FIS Reports Third Quarter 2016 Results

FIS™ (NYSE:FIS), a global leader in financial services technology, today reported that third quarter revenue increased 46.2 percent on a reported basis to $2.3 billion from $1.6 billion in the prior year quarter. Operating income increased 17.7 percent to $398 million in the third quarter of 2016, from $338 million in the prior year quarter, with operating income margin of 17.2 percent for the quarter. Net earnings from continuing operations attributable to common stockholders was $185 million, or $0.56 per diluted share, compared to $175 million, or $0.62 per diluted share in the prior year quarter, a decrease of 9.7 percent on a per share basis.

For the third quarter, organic revenue increased 3.8 percent. Adjusted EBITDA increased 7.7 percent to $766 million in the third quarter 2016, from $712 million adjusted combined EBITDA in the prior year quarter, while adjusted EBITDA margin was 32.7 percent. Adjusted net earnings from continuing operations attributable to common stockholders was $330 million for the quarter, or $1.00 per share compared to $0.90 per share in the prior year period, an increase of 11.1 percent.

"FIS' consistently strong performance in 2016 continues with our third quarter results, delivering profitable growth and strong cash flow," said Gary Norcross, president and chief executive officer. "We are executing well, on track for the full year and focused on exceeding our plan, ensuring that we continue to deliver shareholder value."

The comparisons of reported results for 2016 to those in 2015 remain significantly impacted by the acquisition of SunGard, which closed on November 30, 2015, and will continue to be impacted for the remainder of 2016.

Segment Information
  • Integrated Financial Solutions (IFS):

Third quarter reported revenue grew 19.2 percent to $1.1 billion from $944 million reported in the prior year quarter. Organic revenue grew 4.1 percent. Adjusted EBITDA increased 1.0 percent to $457 million from $453 million adjusted combined EBITDA in the prior year quarter, and adjusted EBITDA margin was 40.7 percent. Adjusted combined EBITDA for the prior year quarter was $49 million greater than Adjusted EBITDA in the prior year quarter due to the acquisition of SunGard.
  • Global Financial Solutions (GFS):

Third quarter reported revenue grew 98.1 percent to $1.1 billion from $539 million reported in the prior year quarter. Organic revenue grew 4.5 percent. Adjusted EBITDA increased 13.3 percent to $343 million from $303 million adjusted combined EBITDA in the prior year quarter, and adjusted EBITDA margin was 32.1 percent. Adjusted combined EBITDA for the prior year quarter was $162 million greater than Adjusted EBITDA in the prior year quarter due to the acquisition of SunGard.
  • Corporate / Other:

Third quarter reported revenue increased 21.4 percent to $117 million compared to $96 million in the prior year quarter. Organic revenue declined 1.9 percent. Adjusted EBITDA loss was $34 million and is inclusive of $75 million of corporate expenses.

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