30 October 2014

Fiserv reports net income rise in Q4

06 February 2014  |  747 views  |  0 Source: Fiserv

Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the fourth quarter and full year 2013.

In the fourth quarter of 2013, the company completed a two-for-one stock split. Accordingly, all share data and per share amounts are presented on a split-adjusted basis.

“Our fourth quarter performance capped off a strong year of delivering on our financial commitments including our 28th consecutive year of double digit adjusted earnings per share growth”

GAAP revenue in the fourth quarter was $1.26 billion compared with $1.15 billion in the fourth quarter of 2012. Adjusted revenue was $1.19 billion in the fourth quarter compared with $1.07 billion in the fourth quarter of 2012, an increase of 10 percent. For the full year, GAAP revenue was $4.81 billion compared with $4.44 billion in 2012. Adjusted revenue was $4.55 billion for the full year compared with $4.15 billion in 2012, an increase of 10 percent.

GAAP earnings per share from continuing operations in the fourth quarter was $0.84 compared with $0.58 in the fourth quarter of 2012. The fourth quarter 2013 GAAP earnings per share from continuing operations included a $0.21 per share gain on the partial divestiture of a business from StoneRiver Group, L.P. (“StoneRiver”), a joint venture in which the company owns a 49% interest. GAAP earnings per share from continuing operations for the full year was $2.44 compared with $2.15 in 2012.

Adjusted earnings per share from continuing operations in the fourth quarter increased 14 percent to $0.79, which excludes the StoneRiver gain, compared with $0.69 in the same period in 2012. Adjusted earnings per share from continuing operations for the year grew 18 percent to $2.99 compared with $2.54 in 2012.

“Our fourth quarter performance capped off a strong year of delivering on our financial commitments including our 28th consecutive year of double digit adjusted earnings per share growth,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “We enter 2014 with important market momentum and a focus on driving exceptional client value.”

Fourth Quarter and Full Year 2013

  • Adjusted revenue grew 10 percent over the prior year periods both in the quarter and for the full year to $1.19 billion and $4.55 billion, respectively.
  • Adjusted internal revenue growth in the quarter was 4 percent for the company, driven by 6 percent growth in the Payments segment and 2 percent growth in the Financial segment.
  • Adjusted internal revenue grew 3 percent for the full year of 2013, with 5 percent growth in the Payments segment. Financial segment adjusted internal revenue growth was flat compared with 2012.
  • Adjusted earnings per share increased 14 percent in the quarter to $0.79 and increased 18 percent for the full year of 2013 to a record $2.99, as compared with the prior year periods.
  • Free cash flow for the year was $887 million compared with $765 million in 2012, an increase of 16 percent.
  • Adjusted operating margin for the quarter was 30.5 percent, a decrease of 30 basis points compared with the fourth quarter of 2012, and increased 30 basis points for the full year to 30.0 percent.
  • The company completed a two-for-one stock split on December 16, 2013.
  • In October 2013, the company entered into a new $900 million term loan agreement that matures in 2018 and used the net proceeds from the loan to repay outstanding borrowings under its revolving credit facility. It also extended the maturity of its $2 billion revolving credit facility to 2018.
  • The company repurchased 2.3 million shares of common stock in the quarter for $124 million and for the full year repurchased 12.6 million shares for $587 million. The company had 18.5 million shares authorized for repurchase as of December 31, 2013.
  • The company signed 10 new DNA™ account processing clients in the quarter and 31 for the full year.
  • The company signed 77 Mobiliti™ clients in the quarter and 401 for the full year. As of December 31, 2013, the company has nearly 1,800 mobile banking clients.
  • The company signed 98 Popmoney® clients in the quarter and 307 for the full year. The network now includes more than 2,100 financial institutions.
  • The company signed 96 electronic bill payment clients and 44 debit processing clients in the quarter, and 335 electronic bill payment clients and 145 debit clients for the full year.

Outlook for 2014

Fiserv expects adjusted revenue growth in a range of 4 to 5 percent, and adjusted internal revenue growth of 4 to 4.5 percent. The company expects adjusted earnings per share in a range of $3.28 to $3.37, which represents growth of 10 to 13 percent over $2.99 in 2013.

“We expect continued internal revenue growth acceleration in 2014 resulting from our focus on high-quality revenue, delivered through our market-leading solutions,” said Yabuki.

Full figures available here. 

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