NeuroMetrix Inc
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Health Care : Health Care Equipment & Supplies | Small Cap Value
Company profile

NeuroMetrix, Inc. develops and commercializes health care products that utilize non-invasive neurostimulation. The Company is engaged in the designing, building and marketing of medical devices that stimulate nerves and analyze nerve response for diagnostic and therapeutic purposes. It has two principal product categories, which includes point-of-care neuropathy diagnostic tests and wearable neurostimulation devices. Its products include DPNCheck, Quell and ADVANCE System. DPNCheck is a quantitative nerve conduction test that is used to evaluate peripheral neuropathies, such as Diabetic peripheral neuropathy (DPN). Quell a wearable device for symptomatic relief and management of chronic pain. ADVANCE System is a platform for the performance of nerve conduction studies. DPNCheck customers include managed care organizations, endocrinologists, podiatrists and primary care physicians. ADVANCE System customers include occupational health, primary care, internal medicine and many others.

Closing Price
$3.64
Day's Change
-0.04 (-1.09%)
Bid
--
Ask
--
B/A Size
--
Day's High
3.67
Day's Low
3.45
Volume
(Light)
Volume:
23,881

10-day average volume:
71,663
23,881

Fiserv Reports First Quarter 2022 Results

7:01 am ET April 27, 2022 (BusinessWire) Print

Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology solutions, today reported financial results for the first quarter of 2022.

First Quarter 2022 GAAP Results

GAAP revenue for the company grew 10% to $4.14 billion in the first quarter of 2022 compared to the prior year period, with 18% growth in the Acceptance segment, 6% growth in the Fintech segment and 4% growth in the Payments segment.

GAAP earnings per share was $1.02 in the first quarter of 2022, an increase of 127% compared to the prior year period. GAAP operating margin was 20.5% in the first quarter of 2022, compared to 12.6% in the prior year period. The first quarter of 2022 includes a $147 million pre-tax gain from the previously disclosed sale of certain merchant contracts from a merchant alliance joint venture. Net cash provided by operating activities was $815 million in the first quarter of 2022 compared to $952 million in the prior year period.

"We had a strong start to the year as we posted double-digit organic revenue and adjusted earnings per share growth, both above the outlook range we provided for the year," said Frank Bisignano, President and Chief Executive Officer of Fiserv. "We delivered these results while continuing our strategy of investing in innovation for growth."

First Quarter 2022 Non-GAAP Results and Additional Information Adjusted revenue increased 10% to $3.91 billion in the first quarter of 2022 compared to the prior year period. Organic revenue growth was 11% in the first quarter of 2022, led by 20% growth in the Acceptance segment, 6% growth in the Fintech segment and 5% growth in the Payments segment. Adjusted earnings per share increased 20% to $1.40 in the first quarter of 2022 compared to the prior year period. Adjusted operating margin increased 60 basis points to 32.0% in the first quarter of 2022 compared to the prior year period. Free cash flow was $603 million in the first quarter of 2022 compared to $821 million in the prior year period. The company repurchased 5.1 million shares of common stock for $500 million in the first quarter of 2022. In March 2022, Fiserv was named among the World's Most Innovative Companies by Fast Company for the second consecutive year. In April 2022, the company completed its previously announced acquisition of Finxact, Inc., a developer of cloud-native banking solutions powering digital transformation throughout the financial services sector.

Outlook for 2022

Fiserv continues to expect organic revenue growth of 7% to 9% and adjusted earnings per share in a range of $6.40 to $6.55, representing growth of 15% to 17%, for 2022.

"We remain confident in our 2022 outlook in spite of challenging macroeconomic factors that create some uncertainty," said Bisignano. "We believe the resilience of our business, the strength and breadth of our assets and our robust pipeline of innovation provide the tools to deliver value in any environment."

Earnings Conference Call

The company will discuss its first quarter 2022 results in a live webcast at 7 AM CT on Wednesday, April 27, 2022. The webcast, along with supplemental financial information, can be accessed on the investor relations section of the Fiserv website at investors.fiserv.com. A replay will be available approximately one hour after the conclusion of the live webcast.

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover(R) cloud-based point- of-sale and business management platform. Fiserv is a member of the S&P 500(R) Index, the FORTUNE(R) 500, and has been recognized as one of FORTUNE World's Most Admired Companies(R) for 11 of the past 14 years and named among the World's Most Innovative Companies by Fast Company for two consecutive years. Visit fiserv.com and follow on social media for more information and the latest company news.

Use of Non-GAAP Financial Measures

In this news release, the company supplements its reporting of information determined in accordance with generally accepted accounting principles ("GAAP"), such as revenue, operating income, operating margin, net income attributable to Fiserv, earnings per share and net cash provided by operating activities, with "adjusted revenue," "organic revenue," "organic revenue growth," "adjusted operating income," "adjusted operating margin," "adjusted net income," "adjusted earnings per share," "adjusted earnings per share growth," and "free cash flow." Management believes that adjustments for certain non-cash or other items and the exclusion of certain pass-through revenue and expenses should enhance shareholders' ability to evaluate the company's performance, as such measures provide additional insights into the factors and trends affecting its business. Therefore, the company excludes these items from its GAAP financial measures to calculate these unaudited non-GAAP measures. The corresponding reconciliations of these unaudited non-GAAP financial measures to the most comparable GAAP measures are included in this news release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash and other items described below that are excluded from the non-GAAP outlook measures. See page 14 for additional information regarding the company's forward- looking non-GAAP financial measures.

Examples of non-cash or other items may include, but are not limited to, non-cash intangible asset amortization expense associated with acquisitions; non-cash impairment charges; restructuring costs; severance costs; net charges associated with debt financing activities; merger and integration costs; gains or losses from the sale of businesses, certain assets or investments; certain discrete tax benefits and expenses; and non-cash deferred revenue adjustments arising from acquisitions. The company excludes these items to more clearly focus on the factors management believes are pertinent to the company's operations, and management uses this information to make operating decisions, including the allocation of resources to the company's various businesses.

The company adjusts its non-GAAP results to exclude amortization of acquisition-related intangible assets as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of acquisition-related intangible asset amortization supplements GAAP information with a measure that can be used to assess the comparability of operating performance. Although the company excludes amortization from acquisition-related intangible assets from its non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Management believes organic revenue growth is useful because it presents adjusted revenue growth excluding the impact of foreign currency fluctuations, acquisitions, dispositions and the company's Output Solutions postage reimbursements and including deferred revenue purchase accounting adjustments. Management believes free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions. Management believes this supplemental information enhances shareholders' ability to evaluate and understand the company's core business performance.

These unaudited non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be considered in addition to, and not as a substitute for, revenue, operating income, operating margin, net income attributable to Fiserv, earnings per share and net cash provided by operating activities or any other amount determined in accordance with GAAP.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings per share, adjusted earnings per share growth and other statements regarding our future financial performance. Statements can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "could," "should," or words of similar meaning. Statements that describe the company's future plans, objectives or goals are also forward-looking statements.

Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that could cause the company's actual results to differ materially include, among others, the following, many of which may continue to be amplified by the COVID-19 pandemic: the duration and intensity of the COVID-19 pandemic, including how quickly the global economy recovers from the impact of the pandemic; governmental and private sector responses to the COVID-19 pandemic and the impact of such responses on the company; the impact of the COVID-19 pandemic on the company's employees, clients, vendors, supply chain, operations and sales; the company's ability to compete effectively against new and existing competitors and to continue to introduce competitive new products and services on a timely, cost-effective basis; changes in customer demand for the company's products and services; the ability of the company's technology to keep pace with a rapidly evolving marketplace; the success of the company's merchant alliances, some of which are not controlled by the company; the impact of a security breach or operational failure on the company's business including disruptions caused by other participants in the global financial system; the failure of the company's vendors and merchants to satisfy their obligations; the successful management of credit and fraud risks in the company's business and merchant alliances; changes in local, regional, national and international economic or political conditions and the impact they may have on the company and its customers; the effect of proposed and enacted legislative and regulatory actions affecting the company or the financial services industry as a whole; the company's ability to comply with government regulations and applicable card association and network rules; the protection and validity of intellectual property rights; the outcome of pending and future litigation and governmental proceedings; the company's ability to successfully identify, complete and integrate acquisitions, and to realize the anticipated benefits associated with the same; the impact of the company's strategic initiatives; the company's ability to attract and retain key personnel; volatility and disruptions in financial markets that may impact the company's ability to access preferred sources of financing and the terms on which the company is able to obtain financing or increase its costs of borrowing; adverse impacts from currency exchange rates or currency controls; changes in corporate tax and interest rates; and other factors included in "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2021, and in other documents that the company files with the Securities and Exchange Commission, which are available at http://www.sec.gov. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this news release.

                                                                                                   Fiserv, Inc.
                                                                                    Condensed Consolidated Statements of Income
                                                                                (In millions, except per share amounts, unaudited)
                                 Three Months Ended                                                                                       Three Months Ended
                                      March 31,                                                                                                March 31,
                                                                           2022                     2021          
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Revenue                                                                                                                          
Processing and services                                                                                $                3,364                      $                3,054  
Product                                                                                                774                      701  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total revenue                                                                                        4,138                    3,755  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Expenses                                                                                                                         
Cost of processing and services                                                                      1,436                    1,397  
Cost of product                                                                                        536                      510  
Selling, general and administrative                                                                  1,467                    1,373  
Gain on sale of assets                                                                                (147 )                            --  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total expenses                                                                                       3,292                    3,280  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating income                                                                                       846                      475  
Interest expense, net                                                                                 (168 )                                      (176 )
Other (expense) income                                                                                  (4 )                                        21  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                            
Income before income taxes and income from investments in unconsolidated affiliates                    674                      320  
Income tax provision                                                                                   (98 )                                       (18 )
Income from investments in unconsolidated affiliates                                                   106                       16  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                            
Net income                                                                                             682                      318  
Less: net income attributable to noncontrolling interests                                               13                       14  
                                                                                    -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                            
Net income attributable to Fiserv                                                                      $                  669                      $                  304  
                                                                                    ==================== ==================== ==================== ==================== ==================== ====================
                                                                            
GAAP earnings per share attributable to Fiserv - diluted                                               $                 1.02                      $                 0.45  
Earnings per share is calculated using actual, unrounded amounts.
                                                                                                              Fiserv, Inc.
                                                                                                        Reconciliation of GAAP to
                                                                                           Adjusted Net Income and Adjusted Earnings Per Share
                                                                                           (In millions, except per share amounts, unaudited)
                       Three Months Ended                                                                                                  Three Months Ended
                            March 31,                                                                                                           March 31,
                                                               2022                       2021  
                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                            
GAAP net income attributable to Fiserv                                             $                  669                        $                  304    
Adjustments:                                                                                                                                               
                                                                                    22                        125  
   Merger and integration costs (1)
                                                                                    52                         10  
   Severance costs (2)
                                                                                   475                        506  
      Amortization of acquisition-related intangible assets (3)
                                                                                   (56 )                              --  
   Non wholly-owned entity activities (4)
                                                                                  (147 )                              --  
   Gain on sale of assets (5)
                                                                                   (94 )                                        (148 )
   Tax impact of adjustments (6)
                                                                -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted net income                                                                $                  921                      $                    $                  797  
                                                                ==================== ==================== ==================== ==================== ==================== ==================== ====================
GAAP earnings per share attributable to Fiserv                                     $                 1.02                      $                    $                 0.45  
Adjustments - net of income taxes:                                           
                                                                                  0.03                       0.14  
   Merger and integration costs (1)
                                                                                  0.06                       0.01  
   Severance costs (2)
                                                                                  0.57                       0.57  
      Amortization of acquisition-related intangible assets (3)
                                                                                 (0.07 )                              --  
   Non wholly-owned entity activities (4)
                                                                                 (0.21 )                              --  
   Gain on sale of assets (5)
                                                                -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
See pages 3-4 for disclosures related to the use of non-GAAP financial measures. Earnings per share is calculated using actual, unrounded amounts.
(1)                                              Represents acquisition and related integration costs incurred in connection with various acquisitions, including those related to the First Data acquisition. Merger and integration costs in the first quarter of 2022 includes $10 million of share-based compensation attributable to various acquisitions. First Data integration costs in the first quarter of 2021 primarily include $52 million of third-party professional service fees associated with integration activities; $18 million of incremental share- based compensation, including the fair value of stock awards assumed by Fiserv; and $45 million of other integration- related compensation costs. Represents acquisition and related integration costs incurred in connection with various acquisitions, including those related to the First Data acquisition. Merger and integration costs in the first quarter of 2022 includes $10 million of share-based compensation attributable to various acquisitions. First Data integration costs in the first quarter of 2021 primarily include $52 million of third-party professional service fees associated with integration activities; $18 million of incremental share- based compensation, including the fair value of stock awards assumed by Fiserv; and $45 million of other integration- related compensation costs.
(2)                                              Represents severance costs associated with the achievement of expense management initiatives which, in the prior year period, included costs related to the First Data acquisition.                                                                                                                                                                                                                                     Represents severance costs associated with the achievement of expense management initiatives which, in the prior year period, included costs related to the First Data acquisition.
(3)                                              Represents amortization of intangible assets acquired through various acquisitions, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, and financing costs and debt discounts. See additional information on page 13 for an analysis of the company's amortization expense.                                                                                                                                                                                  Represents amortization of intangible assets acquired through various acquisitions, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, and financing costs and debt discounts. See additional information on page 13 for an analysis of the company's amortization expense.
(4)                                              Represents the company's share of amortization of acquisition-related intangible assets at its unconsolidated affiliates, as well as the minority interest share of amortization of acquisition-related intangible assets at its subsidiaries in which the company holds a controlling financial interest. This adjustment in the first quarters of 2022 and 2021 also includes net gains totaling $91 million and $40 million, respectively, primarily related to certain equity investment transactions.                                                                                                                                       Represents the company's share of amortization of acquisition-related intangible assets at its unconsolidated affiliates, as well as the minority interest share of amortization of acquisition-related intangible assets at its subsidiaries in which the company holds a controlling financial interest. This adjustment in the first quarters of 2022 and 2021 also includes net gains totaling $91 million and $40 million, respectively, primarily related to certain equity investment transactions.
(5)                                              Represents a gain associated with the sale of certain merchant contracts in conjunction with the mutual termination of one of the company's merchant alliance joint ventures.                                                                                                                                                                                                                                     Represents a gain associated with the sale of certain merchant contracts in conjunction with the mutual termination of one of the company's merchant alliance joint ventures.
                                                                                     Fiserv, Inc.
                                                                             Financial Results by Segment
                                                                               (In millions, unaudited)
                   Three Months Ended                                                                          Three Months Ended
                        March 31,                                                                                   March 31,
                                                        2022                     2021  
                                                         -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Company                                                                                                  
Revenue                                                                     $                4,138                      $                3,755  
Adjustments:                                                                                          
                                                                           (239 )                                      (205 )
   Output Solutions postage reimbursements
                                                                              7                        7  
   Deferred revenue purchase accounting adjustments
                                                         -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted revenue                                                            $                3,906                      $                3,557  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating income                                                            $                  846                      $                  475  
Adjustments:                                                        
                                                                             22                      125  
   Merger and integration costs (1)
                                                                             52                       10  
   Severance costs
                                                                            475                      506  
   Amortization of acquisition-related intangible assets
                                                                           (147 )                            --  
   Gain on sale of assets
                                                         -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted operating income                                                   $                1,248                      $                1,116  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating margin                                                           20.5 %                                      12.6 %
Adjusted operating margin                                                  32.0 %                                      31.4 %
Merchant Acceptance ("Acceptance") (2)                                                                
Revenue                                                                     $                1,653                      $                1,397  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating income                                                            $                  470                      $                  387  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating margin                                                           28.4 %                                      27.7 %
Financial Technology ("Fintech") (2)                                                                  
Revenue                                                                     $                  778                      $                  736  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating income                                                            $                  275                      $                  246  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
Operating margin                                                           35.4 %                                      33.4 %
Payments and Network ("Payments")                                                                     
Revenue                                                                     $                1,462                      $                1,405  
Adjustments:                                                                                          
                                                                              7                        7  
   Deferred revenue purchase accounting adjustments
                                                         -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted revenue                                                            $                1,469                      $                1,412  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
                                                 
Operating income                                                            $                  618                      $                  578  
Adjustments:                                                                                          
                                                                              7                        7  
   Deferred revenue purchase accounting adjustments
                                                         -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted operating income                                                   $                  625                      $                  585  
                                                         ==================== ==================== ==================== ==================== ==================== ====================
                                                 
Operating margin                                                           42.3 %                                      41.1 %
                                                                              Fiserv, Inc.
                                                                  Financial Results by Segment (cont.)
                                                                        (In millions, unaudited)
                   Three Months Ended
                        March 31,                                                                         Three Months Ended
                                                                                                              March 31,
                                                               2022                                 2021       
                                                                                              
                                                         ----------------------- ------ -------------------- ----------------------- -------------- --------------------
Corporate and Other                                                                        
Revenue                                                                        $    245                         $            217  
Adjustments:                                                                               
                                                                (239 )                                   (205 )
   Output Solutions postage reimbursements
                                                         ----------------------- ------ -------------------- ----------------------- -------------- --------------------
Adjusted revenue                                                               $      6                         $             12  
                                                         ======================= ====== ==================== ======================= ============== ====================
Operating loss                                                                 $   (517 )                                          $           (736 )
Adjustments:                                                                               
                                                                  15                   118  
   Merger and integration costs
                                                                  52                    10  
   Severance costs
                                                                 475                   506  
   Amortization of acquisition-related intangible assets
                                                                (147 )                         --  
   Gain on sale of assets
                                                         ----------------------- ------ -------------------- ----------------------- -------------- --------------------
See pages 3-4 for disclosures related to the use of non-GAAP financial measures. Operating margin percentages are calculated using actual, unrounded amounts.
(1)                                                  Includes the deferred revenue purchase accounting adjustments in the Payments segment. Includes the deferred revenue purchase accounting adjustments in the Payments segment.
                                                                                                    Fiserv, Inc.
                                                                                 Condensed Consolidated Statements of Cash Flows (1)
                                                                                              (In millions, unaudited)
                                  Three Months Ended                                                                                         Three Months Ended
                                       March 31,                                                                                                  March 31,
                                                                              2022                     2021          
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash flows from operating activities                                                                                                
Net income                                                                                                $                  682                      $                  318  
Adjustments to reconcile net income to net cash provided by operating activities:                 
                                                                                                          313                      276  
   Depreciation and other amortization
                                                                                                          486                      521  
   Amortization of acquisition-related intangible assets
                                                                                                           11                       13  
   Amortization of financing costs and debt discounts
                                                                                                           61                       66  
   Share-based compensation
                                                                                                         (183 )                                       (70 )
   Deferred income taxes
                                                                                                         (147 )                            --  
   Gain on sale of assets
                                                                                                         (106 )                                       (16 )
   Income from investments in unconsolidated affiliates
                                                                                                           19                        3  
   Distributions from unconsolidated affiliates
                                                                                               --                        6  
   Non-cash impairment charges
                                                                                                            3                      (18 )
   Other operating activities
                                                                                                                                                                              
   Changes in assets and liabilities, net of effects from acquisitions:
                                                                                                          (60 )                                      (129 )
      Trade accounts receivable
                                                                                                         (130 )                                       (39 )
      Prepaid expenses and other assets
                                                                                                          (88 )                                       (92 )
      Contract costs
                                                                                                          (78 )                                       102  
      Accounts payable and other liabilities
                                                                                                           32                       11  
      Contract liabilities
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash provided by operating activities                                                                 815                      952  
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash flows from investing activities                                                                                                                                          
Capital expenditures, including capitalized software and other intangibles                               (331 )                                      (234 )
Proceeds from sale of assets                                                                              175           --  
Payments for acquisition of businesses, net of cash acquired                                   --                     (281 )
Distributions from unconsolidated affiliates                                                               61                       32  
Purchases of investments                                                                                   (8 )                                      (227 )
Proceeds from sale of investments                                                                           3                        2  
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash used in investing activities                                                                    (100 )                                      (708 )
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash flows from financing activities                                                                                                                                          
Debt proceeds                                                                                             705                    2,182  
Debt repayments                                                                                        (1,086 )                                    (1,725 )
Net proceeds from (repayments of) commercial paper and short-term borrowings                              218                      (56 )
Proceeds from issuance of treasury stock                                                                   43                       43  
Purchases of treasury stock, including employee shares withheld for tax obligations                      (544 )                                      (742 )
Settlement activity, net                                                                                 (400 )                                       (82 )
Distributions paid to noncontrolling interests and redeemable noncontrolling interests                    (13 )                                       (10 )
Other financing activities                                                                     --                       (3 )
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash used in financing activities                                                                  (1,077 )                                      (393 )
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effect of exchange rate changes on cash and cash equivalents                                              (10 )                                        (8 )
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net change in cash and cash equivalents                                                                  (372 )                                      (157 )
Cash and cash equivalents, beginning balance                                                            3,205                    2,569  
                                                                                       -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(1) The company revised, for comparable purposes with the current period's presentation, the consolidated statement of cash flows presentation for the three months ended March 31, 2021 to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents. The company revised, for comparable purposes with the current period's presentation, the consolidated statement of cash flows presentation for the three months ended March 31, 2021 to include cash and cash equivalents within settlement assets as a component of total cash and cash equivalents.
                                                              Fiserv, Inc.
                                                  Condensed Consolidated Balance Sheets
                                                        (In millions, unaudited)
                                                         
                                                  March 31,                               December 31,
                                                                       2022                                      2021
                                                    ----------------------------------------  ----------------------------------------
Assets                                                                 863                    835
Cash and cash equivalents                                              $                                         $
Trade accounts receivable - net                         2,911                  2,860
Prepaid expenses and other current assets                            1,429                  1,523
Settlement assets                                                   13,240                 13,652
                                                    -------------------- -------------------- -------------------- --------------------
Total current assets                                                18,443                 18,870
Property and equipment - net                            1,729                  1,742
Customer relationships - net                            9,482                  9,991
Other intangible assets - net                           3,960                  4,018
Goodwill                                                            36,538                 36,433
Contract costs - net                                      840                    811
Investments in unconsolidated affiliates                             2,579                  2,561
Other long-term assets                                               1,899                  1,823
                                                    -------------------- -------------------- -------------------- --------------------
Total assets                                                           $               75,470                    $               76,249
                                                    ==================== ==================== ==================== ====================
Liabilities and Equity                                     
Accounts payable and accrued expenses                                  $                3,327                    $                3,550
Short-term and current maturities of long-term debt                    552                    508
Contract liabilities                                                   611                    585
Settlement obligations                                              13,240                 13,652
                                                    -------------------- -------------------- -------------------- --------------------
Total current liabilities                                           17,730                 18,295
Long-term debt                                                      20,518                 20,729
Deferred income taxes                                                3,983                  4,172
Long-term contract liabilities                                         230                    225
Other long-term liabilities                                            867                    878
                                                    -------------------- -------------------- -------------------- --------------------
Total liabilities                                                   43,328                 44,299
Redeemable noncontrolling interests                                    164                    278
Fiserv shareholders' equity                                         31,272                 30,952
Noncontrolling interests                                               706                    720
                                                    -------------------- -------------------- -------------------- --------------------
Total equity                                                        31,978                 31,672
                                                    -------------------- -------------------- -------------------- --------------------
                                                                                     Fiserv, Inc.
                                                            Selected Non-GAAP Financial Measures and Additional Information
                                                                               (In millions, unaudited)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Organic Revenue Growth (1)                                                                      Three Months Ended
                                                                                                     March 31,
               2022                 2021               Growth
-------------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------
Total Company                                                                                             
                                              $          3,906                        $          3,557    
   Adjusted revenue
                                         31       --    
   Currency impact (2)
                                        (11 )                        --    
   Acquisition adjustments
                                         (6 )                                   (17 )                     
   Divestiture adjustments
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                              $          3,920                        $          3,540           11 %
   Organic revenue
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                       
Acceptance
                                              $          1,653                        $          1,397    
   Adjusted revenue
                                         22       --    
   Currency impact (2)
                                        (11 )                        --    
   Acquisition adjustments
                             --                   (5 )                     
   Divestiture adjustments
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                              $          1,664                        $          1,392           20 %
   Organic revenue
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                       
Fintech
                                              $            778                        $            736    
   Adjusted revenue
                                          1       --    
   Currency impact (2)
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                              $            779                        $            736            6 %
   Organic revenue
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                       
Payments
                                              $          1,469                        $          1,412    
   Adjusted revenue
                                          8       --    
   Currency impact (2)
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                              $          1,477                        $          1,412            5 %
   Organic revenue
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                       
Corporate and Other
                                              $              6                        $             12    
   Adjusted revenue
                                         (6 )                                   (12 )                     
   Divestiture adjustments
                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
See pages 3-4 for disclosures related to the use of non-GAAP financial measures. Organic revenue growth is calculated using actual, unrounded amounts.
(1)                                                Organic revenue growth is measured as the change in adjusted revenue (see pages 8-9) for the current period excluding the impact of foreign currency fluctuations and revenue attributable to acquisitions and dispositions, divided by adjusted revenue from the prior period excluding revenue attributable to dispositions. Organic revenue growth is measured as the change in adjusted revenue (see pages 8-9) for the current period excluding the impact of foreign currency fluctuations and revenue attributable to acquisitions and dispositions, divided by adjusted revenue from the prior period excluding revenue attributable to dispositions.
                                                                                                                     Fiserv, Inc.
                                                                                        Selected Non-GAAP Financial Measures and Additional Information (cont.)
                                                                                                               (In millions, unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Free Cash Flow                                                                                                                                                               Three Months Ended
                                                                                                                                                                                  March 31,
                                                                                                       2022             2021       
--------------------------------------------------------------------------------------------------------------------  -------------------- ------- --------------------                      -------------------- -------------- --------------------
Net cash provided by operating activities                                                                             $     815                        $            952  
Capital expenditures                                                                                    (331 )                                  (234 )
Adjustments:                                                                                                                         
                                                                                                         (13 )                                   (10 )
   Distributions paid to noncontrolling interests and redeemable noncontrolling interests
                                                                                                          61                   32  
   Distributions from unconsolidated affiliates included in cash flows from investing activities
                                                                                                         102                  105  
   Severance, merger and integration payments
                                                                                                         (21 )                                   (24 )
   Tax payments on adjustments
                                                                                                         (10 )                        --  
   Other
                                                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Total Amortization (1)                                                                     Three Months Ended
                                                                                                March 31,
                                               2022     2021
--------------------------------------------------------------  -------------------- ----                      -------------------- ----
Acquisition-related intangible assets                           $  486                      $  521
Capitalized software and other intangibles       80       56
Purchased software                               58       65
Financing costs and debt discounts               11       13
Sales commissions                                25       24
Deferred conversion costs                        16       12
                                                                -------------------- ----                      -------------------- ----
See pages 3-4 for disclosures related to the use of non-GAAP financial measures.
                 

Fiserv, Inc.

Full Year Forward-Looking Non-GAAP Financial Measures

Reconciliations of unaudited non-GAAP financial measures to the most comparable GAAP measures are included in this news release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of these items that are excluded from the non-GAAP outlook measures. The company's forward-looking non-GAAP financial measures for 2022, including organic revenue growth, adjusted earnings per share and adjusted earnings per share growth, are designed to enhance shareholders' ability to evaluate the company's performance by excluding certain items to focus on factors and trends affecting its business.

Organic Revenue Growth - The company's organic revenue growth outlook for 2022 excludes the impact of foreign currency fluctuations, acquisitions, dispositions and the impact of the company's Output Solutions postage reimbursements and includes deferred revenue purchase accounting adjustments. The currency impact is measured as the increase or decrease in the expected adjusted revenue for the period by applying prior period foreign currency exchange rates to present a constant currency comparison to prior periods.

                         Growth
                                           -------
2022 Revenue                                7% - 9%
                                            (1.0)%
   Output Solutions postage reimbursements
                                           -------
2022 Adjusted revenue                       6% - 8%
                                           =======
                                             1.0%
   Currency impact
                                            (0.5)%
   Acquisition adjustments
                                             0.5%
   Divestiture adjustments
                                           -------

Adjusted Earnings Per Share - The company's adjusted earnings per share outlook for 2022 excludes certain non-cash or other items such as non-cash intangible asset amortization expense associated with acquisitions; non-cash impairment charges; merger and integration costs; severance costs; gains or losses from the sale of businesses, certain assets and investments; and certain discrete tax benefits and expenses, and includes non-cash deferred revenue purchase accounting adjustments. The company completed First Data acquisition related integration activities as of December 31, 2021, and therefore does not expect to incur additional costs associated with the achievement of cost synergies related to the First Data acquisition, resulting in lower merger and integration costs in 2022. The company estimates that amortization expense in 2022 with respect to acquired intangible assets will approximate the amount incurred in 2021.

Other adjustments to the company's financial measures that were incurred in 2021 and for the three months ended March 31, 2022, are presented in this news release; however, they are not necessarily indicative of adjustments that may be incurred in the remainder of 2022 or beyond. Estimates of these impacts and adjustments on a forward-looking basis are not available due to the variability, complexity and limited visibility of these items.

                                                                  Fiserv, Inc.
                                          Full Year Forward-Looking Non-GAAP Financial Measures (cont.)
                                                                                                                               
The company's adjusted earnings per share growth outlook for 2022 is based on 2021 adjusted earnings per share performance.
                                                                                                            
2021 GAAP net income attributable to Fiserv                                                          $                                     1,334  
Adjustments:                                                                                                
                                                                                                                          865  
   Merger and integration costs (1)
                                                                                                                           81  
   Severance costs (2)
                                                                                                                        1,982  
   Amortization of acquisition-related intangible assets (3)
                                                                                                                           51  
   Non wholly-owned entity activities (4)
                                                                                                                         (685 )
   Tax impact of adjustments (5)
                                                                                                                          118  
   Discrete tax items (6)
                                                             ----------------------------------------- ----------------------------------------- --------------------
2021 adjusted net income                                                                             $                                     3,746  
                                                             ========================================= ========================================= ====================
Weighted average common shares outstanding - diluted                                                                    671.6  
2021 GAAP earnings per share attributable to Fiserv                                                  $                                      1.99  
Adjustments - net of income taxes:                                                                          
                                                                                                                         0.99  
   Merger and integration costs (1)
                                                                                                                         0.09  
   Severance costs (2)
                                                                                                                         2.27  
   Amortization of acquisition-related intangible assets (3)
                                                                                                                         0.06  
   Non wholly-owned entity activities (4)
                                                                                                                         0.18  
   Discrete tax items (6)
                                                             ----------------------------------------- ----------------------------------------- --------------------
2021 adjusted earnings per share                                                                     $                                      5.58  
                                                             ========================================= ========================================= ====================
2022 adjusted earnings per share outlook                                                                                           $6.40 - $6.55
In millions, except per share amounts, unaudited. Earnings per share is calculated using actual, unrounded amounts. See pages 3-4 for disclosures related to the use of non-GAAP financial measures.
                                                                                                                                                                                                                                     Fiserv, Inc.
                                                                                                                                                                                                                                     Full Year Forward-Looking Non-GAAP Financial Measures (cont.)
                                                                                                                                                                                                                                         
(1)                  Represents acquisition and related integration costs incurred in connection with various acquisitions, primarily related to the First Data acquisition. First Data integration costs primarily include $370 million of third-party professional service fees associated with integration activities; $44 million of incremental share-based compensation, including the fair value of stock awards assumed by Fiserv; and $277 million of other integration- related compensation costs. Represents acquisition and related integration costs incurred in connection with various acquisitions, primarily related to the First Data acquisition. First Data integration costs primarily include $370 million of third-party professional service fees associated with integration activities; $44 million of incremental share-based compensation, including the fair value of stock awards assumed by Fiserv; and $277 million of other integration- related compensation costs.
(2)                  Represents severance costs associated with the achievement of expense management initiatives, including those related to the First Data acquisition.                                                                                                                                                                                                                                     Represents severance costs associated with the achievement of expense management initiatives, including those related to the First Data acquisition.
(3)                  Represents amortization of intangible assets acquired through various acquisitions, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, and financing costs and debt discounts.                                                                                            Represents amortization of intangible assets acquired through various acquisitions, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, and financing costs and debt discounts.
(4)                  Represents the company's share of amortization of acquisition-related intangible assets at its unconsolidated affiliates, as well as the minority interest share of amortization of acquisition-related intangible assets at its subsidiaries in which the company holds a controlling financial interest. This adjustment also includes net gains totaling $98 million related to the fair value remeasurement and sale of certain equity investments.       Represents the company's share of amortization of acquisition-related intangible assets at its unconsolidated affiliates, as well as the minority interest share of amortization of acquisition-related intangible assets at its subsidiaries in which the company holds a controlling financial interest. This adjustment also includes net gains totaling $98 million related to the fair value remeasurement and sale of certain equity investments.
(5)                  The tax impact of adjustments is calculated using a tax rate of 23%, which approximates the company's annual effective tax rate.                                                                                                                                                                                                                                     The tax impact of adjustments is calculated using a tax rate of 23%, which approximates the company's annual effective tax rate.

FISV-E

View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005266/en/

SOURCE: Fiserv, Inc.

Media Relations: 
Britt Zarling
Corporate Communications
Fiserv, Inc.
414-526-3107
britt.zarling@fiserv.com

Investor Relations: 
Shub Mukherjee
Investor Relations
Fiserv, Inc.
212-266-3565
shub.mukherjee@fiserv.com
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