10-KPeriod: FY2015

Fidelity National Information Services, Inc. Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) reported strong revenue growth in 2015, driven significantly by the acquisition of SunGard, which closed in November 2015. This strategic move expanded FIS's offerings into capital markets, asset management, and insurance, significantly broadening its global reach and service portfolio. The company reorganized into three reporting segments: Integrated Financial Solutions (IFS), Global Financial Solutions (GFS), and Corporate and Other, with SunGard's operations being integrated into the GFS segment. While the company experienced revenue increases, it also incurred substantial integration and transaction costs related to the SunGard acquisition. Management anticipates significant cost savings and synergies from this integration, targeting $200 million in annual synergy run-rate savings by the end of 2017. Despite a challenging economic environment impacting professional services, FIS demonstrated resilience, particularly in its recurring revenue streams from processing services, and maintained its commitment to shareholder returns through dividends and share repurchases.

Financial Highlights

56 data points
Beta

Revenue

$6.60B

33.4% Gross Margin

Net Income

$632.00M

9.6% Net Margin

EPS (Diluted)

$2.19

Total Assets

$26.20B

Cash & Equivalents

$682.00M

Free Cash Flow

$998.00M

Financial Statements
Beta
Revenue$6.60B
Gross Profit$2.20B
SG&A Expenses$1.10B
Operating Expenses$5.50B
Operating Income$1.10B
Interest Expense$199.00M
Net Income$632.00M
EPS (Basic)$2.22
EPS (Diluted)$2.19
Shares Outstanding (Basic)285.00M
Shares Outstanding (Diluted)289.00M

Key Highlights

  • 1Completed the significant acquisition of SunGard on November 30, 2015, substantially expanding its service offerings and global presence.
  • 2Reported consolidated revenues of $6.595 billion for 2015, an increase of 2.8% over 2014, largely due to acquisitions.
  • 3Integrated SunGard's operations into the Global Financial Solutions (GFS) segment, reflecting a strategic alignment.
  • 4Experienced operating income of $1.1 billion, though impacted by $171.3 million in transaction and integration costs related to acquisitions in 2015.
  • 5Maintained strong gross margins, with the IFS segment showing a 34.2% operating margin and GFS showing a 16.5% operating margin in 2015.
  • 6Continued to return value to shareholders through quarterly dividends ($0.26 per share) and an active share repurchase program, with $1.22 billion capacity remaining as of December 31, 2015.
  • 7Anticipates $200 million in annual synergy run-rate savings by the end of 2017 from the SunGard integration.

Frequently Asked Questions

The primary driver of FIS's revenue growth in 2015 was the acquisition of SunGard, which closed on November 30, 2015. This acquisition significantly expanded the company's service offerings and market reach, contributing to a 2.8% overall revenue increase to $6.595 billion.

Following a reorganization in 2015, FIS reports its financial performance across three main segments: Integrated Financial Solutions (IFS), Global Financial Solutions (GFS), and Corporate and Other. SunGard's operations were integrated into the GFS segment.

FIS's strategy involves integrating SunGard's operations to leverage complementary technology solutions and achieve economies of scale. The company anticipates significant cost savings and synergies, targeting $200 million in annual run-rate savings by the end of 2017. The acquisition aims to broaden FIS's portfolio and enhance its competitive position.

The SunGard acquisition significantly boosted revenues and assets but also led to substantial transaction and integration costs in 2015, impacting operating income. While the full benefits of synergies are expected over time, the immediate financial results reflect the costs associated with this large strategic move.