8-KOther Events

Fidelity National Information Services, Inc. 8-K Report (Aug 5, 2003)

Filed August 5, 2003For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS), filing as Certegy Inc. for this report, has issued a Form 8-K on August 5, 2003, reporting on a teleconference held on July 24, 2003, to discuss second-quarter 2003 financial results. The company provided insights into its revenue performance, highlighting an 8.1% increase in total revenue excluding the impact of its South American and merchant processing businesses, indicating underlying operational strength in its core segments. This non-GAAP measure is presented to offer a clearer view of ongoing operations. Additionally, Certegy provided a forward-looking projection for its fiscal year 2003 free cash flow, estimating it to be between $85 million and $95 million. This projection, derived from estimated cash flow from operations and capital expenditures, offers investors a perspective on the company's liquidity and its capacity for strategic financial actions such as share repurchases, debt repayment, and acquisitions. Investors should note that while these non-GAAP measures offer supplementary insights, they should be considered alongside GAAP financials and are subject to various risks and uncertainties detailed in the filing.

Key Highlights

  • 1Certegy Inc. reported an 8.1% increase in total revenue for Q2 2003, excluding the impact of its South American and merchant processing businesses, indicating positive performance in core operations.
  • 2Card services revenue saw a significant 10.6% increase when excluding the South American and merchant processing businesses, demonstrating strength in this key segment.
  • 3Management provided a non-GAAP measure of revenue growth, adjusting for specific business segments, to offer a more meaningful comparison of ongoing operational results.
  • 4Certegy projects fiscal year 2003 free cash flow to be between $85 million and $95 million.
  • 5The projected free cash flow is based on estimated cash flow from operations ($130-$140 million) and projected capital expenditures ($45 million).
  • 6The company emphasizes that non-GAAP financial measures are supplementary and should not replace GAAP measures, and may not be comparable to similar measures used by other companies.
  • 7The report includes a disclaimer about forward-looking statements, highlighting risks and uncertainties that could impact future performance, such as competitive pressures, economic conditions, and regulatory changes.

Frequently Asked Questions

Certegy reported an 8.1% increase in total revenue for the second quarter of 2003, excluding the effects of its South American and merchant processing businesses. This non-GAAP figure is intended to provide investors with a clearer view of the core business's performance. Card services revenue also showed a strong increase of 10.6% under the same exclusions.

The company projects its free cash flow for fiscal year 2003 to be in the range of $85 million to $95 million. This projection is based on an estimated cash flow from operations between $130 million and $140 million, offset by approximately $45 million in projected capital expenditures.

Certegy presented non-GAAP measures, such as revenue growth excluding certain segments and local currency revenue changes, to provide investors with a more meaningful and consistent evaluation of the company's core operating results and the performance of its international operations, respectively. Management believes these measures offer a better perspective than GAAP measures alone, especially for period-over-period comparisons.

The filing highlights several potential risks, including intense competition, the impact of general economic conditions on consumer spending, potential reversals in demand for card processing services or trends in check fraud, loss of key customer contracts, data security failures, changes in regulations affecting its business or its customers, and risks associated with international operations such as currency fluctuations and local economic factors.