™ (NYSE:FIS), the world’s largest provider of banking and payments technology, today announced first quarter GAAP revenue of $1.52 billion compared to $1.48 billion a year earlier. GAAP net earnings from continuing operations attributable to common stockholders increased to $155 million, or $0.53 per diluted share, compared to $148 million, or $0.50 per diluted share in the prior year quarter.
Non-GAAP adjusted net earnings from continuing operations attributable to common stockholders increased to $197 million from $182 million in the first quarter 2013 and adjusted net earnings per diluted share increased 10 percent to $0.68 from $0.62 in the first quarter 2013. First quarter 2014 non-GAAP adjusted net earnings from continuing operations excludes acquisition-related purchase amortization of $0.13 per share and includes $0.02 per share related to contract settlement revenue. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
“We are pleased with our first quarter results and the execution of our growth strategy,” said Frank Martire, chairman and chief executive officer of FIS. “Our consistently strong performance reflects demand for FIS solutions which enable financial institutions to succeed while meeting increased efficiency, risk management and compliance requirements. We are confident in our 2014 outlook and long-term growth prospects.”
The following is a discussion of first quarter results by segment:
Financial Solutions revenue was $587 million, an increase of 2 percent on an organic basis, compared to $575 million in the first quarter 2013, reflecting continued growth in eBanking solutions, consulting and services. Financial Solutions adjusted EBITDA was $227 million, flat with the first quarter of 2013, while adjusted EBITDA margin was 38.7 percent compared to 39.6 percent a year earlier, reflecting a change in revenue mix and lower termination fees.
Payment Solutions GAAP revenue was $620 million and adjusted revenue was $629 million, an increase of 3 percent on an organic basis, compared to $612 million in the first quarter 2013 reflecting growth in image and output solutions and card solutions. Payment Solutions adjusted EBITDA rose 2 percent to $264 million compared to $258 million in the first quarter of 2013. Adjusted EBITDA margin was 42.1 percent compared to 42.2 percent a year earlier.
International Solutions revenue increased 8 percent to $314 million compared to $292 million in the first quarter 2013 and increased 10 percent on an organic basis excluding an unfavorable currency impact of $14 million. The increase in revenue reflects growth across all major regions. International Solutions adjusted EBITDA was $59 million, flat compared to first quarter of 2013. Adjusted EBITDA margin was 18.8 percent compared to 20.3 percent a year earlier, reflecting higher expenses related to the global financial institutions market and lower license revenue.
Corporate costs totaled $105 million in the first quarter 2014 compared to $117 million in the prior-year quarter, primarily reflecting lower administrative expenses. Interest expense, net of interest income, declined to $41 million in the first quarter of 2014 compared to $52 million in the first quarter 2013, reflecting lower debt costs resulting from attainment of investment grade ratings and debt refinancing in the first half of 2013. The effective tax rate was 33.3% in the first quarter of 2014 compared to 32.9% in the first quarter of 2013.