Fiserv (FISV) Q4 2001 earnings summary

Executive summary

• FY2001 revenue reached $1.890B, up 14% YoY; diluted EPS was $1.09 reported and $1.07 excluding realized investment gains, versus $0.93 and $0.91 in 2000.

• Strong growth in financial institution services and 12 acquisitions supported results; securities processing faced lower transaction volumes amid weak U.S. retail financial markets.

Financial highlights

• Revenue was $1,890.5M vs. $1,653.6M in 2000; net income was $208.2M vs. $177.0M.

• Operating income rose to $353.7M from $314.3M; income before taxes was $347.0M, including a $5.4M realized investment gain.

• Operating cash flow was $442.1M vs. $584.5M; cash and cash equivalents ended the year at $136.1M.

• 2001 acquisition cash payments were $224.8M; capital expenditures were $68.0M and software capitalization was $36.6M.

Outlook and guidance

• 2002 sales and acquisition pipelines were described as positive across major business lines; management expected another successful year.

• SFAS 142 adoption was expected to raise 2002 diluted EPS by ~$0.09 and reduce the effective tax rate from 40% to 39%.

• Cash flow and other available funding sources were expected to meet requirements; significant future acquisitions could require additional borrowing or securities issuance.