Fiserv Inc. (FISV, Financial) filed Annual Report for the period ended 2011-12-31.
Fiserv Inc has a market cap of $9.17 billion; its shares were traded at around $66.93 with a P/E ratio of 14.2 and P/S ratio of 2.1. Fiserv Inc had an annual average earning growth of 9.3% over the past 10 years. GuruFocus rated Fiserv Inc the business predictability rank of 3-star.
Revenue in our Payments segment increased $173 million, or 8%, in 2011 and increased $48 million, or 2%, in 2010 compared to the prior years. Revenue from acquired companies totaled $26 million and positively impacted revenue growth by approximately one percentage point in 2011. Revenue growth in our Payments segment during 2011 and 2010 was primarily driven by our recurring revenue businesses as processing and services revenue increased $99 million, or 6%, and $58 million, or 4%, in 2011 and 2010, respectively. The growth in both years was primarily due to new clients and increased transaction volumes from existing clients in our electronic payments businesses, including our electronic banking and card services businesses. In addition, higher postage pass-through revenue, which is included in both product revenue and cost of product, in our output solutions business contributed approximately three percentage points of growth in this segment in 2011. In 2010, Payments segment revenue growth of 2% was negatively impacted by lower product revenue in our output solutions business, which decreased $10 million, or 2%, as compared to 2009.
Revenue in our Financial segment increased $53 million, or 3%, in 2011 and increased $9 million, or 0.5%, in 2010 compared to the prior years. Revenue growth in our Financial segment was favorably impacted by increases of $42 million and $31 million, or 2% in each of 2011 and 2010, in processing and services revenue due primarily to increased revenue in our bank and credit union account processing businesses and, in 2010, by higher contract termination fee revenue. Revenue growth was negatively impacted by volume declines in our check processing business in 2011 and 2010. In 2011, Financial segment revenue growth was favorably impacted by an $11 million increase in product revenue, primarily due to higher software license revenue, and in 2010, product revenue was negatively impacted by a decline in software license revenue compared to the prior year periods.
Total expenses increased $215 million, or 7%, in 2011 compared to 2010 and decreased $5 million, or 0.2%, in 2010 compared to 2009. Total expenses as a percentage of total revenue were 77.0%, 75.6% and 76.8% in 2011, 2010 and 2009, respectively.
Our net cash provided by operating activities from continuing operations, or operating cash flow, decreased $5 million, or 1%, to $953 million in 2011 from $958 million in 2010. In 2011, our operating cash flow was negatively impacted by a $28 million decrease in the portion of StoneRiver dividends that are included in operating cash flow and a $12 million increase in working capital compared to 2010. Our current policy is to use our operating cash flow to repay debt and to fund capital expenditures, acquisitions and share repurchases, rather than to pay dividends. Our capital expenditures of $192 million and $175 million in 2011 and 2010, respectively, were less than 5% of our total revenue in each year. The $17 million increase in capital expenditures in 2011 was primarily due to equipment purchases associated with a new data center.
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Fiserv Inc has a market cap of $9.17 billion; its shares were traded at around $66.93 with a P/E ratio of 14.2 and P/S ratio of 2.1. Fiserv Inc had an annual average earning growth of 9.3% over the past 10 years. GuruFocus rated Fiserv Inc the business predictability rank of 3-star.
Highlight of Business Operations:
Total revenue increased $204 million, or 5%, in 2011 and increased $56 million, or 1%, in 2010 compared to the prior years. The increase in total revenue during 2011 was primarily due to 8% revenue growth in our Payments segment and 3% revenue growth in our Financial segment, in each case, as compared to 2010. The increase in total revenue during 2010 was primarily due to 2% revenue growth in our Payments segment as compared to 2009. Revenue from acquired companies contributed $30 million and $3 million to revenue in 2011 and 2010, respectively.Revenue in our Payments segment increased $173 million, or 8%, in 2011 and increased $48 million, or 2%, in 2010 compared to the prior years. Revenue from acquired companies totaled $26 million and positively impacted revenue growth by approximately one percentage point in 2011. Revenue growth in our Payments segment during 2011 and 2010 was primarily driven by our recurring revenue businesses as processing and services revenue increased $99 million, or 6%, and $58 million, or 4%, in 2011 and 2010, respectively. The growth in both years was primarily due to new clients and increased transaction volumes from existing clients in our electronic payments businesses, including our electronic banking and card services businesses. In addition, higher postage pass-through revenue, which is included in both product revenue and cost of product, in our output solutions business contributed approximately three percentage points of growth in this segment in 2011. In 2010, Payments segment revenue growth of 2% was negatively impacted by lower product revenue in our output solutions business, which decreased $10 million, or 2%, as compared to 2009.
Revenue in our Financial segment increased $53 million, or 3%, in 2011 and increased $9 million, or 0.5%, in 2010 compared to the prior years. Revenue growth in our Financial segment was favorably impacted by increases of $42 million and $31 million, or 2% in each of 2011 and 2010, in processing and services revenue due primarily to increased revenue in our bank and credit union account processing businesses and, in 2010, by higher contract termination fee revenue. Revenue growth was negatively impacted by volume declines in our check processing business in 2011 and 2010. In 2011, Financial segment revenue growth was favorably impacted by an $11 million increase in product revenue, primarily due to higher software license revenue, and in 2010, product revenue was negatively impacted by a decline in software license revenue compared to the prior year periods.
Total expenses increased $215 million, or 7%, in 2011 compared to 2010 and decreased $5 million, or 0.2%, in 2010 compared to 2009. Total expenses as a percentage of total revenue were 77.0%, 75.6% and 76.8% in 2011, 2010 and 2009, respectively.
Our net cash provided by operating activities from continuing operations, or operating cash flow, decreased $5 million, or 1%, to $953 million in 2011 from $958 million in 2010. In 2011, our operating cash flow was negatively impacted by a $28 million decrease in the portion of StoneRiver dividends that are included in operating cash flow and a $12 million increase in working capital compared to 2010. Our current policy is to use our operating cash flow to repay debt and to fund capital expenditures, acquisitions and share repurchases, rather than to pay dividends. Our capital expenditures of $192 million and $175 million in 2011 and 2010, respectively, were less than 5% of our total revenue in each year. The $17 million increase in capital expenditures in 2011 was primarily due to equipment purchases associated with a new data center.
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