Fiserv, Inc. (NASDAQ:FISV) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Fiserv, Inc. (NASDAQ:FISV) Q4 2018 Earnings Conference Call Transcript


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Welcome to the Fiserv 2018 Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode until the question and answer session begins, following the presentation. As a reminder, today's call is being recorded.

At this time, I will turn the call over to Tiffany Willis, Vice President of Investor Relations at Fiserv.

Tiffany Willis

Thank you, and good afternoon. With me today for the call are Jeff Yabuki, our Chief Executive Officer; and Bob Hau, our Chief Financial Officer. Please note that our earnings release and supplemental presentation for the quarter are available on the Investor Relations section of

Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results, strategic initiatives, and the anticipated combination with First Data, including expected benefits, financial projections, synergies, financing and timing of, as well as the ability to close -- complete the transaction. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. Please refer to our earnings release for a discussion of these risk factors.

Today's presentation is neither an offering of securities nor solicitation of a proxy vote. The information discussed today is qualified by the registration and joint proxy statement that Fiserv and First Data will be filing with the SEC. You should review that information carefully.

You should also refer to our materials for today's call for an explanation of the non-GAAP financial measures discussed in this call, along with a reconciliation of those measures to the nearest applicable GAAP measures. These non-GAAP measures are indicators that management uses to provide additional meaningful comparisons between current results and prior reported results, and as a basis for planning and forecasting for future periods.

Unless stated otherwise, performance references made throughout this call are assumed to be year-over-year comparisons. As a reminder, the share and per share amounts in the press release, supplemental materials and comments are adjusted for the two-for-one stock split completed in March of 2018, along with adjusting the comparable 2017 adjusted earnings per share amounts in each period for the sale of a majority interest of our Lending Solutions business, which also closed in March.

And with that, allow me to call -- turn call turn the call over to Jeff.

Jeffery W. Yabuki

Thanks, Stephanie, and good afternoon, everyone. As you know, key elements of our shareholder value proposition are to steadily increase our internal revenue growth rate, convert that to growing streams of free cash flow, and last but certainly not least, allocate that capital in a shareholder-friendly way. We accomplished those objectives in 2018 and made important progress in building your company's future success. We achieved an 80 basis point increase in our internal revenue growth rate for the year to 4.5% and also achieved our 33rd consecutive year of double-digit adjusted earnings per share growth.

Results in the quarter, which are consistent with our preliminary results announced on January 16th, include 4.5% internal revenue growth and a 33.4% adjusted operating margin, both