Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TOTAL SYSTEM SERVICES INC | d286956d8k.htm |
| EX-99.1 - EX-99.1 - TOTAL SYSTEM SERVICES INC | d286956dex991.htm |
 ©
2012
Total
System
Services,
Inc.
.®
Proprietary.
All
rights
reserved
worldwide.
2011 Fourth Quarter and YTD Results
January 24, 2012
Exhibit 99.2 |
 Forward-Looking Statements
This presentation and comments made by management contain
forward-looking statements including, among others, statements
regarding the expected future operating results of TSYS. These
statements are based on management’s current expectations and
assumptions and are subject to risks, uncertainties and changes in
circumstances. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward- looking
terminology
such
as
the
words
“believe,”
“expect,”
“anticipate,”
“intend,”
“plan,”
“estimate”
or similar expressions. Actual results may
differ materially from those set forth in the forward-looking statements
due to a variety of factors. More information about these risks,
uncertainties
and
factors
may
be
found
in
TSYS’
2010
Annual
Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. TSYS does not assume any obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise.
2
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Use of
Non-GAAP Financial Measures This slide presentation contains certain
non-GAAP financial measures determined by methods other than in
accordance with generally accepted accounting principles. Such non-GAAP
financial measures include the following: revenues before reimbursable
items; operating margin excluding reimbursable items; revenues measured on a
constant currency basis; free cash flow; and EBITDA. The most comparable
GAAP measures to these measures are revenues; operating margin; revenues;
cash flows from operating activities; and net income, respectively.
Management uses these non-GAAP
financial
measures
to
assess
the
performance
of
TSYS’
core
business. TSYS believes that these non-GAAP financial measures provide
meaningful
additional
information
about
TSYS
to
assist
investors
in
evaluating TSYS’
operating results. These non-GAAP financial measures
should not be considered as a substitute for operating results determined
in accordance with GAAP and may not be comparable to other similarly
titled measures of other companies. The computations of the non-GAAP
financial
measures
used
in
this
slide
presentation
are
set
forth
in
the
Appendix to this slide presentation.
3
©
2012 Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 ©
2012
Total
System
Services,
Inc.
.®
Proprietary.
All
rights
reserved
worldwide.
Phil Tomlinson
Chairman and Chief Executive Officer |
 ©
2012 Total System Services, Inc.
.®
Proprietary. All rights reserved worldwide.
Jim Lipham
Chief Financial Officer |
 Consolidated Selected Financial Highlights
6
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.
$ 472,234
$ 439,991
7.3%
Total Revenues
$ 1,808,966
$ 1,717,577
5.3%
407,683
373,844
9.1
Revenues Before Reimbursable Items
1,540,698
1,442,436
6.8
89,718
70,974
26.4
Operating Income
322,456
309,429
4.2
59,874
47,255
26.7
Income from Continuing Operations to
TSYS Common Shareholders
220,559
197,192
11.8
59,874
47,173
26.9
Net Income Attributable to TSYS Common
Shareholders
220,559
193,947
13.7
2,366.0
2,088.2
13.3
Total Cardholder Transactions (in millions)
8,687.8
7,670.4
13.3
$0.31
$0.24
29.4
Earnings Per Share from Continuing
Operations Attributable to TSYS Common
Shareholders
$1.15
$1.00
14.4
YTD
2011
YTD
2010
Percent
Change
(in thousands, except per share data)
4th
Qtr
2011
4th
Qtr
2010
Percent
Change |
 2011
YTD Revenue Change Revenues Before Reimbursable Items
7
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Consolidated Accounts on
File Portfolio Summary
Consumer Credit
195.0
179.4
8.7
195.0
194.2
0.4
Government
Services
29.7
28.1
5.7
29.7
32.6
(8.9)
Retail
24.6
24.2
1.4
24.6
23.2
6.0
Total Consumer
249.3
231.7
7.6
249.3
250.0
(0.3)
Commercial
61.9
49.7
24.4
61.9
59.6
3.9
Other
7.9
6.2
28.3
7.9
7.0
12.9
Subtotal
319.1
287.6
10.9
319.1
316.6
0.8
Prepaid /
Stored Value
85.1
55.3
53.9
85.1
75.8
12.3
Total AOF
404.2
342.9
17.9
404.2
392.4
3.0
(in millions)
Dec
2011
Dec
2010
%
Change
Dec
2011
Sep
2011
%
Change
8
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Key
Drivers 4Q 2011 Year Over Year
Segment Financial Highlights
•
Strong organic growth
•
Increased volumes
•
Volumes
–
Accounts on file were 351.4 million
–
Total cardholder transactions were 1,966.5 million,
an increase of 13.6%
Revenues
$246.2 million
Excluding Reimbursables
$209.6 million
Operating Income
$66.6 million
Operating Margin
27.0%
Excluding Reimbursables
31.8%
Same Client Transactions
1,954.8 million
Increase of 13.0%
North America
Services
9
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Key
Drivers 4Q 2011 Year Over Year
Segment Financial Highlights
•
Strong organic growth
•
Conversion of new clients
•
Volumes
–
Accounts on file were 52.8 million
–
Total cardholder transactions were 399.5 million, an
increase of 11.7%
10
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
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worldwide.
Revenues
$106.6 million
Constant currency basis
$106.5 million
Operating Income
$12.0 million
Operating Margin
11.2%
Excluding Reimbursables
11.7%
Same Client Transactions
370.7 million
Increase of 3.9%
International
Services |
 Key
Drivers 4Q 2011 Year Over Year
Segment Financial Highlights
•
Acquisition of TermNet
•
Decline in revenues associated with
deconverted clients
•
Volumes
–
Point-of-Sale Transactions were 1,216.4 million, a
decrease of 1.6%
–
Excluding deconverted clients, Point-of-Sale
Transactions increased 6.6%
11
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.
Revenues
$126.2 million
Excluding Reimbursables
$100.4 million
Operating Income
$33.0 million
Operating Margin
26.1%
Excluding Reimbursables
32.8%
Merchant
Services |
 Cash
Flow Strength: 2011 Consolidated Financial Highlights
(in millions)
12
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 2012
Guidance ©2012 Total System Services, Inc.®
Proprietary. All rights reserved worldwide.
13
Total Revenues
$1,809
to
$1,845
0 %
to
2 %
Revenues Before Reimbursable Items
1,569
to
1,624
2
to
5
Income from Continuing Operations Available
to TSYS Common Shareholders
238
to
243
8
to
10
Earnings per Share from Continuing
Operations
$1.26
to
$1.28
10
to
12
(in millions, except per share data)
Range
Change
Range
Percent Change |
 2012
Guidance Revenue Change Revenues Before Reimbursable Items
14
©2012 Total System Services, Inc.®
Proprietary. All rights reserved worldwide.
10%
5%
0%
Internal
Growth
New
Clients
Acquisitions
Lost Business,
Non-recurring
Items and
Price
Compression
(5-6%)
Guidance
Currency
3-5%
1%
0%
2-5%
3-5% |
 ©
2012
Total
System
Services,
Inc.
.®
Proprietary.
All
rights
reserved
worldwide.
Appendix |
 Appendix Non-GAAP Reconciliation –
Revenues Before Reimbursable Items
(in thousands)
16
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2012
Total
System
Services,
Inc.®
Proprietary.
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rights
reserved
worldwide. |
 Appendix Non-GAAP Reconciliation –
Segment
Operating Margin Excluding Reimbursable Items
(in thousands)
17
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2012
Total
System
Services,
Inc.®
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rights
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 Appendix Non-GAAP Reconciliation –
Constant Currency
(in thousands)
18
©
2012
Total
System
Services,
Inc.®
Proprietary.
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rights
reserved
worldwide. |
 Appendix Non-GAAP Reconciliation –
EBITDA
Twelve Months
Ended
12/31/2011
Net Income
$ 222,662
Adjusted for:
Deduct: Equity in Income of Equity Investments
(8,708)
Add: Income Taxes
102,597
Add: Nonoperating expense
5,904
Add: Depreciation and Amortization
169,165
EBITDA
$ 491,620
(in thousands)
19
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Appendix Non-GAAP Reconciliation –
Free Cash Flow
Twelve Months
Ended
12/31/2011
Cash Flows from Operating Activities
$ 435,773
Less:
Purchase of Property and Equipment
(26,938)
Additions to Licensed Computer Software from Vendors
(19,502)
Additions to Internally Developed Computer Software
(17,882)
Additions to Contract Acquisition Costs
(31,622)
Free Cash Flow
$ 339,829
(in thousands)
20
©
2012
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |