Investors

Press Release


FIS Reports First Quarter 2017 Results

  • GAAP revenue increased 3.4 percent, and organic revenue increased 1.7 percent
  • Diluted EPS from continuing operations was $0.41, and Adjusted EPS was $0.86
  • Net cash provided by operating activities was $454 million, and free cash flow was $363 million

JACKSONVILLE, Fla.--(BUSINESS WIRE)--May 2, 2017-- FIS™ (NYSE:FIS), a global leader in financial services technology, today reported that first quarter GAAP revenue increased 3.4 percent to $2,255 million from $2,181 million in the prior year quarter. Operating income increased to $260 million for the quarter, from $184 million in the prior year quarter, while operating income margin was 11.5 percent. Net earnings from continuing operations attributable to common stockholders was $138 million for the quarter, or $0.41 per share compared to $0.17 per share in the prior year quarter.

For the first quarter, organic revenue increased 1.7 percent. Adjusted EBITDA increased to $682 million for the quarter, from $637 million in the prior year quarter, while adjusted EBITDA margin was 30.2 percent. Adjusted net earnings from continuing operations attributable to common stockholders was $286 million for the quarter, or $0.86 per share compared to $0.79 per share in the prior year quarter.

“We are very pleased with our strong results for the quarter, which exceeded our expectations and provided us a solid start to the year,” said Gary Norcross, FIS president and chief executive officer. “We continue to see demand for our solutions and services, and are harnessing these opportunities to drive sustained value for our clients and shareholders.”

Segment Information

  • Integrated Financial Solutions (IFS):

GAAP revenue increased 1.4 percent to $1,128 million from $1,112 million in the prior year quarter. Organic revenue increased 1.5 percent. Adjusted EBITDA increased to $442 million from $424 million in the prior year quarter, and adjusted EBITDA margin was 39.2 percent.

  • Global Financial Solutions (GFS):

GAAP revenue increased 2.9 percent to $1,019 million from $990 million in the prior year quarter. Organic revenue increased 3.0 percent. Adjusted EBITDA increased to $283 million from $251 million in the prior year quarter, and adjusted EBITDA margin was 27.8 percent.

  • Corporate / Other:

GAAP revenue increased 36.7 percent to $108 million compared to $79 million in the prior year quarter. Organic revenue decreased 6.6 percent. Adjusted EBITDA loss was $43 million and is inclusive of $70 million of corporate expenses.

First quarter interest expense, net of interest income, was $93 million.

Balance Sheet and Cash Flow

As of March 31, 2017, cash and cash equivalents totaled $705 million and debt outstanding totaled $9.5 billion. First quarter net cash provided by operating activities was $454 million and free cash flow was $363 million.

The Company paid dividends totaling $95 million in the first quarter.

Reiterating Full Year 2017 Guidance

  • Consolidated GAAP revenue growth of 1 to 2 percent;
    • IFS GAAP revenue growth of 3 to 4 percent; and
    • GFS GAAP revenue growth of 3 to 4 percent.
  • Consolidated organic revenue growth of 2 to 3 percent;
    • IFS organic revenue growth of 3 to 4 percent; and
    • GFS organic revenue growth of 4 to 5 percent.
  • Adjusted EBITDA of $3,040 million to $3,120 million
  • Adjusted EPS of $4.15 to $4.30, an increase of 9 to 13 percent compared to $3.82 per share in 2016

FIS has not provided a reconciliation of the foregoing forward-looking guidance to the most comparable GAAP measures for Adjusted EBITDA or Adjusted EPS because such measures are not available at this time without unreasonable efforts. The significant impact of the SunGard acquisition, including among other things, the timing and amount of integration and severance costs, and the transition of systems, facilities and personnel, make it difficult to provide meaningful and comparable GAAP guidance.

Webcast

FIS will announce first quarter 2017 financial results on Tues., May 2, prior to market open. The Company will sponsor a live webcast of its earnings conference call with the investment community beginning at 8:30 a.m. (EDT) Tues., May 2. 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.

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. 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 adjusted revenue, EBITDA, adjusted EBITDA, adjusted EBITDA margin, constant currency revenue, organic revenue growth, adjusted net earnings from continuing operations (including per share amounts), adjusted cash flow from operations and 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’s core operating performance. The “constant currency” and “organic revenue” measures adjust for the effects of exchange rate fluctuations, while organic revenue also adjusts for acquisitions and divestitures, giving investors further insight into our core performance. Finally, the non-GAAP cash flow measures provide 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.

Adjusted revenue consists of reported revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard under GAAP but was not recognized due to GAAP purchase accounting adjustments. The deferred revenue adjustment in purchase accounting was made entirely in the Corporate and Other segment; reported GAAP results for the IFS and GFS segments are not affected by this adjustment and, therefore, no adjusted revenue is presented for these segments.

EBITDA reflects earnings from continuing operations before interest, taxes, depreciation and amortization.

Adjusted EBITDA excludes certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. 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 divided by adjusted revenue.

Constant currency revenue represents (i) adjusted revenue in respect of the consolidated results and the corporate and other segment and (ii) reported revenue in respect of the IFS and GFS segments, in each case excluding the impact of fluctuations in foreign currency exchange rates in the current period.

Organic revenue growth is constant currency revenue, as defined above, for the current period compared to an adjusted revenue base for the prior period, which is further adjusted to exclude the impact of any acquisitions and divestitures by FIS during the applicable reporting period.

Adjusted net earnings from continuing operations excludes the impact of certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the impact of acquisition-related purchase accounting amortization, which is recurring.

Adjusted net earnings per diluted share, or Adjusted EPS, reflects adjusted net earnings from continuing operations divided by weighted average diluted shares outstanding.

Adjusted cash flow from operations reflects GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations, and excludes 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.

Free cash flow reflects adjusted cash flow from operations less capital expenditures. 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.

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 specific adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS web site, www.fisglobal.com.

About FIS

FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 57,000 people worldwide and holds global leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.

Follow FIS on Facebook (facebook.com/FIStoday) and Twitter (@FISGlobal).

Forward-Looking Statements

This news 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, including statements about anticipated financial outcomes, including any earnings guidance of the Company, business and market conditions, outlook, foreign currency exchange rates, expected dividends and share repurchases, the Company’s sales pipeline and anticipated profitability and growth, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, are forward-looking statements. 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. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.

Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include, without limitation:

  • 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 other synergies anticipated to be realized from acquisitions may not be fully realized or may take longer to realize than expected;
  • the risk of doing business internationally;
  • changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, changes in either or both the United States and international lending, capital and financial markets, and currency fluctuations;
  • the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy 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;
  • failures to adapt our solutions to changes in technology or in the marketplace;
  • internal or external security 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 may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers;
  • the reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters;
  • 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 could impact our solutions including the ability to attract new, or retain existing, customers;
  • an operational or natural disaster at one of our major operations centers; and
  • other risks detailed under “Risk Factors” and other sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and other filings with the SEC.

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
May 2, 2017
     
Exhibit A Condensed Consolidated Statements of Earnings - Unaudited for the three months ended March 31, 2017 and 2016
 
Exhibit B Condensed Consolidated Balance Sheets - Unaudited as of March 31, 2017 and December 31, 2016
 
Exhibit C Condensed Consolidated Statements of Cash Flows - Unaudited for the three months ended March 31, 2017 and 2016
 
Exhibit D Supplemental Non-GAAP Financial Information - Unaudited for the three months ended March 31, 2017 and 2016
 
Exhibit E Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for the three months ended March 31, 2017 and 2016
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)
   

Exhibit A

 
Three months ended March 31,
2017 2016
Processing and services revenues $ 2,255 $ 2,181
Cost of revenues 1,582   1,553  
Gross profit 673 628
Selling, general and administrative expenses 413   444  
Operating income 260   184  
Other income (expense):
Interest expense, net (93 ) (93 )
Other income (expense), net 56   (1 )
Total other income (expense), net (37 ) (94 )
Earnings from continuing operations before income taxes 223 90
Provision for income taxes 79   31  
Earnings from continuing operations, net of tax 144 59
Earnings (loss) from discontinued operations, net of tax    
Net earnings 144 59
Net earnings attributable to noncontrolling interest (6 ) (4 )
Net earnings attributable to FIS common stockholders $ 138   $ 55  
Net earnings per share-basic from continuing operations attributable to FIS common stockholders $ 0.42 $ 0.17
Net earnings (loss) per share-basic from discontinued operations attributable to FIS common stockholders    
Net earnings per share-basic attributable to FIS common stockholders $ 0.42   $ 0.17  
Weighted average shares outstanding-basic 328   324  
Net earnings per share-diluted from continuing operations attributable to FIS common stockholders $ 0.41 $ 0.17
Net earnings (loss) per share-diluted from discontinued operations attributable to FIS common stockholders    
Net earnings per share-diluted attributable to FIS common stockholders $ 0.41   $ 0.17  
Weighted average shares outstanding-diluted 333   327  
Amounts attributable to FIS common stockholders:
Net earnings from continuing operations $ 138 $ 55
Net earnings (loss) from discontinued operations    
Net earnings attributable to FIS common stockholders $ 138   $ 55  
 

Amounts in table may not sum due to rounding.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions, except per share data)
 
    Exhibit B
 
March 31,     December 31,  
2017   2016  
Assets
Current assets:
Cash and cash equivalents $ 705 $ 683
Settlement deposits 507 520
Trade receivables, net 1,596 1,639
Settlement receivables 267 175
Other receivables 58 65
Prepaid expenses and other current assets 276 236
Deferred income taxes 101
Assets held for sale   863  
Total current assets 3,409 4,282
Property and equipment, net 610 626
Goodwill 14,184 14,178
Intangible assets, net 4,498 4,664
Computer software, net 1,682 1,608
Deferred contract costs, net 325 310
Other noncurrent assets 378   363  
Total assets $ 25,086   $ 26,031  
 
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,269 $ 1,146
Settlement payables 758 714
Deferred revenues 760 680
Current portion of long-term debt 351 332
Liabilities held for sale   279  
Total current liabilities 3,138 3,151
Long-term debt, excluding current portion 9,154 10,146
Deferred income taxes 2,389 2,484
Deferred revenues 21 19
Other long-term liabilities 394   386  
Total liabilities 15,096   16,186  
Equity:
FIS stockholders’ equity:
Preferred stock $0.01 par value
Common stock $0.01 par value 4 4
Additional paid in capital 10,419 10,380
Retained earnings 3,341 3,299
Accumulated other comprehensive earnings (loss) (298 ) (331 )
Treasury stock, at cost (3,588 ) (3,611 )
Total FIS stockholders’ equity 9,878 9,741
Noncontrolling interest 112   104  
Total equity 9,990   9,845  
Total liabilities and equity $ 25,086   $ 26,031  
 
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED

(In millions)

 
    Exhibit C
 
Three months ended March 31,
2017 2016
Cash flows from operating activities:
Net earnings $ 144 $ 59
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 339 293
Amortization of debt issue costs 12 5
Gain on sale of business (85 )
Stock-based compensation 26 30
Deferred income taxes (150 ) (64 )
Excess income tax benefit from exercise of stock options (8 )
Other operating activities, net (1 )
Net changes in assets and liabilities, net of effects from acquisitions and foreign currency:
Trade receivables 67 21
Settlement activity (36 ) (20 )
Prepaid expenses and other assets (50 ) (51 )
Deferred contract costs (37 ) (17 )
Deferred revenue 77 165
Accounts payable, accrued liabilities and other liabilities 147   (27 )
Net cash provided by operating activities 454   385  
 
Cash flows from investing activities:
Additions to property and equipment (44 ) (34 )
Additions to computer software (111 ) (111 )
Proceeds from sale of business 827
Other investing activities, net (1 ) (1 )
Net cash provided by (used in) investing activities 671   (146 )
 
Cash flows from financing activities:
Borrowings 1,381 1,639
Repayment of borrowings and capital lease obligations (2,443 ) (1,791 )
Excess income tax benefit from exercise of stock options 8
Proceeds from exercise of stock options 64 26
Treasury stock activity (17 ) (18 )
Dividends paid (95 ) (85 )
Other financing activities, net (4 ) (18 )
Net cash used in financing activities (1,114 ) (239 )
 
Effect of foreign currency exchange rate changes on cash 11   20  
 
Net increase in cash and cash equivalents 22 20
Cash and cash equivalents, at beginning of period 683   682  
Cash and cash equivalents, at end of period $ 705   $ 702  
 
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
 
      Exhibit D
 
Three months ended March 31, 2017
Integrated

Financial

Solutions

Global

Financial

Solutions

Corporate

and Other

Consolidated
Processing and services revenue $ 1,128 $ 1,019 $ 108 $ 2,255
Non-GAAP adjustments:
Acquisition deferred revenue adjustment (1)     3   3
Adjusted processing and services revenue $ 1,128   $ 1,019   $ 111   $ 2,258
 
  Three months ended March 31, 2016
Integrated

Financial

Solutions

  Global

Financial

Solutions

  Corporate

and Other

  Consolidated
Processing and services revenue $ 1,112 $ 990   $ 79 $ 2,181
Non-GAAP adjustments:
Acquisition deferred revenue adjustment (1)     81   81
Adjusted processing and services revenue 1,112   990   160   2,262
 

(1) See note (3) to Exhibit E.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP ORGANIC REVENUE GROWTH — UNAUDITED
(In millions)
 
            Exhibit D (continued)
 
Three months ended March 31,
2017 2016
Constant
Adjusted Currency Adjusted In Year Adjusted Organic
Revenue (1) FX Revenue Revenue (1) Adjustments (2) Base Growth (3)
Integrated Financial Solutions $ 1,128 $ 1 $ 1,129 $ 1,112 $ $ 1,112 1.5

 

%

Global Financial Solutions 1,019 1,019 990 (1 ) 989 3.0

 

%

Corporate and Other 111     111   160   (40 ) 120   (6.6

)

%

Total $ 2,258   $ 1   $ 2,259   $ 2,262   $ (41 ) $ 2,221   1.7

 

%

 

(1) See Note (3) to Exhibit E.

(2) In year adjustments primarily include removing two months of revenue from the PS&E divestiture, as well as removing revenue from other businesses divested by FIS.

(3) Organic growth percentages are calculated utilizing more precise amounts than the rounding to millions included in the tables above.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED
(In millions)
 
Exhibit D (continued)
 
Three months ended
March 31, 2017
Net cash provided by operating activities $ 454
Non-GAAP adjustments:
Capco acquisition related payments (1) 2
Acquisition, integration and severance payments (2) 15
Bond premium (3) 11
Settlement activity 36  
Adjusted cash flows from operations 518
Capital expenditures (155 )
Free cash flow $ 363  
 
 
Three months ended
March 31, 2016
Net cash provided by operating activities $ 385
Non-GAAP adjustments:
Capco acquisition related payments (1) 20
Acquisition, integration and severance payments (2) 58
Settlement activity 20  
Adjusted cash flows from operations 483
Capital expenditures (145 )
Free cash flow $ 338  
 

Free cash flow reflects adjusted cash flow from operations less capital expenditures. 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.

(1) Adjusted cash flow from operations and free cash flow for the three months ended March 31, 2017 and 2016 excludes payments for contingent purchase price and the New Hires and Promotions Incentive Plan associated with the 2010 acquisition of Capco. In accordance with the accounting guidance, contingent purchase price payments are included in financing activities on the Condensed Consolidated Statements of Cash Flows only to the extent they represent the original liability established at the acquisition date. Payments related to subsequent adjustments to the contingent purchase price are included in the net cash provided by operating activities.

(2) Adjusted cash flow from operations and free cash flow for the three months ended March 31, 2017 and 2016 excludes cash payments for certain acquisition, integration and severance expenses, net of related tax impact. The related tax impact totaled $9 million and $28 million for the three months ended March 31, 2017 and 2016, respectively.

(3) Adjusted cash flow from operations and free cash flow for the three months ended March 31, 2017 is adjusted for the $11 million one time bond premium payment, net of related tax impact of $7 million, on the redemption of our senior notes due March 2022.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
 
 

Exhibit E

 
Three months ended
March 31,
2017   2016
 
Net earnings from continuing operations attributable to FIS $ 138 $ 55
Provision for income taxes 79 31
Interest expense, net 93 93
Other, net (50 ) 5
 
Operating income, as reported 260 184
FIS depreciation and amortization from continuing operations, excluding purchase accounting amortization 156 139
FIS non-GAAP adjustments:
Purchase accounting amortization (1) 183 154
Acquisition, integration and severance (2) 80 79
Acquisition deferred revenue adjustment (3) 3   81
Adjusted EBITDA $ 682   $ 637
 
(1)       See note (1) to Exhibit E.
(2) See note (2) to Exhibit E.
(3) See note (3) to Exhibit E.
FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
 

Exhibit E (continued)

 
  Three months ended
March 31,
2017   2016
 
Earnings from continuing operations before income taxes $ 223 $ 90
Provision for income taxes 79 31
Net earnings attributable to noncontrolling interest (6 ) (4 )
Net earnings from continuing operations attributable to FIS 138 55
FIS non-GAAP adjustments:
Purchase accounting amortization (1) 183 154
Acquisition, integration and severance (2) 80 79
Acquisition deferred revenue adjustment (3) 3 81
Gain on sale of business (4) (85 )
Redemption of senior note due March 2022 (5) 25
Provision for income taxes on non-GAAP adjustments (58 ) (110 )
Total non-GAAP adjustments 148   204  
Adjusted net earnings (loss) from continuing operations, net of tax $ 286   $ 259  
 
Net earnings per share - diluted from continuing operations attributable to FIS common stockholders $ 0.41 $ 0.17
FIS non-GAAP adjustments:
Purchase accounting amortization (1) 0.55 0.47
Acquisition, integration and severance (2) 0.24 0.24
Acquisition deferred revenue adjustment (3) 0.01 0.25
Gain on sale of business (4) (0.26 )
Redemption of senior note due March 2022 (5) 0.08
Provision for income taxes on non-GAAP adjustments (0.17 ) (0.34 )
Adjusted net earnings (loss) per share - diluted from continuing operations attributable to FIS common stockholders $ 0.86   $ 0.79  
 
Weighted average shares outstanding-diluted 333   327  

Amounts in table may not sum due to rounding.

(1)

      See note (1) to Exhibit E.
(2) See note (2) to Exhibit E.
(3) See note (3) to Exhibit E.
(4) See note (4) to Exhibit E.
(5) See note (5) to Exhibit E.

FIDELITY NATIONAL INFORMATION SERVICES, INC.

SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED

(In millions)

Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the three months ended March 31, 2017 and 2016.

The adjustments are as follows:

(1) This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, trademarks and tradenames, and non-compete agreements. Beginning with the November 2015 acquisition of SunGard, this column also includes the amortization associated with purchase price adjustments to technology assets acquired.

(2) This item represents certain costs and other transactions which management deems non-operational primarily related to integration and severance activity from the SunGard acquisition.

(3) This item represents the impact of the purchase accounting adjustment to reduce SunGard's deferred revenues to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard under GAAP if the acquisition had not occurred, but was not recognized due to GAAP purchase accounting requirements.

(4) This item represents the pre-tax gain on the sale of the Public Sector and Education ("PS&E") businesses.

(5) This item represents the write-off of certain previously capitalized debt issuance costs and the payment of an $18 million bond premium associated with the early redemption of our senior notes due March 2022 during March 2017.

Source: Fidelity National Information Services

Ellyn Raftery, 904.438.6083
Chief Marketing Officer
FIS Global Marketing and Corporate Communications
ellyn.raftery@fisglobal.com
or
Peter Gunnlaugsson, 904.438.6603
Senior Vice President
FIS Investor Relations
pete.gunnlaugsson@fisglobal.com