EX-99.1 2 a40124exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
 

EXHIBIT 99.1
     
(FIS LOGO)   PRESS RELEASE
FIS FIRST QUARTER REVENUES INCREASE 20.5%
Reiterates Full-Year Earnings Guidance
Lender Processing Services Growth Rate Accelerates to 12.6%
     Jacksonville, Fla. -April 24, 2008 — Fidelity National Information Services, Inc. (NYSE:FIS), a leading global provider of technology services to financial institutions, today announced financial results for the first quarter of 2008. First quarter results include the divestiture of certain businesses which are reported as discontinued operations for all periods presented.
     Consolidated revenue increased 20.5% to $1.3 billion, including approximately $141.3 million in revenue from eFunds, which was acquired in September 2007. Excluding eFunds, revenue increased 7.3% over the comparable 2007 quarter, driven by 12.6% growth in Lender Processing Services and 4.5% growth in Transaction Processing Services. GAAP net earnings totaled $70.5 million, and net earnings per diluted share totaled $0.36, including $0.01 from discontinued operations.
     Adjusted EBITDA increased 14.8% to $312.3 million compared to $272.0 million in the first quarter of 2007. Adjusted net earnings (formerly referred to as “cash earnings”) totaled $0.57 per diluted share compared to $0.54 in the prior-year quarter. Adjusted net earnings from continuing operations totaled $0.56 per diluted share compared to $0.52 per diluted share in the prior year.
     “While FIS achieved solid revenue growth in the first quarter, earnings came in at the low end of our guidance, primarily due to lower-than-expected software and professional services revenue,” stated William P. Foley, II, executive chairman for FIS. “In anticipation of continued economic weakness and the challenges faced by the financial services industry, we are taking a slightly more cautious view towards revenue growth in 2008. As a result, we have taken measures to reduce costs in order to achieve our previously provided earnings guidance.”
     FIS updated its outlook for 2008 revenue to reflect growth of 13% to 16% (5% to 8% excluding eFunds) over comparable revenue of $4.8 billion in 2007. The company’s previously issued guidance was revenue growth of 14% to 16% (6% to 8% excluding eFunds). Management reiterated its outlook for full year adjusted net earnings of $2.73 to $2.83 per diluted share.

 


 

     Consistent with prior guidance, this updated guidance excludes pre-tax eFunds integration expense of approximately $25 million, up-front costs associated with the spin-off of Lender Processing Services, as well as incremental operating expense for the proposed stand-alone entity. Also excluded is an estimated pre-tax restructuring charge of approximately $15 million to $20 million, which the company expects to record in the second quarter of 2008 in connection with various cost reduction initiatives.
Divestitures and Discontinued Operations
FIS recently completed the sale of two non-strategic businesses, including FIS Credit Services and Certegy Gaming Services’ quasi-credit card cash advance, debit and casino ATM operations. These sales are not expected to impact FIS’ future earnings. The company also established a plan to exit a small operation that provides services to the residential homebuilding market. These businesses have been accounted for as discontinued operations in the first quarter of 2008 and for all periods presented, along with Property Insight which was sold in the third quarter of 2007. Information pertaining to historical revenue and earnings per diluted share is provided in the attachments to this press release.
     FIS’ operating results are presented in accordance with generally accepted accounting principles (“GAAP”) and on an adjusted pro forma basis, which management believes provides more meaningful comparisons between the periods presented. The adjusted results exclude the after-tax impact of merger and acquisition and integration expenses, certain stock compensation charges, debt restructuring and other charges, gains (losses) on the sale of certain non-strategic assets and acquisition related amortization.
Segment Information
     Transaction Processing Services (TPS), which provides core processing and payment technology solutions to financial institutions, generated revenue of $826.8 million in the quarter (including $141.3 million from eFunds) compared to $656.0 million in the prior-year period, an increase of 26.0%. Adjusted EBITDA increased 22.3% to $195.5 million. The adjusted EBITDA margin was 23.6% compared to 24.4% in the first quarter of 2007. The decline in margin was driven by a change in revenue mix, including a decline in higher margin software license sales and professional services revenue compared to the prior-year quarter.
     Excluding eFunds, TPS revenue increased 4.5% to $685.5 million driven by 17.0% growth in International to $161.7 million and 4.9% growth in Integrated Financial Solutions to $297.6 million. Enterprise Solutions revenue declined 3.4% to $226.6 million, as a result of lower software license sales, professional services revenues and lower retail check volume compared to the 2007 quarter.

 


 

     Lender Processing Services (LPS), which provides core processing, information and outsourced solutions to mortgage lenders and servicers, generated revenue of $464.1 million, a 12.6% increase compared to the prior-year quarter, driven by 18.3% growth in Information Services. The strong results are attributable to growth in FIS’ default and appraisal services. Mortgage Processing revenue declined $6.7 million, or 7.4%, to $84.3 million compared to the first quarter of 2007, due to a decrease in software and maintenance revenue, and the previously announced deconversion of a customer portfolio in the fourth quarter of 2007. Lender Processing Services’ adjusted EBITDA increased 12.0% to $148.4 million. The adjusted EBITDA margin of 32.0% was comparable to the prior-year quarter.
     Corporate expense, as adjusted, increased $8.9 million to $35.3 million in the first quarter of 2008, resulting from higher stock option expense and the addition of eFunds. The effective tax rate was 36.6%.
Free Cash Flow
Free cash flow from operations (net cash provided by operating activities minus additions to property and equipment and capitalized software) was $78.7 million. Working capital and other adjustments to cash totaled approximately $26.4 million, driven primarily by continued strong revenue growth in default services.
Net free cash flow, which excludes the after-tax impact of non-operating items, including merger and integration costs, costs associated with the spin-off of Lender Processing Services and other acquisition and investment related activities, was $127.3 million.
Status of Lender Processing Services Spin-Off
     On March 27, 2008, Lender Processing Services, Inc. (LPS) filed a Form 10 with the Securities and Exchange Commission. On April 14, 2008, FIS received a formal private letter ruling from the Internal Revenue Service that the spin-off of Lender Processing Services will be tax-free to FIS as well as to LPS and FIS shareholders. The company expects to complete the distribution to shareholders by mid-2008.
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. The adjusted results exclude the after-tax impact of merger and acquisition and integration expenses, certain stock compensation charges, debt restructuring and other costs, gains (losses) on the sale of certain non-strategic assets and acquisition related amortization. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. A reconciliation of these non-GAAP measures to related GAAP measures is included in the attachments to this release.

 


 

Conference Call and Webcast
     FIS will host a call with investors and analysts to discuss first quarter 2008 results on Thursday, April 24, 2008, beginning at 5:00 p.m. Eastern daylight time. To register for the event and to access supplemental materials, go to the Investor Relations section at www.fidelityinfoservices.com and click on “Events and Multimedia.” Those wishing to participate via the telephone may do so by calling 800-230-1093 (USA) or 612-288-0337 (International). The webcast replay will be available on FIS’ Investor Relations website. The telephone replay will be available through May 1, 2008, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 917569.
To access a PDF version of this release and accompanying financial tables, go to http://www.investor.fidelityinfoservices.com.
About Fidelity National Information Services
     Fidelity National Information Services, Inc. (NYSE:FIS) is a leading provider of core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 41 of the top 50 global banks, including nine of the top 10. Approximately 50 percent of all U.S. residential mortgages are processed using FIS software. FIS is a member of Standard and Poor’s (S&P) 500® Index and has been ranked the number one overall financial technology provider in the world by American Banker and the research firm Financial Insights in the annual FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 9,000 financial institutions in more than 80 countries worldwide. For more information on Fidelity National Information Services, please visit www.fidelityinfoservices.com.
Forward-Looking Statements
     This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: risks associated with the proposed spin-off of

 


 

the Lender Processing Services (LPS) segment by FIS, including the ability of FIS to contribute certain LPS assets and liabilities to the entity to be spun off, the ability of LPS to obtain debt on acceptable terms and exchange that debt with certain holders of the FIS debt, obtaining government approvals, obtaining FIS Board of Directors approval, market conditions for the spin-off, and the risk that the spin-off will not be beneficial once accomplished, including as a result of unexpected dis-synergies resulting from the separation or unfavorable reaction from customers, rating agencies or other constituencies; changes in general economic, business and political conditions, including changes in the financial markets; the effects of our substantial leverage (both at FIS prior to the spin-off and at the separate companies after the spin-off), which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in the banking, retail and financial services industries; failures to adapt our services to changes in technology or in the marketplace; adverse changes in the level of real estate activity, which would adversely affect certain of our businesses; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions; significant competition that our operating subsidiaries face; the possibility that our acquisition of EFD/eFunds may not be accretive to our earnings due to undisclosed liabilities, management or integration issues, loss of customers, the inability to achieve targeted cost savings, or other factors; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.
FIS-e
SOURCE: Fidelity National Information Services, Inc.
CONTACT: Mary Waggoner, Senior Vice President, Investor Relations, 904-854-3282, mary.waggoner@fnis.com; Parag Bhansali, Senior Vice President Investor Relations and Strategy (LPS), 904-854-8640, parag.bhansali@fnis.com.
###

 


 

Exhibit A
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED
(In thousands, except per share data)
                 
    Three months ended March31,  
    2008     2007  
Processing and services revenues
  $ 1,290,952     $ 1,071,440  
 
               
Cost of revenues
    928,555       772,381  
Selling, general and administrative expenses
    163,551       113,082  
Research and development costs
    27,068       27,109  
 
           
 
               
Operating income
    171,778       158,868  
 
               
Other income (expense):
               
Interest income
    3,018       559  
Other income (expense)
    (451 )     665  
Interest expense
    (62,448 )     (72,115 )
 
           
Total other income (expense)
    (59,881 )     (70,891 )
 
           
 
               
Earnings before income taxes, equity earnings and minority interest
    111,897       87,977  
Provision for income taxes
    40,955       32,729  
Equity in (losses) earnings of unconsolidated entities
    (1,957 )     936  
Minority interest (expense) income
    (122 )     176  
 
           
 
               
Net earnings from continuing operations
    68,863       56,360  
(Loss) earnings from discontinued operations, net of tax
    (884 )     3,143  
Gain on disposition of discontinued operations, net of tax
    2,521        
 
           
 
               
Net earnings
  $ 70,500     $ 59,503  
 
           
 
               
Net earnings per share-basic from continuing operations
  $ 0.35     $ 0.29  
Net earnings per share-basic from discontined operations
  $ 0.01     $ 0.02  
 
           
Net earnings per share-basic
  $ 0.36     $ 0.31  
 
           
 
               
Weighted average shares outstanding-basic
    194,542       191,898  
 
           
 
               
Net earnings per share-diluted from continuing operations
  $ 0.35     $ 0.29  
Net earnings per share-diluted from discontinued operations
    0.01       0.01  
 
           
Net earnings per share-diluted
  $ 0.36     $ 0.30  
 
           
 
               
Weighted average shares outstanding-diluted
    196,537       195,807  
 
           

 


 

Exhibit B
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    As of March 31,     As of December 31,  
    2008     2007  
    (unaudited)          
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 327,965     $ 355,278  
Settlement deposits
    42,742       21,162  
Trade receivables, net
    857,881       825,915  
Other receivables
    184,971       206,746  
Settlement receivables
    119,954       116,935  
Receivable from FNF
    11,687       14,907  
Prepaid expenses and other current assets
    174,914       168,454  
Deferred income taxes
    119,983       120,098  
 
           
Total current assets
    1,840,097       1,829,495  
 
           
 
               
Property and equipment, net of accumulated depreciation and amortization
    402,848       392,508  
Goodwill
    5,338,727       5,326,831  
Other intangible assets, net of accumulated amortization
    986,084       1,030,582  
Computer software, net of accumulated amortization
    809,497       775,151  
Deferred costs
    269,946       256,852  
Investment in FNRES
    28,546       30,491  
Long-term notes receivable from FNF
    6,059       6,154  
Other noncurrent assets
    150,426       146,519  
 
           
Total assets
  $ 9,832,230     $ 9,794,583  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 606,250     $ 606,179  
Settlement payables
    161,631       129,799  
Deferred revenues
    241,308       246,222  
Current portion of long-term debt
    270,615       272,014  
 
           
Total current liabilities
    1,279,804       1,254,214  
 
           
 
               
Deferred revenues
    121,468       111,884  
Deferred income taxes
    382,245       394,972  
Long-term debt, excluding current portion
    3,908,702       4,003,383  
Other long-term liabilities
    288,930       234,757  
 
           
Total liabilities
    5,981,149       5,999,210  
 
           
 
               
Minority interest
    11,249       14,194  
 
           
Stockholders’ equity:
               
Preferred stock $0.01 par value
           
Common stock $0.01 par value
    1,990       1,990  
Additional paid in capital
    3,058,585       3,038,203  
Retained earnings
    960,296       899,512  
Accumulated other comprehensive earnings
    28,476       53,389  
Treasury stock
    (209,515 )     (211,915 )
 
           
Total stockholders’ equity
    3,839,832       3,781,179  
 
           
Total liabilities and stockholders’equity
  $ 9,832,230     $ 9,794,583  
 
           

 


 

Exhibit C
FIDELITY NATIONAL INFORMATION SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In thousands)
                 
    Three months ended March 31,  
    2008     2007  
Cash flows from operating activities:
               
Net earnings
  $ 70,500     $ 59,503  
Adjustment to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    124,132       110,612  
Amortization of debt issue costs
    1,424       28,324  
(Gain) on sale of Credit business
    (3,976 )      
Stock-based compensation cost
    26,378       8,489  
Deferred income taxes
    6,823       8,950  
Income tax benefit from exercise of stock options
    (357 )     (10,752 )
Equity in earnings (loss) of unconsolidated entities
    1,957       (936 )
Minority interest
    122       88  
Changes in assets and liabilities, net of effects from acquisitions:
               
Net increase in trade receivables
    (8,094 )     (65,348 )
Net increase in prepaid expenses and other assets
    (12,023 )     (19,813 )
Additions to deferred contract costs
    (21,955 )     (8,095 )
Net increase in deferred revenue
    4,616       1,504  
Net decrease in accounts payable, accrued liabilities and other liabilities
    (21,321 )     (40,096 )
 
           
 
               
Net cash provided by operating activities
    168,226       72,430  
 
           
 
               
Cash flows from investing activities:
               
Additions to property and equipment
    (24,292 )     (27,410 )
Additions to capitalized software
    (65,256 )     (46,706 )
Net proceeds from sale of company assets
    6,000        
Acquisitions, net of cash acquired
    (1,916 )     (21,196 )
 
           
 
               
Net cash used in investing activities
    (85,464 )     (95,312 )
 
           
 
               
Cash flows from financing activities:
               
Borrowings
    1,283,600       2,700,300  
Debt service payments
    (1,381,398 )     (2,689,045 )
Capitalized debt issue costs
    (13 )     (12,573 )
Dividends paid
    (9,716 )     (9,621 )
Income tax benefit from exercise of stock options
    357       10,752  
Stock options exercised
    5,991       33,157  
Treasury stock purchases
    (9,944 )      
 
           
 
               
Net cash (used in) provided by financing activities
    (111,123 )     32,970  
 
           
 
               
Effect of foreign currency exchange rates on cash
    1,048       163  
 
               
Net (decrease) increase in cash and cash equivalents
    (27,313 )     10,251  
 
               
Cash and cash equivalents, at beginning of year
    355,278       211,753  
 
           
 
               
Cash and cash equivalents, at end of year
  $ 327,965     $ 222,004  
 
           

 


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION — UNAUDITED
(In thousands, except per share data)
                                                 
                                            Full Year  
    3/31/2008     12/31/2007     9/30/2007     6/30/2007     3/31/2007     2007  
1. Revenues
                                               
 
                                               
Revenue from Continuing Operations:
                                               
 
                                               
TPS
                                               
Integrated Financial Solutions
  $ 368,585       364,612       308,803       297,117       283,753       1,254,285  
Enterprise Solutions
    280,544       289,492       241,395       245,174       234,560       1,010,621  
International
    178,109       199,811       147,242       143,293       138,185       628,531  
Other
    (439 )     (1,657 )     (1,789 )     (773 )     (548 )     (4,767 )
 
                                   
Total TPS Revenue
    826,799       852,258       695,651       684,811       655,950       2,888,670  
 
                                   
LPS
                                               
Mortgage Processing
    84,268       98,310       88,323       94,163       91,005       371,801  
Information Services
    380,014       352,556       350,377       342,090       321,353       1,366,376  
Other
    (169 )     (457 )     (1,463 )     (51 )           (1,971 )
 
                                   
Total LPS Revenue
    464,113       450,409       437,237       436,202       412,358       1,736,206  
 
                                   
 
                                               
Corporate
    40       341       4,343       4,021       3,132       11,837  
 
                                   
 
                                               
Total Revenue from Continuing Operations
    1,290,952       1,303,008       1,137,231       1,125,034       1,071,440       4,636,713  
 
                                   
 
                                               
Total Revenue from Discontinued Operations
    29,720       27,406       42,667       51,204       52,626       173,903  
 
                                   
 
                                               
Revenue Growth from Prior Year Period (A)
                                               
 
                                               
Revenue from Continuing Operations:
                                               
 
                                               
TPS
                                               
Integrated Financial Solutions
    29.9 %     28.7 %     11.6 %     9.1 %     5.1 %     13.8 %
Enterprise Solutions
    19.6 %     15.9 %     3.1 %     10.8 %     7.6 %     9.5 %
International
    28.9 %     41.7 %     23.9 %     44.3 %     58.4 %     40.8 %
Other
    19.9 %     14.1 %     33.6 %     73.2 %     83.9 %     56.3 %
 
                                   
Total TPS Revenue Growth
    26.0 %     26.8 %     11.0 %     16.1 %     14.7 %     17.4 %
 
                                   
LPS
                                               
Mortgage Information
    -7.4 %     9.6 %     -2.3 %     4.6 %     2.5 %     3.6 %
Information Services
    18.3 %     14.0 %     16.7 %     25.4 %     19.6 %     18.7 %
Other
          -104.6 %     -112.7 %     -100.4 %     -100.0 %     -104.4 %
 
                                   
Total LPS Revenue Growth
    12.6 %     10.1 %     8.7 %     16.6 %     11.8 %     11.7 %
 
                                   
 
                                               
Corporate
    -98.7 %     120.9 %     364.8 %     47.3 %     94.5 %     1007.3 %
 
                                   
 
                                               
Total Revenue from Continuing Operations
    20.5 %     20.7 %     10.7 %     16.4 %     13.7 %     15.4 %
 
                                   
 
                                               
2. TPS Revenue from Continuing Operations, Excluding eFunds
                                               
TPS
                                               
Integrated Financial Solutions
  $ 297,566       297,912       296,142       297,117       283,753       1,174,924  
Enterprise Solutions
    226,605       244,121       231,613       245,174       234,560       955,468  
International
    161,742       170,782       142,057       143,293       138,185       594,317  
Other
    (423 )     (515 )     (789 )     (773 )     (548 )     (2,625 )
 
                                   
Total TPS Revenue, excluding eFunds
  $ 685,489       712,300       669,023       684,811       655,950       2,722,083  
 
                                   
 
                                               
Total Revenue from Continuing Operations, excluding eFunds
  $ 1,149,642       1,163,050       1,110,603       1,125,034       1,071,440       4,470,126  
 
                                   
 
                                               
TPS Revenue Growth from Prior Year Period, excluding eFunds (A)
                                               
 
                                               
TPS
                                               
Integrated Financial Solutions
    4.9 %     5.2 %     7.0 %     9.1 %     5.1 %     6.6 %
Enterprise Solutions
    -3.4 %     -2.3 %     -1.0 %     10.8 %     7.6 %     3.5 %
International
    17.0 %     21.2 %     19.5 %     44.3 %     58.4 %     33.2 %
Other
    22.7 %     73.3 %     70.7 %     73.2 %     83.9 %     75.9 %
 
                                   
Total TPS Revenue Growth, excluding Efunds
    4.5 %     6.0 %     6.7 %     16.1 %     14.7 %     10.6 %
 
                                   
 
                                               
Total Revenue Growth, excluding Efunds
    7.3 %     7.7 %     8.1 %     16.4 %     13.7 %     11.3 %
 
                                   
 
                                               
3. Depreciation and Amortization
                                               
 
                                               
Depreciation and Amortization
  $ 68,711       79,171       83,653       68,027       62,563       293,414  
Purchase Price Amortization
    46,560       49,385       40,599       37,897       40,780       168,661  
Other Amortization
    8,861       9,347       10,187       7,968       7,269       34,771  
 
                                   
Total Depreciation and Amortization
  $ 124,132       137,903       134,439       113,892       110,612       496,846  
 
                                   
 
                                               
Depreciation and Amortization Relating to Non-recurring Adjustments
  $             13,531       393       683       14,608  
Depreciation and Amortization from Discontinued Operations
    1,394       1,322       1,558       1,714       1,716       6,310  
 
                                   
Total Depreciation and Amortization from Continuing Operations, as adjusted
  $ 122,738       136,581       119,350       111,785       108,213       475,928  
 
                                   


 

Exhibit D
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL FINANCIAL INFORMATION — UNAUDITED
(In thousands, except per share data)
                                                 
                                            Full Year  
    3/31/2008     12/31/2007     9/30/2007     6/30/2007     3/31/2007     2007  
4. Capital Expenditures
                                               
 
                                               
TPS
  $ 72,506       71,664       57,976       50,279       43,482       223,401  
LPS
    16,574       23,706       34,680       22,039       25,426       105,851  
Corporate
    (522 )     2,341       (3,057 )     7,196       4,183       10,663  
 
                                   
Total Capital Expenditures — Continuing Operations
    88,558       97,711       89,599       79,514       73,091       339,915  
 
                                               
Total Capital Expenditures — Discontinued Operations
    990       917       1,062       380       1,025       3,384  
 
                                   
 
                                               
Total Capital Expenditures
  $ 89,548       98,628       90,661       79,894       74,116       343,299  
 
                                   
 
                                               
5. Long-term Debt as of Period End and Interest Expense and Rates
                                               
 
    2008 Q1       2007 Q4       2007 Q3       2007 Q2       2007 Q1          
Term Note A
  $ 2,034,375       2,047,500       2,060,625       2,073,750       2,086,875          
Term Note B
    1,592,000       1,596,000       1,600,000                      
Revolver
    330,000       308,000       332,200       430,500       600,300          
eFunds Notes
          98,533       98,226                      
Certegy Notes
    198,837       198,221       197,638       197,040       196,474          
Other Long-term Debt
    24,105       27,143       32,187       151,134       145,631          
 
                                   
Total Long-term Debt
  $ 4,179,317       4,275,397       4,320,876       2,852,424       3,029,280          
 
                                     
 
                                               
Total Interest Expense
  $ 62,450       68,864       44,370       42,991       72,115          
Less Debt Restructuring Charge
                            (27,164 )        
 
                                   
Adjusted Interest Expense
  $ 62,450       68,864       44,370       42,991       44,951          
 
                                     
 
                                               
Average Interest Rate
    5.8 %     6.4 %     6.3 %     6.1 %     6.2 %        
 
                                     
 
                                               
6. Stock Compensation Expense
                                               
 
                                               
Stock Compensation Expense, Excluding Acceleration Charges
  $ 12,184       10,170       9,287       8,751       8,489       36,697  
Stock Acceleration Expense
    14,194       1,653       603                   2,256  
 
                                   
Total Stock Compensation Expense
  $ 26,378       11,823       9,890       8,751       8,489       38,953  
 
                                   
 
Notes:
(A)   Growth calculation for 3/31/2007 growth includes Certegy revenue for January 2006.


 

Exhibit E
FIDELITY NATIONAL INFORMATION SERVICES, INC.
NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In thousands, except per share data)
                                                 
                                            Full Year  
    3/31/2008     12/31/2007     9/30/2007     6/30/2007     3/31/2007     2007  
1. EBIT and EBITDA — Consolidated
                                               
 
                                               
Revenue from Continuing Operations
  $ 1,290,952       1,303,008       1,137,231       1,125,034       1,071,440       4,636,713  
 
                                               
Operating Income
  $ 171,778       229,550       177,831       179,368       158,868       745,617  
M&A, Restructuring and Integration Costs
    14,970       1,653       19,455       2,195       4,961       28,264  
LPS Spin Costs
    2,858       500                         500  
 
                                   
EBIT, as adjusted
  $ 189,606       231,703       197,286       181,563       163,829       774,381  
 
                                   
 
                                               
Depr and Amort from Cont Ops, as adjusted
    122,738       136,581       119,350       111,785       108,213       475,928  
 
                                   
EBITDA , as adjusted
  $ 312,344       368,284       316,636       293,348       272,042       1,250,309  
 
                                   
 
                                               
EBIT Margin, as adjusted
    14.7 %     17.8 %     17.3 %     16.1 %     15.3 %     16.7 %
 
                                   
 
                                               
EBITDA Margin, as adjusted
    24.2 %     28.3 %     27.8 %     26.1 %     25.4 %     27.0 %
 
                                   
 
                                               
2. EBITDA from Discontinued Operations
                                               
 
                                               
Total EBITDA from Discontinued Operations
  $ (3,128 )     1,029       5,646       6,279       7,007       19,961  
 
                                   
 
                                               
3. EBITDA — TPS
                                               
 
                                               
Revenue from Continuing Operations
  $ 826,799       852,258       695,651       684,811       655,950       2,888,670  
 
                                               
Operating Income
  $ 107,879       140,313       86,092       99,172       90,059       415,636  
Depreciation
    43,124       56,626       56,447       37,859       33,751       184,683  
Purchase Price Amortization
    36,086       35,949       29,104       27,027       29,198       121,278  
Other Amortization
    8,386       8,851       9,585       7,516       6,869       32,821  
 
                                   
EBITDA , before other items
  $ 195,475       241,739       181,228       171,574       159,877       754,418  
 
                                   
 
                                               
M&A, Restructuring and Integration Costs
                4,614                   4,614  
EBITDA, excluding other items
  $ 195,475       241,739       185,842       171,574       159,877       759,032  
 
                                   
 
                                               
EBITDA Margin, as adjusted
    23.6 %     28.4 %     26.7 %     25.1 %     24.4 %     26.3 %
 
                                   
 
                                               
4. EBITDA — LPS
                                               
 
                                               
Revenue from Continuing Operations
  $ 464,113       450,409       437,237       436,202       412,358       1,736,206  
 
                                               
Operating Income
  $ 116,350       122,527       116,392       107,846       95,165       441,930  
Depreciation
    20,794       20,455       20,887       22,281       21,544       85,167  
Purchase Price Amortization
    10,107       10,605       10,538       10,345       11,046       42,534  
Other Amortization
    475       496       602       452       400       1,950  
 
                                   
EBITDA , before other items
  $ 147,726       154,083       148,419       140,924       128,155       571,581  
 
                                   
 
                                               
M&A, Restructuring and Integration Costs
    630             707       1,802       4,278       6,787  
 
                                   
EBITDA, excluding other items
  $ 148,356       154,083       149,126       142,726       132,433       578,368  
 
                                   
 
                                               
EBITDA Margin, as adjusted
    32.0 %     34.2 %     34.1 %     32.7 %     32.1 %     33.3 %
 
                                   
 
                                               
5. Net Earnings — Reconciliation
                                               
 
                                               
Net Earnings
  $ 70,500       108,411       245,304       148,004       59,503       561,222  
M&A, Restructuring and Integration Costs, net of tax
    9,491       (6,560 )     10,505       1,385       3,116       8,446  
LPS Spin Costs, net of tax
    1,812       315                         315  
Covansys Gain, net of tax
                (114,939 )     (57,988 )           (172,927 )
Gain on Property Insight, net of tax
                (42,124 )                 (42,124 )
Debt Restructure Charge, net of tax
                            17,059       17,059  
 
                                   
Net Earnings, excluding other items
    81,803       102,166       98,746       91,401       79,678       371,991  
 
                                   
 
                                               
After-tax Purchase Price Amortization
    29,518       31,112       25,578       23,901       25,612       106,203  
 
                                   
 
                                               
Adjusted Net Earnings
  $ 111,321       133,278       124,324       115,302       105,290       478,194  
 
                                   
 
                                               
Net Earnings Per Share, excluding other items
  $ 0.42       0.52       0.50       0.46       0.41       1.89  
 
                                   
 
                                               
Adjusted Net Earnings Per Share
  $ 0.57       0.68       0.63       0.59       0.54       2.43  
 
                                   
 
                                               
Diluted Weighted Average Shares
    196,537       196,741       196,649       196,977       195,807       196,546  
 
                                   


 

Exhibit F
FIDELITY NATIONAL INFORMATION SERVICES, INC.
RECONCILIATION OF GAAP TO NON-GAAP CASHFLOW MEASURES — UNAUDITED
(In thousands)
                                                                         
    3/31/2007     6/30/2007     9/30/2007  
    GAAP     Adj     Non-GAAP     GAAP     Adj     Non-GAAP     GAAP     Adj     Non-GAAP  
Cash flows from operating activities:
                                                                       
Net earnings (1)
  $ 59,503       3,115       62,618     $ 148,004       1,383       149,387     $ 245,304       109,728       355,032  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                                                                       
Non-cash adjustments
    155,527               155,527       25,152               25,152       (182,304 )             (182,304 )
Working capital adjustments (2)
    (142,600 )     12,700       (129,900 )     (2,499 )     18,100       15,601       (49,681 )     9,500       (40,181 )
             
Net cash provided by operating activities
    72,430       15,815       88,245       170,657       19,483       190,140       13,319       119,228       132,547  
             
 
                                                                       
Capital expenditures included in investing activities:
                                                                       
Additions to property and equipment
    (27,410 )             (27,410 )     (32,792 )             (32,792 )     (25,184 )             (25,184 )
Additions to capitalized software
    (46,706 )             (46,706 )     (47,102 )             (47,102 )     (65,477 )             (65,477 )
             
Net capital expenditures
    (74,116 )           (74,116 )     (79,894 )           (79,894 )     (90,661 )           (90,661 )
             
Net free cash flow
  $ (1,686 )     15,815       14,129     $ 90,763       19,483       110,246     $ (77,342 )     119,228       41,886  
             
 
                                                                       
Notes:
                                                                       
(1) Adjustments to Net Earnings
                                                                       
Eliminate after-tax impact of non-recurring integration costs
            3,115                       1,383                       3,168          
 
                                                                       
Eliminate payment of tax liabilities associated with disposition of non-strategic investments
                                                        106,560          
 
                                                                 
 
            3,115                       1,383                       109,728          
 
                                                                 
 
                                                                       
(2) Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities.
                                                                       
                                                                         
    12/31/2007     Full Year - 2007     3/31/2008  
    GAAP     Adj     Non-GAAP     GAAP     Adj     Non-GAAP     GAAP     Adj     Non-GAAP  
Cash flows from operating activities:
                                                                       
Net earnings (1)
  $ 108,411       38,990       147,401     $ 561,222       153,216       714,438     $ 70,500       2,304       72,804  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                                                                       
Non-cash adjustments
    181,495               181,495       179,870             179,870       156,504               156,504  
Working capital adjustments (2)
    (82,760 )     8,870       (73,890 )     (277,540 )     49,170       (228,370 )     (58,778 )     46,342       (12,436 )
             
Net cash provided by operating activities
    207,146       47,860       255,006       463,552       202,386       665,938       168,226       48,646       216,872  
             
 
                                                                       
Capital expenditures included in investing activities:
                                                                       
Additions to property and equipment
    (28,446 )             (28,446 )     (113,832 )           (113,832 )     (24,292 )             (24,292 )
Additions to capitalized software
    (70,182 )             (70,182 )     (229,467 )           (229,467 )     (65,256 )             (65,256 )
             
Net capital expenditures
    (98,628 )           (98,628 )     (343,299 )           (343,299 )     (89,548 )           (89,548 )
             
Net free cash flow
  $ 108,518       47,860       156,378     $ 120,253       202,386       322,639     $ 78,678       48,646       127,324  
             
Notes:
                                                                       
(1) Adjustments to Net Earnings
                                                                       
Eliminate after-tax impact of non-recurring integration costs
                                  7,666                       2,304          
 
                                                                       
Eliminate payment of tax liabilities associated with disposition of non-strategic investments
            38,990                       145,550                                
 
                                                                 
 
            38,990                       153,216                       2,304          
 
                                                                 
 
                                                                       
(2) Adjustments to working capital reflect elimination of settlement of various acquisition related liabilities.
                                                                       


 

Appendix G
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SEGMENT INFORMATION FROM CONTINUING OPERATIONS — UNAUDITED
(In thousands)
3/31/2008
                                 
    Transaction   Lender   Corporate    
    Processing Services   Processing Services   and Other   Total
Processing and services revenue
  $ 826,799       464,113       40       1,290,952  
Cost of revenues
    634,264       294,291             928,555  
     
Gross profit
    192,535       169,822       40       362,397  
Selling, general and admin costs
    65,176       45,884       52,491       163,551  
Research development costs
    19,480       7,588             27,068  
     
Operating income
    107,879       116,350       (52,451 )     171,778  
 
Depreciation and amortization
    87,596       31,376       3,766       122,738  
     
EBITDA
  195,475       147,726       (48,685 )     294,516  
     
Merger and acquisition costs
          630       14,340       14,970  
LPS spin costs
                2,858       2,858  
     
EBITDA, excluding selected items
  195,475       148,356       (31,487 )     312,344  
     
3/31/2007
                                 
    Transaction   Lender   Corporate    
    Processing Services   Processing Services   and Other   Total
Processing and services revenue
  655,950       412,358       3,132       1,071,440  
Cost of revenues
    507,487       264,894             772,381  
     
Gross profit
    148,463       147,464       3,132       299,059  
Selling, general and admin costs
    40,886       42,708       29,488       113,082  
Research development costs
    17,518       9,591             27,109  
     
Operating income
    90,059       95,165       (26,356 )     158,868  
 
Depreciation and amortization
    69,818       32,990       6,088       108,896  
     
EBITDA
  $ 159,877       128,155       (20,268 )     267,764  
     
Merger and acquisition costs
          4,278             4,278  
     
EBITDA, excluding selected items
  159,877       132,433       (20,268 )     272,042