Strong organic growth across all business lines
Integrated Financial Solutions increases 9.0%
Enterprise Solutions increases 3.7%
International increases 25.5%
Pro forma free cash flow of $118 million
JACKSONVILLE, Fla., Oct. 27 /PRNewswire-FirstCall/ -- Fidelity National
Information Services, Inc. (NYSE: FIS), a leading global provider of
technology services to financial institutions, today announced consolidated
financial results for the third quarter of 2008.
Consolidated revenue increased 25.4% to $893.8 million, including
approximately $142.8 million in revenue from eFunds, which FIS acquired in
September 2007. Excluding eFunds, organic revenue increased 9.4% over the
comparable 2007 quarter. GAAP net earnings from continuing operations
totaled $0.24 per share, compared to $0.68 per share in the third quarter
of 2007, which included an after-tax gain of $0.58 from the sale of
Covansys stock.
Non-GAAP adjusted net earnings from continuing operations for the third
quarter of 2008 totaled $0.42 per share, compared to $0.31 in the prior
year, an increase of 35.5%. Adjusted EBITDA increased 27.9% to $228.9
million compared to $179.0 million in the third quarter of 2007. The EBITDA
margin improved to 25.6% compared to 25.1% in the prior-year quarter and
increased sequentially from 23.1% in the second quarter of 2008. Pro forma
free cash flow (cash from operations, adjusted for merger and integration
costs, less capital expenditures) increased to $118.2 million in the third
quarter of 2008. Pro forma free cash flow for the first nine months of 2008
totaled $209.3 million, or 102% of adjusted net earnings, compared with
$41.5 million in the same period in the prior year.
"FIS has achieved consistent improvement in organic revenue growth,
EBITDA margin and free cash flow throughout 2008, and we are very pleased
with these results," stated William P. Foley, II, executive chairman of
FIS. "Despite the increasingly challenging economic environment, we are
reaffirming our previously communicated earnings guidance."
"FIS is executing to plan, despite persistent challenges in the
marketplace," added Lee A. Kennedy, president and chief executive officer.
"We continue to focus on the goals that we established early in the year,
including driving higher organic revenue growth through market share gains
and cross sales, reducing our overall cost structure, completing the eFunds
integration, reducing capital expenditures and improving cash flow. We are
making solid progress on each of these initiatives, as demonstrated by the
strong results across all business lines."
FIS' operating results are presented in accordance with generally
accepted accounting principles ("GAAP") and on an adjusted pro forma basis,
which management believes may provide more meaningful comparisons with
respect to our current operations between the periods presented. The
adjusted results exclude the after-tax impact of merger and acquisition and
integration expenses, LPS spin-off related costs, debt restructuring and
other charges, gains (losses) on the sale of certain non-strategic assets
and acquisition related amortization.
