01—Abstract
Summary
Summary of the 10-K filed February 14, 2003. Cited figures are marked; the original filing is the authoritative source.
Fidelity National Information Services, Inc. (FIS), operating as Certegy Inc. in 2002, reported solid revenue growth of 7.7% to $1.0 billiona for the fiscal year ended December 31, 2002.
This growth was driven by both its Card Services and Check Services segments, with Check Services showing a notable 14.1% increase. Despite a slight dip in operating margins, the company maintained strong operating income and saw a 3.3% increase in net income to $90.0 millionb, translating to diluted earnings per share of $1.30. The company successfully managed its debt, reducing it by $15.8 million, and repurchased approximately $79.6 million of its common stock.
Key strategic initiatives, including international expansion and product development in its core payment processing and risk management services, are well underway, positioning Certegy for continued growth. Certegy's business is diversified across two primary segments: Card Services, which offers credit and debit card processing, merchant processing, and e-banking services, and Check Services, which provides check risk management and authorization.
The company's strong relationships with organizations like the Independent Community Bankers of America (ICBA) and Card Services for Credit Unions (CSCU) are critical competitive advantages, providing significant market share in the U.S. for its card processing services. Looking ahead, Certegy is focused on leveraging these strengths to expand its customer base and processing volumes, particularly in international markets, while continuing to innovate in its service offerings to adapt to evolving payment landscapes.
02—Key points
Key Highlights
- Revenues increased by 7.7% to $1.0 billion in 2002, driven by strong performance in both Card Services and Check Services.
- Check Services segment experienced significant revenue growth of 14.1%.
- Net income grew by 3.3% to $90.0 million, with diluted EPS of $1.30.
- The company reduced its long-term debt by $15.8 million and repurchased $79.6 million of its common stock.
- Certegy continues to expand its international presence in card processing services.
- The company reported stable operating income despite a slight decrease in overall operating margins.
- Key strategic alliances with ICBA and CSCU remain a critical differentiator for its Card Services segment.
03—Questions
Frequently Asked Questions
What is Certegy Inc.'s primary business focus?
Certegy Inc. provides credit and debit card processing services and check risk management services to financial institutions and merchants both in the U.S. and internationally. Its business is divided into two main segments: Card Services and Check Services.
How did Certegy Inc. perform financially in 2002?
In 2002, Certegy Inc. reported a 7.7% increase in revenues to $1.0 billion, with net income rising 3.3% to $90.0 million. Diluted earnings per share were $1.30. The company also managed its debt effectively and continued its share repurchase program.
What are the key drivers of Certegy's revenue growth?
Revenue growth was driven by increases in both its Card Services and Check Services segments. Specifically, Check Services saw a substantial 14.1% revenue increase, while Card Services grew by 4.6%. This growth is attributed to increased card processing volumes, merchant processing activities, and continued demand for check risk management services.
What is Certegy's strategy for future growth?
Certegy's strategy involves strengthening its position in the U.S. card market, expanding its customer base and processing volumes internationally, and increasing revenues from new and existing products and services. For Check Services, the strategy includes increasing market share, enhancing risk modeling tools, and expanding into new markets like check cashing and e-commerce.
04—Continue