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

 

%

Change

 

Organic CC

% Change(c)

 

2019

 

2018

 

%

Change

 

Organic CC %

Change(c)

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

 

%

Change

 

Organic CC

% Change(c)

 

2019

 

2018

 

%

Change

 

Organic CC %

Change(c)

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

Peter.Poillon@firstdata.com

Michael Schneider

Corporate Communications

First Data

212-515-0290

Michael.Schneider@firstdata.com

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