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Actionable news in FDC: First Data Corp,

FIRST DATA: Gbs Adjusted Ebitda Was

The following excerpt is from the company's SEC filing.

$376 million

versus the prior year period. Adjusted EBITDA margin improved

basis points to

in the quarter.

Global Financial Solutions

First quarter

GFS segment revenue was

$386 million

versus the prior year period, or up

on a constant currency basis. Within geographic regions, North America revenue of

$234 million

was up

, driven by new business and internal growth in credit and retail processing, and in output services. North America GFS card accounts on file grew

year over year. EMEA revenue was

$103 million

GFS adjusted expenses were

$231 million

, down

versus the prior year period, benefiting from foreign exchange and expense reduction actions.

GFS adjusted EBITDA was

$155 million

Network & Security Solutions

NSS segment revenue was

$352 million

versus the prior year period. Revenue growth in the quarter was primarily driven by growth in security solutions and stored value.

NSS adjusted expenses were

$201 million

NSS adjusted EBITDA was

$151 million

Cash Flow

In the

, cash flow from operations was

, versus

$(102) million

in the prior year period. Free cash flow, which First Data defines as cash flow from operations less capital expenditures and distributions to minority interests, was

$211 million

in the current quarter, versus

$(310) million

in the prior year period. The increase in both measures was driven by improved operating results and a $375 million decline in cash interest payments.

Improvements to Capital Structure

Year to date, First Data refinanced $4.6 billion of the approximately $6 billion in 2018 term loans, extending these maturities into the next decade.

In March 2016, First Data issued $900 million of senior secured first lien notes with an interest rate of 5.0%, due in 2024. The proceeds of those notes were used to repay approximately $900 million of its senior secured term loans due in 2018 and to pay related fees and expenses.

Also, First Data extended the maturity of $3.7 billion of its outstanding U.S. dollar denominated term loans from March 2018 to March 2021. The transaction was announced in March and closed on April 13.

First Data estimates 2016 full year cash interest expense at approximately $1.0 billion.

Non-GAAP Measures

In certain circumstances, results have been presented that are non-GAAP (generally accepted accounting principles) measures and should be viewed in addition to, and not in lieu of, the company's reported results. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliation to the corresponding GAAP financial measures, provide a more complete understanding of our business. Investors are strongly encouraged to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain items and other adjustments and is used by management as a measure of operating performance. The company believes that the inclusion of supplementary adjustments to EBITDA applied in presenting adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that the company does

not expect to continue at the same level in the future. Adjusted net income, a measure used by management to measure operating performance, is not a recognized term under GAAP and is not an alternative to net income (loss) attributable to First Data as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, adjusted net income is not intended to be a measure of free cash flow available for management’s discretionary use. Management believes that adjusted net income is helpful in highlighting trends because adjusted net income excludes the results of items that may mask underlying trends in the business. Because not all companies use identical calculations, this presentation of adjusted EBITDA and adjusted net income may not be comparable to other similarly titled measures of other companies.

Certain measures in this release are presented excluding the estimated impact of foreign currency changes (constant currency). To present this information, monthly results in the current period for entities reporting in currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding month of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. Once translated, each month in the period is added together to calculate the constant currency current period results.

Reconciliations to comparable GAAP measures are available in the accompanying schedules and in the "Investor Relations" section of the company's website at investor.firstdata.com.

Investor Conference Call

The company will host a conference call and webcast on Monday, April 25, 2016, at 8 a.m. ET to review the

financial results.

To listen to the call, dial +1 (800) 708-4540 (U.S.) or +1 (847) 619-6397 (outside the U.S.); passcode 42146413, at least 10 minutes prior to the start of the call. The call will be webcast on the “Investor Relations” section of the First Data website at investor.firstdata.com where an accompanying slide presentation will also be available.

A replay of the call will be available through May 9, 2016, at +1 (888) 843-7419 (U.S.) or +1 (630) 652-3042 (outside the U.S.); passcode 42146413 and via webcast at investor.firstdata.com.

Please note: Other than the replay, First Data has not authorized, and disclaims responsibility for any recording, replay or distribution of any transcription of this call.

About First Data

First Data (NYSE: FDC) is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and 4,000 financial institutions in 118 countries around the world. The company’s 24,000 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 2,500 transactions per second and $1.9 trillion per year.

Contact

Peter Poillon

212-266-3565

Peter.Poillon@firstdata.com

Liidia Liuksila

Public Relations

212-515-0174

Liidia.Liuksila@firstdata.com

First Data Corporation

Consolidated Statements of Operations

(Unaudited)

(in millions)

Three Months Ended March 31,

% Change

Constant Currency % Change

Revenues:

Transaction and processing service fees (a)

Product sales and other

Total revenues (excluding reimbursable items)

Reimbursable PIN debit fees, postage and other

Expenses:

Cost of services

Cost of products sold

Selling, general and administrative

Depreciation and amortization

Other operating expense

Total expenses (excluding reimbursable items)

Operating profit

Interest expense, net

Loss on debt extinguishment

Other income (b)

Loss before income taxes and equity earnings in affiliates

Income tax expense

Equity earnings in affiliates (a)

Net loss

Less: Net income attributable to noncontrolling interests and redeemable noncontrolling interest

Net loss attributable to First Data Corporation

(See accompanying notes)

Summary Segment Data

Segment Revenues (c):

Global Business Solutions

Total segment revenues

Adjustments to reconcile to consolidated revenues:

Adjustments for non wholly owned entities (d)

Independent Sales Organization (ISO) commission expense (e)

Reimbursable PIN debit fees, postage, and other

Consolidated revenues

Adjusted EBITDA (f):

Corporate

Adjustments to reconcile to Net loss attributable to First Data Corporation:

Other items (g)

Stock-based compensation

Segment depreciation and amortization (a):

Total segment depreciation and amortization

Amortization of initial payments for new contracts

Total consolidated depreciation and amortization per unaudited consolidated statements of cash flows

Amortization of equity method investments

Total consolidated depreciation and amortization per unaudited consolidated statements of operations

Notes to Financial Schedules

Includes amortization of initial payments for new contracts (presented in "Summary Segment Data"), which is recorded as a contra-revenue within "Transaction and processing service fees" and amortization related to equity method investments, which is netted within the "Equity earnings in affiliates" line of

$9 million

$15 million

months ended

March 31, 2016

, respectively.

Other income includes divestitures, impairments, derivative gains and (losses), and non-operating foreign currency gains and (losses), as applicable to the periods presented.

Segment revenues exclude reimbursable PIN debit fees, postage and other revenue. For significant affiliates, segment revenue 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. In addition, our segment measures reflect revenue-based commission payments to Independent Sales Organizations (ISOs).

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. For other affiliates, we include equity earnings in affiliates, excluding amortization expense, in segment revenue and adjusted EBITDA by segment.

Independent Sales Organization commissions are presented as contra-revenues in the unaudited consolidated statements of operations.

Adjusted EBITDA includes equity earnings in affiliates and excludes depreciation and amortization expense, net income attributable to noncontrolling interests, other operating expenses, and other income (expense).

Restructuring, non-normal course litigation and regulatory settlements, debt issuance costs, and "Other income" as presented in the unaudited consolidated statements of operations, which includes divestitures, impairments, derivative gains and (losses), non-operating foreign currency gains and (losses), and Kohlberg Kravis Roberts & Co. (KKR) related items. KKR related items represent KKR annual sponsorship fees for management, consulting, financial and other advisory services. In the first quarter 2016, the company did not incur any KKR related items.

Adjusted Net Income

ADJUSTED NET INCOME

Three Months Ended March 31, 2016

Segment Adjustments (a)

Stock-based compensation (b)

Loss on debt extinguishment (c)

MTM adjustment for derivatives

Amortization of acquisition intangibles and deferred financing costs (e)

Restructuring, impairment, litigation and other

(1,084

(1,098

Other income (expense)

(Loss) income before income taxes and equity earnings in affiliates

Income tax expense

Net (loss) income

Net (loss) income attributable to First Data Corporation

Net (loss) income per share:

Diluted

Weighted-average common shares outstanding:

896,339,379

918,886,109

Represents proportional consolidation, Independent Sales Organization commissions, and reimbursable PIN debit fees, postage, and other.

Stock-based compensation expense includes $49 million of IPO-triggered expense, net of tax.

Represents costs associated with debt refinancing.

Represents mark-to-market activity related to our undesignated hedges, ineffectiveness of our designated hedges, and mark-to-market activity on our euro-denominated debt held in the United States.

Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made since 2007, excluding the percentage of our consolidated amortization of acquisition intangibles related to non wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance partners. This column also includes amortization related to deferred financing costs.

Represents restructuring, impairments, litigation and regulatory settlements, investments gains and (losses), and divestitures, as applicable to the periods presented.

Three Months Ended March 31, 2015

Loss on debt extinguishment (b)

Amortization of acquisition intangibles and deferred financing costs (d)

(1,040

(1,042

Income tax expense (benefit)

Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made since 2007, excluding the percentage of our consolidated amortization of acquisition intangibles related to non-wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance partners. This column also includes amortization related to deferred financing costs.

Non-GAAP Reconciliation: GAAP Net Loss to Adjusted Net Income

Three months ended

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

(1,217

Stock-based compensation (a)

Mark-to-market adjustment for derivatives and euro-denominated debt (c)

Restructuring, impairment, litigation, and other (e)

Includes $49 million and $254 million of IPO-triggered expense, net of tax, for Q1 2016 and Q4 2015, respectively.

Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made since 2007, excluding the percentage of our consolidated amortization of acquisition intangibles related to non wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance partners. This row also includes amortization related to deferred financing costs.

Represents restructuring, impairments, litigation and regulatory settlements, investments gains and losses, and divestitures, as applicable to the periods presented.

Operating Data

North America merchant transactions (a)

10,744

10,015

International merchant transactions (b)

North America card accounts on file (c)

International card accounts on file (d)

Network transactions (EFT and Stored Value) (e)

North American merchant transactions include acquired Visa and MasterCard credit and signature debit, American Express and Discover, PIN-debit, electronic benefits transactions, processed-only and gateway customer transactions at the POS. North American merchant transactions reflect 100% of alliance transactions.

International transactions include Visa, MasterCard, and other payment network merchant acquiring transactions for clients outside the U.S. and Canada. Transactions include credit, signature debit, PIN-debit POS, POS gateway, and ATM transactions.

North America card accounts on file reflect the total number of bankcard credit and retail credit accounts as of the end of the periods presented.

International card accounts on file reflect total bankcard and retail accounts outside the United States and Canada as of the end of the periods presented.

Network transactions include the debit issuer processing transactions,

STAR Network

issuer transactions, and closed loop and open loop POS transactions.

Selected Consolidated Balance Sheet and Cash Flow Data

SELECTED CONSOLIDATED BALANCE SHEET DATA

Cash and cash equivalents

Current settlement assets

Total assets

33,725

34,362

Short-term and current portion of long-term borrowings

Settlement obligations

Long-term borrowings

18,857

18,737

Total liabilities

30,041

30,625

Redeemable noncontrolling interest

Total First Data Corporation stockholders' equity

Noncontrolling interests

Total equity

SELECTED CONSOLIDATED CASH FLOW DATA

Source/(Use) of cash

Net cash provided by (used in) operating activities

Net cash used in investing activities

Net cash (used in) provided by financing activities

Supplemental cash flow data

Cash interest payments on long-term debt (a)

For purposes of this schedule, long-term debt excludes interest on capital leases.

Non-GAAP Reconciliation: Operating to Free Cash Flow

Capital expenditures

Distribution to minority interest

Free cash flow source/(use)

Forward Looking Statements

Notice to Investors, Prospective Investors and the Investment Community; Cautionary Information Regarding Forward-Looking Statements

Certain matters we discuss in our public statements may constitute forward-looking statements. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions which concern our strategy, plans, projections or intentions. Examples of forward-looking statements include, but are not limited to, all statements we make relating to revenue, earnings before net interest expense, income taxes, depreciation, and amortization (EBITDA), earnings, margins, growth rates, and other financial results for future periods. By their nature, forward-looking statements speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following: (1) adverse impacts from global economic, political, and other conditions affecting trends in consumer, business, and government spending; (2) our ability to anticipate and respond to changing industry trends, including technological changes and increasing competition; (3) our ability to successfully renew existing client contracts on favorable terms and obtain new clients; (4) our ability to prevent a material breach of security of any of our systems; (5) our ability to implement and improve processing systems to provide new products, improve functionality, and increase efficiencies; (6) our merchant alliance program which involves several alliances not under our sole control and each of which acts independently of the others; (7) credit and fraud risks in our business units and merchant alliances, particularly in the context of eCommerce and mobile markets; (8) consolidation among financial institution clients or other client groups that impacts our client relationships; (9) our ability to improve our profitability and maintain flexibility in our capital resources through the implementation of cost savings initiatives; (10) our ability to successfully value and integrate acquired businesses, including those outside of the United States; (11) our high degree of leverage; (12) adverse impacts from currency exchange rates or currency controls imposed by any government or otherwise; (13) changes in the interest rate environment that increase interest on our borrowings or the interest rate at which we can refinance our borrowings; (14) the impact of new laws, regulations, credit card association rules, or other industry standards; and (15) new lawsuits, investigations, or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings, and various other factors set forth in our Annual Report on Form 10-K for the period ended December 31, 2015, including but not limited to, Item 1 - Business, Item 1A - Risk Factors, and Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations. Except as required by law, we do not intend to revise or update any forward-looking statement as a result of new information, future developments or otherwise.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Entry into a Definitive Material Agreement - April 19, 2016
Major owner of FIRST DATA CORP just picked up 43,500,128 shares - April 15, 2016
FIRST DATA CORP's See Remarks just declared 0 ownership of the company. - April 13, 2016
FIRST DATA CORP's See Remarks just declared 0 ownership of the company. - April 13, 2016