First Data Reports Second Quarter 2019 Financial Results
- Q2 consolidated revenue of $2,485 million, up 2%
- Q2 total segment revenue of $2,278 million, up 2% as reported; up 7% on an organic constant currency(a) basis
- Q2 net income attributable to First Data diluted EPS of $0.28, down 21%, primarily driven by a $107 million tax benefit in the prior year quarter
- Q2 adjusted diluted EPS of $0.42, up 8% in the quarter
- Q2 total segment EBITDA of $893 million, up 3% as reported; up 9% on an organic constant currency(a) basis
- Q2 cash flow from operations of $713 million; free cash flow of $414 million
- Total borrowings declined $638 million year to date; net debt declined $534 million year to date
- Company reiterates full year 2019 guidance
- Combination with Fiserv expected to close on or about July 29, 2019
NEW YORK–(BUSINESS WIRE)–First Data Corporation (NYSE: FDC), a global leader in commerce-enabling technology and solutions, today reported financial results for the second quarter and six months ended June 30, 2019.
“Our strong results for the first half of the year reflect the great momentum we continue to see around the world in both our merchant acquiring and card processing businesses,” said First Data Chairman and CEO Frank Bisignano. “As we look ahead, we remain focused on executing against our key strategic initiatives including continuously innovating to help our clients, and are confident that the pending merger with Fiserv will enhance our offerings and create tremendous value for our clients and shareholders.”
Consolidated revenue was $2,485 million in the second quarter and $4,801 million in the first six months of 2019, up 2% in both periods compared to the prior year periods, reflecting solid operational performance offset by the impact of recent divestitures in Global Financial Solutions and unfavorable year-over-year foreign currency movements. Total segment revenue was $2,278 million in the second quarter and $4,395 million in the first six months of 2019, up 2% on a reported basis in both periods compared to the prior year periods. On an organic constant currency basis(a), total segment revenue increased 7% in both the second quarter and the first six months of 2019.
Net income attributable to First Data was $275 million, or $0.28 per diluted share, in the second quarter and $444 million, or $0.46 per diluted share, in the first six months of 2019, down 21% and 1%, respectively, on a per share basis compared to the prior year periods. The declines were primarily driven by the non-recurrence of a $107 million tax benefit related to a settlement of an IRS audit in the second quarter of 2018, and unfavorable year-over-year foreign currency movements, partially offset by improved operating results.
Adjusted net income, which modifies net income attributable to First Data for items such as gains/losses from divestitures, debt extinguishment charges, stock-based compensation, amortization of acquisition intangibles, restructuring costs, certain discrete tax items and other items, was $409 million, or $0.42 per diluted share, in the second quarter and $712 million, or $0.73 per diluted share, in the first six months of 2019, up 8% and 7%, respectively, on a per share basis compared to the prior year periods. The increases were driven primarily by improved operating results, partially offset by unfavorable year-over-year foreign currency movements.
Total segment earnings before interest, taxes, depreciation, and amortization (total segment EBITDA) was $893 million in the second quarter and $1,647 million in the first six months of 2019, up 3% on a reported basis in both periods compared to prior year periods, reflecting solid operational performance offset by the impact of recent divestitures in Global Financial Solutions and unfavorable year-over-year foreign currency movements. On an organic constant currency basis(a), total EBITDA increased 9% in both periods. Total segment EBITDA margin was 39.2% in the second quarter and 37.5% in the first six months of 2019, up 60 basis points and 70 basis points, respectively, on an organic constant currency basis(a) compared to the respective prior year periods.
Second Quarter Segment Results
Global Business Solutions (GBS)
Second quarter 2019 GBS segment revenue increased 5% on a reported basis to $1,527 million, or increased 9% on an organic constant currency basis(a). Within geographic regions, North America revenue increased 5% on both a reported and organic constant currency basis(a) to $1,187 million, driven by strong growth in the Partner Solutions channel. EMEA revenue of $181 million was flat on a reported basis, or increased 8% on an organic constant currency basis(a). Latin America revenue increased 22% on a reported basis to $104 million, or increased 52% on an organic constant currency basis(a). APAC revenue increased 10% on a reported basis to $55 million, or increased 16% on an organic constant currency basis(a).
Second quarter 2019 GBS segment EBITDA increased 4% on a reported basis to $564 million, or increased 9% on an organic constant currency basis(a). GBS Segment EBITDA margin was 36.9%, down 10 basis points compared to the prior year period on an organic constant currency basis(a).
Global Financial Solutions (GFS)
Second quarter 2019 GFS segment revenue decreased 9% on a reported basis to $376 million, primarily driven by recent divestitures, partially offset by growth in all geographic regions. On an organic constant currency basis(a), GFS segment revenue increased 7%. Within geographic regions, North America revenue decreased 5% on a reported basis to $222 million, or increased 4% on an organic constant currency basis(a). EMEA revenue decreased 24% on a reported basis to $90 million, or increased 3% on an organic constant currency basis(a). Latin America revenue decreased 4% on a reported basis to $34 million, or increased 23% on an organic constant currency basis(a). APAC revenue increased 11% on a reported basis to $30 million, or increased 17% on an organic constant currency basis(a).
Second quarter 2019 GFS segment EBITDA decreased 11% on a reported basis to $157 million, or was flat on an organic constant currency basis(a), as organic constant currency revenue growth was offset by added costs primarily associated with ramping new deals. GFS segment EBITDA margin was 41.8%, down 260 basis points on an organic constant currency basis(a).
Network & Security Solutions (NSS)
Second quarter 2019 NSS segment revenue increased 1% on both a reported and organic constant currency basis(a) to $375 million, as growth within the EFT business was offset by flat to modest declines in NSS’s other businesses.
Second quarter 2019 NSS segment EBITDA increased 12% on both a reported and organic constant currency basis(a) to $216 million. NSS Segment EBITDA margin was 57.6%, up 560 basis points on an organic constant currency basis(a).
Cash Flow
Cash flow from operations was $713 million in the second quarter and $1,328 million in the first six months of 2019, up $109 million and $190 million, respectively, compared to the prior year periods. Free cash flow, which the Company defines as cash flow from operations less capital expenditures, distributions to minority interests and other, was $414 million in the second quarter and $811 million in the first six months of 2019, up $36 million and $65 million, respectively, compared to the prior year periods, primarily driven by improved operating results and reduced cash interest and tax payments, partially offset by higher capital expenditures.
Capital Structure
First Data’s total borrowings at June 30, 2019 decreased by $638 million to $16,961 million, from $17,599 million at December 31, 2018. Net debt at June 30, 2019 decreased by $534 million to $16,380 million, from $16,914 million at December 31, 2018.
2019 Guidance Reiterated
The Company reiterated its full year 2019 financial guidance. The guidance does not include any impact related to the previously announced merger with Fiserv.
The Company expects:
- Full year total segment revenue: organic constant currency(a) growth of 5% to 6%
- Full year total segment EBITDA: organic constant currency(a) growth of 6% to 8%
- Full year adjusted diluted EPS: $1.55 – $1.58
- Full year free cash flow: $1.5 billion+
The Company now expects negative impacts on second-half reported segment revenue and EBITDA from foreign currency in the range of 30% to 40% of the impacts experienced in the first half of the year.
“We expect to complement our strong first-half performance with second-half revenue growth towards the upper end of our 2019 guidance,” said Bisignano.
Update on Timing of Proposed Combination with Fiserv
As of July 23, 2019, the Company and Fiserv received the final required regulatory approvals and non-objections needed to complete the proposed combination. The Company and Fiserv expect to close the proposed acquisition on or about July 29, 2019.
Investor Conference Call
Due to the pending merger with Fiserv, the Company will not host a conference call/webcast to review the second quarter 2019 financial results.
Non-GAAP Measures
To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the Company uses non-GAAP measures of certain financial performance. These non-GAAP measures include total segment revenue, total segment expense, total segment EBITDA, adjusted net income, adjusted EPS, free cash flow and net debt, and growth rates for these metrics compared to prior periods. The Company has included non-GAAP measures because management believes that they help to facilitate comparisons of the Company’s operating results between periods. The Company believes the non-GAAP measures provide useful information to both management and users of our financial statements by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. Additional information about non-GAAP financial measures, including reconciliations of all non-GAAP measures to the most directly comparable GAAP measure can be found in the tables included in this press release.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and more than 3,700 financial institutions in more than 100 countries around the world. The Company’s 19,000 owner-associates are dedicated to helping companies, from start-ups to the world’s largest corporations, conduct commerce every day by securing and processing more than 3,000 transactions per second and $2.6 trillion per year.
| (a) | Non-GAAP growth rate — Organic constant currency growth (“Organic CC growth”) is defined as reported growth adjusted for the following: (1) excludes the impacts of year-over-year currency rate changes in the current period; (2) excludes the results of significant divestitures in the prior year period; and (3) includes the results of significant acquisitions in the prior year period. |
|
First Data Corporation Consolidated Statements of Operations (Unaudited) (in millions, except per share data) |
|||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Revenues excluding reimbursable items |
$ |
2,289 |
|
|
$ |
2,244 |
|
|
$ |
4,413 |
|
|
$ |
4,328 |
|
|
Reimbursable items |
196 |
|
|
204 |
|
|
388 |
|
|
402 |
|
||||
|
Total revenues |
2,485 |
|
|
2,448 |
|
|
4,801 |
|
|
4,730 |
|
||||
|
Expenses: |
|
|
|
|
|
|
|
||||||||
|
Cost of revenues (exclusive of items shown below) |
757 |
|
|
751 |
|
|
1,514 |
|
|
1,530 |
|
||||
|
Selling, general, and administrative |
688 |
|
|
683 |
|
|
1,348 |
|
|
1,330 |
|
||||
|
Depreciation and amortization |
253 |
|
|
255 |
|
|
499 |
|
|
505 |
|
||||
|
Other operating expenses, net |
24 |
|
|
17 |
|
|
60 |
|
|
77 |
|
||||
|
Total expenses excluding reimbursable items |
1,722 |
|
|
1,706 |
|
|
3,421 |
|
|
3,442 |
|
||||
|
Reimbursable items |
196 |
|
|
204 |
|
|
388 |
|
|
402 |
|
||||
|
Total expenses |
1,918 |
|
|
1,910 |
|
|
3,809 |
|
|
3,844 |
|
||||
|
Operating profit |
567 |
|
|
538 |
|
|
992 |
|
|
886 |
|
||||
|
Interest expense, net |
(202 |
) |
|
(234 |
) |
|
(405 |
) |
|
(467 |
) |
||||
|
Loss on debt extinguishment |
(2 |
) |
|
(1 |
) |
|
(3 |
) |
|
(1 |
) |
||||
|
Other (expense) income |
(8 |
) |
|
2 |
|
|
(35 |
) |
|
(1 |
) |
||||
|
Income before income taxes and equity earnings in affiliates |
355 |
|
|
305 |
|
|
549 |
|
|
417 |
|
||||
|
Income tax expense (benefit) |
85 |
|
|
(37 |
) |
|
114 |
|
|
(10 |
) |
||||
|
Equity earnings in affiliates |
64 |
|
|
60 |
|
|
116 |
|
|
109 |
|
||||
|
Net income |
334 |
|
|
402 |
|
|
551 |
|
|
536 |
|
||||
|
Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest |
59 |
|
|
61 |
|
|
107 |
|
|
94 |
|
||||
|
Net income attributable to First Data Corporation |
$ |
275 |
|
|
$ |
341 |
|
|
$ |
444 |
|
|
$ |
442 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income attributable to First Data Corporation per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.29 |
|
|
$ |
0.37 |
|
|
$ |
0.47 |
|
|
$ |
0.48 |
|
|
Diluted |
$ |
0.28 |
|
|
$ |
0.36 |
|
|
$ |
0.46 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
943 |
|
|
928 |
|
|
940 |
|
|
926 |
|
||||
|
Diluted |
971 |
|
|
954 |
|
|
969 |
|
|
950 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
First Data Corporation Selected Consolidated Balance Sheet and Cash Flow Data (Unaudited) (in millions) |
|||||||
|
SELECTED CONSOLIDATED BALANCE SHEET DATA |
|||||||
|
|
|
|
|
||||
|
|
As of |
|
As of |
||||
|
|
6/30/2019 |
|
12/31/2018 |
||||
|
|
|
|
|
||||
|
Cash and cash equivalents |
$ |
544 |
|
|
$ |
555 |
|
|
Settlement assets |
23,929 |
|
|
11,423 |
|
||
|
Total assets |
51,031 |
|
|
38,327 |
|
||
|
|
|
|
|
||||
|
Short-term and current portion of long-term borrowings |
1,150 |
|
|
1,170 |
|
||
|
Settlement obligations |
23,929 |
|
|
11,423 |
|
||
|
Long-term borrowings |
15,811 |
|
|
16,429 |
|
||
|
Total liabilities |
43,518 |
|
|
31,283 |
|
||
|
|
|
|
|
||||
|
Redeemable noncontrolling interest |
92 |
|
|
77 |
|
||
|
|
|
|
|
||||
|
Total First Data Corporation stockholders’ equity |
4,653 |
|
|
4,173 |
|
||
|
Noncontrolling interests |
2,768 |
|
|
2,794 |
|
||
|
Total equity |
7,421 |
|
|
6,967 |
|
||
|
|
|
|
|
||||
|
SELECTED CONSOLIDATED CASH FLOW DATA |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Source/(Use) of cash |
|
|
|
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
713 |
|
|
$ |
604 |
|
|
$ |
1,328 |
|
|
$ |
1,138 |
|
|
Net cash used in investing activities |
(225 |
) |
|
(147 |
) |
|
(486 |
) |
|
(290 |
) |
||||
|
Net cash used in financing activities |
(563 |
) |
|
(480 |
) |
|
(838 |
) |
|
(784 |
) |
||||
|
Supplemental cash flow data |
|
|
|
|
|
|
|
||||||||
|
Cash interest payments(a) |
$ |
121 |
|
|
$ |
215 |
|
|
$ |
388 |
|
|
$ |
452 |
|
|
(a) For purposes of this schedule, cash interest payments excludes interest on finance leases and interest on foreign lines of credit. |
|||||||||||||||
|
First Data Corporation Summary Segment Data (Unaudited) (in millions) |
|||||||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||||
|
|
2019 |
|
2018 |
|
% |
|
Organic CC |
|
2019 |
|
2018 |
|
% |
|
Organic CC % |
||||||||
|
Consolidated Revenues |
$ |
2,485 |
|
|
$ |
2,448 |
|
|
2% |
|
|
|
$ |
4,801 |
|
|
$ |
4,730 |
|
|
2% |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non wholly owned entities(a) |
(11 |
) |
|
(10 |
) |
|
|
|
|
|
(18 |
) |
|
(14 |
) |
|
|
|
|
||||
|
Reimbursable items |
(196 |
) |
|
(204 |
) |
|
|
|
|
|
(388 |
) |
|
(402 |
) |
|
|
|
|
||||
|
Total Segment Revenues |
$ |
2,278 |
|
|
$ |
2,234 |
|
|
2% |
|
7% |
|
$ |
4,395 |
|
|
$ |
4,314 |
|
|
2% |
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Segment Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Global Business Solutions |
$ |
1,527 |
|
|
$ |
1,449 |
|
|
5% |
|
9% |
|
$ |
2,914 |
|
|
$ |
2,767 |
|
|
5% |
|
9% |
|
Global Financial Solutions |
376 |
|
|
414 |
|
|
(9)% |
|
7% |
|
745 |
|
|
814 |
|
|
(8)% |
|
8% |
||||
|
Network & Security Solutions |
375 |
|
|
371 |
|
|
1% |
|
1% |
|
736 |
|
|
733 |
|
|
—% |
|
—% |
||||
|
Total Segment Revenues |
$ |
2,278 |
|
|
$ |
2,234 |
|
|
2% |
|
7% |
|
$ |
4,395 |
|
|
$ |
4,314 |
|
|
2% |
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||||||
|
|
2019 |
|
2018 |
|
% |
|
Organic CC |
|
2019 |
|
2018 |
|
% |
|
Organic CC % |
||||||||
|
Net income attributable to First Data Corporation |
$ |
275 |
|
|
$ |
341 |
|
|
(19)% |
|
|
|
$ |
444 |
|
|
$ |
442 |
|
|
—% |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non wholly owned entities(a) |
(15 |
) |
|
(4 |
) |
|
275% |
|
|
|
(28 |
) |
|
(22 |
) |
|
27% |
|
|
||||
|
Depreciation and amortization |
253 |
|
|
255 |
|
|
(1)% |
|
|
|
499 |
|
|
505 |
|
|
(1)% |
|
|
||||
|
Interest expense, net |
202 |
|
|
234 |
|
|
(14)% |
|
|
|
405 |
|
|
467 |
|
|
(13)% |
|
|
||||
|
Loss on debt extinguishment |
2 |
|
|
1 |
|
|
100% |
|
|
|
3 |
|
|
1 |
|
|
200% |
|
|
||||
|
Other items(b) |
32 |
|
|
15 |
|
|
113% |
|
|
|
95 |
|
|
78 |
|
|
22% |
|
|
||||
|
Stock-based compensation |
59 |
|
|
59 |
|
|
—% |
|
|
|
115 |
|
|
133 |
|
|
(14)% |
|
|
||||
|
Income tax expense (benefit) |
85 |
|
|
(37 |
) |
|
NM |
|
|
|
114 |
|
|
(10 |
) |
|
NM |
|
|
||||
|
Total Segment EBITDA |
$ |
893 |
|
|
$ |
864 |
|
|
3% |
|
9% |
|
$ |
1,647 |
|
|
$ |
1,594 |
|
|
3% |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Segment EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Global Business Solutions |
$ |
564 |
|
|
$ |
544 |
|
|
4% |
|
9% |
|
$ |
1,035 |
|
|
$ |
978 |
|
|
6% |
|
12% |
|
Global Financial Solutions |
157 |
|
|
176 |
|
|
(11)% |
|
—% |
|
304 |
|
|
342 |
|
|
(11)% |
|
—% |
||||
|
Network & Security Solutions |
216 |
|
|
193 |
|
|
12% |
|
12% |
|
411 |
|
|
368 |
|
|
12% |
|
12% |
||||
|
Corporate |
(44 |
) |
|
(49 |
) |
|
9% |
|
9% |
|
(103 |
) |
|
(94 |
) |
|
(8)% |
|
(8)% |
||||
|
Total Segment EBITDA |
$ |
893 |
|
|
$ |
864 |
|
|
3% |
|
9% |
|
$ |
1,647 |
|
|
$ |
1,594 |
|
|
3% |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| NM represents not meaningful | |
|
(a) |
Net adjustment to reflect our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. Segment revenue for our significant affiliates is reflected based on our proportionate share of the results of our investments in businesses accounted for under the equity method and consolidated subsidiaries with noncontrolling ownership interests. For other affiliates, we include equity earnings in affiliates, excluding amortization expense, in segment revenue. |
|
(b) |
Includes restructuring, non-normal course litigation and regulatory settlements, debt issuance expenses, deal and deal integration costs, Other (expense)/income as presented in the unaudited consolidated statements of operations, which includes divestitures, derivative gains (losses), non-operating foreign currency gains (losses), and other as applicable to the periods presented. |
|
(c) |
Organic constant currency (“Organic CC”) growth is defined as reported growth adjusted for the following: (1) excludes the impacts of year-over-year currency rate changes in the current period; (2) excludes the results of significant divestitures in the prior year period; and (3) includes the results of significant acquisitions in the prior year period. |
|
|
|||||||||||||||||||
|
First Data Corporation Summary Segment Data (Unaudited) (in millions) |
|||||||||||||||||||
|
|
|||||||||||||||||||
|
SEGMENT REVENUE RECONCILIATION |
|||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
% B/(W)(b) |
|
2019 |
|
2018 |
|
% B/(W)(b) |
||||||||
|
Reported FDC segment revenue |
$ |
2,278 |
|
|
$ |
2,234 |
|
|
2% |
|
$ |
4,395 |
|
|
$ |
4,314 |
|
|
2% |
|
Currency impact |
71 |
|
|
— |
|
|
|
|
145 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(40 |
) |
|
|
|
— |
|
|
(86 |
) |
|
|
||||
|
Organic CC FDC segment revenue growth(a) |
$ |
2,349 |
|
|
$ |
2,194 |
|
|
7% |
|
$ |
4,540 |
|
|
$ |
4,228 |
|
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS segment revenue |
$ |
1,527 |
|
|
$ |
1,449 |
|
|
5% |
|
$ |
2,914 |
|
|
$ |
2,767 |
|
|
5% |
|
Currency impact |
54 |
|
|
— |
|
|
|
|
113 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
6 |
|
|
|
|
— |
|
|
6 |
|
|
|
||||
|
Organic CC GBS segment revenue growth(a) |
$ |
1,581 |
|
|
$ |
1,455 |
|
|
9% |
|
$ |
3,027 |
|
|
$ |
2,773 |
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS NA segment revenue |
$ |
1,187 |
|
|
$ |
1,134 |
|
|
5% |
|
$ |
2,256 |
|
|
$ |
2,148 |
|
|
5% |
|
Currency impact |
2 |
|
|
— |
|
|
|
|
3 |
|
|
— |
|
|
|
||||
|
Organic CC GBS NA segment revenue growth(a) |
$ |
1,189 |
|
|
$ |
1,134 |
|
|
5% |
|
$ |
2,259 |
|
|
$ |
2,148 |
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS EMEA segment revenue |
$ |
181 |
|
|
$ |
180 |
|
|
—% |
|
$ |
347 |
|
|
$ |
348 |
|
|
—% |
|
Currency impact |
11 |
|
|
— |
|
|
|
|
24 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(2 |
) |
|
|
|
— |
|
|
(4 |
) |
|
|
||||
|
Organic CC GBS EMEA segment revenue growth(a) |
$ |
192 |
|
|
$ |
178 |
|
|
8% |
|
$ |
371 |
|
|
$ |
344 |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS APAC segment revenue |
$ |
55 |
|
|
$ |
50 |
|
|
10% |
|
$ |
107 |
|
|
$ |
98 |
|
|
9% |
|
Currency impact |
3 |
|
|
— |
|
|
|
|
6 |
|
|
— |
|
|
|
||||
|
Organic CC GBS APAC segment revenue growth(a) |
$ |
58 |
|
|
$ |
50 |
|
|
16% |
|
$ |
113 |
|
|
$ |
98 |
|
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS LATAM segment revenue |
$ |
104 |
|
|
$ |
85 |
|
|
22% |
|
$ |
204 |
|
|
$ |
173 |
|
|
18% |
|
Currency impact |
38 |
|
|
— |
|
|
|
|
80 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
8 |
|
|
|
|
— |
|
|
10 |
|
|
|
||||
|
Organic CC GBS LATAM segment revenue growth(a) |
$ |
142 |
|
|
$ |
93 |
|
|
52% |
|
$ |
284 |
|
|
$ |
183 |
|
|
55% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GFS segment revenue |
$ |
376 |
|
|
$ |
414 |
|
|
(9)% |
|
$ |
745 |
|
|
$ |
814 |
|
|
(8)% |
|
Currency impact |
17 |
|
|
— |
|
|
|
|
32 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(46 |
) |
|
|
|
— |
|
|
(92 |
) |
|
|
||||
|
Organic CC GFS segment revenue growth(a) |
$ |
393 |
|
|
$ |
368 |
|
|
7% |
|
$ |
777 |
|
|
$ |
722 |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
||||||||||||||||||
|
First Data Corporation Summary Segment Data (Unaudited) |
|||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
% B/(W)(b) |
|
2019 |
|
2018 |
|
% B/(W)(b) |
||||||||
|
Reported GFS NA segment revenue |
$ |
222 |
|
|
$ |
233 |
|
|
(5)% |
|
$ |
443 |
|
|
$ |
461 |
|
|
(4)% |
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(20 |
) |
|
|
|
— |
|
|
(40 |
) |
|
|
||||
|
Organic CC GFS NA segment revenue growth(a) |
$ |
222 |
|
|
$ |
213 |
|
|
4% |
|
$ |
443 |
|
|
$ |
421 |
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GFS EMEA segment revenue |
$ |
90 |
|
|
$ |
119 |
|
|
(24)% |
|
$ |
173 |
|
|
$ |
229 |
|
|
(24)% |
|
Currency impact |
6 |
|
|
— |
|
|
|
|
11 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(26 |
) |
|
|
|
— |
|
|
(52 |
) |
|
|
||||
|
Organic CC GFS EMEA segment revenue growth(a) |
$ |
96 |
|
|
$ |
93 |
|
|
3% |
|
$ |
184 |
|
|
$ |
177 |
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GFS APAC segment revenue |
$ |
30 |
|
|
$ |
26 |
|
|
11% |
|
$ |
62 |
|
|
$ |
57 |
|
|
8% |
|
Currency impact |
2 |
|
|
— |
|
|
|
|
4 |
|
|
— |
|
|
|
||||
|
Organic CC GFS APAC segment revenue growth(a) |
$ |
32 |
|
|
$ |
26 |
|
|
17% |
|
$ |
66 |
|
|
$ |
57 |
|
|
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GFS LATAM segment revenue |
$ |
34 |
|
|
$ |
36 |
|
|
(4)% |
|
$ |
67 |
|
|
$ |
67 |
|
|
—% |
|
Currency impact |
9 |
|
|
— |
|
|
|
|
17 |
|
|
— |
|
|
|
||||
|
Organic CC GFS LATAM segment revenue growth(a) |
$ |
43 |
|
|
$ |
36 |
|
|
23% |
|
$ |
84 |
|
|
$ |
67 |
|
|
26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported NSS segment revenue |
$ |
375 |
|
|
$ |
371 |
|
|
1% |
|
$ |
736 |
|
|
$ |
733 |
|
|
—% |
|
Organic CC NSS segment revenue growth(a) |
$ |
375 |
|
|
$ |
371 |
|
|
1% |
|
$ |
736 |
|
|
$ |
733 |
|
|
—% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
SEGMENT EBITDA RECONCILIATION |
|||||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
% B/(W)(b) |
|
2019 |
|
2018 |
|
% B/(W)(b) |
||||||||
|
Reported FDC segment EBITDA |
$ |
893 |
|
|
$ |
864 |
|
|
3% |
|
$ |
1,647 |
|
|
$ |
1,594 |
|
|
3% |
|
Currency impact |
34 |
|
|
— |
|
|
|
|
72 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(12 |
) |
|
|
|
— |
|
|
(23 |
) |
|
|
||||
|
Organic CC FDC segment EBITDA growth(a) |
$ |
927 |
|
|
$ |
852 |
|
|
9% |
|
$ |
1,719 |
|
|
$ |
1,571 |
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GBS segment EBITDA |
$ |
564 |
|
|
$ |
544 |
|
|
4% |
|
$ |
1,035 |
|
|
$ |
978 |
|
|
6% |
|
Currency impact |
26 |
|
|
— |
|
|
|
|
55 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
— |
|
|
|
|
— |
|
|
(1 |
) |
|
|
||||
|
Organic CC GBS segment EBITDA growth(a) |
$ |
590 |
|
|
$ |
544 |
|
|
9% |
|
$ |
1,090 |
|
|
$ |
977 |
|
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported GFS segment EBITDA |
$ |
157 |
|
|
$ |
176 |
|
|
(11)% |
|
$ |
304 |
|
|
$ |
342 |
|
|
(11)% |
|
Currency impact |
8 |
|
|
— |
|
|
|
|
17 |
|
|
— |
|
|
|
||||
|
Acquisitions/(Divestitures)(c) |
— |
|
|
(12 |
) |
|
|
|
— |
|
|
(22 |
) |
|
|
||||
|
Organic CC GFS segment EBITDA growth(a) |
$ |
165 |
|
|
$ |
164 |
|
|
—% |
|
$ |
321 |
|
|
$ |
320 |
|
|
—% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reported NSS segment EBITDA |
$ |
216 |
|
|
$ |
193 |
|
|
12% |
|
$ |
411 |
|
|
$ |
368 |
|
|
12% |
|
Organic CC NSS segment EBITDA growth(a) |
$ |
216 |
|
|
$ |
193 |
|
|
12% |
|
$ |
411 |
|
|
$ |
368 |
|
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(a) |
Organic constant currency (“Organic CC”) growth is defined as reported growth adjusted for the following: (1) excludes the impacts of year-over-year currency rate changes in the current period; (2) excludes the results of significant divestitures in the prior year period; and (3) includes the results of significant acquisitions in the prior year period. |
|
(b) |
“B” means results in 2019 are better than results in 2018 “(W)” means results are worse. |
|
(c) |
“Acquisitions/(Divestitures)” includes the following activity: the 2018 divestiture of the GFS card processing businesses in Greece and Central/Eastern Europe, the 2018 divestiture of the GFS check remittance processing business in North America, and the 2019 acquisition of Software Express within GBS LATAM. |
|
First Data Corporation Reconciliation of Non-GAAP Financial Measures (Unaudited) (in millions) |
|||||||||||||||||||
|
ADJUSTED NET INCOME RECONCILIATION |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
|
% Change |
||||||||
|
Net income attributable to First Data Corporation |
$ |
275 |
|
|
$ |
341 |
|
|
(19)% |
|
$ |
444 |
|
|
$ |
442 |
|
|
—% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation |
59 |
|
|
59 |
|
|
—% |
|
115 |
|
|
133 |
|
|
(14)% |
||||
|
Loss on debt extinguishment |
2 |
|
|
1 |
|
|
NM |
|
3 |
|
|
1 |
|
|
NM |
||||
|
Amortization of acquisition intangibles and deferred financing costs(a) |
89 |
|
|
104 |
|
|
(14)% |
|
178 |
|
|
210 |
|
|
(15)% |
||||
|
Other operating expenses, net and Other (expense) income |
32 |
|
|
15 |
|
|
NM |
|
95 |
|
|
78 |
|
|
22% |
||||
|
Other(b) |
— |
|
|
2 |
|
|
NM |
|
— |
|
|
(9 |
) |
|
NM |
||||
|
Discrete tax items(c) |
— |
|
|
(107 |
) |
|
NM |
|
— |
|
|
(101 |
) |
|
NM |
||||
|
Income tax on above items(d) |
(48 |
) |
|
(44 |
) |
|
(9)% |
|
(123 |
) |
|
(104 |
) |
|
(18)% |
||||
|
Adjusted net income attributable to First Data Corporation |
$ |
409 |
|
|
$ |
371 |
|
|
10% |
|
$ |
712 |
|
|
$ |
650 |
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.43 |
|
|
$ |
0.40 |
|
|
8% |
|
$ |
0.76 |
|
|
$ |
0.70 |
|
|
9% |
|
Diluted |
$ |
0.42 |
|
|
$ |
0.39 |
|
|
8% |
|
$ |
0.73 |
|
|
$ |
0.68 |
|
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average common shares used to compute adjusted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic |
943 |
|
|
928 |
|
|
2% |
|
940 |
|
|
926 |
|
|
2% |
||||
|
Diluted |
971 |
|
|
954 |
|
|
2% |
|
969 |
|
|
950 |
|
|
2% |
||||
Contacts
Peter Poillon
Investor Relations
First Data
212-266-3565
[email protected]
Michael Schneider
Corporate Communications
First Data
212-515-0290
[email protected]
Read full story here This article published with permission from Business Wire
