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.”
- 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.