Fiserv (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the fourth quarter and full year 2011.
GAAP revenue in the fourth quarter was $1.16 billion compared with $1.08 billion in the fourth quarter of 2010. Adjusted revenue was $1.08 billion in the fourth quarter compared with $1.03 billion in 2010, an increase of 6 percent. For the full year, GAAP revenue was $4.34 billion compared with $4.13 billion in 2010, and adjusted revenue was $4.07 billion compared with $3.93 billion in 2010, an increase of 4 percent.
GAAP earnings per share from continuing operations for the fourth quarter was $1.07 compared with $0.80, which included a loss from early debt extinguishment of $0.11 per share in the fourth quarter of 2010. GAAP earnings per share from continuing operations for the full year was $3.40, which included a loss from early debt extinguishment and severance expenses of $0.45 per share, compared with $3.34 in 2010, which included a loss from early debt extinguishment of $0.11 per share.
Adjusted earnings per share from continuing operations in the fourth quarter increased 20 percent to $1.27 compared with $1.06 in the comparable quarter of 2010. Adjusted earnings per share from continuing operations for the full year grew 13 percent to a record $4.58 compared with $4.05 in 2010.
"Revenue growth in the quarter was at its highest level in more than three years leading to our 26th consecutive year of double-digit adjusted EPS growth," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "Our market leading solutions have us well positioned to capitalize on important trends in the financial services industry."
Fourth Quarter and Full Year 2011
Adjusted revenue growth was 6 percent in the quarter and 4 percent for the full year.
Adjusted internal revenue growth was 4 percent in the quarter and 3 percent for the full year.
Adjusted operating margin increased 30 basis points in the quarter to 30.0 percent compared with the prior year period. For the full year, adjusted operating margin decreased 20 basis points to 29.2 percent compared with 2010.
Adjusted earnings per share increased 20 percent to $1.27 in the fourth quarter compared with $1.06 in the prior year period and increased 13 percent to $4.58 for the full year compared with $4.05 in 2010.
Free cash flow for the year was $734 million compared with $735 million in 2010.
The company repurchased 8.8 million shares for $533 million in 2011, which included 1.0 million shares in the fourth quarter. The company had approximately 4.7 million shares remaining under its existing share repurchase authorization at year-end.
The company signed 114 electronic bill payment clients and 54 debit clients in the quarter and 435 bill payment clients and 196 debit clients for the full year.
The company signed 219 person-to-person payments clients in the quarter and more than 580 in the full year. As of December 31, 2011, nearly 1,400 financial institutions have agreed to offer person-to-person payments from Fiserv.
A number of new and expanded client relationships occurred in the quarter including:
- Capital Bank, NA, based in Maryland with $335 million in assets, selected Premier from Fiserv as its account processing platform. The Bank also agreed to implement Consumer and Commercial Credit Full Service for credit card management, Retail Online™ and Business Online for online banking, Mobiliti for mobile banking, AccountCreateSM for online account opening, CheckFree RXP for retail and business bill payment, and ZashPay for person-to-person payments.
- Capitol Federal Savings Bank, a $9 billion bank based in Topeka, Kan., expanded its relationship with Fiserv. Capitol Federal will upgrade to the latest version of Corillian Online® and add integrated personal financial management capabilities via Personal Money Manager™ as well as integrated marketing capabilities via Campaign Manager. The bank also selected Mobiliti from Fiserv to deliver mobile banking via all three major access modes, and will add cross-channel money movement capabilities including person-to-person payments and the CheckFree RXP suite for bill payment, same day payments and account-to-account transfers.
- First Interstate BancSystem, Inc., a multi-state, $7.3 billion banking organization headquartered in Billings, Mon., selected Popmoney® for person-to-person payments and TransferNow® for account-to-account payments. An existing Fiserv client with an integrated suite of solutions, First Interstate Bank also uses the Premier account processing platform, check image processing, eStatements, Business Analytics, Asset Liability Manager, Prime™, CheckFree RXP for bill payment, CheckFree Small Business and Branch Source Capture™.
- IBERIABANK Corporation, an $11.6 billion bank headquartered in Louisiana, selected PEP+®, an online, real-time solution for quick and efficient origination and receipt of payments through the automated clearing house (ACH). The bank also uses Source Capture Solutions® from Fiserv, the Fiserv Clearing Network and a full suite of Fiserv debit solutions including debit processing and enhanced chargebacks, Premier Analytics™, CardVisionSM, ATM Device Driving and Monitoring, the ACCEL/Exchange® PIN-debit network and UChoose Rewards®.
- Lincoln Financial Group, a financial services firm headquartered in Pennsylvania with $153 billion in assets, agreed to implement Retirement Illustrator Manager from Fiserv. Fiserv partnered closely with Lincoln Financial to develop this innovative new solution that helps its customers with retirement forecasting and planning.
- Members Credit Union, a $232 million institution serving more than 50,000 members in Winston-Salem, N.C., selected the XP2® account processing platform from Fiserv. The credit union also chose Integrated DesktopSM with debit processing, LynxGate® for switch gateway processing and ConvergeIT®: IVR for audio response from Fiserv.
- Navigant Credit Union of Smithfield, R.I. with $1.2 billion in assets, chose the Acumen® account processing platform from Fiserv as well as several integrated solutions including the ACCEL/Exchange PIN-debit network, ATM Device Driving and Monitoring, WireXchange® for wire transfer processing, EnFact® network services for fraud detection, Nautilus® for document imaging, Prism Analytics™ for member relationship management, the Prologue™ accounting suite, and solutions for check and debit processing.
- Navy Federal Credit Union, the world's largest credit union with $47 billion in assets and 3.9 million members worldwide, expanded its relationship with Fiserv by selecting Corillian Online to transform its internet banking experience, Campaign Manager, Fraud Detection SystemSM and Personal Money Manager from Fiserv. The credit union currently uses numerous Fiserv solutions, including CheckFree RXP for bill payment, Nautilus for enterprise content management for mortgage lending, Secure Lending™ and UniFi® Pro Mortgage for loan origination capabilities.
- Pinnacle National Bank, a member of Pinnacle Financial Partners, Inc., the second largest bank-holding company headquartered in Tennessee with $4.9 billion in assets, agreed to implement the ACCEL/Exchange PIN-debit network, as well as Member Advantage, ATM Device Driving and Monitoring, Risk OfficeSM and debit processing services from Fiserv.
- PSB Bank N.V. in Curacao, with 25,000 customers and $160 million in assets, selected the Signature® bank platform from Fiserv for account processing. The bank will also use Teller™ and Aperio™ branch platform for Signature, AML Manager and Fraud Risk Manager™ from Fiserv.
- Regions Bank, a $127 billion institution headquartered in Birmingham, Ala. and operating in 16 states, expanded its relationship with Fiserv. An existing client of Corillian Online for retail online banking, the bank will implement Corillian® Business Online for small business banking. Regions will also expand its Fiserv-supported money movement options by adding interbank account-to-account transfer capabilities. The bank already offers a person-to-person payment option supported by Fiserv.
- Suncoast Schools Federal Credit Union, located in Tampa, Fla. and the 13th largest credit union in the United States with $5 billion in assets, selected the Acumen account processing platform from Fiserv. Suncoast will also use Teller Source Capture™ and card production and statement services from Fiserv.
Outlook for 2012
Fiserv expects 2012 adjusted revenue growth to be in a range of 4 to 6 percent and adjusted internal revenue growth to be in a range of 3.0 to 4.5 percent. The company also expects 2012 adjusted earnings per share to be in a range of $5.04 to $5.20, which represents growth of 10 to 14 percent over $4.58 in 2011.
"Two consecutive years of strong sales along with the introduction of new, highly valued solutions, have us well positioned to deliver additional client value and enhance growth," said Yabuki.