adjustments are as follows:
(1) | | This column represents charges for restructuring and integration costs relating to merger and acquisition activities as previously disclosed in our earnings releases. |
(2) | | This column represents corporate costs attributable to LPS as previously reported in our investor package furnished on form 8-K on May 28, 2008. These amounts are not allocable to discontinued operations under U.S. Generally Accepted Accounting Principles. |
(3) | | This column represents incremental transaction costs incurred by the Company directly related to the LPS spin-off. |
(4) | | This column represents a gain on sale of investment in Covansys to a third party recorded in the second and third quarters of 2007. |
(5) | | This column represents the allocation of interest expense for the periods presented, as if the debt retired in conjunction with the LPS spin-off had occurred on January 1, 2007, as previously reported in our investor package furnished on form 8-K on May 28, 2008. |
(6) | | This column represents debt restructuring charges recorded in the first quarter of 2007, to write-off capitalized unamortized debt issuance costs. |
(7) | | This column represents purchase price amortization expense related to intangibles assets acquired through various Company acquisitions. |
9