Fiserv Reports Record Earnings for 2001; Strong Sales, Acquisitions Continue To Fuel Company's Growth.Business Editors BROOKFIELD, Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--Jan. 21, 2002 Fiserv, Inc. (Nasdaq: FISV FISV Fiserv, Inc (stock symbol) ) announced today record earnings for 2001. 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 Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. 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 ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Fiserv, Inc. "Sales were strong, and we continued to enhance our market position in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. 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 New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of financial institution with assets exceeding $2 billion, selected Fiserv for item processing and service bureau processing through CBS (Cell Broadcast Service) See cell broadcast. Worldwide, and the Fiserv ICBS ICBS International Committee of the Blue Shield ICBS Incorporated Church Building Society ICBS International Conference of Banking Supervisors ICBS International Cigar Band Society ICBS Inter-Connected Business System processing system was chosen by Bulgaria-based BUL BUL, n.pr See backward upward laterally. . ITI's Premier II software was selected by $6.2 billion F.N.B. Corporation of Naples, Florida Naples is a city in Collier County, Florida, USA. As of 1 July 2006, the U.S. Census Bureau estimated the city's population at 21,804.[3] Naples is the County seat of Collier County, and is a Principal City of the Naples-Marco Island, Florida Metropolitan Statistical . 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 FSC See: Foreign Sales Corporation , 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 catapult (kăt`əpŭlt'), mechanism used to throw missiles in ancient and medieval warfare. At first, catapults were specifically designed to shoot spears or other missiles at a low trajectory (see bow and arrow). 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 FHLB Federal Home Loan Bank Pittsburgh; NCR's bank processing outsourcing operations, including both account processing and item processing; NCSI (Network Communications Services Interface) Also called "nixie," it is a protocol used to handle serial port communications on a network. NCSI applications talk to the NCSI driver rather than directly to the COM port, which allows redirection of the data to a , a specialized provider of insurance and information services See Information Systems. to the flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. 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 Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Fiserv, Inc. (Nasdaq: FISV) is an independent, full-service provider of integrated data processing Noun 1. integrated data processing - automatic data processing in which data acquisition and other stages or processing are integrated into a coherent system IDP automatic data processing, ADP - data processing by a computer 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 Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. and investment advisers, insurance companies and agents, mortgage banks and savings institutions. Headquartered in Brookfield, Wisconsin
Brookfield is a city in Waukesha County, Wisconsin, United States. The population was 38,649 at the 2000 census, but the city's population recently exceeded 40,000 people. , Fiserv also can be found on the Internet at www.fiserv.com. The disclosure set forth above contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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
====== ====== ======= =======
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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