Fidelity National Information Services, Inc. - 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed on December 7, 2009, by Fidelity National Information Services, Inc. (FIS). The report primarily serves to disclose Regulation FD materials furnished to investors and analysts during a conference held on the same date. The filing addresses the company's recent acquisition of Metavante Technologies, Inc. and the resulting changes to financial reporting methodologies.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it references the availability of supplemental financial data in attached exhibits (Exhibit 99.1 and 99.2). These exhibits contain:
- A preliminary financial outlook for 2010.
- Recasted revenues and operating income for the first three quarters of 2009 and full-year/fourth-quarter 2008.
- Pro forma results combining Metavante as if the merger occurred on January 1 of the respective years.
- Reporting of ClearPar operating results as discontinued operations.
- Reconciliations of non-GAAP measures to GAAP measures.
Material Changes
The primary material change disclosed is the alteration of financial reporting standards effective in the fourth quarter of 2009. FIS has begun reporting results consistent with the completed merger of Metavante Technologies, Inc. Additionally, the company is now classifying the operating results of ClearPar as discontinued operations. Supplemental data was previously furnished on November 30, 2009, to align historical data with this new reporting structure.
Guidance, Outlook, and Risks
Guidance and Outlook: A preliminary 2010 financial outlook is included in the Presentation Materials (Exhibit 99.1, page 92). The filing contains forward-looking statements regarding future plans and expectations.
Risks and Contingencies: Management highlighted several risks that could cause actual results to differ materially from projections:
- Changes in general economic, business, and political conditions, including financial market volatility.
- Governmental regulations.
- Substantial leverage limiting funds for acquisitions and investment.
- Revenue reduction due to consolidation or financial failures in the banking, retail, and financial services industries.
- Failure to adapt to technological or marketplace changes.
- Integration risks associated with the Metavante acquisition, including potential undisclosed liabilities, management issues, customer loss, and failure to achieve targeted cost savings.
- Competitive pressures on pricing.
Investor Verification Checklist
- Review Exhibit 99.1 (Presentation Materials) for the specific preliminary 2010 financial outlook figures.
- Examine Exhibit 99.2 for the detailed recasting of 2008 and 2009 financial data and the reconciliation of non-GAAP measures.
- Verify the pro forma impact of the Metavante merger on earnings accretion.
- Assess the impact of reporting ClearPar as discontinued operations on historical comparability.
- Monitor the company's leverage levels and their effect on future acquisition capabilities.