Fidelity National Information Services, Inc. (NYSE:FIS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET


Fidelity National Information Services, Inc. (NYSE:FIS) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the FIS Fourth Quarter 2019 Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session. [Operator Instructions] And as a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Mr. Nathan Rozof. Please go ahead, sir.

Nathan A. Rozof

Thank you. Good morning, and thanks to everyone for joining us today for the FIS fourth quarter and full year 2019 earnings conference call. The call is being webcasted. And today's news release, corresponding presentation, as well as the webcast link are all available on our website at

Gary Norcross, our Chairman, President and CEO, will discuss our recent business trends and describe our operate -- quarterly operating performance. Woody Woodall, our Chief Financial Officer, will then review FIS' financial results and provide first quarter and full year 2020 guidance.

Turning to slide 3. 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. Please refer to the safe harbor language.

Also, throughout this conference call, we will be presenting non-GAAP information, including adjusted EBITDA, adjusted net earnings and adjusted net earnings per share. These are important financial performance measures for the Company but are not financial measures as defined by GAAP. Reconciliation of our non-GAAP information to the GAAP financial information are presented in our earnings release.

With that, I'll turn this call over to Gary who will begin his remarks on slide 5.

Gary Norcross

Thanks, Nate. Good morning, and thank you for joining us today. I'm very pleased to be able to announce our fourth quarter and full year results. 2019 was a transformational year for FIS. We successfully closed and are well down the path on integrating the largest financial technology transaction in our industry. This along with outstanding sales production delivered strong organic revenue growth of 6% for the full year.

All three segments performed exceptionally well for the year as well as the quarter. Our record sales and integration activities position us for an even stronger 2020. Later, I will talk about our strategy of modernization and how that has led to some very large noble wins that exemplify how our strategy is working as well as driving increasing demand for our solution suite. This includes signing three of the largest banks in the country this quarter on our core banking solutions.

In the fourth quarter, our organic growth rate accelerated to 7% resulting a $3.3 billion in revenue. Our new sales results for the largest quarter and year in our history, resulting in an increase of more than 20% in new sales for the year. Our installation backlog as well as pipeline continue to expand. Adjusted EBITDA margins expanded by 470 basis points, primarily driven by