- Third quarter GAAP Diluted EPS of $0.45 increased 7% over the
prior-year period
- Adjusted EPS of $1.40 increased 49% over the prior-year
period
- Revenue increased 3% on a GAAP basis and 4% on an adjusted
basis to $2.6 billion
- Repurchased $500 million of shares in the third quarter
- Raises low-end of revenue and adjusted EBITDA full-year outlook
and raises adjusted EPS full-year outlook
FIS® (NYSE:FIS), a global leader in financial technology, today
reported its third quarter 2024 results.
“We delivered another strong quarter of financial
outperformance, and are once again raising our full-year outlook,”
said FIS CEO and President Stephanie Ferris. “The strength of the
partnerships and new business signings this quarter underpin our
continued execution against our strategy to unlock financial
technology to the world across the money lifecycle.”
Financial Reporting Considerations for
Completed Worldpay Sale
On July 6, 2023, the Company announced an acceleration of its
previously announced separation plan to create two highly focused
global companies with greater strategic flexibility. FIS signed a
definitive agreement to sell a 55% stake in its Worldpay Merchant
Solutions business to private equity funds managed by GTCR (the
"Worldpay Sale"). The Worldpay Sale was completed on January 31,
2024.
Unless otherwise noted, all results are presented on a
continuing operations basis and exclude the results of the Worldpay
Merchant Solutions business that was classified as discontinued
operations as of the third quarter of 2023.
Following the close of the Worldpay Sale on January 31, 2024,
FIS retains a non-controlling 45% ownership interest in a new
standalone joint venture, Worldpay Holdco, LLC ("Worldpay"), and
records its proportionate share of Worldpay's earnings (loss) in
the "Equity method investment earnings (loss), net of tax" ("EMI")
line of the income statement.
Capital Allocation
Update
The Company remains committed to shareholder returns and is
reiterating its goal to repurchase approximately $4.0 billion of
shares in 2024. The Company repurchased $500 million of shares in
the third quarter, and has repurchased $3.0 billion of shares
year-to-date in 2024. Additionally, the Company continues to target
a dividend payout ratio of 35% of adjusted net earnings, excluding
EMI.
Third Quarter 2024 Financial
Results
On a GAAP basis, revenue increased 3% as compared to the
prior-year period to approximately $2.6 billion. GAAP net earnings
attributable to common stockholders from continuing operations were
$246 million or $0.45 per diluted share.
On an adjusted basis, revenue increased 4% as compared to the
prior-year period primarily driven by 6% adjusted recurring revenue
growth. Adjusted EBITDA was approximately $1.1 billion, and
Adjusted EBITDA margin contracted by 140 basis points (bps) over
the prior-year period to 41.3%, reflecting a negative impact from a
difficult grow over in corporate expenses. Adjusted net earnings
from continuing operations were $765 million, and adjusted EPS
increased by 49% as compared to the prior-year period to $1.40 per
diluted share.
($ millions, except per share data,
unaudited)
Three Months Ended September
30,
%
Adjusted
Continuing
Operations
2024
20231
Change
Growth
Banking Solutions Revenue
1,779
1,732
3%
3%
Capital Market Solutions Revenue
730
677
8%
7%
Operating Segment Total Revenue
$
2,509
$
2,409
4%
4%
Corporate and Other Revenue
61
83
(27)%
-
Consolidated FIS Revenue
$
2,570
$
2,492
3%
-
Adjusted EBITDA
$
1,060
$
1,065
—%
Adjusted EBITDA Margin
41.3
%
42.7
%
(140) bps
Net Earnings (Loss) (GAAP)
$
246
$
248
(1)%
Diluted Earnings (Loss) Per Common Share
(GAAP)
$
0.45
$
0.42
7%
Adjusted Net Earnings
$
765
$
557
37%
Adjusted EPS
$
1.40
$
0.94
49%
1Reflects revised prior period financials.
See "Exhibit J" below for additional information regarding the
immaterial corrections to results of prior periods.
Segment Information
- Banking Solutions: Third quarter revenue increased 3% on
a GAAP basis and 3% on an adjusted basis as compared to the
prior-year period to $1.8 billion, including adjusted recurring
revenue growth of 6%. Adjusted EBITDA margin expanded by 10 basis
points as compared to the prior-year period to 45.2%, primarily
driven by the Company's cost savings initiatives and operating
leverage.
- Capital Market Solutions: Third quarter revenue
increased by 8% on a GAAP basis and 7% on an adjusted basis as
compared to the prior-year period to $730 million reflecting
adjusted recurring revenue growth of 6%. Adjusted EBITDA margin
expanded by 90 basis points over the prior-year period to 49.9%,
primarily due to operating leverage and an increase in high-margin
license revenue.
- Corporate and Other: Third quarter revenue
decreased by 27% as compared to the prior-year period to $61
million. Adjusted EBITDA loss was $108 million, including $119
million of corporate expenses.
Balance Sheet and Cash
Flows
As of September 30, 2024, debt outstanding totaled $10.9
billion. Third quarter net cash provided by operating activities
was $641 million, and adjusted free cash flow was $530 million. In
the third quarter, the Company returned approximately $700 million
of capital to shareholders through $500 million of share
repurchases and $199 million of dividends paid.
Full-Year 2024 Outlook
For the full-year, the Company is raising the low-end of its
outlook for both revenue and adjusted EBITDA and is raising its
outlook for adjusted EPS by approximately 2% as compared to the
prior outlook to $5.15 - $5.20. The adjusted EPS outlook reflects
11 months of EMI contribution for the full year.
($ millions, except share data)
FY 2024
Revenue
$10,140 - $10,170
Adjusted EBITDA (Non-GAAP)1
$4,125 - $4,140
Adjusted EPS (Non-GAAP)1
$5.15 - $5.20
1The Company does not provide a
reconciliation for non-GAAP estimates on a forward-looking basis
where it is unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort.
Webcast
FIS will host a live webcast of its earnings conference call
with the investment community beginning at 8:30 a.m. (EST) on
Monday, November 4, 2024. To access the webcast, go to the Investor
Relations section of FIS’ homepage, www.fisglobal.com. A replay
will be available after the conclusion of the live webcast.
About FIS
FIS is a financial technology company providing solutions to
financial institutions, businesses and developers. We unlock
financial technology to the world across the money lifecycle
underpinning the world's financial system. Our people are dedicated
to advancing the way the world pays, banks and invests, by helping
our clients to confidently run, grow and protect their businesses.
Our expertise comes from decades of experience helping financial
institutions and businesses of all sizes adapt to meet the needs of
their customers by harnessing where reliability meets innovation in
financial technology. Headquartered in Jacksonville, Florida, FIS
is a member of the Fortune 500® and the Standard & Poor’s 500®
Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn,
Facebook and X.
FIS Use of Non-GAAP Financial
Information
Generally Accepted Accounting Principles (GAAP) is the term used
to refer to the standard framework of guidelines for financial
accounting in the United States. GAAP includes the standards,
conventions, and rules accountants follow in recording and
summarizing transactions and in the preparation of financial
statements. In addition to reporting financial results in
accordance with GAAP, we have provided certain non-GAAP financial
measures.
These non-GAAP measures include constant currency revenue,
adjusted revenue growth, adjusted EBITDA, adjusted EBITDA margin,
adjusted net earnings, adjusted EPS, and adjusted free cash flow.
These non-GAAP measures may be used in this release and/or in the
attached supplemental financial information.
We believe these non-GAAP measures help investors better
understand the underlying fundamentals of our business. As further
described below, the non-GAAP revenue and earnings measures
presented eliminate items management believes are not indicative of
FIS’ operating performance. The constant currency revenue and
adjusted revenue growth measures adjust for the effects of exchange
rate fluctuations and exclude discontinued operations, while
adjusted revenue growth also excludes revenue from Corporate and
Other, giving investors further insight into our performance.
Finally, adjusted free cash flow provides further information about
the ability of our business to generate cash. For these reasons,
management also uses these non-GAAP measures in its assessment and
management of FIS’ performance.
Constant currency revenue represents reported segment
revenue excluding the impact of fluctuations in foreign currency
exchange rates in the current period.
Adjusted revenue growth reflects the percentage change in
constant currency revenue for the current period as compared to the
prior period. Constant currency revenue is calculated by applying
prior-year period foreign currency exchange rates to current-period
revenue. When referring to adjusted revenue growth, revenue from
our Corporate and Other segment is excluded.
Adjusted EBITDA reflects net earnings (loss) before
interest, other income (expense), taxes, equity method investment
earnings (loss), and depreciation and amortization, and excludes
certain costs that do not constitute normal, recurring, cash
operating expenses necessary to operate our business. This measure
is reported to the chief operating decision maker for purposes of
making decisions about allocating resources to the segments and
assessing their performance. For this reason, adjusted EBITDA, as
it relates to our segments, is presented in conformity with
Accounting Standards Codification 280, Segment Reporting, and is
excluded from the definition of non-GAAP financial measures under
the Securities and Exchange Commission's Regulation G and Item
10(e) of Regulation S-K.
Adjusted EBITDA margin reflects adjusted EBITDA, as
defined above, divided by revenue.
Adjusted net earnings excludes the effect of purchase
price amortization, as well as certain costs that do not constitute
normal, recurring, cash operating expenses necessary to operate our
business. For purposes of calculating Adjusted net earnings, our
equity method investment earnings (loss) ("EMI") from Worldpay is
also adjusted to exclude certain costs and other transactions in a
similar manner.
Adjusted EPS reflects adjusted net earnings, as defined
above, divided by weighted average diluted shares outstanding.
Adjusted free cash flow reflects net cash provided by
operating activities, adjusted for the net change in settlement
assets and obligations and excluding certain transactions that are
closely associated with non-operating activities or are otherwise
non-operational in nature and not indicative of future operating
cash flows, less capital expenditures. Adjusted free cash flow does
not represent our residual cash flow available for discretionary
expenditures since we have mandatory debt service requirements and
other non-discretionary expenditures that are not deducted from the
measure. Adjusted free cash flow as presented in this earnings
release excludes cash flow from discontinued operations, which our
management cannot freely access following the Worldpay
separation.
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 measures. Further, FIS’
non-GAAP measures may be calculated differently from similarly
titled measures of other companies. Reconciliations of these
non-GAAP measures to related GAAP measures, including footnotes
describing the adjustments, are provided in the attached schedules
and in the Investor Relations section of the FIS website,
www.fisglobal.com.
Forward-Looking
Statements
This earnings release and today’s webcast contain
“forward-looking statements” within the meaning of the U.S. federal
securities laws. Statements that are not historical facts, as well
as other statements about our expectations, beliefs, intentions, or
strategies regarding the future, or other characterizations of
future events or circumstances, are forward-looking statements.
Forward-looking statements include statements about anticipated
financial outcomes, including any earnings outlook or projections,
projected revenue or expense synergies or dis-synergies, business
and market conditions, outlook, foreign currency exchange rates,
deleveraging plans, expected dividends and share repurchases of the
Company, the Company’s sales pipeline and anticipated profitability
and growth, plans, strategies and objectives for future operations,
strategic value creation, risk profile and investment strategies,
any statements regarding future economic conditions or performance
and any statements with respect to the future impacts of the
Worldpay Sale or any agreements or arrangements entered into in
connection with such transaction, the expected financial and
operational results of the Company, and expectations regarding the
Company’s business or organization after the separation of the
Worldpay Merchant Solutions business. These statements may be
identified by words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “will,” “should,” “could,” “would,” “project,”
“continue,” “likely,” and similar expressions, and include
statements reflecting future results, statements of outlook and
various accruals and estimates. These statements relate to future
events and our future results and involve a number of risks and
uncertainties. Forward-looking statements are based on management’s
beliefs as well as assumptions made by, and information currently
available to, management.
Actual results, performance or achievement could differ
materially from these forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject
include the following, without limitation:
- changes in general economic, business and political conditions,
including those resulting from COVID-19 or other pandemics, a
recession, intensified or expanded international hostilities, acts
of terrorism, increased rates of inflation or interest, changes in
either or both the United States and international lending, capital
and financial markets or currency fluctuations;
- the risk that acquired businesses will not be integrated
successfully or that the integration will be more costly or more
time-consuming and complex than anticipated;
- the risk that cost savings and synergies anticipated to be
realized from acquisitions may not be fully realized or may take
longer to realize than expected or that costs may be greater than
anticipated;
- the risks of doing business internationally;
- the effect of legislative initiatives or proposals, statutory
changes, governmental or applicable regulations and/or changes in
industry requirements, including privacy and cybersecurity laws and
regulations;
- the risks of reduction in revenue from the elimination of
existing and potential customers due to consolidation in, or new
laws or regulations affecting, the banking, retail and financial
services industries or due to financial failures or other setbacks
suffered by firms in those industries;
- changes in the growth rates of the markets for our
solutions;
- the amount, declaration and payment of future dividends is at
the discretion of our Board of Directors and depends on, among
other things, our investment opportunities, results of operations,
financial condition, cash requirements, future prospects, and other
factors that may be considered relevant by our Board of Directors,
including legal and contractual restrictions;
- the amount and timing of any future share repurchases is
subject to, among other things, our share price, our other
investment opportunities and cash requirements, our results of
operations and financial condition, our future prospects and other
factors that may be considered relevant by our Board of Directors
and management;
- failures to adapt our solutions to changes in technology or in
the marketplace;
- internal or external security or privacy breaches of our
systems, including those relating to unauthorized access, theft,
corruption or loss of personal information and computer viruses and
other malware affecting our software or platforms, and the
reactions of customers, card associations, government regulators
and others to any such events;
- the risk that implementation of software, including software
updates, for customers or at customer locations or employee error
in monitoring our software and platforms may result in the
corruption or loss of data or customer information, interruption of
business operations, outages, exposure to liability claims or loss
of customers;
- the risk that partners and third parties may fail to satisfy
their legal obligations to us;
- risks associated with managing pension cost, cybersecurity
issues, IT outages and data privacy;
- the reaction of current and potential customers to
communications from us or regulators regarding information
security, risk management, internal audit or other matters;
- risks associated with the expected benefits and costs of the
separation of the Worldpay Merchant Solutions business, including
the risk that the expected benefits of the transaction or any
contingent purchase price will not be realized within the expected
timeframe, in full or at all, or that dis-synergies may be greater
than anticipated;
- the risk that the costs of restructuring transactions and other
costs incurred in connection with the separation of the Worldpay
business will exceed our estimates or otherwise adversely affect
our business or operations;
- the impact of the separation of Worldpay on our businesses,
including the impact on relationships with customers, governmental
authorities, suppliers, employees and other business
counterparties;
- the risk that the earnings from our minority stake in the
Worldpay business will be less than we anticipate;
- competitive pressures on pricing related to the decreasing
number of community banks in the U.S., the development of new
disruptive technologies competing with one or more of our
solutions, increasing presence of international competitors in the
U.S. market and the entry into the market by global banks and
global companies with respect to certain competitive solutions,
each of which may have the impact of unbundling individual
solutions from a comprehensive suite of solutions we provide to
many of our customers;
- the failure to innovate in order to keep up with new emerging
technologies, which could impact our solutions and our ability to
attract new, or retain existing, customers;
- an operational or natural disaster at one of our major
operations centers;
- failure to comply with applicable requirements of payment
networks or changes in those requirements;
- fraud by bad actors; and
- other risks detailed elsewhere in the “Risk Factors” and other
sections of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2023, and in our other filings with the
Securities and Exchange Commission.
Other unknown or unpredictable factors also could have a
material adverse effect on our business, financial condition,
results of operations and prospects. Accordingly, readers should
not place undue reliance on these forward-looking statements. These
forward-looking statements are inherently subject to uncertainties,
risks and changes in circumstances that are difficult to predict.
Except as required by applicable law or regulation, we do not
undertake (and expressly disclaim) any obligation and do not intend
to publicly update or review any of these forward-looking
statements, whether as a result of new information, future events
or otherwise.
Fidelity National Information
Services, Inc.
Earnings Release Supplemental
Financial Information
November 4, 2024
Exhibit A
Condensed Consolidated Statements of
Earnings (Loss) - Unaudited for the three and nine months ended
September 30, 2024 and 2023
Exhibit B
Condensed Consolidated Balance Sheets -
Unaudited as of September 30, 2024, and December 31, 2023
Exhibit C
Condensed Consolidated Statements of Cash
Flows - Unaudited for the nine months ended September 30, 2024 and
2023
Exhibit D
Supplemental Non-GAAP Adjusted Revenue
Growth - Unaudited for the three and nine months ended September
30, 2024 and 2023
Exhibit E
Supplemental Disaggregation of Revenue -
Recast and Unaudited for the three and nine months ended September
30, 2024 and 2023
Exhibit F
Supplemental Non-GAAP Adjusted Free Cash
Flow Measures - Unaudited for the three and nine months ended
September 30, 2024 and 2023
Exhibit G
Supplemental GAAP to Non-GAAP
Reconciliations - Unaudited for the three and nine months ended
September 30, 2024 and 2023
Exhibit H
Supplemental Financial Information -
Unaudited for the three and nine months ended September 30, 2024
and 2023
Exhibit I
Supplemental Financial Information of
Worldpay Holdco, LLC - Unaudited for the three and eight months
ended September 30, 2024
Exhibit J
Revision of Previously Issued Consolidated
Financial Statements and Supplemental Non-GAAP Financial
Information - Unaudited
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (LOSS)— UNAUDITED
(In millions, except per share
amounts)
Exhibit A
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Revenue
$
2,570
$
2,492
$
7,528
$
7,318
Cost of revenue
1,593
1,531
4,700
4,632
Gross profit
977
961
2,828
2,686
Selling, general, and administrative
expenses
521
484
1,703
1,557
Asset impairments
2
7
20
8
Other operating (income) expense, net -
related party
(36
)
—
(110
)
—
Operating income (loss)
490
470
1,215
1,121
Other income (expense):
Interest expense, net
(64
)
(162
)
(184
)
(464
)
Other income (expense), net
(38
)
11
(222
)
(74
)
Total other income (expense), net
(102
)
(151
)
(406
)
(538
)
Earnings (loss) before income taxes and
equity method investment earnings (loss)
388
319
809
583
Provision (benefit) for income taxes
108
70
215
140
Equity method investment earnings (loss),
net of tax
(33
)
—
(110
)
—
Net earnings (loss) from continuing
operations
247
249
484
443
Earnings (loss) from discontinued
operations, net of tax
(22
)
(708
)
687
(7,342
)
Net earnings (loss)
225
(459
)
1,171
(6,899
)
Net (earnings) loss attributable to
noncontrolling interest from continuing operations
(1
)
(1
)
(2
)
(2
)
Net (earnings) loss attributable to
noncontrolling interest from discontinued operations
—
(1
)
—
(3
)
Net earnings (loss) attributable to FIS
common stockholders
$
224
$
(461
)
$
1,169
$
(6,904
)
Net earnings (loss) attributable to
FIS:
Continuing operations
$
246
$
248
$
482
$
441
Discontinued operations
(22
)
(709
)
687
(7,345
)
Total
$
224
$
(461
)
$
1,169
$
(6,904
)
Basic earnings (loss) per common
share
attributable to FIS:
Continuing operations
$
0.45
$
0.42
$
0.86
$
0.74
Discontinued operations
(0.04
)
(1.20
)
1.23
(12.41
)
Total
$
0.41
$
(0.78
)
$
2.09
$
(11.66
)
Diluted earnings (loss) per common
share attributable to FIS:
Continuing operations
$
0.45
$
0.42
$
0.86
$
0.74
Discontinued operations
(0.04
)
(1.20
)
1.22
(12.41
)
Total
$
0.41
$
(0.78
)
$
2.08
$
(11.66
)
Weighted average common shares
outstanding:
Basic
545
592
558
592
Diluted
548
592
561
592
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS — UNAUDITED
(In millions, except per share
amounts)
Exhibit B
September 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,323
$
440
Settlement assets
736
617
Trade receivables, net
1,841
1,738
Other receivables
147
109
Receivable from related party
88
—
Prepaid expenses and other current
assets
621
641
Current assets held for sale
1,314
10,111
Total current assets
6,070
13,656
Property and equipment, net
620
695
Goodwill
17,050
16,971
Intangible assets, net
1,400
1,823
Software, net
2,229
2,115
Equity method investment
4,133
—
Other noncurrent assets
1,644
1,528
Deferred contract costs, net
1,184
1,076
Noncurrent assets held for sale
17
17,109
Total assets
$
34,347
$
54,973
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable, accrued and other
liabilities
$
1,861
$
1,773
Settlement payables
750
635
Deferred revenue
839
829
Short-term borrowings
112
4,760
Current portion of long-term debt
317
1,348
Current liabilities held for sale
1,263
8,884
Total current liabilities
5,142
18,229
Long-term debt, excluding current
portion
10,491
12,970
Deferred income taxes
717
2,179
Other noncurrent liabilities
1,426
1,446
Noncurrent liabilities held for sale
—
1,093
Total liabilities
17,776
35,917
Equity:
FIS stockholders' equity:
Preferred stock $0.01 par value
—
—
Common stock $0.01 par value
6
6
Additional paid in capital
47,080
46,934
(Accumulated deficit) retained
earnings
(22,343
)
(22,906
)
Accumulated other comprehensive earnings
(loss)
(387
)
(260
)
Treasury stock, at cost
(7,787
)
(4,724
)
Total FIS stockholders' equity
16,569
19,050
Noncontrolling interest
2
6
Total equity
16,571
19,056
Total liabilities and equity
$
34,347
$
54,973
Prior-year amounts have been revised to
correct certain immaterial misstatements. See Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS — UNAUDITED (In millions)
Exhibit C
Nine months ended September
30,
2024
2023
Cash flows from operating activities
from continuing operations:
Net earnings (loss)
$
1,171
$
(6,899
)
Less earnings (loss) from discontinued
operations, net of tax
687
(7,342
)
Net earnings (loss) from continuing
operations
484
443
Adjustment to reconcile net earnings
(loss) from continuing operations to net cash provided by operating
activities:
Depreciation and amortization
1,291
1,323
Amortization of debt issuance costs
16
22
Asset impairments
20
7
Loss on extinguishment of debt
174
—
Loss (gain) on sale of businesses,
investments and other
77
31
Stock-based compensation
142
90
Loss from equity method investment
110
—
Deferred income taxes
(200
)
(343
)
Net changes in assets and liabilities, net
of effects from acquisitions and foreign currency:
Trade and other receivables
(23
)
157
Receivable from related party
(88
)
—
Settlement activity
(3
)
5
Prepaid expenses and other assets
(129
)
(87
)
Deferred contract costs
(348
)
(272
)
Deferred revenue
(41
)
(47
)
Accounts payable, accrued liabilities and
other liabilities
(89
)
(28
)
Net cash provided by operating activities
from continuing operations
1,393
1,301
Cash flows from investing activities
from continuing operations:
Additions to property and equipment
(79
)
(88
)
Additions to software
(550
)
(496
)
Settlement of net investment hedge
cross-currency interest rate swaps
(8
)
(20
)
Net proceeds from sale of businesses and
investments
12,801
45
Cash divested from sale of business
(3,137
)
—
Acquisitions, net of cash acquired
(56
)
—
Coupon payments on interest rate swaps
(98
)
—
Other investing activities, net
(30
)
(38
)
Net cash provided by (used in) investing
activities
8,843
(597
)
Cash flows from financing activities
from continuing operations:
Borrowings
15,776
64,437
Repayment of borrowings and other
financing obligations
(24,183
)
(65,822
)
Debt issuance costs
(6
)
(2
)
Net proceeds from stock issued under
stock-based compensation plans
2
41
Treasury stock activity
(3,032
)
(16
)
Dividends paid
(608
)
(926
)
Purchase of noncontrolling interest
—
(173
)
Other financing activities, net
45
(8
)
Net cash provided by (used in) financing
activities from continuing operations
(12,006
)
(2,469
)
Cash flows from discontinued
operations:
Net cash provided by (used in) operating
activities
(5
)
1,510
Net cash provided by (used in) investing
activities
(39
)
(260
)
Net cash provided by (used in) financing
activities
(65
)
(188
)
Net cash provided by (used in)
discontinued operations
(109
)
1,062
Effect of foreign currency exchange rate
changes on cash from continuing operations
20
(17
)
Effect of foreign currency exchange rate
changes on cash from discontinued operations
(30
)
(12
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(1,889
)
(732
)
Cash, cash equivalents and restricted
cash, beginning of period
4,414
4,813
Cash, cash equivalents and restricted
cash, end of period
$
2,525
$
4,081
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL NON-GAAP ORGANIC
REVENUE GROWTH — UNAUDITED
(In millions)
Exhibit D
Three months ended September
30,
2024
2023
Constant
Currency
Adjusted
Revenue
FX
Revenue
Revenue
Growth (1)
Banking Solutions
$
1,779
$
1
$
1,780
$
1,732
3
%
Capital Market Solutions
730
(4
)
726
677
7
%
Operating segment total
2,509
(4
)
2,505
2,409
4
%
Corporate and Other
61
2
62
83
Consolidated FIS
$
2,570
$
(2
)
$
2,567
$
2,492
Nine months ended September
30,
2024
2023
Constant
Currency
Adjusted
Revenue
FX
Revenue
Revenue
Growth (1)
Banking Solutions
$
5,174
$
1
$
5,175
$
5,049
2
%
Capital Market Solutions
2,158
(8
)
2,151
2,011
7
%
Operating segment total
7,332
(7
)
7,326
7,060
4
%
Corporate and Other
196
1
197
258
Consolidated FIS
$
7,528
$
(6
)
$
7,523
$
7,318
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
(1)
Adjusted growth excludes Corporate and
Other. The Corporate and Other segment includes certain
non-strategic businesses that we plan to wind down or sell.
FIDELITY NATIONAL INFORMATION
SERVICES, INC. SUPPLEMENTAL DISAGGREGATION OF REVENUE — RECAST AND
UNAUDITED (In millions)
Exhibit E
In the following tables, revenue is
disaggregated by primary geographical market and type of revenue.
The tables also include a reconciliation of the disaggregated
revenue with the Company's reportable segments.
For the three months ended September 30,
2024 (in millions):
Banking
Solutions
Capital
Market
Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
1,521
$
452
$
26
$
1,999
All others
258
278
35
571
Total
$
1,779
$
730
$
61
$
2,570
Type of Revenue:
Recurring revenue:
Transaction processing and services
$
1,325
$
368
$
40
$
1,733
Software maintenance
88
145
1
234
Other recurring
66
23
10
99
Total recurring
1,479
536
51
2,066
Software license
54
92
1
147
Professional services
137
100
1
238
Other non-recurring
109
2
8
119
Total
$
1,779
$
730
$
61
$
2,570
For the three months ended September 30,
2023 (in millions):
Banking
Solutions
Capital
Market
Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
1,501
$
413
$
45
$
1,959
All others
231
264
38
533
Total
$
1,732
$
677
$
83
$
2,492
Type of Revenue:
Recurring revenue:
Transaction processing and services
(1)
$
1,232
$
349
$
58
$
1,639
Software maintenance
92
135
—
227
Other recurring
67
21
11
99
Total recurring
1,391
505
69
1,965
Software license
47
76
7
130
Professional services
126
96
2
224
Other non-recurring (1)
168
—
5
173
Total
$
1,732
$
677
$
83
$
2,492
(1)
December 31, 2023, was the final deadline
for states to complete all benefit issuance under federally funded
pandemic relief programs. Accordingly, revenue associated with
services the Company provided related to these programs has been
classified as Other non-recurring commencing in the fourth quarter
of 2023, and related prior-period amounts have been reclassified
from Transaction processing and services to Other non-recurring for
comparability.
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL NON-GAAP
FINANCIAL INFORMATION — RECAST AND UNAUDITED
(In millions)
Exhibit E (continued)
For the nine months ended September 30,
2024 (in millions):
Banking
Solutions
Capital
Market
Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
4,424
$
1,349
$
90
$
5,863
All others
750
809
106
1,665
Total
$
5,174
$
2,158
$
196
$
7,528
Type of Revenue:
Recurring revenue:
Transaction processing and services
$
3,855
$
1,104
$
130
$
5,089
Software maintenance
268
432
1
701
Other recurring
198
68
30
296
Total recurring
4,321
1,604
161
6,086
Software license
141
256
2
399
Professional services
405
295
3
703
Other non-recurring
307
3
30
340
Total
$
5,174
$
2,158
$
196
$
7,528
For the nine months ended September 30,
2023 (in millions):
Banking
Solutions
Capital
Market
Solutions
Corporate and Other
Total
Primary Geographical Markets:
North America
$
4,364
$
1,262
$
140
$
5,766
All others
685
749
118
1,552
Total
$
5,049
$
2,011
$
258
$
7,318
Type of Revenue:
Recurring revenue:
Transaction processing and services
(1)
$
3,693
$
1,035
$
189
$
4,917
Software maintenance
272
394
1
667
Other recurring
183
60
31
274
Total recurring
4,148
1,489
221
5,858
Software license
78
228
8
314
Professional services
436
293
7
736
Other non-recurring (1)
387
1
22
410
Total
$
5,049
$
2,011
$
258
$
7,318
(1)
December 31, 2023, was the final deadline
for states to complete all benefit issuance under federally funded
pandemic relief programs. Accordingly, revenue associated with
services the Company provided related to these programs has been
classified as Other non-recurring commencing in the fourth quarter
of 2023, and related prior-period amounts have been reclassified
from Transaction processing and services to Other non-recurring for
comparability.
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH
FLOW MEASURES — UNAUDITED
(In millions)
Exhibit F
Three months ended
Nine months ended
September 30, 2024
September 30, 2024
Net cash provided by operating
activities
$
641
$
1,393
Non-GAAP adjustments:
Acquisition, integration and other
payments (1)
132
362
Settlement activity
—
3
Adjusted cash flows from operations
773
1,758
Capital expenditures
(243
)
(629
)
Adjusted free cash flow
$
530
$
1,129
Three months ended
Nine months ended
September 30, 2023
September 30, 2023
Net cash provided by operating
activities
$
534
$
1,301
Non-GAAP adjustments:
Acquisition, integration and other
payments (1)
75
208
Settlement activity
(4
)
(5
)
Adjusted cash flows from operations
605
1,504
Capital expenditures
(215
)
(584
)
Adjusted free cash flow
$
390
$
920
Adjusted free cash flow reflects adjusted
cash flows from operations less capital expenditures (additions to
property and equipment and additions to software). Adjusted free
cash flow does not represent our residual cash flows available for
discretionary expenditures, since we have mandatory debt service
requirements and other non-discretionary expenditures that are not
deducted from the measure. Adjusted free cash flow as presented in
this earnings release excludes cash flows from discontinued
operations.
(1)
Adjusted free cash flows from operations
and free cash flow for the three and nine months ended September
30, 2024 and 2023, exclude cash payments for certain acquisition,
integration and other costs (see Note 2 to Exhibit G), net of
related tax impact. The related tax impact totaled $22 million and
$10 million for the three months and $61 million and $32 million
for the nine months ended September 30, 2024 and 2023,
respectively.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP
RECONCILIATIONS — UNAUDITED
(In millions, except per share
amounts)
Exhibit G
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net earnings (loss) attributable to FIS
from continuing operations
$
246
$
248
$
482
$
441
Provision (benefit) for income taxes
108
70
215
140
Interest expense, net
64
162
184
464
Equity method investment (earnings) loss,
net of tax
33
—
110
—
Other, net
39
(10
)
224
76
Operating income (loss), as reported
490
470
1,215
1,121
Depreciation and amortization, excluding
purchase accounting amortization
263
262
789
798
Non-GAAP adjustments:
Purchase accounting amortization (1)
168
173
502
524
Acquisition, integration and other costs
(2)
137
113
481
326
Asset impairments (3)
2
7
20
8
Indirect Worldpay business support costs
(5)
—
40
14
123
Adjusted EBITDA from continuing
operations
$
1,060
$
1,065
$
3,021
$
2,900
Net earnings (loss) attributable to FIS
from discontinued operations
$
(22
)
$
(709
)
$
687
$
(7,345
)
Provision (benefit) for income taxes
(3
)
(382
)
(994
)
(327
)
Interest expense, net
(1
)
(4
)
(2
)
(15
)
Other, net
—
30
6
(17
)
Operating income (loss)
(26
)
(1,065
)
(303
)
(7,704
)
Depreciation and amortization, excluding
purchase accounting amortization
—
11
1
160
Non-GAAP adjustments:
Purchase accounting amortization (1)
—
17
—
762
Acquisition, integration and other costs
(2)
—
86
13
140
Asset impairments (3)
—
4
—
6,843
Loss on assets held for sale (4)
—
1,549
—
1,549
Loss on sale of disposal group (11)
25
—
491
—
Indirect Worldpay business support costs
(5)
—
(40
)
(14
)
(123
)
Adjusted EBITDA from discontinued
operations
$
(1
)
$
562
$
188
$
1,627
Adjusted EBITDA
$
1,059
$
1,627
$
3,209
$
4,527
See Notes to Exhibit G.
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP
RECONCILIATIONS — UNAUDITED
(In millions, except per share
amounts)
Exhibit G (continued)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Earnings (loss) attributable to FIS from
continuing operations
$
246
$
248
$
482
$
441
Equity method investment (earnings) loss,
net of tax
33
—
110
—
Earnings (loss) attributable to FIS from
continuing operations, excluding equity method investment earnings
(loss)
279
248
592
441
Non-GAAP adjustments from continuing
operations:
Purchase accounting amortization (1)
168
173
502
524
Acquisition, integration and other costs
(2)
137
118
481
349
Asset impairments (3)
2
7
20
8
Indirect Worldpay business support costs
(5)
—
40
14
123
Non-operating (income) expense (6)
38
(11
)
222
74
Non-GAAP tax (provision) benefit (7)
2
(18
)
(82
)
(91
)
Total non-GAAP adjustments from continuing
operations
347
309
1,157
987
Adjusted net earnings attributable to FIS
from continuing operations, excluding equity method investment
earnings (loss)
626
557
1,749
1,428
Equity method investment earnings (loss),
net of tax (8)
(33
)
—
(110
)
—
Non-GAAP adjustments on equity method
investment earnings (loss), net of related (provision) benefit for
income taxes (8) (9)
172
—
504
—
Adjusted equity method investment earnings
(loss) (8)
139
—
394
—
Adjusted net earnings attributable to FIS
from continuing operations
$
765
$
557
$
2,143
$
1,428
Earnings (loss) attributable to FIS from
discontinued operations, net of tax
$
(22
)
$
(709
)
$
687
$
(7,345
)
Non-GAAP adjustments from discontinued
operations:
Purchase accounting amortization (1)
—
17
—
762
Acquisition, integration and other costs
(2)
—
86
13
155
Asset impairments (3)
—
4
—
6,843
Indirect Worldpay business support costs
(5)
—
(40
)
(14
)
(123
)
Amortization on long-lived assets held for
sale (10)
—
(63
)
(30
)
(63
)
Non-operating (income) expense (6)
—
29
6
(21
)
Loss on assets held for sale (4)
—
1,549
—
1,549
Loss on sale of disposal group (11)
25
—
491
—
Non-GAAP tax (provision) benefit (7)
(3
)
(451
)
(1,017
)
(528
)
Total non-GAAP adjustments from
discontinued operations
22
1,131
(551
)
8,574
Adjusted net earnings attributable to FIS
from discontinued operations
$
—
$
422
$
136
$
1,229
Adjusted net earnings attributable to FIS
common stockholders
$
765
$
979
$
2,279
$
2,657
See Notes to Exhibit G.
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP
RECONCILIATIONS — UNAUDITED
(In millions, except per share
amounts)
Exhibit G (continued)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Earnings (loss) attributable to FIS from
continuing operations
$
0.45
$
0.42
$
0.86
$
0.74
Equity method investment (earnings) loss,
net of tax
0.06
—
0.20
—
Earnings (loss) attributable to FIS from
continuing operations, excluding equity method investment earnings
(loss)
0.51
0.42
1.06
0.74
Non-GAAP adjustments from continuing
operations:
Purchase accounting amortization (1)
0.31
0.29
0.89
0.88
Acquisition, integration and other costs
(2)
0.25
0.20
0.86
0.59
Asset impairments (3)
—
0.01
0.04
0.01
Indirect Worldpay business support costs
(5)
—
0.07
0.02
0.21
Non-operating (income) expense (6)
0.07
(0.02
)
0.40
0.12
Non-GAAP tax (provision) benefit (7)
—
(0.03
)
(0.15
)
(0.15
)
Total non-GAAP adjustments from continuing
operations
0.63
0.52
2.06
1.66
Adjusted net earnings attributable to FIS
from continuing operations, excluding equity method investment
earnings (loss)
1.14
0.94
3.12
2.41
Equity method investment earnings (loss)
(8)
(0.06
)
—
(0.20
)
—
Non-GAAP adjustments on equity method
investment earnings (loss), net of related (provision) benefit for
income taxes (8) (9)
0.31
$
—
0.90
—
Adjusted equity method investment earnings
(loss) (8)
0.25
—
0.70
—
Adjusted net earnings attributable to FIS
from continuing operations
$
1.40
$
0.94
$
3.82
$
2.41
Earnings (loss) attributable to FIS from
discontinued operations, net of tax
$
(0.04
)
$
(1.19
)
$
1.22
$
(12.37
)
Non-GAAP adjustments from discontinued
operations:
Purchase accounting amortization (1)
—
0.03
—
1.28
Acquisition, integration and other costs
(2)
—
0.14
0.02
0.26
Asset impairments (3)
—
0.01
—
11.52
Loss on assets held for sale (4)
—
2.61
—
2.61
Indirect Worldpay business support costs
(5)
—
(0.07
)
(0.02
)
(0.21
)
Amortization on long-lived assets held for
sale (10)
—
(0.11
)
(0.05
)
(0.11
)
Non-operating (income) expense (6)
—
0.05
0.01
(0.04
)
Loss on sale of disposal group (11)
0.05
—
0.88
—
Non-GAAP tax (provision) benefit (7)
(0.01
)
(0.76
)
(1.81
)
(0.89
)
Total non-GAAP adjustments from
discontinued operations
0.04
1.90
(0.98
)
14.43
Adjusted net earnings attributable to FIS
from discontinued operations
$
—
$
0.71
$
0.24
$
2.07
Adjusted net earnings attributable to FIS
common stockholders
$
1.40
$
1.65
$
4.06
$
4.47
Weighted average shares
outstanding-diluted (12)
548
594
$
561
594
See Notes to Exhibit G.
Prior-year and year-to-date 2024 amounts
have been revised to correct certain immaterial misstatements. See
Exhibit J.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP
RECONCILIATIONS — UNAUDITED
(In millions, except per share
amounts)
Exhibit G (continued)
Notes to Unaudited - Supplemental GAAP
to Non-GAAP Reconciliations for the three and nine months ended
September 30, 2024 and 2023.
(1)
This item represents purchase price
amortization expense on all intangible assets acquired through
various Company acquisitions, including customer relationships,
contract value, technology assets, trademarks and trade names. The
Company has excluded the impact of purchase price amortization
expense as such amounts can be significantly impacted by the timing
and/or size of acquisitions. Although the Company excludes these
amounts from its non-GAAP expenses, the Company believes that it is
important for investors to understand that such intangible assets
contribute to revenue generation. Amortization of assets that
relate to past acquisitions will recur in future periods until such
assets have been fully amortized. Any future acquisitions may
result in the amortization of future assets.
(2)
This item represents costs comprised of
the following:
Three months ended
Nine months ended
September 30,
September 30,
2024
2023
2024
2023
Continuing operations:
Acquisition and integration
$
22
$
12
$
70
$
21
Enterprise transformation, including
Future Forward and platform modernization
76
79
205
223
Severance and other termination
expenses
7
6
34
48
Separation of the Worldpay Merchant
Solutions business
9
5
119
7
Incremental stock compensation directly
attributable to specific programs
20
9
46
13
Other, including divestiture-related
expenses and enterprise cost control and other initiatives
3
2
7
14
Subtotal
137
113
481
326
Accelerated amortization (a)
—
5
—
23
Total from continuing operations
$
137
$
118
$
481
$
349
Discontinued operations:
Acquisition and integration
$
—
$
4
$
—
$
11
Enterprise transformation, including
Future Forward and platform modernization
—
7
1
16
Severance and other termination
expenses
—
1
1
10
Separation of the Worldpay Merchant
Solutions business
—
68
8
97
Incremental stock compensation directly
attributable to specific programs
—
4
—
6
Other, including divestiture-related
expenses and enterprise cost control and other initiatives
—
2
3
—
Subtotal
—
86
13
140
Accelerated amortization (a)
—
—
—
14
Total from discontinued operations
$
—
$
86
$
13
$
154
Total consolidated
$
137
$
204
$
494
$
503
Amounts in table may not sum due to
rounding.
(a) For purposes of calculating Adjusted net earnings, this
item includes incremental amortization expense associated with
shortened estimated useful lives and accelerated amortization
methods for certain software and deferred contract cost assets
driven by the Company's platform modernization. The incremental
amortization expenses are included in the Depreciation and
amortization, excluding purchase accounting amortization line item
within the Adjusted EBITDA reconciliation.
(3)
For the three and nine months ended
September 30, 2024 and 2023, this item includes impairments
primarily related to the termination of certain internally
developed software projects. For the nine months ended September
30, 2023, this item also includes a $6.8 billion impairment of
goodwill related to the Merchant Solutions reporting unit in its
earnings from discontinued operations.
(4)
For the three and nine months ended
September 30, 2023, this item includes a $1.5 billion reduction of
the Worldpay Merchant Solutions disposal group's carrying value,
recorded in discontinued operations, primarily as a result of the
exclusion from the carrying value of the disposal group of certain
deferred tax liabilities that will continue to be held by FIS after
the disposal, which caused the carrying value to exceed the
estimated fair value of the disposal group.
(5) This item represents costs that were incurred in support
of the Worldpay Merchant Solutions business prior to the separation
but are not directly attributable to it and thus were not recorded
in discontinued operations. The Company expects that it will be
reimbursed for these expenses as part of Transition Services
Agreements with the purchaser or eliminate them post separation;
therefore, the expenses have been adjusted out of continuing
operations and added to discontinued operations. (6)
Non-operating (income) expense primarily consists of other income
and expense items outside of the Company's operating activities,
including fair value adjustments on certain non-operating assets
and liabilities and foreign currency transaction remeasurement
gains and losses. For the nine months ended September 30, 2024,
earnings from continuing operations also includes loss on
extinguishment of debt of approximately $174 million relating to
tender discounts and fees; the write-off of unamortized bond
discounts, debt issuance costs and fair value basis adjustments;
and gains on related derivative instruments. For the nine months
ended September 30, 2023, this item also includes $32 million of
impairment on an equity security investment which the Company
agreed to sell for less than its carrying value. (7) This
adjustment is based on an adjusted effective tax rate of 14.5% and
14.0% for the periods ended September 30, 2024 and 2023,
respectively, which reflects adjustments to our GAAP effective tax
rate to take into account primarily certain cash tax benefits from
our equity method investment in Worldpay. For the nine months ended
September 30, 2024, the Company recorded a tax benefit of $991
million in its earnings from discontinued operations primarily from
the write-off of U.S. deferred tax liabilities that were not
transferred in the Worldpay Sale, net of the estimated U.S. tax
cost that the Company expects to incur as a result of the Worldpay
Sale. This adjustment includes the removal of the impact of this
tax benefit from our earnings from discontinued operations for this
period. (8) FIS completed the separation of Worldpay on
January 31, 2024, retaining a non-controlling 45% ownership
interest that is recorded under the equity method of accounting.
FIS' share of Worldpay's results under the equity method of
accounting reflects activity beginning on February 1, 2024.
(9) This item represents FIS' proportionate share of Worldpay's
non-GAAP adjustments on its earnings (loss) consistent with FIS'
non-GAAP measures and is comprised of the following:
Three months ended
September 30, 2024
Eight months ended
September 30, 2024
FIS' share of Worldpay:
Purchase accounting amortization
$
133
$
442
Acquisition, integration and other costs
(a)
28
139
Non-operating (income) expense
47
27
Non-GAAP tax (provision) benefit
(36
)
(104
)
Non-GAAP adjustments on equity method
investment earnings (loss), net of related (provision) benefit for
income taxes
$
172
$
504
Amounts in table may not sum due to
rounding.
(a) Worldpay acquisition, integration, and
other costs for the three months and eight months ended September
30, 2024, consist primarily of transaction and transition costs
related to the separation from FIS.
(10) The Company stopped recording depreciation and
amortization on the long-lived assets classified as held for sale
beginning July 5, 2023. The amount of depreciation and amortization
that would have been recorded in discontinued operations had these
assets not been classified as held for sale has been deducted from
adjusted net earnings for comparability purposes. (11) An
initial loss on sale of disposal group of $466 million was recorded
upon closing of the Worldpay Sale to reflect the impact of the
excess of the carrying value of the disposal group over the
estimated fair value less cost to sell. During the three months
ended September 30, 2024, an additional $25 million estimated loss
on sale was recorded to reflect the impact of estimated
post-closing adjustments, reflecting a cumulative estimated loss on
sale of $491 million. (12) For the three and nine months
ended September 30, 2023, Adjusted net earnings is a gain, while
the corresponding GAAP amount for this period is a loss. As a
result, in calculating Adjusted net earnings per share-diluted for
this period, the weighted average shares outstanding-diluted amount
of approximately 594 million and 594 million used in the
calculation includes approximately 2 million and 2 million shares
for the three and nine months ended September 30, 2023,
respectively, that in accordance with GAAP are excluded from the
calculation of the GAAP Net loss per share-diluted for the periods,
due to their anti-dilutive impact.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION — UNAUDITED
(In millions)
Exhibit H
The Company completed the Worldpay Sale on
January 31, 2024. The results of the Worldpay Merchant Solutions
business prior to the completion of the Worldpay Sale have been
presented as discontinued operations. The following table
represents a reconciliation of the major components of Earnings
(loss) from discontinued operations, net of tax, presented in the
consolidated statements of earnings (loss), reflecting activity
through January 31, 2024 (the date the Worldpay Sale closed) (in
millions). The Company's presentation of earnings (loss) from
discontinued operations excludes general corporate overhead costs
that were historically allocated to the Worldpay Merchant Solutions
business. Additionally, beginning on July 5, 2023, the Company
stopped amortization of long-lived assets held for sale in
accordance with ASC 360.
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Major components of earnings (loss) from
discontinued operations before income taxes:
Revenue
$
3
$
1,201
$
409
$
3,636
Cost of revenue
(4
)
(193
)
(68
)
(1,462
)
Selling, general, and administrative
expenses
—
(520
)
(155
)
(1,486
)
Asset impairments
—
(4
)
—
(6,843
)
Interest income (expense), net
1
4
2
15
Other, net
—
(30
)
(4
)
17
Earnings (loss) from discontinued
operations related to major components of pretax earnings
(loss)
—
458
184
(6,123
)
Loss on assets held for sale (1)
—
(1,549
)
—
(1,549
)
Loss on sale of disposal group (2)
(25
)
—
(491
)
—
Earnings (loss) from discontinued
operations
(25
)
(1,091
)
(307
)
(7,672
)
Provision (benefit) for income taxes
(2)
(3
)
(382
)
(994
)
(327
)
Earnings (loss) from discontinued
operations, net of tax attributable to FIS
$
(22
)
$
(709
)
$
687
$
(7,345
)
(1)
Loss on assets held for sale includes a
$1.5 billion reduction of the Worldpay Merchant Solutions disposal
group's carrying value, recorded in discontinued operations,
primarily as a result of the exclusion from the carrying value of
the disposal group of certain deferred tax liabilities that will
continue to be held by FIS after the disposal, which caused the
carrying value to exceed the estimated fair value of the disposal
group.
(2)
An initial loss on sale of disposal group
of $466 million was recorded upon closing of the Worldpay Sale to
reflect the impact of the excess of the carrying value of the
disposal group over the estimated fair value less cost to sell.
During the three months ended September 30, 2024, an additional $25
million estimated loss on sale was recorded to reflect the impact
of estimated post-closing adjustments, reflecting a cumulative
estimated loss on sale of $491 million. Upon closing of the
Worldpay Sale, the Company also recorded a tax benefit of $991
million primarily from the write-off of U.S. deferred tax
liabilities that were not transferred in the Worldpay Sale, net of
the estimated U.S. tax cost that the Company expects to incur as a
result of the Worldpay Sale. The estimated U.S. tax cost remains
unchanged based on available data and management determinations as
of September 30, 2024. Post-closing selling price adjustments and
completion of other purchase agreement provisions in connection
with the Worldpay Sale could result in further adjustments to the
loss on sale amount and the estimated U.S. tax cost.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION OF WORLDPAY HOLDCO, LLC — UNAUDITED
(In millions)
Exhibit I
Summary Worldpay Holdco, LLC financial
information is as follows:
Three months ended
September 30, 2024
Eight months ended
September 30, 2024 (1)
Revenue
$
1,248
$
3,429
Gross profit
$
718
$
1,771
Earnings (loss) before income taxes
$
(99
)
$
(326
)
Net earnings (loss) attributable to
Worldpay Holdco, LLC
$
(160
)
$
(431
)
FIS share of net earnings (loss)
attributable to Worldpay Holdco, LLC, net of tax (2)
$
(33
)
$
(110
)
The following is a GAAP to Non-GAAP
reconciliation of Adjusted EBITDA for Worldpay Holdco LLC.
Three months ended
September 30, 2024
Eight months ended
September 30, 2024 (1)
Net earnings (loss) attributable to
Worldpay Holdco, LLC
$
(160
)
$
(431
)
Provision (benefit) for income taxes
60
102
Interest expense, net
146
410
Other, net
106
65
Operating income (loss)
152
146
Depreciation and amortization, excluding
purchase accounting amortization
23
52
Non-GAAP adjustments:
Purchase accounting amortization
295
982
Transition, acquisition, integration and
other costs (3)
62
308
Adjusted EBITDA
$
532
$
1,488
(1)
FIS completed the separation of Worldpay
on January 31, 2024. Accordingly, Worldpay's results reflects
activity beginning on February 1, 2024.
(2)
Amount includes our share of the net
income attributable to Worldpay and our investor-level tax benefit
of $39 million and $84 million for the three and eight months ended
September 30, 2024, respectively, and is reported as equity method
investment earnings (loss), net of tax on our consolidated
statement of earnings.
(3)
This item represents primarily transaction
and transition costs associated with the separation of Worldpay
from FIS.
FIDELITY NATIONAL INFORMATION SERVICES,
INC.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED
FINANCIAL STATEMENTS AND SUPPLEMENTAL NON-GAAP FINANCIAL
INFORMATION — UNAUDITED
(In millions)
Exhibit J
Revision of Previously Issued Consolidated Financial
Statements
During the third quarter of 2024, we identified immaterial
non-cash misstatements affecting the Company's previously issued
consolidated financial statements as of and for the annual periods
ended December 31, 2023 and 2022, and the quarterly periods ended
March 31 and June 30, 2024. The misstatements related primarily to
the timing of the recognition of expenses associated with
inventory-related accruals, along with their related balance sheet
impacts, and the presentation of certain value-added tax balances
in the consolidated financial statements. We have revised our
prior-period financial statements to correct these misstatements as
well as other unrelated immaterial misstatements, including
adjustments to Revenue and Other income (expense), net. The
revisions ensure comparability across all periods reflected in the
consolidated financial statements. The GAAP diluted EPS net impact
of these prior-period revisions is a $0.04 decrease to the six
months ended June 30, 2024, no change for fiscal year 2023 and a
$0.05 decrease for fiscal year 2022. The non-GAAP diluted EPS net
impact of these prior-period revisions is a $0.02 decrease for the
six months ended June 30, 2024, a $0.03 decrease for fiscal year
2023 and a $0.06 decrease for fiscal year 2022. The revisions had
no impact to adjusted free cash flow. A summary of the revisions to
the previously reported results is provided below.
The following tables sets forth our revisions to the
Consolidated Statement of Earnings/(Loss) for each of the periods
indicated.
Six months ended June 30,
2023
Six months ended June 30,
2024
For the year ended December
31, 2022
For the year ended December
31, 2023
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
Revenue
$
4,821
$
6
$
4,826
$
4,957
$
1
$
4,958
$
9,719
$
1
$
9,720
$
9,821
$
10
$
9,831
Cost of revenue
3,086
16
3,102
3,091
15
3,106
6,216
43
6,259
6,145
30
6,175
Operating income
661
(10
)
651
739
(14
)
725
1,218
(42
)
1,176
1,467
(20
)
1,447
Other income (expense), net
(113
)
28
(86
)
(167
)
(17
)
(184
)
4
(2
)
2
(183
)
18
(164
)
Earnings (loss) before income taxes and
equity method investment earnings (loss)
246
18
263
452
(31
)
421
941
(44
)
898
663
(2
)
662
Provision (benefit) for income tax
65
5
69
116
(8
)
107
325
(11
)
314
157
(1
)
157
Net earnings (loss) from continuing
operations
181
13
194
260
(23
)
237
616
(33
)
584
506
(1
)
505
Net earnings (loss) attributable to
FIS
(6,456
)
13
(6,443
)
968
(23
)
945
(16,720
)
(33
)
(16,752
)
(6,654
)
(1
)
(6,655
)
Net earnings (loss) attributable to FIS
from continuing operations
180
13
193
259
(23
)
236
608
(33
)
576
503
(1
)
502
Basic earnings (loss) per common share
attributable to FIS from continuing operations
0.30
0.02
0.33
0.46
(0.04
)
0.42
1.01
(0.05
)
0.95
0.85
—
0.85
Basic earnings (loss) per common share
attributable to FIS
(10.91
)
0.02
(10.88
)
1.71
(0.04
)
1.67
(27.68
)
(0.05
)
(27.74
)
(11.26
)
—
(11.26
)
Diluted earnings (loss) per common share
attributable to FIS from continuing operations
0.30
0.02
0.33
0.46
(0.04
)
0.42
1.01
(0.05
)
0.95
0.85
—
0.85
Diluted earnings (loss) per common share
attributable to FIS
(10.91
)
0.02
(10.88
)
1.71
(0.04
)
1.67
(27.68
)
(0.05
)
(27.74
)
(11.26
)
—
(11.26
)
Adjusted EBITDA from continuing
operations
$
1,844
$
(10
)
$
1,835
$
1,974
$
(14
)
$
1,960
$
3,961
$
(42
)
$
3,917
$
3,972
$
(20
)
$
3,952
Adjusted EBITDA margin from continuing
operations
38.2
%
NM
38.0
%
39.8
%
NM
39.5
%
40.8
%
NM
40.3
%
40.4
%
NM
40.2
%
Adjusted net earnings attributable to FIS
from continuing operations (1)
$
879
$
(9
)
$
870
$
1,390
$
(12
)
$
1,378
$
2,297
$
(36
)
$
2,261
$
1,999
$
(17
)
$
1,982
Adjusted net earnings per diluted share
attributable to FIS from continuing operations
$
1.48
$
(0.02
)
$
1.47
$
2.45
$
(0.02
)
$
2.43
$
3.78
$
(0.06
)
$
3.72
$
3.37
$
(0.03
)
$
3.34
Banking
Revenue
$
3,312
$
6
$
3,317
$
3,394
$
1
$
3,395
$
6,624
$
1
$
6,625
$
6,733
$
10
$
6,743
Adjusted EBITDA
$
1,394
$
(10
)
$
1,384
$
1,511
$
(14
)
$
1,497
$
2,882
$
(42
)
$
2,840
$
2,928
$
(20
)
$
2,908
Adjusted EBITDA %
42.1
%
NM
41.7
%
44.5
%
NM
44.1
%
43.5
%
NM
42.9
%
43.5
%
NM
43.1
%
(1)
The revisions to Net earnings (loss)
attributable to FIS from continuing operations included adjustments
to Other income (expense), net which are excluded from Adjusted net
earnings attributable to FIS from continuing operations.
Additionally, Adjusted net earnings from continuing operations
applies a normalized tax rate ranging from 14.0% to 14.5%,
depending on the period.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
REVISION OF PREVIOUSLY ISSUED
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL NON-GAAP
FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit J (continued)
Three months ended March 31,
2022
Three months ended June 30,
2022
Three months ended September
30, 2022
Three months ended December
31, 2022
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
Revenue
$
2,370
$
—
$
2,371
$
2,408
$
—
$
2,408
$
2,415
$
—
$
2,415
$
2,526
$
1
$
2,526
Cost of revenue
1,571
10
1,581
1,541
10
1,551
1,534
11
1,545
1,570
12
1,582
Operating income
202
(10
)
192
254
(10
)
244
384
(11
)
372
379
(11
)
367
Other income (expense), net
29
—
29
6
4
10
18
(1
)
18
(49
)
(5
)
(54
)
Earnings (loss) before income taxes and
equity method investment earnings (loss)
188
(10
)
178
212
(6
)
206
324
(12
)
312
218
(16
)
202
Provision (benefit) for income tax
67
(3
)
64
51
(1
)
49
102
(3
)
99
107
(4
)
103
Net earnings (loss) from continuing
operations
121
(7
)
115
161
(5
)
156
222
(9
)
213
111
(12
)
99
Net earnings (loss) attributable to
FIS
120
(7
)
113
277
(5
)
271
249
(9
)
240
(17,365
)
(12
)
(17,377
)
Net earnings (loss) attributable to FIS
from continuing operations
121
(7
)
115
159
(5
)
155
218
(9
)
210
109
(12
)
97
Basic earnings (loss) per common share
attributable to FIS from continuing operations
0.20
(0.01
)
0.19
0.26
(0.01
)
0.25
0.36
(0.01
)
0.35
0.18
(0.02
)
0.16
Basic earnings (loss) per common share
attributable to FIS
0.20
(0.01
)
0.19
0.46
(0.01
)
0.45
0.41
(0.01
)
0.40
(29.28
)
(0.02
)
(29.30
)
Diluted earnings (loss) per common share
attributable to FIS from continuing operations
0.20
(0.01
)
0.19
0.26
(0.01
)
0.25
0.36
(0.01
)
0.35
0.18
(0.02
)
0.16
Diluted earnings (loss) per common share
attributable to FIS
0.20
(0.01
)
0.18
0.45
(0.01
)
0.44
0.41
(0.01
)
0.40
(29.28
)
(0.02
)
(29.30
)
Adjusted EBITDA from continuing
operations
$
909
$
(10
)
$
899
$
984
$
(10
)
$
975
$
1,022
$
(11
)
$
1,010
$
1,045
$
(11
)
$
1,034
Adjusted EBITDA margin from continuing
operations
38.4
%
NM
37.9
%
40.9
%
NM
40.5
%
42.3
%
NM
41.8
%
41.4
%
NM
40.9
%
Adjusted net earnings attributable to FIS
from continuing operations (1)
$
519
$
(9
)
$
510
$
577
$
(9
)
$
568
$
613
$
(10
)
$
603
$
585
$
(9
)
$
576
Adjusted net earnings per diluted share
attributable to FIS from continuing operations
$
0.85
$
(0.01
)
$
0.83
$
0.94
$
(0.01
)
$
0.93
$
1.01
$
(0.02
)
$
0.99
$
0.98
$
(0.02
)
$
0.97
Banking
Revenue
$
1,625
$
—
$
1,625
$
1,641
$
—
$
1,642
$
1,664
$
—
$
1,665
$
1,694
$
1
$
1,694
Adjusted EBITDA
$
704
$
(10
)
$
695
$
743
$
(10
)
$
733
$
732
$
(11
)
$
721
$
703
$
(11
)
$
691
Adjusted EBITDA %
43.3
%
NM
42.8
%
45.3
%
NM
44.6
%
44.0
%
NM
43.3
%
41.5
%
—
%
40.8
%
(1)
The revisions to Net earnings (loss)
attributable to FIS from continuing operations included adjustments
to Other income (expense), net which are excluded from Adjusted net
earnings attributable to FIS from continuing operations.
Additionally, Adjusted net earnings from continuing operations
applies a normalized tax rate ranging from 12.1% to 15.0%,
depending on the quarter.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
REVISION OF PREVIOUSLY ISSUED
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL NON-GAAP
FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit J (continued)
Three months ended March 31,
2023
Three months ended June 30,
2023
Three months ended September
30, 2023
Three months ended December
31, 2023
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
As reported
Adjustment
As revised
Revenue
$
2,397
$
3
$
2,400
$
2,424
$
3
$
2,427
$
2,489
$
2
$
2,492
$
2,510
$
2
$
2,512
Cost of revenue
1,569
8
1,577
1,519
8
1,527
1,523
7
1,531
1,535
7
1,542
Operating income
311
(5
)
306
351
(5
)
346
475
(5
)
470
331
(5
)
326
Other income (expense), net
(36
)
20
(16
)
(77
)
8
(70
)
22
(11
)
11
(91
)
1
(90
)
Earnings (loss) before income taxes and
equity method investment earnings (loss)
133
15
147
114
3
116
335
(16
)
319
82
(4
)
79
Provision (benefit) for income tax
37
4
40
29
1
30
74
(4
)
70
17
(2
)
15
Net earnings (loss) from continuing
operations
96
11
108
85
2
87
261
(12
)
249
65
(2
)
62
Net earnings (loss) attributable to
FIS
140
11
151
(6,596
)
2
(6,594
)
(449
)
(12
)
(461
)
251
(2
)
249
Net earnings (loss) attributable to FIS
from continuing operations
96
11
107
84
2
86
260
(12
)
248
64
(2
)
61
Basic earnings (loss) per common share
attributable to FIS from continuing operations
0.16
0.02
0.18
0.14
—
0.15
0.44
(0.02
)
0.42
0.11
—
0.10
Basic earnings (loss) per common share
attributable to FIS
0.24
0.02
0.26
(11.14
)
—
(11.14
)
(0.76
)
(0.02
)
(0.78
)
0.43
—
0.42
Diluted earnings (loss) per common share
attributable to FIS from continuing operations
0.16
0.02
0.18
0.14
—
0.15
0.44
(0.02
)
0.42
0.11
—
0.10
Diluted earnings (loss) per common share
attributable to FIS
0.24
0.02
0.25
(11.14
)
—
(11.14
)
(0.76
)
(0.02
)
(0.78
)
0.42
—
0.42
Adjusted EBITDA from continuing
operations
$
900
$
(5
)
$
895
$
945
$
(5
)
$
940
$
1,070
$
(5
)
$
1,065
$
1,057
$
(5
)
$
1,052
Adjusted EBITDA margin from continuing
operations
37.5
%
NM
37.3
%
39.0
%
NM
38.7
%
43.0
%
NM
42.7
%
42.1
%
NM
41.9
%
Adjusted net earnings attributable to FIS
from continuing operations (1)
$
426
$
(4
)
$
422
$
454
$
(4
)
$
450
$
560
$
(4
)
$
556
$
558
$
(4
)
$
554
Adjusted net earnings per diluted share
attributable to FIS from continuing operations
$
0.72
$
(0.01
)
$
0.71
$
0.76
$
(0.01
)
$
0.76
$
0.94
$
(0.01
)
$
0.94
$
0.94
$
(0.01
)
$
0.94
Banking
Revenue
$
1,646
$
3
$
1,649
$
1,666
$
3
$
1,668
$
1,730
$
2
$
1,732
$
1,692
$
2
$
1,694
Adjusted EBITDA
$
671
$
(5
)
$
666
$
723
$
(5
)
$
718
$
786
$
(5
)
$
781
$
747
$
(5
)
$
742
Adjusted EBITDA %
40.8
%
NM
40.4
%
43.4
%
NM
43.0
%
45.4
%
NM
45.1
%
44.1
%
NM
43.8
%
(1)
The revisions to Net earnings (loss)
attributable to FIS from continuing operations included adjustments
to Other income (expense), net which are excluded from Adjusted net
earnings attributable to FIS from continuing operations.
Additionally, Adjusted net earnings from continuing operations
applies a normalized tax rate of 14.0%.
Amounts in table may not sum or calculate
due to rounding.
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
REVISION OF PREVIOUSLY ISSUED
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL NON-GAAP
FINANCIAL INFORMATION — UNAUDITED
(In millions)
Exhibit J (continued)
Three months ended March 31,
2024
Three months ended June 30,
2024
As reported
Adjustment
As revised
As reported
Adjustment
As revised
Revenue
$
2,467
$
—
$
2,468
$
2,489
$
1
$
2,490
Cost of revenue
1,552
7
1,559
1,538
8
1,546
Operating income
361
(7
)
354
378
(7
)
371
Other income (expense), net
(154
)
(17
)
(172
)
(13
)
—
(12
)
Earnings (loss) before income taxes and
equity method investment earnings (loss)
130
(24
)
106
322
(7
)
315
Provision (benefit) for income tax
26
(6
)
20
89
(2
)
88
Net earnings (loss) from continuing
operations
18
(18
)
—
243
(5
)
238
Net earnings (loss) attributable to
FIS
724
(18
)
706
243
(5
)
238
Net earnings (loss) attributable to FIS
from continuing operations
17
(18
)
(1
)
242
(5
)
237
Basic earnings (loss) per common share
attributable to FIS from continuing operations
0.03
(0.03
)
—
0.44
(0.01
)
0.43
Basic earnings (loss) per common share
attributable to FIS
1.26
(0.03
)
1.23
0.44
(0.01
)
0.43
Diluted earnings (loss) per common share
attributable to FIS from continuing operations
0.03
(0.03
)
—
0.43
(0.01
)
0.43
Diluted earnings (loss) per common share
attributable to FIS
1.25
(0.03
)
1.22
0.44
(0.01
)
0.43
Adjusted EBITDA from continuing
operations
$
975
$
(7
)
$
969
$
998
$
(7
)
$
992
Adjusted EBITDA margin from continuing
operations
39.5
%
NM
39.3
%
40.1
%
NM
39.8
%
Adjusted net earnings attributable to FIS
from continuing operations (1)
$
635
$
(6
)
$
629
$
754
$
(6
)
$
748
Adjusted net earnings per diluted share
attributable to FIS from continuing operations
$
1.10
$
(0.01
)
$
1.09
$
1.36
$
(0.01
)
$
1.34
Banking
Revenue
$
1,684
$
—
$
1,684
$
1,710
$
1
$
1,711
Adjusted EBITDA
$
745
$
(7
)
$
739
$
765
$
(7
)
$
758
Adjusted EBITDA %
44.3
%
NM
43.9
%
44.8
%
NM
44.3
%
(1)
The revisions to Net earnings (loss)
attributable to FIS from continuing operations included adjustments
to Other income (expense), net which are excluded from Adjusted net
earnings attributable to FIS from continuing operations.
Additionally, Adjusted net earnings from continuing operations
applies a normalized tax rate of 14.5%.
Amounts in table may not sum or calculate
due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104591433/en/
Ellyn Raftery, 904.438.6083 Chief Marketing & Communications
Officer FIS Global Marketing & Corporate Communications
Ellyn.Raftery@fisglobal.com
George Mihalos, 904.438.6438 Senior Vice President FIS Investor
Relations Georgios.Mihalos@fisglobal.com
Grafico Azioni Fidelity National Inform... (NYSE:FIS)
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Da Ott 2024 a Nov 2024
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