FIS Reports First Quarter 2016 Results 

FIS-Global
  • Revenue of $2.2 billion, 4.2 percent organic revenue growth
  • EPS from continuing operations of $0.17, or $0.79 on an adjusted basis, a 22% increase
  • SunGard integration ahead of plan
  • Free cash flow of $338 million

FIS™ (NYSE:FIS), a global leader in financial services technology, today reported that first quarter revenue increased to $2.2 billion from $1.6 billion in the first quarter of 2015. GAAP net earnings from continuing operations attributable to common stockholders was $55 million, or $0.17per diluted share, compared to $114 million, or $0.40 per diluted share in the prior year quarter.

Organic revenue growth was 4.2 percent in the quarter. Adjusted net earnings from continuing operations attributable to common stockholders was $259 million for the quarter, or $0.79 per share compared to $0.65 per share in the prior year period, an increase of 22 percent. Adjusted EBITDA increased to $637 million in the first quarter 2016, from$589 million adjusted combined EBITDA in the prior year quarter, while adjusted EBITDA margin was 28.2 percent.

“We are pleased with our strong performance to start the year, which was driven by solid sales execution, high-quality recurring revenues, and earnings,” said Gary Norcross, president and chief executive officer, FIS. “The addition of solutions from the SunGard portfolio and synergy attainment significantly expanded margins. These gains underscore our commitment to delivering top-line growth with margin expansion to create long-term value for FIS shareholders.”

Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.

Segment Information

Certain items within our prior period segment results have been recast to reflect the manner in which the business is currently operated and managed.

  • Integrated Financial Solutions:

First quarter revenue grew to $1.1 billion. Organic revenue growth was 5.4 percent in the quarter. Adjusted EBITDA increased to $426 million and adjusted EBITDA margin was 38.0 percent.

  • Global Financial Solutions:

First quarter revenue increased to $990 million. Organic revenue growth was 4.4 percent in the quarter. Adjusted EBITDA increased to $251 million and adjusted EBITDA margin was 25.4 percent.

  • Corporate / Other:

The Corporate and Other segment now includes: the public sector & education, retail check processing, and commercial service businesses. First quarter revenue was $70 million. Adjusted EBITDA loss was $40 millionand is inclusive of $76 million of corporate expenses.

First quarter interest expense, net of interest income was $93 million. The effective tax rate on an adjusted basis was 35.0 percent in the first quarter.

Balance Sheet and Cash Flow

As of March 31, 2016, cash and cash equivalents totaled $702 million and debt outstanding totaled $11.3 billion.

Net cash provided by operations was $385 million and adjusted cash flow from operations was $483 million for the first quarter. Capital expenditures were $145 million and free cash flow was $338 million.

The company paid dividends in the first quarter totaling $85 million.

2016 Outlook

FIS maintains its 2016 outlook as follows:

  • Organic revenue growth of 3 to 4 percent
  • Adjusted EPS from continuing operations of $3.70 to $3.80, an increase of 15 to 18 percent compared to $3.22per share in 2015
  • Free cash flow is expected to approximate adjusted net earnings

Source: FIS

Leave a Comment


Broker Cyprus TopFX