Exhibit 99.2
FIDELITY NATIONAL INFORMATION SERVICES, INC.
Supplemental Non-GAAP Operating Data (Unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 1,281.4 | | | $ | 5,092.0 | | | | $ | 1,211.9 | | | $ | 1,261.3 | | | $ | 1,262.5 | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues | | | 886.8 | | | | 3,598.8 | | | | | 855.8 | | | | 860.3 | | | | 855.9 | |
Selling, general and administrative expenses | | | 133.5 | | | | 550.6 | | | | | 136.5 | | | | 131.4 | | | | 126.5 | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 1,020.3 | | | | 4,149.4 | | | | | 992.3 | | | | 991.7 | | | | 982.4 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Operating income, as adjusted | | $ | 261.1 | | | $ | 942.6 | | | | $ | 219.6 | | | $ | 269.6 | | | $ | 280.1 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Operating margin, as adjusted | | | 20.4 | % | | | 18.5 | % | | | | 18.1 | % | | | 21.4 | % | | | 22.2 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
See accompanying notes.
1
FIDELITY NATIONAL INFORMATION SERVICES, INC.
PRO FORMA REPORTING SEGMENTS — UNAUDITED
(In millions)
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2009 | |
| | Financial | | | Payment | | | International | | | Corporate & | | | | |
| | Solutions | | | Solutions | | | Solutions | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma processing and services revenue | | $ | 439.3 | | | $ | 612.2 | | | $ | 211.6 | | | $ | (0.6 | ) | | $ | 1,262.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma operating income | | $ | 149.5 | | | $ | 197.6 | | | $ | 33.0 | | | $ | (177.7 | ) | | $ | 202.4 | |
| | | | | | | | | | | | | | | | | | | | |
Non GAAP items (1) | | | — | | | | — | | | | — | | | | 10.2 | | | | 10.2 | |
Purchase price amortization | | | — | | | | — | | | | — | | | | 67.5 | | | | 67.5 | |
| | | | | | | | | | | | | | | |
Non GAAP operating income | | | 149.5 | | | | 197.6 | | | | 33.0 | | | | (100.0 | ) | | | 280.1 | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations as adjusted | | | 37.7 | | | | 28.1 | | | | 16.2 | | | | 10.4 | | | | 92.4 | |
| | | | | | | | | | | | | | | |
EBITDA, as adjusted | | $ | 187.2 | | | $ | 225.7 | | | $ | 49.2 | | | $ | (89.6 | ) | | $ | 372.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA margin, as adjusted | | | 42.6 | % | | | 36.9 | % | | | 23.3 | % | | | N/A | | | | 29.5 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2009 | |
| | Financial | | | Payment | | | International | | | Corporate & | | | | |
| | Solutions | | | Solutions | | | Solutions | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma processing and services revenue | | $ | 445.0 | | | $ | 631.1 | | | $ | 185.8 | | | $ | (0.6 | ) | | $ | 1,261.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma operating income | | $ | 151.6 | | | $ | 194.8 | | | $ | 21.5 | | | $ | (172.3 | ) | | $ | 195.6 | |
| | | | | | | | | | | | | | | | | | | | |
Non GAAP items (1) | | | — | | | | — | | | | — | | | | 6.4 | | | | 6.4 | |
Purchase price amortization | | | — | | | | — | | | | — | | | | 67.6 | | | | 67.6 | |
| | | | | | | | | | | | | | | |
Non GAAP operating income | | | 151.6 | | | | 194.8 | | | | 21.5 | | | | (98.3 | ) | | | 269.6 | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations as adjusted | | | 39.4 | | | | 28.5 | | | | 14.5 | | | | 7.8 | | | | 90.2 | |
| | | | | | | | | | | | | | | |
EBITDA, as adjusted | | $ | 191.0 | | | $ | 223.3 | | | $ | 36.0 | | | $ | (90.5 | ) | | $ | 359.8 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA margin, as adjusted | | | 42.9 | % | | | 35.4 | % | | | 19.4 | % | | | N/A | | | | 28.5 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2009 | |
| | Financial | | | Payment | | | International | | | Corporate & | | | | |
| | Solutions | | | Solutions | | | Solutions | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma processing and services revenue | | $ | 429.9 | | | $ | 612.8 | | | $ | 169.7 | | | $ | (0.5 | ) | | $ | 1,211.9 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma operating income | | $ | 125.2 | | | $ | 177.6 | | | $ | 17.0 | | | $ | (178.2 | ) | | $ | 141.6 | |
| | | | | | | | | | | | | | | | | | | | |
Non GAAP items (1) | | | — | | | | — | | | | — | | | | 9.5 | | | | 9.5 | |
Purchase price amortization | | | — | | | | — | | | | — | | | | 68.5 | | | | 68.5 | |
| | | | | | | | | | | | | | | |
Non GAAP operating income | | | 125.2 | | | | 177.6 | | | | 17.0 | | | | (100.2 | ) | | | 219.6 | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations as adjusted | | | 37.7 | | | | 29.0 | | | | 13.1 | | | | 8.9 | | | | 88.7 | |
| | | | | | | | | | | | | | | |
EBITDA, as adjusted | | $ | 162.9 | | | $ | 206.6 | | | $ | 30.1 | | | $ | (91.3 | ) | | $ | 308.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA margin, as adjusted | | | 37.9 | % | | | 33.7 | % | | | 17.7 | % | | | N/A | | | | 25.4 | % |
| | | | | | | | | | | | | | | |
| | |
(1) | | Amounts represent charges for restructuring and integration relating to merger and acquisition activities, corporate costs attributable to Lender Processing Services (“LPS”) not allocable to discontinued operations under U.S. generally accepted accounting principles, incremental transaction costs incurred by the Company directly related to LPS spin-off in 2008, and impairment charges related to the decline in fair value of a trademark associated with our retail check business. |
2
FIDELITY NATIONAL INFORMATION SERVICES, INC.
PRO FORMA REPORTING SEGMENTS — UNAUDITED
(In millions)
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2008 | |
| | Financial | | | Payment | | | International | | | Corporate & | | | | |
| | Solutions | | | Solutions | | | Solutions | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma processing and services revenue | | $ | 458.4 | | | $ | 635.9 | | | $ | 187.3 | | | $ | (0.2 | ) | | $ | 1,281.4 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma operating income | | $ | 159.0 | | | $ | 190.6 | | | $ | 22.4 | | | $ | (209.3 | ) | | $ | 162.7 | |
| | | | | | | | | | | | | | | | | | | | |
Non GAAP items (1) | | | — | | | | — | | | | — | | | | 27.5 | | | | 27.5 | |
Purchase price amortization | | | — | | | | — | | | | — | | | | 70.9 | | | | 70.9 | |
| | | | | | | | | | | | | | | |
Non GAAP operating income | | | 159.0 | | | | 190.6 | | | | 22.4 | | | | (110.9 | ) | | | 261.1 | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations as adjusted | | | 37.5 | | | | 27.7 | | | | 11.2 | | | | 10.2 | | | | 86.6 | |
| | | | | | | | | | | | | | | |
EBITDA, as adjusted | | $ | 196.5 | | | $ | 218.3 | | | $ | 33.6 | | | $ | (100.7 | ) | | $ | 347.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA margin, as adjusted | | | 42.9 | % | | | 34.3 | % | | | 17.9 | % | | | N/A | | | | 27.1 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2008 | |
| | Financial | | | Payment | | | International | | | Corporate & | | | | |
| | Solutions | | | Solutions | | | Solutions | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma processing and services revenue | | $ | 1,788.4 | | | $ | 2,517.2 | | | $ | 788.9 | | | $ | (2.5 | ) | | $ | 5,092.0 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pro forma operating income | | $ | 553.6 | | | $ | 724.9 | | | $ | 73.7 | | | $ | (806.8 | ) | | $ | 545.4 | |
| | | | | | | | | | | | | | | | | | | | |
Non GAAP items (1) | | | — | | | | — | | | | — | | | | 101.2 | | | | 101.2 | |
Purchase price amortization | | | — | | | | — | | | | — | | | | 296.0 | | | | 296.0 | |
| | | | | | | | | | | | | | | |
Non GAAP operating income | | | 553.6 | | | | 724.9 | | | | 73.7 | | | | (409.6 | ) | | | 942.6 | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization from continuing operations as adjusted | | | 158.3 | | | | 116.1 | | | | 53.6 | | | | 31.8 | | | | 359.8 | |
| | | | | | | | | | | | | | | |
EBITDA, as adjusted | | $ | 711.9 | | | $ | 841.0 | | | $ | 127.3 | | | $ | (377.8 | ) | | $ | 1,302.4 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
EBITDA margin, as adjusted | | | 39.8 | % | | | 33.4 | % | | | 16.1 | % | | | N/A | | | | 25.6 | % |
| | | | | | | | | | | | | | | |
| | |
(1) | | Amounts represent charges for restructuring and integration relating to merger and acquisition activities, corporate costs attributable to Lender Processing Services (“LPS”) not allocable to discontinued operations under U.S. generally accepted accounting principles, incremental transaction costs incurred by the Company directly related to LPS spin-off in 2008, and impairment charges related to the decline in fair value of a trademark associated with our retail check business. |
3
| | | | | | | | | | |
| | FIDELITY NATIONAL INFORMATION SERVICES, INC. |
| | Unaudited Pro Forma GAAP to Non-GAAP Condensed Combined Operating Income |
| | (in millions) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | M&A, | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Restructuring | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | And | | | Purchase | | | Non-GAAP | |
| | As Reported | | | As Reported | | | Pro Forma | | | | | | | Pro Forma | | | Integration | | | Price | | | Pro Forma | |
| | FIS | | | Metavante | | | Adjustments | | | | | | | Combined | | | Costs (2) | | | Amortization (6) | | | Combined | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 850.7 | | | $ | 425.0 | | | $ | (13.2 | ) | | | (a | )(b) | | $ | 1,262.5 | | | $ | — | | | $ | — | | | $ | 1,262.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 622.8 | | | | 272.7 | | | | 27.9 | | | | (a | )(b)(c) | | | 923.4 | | | | — | | | | (67.5 | ) | | | 855.9 | |
Selling, general and administrative expenses | | | 92.2 | | | | 54.5 | | | | (10.0 | ) | | | (a | )(b)(d) | | | 136.7 | | | | (10.2 | ) | | | — | | | | 126.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 715.0 | | | | 327.2 | | | | 17.9 | | | | | | | | 1,060.1 | | | | (10.2 | ) | | | (67.5 | ) | | | 982.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 135.7 | | | $ | 97.8 | | | $ | (31.1 | ) | | | | | | $ | 202.4 | | | $ | 10.2 | | | $ | 67.5 | | | $ | 280.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | M&A, | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Restructuring | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | And | | | Purchase | | | Non-GAAP | |
| | As Reported | | | As Reported | | | Pro Forma | | | | | | | Pro Forma | | | Integration | | | Price | | | Pro Forma | |
| | FIS | | | Metavante | | | Adjustments | | | | | | | Combined | | | Costs (2) | | | Amortization (6) | | | Combined | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 834.8 | | | $ | 440.3 | | | $ | (13.8 | ) | | | (a | )(b) | | $ | 1,261.3 | | | $ | — | | | $ | — | | | $ | 1,261.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 624.2 | | | | 277.1 | | | | 26.6 | | | | (a | )(b)(c) | | | 927.9 | | | | — | | | | (67.6 | ) | | | 860.3 | |
Selling, general and administrative expenses | | | 93.2 | | | | 53.9 | | | | (9.3 | ) | | | (a | )(b)(d) | | | 137.8 | | | | (6.4 | ) | | | — | | | | 131.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 717.4 | | | | 331.0 | | | | 17.3 | | | | | | | | 1,065.7 | | | | (6.4 | ) | | | (67.6 | ) | | | 991.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 117.4 | | | $ | 109.3 | | | $ | (31.1 | ) | | | | | | $ | 195.6 | | | $ | 6.4 | | | $ | 67.6 | | | $ | 269.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | M&A, | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Restructuring | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | And | | | Purchase | | | Non-GAAP | |
| | As Reported | | | As Reported | | | Pro Forma | | | | | | | Pro Forma | | | Integration | | | Price | | | Pro Forma | |
| | FIS | | | Metavante | | | Adjustments | | | | | | | Combined | | | Costs (2) | | | Amortization (6) | | | Combined | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 797.8 | | | $ | 426.9 | | | $ | (12.8 | ) | | | (a | )(b) | | $ | 1,211.9 | | | $ | — | | | $ | — | | | $ | 1,211.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 616.9 | | | | 280.3 | | | | 27.1 | | | | (a | )(b)(c) | | | 924.3 | | | | — | | | | (68.5 | ) | | | 855.8 | |
Selling, general and administrative expenses | | | 99.0 | | | | 57.1 | | | | (10.1 | ) | | | (a | )(b)(d) | | | 146.0 | | | | (9.5 | ) | | | — | | | | 136.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 715.9 | | | | 337.4 | | | | 17.0 | | | | | | | | 1,070.3 | | | | (9.5 | ) | | | (68.5 | ) | | | 992.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 81.9 | | | $ | 89.5 | | | $ | (29.8 | ) | | | | | | $ | 141.6 | | | $ | 9.5 | | | $ | 68.5 | | | $ | 219.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes.
4
FIDELITY NATIONAL INFORMATION SERVICES, INC.
Unaudited Pro Forma GAAP to Non-GAAP Condensed Combined Operating Income
For the Three Months Ended December 31, 2008
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | M&A, | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Restructuring | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | And | | | | | | | Purchase | | | Non-GAAP | |
| | As Reported | | | As Reported | | | Pro Forma | | | | | | | Pro Forma | | | Integration | | | Trademark | | | Price | | | Pro Forma | |
| | FIS | | | Metavante | | | Adjustments | | | | | | | Combined | | | Costs (2) | | | Impairment (5) | | | Amortization (6) | | | Combined | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 862.0 | | | $ | 433.4 | | | $ | (14.0 | ) | | | (a | )(b) | | $ | 1,281.4 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,281.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 675.5 | | | | 283.6 | | | | 24.6 | | | | (a | )(b)(c) | | | 983.7 | | | | — | | | | (26.0 | ) | | | (70.9 | ) | | | 886.8 | |
Selling, general and administrative expenses | | | 80.5 | | | | 64.7 | | | | (10.2 | ) | | | (a | )(b)(d) | | | 135.0 | | | | (1.5 | ) | | | — | | | | — | | | | 133.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 756.0 | | | | 348.3 | | | | 14.4 | | | | | | | | 1,118.7 | | | | (1.5 | ) | | | (26.0 | ) | | | (70.9 | ) | | | 1,020.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 106.0 | | | $ | 85.1 | | | $ | (28.4 | ) | | | | | | $ | 162.7 | | | $ | 1.5 | | | $ | 26.0 | | | $ | 70.9 | | | $ | 261.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes.
5
FIDELITY NATIONAL INFORMATION SERVICES, INC.
Unaudited Pro Forma GAAP to Non-GAAP Condensed Combined Operating Income
For the Year Ended December 31, 2008
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | M&A, | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Restructuring | | | Corporate | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | And | | | Costs | | | LPS | | | | | | | Purchase | | | Non-GAAP | |
| | As Reported | | | As Reported | | | Pro Forma | | | | | | | Pro Forma | | | Integration | | | Non-Disc | | | Spin | | | Trademark | | | Price | | | Pro Forma | |
| | FIS | | | Metavante | | | Adjustments | | | | | | | Combined | | | Costs (2) | | | Ops (3) | | | Costs (4) | | | Impairment (5) | | | Amortization (6) | | | Combined | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | 3,446.0 | | | $ | 1,707.2 | | | $ | (61.2 | ) | | | (a | )(b) | | $ | 5,092.0 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 5,092.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 2,721.7 | | | | 1,118.5 | | | | 105.9 | | | | (a | )(b)(c) | | | 3,946.1 | | | | (25.3 | ) | | | — | | | | — | | | | (26.0 | ) | | | (296.0 | ) | | | 3,598.8 | |
Selling, general and administrative expenses | | | 389.4 | | | | 251.1 | | | | (40.0 | ) | | | (a | )(b)(d) | | | 600.5 | | | | (22.5 | ) | | | (18.1 | ) | | | (9.3 | ) | | | — | | | | — | | | | 550.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 3,111.1 | | | | 1,369.6 | | | | 65.9 | | | | | | | | 4,546.6 | | | | (47.8 | ) | | | (18.1 | ) | | | (9.3 | ) | | | (26.0 | ) | | | (296.0 | ) | | | 4,149.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 334.9 | | | $ | 337.6 | | | $ | (127.1 | ) | | | | | | $ | 545.4 | | | $ | 47.8 | | | $ | 18.1 | | | $ | 9.3 | | | $ | 26.0 | | | $ | 296.0 | | | $ | 942.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes.
6
Notes to Unaudited Pro Forma GAAP to Non-GAAP Reconciliation
for the Quarters Ended March 31, June 30, and September 30, 2009, December 31, 2008
and year ended December 31, 2008
This presentation is limited to revenues and expenses that comprise operating income. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not indicate the financial results of the combined companies had the companies actually been combined at the beginning of each period presented, nor the impact of possible business model changes. The unaudited pro forma condensed combined financial information also does not consider any potential impacts of current market conditions on revenues, expense efficiencies and other factors. In addition, the preliminary allocation of the purchase price reflected in the unaudited pro forma condensed combined financial information is subject to adjustment and may vary significantly from the final purchase price allocation that will be recorded upon completion of the appraisal process.
Items a-d represent adjustments needed to combine the results of Metavante with FIS on a pro forma basis.
| (a) | | To eliminate activity between FIS and Metavante consisting principally of imaging and card-processing services provided by Metavante to FIS and to conform historical Metavante classifications to FIS presentation. A portion of the conforming reclassifications impacts other expenses that are not part of operating income. |
| | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | (10.0 | ) | | $ | (42.9 | ) | | $ | (9.1 | ) | | $ | (8.2 | ) | | $ | (7.9 | ) |
| | | | | | | | | | | | | | | |
Cost of revenues | | $ | (7.5 | ) | | $ | (32.7 | ) | | $ | (8.0 | ) | | $ | (7.7 | ) | | $ | (7.4 | ) |
| | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | $ | (0.5 | ) | | $ | (1.6 | ) | | $ | (0.4 | ) | | $ | 0.3 | | | $ | (0.5 | ) |
| | | | | | | | | | | | | | | |
| (b) | | Operating results of ClearPar will be presented as discontinued operations beginning with FIS’ reported results for the fourth quarter of 2009. This presentation combines revenues and costs into one line item that will be presented below continuing operations. |
| | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | (4.0 | ) | | $ | (18.3 | ) | | $ | (3.7 | ) | | $ | (5.6 | ) | | $ | (5.3 | ) |
| | | | | | | | | | | | | | | |
Cost of revenues | | $ | (1.7 | ) | | $ | (6.4 | ) | | $ | (1.4 | ) | | $ | (1.4 | ) | | $ | (1.5 | ) |
| | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | $ | (0.2 | ) | | $ | (0.8 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) | | $ | (0.2 | ) |
| | | | | | | | | | | | | | | |
| (c) | | To record the following adjustments to cost of revenues: |
| | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | |
Estimated Metavante intangible asset amortization and incremental software amortization | | $ | 37.2 | | | $ | 158.7 | | | $ | 39.7 | | | $ | 39.7 | | | $ | 39.7 | |
Reverse amortization of Metavante deferred conversion costs eliminated in purchase accounting | | | (3.4 | ) | | | (13.7 | ) | | | (3.2 | ) | | | (4.0 | ) | | | (2.9 | ) |
| | | | | | | | | | | | | | | |
| | $ | 33.8 | | | $ | 145.0 | | | $ | 36.5 | | | $ | 35.7 | | | $ | 36.8 | |
| | | | | | | | | | | | | | | |
| (d) | | To record the following adjustments: |
| | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | |
Eliminate Metavante intangible asset amortization | | $ | (7.4 | ) | | $ | (29.7 | ) | | $ | (7.4 | ) | | $ | (7.4 | ) | | $ | (7.4 | ) |
Conform recognition of commission expense to FIS policy | | | (2.1 | ) | | | (7.9 | ) | | | (2.1 | ) | | | (2.0 | ) | | | (1.9 | ) |
| | | | | | | | | | | | | | | |
| | $ | (9.5 | ) | | $ | (37.6 | ) | | $ | (9.5 | ) | | $ | (9.4 | ) | | $ | (9.3 | ) |
| | | | | | | | | | | | | | | |
The combined impact of items a-d above to Revenues, Expenses and Operating income is summarized below:
| | | | | | | | | | | | | | | | | | | | |
| | Fourth | | | Full | | | First | | | Second | | | Third | |
| | Quarter | | | Year | | | Quarter | | | Quarter | | | Quarter | |
| | 2008 | | | 2008 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | |
Processing and services revenue | | $ | (14.0 | ) | | $ | (61.2 | ) | | $ | (12.8 | ) | | $ | (13.8 | ) | | $ | (13.2 | ) |
Cost of revenues | | | 24.6 | | | | 105.9 | | | | 27.1 | | | | 26.6 | | | | 27.9 | |
Selling, general and administrative expenses | | | (10.2 | ) | | | (40.0 | ) | | | (10.1 | ) | | | (9.3 | ) | | | (10.0 | ) |
| | | | | | | | | | | | | | | |
Operating income | | $ | (28.4 | ) | | $ | (127.1 | ) | | $ | (29.8 | ) | | $ | (31.1 | ) | | $ | (31.1 | ) |
| | | | | | | | | | | | | | | |
7
Notes to Unaudited Pro Forma GAAP to Non-GAAP Reconciliation
for the Quarters Ended March 31, June 30, and September 30, 2009, December 31, 2008
and year ended December 31, 2008
Items 1- 6 represent Non-GAAP adjustments to the Pro Forma recast historical results.
(1) | | Research and development expenses, that have historically been reported separately, have been grouped with cost of revenues for this presentation. |
|
(2) | | This column represents charges for restructuring and integration costs relating to merger and acquisition activities including, but not limited to, the recently completed acquisition of Metavante Technologies, Inc. |
|
(3) | | 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. |
|
(4) | | This column represents incremental transaction costs incurred by the Company directly related to the LPS spin-off. |
|
(5) | | This column represents an impairment charge of $26 million related to a decline in the fair value of a trademark associated with our retail check business. |
|
(6) | | This column represents purchase price amortization expense related to intangible assets acquired through various Company acquisitions. |
8
FIDELITY NATIONAL INFORMATION SERVICES, INC.
Supplemental Financial Information
For the Year Ended December 31, 2007
| | | | |
| | Revenue | |
| | | | |
FIS as Reported | | $ | 2,921.0 | |
| | | | |
Metavante as Reported | | | 1,598.1 | |
| | | | |
Pro forma adjustments | | | (68.8 | )(a) |
| | | |
| | | | |
Pro forma combined | | $ | 4,450.3 | |
| | | |
(a) | | To eliminate activity between FIS and Metavante consisting principally of imaging and card-processing services provided by Metavante to FIS and to conform historically Metavante classifications to FIS presentation. Additionally, amount also includes revenue recorded by ClearPar that will be presented as discontinued operations beginning with FIS’ reported results for the fourth quarter of 2009. This presentation combines revenues and costs into one line item that will be presented below continuing operations. |
| | | | | | | | | | | | |
| | EBITDA Reconciliation | |
| | FIS | | | MV | | | Total | |
| | | | | | | | | | | | |
Operating Income from Continuing Operations | | $ | 281.9 | | | $ | 152.9 | | | $ | 434.8 | |
Plus Depreciation and Amortization | | | 393.3 | | | | 154.4 | | | | 547.7 | |
Plus MV impairment charge | | | — | | | | 129.4 | | | | 129.4 | |
| | | | | | | | | |
| | | | | | | | | | | | |
EBITDA, unadjusted | | | 675.2 | | | | 436.7 | | | | 1,111.9 | |
| | | | | | | | | | | | |
Add back Non-GAAP adjustments (b) | | | 31.1 | | | | 21.5 | | | | 52.6 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Adjusted Non GAAP EBITDA | | $ | 706.3 | | | $ | 458.2 | | | $ | 1,164.5 | |
| | | | | | | | | |
(b) | | Non GAAP adjustments per FIS 8K filed 2/10/09 and transaction costs on Metavante 2007 income statement. |
9
FIDELITY NATIONAL INFORMATION SERVICES, INC.
Supplemental Financial Information
Reconciliation of Pro forma Free Cash Flow
| | | | | | | | | | | | |
| | Year Ended December 31, 2008 | |
| | FIS | | | MV | | | Total | |
| | | | | | | | | | | | |
Net Cash Provided by Operating Activities | | $ | 596.4 | | | $ | 302.5 | | | $ | 898.9 | |
Less Capex | | | (255.4 | ) | | | (137.5 | ) | | | (392.9 | ) |
| | | | | | | | | |
Free Cash Flow unadjusted | | | 341.0 | | | | 165.0 | | | | 506.0 | |
| | | | | | | | | | | | |
Less FCF attributable to LPS | | | (111.5 | ) | | | — | | | | (111.5 | ) |
Add back Non GAAP adjustments | | | 114.6 | | | | — | | | | 114.6 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Adjusted Non GAAP FCF | | $ | 344.1 | | | $ | 165.0 | | | $ | 509.1 | |
| | | | | | | | | |
| | | | | | | | | | | | |
| | Year Ended December 31, 2007 | |
| | FIS | | | MV | | | Total | |
| | | | | | | | | | | | |
Net Cash Provided by Operating Activities | | $ | 463.5 | | | $ | 345.4 | | | $ | 808.9 | |
Less Capex | | | (343.3 | ) | | | (143.4 | ) | | | (486.7 | ) |
| | | | | | | | | |
Free Cash Flow unadjusted | | | 120.2 | | | | 202.0 | | | | 322.2 | |
| | | | | | | | | | | | |
Less FCF attributable to LPS | | | (212.4 | ) | | | — | | | | (212.4 | ) |
Add back Non GAAP adjustments | | | 241.5 | | | | — | | | | 241.5 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Adjusted Non GAAP FCF | | $ | 149.3 | | | $ | 202.0 | | | $ | 351.3 | |
| | | | | | | | | |
10