Summary
Fiserv Inc. reported solid revenue growth of 4% for both the third quarter and the first nine months of 2011, reaching $1.06 billion and $3.18 billion respectively. This growth was primarily driven by the Payments segment, which saw a 7% increase in revenue, bolstered by new clients and increased transaction volumes. The company also successfully integrated two acquisitions in early 2011 and a significant acquisition of CashEdge in September 2011, which is expected to advance its digital payments strategy. Despite a slight decrease in operating income due to increased corporate expenses and debt extinguishment charges, the company's financial position remains strong, supported by substantial operating cash flow and an available credit facility. Financially, Fiserv Inc. demonstrated resilience with its recurring revenue model despite a challenging economic environment. The company managed its debt effectively, issuing new senior notes and repaying existing ones, resulting in a loss on early debt extinguishment but improving its long-term debt structure. While operating income saw a modest decline, this was largely attributable to one-time expenses and strategic investments, with core segments showing stable or growing profitability. The company's liquidity is robust, with significant cash on hand and substantial availability under its credit facility, positioning it well for future operations and strategic initiatives.
Financial Highlights
51 data points| Revenue | $1.06B |
| Cost of Revenue | $141.00M |
| Gross Profit | $922.00M |
| SG&A Expenses | $189.00M |
| Operating Expenses | $820.00M |
| Operating Income | $243.00M |
| Interest Expense | $45.00M |
| Net Income | $127.00M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.22 |
| Shares Outstanding (Basic) | 564.40M |
| Shares Outstanding (Diluted) | 570.40M |
Key Highlights
- 1Total revenue grew by 4% to $1.06 billion in Q3 2011 and by 4% to $3.18 billion in the first nine months of 2011.
- 2The Payments segment was the primary driver of revenue growth, increasing by 7% in both the third quarter and the first nine months of 2011.
- 3Fiserv completed the acquisition of CashEdge Inc. in September 2011 for approximately $460 million, aimed at advancing its digital payments strategy.
- 4Operating income for Q3 2011 decreased by 3% to $243 million, and for the first nine months of 2011 by 3% to $715 million, largely due to increased corporate expenses and debt extinguishment charges.
- 5The company reported a loss on early debt extinguishment of $24 million in Q3 2011 and $85 million in the first nine months of 2011, related to the repurchase and redemption of senior notes.
- 6Net cash provided by operating activities from continuing operations increased by 4% to $681 million in the first nine months of 2011.
- 7The company maintained a strong liquidity position with $281 million in cash and cash equivalents and $852 million in available borrowings under its revolving credit facility as of September 30, 2011.