Fiserv, Inc. (Nasdaq:FISV), a leading provider of information management systems and services to the financial and health benefit industries, today reported strong revenues and earnings for the first quarter of 2006.
Total revenues for the quarter increased 13 percent to $1,096.7 million compared to $973.1 million in 2005. First quarter earnings per share were $0.64 (including the effect of expensing share-based compensation of $0.05 per share) compared to $0.71 per share in 2005 (including $0.14 from a realized gain on investment and excluding $0.06 in pro forma share-based compensation). Adjusted earnings per share were $0.64 for the quarter compared to $0.52 for the first quarter of 2005.
"Our first quarter results reflect the value of our mix of businesses, which combined to deliver significant growth in revenue, earnings and cash flow," said Jeff Yabuki, president and chief executive officer of Fiserv. "In addition, we continued to allocate our capital to build long term shareholder value. Specifically, we invested in initiatives that will provide future organic growth and, at the same time, returned almost $230 million to our shareholders through our stock buyback plan.
"For the remainder of 2006, we will continue to focus on building our organic growth capabilities across the enterprise. We remain confident in achieving our growth target for the year," said Yabuki.
Among other highlights for the first quarter:
- The Company's adjusted organic revenue growth rate for the quarter increased from 5 percent in 2005 to 7 percent in 2006. Fiserv's financial segment adjusted organic growth rate rose to 8 percent compared to 5 percent in 2005
- Free cash flow was $143.3 million for the quarter, increasing 39 percent over the prior year comparable period primarily due to improved cash collections on accounts receivable
- Fiserv repurchased 5.4 million shares of its common stock in the first quarter of 2006 and had 7.7 million shares authorized for repurchase on March 31, 2006
- The company was recognized by Fortune magazine as one of the newest Fortune 500 companies
- Fiserv's credit union group signed a new core system relationship with $3 billion asset Digital Credit Union, Marlborough, Mass., one of the top 20 U.S. credit unions
- CareGain signed its first hosted software agreement for its core consumer-directed health care technology with Health Net, Inc., a top 10 managed care company providing health benefits to approximately 6.3 million members
- Fiserv was selected to provide services for the startup of Blue Healthcare Bank, which is an industrial bank in formation pending regulatory approval and currently operating under HealthBenefit Corporation. The new bank is being formed by the BlueCross and BlueShield Association and 32 of 38 state and regional Blue Plans to provide consumer- directed health program services to participating employers and insured members. Fiserv will provide the new "Blue" bank a core banking platform, card processing, item processing and health savings, health reimbursement and flexible spending account administration, along with other supporting business process outsourcing services. "This agreement reflects Fiserv's unique capabilities to serve the growing convergence of healthcare and financial services," Yabuki said.
OUTLOOK FOR 2006
Fiserv reaffirmed its full-year 2006 earnings estimate to be within a range of $2.46 to $2.53 per share. The company also reaffirmed its 2006 adjusted internal revenue growth rates (excluding customer reimbursements and prescription product revenues) to be in the mid-single digits for the Financial and Investment segments and low to mid-single digits in the Health segment.Download the document now 50.4 kb (Adobe Acrobat Document)