Fiserv Reports Record Earnings for 2001; Strong Sales, Acquisitions Continue To Fuel Company's Growth
Fiserv Reports Record Earnings for 2001; Strong Sales, Acquisitions Continue To Fuel Company's Growth
January 21, 2002
For the three-month period ended December 31, 2001, Fiserv revenues were $496.7 million, a 14% increase over the $434.6 million reported for the fourth quarter of 2000. Net income per share-diluted (excluding realized gains from sale of investment) for the fourth quarter of 2001 was $0.27 per share, compared to $0.22 per share for the fourth quarter of 2000.
For the year ended December 31, 2001, Fiserv revenues were $1,890.5 million, a 14% increase over the $1,653.6 million reported in 2000. Net income per share-diluted (excluding realized gains from sale of investment) for the year ended December 31, 2001, was $1.07 per share, compared to $0.91 per share for 2000.
Net income per share for prior periods has been retroactively adjusted to reflect a 3-for-2 stock split effective in August 2001.
"Fiserv is pleased to report our record performance for 2001, with Company revenues approaching the $2 billion mark," said Leslie M. Muma, President and CEO of Fiserv, Inc. "Sales were strong, and we continued to enhance our market position in the financial services industry through strategic acquisition."
"We acquired 12 businesses in 2001, adding combined annual revenues of more than $380 million and over 4,000 new employees. For the year, our sales efforts generated more than 1,670 banking, lending, securities and insurance relationships. Building on these successes, we are on track for another strong year in 2002 as our pipelines for sales and acquisition opportunities continue to expand across all of our major business lines," Muma said. "Our earnings per share target for 2002 (before any realized gains from sale of investment) is approximately $1.35 to $1.37 per share, which includes an estimated positive impact of $0.09 per share for the adoption of Financial Accounting Standard No. 142, effective January 1, 2002, which requires that goodwill no longer be amortized."
Among significant client relationships signed recently, Fiserv Credit Processing signed a multi-year, multi-million dollar agreement with Conseco Services L.L.C.; Trustco Bank, a New York financial institution with assets exceeding $2 billion, selected Fiserv for item processing and service bureau processing through CBS Worldwide, and the Fiserv ICBS processing system was chosen by Bulgaria-based BUL. ITI's Premier II software was selected by $6.2 billion F.N.B. Corporation of Naples, Florida.
During 2001, Fiserv acquired additional resources for the financial services industry, including Benefit Planners, a third-party provider of administrative services for employee benefit programs; four Midwest item processing centers from Marshall & Ilsley Corporation; FSC, a leading provider of insurance rating software and services to the California insurance industry; Remarketing Services of America, Inc., a specialized provider of portfolio services for the automotive finance industry; EPSIIA Corporation, a provider of large-scale electronic archival, retrieval and presentment solutions; Catapult Technology Limited, a London-based provider of private banking, treasury management and international banking technology solutions and services; the Pennsylvania-based item processing operations of the FHLB Pittsburgh; NCR's bank processing outsourcing operations, including both account processing and item processing; NCSI, a specialized provider of insurance and information services to the flood insurance industry; Integrated Loan Services, a leading provider of bundled loan services for the financial industry; Trewit Inc. and its subsidiaries, Benesight and Harrington Benefit Services, Inc., both of which are third-party providers of health care benefits administration services; and FACT 400, a credit card solution for financial institutions throughout Latin America.
Fiserv, Inc. (Nasdaq: FISV) is an independent, full-service provider of integrated data processing and information management systems to the financial industry. As a leading technology resource, Fiserv serves more than 13,000 financial services providers worldwide, including banks, broker-dealers, credit unions, financial planners and investment advisers, insurance companies and agents, mortgage banks and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv also can be found on the Internet at www.fiserv.com.
The disclosure set forth above contains forward-looking statements, specifically Mr. Muma's statements regarding future earnings, earnings targets and business prospects. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, changes in customers' demand for the Corporation's products, pricing and other actions by competitors, and general changes in economic conditions or U.S. financial markets. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
FISERV, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Revenues $496,736 $434,581 $1,890,467 $1,653,606
-------- -------- ---------- ----------
Cost of revenues:
Salaries, commissions
and payroll
related costs 247,941 206,581 921,779 792,799
Data processing expenses,
rentals and
telecommunication
costs 33,277 31,055 126,360 115,029
Other operating
expenses 97,912 88,750 377,570 316,638
Depreciation and
amortization of property
and equipment 20,094 17,730 76,701 70,147
Amortization of
intangible assets 8,970 11,653 35,532 42,812
Amortization
(capitalization) of
internally generated
computer software-net (956) 1,071 (1,172) 1,875
----- ----- ------ -----
Total cost of
revenues 407,238 356,840 1,536,770 1,339,300
-------- -------- --------- ---------
Operating income 89,498 77,741 353,697 314,306
Interest expense - net (2,518) (4,988) (12,073) (22,089)
Realized gain from
sale of investment 1,077 1,983 5,404 7,818
----- ----- ----- -----
Income before
income taxes 88,057 74,736 347,028 300,035
Income tax provision 35,223 30,641 138,811 123,014
------ ------ ------- -------
Net income $ 52,834 $ 44,095 $208,217 $ 177,021
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Net income per share:
Basic $0.28 $0.24 $1.11 $0.96
Diluted $0.27 $0.23 $1.09 $0.93
Excluding realized gain
from sale of investment:
Diluted $0.27 $0.22 $1.07 $0.91
Diluted (excluding
goodwill
amortization) $0.29 $0.25 $1.16 $0.99
Shares used in computing net income
per share:
Basic 188,051 185,580 186,929 184,788
Diluted 192,696 190,733 191,584 189,804
FISERV, INC. AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Financial institution
outsourcing, systems
and services $416,142 $330,194 $1,544,721 $1,243,509
Securities processing
and trust services 58,892 84,309 273,504 341,155
All other and
corporate 21,702 20,078 72,242 68,942
------ ------ ------ ------
Total $496,736 $434,581 $1,890,467 $1,653,606
======= ======= ========= =========
Operating income:
Financial institution
outsourcing, systems
and services $79,418 $52,187 $321,193 $218,935
Securities processing
and trust services 7,643 24,346 35,673 97,125
All other and
corporate 2,437 1,208 (3,169) (1,754)
----- ----- ----- -----
Total $89,498 $77,741 $353,697 $314,306
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