Exhibit 99.1

 

 

Total System Services, Inc. One TSYS Way Post Office Box 2567 Columbus GA 31902-2567		+1.706.649.2307 +1.706.649.5740 www.tsys.com

For immediate release:

Contacts:

Shawn Roberts

TSYS Investor Relations

+1.706.644.6081

shawnroberts@tsys.com

TSYS Reports 2012 Earnings Per Share Up 13.1%

Provides 2013 EPS Guidance of 10%-12% Growth

COLUMBUS, Ga., Jan. 22, 2013 — TSYS (NYSE: TSS) today reported results for the fourth quarter and full year with basic earnings per share (EPS) at $0.33 for the quarter, an increase of 3.7%, and $1.30 for the full year, an increase of 13.1% over 2011. Revenues before reimbursable items for the quarter were $418.6 million, an increase of 2.7%, and $1,618.5 million for the year, an increase of 5.0% over 2011. Total revenues were $479.1 million for the quarter and $1,871.0 million for the full year, increases of 1.5% and 3.4%, respectively, as compared to 2011. Total revenues were impacted by decreases of $4.0 million for the quarter and $15.8 million for the year in reimbursable items.

Operating margin excluding reimbursable items for the year was 22.1%, an increase of 117 basis points over last year. The increase is attributable to a 5.0% increase in revenues before reimbursable items, while expenses before reimbursable items were up only 3.5%.

“We are pleased to report that we exceeded the high end of our net income and EPS guidance for 2012. These results reflect continued strong same client transaction growth of 12.0% in our card issuer processing business. Point-Of-Sale transactions, excluding deconverted clients in the indirect merchant business, were up 9.9% and sales volume in the direct merchant business was up 12.9%. Excluding the impact of acquisitions, sales volume was up 3.2%. Also contributing to our strong results was our consolidated internal revenue growth of 5.1% for the year, combined with acquisitions in the acquiring space, which added 1.8% to our growth in revenues before reimbursable items,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

“Our guidance for 2013 is included in the table below and we expect 6% to 8 % growth in revenues before reimbursable items and 10% to 12% EPS growth. This is the second year in a row that we have projected double digit EPS growth. We remain focused on executing our strategy of growing our existing businesses, adding strategic acquisitions and deploying capital to enhance shareholder return. In support of this strategy during 2012, we purchased 3.2 million shares of our stock for $75 million, used $190 million to invest in acquisitions, and returned $94 million in dividends to our shareholders, for a total spend of $359 million,” said Tomlinson.

 

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		2013 Guidance
		Range (in millions, except per share amounts)												Percent Change
Total revenues		$	1,955				to			$	1,995				5	%			to				7	%
Revenues before reimbursable items		$	1,711				to			$	1,746				6	%			to				8	%
Net Income attributable to TSYS common shareholders		$	266				to			$	272				9	%			to				11	%
EPS attributable to TSYS common shareholders		$	1.43				to			$	1.45				10	%			to				12	%

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, January 22. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage of tsys.com.

Non-GAAP Measures

The financial highlights section of this release and this release contain the non-GAAP financial measures of revenues and operating results on a constant currency basis, and revenues and operating margin excluding reimbursable items, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 11 and 12 of this release.

About TSYS

At TSYS, (NYSE: TSS), we believe payments should revolve around people — not the other way around. We call this belief “People-Centered Payments^SM.” By putting people at the center of every decision we make, with unmatched customer service and industry insight, TSYS is able to support financial institutions, businesses and governments in more than 80 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare and more, we make it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks, is a Fortune 1000 company and was named one of the 2012 World’s Most Ethical Companies by Ethisphere magazine. For more information, please visit us at www.tsys.com.

 

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Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2013 total revenues, revenues before reimbursable items, net income attributable to TSYS common shareholders and EPS attributable to TSYS common shareholders, and the assumptions underlying such statements. These statements are based on the current beliefs and expectations of TSYS’ management, are based on management’s assumptions and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to, the effect of current domestic and worldwide economic conditions; the material breach of security of any of TSYS’ systems; the impact of potential and completed acquisitions, including the costs associated therewith and their being more difficult to integrate than anticipated; adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; the deconversion of a significant client; changes occur in laws, rules, regulations, credit card association rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and growth rates of TSYS’ existing clients are lower than anticipated or attrition rates of existing clients are higher than anticipated. Additional risks and other factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS’ filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

 

 

		Three Months Ended												Twelve Months Ended
		December 31,												December 31,
										Percent												Percent
		2012				2011				Change				2012				2011				Change
Total revenues		$	479,100				472,234				1.5	%		$	1,870,972				1,808,966				3.4	%
Cost of services			315,698				322,946				(2.2	)			1,262,310				1,257,970				0.3
Selling, general and administrative expenses			73,571				59,570				23.5				251,010				228,540				9.8
Operating income			89,831				89,718				0.1				357,652				322,456				10.9
Nonoperating income (expenses)			5				(541	)			nm				(2,798	)			(5,905	)			52.6
Income before income taxes, noncontrolling interests and equity in income of equity investments			89,836				89,177				0.7				354,854				316,551				12.1
Income taxes			30,767				29,497				4.3				115,102				102,597				12.2
Income before noncontrolling interests and equity in income of equity investments			59,069				59,680				(1.0	)			239,752				213,954				12.1
Equity in income of equity investments			3,188				1,234				nm				10,171				8,708				16.8
Net income			62,257				60,914				2.2				249,923				222,662				12.2
Net income attributable to noncontrolling interests			(1,395	)			(1,040	)			(34.1	)			(5,643	)			(2,103	)			nm
Net income attributable to TSYS common shareholders		$	60,862				59,874				1.7	%		$	244,280				220,559				10.8	%
Basic earnings per share		$	0.33				0.31				3.7	%		$	1.30				1.15				13.1	%
Diluted earnings per share		$	0.32				0.31				3.4	%		$	1.29				1.15				12.5	%
Dividends declared per share		$	0.10				0.10							$	0.40				0.31

nm = not meaningful

 

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Consolidated Statements of Comprehensive Income

(unaudited)

(in thousands)

 

 

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2012				2011				2012				2011
Net income		$	62,257				60,914				249,923				222,662
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			(2,257	)			(2,944	)			678				1,133
Postretirement healthcare plan adjustments			(415	)			263				(1,665	)			1,056
Other comprehensive income (loss)			(2,672	)			(2,681	)			(987	)			2,189
Comprehensive income			59,585				58,233				248,936				224,851
Comprehensive income attributable to noncontrolling interests			(1,041	)			(1,146	)			2,803				2,152
Comprehensive income attributable to TSYS common shareholders		$	60,626				59,379				246,133				222,699

 

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Earnings Per Share

(unaudited)

(in thousands, except per share data)

 

 

		Three Months Ended								Three Months Ended								Twelve Months Ended								Twelve Months Ended
		December 31, 2012								December 31, 2011								December 31, 2012								December 31, 2011
		Common				Participating				Common				Participating				Common				Participating				Common				Participating
		Stock				Securities				Stock				Securities				Stock				Securities				Stock				Securities
Basic Earnings per share:
Net income		$	60,862								59,874							$	244,280								220,559
Less income allocated to nonvested awards			(186	)			186				(213	)			213				(800	)			800				(805	)			805
Net income allocated to common stock for EPS calculation ( a )		$	60,676				186				59,661				213			$	243,480				800				219,754				805
Average common shares outstanding ( b )			185,888				583				189,506				684				187,403				627				191,239				707
Average common shares and participating securities			186,471								190,190								188,030								191,946
Basic Earnings per share ( a )/( b )		$	0.33				0.32				0.31				0.31			$	1.30				1.29				1.15				1.14
Diluted Earnings per share:
Net income		$	60,862								59,874							$	244,280								220,559
Less income allocated to nonvested awards			(186	)			186				(212	)			212				(796	)			796				(804	)			804
Net income allocated to common stock for EPS calculation ( c )		$	60,676				186				59,662				212			$	243,484				796				219,755				804
Average common shares outstanding			185,888				583				189,506				684				187,403				627				191,239				707
Increase due to assumed issuance of shares related to common equivalent shares outstanding			983								517								1,262								345
Average common and common equivalent shares outstanding ( d )			186,871				583				190,023				684				188,665				627				191,584				707
Average common and common equivalent shares and participating securities			187,454								190,707								189,292								192,291
Diluted Earnings per share ( c )/( d )		$	0.32				0.32				0.31				0.31			$	1.29				1.27				1.15				1.14

 

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Segment Breakdown

(unaudited)

(in thousands)

 

 

		Three Months Ended December 31,																Twelve Months Ended December 31,
										Change																Change
		2012				2011				$				%				2012				2011				$				%
Revenues before reimbursable items
North America Services		$	213,639				209,618				4,021				1.9	%		$	826,750				809,069				17,681				2.2	%
International Services			102,427				102,792				(365	)			(0.4	)%			396,149				380,129				16,020				4.2	%
Merchant Services			105,855				100,379				5,476				5.5	%			409,698				373,159				36,539				9.8	%
Intersegment revenues			(3,352	)			(5,106	)			1,754				34.4	%			(14,106	)			(21,659	)			7,553				34.9	%
Revenues before reimbursable items from external customers		$	418,569				407,683				10,886				2.7	%		$	1,618,491				1,540,698				77,793				5.0	%
Total revenues
North America Services		$	247,612				246,190				1,422				0.60	%		$	965,393				954,550				10,843				1.1	%
International Services			107,000				106,560				440				0.4	%			413,467				394,831				18,636				4.7	%
Merchant Services			129,413				126,224				3,189				2.5	%			512,580				487,997				24,583				5.0	%
Intersegment revenues			(4,925	)			(6,740	)			1,815				26.9	%			(20,468	)			(28,412	)			7,944				28.0	%
Revenues from external customers		$	479,100				472,234				6,866				1.5	%		$	1,870,972				1,808,966				62,006				3.4	%
Depreciation and amortization
North America Services		$	18,817				18,767				50				0.3	%		$	74,674				78,155				(3,481	)			(4.5	)%
International Services			14,510				15,373				(863	)			(5.6	)%			57,127				51,888				5,239				10.1	%
Merchant Services			9,509				8,893				616				6.9	%			36,252				36,124				128				0.4	%
Corporate Admin			446				729				(283	)			(38.8	)%			2,557				2,998				(441	)			(14.7	)%
Total depreciation and amortization		$	43,282				43,762				(480	)			(1.1	)%		$	170,610				169,165				1,445				0.9	%
Segment operating income
North America Services		$	77,801				66,560				11,241				16.9	%		$	287,595				253,844				33,751				13.3	%
International Services			6,058				11,983				(5,925	)			(49.4	)%			27,335				41,408				(14,073	)			(34.0	)%
Merchant Services			30,438				32,958				(2,520	)			(7.6	)%			132,115				112,986				19,129				16.9	%
Corporate Admin			(24,466	)			(21,783	)			(2,683	)			(12.3	)%			(89,393	)			(85,782	)			(3,611	)			(4.2	)%
Operating income		$	89,831				89,718				113				0.1	%		$	357,652				322,456				35,196				10.9	%
Other:
Reimbursable items:
North America Services		$	33,973				36,572				(2,599	)			(7.1	)%		$	138,643				145,481				(6,838	)			(4.7	)%
International Services			4,573				3,768				805				21.4	%			17,318				14,702				2,616				17.8	%
Merchant Services			23,558				25,845				(2,287	)			(8.8	)%			102,882				114,838				(11,956	)			(10.4	)%
Intersegment revenues			(1,573	)			(1,634	)			61				3.7	%			(6,362	)			(6,753	)			391				5.8	%
Reimbursable items		$	60,531				64,551				(4,020	)			(6.2	)%		$	252,481				268,268				(15,787	)			(5.9	)%
Volumes:
FTEs (full-time equivalents)
North America Services																			4,096				4,318				(222	)			(5.1	)%
International Services																			2,404				2,376				28				1.2	%
Merchant Services																			1,481				1,158				323				27.9	%
Corporate Admin																			425				397				28				7.1	%
FTEs																			8,406				8,249				157				1.9	%
																		At								Change
																		12/31/2012				12/31/2011				$				%
Total assets (in thousands)
North America Services																		$	1,747,096				1,621,664				125,432				7.7	%
International Services																			445,642				433,203				12,439				2.9	%
Merchant Services																			696,426				487,858				208,568				42.8	%
Intersegment assets																			(870,406	)			(684,333	)			(186,073	)			(27.2	)%
Total assets																		$	2,018,758				1,858,392				160,366				8.6	%
		Three Months Ended December 31,																Twelve Months Ended December 31,
										Change																Change
		2012				2011				Inc(Dec)				%				2012				2011				Inc(Dec)				%
North America Segment:
Accounts on File (AOF) (in millions)																			424.8				351.4				73.4				20.9	%
Transactions (in millions)			2,194.7				1,947.8				246.9				12.7	%			8,102.3				7,218.4				884.0				12.2	%
International Segment:
AOF (in millions)																			54.6				52.8				1.8				3.5	%
Transactions (in millions)			474.0				399.5				74.5				18.6	%			1,674.5				1,426.7				247.8				17.4	%
Merchant Segment:
Point-of-sale Transactions (in millions)			1,153.2				1,216.4				(63.2	)			(5.2	)%			4,877.6				4,955.5				(77.9	)			(1.6	)%

 

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Balance Sheet

(unaudited)

(in thousands)

 

 

		Dec 31, 2012				Dec 31, 2011
Assets
Current assets:
Cash and cash equivalents		$	247,612				316,337
Accounts receivable, net			247,075				248,541
Deferred income tax assets			9,825				12,872
Prepaid expenses and other current assets			70,206				72,431
Total current assets			574,718				650,181
Goodwill			513,273				355,498
Property and equipment, net			260,389				266,608
Computer software, net			226,017				215,244
Contract acquisition costs, net			161,267				162,987
Equity investments, net			87,764				82,924
Other intangible assets, net			130,054				81,250
Deferred income tax assets, net			5,334				4,069
Other assets			59,942				39,631
Total assets		$	2,018,758				1,858,392
Liabilities
Current liabilities:
Accounts payable		$	63,370				26,095
Current portion of notes payable			27,687				181,251
Accrued salaries and employee benefits			26,243				33,004
Current portion of obligations under capital leases			13,263				14,363
Other current liabilities			94,505				125,863
Total current liabilities			225,068				380,576
Long-term debt, excluding current portion			174,533				39,104
Deferred income tax liabilities			48,771				32,889
Obligations under capital leases, excluding current portion			17,155				24,489
Other long-term liabilities			68,791				60,325
Total liabilities			534,318				537,383
Redeemable noncontrolling interest			39,505				—
Equity
Shareholders’ equity:
Common stock			20,247				20,186
Additional paid-in capital			141,793				125,948
Accumulated other comprehensive income (loss), net			1,408				(445	)
Treasury stock			(287,301	)			(225,034	)
Retained earnings			1,549,063				1,380,634
Total shareholders’ equity			1,425,210				1,301,289
Noncontrolling interests in consolidated subsidiaries			19,725				19,720
Total equity			1,444,935				1,321,009
Total liabilities and equity		$	2,018,758				1,858,392

 

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TSYS Announces Fourth Quarter 2012 Earnings

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TSYS

Cash Flow

(unaudited)

(in thousands)

 

 

		Twelve Months Ended December 31,
		2012				2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	249,923				222,662
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments			(10,171	)			(8,708	)
Dividends received from equity investments			7,524				6,835
Net loss on foreign currency translation			2,012				3,091
Depreciation and amortization			170,610				169,165
Amortization of debt issuance costs			298				160
Changes in fair value of private equity investments			(898	)			—
Share-based compensation			18,621				16,477
Excess tax benefit from share-based payment arrangements			(1,259	)			523
Asset impairments			—				799
Provisions for bad debt expense and billing adjustments			1,054				1,552
Charges for transaction processing provisions			2,803				4,750
Deferred income tax expense (benefit)			285				1,491
(Gain) loss on disposal of equipment, net			324				(1,159	)
Changes in operating assets and liabilities:
Accounts receivable			2,855				(7,044	)
Prepaid expenses, other current assets and other long-term assets			(2,945	)			23,099
Accounts payable			37,206				(15,512	)
Accrued salaries and employee benefits			(7,083	)			4,492
Other current liabilities and other long-term liabilities			(15,406	)			13,646
Net cash provided by operating activities			455,753				436,319
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net			(31,434	)			(26,938	)
Additions to licensed computer software from vendors			(33,001	)			(19,502	)
Additions to internally developed computer software			(19,285	)			(17,882	)
Proceeds from sale of trade name			—				4,500
Proceeds from disposition, net of expenses paid and cash disposed			39				—
Cash used in acquisitions, net of cash acquired			(188,698	)			(47,909	)
Purchase of private equity investments			(3,031	)			(1,573	)
Subsidiary repurchase of noncontrolling interest			—				(493	)
Additions to contract acquisition costs			(34,384	)			(31,623	)
Net cash used in investing activities			(309,794	)			(141,420	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt borrowings and capital lease obligations			(200,052	)			(28,892	)
Proceeds from borrowings of long-term debt			150,000				—
Proceeds from exercise of stock options			9,672				8,065
Excess tax benefit from share-based payment arrangements			1,259				(523	)
Repurchase of common stock			(74,939	)			(121,271	)
Debt issuance costs			(2,073	)			—
Purchase of noncontrolling interests			—				(174,050	)
Subsidiary dividends paid to noncontrolling shareholders			(2,797	)			(433	)
Dividends paid on common stock			(94,035	)			(53,949	)
Net cash used in financing activities			(212,965	)			(371,053	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents			(1,719	)			(2,304	)
Net increase (decrease) in cash and cash equivalents			(68,725	)			(78,458	)
Cash and cash equivalents at beginning of period			316,337				394,795
Cash and cash equivalents at end of period		$	247,612				316,337

 

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TSYS Announces Fourth Quarter 2012 Earnings

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Supplemental Information:

 

		Accounts on File
		Total
(in millions)		December 2012				December 2011				% Change
Consumer Credit			200.5				195.0				2.8
Retail			25.0				24.6				2.0
Total Consumer			225.5				219.6				2.7
Commercial			37.1				35.2				5.3
Other			12.8				7.9				61.4
Subtotal			275.4				262.7				4.8
Prepaid/Stored Value			115.9				85.2				36.1
Government Services			57.0				29.7				92.0
Commercial Card Single Use			31.1				26.6				17.1
Total AOF			479.4				404.2				18.6

Growth in Accounts on File (in millions):

 

		December 2011 to December 2012				December 2010 to December 2011
Beginning balance			404.2				342.9
Change in accounts on file due to:
Internal growth of existing clients			31.5				33.9
New clients			80.1				43.4
Purges/Sales			(33.6	)			(15.3	)
Deconversions			(2.8	)			(0.7	)
Ending balance			479.4				404.2

 

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TSYS Announces Fourth Quarter 2012 Earnings

Page 11 of 12

 

Reconciliation of GAAP to Non-GAAP

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents year-to-date 2012 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 3.8% as compared to a reported GAAP increase of 3.4%.

The schedule below also provides a reconciliation of revenues and operating margin excluding reimbursable items to reported revenues and operating margin. On a year-to-date basis, TSYS’ total revenues excluding reimbursable items grew 5.0% as compared to a reported GAAP increase of 3.4%. On a year-to-date basis, TSYS’ operating margin excluding reimbursable items was 22.1% as compared to a reported GAAP margin of 19.1%.

TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.

Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.

TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.

 

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TSYS Announces Fourth Quarter 2012 Earnings

Page 12 of 12

 

Reconciliation of GAAP to Non-GAAP

 

 

Constant Currency Comparison

(unaudited)

(in thousands)

 

 

		Three Months Ended December 31,												Twelve Months Ended December 31,
										Percent												Percent
		2012				2011				Change				2012				2011				Change
Consolidated
Constant currency (1)		$	479,027				472,234				1.4	%		$	1,876,979				1,808,966				3.8	%
Foreign currency (2)			73				—								(6,007	)			—
Total revenues		$	479,100				472,234				1.5	%		$	1,870,972				1,808,966				3.4	%
Constant currency (1)		$	88,830				89,718				(1.0	)%		$	352,955				322,456				9.5	%
Foreign currency (2)			1,001				—								4,697				—
Operating income		$	89,831				89,718				0.1	%		$	357,652				322,456				10.9	%
International Services
Constant currency (1)		$	106,985				106,560				0.4	%		$	419,993				394,831				6.4	%
Foreign currency (2)			15				—								(6,526	)			—
Total revenues		$	107,000				106,560				0.4	%		$	413,467				394,831				4.7	%

 

(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.

 

 

Operating Margin Excluding Reimbursable Items

(unaudited)

(in thousands)

 

 

		Three Months Ended December 31,												Twelve Months Ended December 31,
										Percent												Percent
		2012				2011				Change				2012				2011				Change
Operating income (a)		$	89,831				89,718				0.1			$	357,652				322,456				10.9
Total Revenues (b)		$	479,100				472,234				1.5			$	1,870,972				1,808,966				3.4
Less reimbursable items			60,531				64,551				(6.2	)			252,481				268,268				(5.9	)
Revenues before reimbursable items ( c )		$	418,569				407,683				2.7			$	1,618,491				1,540,698				5.0
Operating margin (GAAP) (a) / (b)			18.75	%			19.00	%			-25 bps				19.12	%			17.83	%			129 bps
Operating margin excluding reimbursable items (a) / (c)			21.46	%			22.01	%			-55 bps				22.10	%			20.93	%			117 bps

 

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