Fiserv, Inc.
FISERV INC (Form: 8-K, Received: 02/06/2008 16:23:27)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 4, 2008

 

 

Fiserv, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Wisconsin   0-14948   39-1506125

(State or Other Jurisdiction

of Incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

255 Fiserv Drive, Brookfield, Wisconsin 53045

(Address of Principal Executive Offices, Including Zip Code)

(262) 879-5000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.01 Completion of Acquisition or Disposition of Assets.

On February 4, 2008, Fiserv, Inc. (the “Company”) completed the sale (the “Transaction”) of Fiserv Trust Company and the accounts of the Company’s institutional retirement plan and advisor services operations, the majority of the Fiserv Investment Support Services (“Fiserv ISS”) business, to TD AMERITRADE Online Holdings Corp. (“TD Ameritrade”) pursuant to the terms of a Stock Purchase Agreement, dated as of May 24, 2007, between the Company and TD Ameritrade (the “Agreement”). The Company received $225 million in cash at closing, plus the amount of acquired regulatory capital, and is entitled to receive contingent cash consideration of up to $100 million based on the achievement of revenue targets over the twelve months subsequent to closing. The Company expects to complete the sale of the remainder of the Fiserv ISS business to Robert Beriault Holdings, Inc. by the end of the second quarter of 2008.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement, a copy of which is filed herewith as Exhibit 2.1 and is incorporated herein by reference. There are representations and warranties contained in the Agreement which were made by the parties to each other as of specific dates. The assertions embodied in these representations and warranties were made solely for purposes of the Agreement and may be subject to important qualifications and limitations agreed to by the parties in connection with negotiating its terms. Moreover, certain representations and warranties may not be accurate or complete as of any specified date because they are subject to a contractual standard of materiality that is different from certain standards generally applicable to shareholders or were used for the purpose of allocating risk between the parties rather than establishing matters as facts. Therefore, you should not rely on the representations and warranties contained in the Agreement as statements of factual information.

 

Item 2.02 Results of Operations and Financial Condition.

On February 6, 2008, the Company issued a press release announcing its financial results for the quarter and year ended December 31, 2007. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

 

Item 7.01 Regulation FD Disclosure.

A copy of the press release announcing the completion of the Transaction is furnished herewith as Exhibit 99.2.

 

Item 9.01 Financial Statements and Exhibits.

Pro forma financial information

Pro forma financial information reflecting the sale of Fiserv ISS is not required because the results of operations from, and assets and liabilities related to, Fiserv ISS were reported as discontinued operations in the financial statements contained in the Company’s Form 8-K, dated November 13, 2007, and the Company’s quarterly reports on Form 10-Q for the quarters ended June 30, 2007 and September 30, 2007.


Exhibits

The following exhibits are being filed or furnished herewith:

 

Exhibit

Number

  

Description

  2.1    Stock Purchase Agreement, dated as of May 24, 2007, between Fiserv, Inc. and TD Ameritrade Online Holdings Corp. (1)
99.1    Press Release, dated February 6, 2008 (furnished pursuant to Item 2.02)
99.2    Press Release, dated February 4, 2008 (furnished pursuant to Item 7.01)

 

(1) Previously filed as exhibit 2.1 to the Company’s Quarterly Report on Form 10-Q, filed on August 3, 2007, and incorporated herein by reference.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  FISERV, INC.
Date: February 6, 2008   By:  

/s/ Thomas J. Hirsch

    Thomas J. Hirsch
    Executive Vice President,
    Chief Financial Officer,
    Treasurer and Assistant Secretary


EXHIBIT INDEX

 

Exhibit

Number

  

Description

  2.1    Stock Purchase Agreement, dated as of May 24, 2007, between Fiserv, Inc. and TD Ameritrade Online Holdings Corp. (1)
99.1    Press Release, dated February 6, 2008 (furnished pursuant to Item 2.02)
99.2    Press Release, dated February 4, 2008 (furnished pursuant to Item 7.01)

 

(1) Previously filed as exhibit 2.1 to the Company’s Quarterly Report on Form 10-Q, filed on August 3, 2007, and incorporated herein by reference.

Exhibit 99.1

For more information contact:

Investor Relations:

David Banks

Vice President Investor Relations

262-879-5055

david.banks@fiserv.com

Media Relations:

Lori Stafford

Assistant Vice President Corp. Comm.

262-879-5130

lori.stafford@fiserv.com

For immediate release:

February 6, 2008

Fiserv Reports Fourth Quarter and Year-End 2007 Results

Financial Segment and CheckFree Results Drive Strong Margins and Cash Flow Improvements;

Transformational Changes Highlight 2007 Accomplishments;

Company Provides 2008 Adjusted EPS Guidance of $3.33 to $3.47 per Share

Brookfield, Wis., Feb. 6, 2008— Fiserv, Inc. (NASDAQ: FISV), a leading provider of information management systems and services solutions, today reported financial results for the fourth quarter and full year. The 2007 financial results reflect the dispositions of certain businesses, including Fiserv Health, which was reported as discontinued operations in the fourth quarter of 2007 and for all prior periods presented.

Total revenues increased 19 percent to $1.11 billion for the fourth quarter compared with $930.1 million in 2006. For the full year, revenues were $3.92 billion, up 10 percent compared with $3.57 billion in 2006. Adjusted internal revenue growth in the company’s financial segment was 4 percent in the fourth quarter and 5 percent for the full year 2007.

GAAP earnings per share for the fourth quarter of 2007 were $0.58 per share, including $0.54 from continuing operations, compared with $0.52 in 2006. GAAP earnings per share for 2007 were $2.60 per share, including $2.42 from continuing operations, compared with $2.19 in 2006.

Adjusted earnings per share from continuing operations were $0.69 for the fourth quarter of 2007, compared with $0.58 for the fourth quarter of 2006, an increase of 19 percent. Adjusted earnings per share from continuing operations for 2007 were $2.66, compared with $2.31 for 2006, an increase of 15 percent.

Overall adjusted operating margin increased 110 basis points to 25.8 percent for the fourth quarter, and was 26.1 percent for the full year, an increase of 100 basis points compared with the prior year. Financial segment adjusted operating margin increased 200 basis points to 27.0 percent for the quarter, and for the full year was up 270 basis points to 27.1 percent compared to the prior year periods.

“Our fourth quarter financial results validate the strength of our recurring-revenue business model and cap a very strong year,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “We delivered on our financial goals while significantly re-shaping the company to enhance our financial profile.”

 

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ACQUISITION AND DIVESTITURE ACTIVITY

Fiserv recently completed a number of transformative transactions:

 

   

On Dec. 3, 2007, the company completed its acquisition of CheckFree Corporation (“CheckFree”) for approximately $4.4 billion in cash, significantly enhancing its presence in the fast-growing markets of on-line bill payment, Internet banking, operational risk management and investment services.

 

   

On Jan. 10, 2008, Fiserv completed the disposition of a majority of its health businesses to UnitedHealthcare. The company estimates net proceeds from this transaction of approximately $460 million after income taxes, final net working capital adjustments and transaction costs.

 

   

On Feb. 4, 2008, Fiserv completed the sale of the majority of the Fiserv Investment Support Services (“Fiserv ISS”) business to TD Ameritrade, the first of two transactions related to the sale of these assets. The company estimates net proceeds from the TD Ameritrade transaction – including excess capital and excluding any contingent earn-out payment – of approximately $200 million. The second part of the sale – to Robert Beriault Holdings, Inc. – is expected to close by the end of the second quarter of 2008.

 

   

On Dec. 31, 2007, Fiserv completed the disposition of CredStar, a mortgage credit reporting unit, and, on Jan. 24, 2008, the company divested Del Mar Database, a provider of loan broker management products.

“We made great progress over the last year, focusing the company in areas that have attractive growth characteristics and will translate to more value for our clients,” said Yabuki. “We will continue to refine our mix of businesses to strengthen our leadership position in serving the financial services industry.”

OTHER BUSINESS AND OPERATING HIGHLIGHTS

 

   

Full-year free cash flow from continuing operations was up 15 percent to $438 million compared with 2006;

 

   

Overall adjusted operating margin in the fourth quarter of 2007 was 25.8 percent, up 110 basis points year over year. For the full year 2007, adjusted operating margin was 26.1 percent, up 100 basis points compared with 2006. Adjusted operating margin in the financial segment was 27.0 percent in the fourth quarter of 2007 and 27.1 percent for the full year 2007, up 200 and 270 basis points versus the prior year, respectively;

 

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Fiserv EFT completed 46 new sales in the quarter with 90 percent made within the Fiserv core processing client base;

 

   

In the quarter, the company added 90 clients for its branch capture product and 142 clients for its merchant capture product;

 

   

In the quarter, the company signed 97 new clients for its electronic bill payment services and now has nearly 3,300 electronic bill pay clients;

 

   

CheckFree’s Electronic Biller Services added significant content by implementing e-Bills for American Express’s 20 million U.S. consumer cardholders, and for more than 17 million U.S. policyholders of Allstate Insurance;

 

   

American Chartered Bank, a $2.6 billion financial institution based in Schaumburg, Ill., signed a three-year renewal agreement with Fiserv ITI Outsourcing. The bank also selected Fiserv EFT to handle processing of its debit card and ATM processing business, a competitive takeaway for Fiserv;

 

   

Personix, a Fiserv business unit, was selected by Misys Healthcare Systems to provide print and electronic fulfillment for clients’ billing statements and explanations of benefits. Headquartered in Raleigh, N.C., Misys Healthcare serves more than 100,000 health care professionals delivering software and services to physicians, caregivers, and the healthcare community;

 

   

In 2007, Fiserv added a total of 52 new de novo bank clients to its roster, an increase of 44 percent over the signings in 2006.

OUTLOOK FOR 2008

Fiserv expects full-year 2008 adjusted earnings from continuing operations to be within a range of $3.33 to $3.47 per share, which represents growth of 25 to 30 percent compared with adjusted earnings per share from continuing operations of $2.66 in 2007. Fiserv expects full-year 2008 overall company adjusted internal revenue growth of 5 to 7 percent, with the financial segment at the upper end of the range and the insurance segment at the lower end of the range.

“We expect to achieve strong results in 2008 even in the face of market variability,” said Yabuki. “And given the nature of our business model, we believe we are positioned to achieve similarly strong results in 2009.”

EARNINGS CONFERENCE CALL

The company will discuss its fourth quarter and full-year 2007 results on a conference call and web cast at 4 p.m. CST on Feb. 6. To register for the event and to access supporting materials, go to

 

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www.fiserv.com and click on the link for the event in the “Upcoming Events” section of the home page. From there, click “Access Event.”

USE OF NON-GAAP FINANCIAL INFORMATION

We supplement our reporting of total revenues, operating income, income from continuing operations, net income and earnings per share information determined in accordance with GAAP by using “adjusted revenues,” “adjusted operating income,” “adjusted income from continuing operations,” “adjusted earnings per share from continuing operations,” “free cash flow,” and “adjusted internal revenue growth,” in this earnings release. Management believes that certain non-cash or unusual adjustments to revenues or expenses and the exclusion of certain pass-through revenues and expenses enhance the evaluation of our performance, because they are not pertinent to day-to-day operational decisions made in the business. Therefore, we exclude these items from GAAP revenue, operating income, income from continuing operations and earnings per share in calculating these non-GAAP measures.

Examples of such non-cash or unusual items may include, but are not limited to: non-cash deferred revenue adjustments arising from acquisitions, non-cash intangible asset amortization expense associated with acquisitions, and merger and integration expenses, all offset by the cumulative income tax impact of these items. We exclude these items to more clearly focus on the factors we believe are pertinent to the daily management of our operations, and our management uses such results to evaluate the impact of operational business decisions. We regularly report adjusted results to our chief executive officer, who uses this information to allocate resources to our various business units.

For a discussion of free cash flow and adjusted internal revenue growth, please see pages 10 and 12, respectively. We believe this supplemental information is useful to investors for their independent evaluation and understanding of the performance of our management and our core business performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, revenues, operating income, income from continuing operations, net income and earnings per share or any other amount determined in accordance with GAAP. These non-GAAP measures reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

About Fiserv, Inc.

Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, provides information management and electronic commerce systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, electronic bill payment and presentment, investment management solutions, business process outsourcing (BPO), software and systems solutions. Headquartered in Brookfield, Wis., the company is the leading provider of core processing solutions for U.S. banks, credit

 

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unions and thrifts. Fiserv was ranked the largest provider of information technology services to the financial services industry worldwide in the 2004, 2005 and 2006 FinTech 100 surveys. In 2007, the company completed the acquisition of CheckFree, a leading provider of electronic commerce services. Fiserv reported nearly $4 billion in total revenue from continuing operations for 2007. For more information, please visit www.fiserv.com .

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing of, and proceeds from, the sale of discontinued operations, and anticipated adjusted earnings per share from continuing operations and adjusted internal revenue growth in 2008 and 2009. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may adversely affect the company’s results include, among others, the company’s ability to complete the sale of the remainder of the Fiserv ISS business, the company’s ability to successfully integrate CheckFree’s operations, changes in clients’ demand for the company’s products or services, pricing or other actions by competitors, the impact of the company’s Fiserv 2.0 initiatives, general changes in economic conditions and other factors included in the company’s filings with the SEC, including its Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q. You should consider these factors carefully in evaluating forward-looking statements, and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

 

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FISERV, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (1)

(In thousands, except per share amounts, unaudited)

 

     Three Months Ended     Years Ended  
     December 31,     December 31,  
     2007     2006     2007     2006  

Revenues

        

Processing and services

   $ 740,076     $ 632,464     $ 2,692,472     $ 2,488,200  

Product

     370,175       297,587       1,229,222       1,077,774  
                                

Total revenues

     1,110,251       930,051       3,921,694       3,565,974  
                                

Expenses

        

Cost of processing and services

     463,014       407,291       1,658,364       1,578,095  

Cost of product

     294,913       233,342       979,120       839,509  

Selling, general and administrative (2)

     171,349       128,994       554,465       483,652  
                                

Total expenses

     929,276       769,627       3,191,949       2,901,256  
                                

Operating income

     180,975       160,424       729,745       664,718  

Interest expense – net

     (35,988 )     (10,596 )     (69,197 )     (40,672 )
                                

Income from continuing operations before income taxes

     144,987       149,828       660,548       624,046  

Income tax provision

     54,778       58,061       252,489       235,788  
                                

Income from continuing operations

     90,209       91,767       408,059       388,258  

Income from discontinued operations – net of tax (3)

     6,446       14,179       31,270       61,656  
                                

Net income

   $ 96,655     $ 105,946     $ 439,329     $ 449,914  
                                

GAAP Earnings per share

        

Continuing operations (1)(2)

   $ 0.54     $ 0.52     $ 2.42     $ 2.19  

Discontinued operations (3)

     0.04       0.08       0.19       0.35  
                                

Total

   $ 0.58     $ 0.61     $ 2.60     $ 2.53  
                                

Diluted shares used in computing earnings per share

     165,853       174,906       168,760       177,529  

 

(1)

The 2007 results include the operations of CheckFree from the date of acquisition on Dec. 3, 2007. The company has reflected 28 days of CheckFree results in the fourth quarter.

(2)

Selling, general and administrative expenses include a $7.5 million charge recorded in the fourth quarter of 2007 in connection with the amendment of an employment agreement originally entered in October 2005 for the creation of a wholly-owned offshore captive operation. In addition, the company incurred merger costs associated with the acquisition of CheckFree totaling $9.5 million and a charge of $9.1 million primarily associated with consolidation of operations within the company’s lending division in the fourth quarter of 2007. See page 9 for further detail associated with these items and a reconciliation of GAAP earnings per share from continuing operations to adjusted earnings per share from continuing operations.

(3)

The company has reported Fiserv ISS, certain health businesses (Fiserv Health) and certain lending businesses as discontinued operations. Discontinued operations includes pre-tax charges of $32 million in 2007, or $0.13 per share, primarily comprised of $18 million related to the disposition activities including retention bonuses, severance and other sales expenses and a $14 million charge in Fiserv Health for employee severance, facility shutdown and other charges to cease an investment in a new technology platform in the health plan management business in the second quarter of 2007. The company anticipates that the gain on sale of Fiserv Health will be reflected in the first quarter of 2008 and the gain on sale of Fiserv ISS will be reflected in 2008.

 

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FISERV, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (1)

(In thousands, unaudited)

 

     December 31,    December 31,
     2007    2006

Assets

     

Cash and cash equivalents

   $ 297,476    $ 116,896

Trade accounts receivable - net

     839,449      506,136

Deferred income taxes

     71,385      29,143

Prepaid expenses and other current assets

     353,149      128,510

Assets of discontinued operations held for sale (1)

     2,616,911      2,673,530
             

Total current assets

     4,178,370      3,454,215

Property and equipment - net

     371,452      220,335

Intangible assets - net

     2,323,703      528,585

Goodwill

     4,843,461      2,007,719

Other long-term assets

     128,719      40,844
             

Total

   $ 11,845,705    $ 6,251,698
             

Liabilities and Shareholders’ Equity

     

Trade accounts payable

   $ 181,962    $ 143,056

Accrued expenses

     599,474      320,434

Current maturities of long-term debt

     509,488      —  

Deferred revenues

     351,181      246,747

Liabilities of discontinued operations held for sale (1)

     2,111,937      2,139,399
             

Total current liabilities

     3,754,042      2,849,636

Long-term debt

     4,894,752      744,897

Deferred income taxes

     571,349      169,702

Other long-term liabilities

     158,711      61,841
             

Total Liabilities

     9,378,854      3,826,076

Shareholders’ Equity

     2,466,851      2,425,622
             

Total

   $ 11,845,705    $ 6,251,698
             

 

(1)

Assets and liabilities of Fiserv ISS, Fiserv Health and certain lending businesses are reported as assets and liabilities of discontinued operations held for sale for all periods presented.

 

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FISERV, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – CONTINUING OPERATIONS (1)

(In thousands, unaudited)

 

     Years Ended December 31,  
     2007     2006  

Cash flows from operating activities

    

Net income

   $ 439,329     $ 449,914  

Adjustment for discontinued operations

     (31,270 )     (61,656 )

Adjustments to reconcile net income to net cash provided by operating activities:

    

Deferred income taxes

     21,595       14,362  

Share-based compensation

     23,423       26,445  

Excess tax benefit from exercise of stock options

     (12,300 )     (10,008 )

Settlement of interest rate hedge contracts

     (30,239 )     —    

Depreciation and amortization

     192,873       169,449  

Changes in assets and liabilities, net of effects from acquisitions:

    

Trade accounts receivable

     (34,624 )     (52,324 )

Prepaid expenses and other assets

     (32,336 )     (12,377 )

Trade accounts payable and other liabilities

     19,399       9,762  

Deferred revenues

     8,422       8,355  
                

Net cash provided by operating activities

     564,272       541,922  
                

Cash flows from investing activities

    

Capital expenditures, including capitalization of software costs

     (160,416 )     (162,395 )

Payment for acquisitions of businesses, net of cash acquired

     (4,332,575 )     (186,536 )

Other investing activities

     19,164       (1,397 )
                

Net cash used in investing activities

     (4,473,827 )     (350,328 )
                

Cash flows from financing activities

    

Proceeds from long-term debt - net

     4,460,321       137,809  

Issuance of common stock and treasury stock

     50,380       36,277  

Purchases of treasury stock

     (469,217 )     (560,111 )

Excess tax benefit from exercise of stock options

     12,300       10,008  

Other financing activities

     (30,271 )     2,766  
                

Net cash provided by (used in) financing activities

     4,023,513       (373,251 )
                

Change in cash and cash equivalents

     113,958       (181,657 )

Net cash transactions from discontinued operations

     66,622       152,528  

Beginning balance

     116,896       146,025  
                

Ending balance

   $ 297,476     $ 116,896  
                

 

(1)

Cash flows from discontinued operations, comprised of Fiserv ISS, Fiserv Health and certain lending businesses, are excluded from the above Condensed Consolidated Statements of Cash Flows for all periods presented.

 

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FISERV, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED INCOME AND

EARNINGS PER SHARE FROM CONTINUING OPERATIONS

(In thousands, except per share amounts, unaudited)

 

     Three Months Ended     Years Ended  
     December 31,     December 31,  
     2007     2006     2007     2006  

GAAP income from continuing operations (1)

   $ 90,209     $ 91,767     $ 408,059     $ 388,258  

Adjustments:

        

Employee severance, facility shutdown and other (2)

     9,100       9,000       12,000       9,000  

Merger costs and other adjustments (3)

     12,600       —         12,600       —    

Amortization of acquisition-related intangible assets

     18,050       7,398       41,822       26,379  

Tax benefit of adjustments

     (15,304 )     (6,050 )     (25,573 )     (13,453 )
                                

Adjusted income from continuing operations (1)

   $ 114,655     $ 102,115     $ 448,908     $ 410,184  
                                

GAAP earnings per share - continuing operations (1)

   $ 0.54     $ 0.52     $ 2.42     $ 2.19  

Adjustments - net of income taxes:

        

Employee severance, facility shutdown and other (2)

     0.03       0.03       0.04       0.03  

Merger costs and other adjustments (3)

     0.05       —         0.05       —    

Amortization of acquisition-related intangible assets

     0.07       0.03       0.15       0.09  
                                

Adjusted earnings per share - continuing operations (1)

   $ 0.69     $ 0.58     $ 2.66     $ 2.31  
                                

Diluted shares used in computing earnings per share

     165,853       174,906       168,760       177,529  

 

(1)

GAAP and adjusted income from continuing operations include a $7.5 million pre-tax charge, or $0.03 per share, recorded in the fourth quarter of 2007 in connection with the amendment of an employment agreement originally entered in October 2005 for the creation of a wholly-owned offshore captive operation. The original agreement required the company to make a special performance payment based on a multiple of the cumulative operating profits of the business unit through the end of 2008. Due to the planned, continuing globalization of the company’s workforce in 2008 significantly in excess of the current 1,900 employees, the company amended the agreement to provide for two payments: a payment of $7.5 million, which was expensed in 2007; and an additional payment of $7.5 million to be earned and expensed in 2008 and paid in 2009.

(2)

These charges relate primarily to employee severance and facility shutdown expenses in the company’s lending and insurance businesses totaling $9.1 million in the fourth quarter of 2007, $12 million for the full year 2007 and $9 million in the comparable periods of 2006. The charges in the fourth quarter of 2007 include $7.5 million in the company’s lending division related primarily to facility closures and severance costs associated with combining operations due to the overall market decline in home equity processing volumes. The actions associated with these charges are designed to more closely align the existing cost structure with the current revenues from these businesses.

(3)

Merger costs primarily represent expenses associated with the acquisition of CheckFree, which closed on Dec. 3, 2007, including integration project management, employee severance, retention bonuses, net interest expense on borrowings incurred prior to closing, and other expenses totaling $9.5 million. In accordance with GAAP, merger and integration costs such as severance and facility shutdown costs directly related to existing Fiserv operations are required to be expensed. However, direct merger and certain integration costs related to CheckFree operations are recorded in the initial purchase accounting for the acquisition. In addition, in connection with the preliminary purchase price allocation, the company estimated the fair value of certain deferred revenue from license fees and other customer payments assumed in connection with the CheckFree acquisition. Revenue in December totaling $3.1 million would have been recognized by CheckFree or companies it acquired consistent with past practices. However, such revenue was not recorded by the company during the period ending December 31, 2007 due to the deferred revenue purchase accounting adjustment recorded in accordance with GAAP.

See page 4 for disclosures related to the use of non-GAAP performance measures.

 

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FISERV, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP RESULTS TO ADJUSTED RESULTS

(Dollars in thousands, unaudited)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2007     2006     2007     2006  

Revenues – GAAP

   $ 1,110,251     $ 930,051     $ 3,921,694     $ 3,565,974  

Prescription product costs

     (151,645 )     (99,108 )     (449,035 )     (366,602 )

Customer reimbursements

     (112,495 )     (113,720 )     (432,069 )     (408,980 )

Deferred revenue adjustment

     3,100       —         3,100       —    
                                

Adjusted revenues

   $ 849,211     $ 717,223     $ 3,043,690     $ 2,790,392  
                                

Operating income – GAAP

   $ 180,975     $ 160,424     $ 729,745     $ 664,718  

Employee severance, facility shutdown and other

     9,100       9,000       12,000       9,000  

Merger costs and other adjustments

     10,700       —         10,700       —    

Amortization of acquisition-related intangible assets

     18,050       7,398       41,822       26,379  
                                

Adjusted operating income

   $ 218,825     $ 176,822     $ 794,267     $ 700,097  
                                

Operating margin – GAAP

     16 %     17 %     19 %     19 %

Adjusted operating margin

     26 %     25 %     26 %     25 %

See page 4 for disclosures related to the use of non-GAAP performance measures and the footnotes on pages 9 and 12 for explanations of adjustments to revenue and operating income.

FISERV, INC. AND SUBSIDIARIES

FREE CASH FLOW

(Dollars in thousands, unaudited)

 

     Years Ended December 31,  
     2007     2006  

Net income

   $ 439,329     $ 449,914  

Adjustment for discontinued operations

     (31,270 )     (61,656 )

Share-based compensation

     23,423       26,445  

Settlement of interest rate hedge contracts

     (30,239 )     —    

Depreciation and amortization

     192,873       169,449  

Capital expenditures

     (160,416 )     (162,395 )
                

Free cash flow before changes in working capital

     433,700       421,757  

Changes in working capital-net

     (29,844 )     (42,230 )

CheckFree financing and other non-recurring items

     34,139       —    
                

Free cash flow

   $ 437,995     $ 379,527  
                

Net cash provided by operating activities

   $ 564,272     $ 541,922  

Capital expenditures

     (160,416 )     (162,395 )

CheckFree financing and other non-recurring items

     34,139       —    
                

Free cash flow

   $ 437,995     $ 379,527  
                

Free cash flow is measured as net income, excluding discontinued operations, plus share-based compensation, depreciation and amortization, less capital expenditures, plus or minus net changes in working capital as reported in the company’s condensed consolidated statements of cash flows. Free cash flow has also been adjusted for CheckFree financing and other non-recurring items, including the payment of $30 million to settle treasury-lock hedge contracts entered into in connection with the financing of the acquisition of CheckFree and non-recurring payments of $4 million related to certain one-time liabilities assumed on the opening balance sheets of acquired companies. Management believes it is appropriate to exclude these payments from the calculation of free cash flow since they are not indicative of the future free cash flow performance of Fiserv.

 

10 of 16


FISERV, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP RESULTS TO ADJUSTED RESULTS BY SEGMENT

(Dollars in thousands, unaudited)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2007     2006     2007     2006  

Financial Institution Services (“Financial”)

        

Revenues – GAAP (1)

   $ 768,689     $ 739,316     $ 3,005,928     $ 2,838,459  

Customer reimbursements

     (111,953 )     (112,813 )     (429,185 )     (405,145 )
                                

Adjusted revenues

   $ 656,736     $ 626,503     $ 2,576,743     $ 2,433,314  
                                

Operating income – GAAP (1)

   $ 163,649     $ 142,029     $ 667,263     $ 565,586  

Employee severance, facility shutdown and other

     7,500       9,000       7,500       9,000  

Amortization of acquisition-related intangible assets

     6,059       5,395       23,234       20,042  
                                

Adjusted operating income

   $ 177,208     $ 156,424     $ 697,997     $ 594,628  
                                

Operating margin – GAAP

     21 %     19 %     22 %     20 %

Adjusted operating margin

     27 %     25 %     27 %     24 %

Insurance Services (“Insurance”)

        

Revenues – GAAP (2)

   $ 254,689     $ 190,735     $ 828,893     $ 727,515  

Prescription product costs

     (151,645 )     (99,108 )     (449,035 )     (366,602 )

Customer reimbursements

     (542 )     (907 )     (2,884 )     (3,835 )
                                

Adjusted revenues

   $ 102,502     $ 90,720     $ 376,974     $ 357,078  
                                

Operating income – GAAP (2)

   $ 17,239     $ 18,395     $ 62,395     $ 99,132  

Employee severance, facility shutdown and other

     1,600       —         4,500       —    

Amortization of acquisition-related intangible assets

     3,248       2,003       9,845       6,337  
                                

Adjusted operating income

   $ 22,087     $ 20,398     $ 76,740     $ 105,469  
                                

Operating margin – GAAP

     7 %     10 %     8 %     14 %

Adjusted operating margin

     22 %     22 %     20 %     30 %

CheckFree (3)

        

Revenues – GAAP

   $ 86,873       $ 86,873    

Deferred revenue adjustment

     3,100         3,100    
                    

Adjusted revenues

   $ 89,973       $ 89,973    
                    

Operating income – GAAP

   $ 14,487       $ 14,487    

Merger costs and other adjustments

     3,800         3,800    

Amortization of acquisition-related intangible assets

     8,743         8,743    
                    

Adjusted operating income

   $ 27,030       $ 27,030    
                    

Operating margin – GAAP

     17 %       17 %  

Adjusted operating margin

     30 %       30 %  

 

(1)

Included in the Financial segment results were early contract termination fees of $5.5 million for the three months ended and $35.0 million for the year ended December 31, 2007, compared with $6.9 million and $23.3 million, respectively, for the comparable periods in 2006. This segment’s businesses generally enter into three- to five-year contracts that contain early contract termination fees. These fees are unpredictable and can vary significantly from period to period based on the number and size of terminated contracts and how early in the contract term a contract is terminated.

(2)

Included in the Insurance segment results was a decline of $32.8 million in higher-margin flood claims processing revenues from $36.3 million in 2006 to $3.6 million in 2007.

(3)

CheckFree is presented as a separate segment because it was acquired on Dec. 3, 2007. In 2008, the company will realign its reporting segments when its new reporting structure is finalized.

See page 4 for disclosures related to the use of non-GAAP performance measures and the footnotes on pages 9 and 12 for explanations of adjustments to revenue and operating income.

 

11 of 16


FISERV, INC. AND SUBSIDIARIES

INTERNAL REVENUE GROWTH PERCENTAGES BY SEGMENT (1)

(Unaudited)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 

Segment

   2007     2006     2007     2006  

Financial

   3 %   3 %   4 %   6 %

Insurance

   2 %   6 %   0 %   10 %
                        

Total (2)

   3 %   3 %   3 %   7 %
                        
     Adjusted  (3)
Three Months Ended
December 31,
    Adjusted  (3)
Years Ended
December 31,
 
     2007     2006     2007     2006  

Financial

   4 %   6 %   5 %   6 %

Insurance

   (2 )%   (11 )% (4)   (9 )% (4)   (2 )% (4)
                        

Total (2)

   3 %   3 % (4)   3 % (4)   5 % (4)
                        

 

(1)

Internal revenue growth percentages are measured as the increase in total revenues for the current period less “acquired revenue from acquisitions” divided by total revenues from the prior year period plus “acquired revenue from acquisitions.” “Acquired revenue from acquisitions” was $63.9 million ($5.7 million in the Financial segment and $58.2 million in the Insurance segment) for the fourth quarter of 2007 and $147.0 million ($43.7 million in the Financial segment and $103.3 million in the Insurance segment) for the year ended December 31, 2007 and represents pre-acquisition adjusted revenue of acquired companies, less dispositions, for the comparable prior year period. Acquired revenues in the Financial segment for the year ended December 31, 2006, include customer reimbursement pass-through costs of $22.7 million.

(2)

Total internal revenue growth percentage excludes the recent acquisition of CheckFree in December due to only 28 days of revenue and earnings being recorded in 2007.

(3)

The adjusted internal revenue growth percentages exclude the impact of customer reimbursements and prescription product costs, which are included in revenues and expenses under GAAP. The adjusted internal revenue growth percentages for 2006 exclude the impact of a large contract termination fee recognized in the fourth quarter of 2005 of $26.3 million in the Financial segment.

(4)

Flood claims processing revenue was $0.6 million, $1.8 million and $15.9 million in the fourth quarter of 2007, 2006 and 2005 and $3.6 million, $36.3 million and $28.5 million in the full year of 2007, 2006 and 2005, respectively. Excluding flood claim processing revenue, the adjusted internal revenue growth (decline) rate for the company and the Insurance segment would have been 4 percent and (2) percent in the full year of 2007, 5 percent and (4) percent in the full year of 2006, and 5 percent and 3 percent in the fourth quarter of 2006, respectively.

Actual and adjusted internal revenue growth percentages are non-GAAP financial measures that the company believes are useful to investors because they present internal revenue growth both including and excluding one large contract termination fee recognized in 2005, as well as customer reimbursements and prescription product costs that must be presented in revenue under GAAP. In addition, the company believes that the presentation of its adjusted internal revenue growth rate both including and excluding flood claims processing revenue is useful to investors because it enables them to understand the impact of these revenues, which can significantly impact the company’s internal revenue growth rate.

 

12 of 16


FISERV, INC. AND SUBSIDIARIES

SUPPLEMENTAL 2007 HISTORICAL FINANCIAL INFORMATION BY QUARTER

(In thousands, except per share amounts, unaudited)

 

     First
Quarter
2007
    Second
Quarter
2007
    Third
Quarter
2007
    Fourth
Quarter
2007
     Full Year
2007
 

Revenues

           

Processing and services

   $ 645,068     $ 654,945     $ 652,383     $ 740,076      $ 2,692,472  

Product

     298,065       283,891       277,091       370,175        1,229,222  
                                         

Total revenues

     943,133       938,836       929,474       1,110,251        3,921,694  
                                         

Expenses

           

Cost of processing and services

     403,171       398,851       393,328       463,014        1,658,364  

Cost of product

     235,530       225,337       223,340       294,913        979,120  

Selling, general and administrative

     127,980       132,556       122,580       171,349        554,465  
                                         

Total expenses

     766,681       756,744       739,248       929,276        3,191,949  
                                         

Operating income

     176,452       182,092       190,226       180,975        729,745  

Interest expense – net

     (9,110 )     (11,445 )     (12,654 )     (35,988 )      (69,197 )
                                         

Income from continuing operations before income taxes

     167,342       170,647       177,572       144,987        660,548  

Income tax provision

     65,129       65,385       67,197       54,778        252,489  
                                         

Income from continuing operations

     102,213       105,262       110,375       90,209        408,059  

Income from discontinued operations – net of tax

     11,350       2,974       10,500       6,446        31,270  
                                         

Net income

   $ 113,563     $ 108,236     $ 120,875     $ 96,655      $ 439,329  
                                         

GAAP earnings per share

           

Continuing operations

   $ 0.59     $ 0.62     $ 0.66     $ 0.54      $ 2.42  

Discontinued operations

     0.07       0.02       0.06       0.04        0.19  
                                         

Total

   $ 0.66     $ 0.64     $ 0.73     $ 0.58      $ 2.60  
                                         

Adjusted earnings per share – continuing operations

           

Earnings per share – continuing operations

   $ 0.59     $ 0.62     $ 0.66     $ 0.54      $ 2.42  

Employee severance, facility shutdown and other

     —         0.01       —         0.03        0.04  

Merger costs and other adjustments

     —         —         —         0.05        0.05  

Amortization of acquisition-related intangible assets

     0.03       0.03       0.03       0.07        0.15  
                                         

Adjusted earnings per share – continuing operations

   $ 0.62     $ 0.66     $ 0.69     $ 0.69      $ 2.66  
                                         

Diluted shares used in computing earnings per share

     172,637       169,907       166,641       165,853        168,760  

See page 4 for disclosures related to the use of non-GAAP performance measures and footnotes on page 9 for explanations of adjustments to revenues and operating income.

 

13 of 16


FISERV, INC. AND SUBSIDIARIES

QUARTERLY RECONCILIATION OF GAAP RESULTS TO ADJUSTED RESULTS BY SEGMENT

(Dollars in thousands, unaudited)

 

     First
Quarter
2007
    Second
Quarter
2007
    Third
Quarter
2007
    Fourth
Quarter
2007
    Full
Year
2007
 

Total Company

          

Revenues – GAAP

   $ 943,133     $ 938,836     $ 929,474     $ 1,110,251     $ 3,921,694  

Prescription product costs

     (98,435 )     (100,348 )     (98,607 )     (151,645 )     (449,035 )

Customer reimbursements

     (118,532 )     (99,608 )     (101,434 )     (112,495 )     (432,069 )

Deferred revenue adjustment

     —         —         —         3,100       3,100  
                                        

Adjusted revenues

   $ 726,166     $ 738,880     $ 729,433     $ 849,211     $ 3,043,690  
                                        

Operating income – GAAP (1)

   $ 176,452     $ 182,092     $ 190,226     $ 180,975     $ 729,745  

Employee severance, facility shutdown and other

     —         2,900       —         9,100       12,000  

Merger costs and other adjustments

     —         —         —         10,700       10,700  

Amortization of acquisition-related intangible assets

     7,250       8,127       8,395       18,050       41,822  
                                        

Adjusted operating income

   $ 183,702     $ 193,119     $ 198,621     $ 218,825     $ 794,267  
                                        

Operating margin – GAAP

     19 %     19 %     20 %     16 %     19 %

Adjusted operating margin

     25 %     26 %     27 %     26 %     26 %

Financial

          

Revenues – GAAP

   $ 753,404     $ 741,884     $ 741,951     $ 768,689     $ 3,005,928  

Customer reimbursements

     (117,619 )     (97,812 )     (101,801 )     (111,953 )     (429,185 )
                                        

Adjusted revenues

   $ 635,785     $ 644,072     $ 640,150     $ 656,736     $ 2,576,743  
                                        

Operating income – GAAP

   $ 162,729     $ 166,319     $ 174,566     $ 163,649     $ 667,263  

Employee severance, facility shutdown and other

     —         —         —         7,500       7,500  

Amortization of acquisition-related intangible assets

     5,390       5,599       6,186       6,059       23,234  
                                        

Adjusted operating income

   $ 168,119     $ 171,918     $ 180,752     $ 177,208     $ 697,997  
                                        

Operating margin – GAAP

     22 %     22 %     24 %     21 %     22 %

Adjusted operating margin

     26 %     27 %     28 %     27 %     27 %

Insurance

          

Revenues – GAAP

   $ 189,729     $ 196,952     $ 187,523     $ 254,689     $ 828,893  

Prescription product costs

     (98,435 )     (100,348 )     (98,607 )     (151,645 )     (449,035 )

Customer reimbursements

     (913 )     (1,796 )     367       (542 )     (2,884 )
                                        

Adjusted revenues

   $ 90,381     $ 94,808     $ 89,283     $ 102,502     $ 376,974  
                                        

Operating income – GAAP

   $ 13,723     $ 15,773     $ 15,660     $ 17,239     $ 62,395  

Employee severance, facility shutdown and other

     —         2,900       —         1,600       4,500  

Amortization of acquisition-related intangible assets

     1,860       2,528       2,209       3,248       9,845  
                                        

Adjusted operating income

   $ 15,583     $ 21,201     $ 17,869     $ 22,087     $ 76,740  
                                        

Operating margin – GAAP

     7 %     8 %     8 %     7 %     8 %

Adjusted operating margin

     17 %     22 %     20 %     22 %     20 %

CheckFree

          

Revenues – GAAP

         $ 86,873     $ 86,873  

Deferred revenue adjustment

           3,100       3,100  
                      

Adjusted revenues

         $ 89,973     $ 89,973  
                      

Operating income – GAAP

         $ 14,487     $ 14,487  

Merger costs and other adjustments

           3,800       3,800  

Amortization of acquisition-related intangible assets

           8,743       8,743  
                      

Adjusted operating income

         $ 27,030     $ 27,030  
                      

Operating margin – GAAP

           17 %     17 %

Adjusted operating margin

           30 %     30 %

 

(1)

Includes $14.4 million of expenses incurred in the fourth quarter not allocated to the segments, comprised of $6.9 million of Fiserv merger costs and $7.5 million related to the amendment of an employment agreement discussed on page 9.

See page 4 for disclosures related to the use of non-GAAP performance measures and footnotes on pages 9 and 12 for explanations of adjustments to revenues and operating income.

 

14 of 16


FISERV, INC. AND SUBSIDIARIES

SUPPLEMENTAL 2006 HISTORICAL FINANCIAL INFORMATION BY QUARTER

(In thousands, except per share amounts, unaudited)

 

     First
Quarter
2006
    Second
Quarter
2006
    Third
Quarter
2006
    Fourth
Quarter
2006
     Full Year
2006
 

Revenues

           

Processing and services

   $ 622,109     $ 602,970     $ 630,657     $ 632,464      $ 2,488,200  

Product

     250,229       263,440       266,518       297,587        1,077,774  
                                         

Total revenues

     872,338       866,410       897,175       930,051        3,565,974  
                                         

Expenses

           

Cost of processing and services

     386,617       391,005       393,182       407,291        1,578,095  

Cost of product

     195,227       194,864       216,076       233,342        839,509  

Selling, general and administrative

     118,407       116,641       119,610       128,994        483,652  
                                         

Total expenses

     700,251       702,510       728,868       769,627        2,901,256  
                                         

Operating income

     172,087       163,900       168,307       160,424        664,718  

Interest expense – net

     (8,143 )     (10,351 )     (11,582 )     (10,596 )      (40,672 )
                                         

Income from continuing operations before income taxes

     163,944       153,549       156,725       149,828        624,046  

Income tax provision

     62,150       56,670       58,907       58,061        235,788  
                                         

Income from continuing operations

     101,794       96,879       97,818       91,767        388,258  

Income from discontinued operations – net of tax

     14,417       20,790       12,270       14,179        61,656  
                                         

Net income

   $ 116,211     $ 117,669     $ 110,088     $ 105,946      $ 449,914  
                                         

GAAP earnings per share

           

Continuing operations

   $ 0.56     $ 0.55     $ 0.56     $ 0.52      $ 2.19  

Discontinued operations

     0.08       0.12       0.07       0.08        0.35  
                                         

Total

   $ 0.64     $ 0.66     $ 0.63     $ 0.61      $ 2.53  
                                         

Adjusted earnings per share – continuing operations

           

Earnings per share – continuing operations

   $ 0.56     $ 0.55     $ 0.56     $ 0.52      $ 2.19  

Employee severance, facility shutdown and other

     —         —         —         0.03        0.03  

Amortization of acquisition-related intangible assets

     0.02       0.02       0.02       0.03        0.09  
                                         

Adjusted earnings per share – continuing operations

   $ 0.58     $ 0.57     $ 0.58     $ 0.58      $ 2.31  
                                         

Diluted shares used in computing earnings per share

     181,783       177,551       175,875       174,906        177,529  

See page 4 for disclosures related to the use of non-GAAP performance measures and footnotes on page 9 for explanations of adjustments to revenues and operating income.

 

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FISERV, INC. AND SUBSIDIARIES

FISERV 2.0 KEY METRICS, SALES QUOTA ATTAINMENT AND ELECTRONIC PAYMENT TRANSACTIONS

(In millions, unaudited)

 

Key Metrics

   2007     2007 Attainment  
   Objective     In Dollars    Percentage  

Integrated Sales (1)

   $ 26     $ 30    115 %

Operational Effectiveness (2)

   $ 15     $ 20    133 %

Overall Sales Quota Attainment (3)

     100 %     —      97 %

 

(1)

Integrated Sales targets are exclusive of amounts within normal sales quota and only include sales from a designated list of additional products. Dollar value is the amount of recurring annual revenue which excludes any one-time revenue.

(2)

Operational Effectiveness targets represent cost savings associated with Fiserv 2.0 initiatives. The “2007 Objective” is the total amount of savings targeted to be attained in the measurement period.

(3)

Overall Sales Quota is the traditional companywide sales quota system, and excludes incremental sales included in the Integrated Sales metric

 

Electronic Payment Metrics

   Q1     Q2     Q3     Q4     2007  

Bill Payment Transactions (4)

   269.6     275.3     282.4     300.9     1,128.2  

Bill Payment Year-over-year Transaction Growth

   24 %   21 %   20 %   20 %   21 %

Ebills Delivered

   58.6     60.5     63.5     68.0     250.6  

Ebill Growth Year-over-Year

   26 %   21 %   23 %   24 %   23 %

 

(4)

Bill Payment Transactions represent on-line bill payment transactions occurring through financial institutions, brokerage firms or portals. The presentation includes CheckFree historical data for each full quarter of 2007.

FISV-E

 

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Exhibit 99.2

 

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TD AMERITRADE:  
For Media:   For Investors:
Jim Frawley   Tim Nowell
Communications and Public Affairs   Investor Relations
(402) 827-8928   (402) 597-8440
james.frawley@tdameritrade.com   timothy.nowell@tdameritrade.com

TD AMERITRADE CLOSES FISERV ISS DEAL

Institutional Assets Now Exceed $100 Billion

Omaha, Neb. and Brookfield, Wis., February 4, 2008 – TD AMERITRADE Holding Corporation (Nasdaq: AMTD) and Fiserv, Inc. (Nasdaq: FISV) announced today that TD AMERITRADE has completed its purchase of Fiserv’s Investment Support Services (ISS) business for approximately $225 million in cash plus the amount of acquired regulatory capital. Additionally, based upon achievement of certain revenue targets over the next 12 months, there is an earn-out of up to $100 million payable to Fiserv.

The acquisition adds approximately $25 billion in client assets to TD AMERITRADE, including $15 billion held in more than 75,000 accounts managed by approximately 500 independent Registered Investment Advisors (RIAs) and $10 billion held in more than 2,000 plans administered by 80 independent third party administrators (TPAs).

“This deal reinforces our client segmentation strategy and signifies our commitment to grow and invest in the RIA community,” said Tom Bradley, president, TD AMERITRADE Institutional.

The purchased business adds scale to TD AMERITRADE Institutional, the third largest provider of comprehensive brokerage and custody services in one of the fastest growing segments of financial services. The institutional business now holds over $100 billion in assets under management with over 4,500 RIAs and their clients.

With the inclusion of Fiserv Trust Company, TD AMERITRADE Institutional also adds significant growth to its 401(k) custody business. Skip Schweiss, executive vice president of Fiserv ISS, will direct TD AMERITRADE Institutional’s efforts at the newly acquired Fiserv Trust Company, reporting to Tom Bradley.

Fiserv, Inc.

“We believe this deal will enhance services for clients,” said Jeffery Yabuki, president and chief executive officer of Fiserv. “At the same time, we will continue to expand our technology leadership position across the financial services industry.”

Fiserv, Inc. also expects to close the previously announced transaction with Robert Beriault Holdings, Inc. by the end of the second quarter of 2008.


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AMTD-G

About TD AMERITRADE Institutional

TD AMERITRADE Institutional is a leading provider of comprehensive brokerage and custody services to more than 4,500 fee-based, independent Registered Investment Advisors (RIAs) and their clients. 1 Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients.

About TD AMERITRADE Holding Corporation

TD AMERITRADE Holding Corporation, through its brokerage subsidiaries, 2 provides a dynamic balance of investment products and services that make it the investment firm of choice for millions of retail investor and independent registered investment advisor (RIA) clients. Listed by Barron’s as the #1 Web browser-based online broker and Forbes as one of America’s best big companies, the Company offers a full spectrum of investment services, including a leading active trader program, intuitive long-term investment solutions and a national branch system, as well as relationships with one of the largest independent RIA networks. 3 The Company’s common stock trades under the ticker symbol AMTD. For more information, please visit www.amtd.com .

About Fiserv, Inc.

Fiserv, Inc. (NASDAQ: FISV), a Fortune 500 company, provides information management and electronic commerce systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, electronic bill payment and presentment, investment management solutions, business process outsourcing (BPO), software and systems solutions. Headquartered in Brookfield, Wis., the company serves more than 21,000 clients worldwide and is the leading provider of core processing solutions for U.S. banks, credit unions and thrifts. Fiserv was ranked the largest provider of information technology services to the financial services industry worldwide in the 2004, 2005 and 2006 FinTech 100 surveys. In 2007, the company completed the acquisition of CheckFree, a leading provider of electronic commerce services. Fiserv and CheckFree had more than $4.5 billion in combined pro forma total revenue for 2006. For more information, please visit www.fiserv.com.

FISV-G

###

 

Additional Fiserv Contacts:  
For Media:   For Investors:
Lori Stafford   David Banks
lori.stafford@fiserv.com   david.banks@fiserv.com
262-879-5130   262-879-5055


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1

TD AMERITRADE Institutional, Division of TD AMERITRADE, Inc., member FINRA ( www.finra.org ) / SIPC ( www.SIPC.org ).

2

TD AMERITRADE, Inc., member FINRA/SIPC, receives clearing and custodial services from TD AMERITRADE Clearing, Inc., member FINRA/SIPC. TD AMERITRADE and TD AMERITRADE Clearing, Inc. are subsidiaries of TD AMERITRADE Holding Corporation.

3

“The Best Web Browser-Based Online Broker” by Barron’s, 3/5/2007 based on Trade Experience, Trading Technology, Usability, Range of Offerings, Research Amenities, Portfolio Analysis & Reports, Customer Service & Access, and Costs. Barron’s is a registered trademark of Dow Jones, L.P. More info on the Forbes award is available at www.forbes.com/platinum .