Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TOTAL SYSTEM SERVICES INC | d338697d8k.htm |
| EX-99.1 - EX-99.1 - TOTAL SYSTEM SERVICES INC | d338697dex991.htm |
 2012
First Quarter Results April 24, 2012
©
2012
Total
System
Services,
Inc.
®
All
rights
reserved
worldwide.
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’
2011
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. |
 Phil
Tomlinson Chairman and Chief Executive Officer
|
 Jim
Lipham Chief Financial Officer |
 Consolidated Selected Financial Highlights
6
(in thousands, except per share data)
Total Revenues
$461,162
$ 429,430
7.4%
Revenues Before Reimbursable Items
395,179
362,643
9.0
Operating Income
84,831
73,028
16.2
Net Income Attributable to TSYS
Common Shareholders
$56,395
$48,790
15.6
Total Cardholder Transactions (in millions)
2,276.1
1,952.8
16.6
Earnings Per Share Attributable to TSYS
Common Shareholders
$0.30
$0.25
18.6
1 Qtr
2012
1 Qtr
2011
Percent
Change
st
st
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 2012
YTD Revenue Change Revenues Before Reimbursable Items
7
Internal
Growth
New
Clients
Acquisitions
Lost
Business,
Non-recurring
Items and
Price
Compression
(3.4%)
Reported
Currency
(0.3%)
9.0%
7.0%
10%
15%
5%
0%
4.2%
1.5%
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Consolidated Accounts on
File Portfolio Summary
(in millions)
8
Mar
2012
Mar
2011
%
Change
Mar
2012
Dec
2011
%
Change
Consumer Credit
197.2
183.4
7.5
197.2
195.0
1.1
Government
Services
30.5
29.0
5.4
30.5
29.7
2.8
Retail
25.3
24.6
2.7
25.3
24.6
3.0
Total Consumer
253.0
237.0
6.8
253.0
249.3
1.5
Commercial
65.0
51.1
27.2
65.0
61.9
5.1
Other
9.4
6.3
48.4
9.4
7.9
18.7
Subtotal
327.4
294.4
11.2
327.4
319.1
2.6
Prepaid /
Stored Value
88.5
62.3
42.0
88.5
85.1
3.9
Total AOF
415.9
356.7
16.6
415.9
404.2
2.9
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Key
Drivers 1Q 2012 Year Over Year
Segment Financial Highlights
•
Strong organic growth
•
Increased volumes
•
Volumes
–
Accounts on file were 361.8 million
–
Total cardholder transactions were 1,893.0 million,
an increase of 16.4%
9
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Revenues
$240.6 million
Excluding Reimbursables
$204.0 million
Operating Income
$68.2 million
Operating Margin
28.3%
Excluding Reimbursables
33.4%
Same Client Transactions
1,879.5 million
Increase of 15.6%
North America
Services |
 Key
Drivers 1Q 2012 Year Over Year
Segment Financial Highlights
•
Strong organic growth
•
Conversion of new clients
•
Dedication of more internal resources,
previously shared between our North America
and International segments
•
Volumes
–
Accounts on file were 54.1 million
–
Total cardholder transactions were 383.0 million, an
increase of 17.5%
10
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Revenues
$100.4 million
Excluding Reimbursables
$96.5 million
Constant currency basis
$101.5 million
Operating Income
$4.1 million
Operating Margin
4.1%
Excluding Reimbursables
4.3%
Same Client Transactions
352.7
million
Increase of 8.4%
International
Services |
 Key
Drivers 1Q 2012 Year Over Year
Segment Financial Highlights
•
Acquisition of TermNet
•
Upward trends in transaction volumes
•
Strong dollar volume growth in direct acquiring
•
Volumes
–
Point-of-Sale Transactions were 1,219.7 million, an
increase of 1.1%
–
Excluding deconverted clients, Point-of-Sale
Transactions increased 11.0%
11
Revenues
$125.5 million
Excluding Reimbursables
$98.4 million
Operating Income
$34.2 million
Operating Margin
27.3%
Excluding Reimbursables
34.8%
Merchant
Services
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Cash
Flow Strength: 2012 TTM Consolidated Financial Highlights
(in millions)
12
TTM = Trailing Twelve Months
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Appendix |
 Appendix Non-GAAP Reconciliation –
Revenues Before Reimbursable Items
Total Revenues
$ 461,162 $
429,430 Reimbursable Items
65,983
66,787
Revenues Before Reimbursable Items
$ 395,179
$ 362,643
(in thousands)
14
Three Months Ended
3/31/12 3/31/11
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Appendix
Non-GAAP
Reconciliation
–
Segment
Operating Margin Excluding Reimbursable Items
North America
International
Merchant
(in thousands)
15
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Three Months Ended
3/31/12 3/31/11
Three Months Ended
3/31/12 3/31/11
Three Months Ended
3/31/12 3/31/11
Operating Income (a)
$ 68,173 $
55,200 $
4,113 $ 11,025
$ 34,219 $
26,923 Total Revenues (b)
240,599
230,558
100,360
90,710
125,518
115,756
Reimbursable Items
36,549
35,968
3,869
3,291
27,162
29,237
Revenues Before
Reimbursable Items(c)
204,050
194,590
96,491
87,419
98,356
86,519
Operating Margin (a)/(b)
28.33%
23.94%
4.10%
12.15%
27.26%
23.26%
Operating Margin Excluding Reimbursables (a)/(c)
33.41%
28.37%
4.26%
12.61%
34.79%
31.12% |
 Three
Months Ended
3/31/12 3/31/11
Percentage
Change
Appendix Non-GAAP Reconciliation –
Constant Currency
(1) Reflects current period results on a non-GAAP basis as if foreign currency
rates did not change from the comparable prior year period. (2) Reflects the
impact of calculated changes in foreign currency rates from the comparable period.
(in thousands)
16
Consolidated:
Constant Currency (1)
$ 462,251
$ 429,430
7.6%
Foreign Currency (2)
(1,089)
---
Total Revenues
461,162
429,430
7.4%
International Services:
Constant Currency (1)
$ 101,531
$ 90,710
11.9%
Foreign Currency (2)
(1,171)
---
Total Revenues
$100,360
$90,710
10.6%
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Appendix Non-GAAP Reconciliation –
EBITDA
(in thousands)
17
Trailing Twelve
Months Ended
3/31/2012
Net Income
$ 230,894
Adjusted for:
Deduct: Equity in Income of Equity Investments
(9,212)
Add: Income Taxes
106,995
Add: Nonoperating expense
5,582
Add: Depreciation and Amortization
168,970
EBITDA
$ 503,229
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
 Appendix
Non-GAAP
Reconciliation
–
Free
Cash
Flow
Trailing Twelve
Months Ended
3/31/2012
Cash Flows from Operating Activities
$ 432,745
Less:
Purchase of Property and Equipment
(25,626)
Additions to Licensed Computer Software from Vendors
(20,815)
Additions to Internally Developed Computer Software
(17,839)
Additions to Contract Acquisition Costs
(29,520)
Free Cash Flow
$ 338,945
(in thousands)
18
©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |