Fidelity National Information Services, Inc. (NYSE:FIS) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 08:30 am ET


Fidelity National Information Services, Inc. (NYSE:FIS) Q4 2018 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the FIS Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode, later we will conduct a question-and-answer session, instructions will be given at that time. (Operator Instructions) And as a reminder, this conference is being recorded.

I'd now like to turn the conference over to our host, Mr. Pete Gunnlaugsson. Please go ahead, sir.

Peter Gunnlaugsson

Thank you, Brad. Good morning everyone, and welcome to FIS' fourth quarter 2018 earnings conference call.

Turning to Slide two. Gary Norcross, Chairman, President and Chief Executive Officer will begin today's call with company highlights for the quarter and the year. Woody Woodall, our Chief Financial Officer will continue with the financial results for the quarter and full year concluding with 2019 guidance. This conference call is also being webcasted with today's news release and corresponding presentation available on our website at

Turning to Slide three. Today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as described in the press release and other filings with the SEC. The company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. I refer you to the Safe Harbor language on the slide.

Materials presented today will also include references to non-GAAP financial measures in order to provide more meaningful comparisons between the periods presented. Reconciliations between the GAAP and non-GAAP results are provided in the attachments to the press release and in the appendix of the supplemental slide presentation.

Turning to Slide four. It is now my pleasure to turn the call over to Gary. Gary?

Gary Norcross

Thank you, Pete. Good morning and thank you for joining us. Today, I'm very pleased to announce our Q4 and full year earnings results. 2018 was a very good year for FIS as we consistently and successfully executed on the strategic plan, we discussed during our Investor Day last May. While impacted throughout the year by revenue mix, especially in our institutional and wholesale division, we exceeded profitability and earnings expectations and net revenue expectations for the full year. From a strategy delivery viewpoint, we exceeded our plans on data center consolidation, solution modernization and sales execution, which gives us strong confidence as we start 2019. This confidence allows us to continue building on our multi-year track record of delivering solid revenue growth, exceptional margin expansion and significant shareholder returns.

For the year, total shareholder returns exceeded the S&P 500 by approximately 17%, driven by consolidated margin expansion of 280 basis points, adjusted earnings per share growth of 22.5% and a return of over $1.6 billion to shareholders through share repurchases and dividends. These results underscore the resiliency of our business model and showcase our ability to create both short and long-term value for our shareholders, while executing on our modernization and transformation strategies. Over the last three years, we have strategically tuned our solution portfolio