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FIS Reports Fourth Quarter Results
Posted by: gurufocus (IP Logged)
Date: February 10, 2009 04:03PM
Press Release: FIS Reports Fourth Quarter Results
Fourth quarter consolidated revenue increased 0.8% to
Non-GAAP adjusted net earnings from continuing operations increased 41.2%to
For the full year 2008, revenue increased 18.0% to
"It was a solid quarter and a very good year for FIS. Full year revenueand earnings per share came in at the high end of our expectations, and proforma free cash flow grew to a record
"FIS is well positioned to generate solid growth in profitability,earnings per share and free cash flow in 2009," added
Divestitures and Discontinued Operations
During the first quarter of 2008, the Company reclassified certainrevenues related to eFunds, which was acquired in
Consolidated fourth quarter revenue increased 0.8% to
Adjusted EBITDA increased 4.3% to
The effective tax rate in the fourth quarter of 2008 was 32.0% compared to35.8% in the fourth quarter of 2007. The current period tax rate wasfavorably impacted by the geographic distribution of income, a federalresearch and development tax credit and state tax planning.
During the quarter, FIS recorded an after-tax impairment charge of
2009 Outlook FIS provided full year guidance for 2009 as follows: -- Reported revenue growth of 0 to 2%, and 3 to 5% in constant currency. -- Adjusted net earnings of $1.60 to $1.66 per share, representing approximately 7 to 11% growth on a reported basis, and 10 to 14% growth in constant currency -- Free cash flow of $410 to $430 million
The Company expects to report first quarter 2009 revenue of
Use of Non-GAAP Financial Information
FIS reports several non-GAAP measures, including earnings before interest,taxes, depreciation and amortization ("EBITDA") and adjusted net earnings,free cash flow and organic revenues. The adjusted results exclude the after-tax impact of merger and acquisition and integration expenses, certain stockcompensation charges, LPS spin-off related costs, debt restructuring and othercharges, gains (losses) on the sale of certain non-strategic assets andacquisition related amortization. Any non-GAAP measures should be consideredin context with the GAAP financial presentation and should not be consideredin isolation or as a substitute for GAAP net earnings. Further, FIS' non-GAAPmeasures may be calculated differently from similarly titled measures of othercompanies. A reconciliation of these non-GAAP measures to related GAAPmeasures is included in the attachments to this release.
Conference Call and Webcast
FIS will host a call with investors and analysts to discuss fourth quarterand full year 2008 results on
Fidelity National Information Services, Inc. (NYSE: FIS), a Fortune 500company and member of the S&P 500 Index, is a leading provider of coreprocessing for financial institutions; card issuer and transaction processingservices; and outsourcing services to financial institutions and retailers.FIS has processing and technology relationships with 40 of the top 50 globalbanks, including nine of the top 10 and was ranked the number one bankingtechnology provider in the world by American Banker and the research firmFinancial Insights in the 2008 FinTech 100 rankings. Headquartered in
This press release contains forward-looking statements that involve anumber of risks and uncertainties. Statements that are not historical facts,including statements about our beliefs and expectations, are forward-lookingstatements. Forward-looking statements are based on management's beliefs, aswell as assumptions made by, and information currently available to,management. Because such statements are based on expectations as to futureeconomic performance and are not statements of fact, actual results may differmaterially from those projected. We undertake no obligation to update anyforward-looking statements, whether as a result of new information, futureevents or otherwise. The risks and uncertainties which forward-lookingstatements are subject to include, but are not limited to: changes in generaleconomic, business and political conditions, including changes in thefinancial markets; the effects of our substantial leverage which may limit thefunds available to make acquisitions and invest in our business; the risks ofreduction in revenue from the elimination of existing and potential customersdue to consolidation in the banking, retail and financial services industriesor due to financial failures suffered by firms in those industries; failuresto adapt our services to changes in technology or in the marketplace; ourpotential inability to find suitable acquisition candidates or difficulties inintegrating acquisitions; significant competition that our operatingsubsidiaries face; and other risks detailed in the "Statement RegardingForward-Looking Information," "Risk Factors" and other sections of theCompany's Form 10-K and other filings with the Securities and ExchangeCommission.
Gurus who own FISFIS is in the portfolios of Ronald Muhlenkamp.
Stocks Discussed: FIS,