Fiserv (FISV) Q4 2003 earnings summary

Executive summary

• FY2003 processing and services revenue was $2.700B, up 22% reported; internal growth was 5%, with the balance of growth from acquisitions. Net income reached $315.0M and diluted EPS was $1.61.

• Q4 processing and services revenue was $749.5M; operating income was $139.0M, net income was $82.0M, and diluted EPS was $0.42.

Financial highlights

• FY2003 total revenue, including customer reimbursements, was $3.034B versus $2.497B in 2002; reimbursements were $334.1M and offset costs.

• FY2003 operating income was $532.0M versus $445.5M; net income was $315.0M versus $266.1M; diluted EPS was $1.61 versus $1.37.

• Net cash from operations was $518.1M; free cash flow, a non-GAAP measure, was $454.9M versus $373.4M in 2002.

Outlook and guidance

• The effective income tax rate for 2004 was expected to remain at 39%.

• Management expected to renew the $510M credit and commercial paper facilities before their May 2004 expiry and planned to continue pursuing acquisitions.

• Operating cash flow and other available funding sources were expected to cover operating needs, debt repayments, acquisition contingencies, and ordinary capital spending; significant acquisitions could require new debt or securities issuance.