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 TSYS Reports 2015 Adjusted EPS Grew 25.5%
   Tuesday, January 26, 2016 4:15:02 PM ET

TSYS (TSS ) today reported results for the 2015 fourth quarter and full year.

"We were especially pleased with our operational performance and 12.9% revenue growth in the fourth quarter. Our full year financial results for 2015 were outstanding and they marked the third year in a row of double digit growth in revenues, adjusted operating income and adjusted earnings per share," said M. Troy Woods, chairman, president and chief executive officer of TSYS.

"We repurchased 3.0 million shares of our stock in the fourth quarter for $158.6 million, bringing the total for the year to 5.2 million shares for $242.1 million. Including our dividends of $73.7 million, we returned $315.8 million to our shareholders, which was in excess of 92% of available free cash flow for the year and an increase of 31.5% over 2014," said Woods.



Highlights for the full year of 2015 include:

-- Adjusted EPS from continuing operations were $2.46, an increase of 25.5%. On a GAAP basis, basic EPS from continuing operations were $1.97, an increase of 33.3%.

-- Excluding the impact from discrete tax items of approximately $0.13 per share full year, adjusted EPS was $2.33, an increase of 19.0%.

-- Income from continuing operations attributable to TSYS’ shareholders was $362.6 million, an increase of 31.8%.

-- Adjusted EBITDA was $833.9 million, an increase of 17.1%.

-- Total revenues were $2.8 billion, an increase of 13.6%. Revenues before reimbursable items were $2.5 billion, an increase of 14.0%.

-- Adjusted operating margin was 26.7%. GAAP operating margin was 19.2%.

Highlights for the fourth quarter of 2015 include:

-- Adjusted EPS from continuing operations were $0.57, a decrease of 1.6%. On a GAAP basis, basic EPS from continuing operations were $0.44, a decrease of 1.2%.

-- Income from continuing operations attributable to TSYS’ shareholders was $81.4 million, a decrease of 2.1%.

-- Adjusted EBITDA was $195.0 million, an increase of 0.7%.

-- Total revenues for the quarter were $716.8 million, an increase of 12.9%. Revenues before reimbursable items were $645.1 million, an increase of 13.3%.

-- Adjusted operating margin was 23.4%. GAAP operating margin was 16.4%.

"Our guidance for 2016 includes revenue growth in all four of our segments as we continue to expect broad based performance gains in our business," said Woods.

                                                                                                                                                                                    2016 Financial Outlook
                                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                            Range                                                     
                                                                                                                                                                  (in millions, except per                                                                                                                                    Percent
                                                                                                                                                                       share amounts)                                                                                                                                         Change
                                                                                                                          ---------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------
Total revenues                                                                                                                   $2,900                   to                   $2,946                                                           4%                     to                     6%
Revenues before reimbursable items                                                                                               $2,624                                      to                                      $2,674                                                           5%                                        to                                        7%
Adjusted EPS attributable to TSYS common shareholders from                                                                                                                                                                                                         
continuing operations*                                                                                                            $2.56                                      to                                       $2.62                                                           4%                                        to                                        7%
* Average Basic Weighted Shares                                                                                                                                             184.5
                                                                                                                                                                                                                                                                                                                                                                  
 

*Note: The impact of any future share repurchases is not included.

TSYS to Acquire TransFirst

TSYS also announced today that it has entered into a definitive agreement with Vista Equity Partners to acquire TransFirst, a Vista portfolio company and a leading U.S. merchant solutions provider, in an all-cash transaction valued at approximately $2.35 billion. Please refer to the separate press release issued by TSYS today for additional details regarding the transaction.

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, January 26. 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

This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of its consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.

Additional information about non-GAAP financial measures, including, but not limited to, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 10 to 13 of this release.

About TSYS

At TSYS(R) (TSS ), we believe payments should revolve around people, not the other way around. We call this belief People-Centered Payments(R). By putting people at the center of every decision we make, TSYS supports financial institutions, businesses and governments in more than 80 countries. Through NetSpend(R), A TSYS Company, we empower consumers with the convenience, security, and freedom to be self-banked. TSYS offers issuer services and merchant payment acceptance for credit, debit, prepaid, healthcare and business solutions.

TSYS’ headquarters are located in Columbus, Ga., U.S.A., with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS is a member of The Civic 50 and has been named one of the 2015 World’s Most Ethical Companies by Ethisphere magazine. TSYS routinely posts all important information on its website. For more, please visit us at www.tsys.com.

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," "potential," "will," "could," and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2016 total revenues, revenues before reimbursable items and adjusted EPS, 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 or events 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 material breach of security of any of TSYS’ systems; TSYS’ ability to integrate acquisitions and achieve the anticipated growth opportunities and other benefits of the acquisitions; the effect of current domestic and worldwide economic conditions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; TSYS does not convert clients’ portfolios as scheduled; the deconversion of a significant client; changes occur in laws, rules, regulations, credit card association rules, prepaid industry 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 or limit the types and amounts of fees that can be charged to customers; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the payment card industry in general, including a decline in the use of 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 or events 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.

                                                                                                                                       
------------------------------------------------------------------ -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ----------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -----------------------------------------
                                                                                                                                                                                                                                     TSYS
                                                                                                                                                                                                                                     Financial Highlights
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                             Three Months Ended                                                                                                                                                                                                                                           Twelve Months Ended
                                                                                                                                                                                                                December 31,                                                                                                                                                                                                                                                 December 31,
                                                                                                                                  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                             Percent                                                                                                                                                                                                                                                      Percent
                                                                                                                                                2015                                                                      2014                                                               Change                                                                                                          2015                                                                      2014                                                               Change
                                                                                                                                  --------------------------------                                          --------------------------------                                          ---------------------                                                                                    --------------------------------                                          --------------------------------                                          ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Total revenues                                                                                                                  $    716,843                                                                   635,104                                                                      12.9           %                                                                                 $  2,779,541                                                                 2,446,877                                                                      13.6           %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Cost of services                                                                                                                     489,040                                                                   422,129                                                                      15.9                                                                                                1,855,181                                                                 1,668,892                                                                      11.2
Selling, general and administrative expenses                                                                                         109,898                                                 90,202                                                   21.8                                                                                                  390,253                                                346,345                                                   12.7
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
Total expenses                                                                                                                       598,938                                                512,331                                                   16.9                                                                                                2,245,434                                              2,015,237                                                   11.4
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Operating income                                                                                                                     117,905                                                                   122,773                                                                      (4.0 )                                                                                                534,107                                                                   431,640                                                                      23.7
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Nonoperating expenses                                                                                                                 (9,237 )                                                                  (8,516 )                                                                    (8.5 )                                                                                                (37,219 )                                                                 (38,711 )                                                                     3.9
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
 
Income before income taxes, noncontrolling interests and equity in                                                                   108,668                                                                   114,257                                                                      (4.9 )                                                                                                496,888                                                                   392,929                                                                      26.5
income of equity investments
Income taxes                                                                                                                          32,160                                                 35,428                                                   (9.2 )                                                                                                151,364                                                129,761                                                   16.6
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
Income before noncontrolling interests and equity in income of                                                                        76,508                                                                    78,829                                                                      (2.9 )                                                                                                345,524                                                                   263,168                                                                      31.3
equity investments
   Equity in income of equity investments, net of tax                                                                                  6,797                                                  5,751                                                   18.2                                                                                                   22,106                                                 17,583                                                   25.7
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
   Income from continuing operations, net of tax                                                                                      83,305                                                                    84,580                                                                      (1.5 )                                                                                                367,630                                                                   280,751                                                                      30.9
   Gain (Loss) from discontinued operations, net of tax                                                                                1,411                                                 (3,338 )                                                                                nm                                                                                          1,411                                                 48,655                                                  (97.1 )
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
Net income                                                                                                                            84,716                                                                    81,242                                                                       4.3                                                                                                  369,041                                                                   329,406                                                                      12.0
Net income attributable to noncontrolling interests                                                                                   (1,888 )                                                                  (1,382 )                                                                   (36.6 )                                                                                                 (4,997 )                                                                  (6,534 )                                                                    23.5
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Net income attributable to TSYS common shareholders                                                                             $     82,828                                                 79,860                                                    3.7           %                                                                                 $    364,044                                                322,872                                                   12.8           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Basic earnings per share (EPS):
                                                                                                                                $       0.44                                                                      0.45                                                                      (1.2 )         %                                                                                 $       1.97                                                                      1.48                                                                      33.3           %
   Income from continuing operations to TSYS common shareholders*
                                                                                                                                        0.01                                                  (0.02 )                                                                                nm                                                                                           0.01                                                   0.26                                                  (97.0 )
   Gain (Loss) from discontinued operations to TSYS common
   shareholders*
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
Basic EPS                                                                                                                       $       0.45                                                   0.43                                                    4.8           %                                                                                 $       1.98                                                   1.73                                                   14.1           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Diluted EPS:
                                                                                                                                $       0.44                                                                      0.45                                                                      (1.2 )         %                                                                                 $       1.96                                                                      1.47                                                                      33.5           %
   Income from continuing operations to TSYS common shareholders*
                                                                                                                                        0.01                                                  (0.02 )                                                                                nm                                                                                           0.01                                                   0.25                                                  (97.0 )
   Gain (Loss) from discontinued operations to TSYS common
   shareholders*
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
Diluted EPS                                                                                                                     $       0.45                                                   0.43                                                    4.8           %                                                                                 $       1.97                                                   1.72                                                   14.2           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Weighted average shares outstanding: (includes participating
securities)
   Basic                                                                                                                             183,376                                                185,221                                                                                                                                                         184,082                                                186,222  
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
   Diluted                                                                                                                           184,581                                                186,420                                                                                                                                                         185,239                                                187,681  
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Dividends declared per share                                                                                                    $       0.10                                                   0.10                                                                                                                                                    $       0.40                                                   0.40  
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Amounts attributable to TSYS common shareholders:
   Income from continuing operations, net of tax                                                                                $     81,417                                                                    83,198                                                                      (2.1 )         %                                                                                 $    362,633                                                                   275,216                                                                      31.8           %
   Gain (Loss) from discontinued operations, net of tax                                                                                1,411                                                 (3,338 )                                                                                nm                                                                                          1,411                                                 47,656                                                  (97.0 )
                                                                                                                                  ---------- --------------------                                           ---------- --------------------                                                                                                                                                    ---------- --------------------                                           ---------- --------------------
     Net income                                                                                                                 $     82,828                                                 79,860                                                    3.7           %                                                                                 $    364,044                                                322,872                                                   12.8           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Non-GAAP measures:
------------------------------------------------------------------
Adjusted EPS from continuing operations                                                                                         $       0.57                                                   0.58                                                   (1.6 )         %                                                                                 $       2.46                                                   1.96                                                   25.5           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Adjusted EBITDA                                                                                                                 $    195,031                                                193,738                                                    0.7           %                                                                                 $    833,920                                                712,267                                                   17.1           %
                                                                                                                                  ========== ====================                                           ========== ====================                                                                                                                                                    ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
nm = not meaningful
* EPS amounts may not total due to rounding.
                                                                                                                                                                                                                                      
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     TSYS
                                                                                                                                                                                                                                     Segment Breakdown
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                               Three Months Ended December 31,                                                                                                                                                                              Twelve Months Ended December 31,
                                                                                                               --------------------------------------------------------------------------------------------------------------------------------------------------------------                                              -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                             Change                                                                                                                                                                                                          Change
                                                                                                                                                                                                                   ----------------------------------------------------------                                                                                                                                                      -----------------------------------------------------------
                                                                                                                           2015                           2014                             $                   %                                                               2015                             2014                              $                    %
                                                                                                               ------------------------------------------------- ------------------------------------------------- ------------------------------------------------ ---------                                              --------------------------------------------------- --------------------------------------------------- ------------------------------------------------- ---------
Revenues before reimbursable items:
   North America Services                                                               $                      300,265                                           255,539                                           44,726                                            17.5     %                                          $ 1,147,254                                             954,082                                           193,172                                            20.2              %
   International Services                                                                                       87,126                                            92,895                                           (5,769 )                                          (6.2 )                                                  331,159                                             341,785                                           (10,626 )                                          (3.1 )
   Merchant Services                                                                                           122,053                                           107,677                                           14,376                                            13.4                                                    474,040                                             435,649                                            38,391                                             8.8
   NetSpend                                                                                                    144,034                                           119,165                                           24,869                                            20.9                                                    580,377                                             482,686                                            97,691                                            20.2
   Intersegment revenues                                                                                        (8,383 )                       (5,975 )                      (2,408 )                                         (40.3 )                                                  (33,481 )                        (21,224 )                      (12,257 )                                         (57.8 )
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
                                                                                        $                      645,095     569,301     75,794                         13.3     %                                          $ 2,499,349     2,192,978     306,371                         14.0              %
        Revenues before reimbursable items from external customers
                                                                                                               ======= ==================== ==================== ======= ==================== ==================== ====== ====================                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Total revenues:
   North America Services                                                               $                      349,764                                           299,429                                           50,335                                            16.8     %                                          $ 1,334,258                                           1,117,764                                           216,494                                            19.4              %
   International Services                                                                                       93,128                                            98,650                                           (5,522 )                                          (5.6 )                                                  354,725                                             363,359                                            (8,634 )                                          (2.4 )
   Merchant Services                                                                                           139,693                                           125,296                                           14,397                                            11.5                                                    549,369                                             510,120                                            39,249                                             7.7
   NetSpend                                                                                                    144,034                                           119,165                                           24,869                                            20.9                                                    580,377                                             482,686                                            97,691                                            20.2
   Intersegment revenues                                                                                        (9,776 )                       (7,436 )                      (2,340 )                                         (31.5 )                                                  (39,188 )                        (27,052 )                      (12,136 )                                         (44.9 )
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
        Revenues from external customers                                                $                      716,843     635,104     81,739                         12.9     %                                          $ 2,779,541     2,446,877     332,664                         13.6              %
                                                                                                               ======= ==================== ==================== ======= ==================== ==================== ====== ====================                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Depreciation and amortization:
   North America Services                                                               $                       26,712                                            23,136                                            3,576                                            15.5     %                                          $    99,544                                              86,513                                            13,031                                            15.1              %
   International Services                                                                                        8,808                                             9,733                                             (925 )                                          (9.5 )                                                   34,892                                              38,909                                            (4,017 )                                         (10.3 )
   Merchant Services                                                                                             4,874                                             3,980                                              894                                            22.5                                                     18,268                                              14,571                                             3,697                                            25.4
   NetSpend                                                                                                      3,139       1,730      1,409                         81.4                                                     10,686         7,509       3,177                         42.3
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
Segment depreciation and amortization                                                                           43,533                                            38,579                                            4,954                                            12.8                                                    163,390                                             147,502                                            15,888                                            10.8
Acquisition intangible amortization                                                                             22,920                                            24,166                                           (1,246 )                                          (5.2 )                                                   92,522                                              96,971                                            (4,449 )                                          (4.6 )
Corporate admin and other                                                                                          593         446        147                         33.0                                                      2,352         2,147         205                          9.5
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
        Total depreciation and amortization                                             $                       67,046      63,191      3,855                          6.1     %                                          $   258,264       246,620      11,644                          4.7              %
                                                                                                               ======= ==================== ==================== ======= ==================== ==================== ====== ====================                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Adjusted segment operating income:
   North America Services                                                               $                      104,162                                            99,620                                            4,542                                             4.6     %                                          $   429,064                                             351,512                                            77,552                                            22.1              %
   International Services                                                                                       21,381                                            22,849                                           (1,468 )                                          (6.4 )                                                   60,087                                              55,123                                             4,964                                             9.0
   Merchant Services                                                                                            33,033                                            31,399                                            1,634                                             5.2                                                    150,225                                             134,872                                            15,353                                            11.4
   NetSpend                                                                                                     28,614      32,742     (4,128 )                                         (12.6 )                                                  137,837       128,285       9,552                          7.4
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
Total adjusted segment operating income                                                                        187,190                                           186,610                                              580                                             0.3                                                    777,213                                             669,792                                           107,421                                            16.0
Acquisition intangible amortization                                                                            (22,920 )                                         (24,166 )                                          1,246                                             5.2                                                    (92,522 )                                           (96,971 )                                           4,449                                             4.6
NetSpend M&A operating expenses                                                                                      -                                                (3 )                                              3                                                 nm                                                       -                                              (3,217 )                                           3,217                                                 nm
Share-based compensation                                                                                       (10,080 )                                          (7,771 )                                         (2,309 )                                         (29.7 )                                                  (41,549 )                                           (30,790 )                                         (10,759 )                                         (34.9 )
Corporate admin and other                                                                                      (36,285 )                      (31,897 )                      (4,388 )                                         (13.8 )                                                 (109,035 )                       (107,174 )                       (1,861 )                                          (1.7 )
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
        Operating income                                                                $                      117,905     122,773     (4,868 )                                          (4.0 )   %                                          $   534,107       431,640     102,467                         23.7              %
                                                                                                               ======= ==================== ==================== ======= ==================== ==================== ====== ====================                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Other:
Reimbursable items:
   North America Services                                                               $                       49,499                                            43,890                                            5,609                                            12.8     %                                          $   187,004                                             163,682                                            23,322                                            14.2              %
   International Services                                                                                        6,002                                             5,755                                              247                                             4.3                                                     23,566                                              21,574                                             1,992                                             9.2
   Merchant Services                                                                                            17,640                                            17,619                                               21                                             0.1                                                     75,329                                              74,471                                               858                                             1.2
   NetSpend                                                                                                          -                                                 -                                                -                                                 na                                                       -                                                   -                                                 -                                                 na
   Intersegment revenues                                                                                        (1,393 )                       (1,461 )                          68                          4.7                                                     (5,707 )                         (5,828 )                          121                          2.1
                                                                                                               ------- -------------------- -------------------- ------- -------------------- -------------------- ------ --------------------                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
        Reimbursable items                                                              $                       71,748      65,803      5,945                          9.0     %                                          $   280,192       253,899      26,293                         10.4              %
                                                                                                               ======= ==================== ==================== ======= ==================== ==================== ====== ====================                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                TSYS
                                                                       Condensed Balance Sheet
                                                                             (unaudited)
                                                                           (in thousands)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
                                                                                    December 31, 2015                                              December 31, 2014
                                                                                    -----------------                                           --------------------
Assets
Current assets:
   Cash and cash equivalents                                                      $           389,328                                                        289,183
   Accounts receivable, net                                                                   314,705                                                        283,203
   Other current assets                                                                       180,690                                                        118,167
                                                                                    -----------------                                           --------------------
          Total current assets                                                                884,723                                                        690,553
Goodwill                                                                                    1,545,424                                                      1,547,397
Other intangible assets, net                                                                  328,320                                                        404,107
Property, equipment and software, net                                                         694,968                                                        656,733
Other long term assets                                                                        456,685                                                        434,791
                                                                                    -----------------                                           --------------------
          Total assets                                                            $         3,910,120                                                      3,733,581
                                                                                    =================                                           ====================
                                                                                                                                                 
Liabilities
Current liabilities:
    Accounts payable                                                              $            52,213                                                         48,793
    Bonds, notes and capital leases                                                            53,832                                                         50,911
    Other current liabilities                                                                 234,993                                                        196,809
                                                                                    -----------------                                           --------------------
          Total current liabilities                                                           341,038                                                        296,513
Bonds, notes and capital leases, excluding current portion                                  1,383,634                                                      1,405,106
Other long-term liabilities                                                                   313,356                                                        309,826
                                                                                    -----------------                                           --------------------
          Total liabilities                                                                 2,038,028                                                      2,011,445
                                                                                    -----------------                                           --------------------
Redeemable noncontrolling interest                                                             23,410                                                         22,492
                                                                                    -----------------                                           --------------------
Equity
Shareholders’ equity                                                                        1,843,019                                                      1,692,762
                                                                                    -----------------                                           --------------------
Noncontrolling interests in consolidated subsidiaries                                           5,663                                                          6,882
                                                                                    -----------------                                           --------------------
          Total equity                                                                      1,848,682                                                      1,699,644
                                                                                    -----------------                                           --------------------
          Total liabilities and equity                                            $         3,910,120                                                      3,733,581
                                                                                    =================                                           ====================
                                                                                                                                                 
 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         TSYS
                                                                                             Selected Cash Flow Highlights
                                                                                                      (unaudited)
                                                                                                    (in thousands)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
                                                                                                                                                 Twelve Months Ended December 31,
                                                                                                            -----------------------------------------------------------------------------------------------------------
                                                                                                                         2015                                                                         2014
                                                                                                            ------------------------------                                               ------------------------------
Cash flows from operating activities:
   Net income                                                                                             $  369,041                                                                      329,406
   Adjustments to reconcile net income to net cash provided by
   operating activities:
       Gain on disposal of subsidiaries                                                                       (3,568 )                                                                    (86,961 )
       Equity in income of equity investments                                                                (22,106 )                                                                    (17,583 )
       Dividends received from equity investments                                                             12,097                                                                        9,189
       Depreciation and amortization                                                                         258,264                                                                      248,018
       Other noncash adjustments                                                                              64,034                                                                       67,427
       Changes in operating assets and liabilities:                                                          (77,568 )                                                                     10,705  
                                                                                                            -------- --------------------                                                -------- --------------------
           Net cash provided by operating activities                                                         600,194                                                                      560,201
                                                                                                                                                                                                                        
           Net cash used in investing activities                                                            (202,184 )                                                                   (226,607 )
                                                                                                                                                                                                                        
           Net cash used in financing activities                                                            (290,754 )                                                                   (316,473 )
                                                                                                                                                                                                                        
Cash and cash equivalents:
 Effect of exchange rate changes on cash and cash equivalents                                                 (7,111 )                                                                     (6,168 )
                                                                                                            -------- --------------------                                                -------- --------------------
 Net increase in cash and cash equivalents                                                                   100,145                                                                       10,953
 Cash and cash equivalents at beginning of period                                                            289,183                                                   278,230  
                                                                                                            -------- --------------------                                                -------- --------------------
 Cash and cash equivalents at end of period                                                               $  389,328                                                   289,183  
                                                                                                            ======== ====================                                                ======== ====================
                                                                                                                                                                                                                        
Supplemental - Non-GAAP:
 Net cash provided by operating activities                                                                $  600,194                                                                      560,201
 Capital expenditures                                                                                       (203,315 )                                                                   (235,924 )
                                                                                                            -------- --------------------                                                -------- --------------------
 Free cash flow                                                                                              396,879                                                                      324,277
 Principal payments on debt and capital leases                                                               (54,719 )                                                                    (69,939 )
                                                                                                            -------- --------------------                                                -------- --------------------
 Available free cash flow                                                                                 $  342,160                                                   254,338  
                                                                                                            ======== ====================                                                ======== ====================
                                                                                                                                                                                                                        
 Dividends paid on common stock                                                                               73,677                                                                       74,796
 Repurchase of common stock under plans                                                                      242,085                                                   165,297  
                                                                                                            -------- --------------------                                                -------- --------------------
 Available free cash flow returned to shareholders                                                        $  315,762                                                   240,093  
                                                                                                            ======== ====================                                                ======== ====================
                                                                                                                                                                                                                        
 Percent available free cash flow returned to shareholders                                                      92.3     %                                                94.4             %
                                                                                                            ======== ====================                                                ======== ====================
                                                                                                                                                                                                                        
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              TSYS
                                                                                    Supplemental Information
                                                                                           (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  
Other
Accounts on File (AOF):                                                                                                Total Accounts on File
                                                                     ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                          %
(in millions)                                                        December 2015     December 2014       Change
                                                                     ------------- -------------------- -------------------- ------------- -------------------- -------------------- ---------
Consumer Credit                                                              382.1                                                   270.0                                            41.5
Retail                                                                        26.1              28.4                                            (7.9 )
                                                                     ------------- -------------------- -------------------- -------------
   Total Consumer                                                            408.2                                                   298.4                                            36.8
Commercial                                                                    45.4                                                    41.6                                             9.2
Other                                                                         26.6              22.4                                            18.8
                                                                     ------------- -------------------- -------------------- -------------
   Subtotal                                                                  480.2                                                   362.4                                            32.5
Prepaid*/Stored Value                                                         97.2                                                   127.3                                           (23.7 )
Government Services                                                           79.3                                                    67.4                                            17.8
Commercial Card Single Use                                                    75.8              59.6                                            27.1
                                                                     ------------- -------------------- -------------------- -------------
Total AOF                                                                    732.5             616.7                                            18.8
                                                                     ============= ==================== ==================== =============
     * Prepaid does not include NetSpend accounts
 
Growth in Accounts on File (in millions):                                                                                
-----------------------------------------
                                                                                                                                                                               December 2014 to                                                                       December 2013 to
                                                                                                                                                                                  December 2015                December 2014
                                                                                                                                                                  -------------------------------------------------- -------------------- -------------------- ------------------------------
Beginning balance                                                                                                                                                    616.7                                                                                        541.0
Change in accounts on file due to:
                                                                                    Internal growth of existing clients                                               42.2                                                                                         40.0
                                                                                                            New clients                                              145.6                                                                                         75.3
                                                                                                           Purges/Sales                                              (29.0 )                                                                                      (39.0 )
                                                                                                          Deconversions                                              (43.0 )                              (0.6 )
                                                                                                                                                                  -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
Ending balance                                                                                                                                                       732.5            616.7  
                                                                                                                                                                  ======== ==================== ==================== ==================== ==================== ======== ====================
Segment data:                                                           
                                                                                                                                                                              Three Months Ended December 31,
                                                                                               ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                          Change
                                                                                                                                                                                                           ---------------------------------------------------------------------------------
                                                                                                   2015            2014          Inc(Dec)                    %
                                                                                               -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------- -------------------- --------------------------
North America Segment:                                                                                                                                                                                                     
   Transactions (in millions)                                                                      4,264.9                                               2,980.0                                                1,284.9                                           43.1           %
                                                                                                                                                                                                                                                                        
International Segment:
   Transactions (in millions)                                                                        661.7                                                 618.1                                                   43.5                                            7.0           %
                                                                                                                                                                                                                                                                        
Merchant Segment:
   Point-of-sale transactions (in millions)                                                        1,075.2                                                 991.0                                                   84.2                                            8.5           %
   Dollar sales volume (in millions)                                                            $ 12,401.1                                            $ 12,392.6                                              $     8.5                                            0.1           %
                                                                                                                                                                                                                                                                        
NetSpend Segment:
   Gross dollar volume (in millions)                                                            $  5,692.0                                            $  4,691.5                                              $ 1,000.5                                           21.3           %
                                                                                                                                                                                                                                                                        
                                                                                                                                                                             Twelve Months Ended December 31,
                                                                                               ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                Change
                                                                                                                                                                                                           ---------------------------------------------------------------------------------
                                                                                                   2015            2014          Inc(Dec)                    %
                                                                                               -------------------------------- -------------------- -------------------------------- -------------------- --------------------------------- -------------------- --------------------------
North America Segment:
   AOF (in millions)                                                                                 654.1                                                 550.0                                                  104.1                                           18.9           %
   Transactions (in millions)                                                                     15,774.5                                              10,838.0                                                4,936.5                                           45.5           %
                                                                                                                                                                                                                                                                        
International Segment:
   AOF (in millions)                                                                                  78.5                                                  66.6                                                   11.9                                           17.8           %
   Transactions (in millions)                                                                      2,473.6                                               2,268.4                                                  205.2                                            9.0           %
                                                                                                                                                                                                                                                                        
Merchant Segment:
   Point-of-sale transactions (in millions)                                                        4,266.5                                               4,052.7                                                  213.8                                            5.3           %
   Dollar sales volume (in millions)                                                            $ 48,072.7                                            $ 46,846.4                                              $ 1,226.3                                            2.6           %
                                                                                                                                                                                                                                                                        
NetSpend Segment:
   Gross dollar volume (in millions)                                                            $ 24,274.9                                            $ 20,296.0                                              $ 3,978.9                                           19.6           %
                                                                                                                                                                                                                                                                        
   Direct deposit 90-day active cards (in thousands)                                               1,895.0                                               1,610.2                                                  284.8                                           17.7           %
   90-day active cards (in thousands)                                                              3,894.1                                               3,215.0                                                  679.1                                           21.1           %
   % of 90-day active cards with direct deposit                                                      48.7%                                                 50.1%
                                                                                                                                                                                                                                                                        
                      Reconciliation of GAAP to Non-GAAP Financial Measures
 
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 fourth quarter
2015 financial results using the previous year’s foreign currency
exchange rates. On a full year constant currency basis, TSYS’ total
revenues grew 14.9% as compared to a reported GAAP increase of 13.6%.
                                                 
The schedule below also provides a reconciliation of basic EPS,
adjusted for the after-tax impact of acquisition intangible
amortization, share-based compensation and merger and acquisition
costs, to adjusted EPS.
                                                 
The tax rate used in the calculation of adjusted EPS for the quarter
and year is equal to an estimate of our annual effective tax rate on
GAAP income. This effective rate is estimated annually and may be
adjusted during the year to take into account events or trends that
materially impact the effective tax rate including, but not limited
to, significant changes resulting from tax legislation, material
changes in the mix of revenues and expenses by entity and other
significant events.
                                                 
The schedule also provides a reconciliation of net income, adjusted
for income from discontinued operations, equity in income of equity
investments, income taxes, nonoperating expense, depreciation and
amortization, share-based compensation, and merger and acquisition
expenses, to adjusted EBITDA.
                                                 
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 potential
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.
 
                                                                                                                                                                                                                                     Reconciliation of GAAP to Non-GAAP
                                                                     
-------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -----------------------------------------
                                                                                                                                                                                                                                     Constant Currency Comparison
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                               
                                                                                                                                                                         Three Months Ended December 31,                                                                                                                                                                                                                  Twelve Months Ended December 31,
                                                                                                         --------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                         Percent                                                                                                                                                                                                                                           Percent
                                                                                                                       2015                          2014                    Change                                                                                                          2015                          2014                    Change
                                                                                                         ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------                                                                                    ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Consolidated
Constant currency (1)                                                                                  $    722,581                                                                             635,104                                                 13.8           %                                                                                 $  2,810,999                                                                           2,446,877                                                 14.9           %
Foreign currency impact (2)                                                                                  (5,738 )                                           -                                                                                                                                                       (31,458 )                                           -
                                                                                                         ---------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    ---------- -------------------- -------------------- -------------------- --------------------
Total revenues                                                                                         $    716,843                    635,104                                                 12.9           %                                                                                 $  2,779,541                  2,446,877                                                 13.6           %
                                                                                                         ========== ==================== ==================== ==================== ====================                                                                                                                                                    ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Constant currency (1)                                                                                  $    650,484                                                                             569,301                                                 14.3           %                                                                                 $  2,528,775                                                                           2,192,978                                                 15.3           %
Foreign currency impact (2)                                                                                  (5,389 )                                           -                                                                                                                                                       (29,426 )                                           -
                                                                                                         ---------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    ---------- -------------------- -------------------- -------------------- --------------------
Total revenues before reimbursable items                                                               $    645,095                    569,301                                                 13.3           %                                                                                 $  2,499,349                  2,192,978                                                 14.0           %
                                                                                                         ========== ==================== ==================== ==================== ====================                                                                                                                                                    ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Constant currency (1)                                                                                  $    118,297                                                                             122,773                                                 (3.6 )         %                                                                                 $    535,204                                                                             431,640                                                 24.0           %
Foreign currency impact (2)                                                                                    (392 )                                           -                                                                                                                                                        (1,097 )                                           -
                                                                                                         ---------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    ---------- -------------------- -------------------- -------------------- --------------------
Operating income                                                                                       $    117,905                    122,773                                                 (4.0 )         %                                                                                 $    534,107                    431,640                                                 23.7           %
                                                                                                         ========== ==================== ==================== ==================== ====================                                                                                                                                                    ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
International Services
Constant currency (1)                                                                                  $     98,707                                                                              98,650                                                  0.1           %                                                                                 $    385,676                                                                             363,359                                                  6.1           %
Foreign currency impact (2)                                                                                  (5,579 )                                           -                                                                                                                                                       (30,951 )                                           -
                                                                                                         ---------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    ---------- -------------------- -------------------- -------------------- --------------------
Total revenues                                                                                         $     93,128                     98,650                                                 (5.6 )         %                                                                                 $    354,725                    363,359                                                 (2.4 )         %
                                                                                                         ========== ==================== ==================== ==================== ====================                                                                                                                                                    ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
(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.
                                                                     
-------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -----------------------------------------
                                                                                                                                                                                                                                     Revenues Before Reimbursable Items
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                         Three Months Ended December 31,                                                                                                                                                                                                                  Twelve Months Ended December 31,
                                                                                                         --------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                    --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                         Percent                                                                                                                                                                                                                                           Percent
                                                                                                                       2015                          2014                                                          Change                                                                                                          2015                          2014                                                          Change
                                                                                                         ---------------------------------------------------- -------------------- --------------------                                           ---------------------                                                                                    ---------------------------------------------------- -------------------- --------------------                                           ---------------------
Total revenues                                                                                         $    716,843                                                                             635,104                                                 12.9           %                                                                                 $  2,779,541                                                                           2,446,877                                                 13.6           %
Reimbursable items                                                                                           71,748                     65,803                                                  9.0                                                                                                  280,192                    253,899                                                 10.4
                                                                                                         ---------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    ---------- -------------------- -------------------- -------------------- --------------------
Revenues before reimbursable items                                                                     $    645,095                    569,301                                                 13.3           %                                                                                 $  2,499,349                  2,192,978                                                 14.0           %
                                                                                                         ========== ==================== ==================== ==================== ====================                                                                                                                                                    ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                           Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                               Adjusted Earnings per Share
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                          (in thousands, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                             Three Months Ended December 31,                                                                                                                                                                Twelve Months Ended December 31,
                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                              Percent                                                                                                                                                                                                            Percent
                                                                                                             2015                              2014                                  Change                                                                                               2015                              2014                                                     Change
                                                                                                                  ------------------------------  -------------------- ------------------------------  -------------------- ---------------------------------------                                                                  ------------------------------  -------------------- ------------------------------                       ---------------------------------------
Income from continuing operations attributable to TSYS common                                                   $     81,417                                               83,198                                                 (2.1 )         %                                                                                 $    362,633                                              275,216                                                 31.8           %
shareholders
Adjust for amounts attributable to TSYS common shareholders:
   Add: Acquisition intangible amortization, net of taxes                                                       $     15,580                                               17,747                                                (12.2 )         %                                                                                       61,525                                               65,127                                                 (5.5 )
   Add: Share-based compensation, net of taxes                                                                         6,933                                                5,777                                                 20.0                                                                                                   27,954                                               20,944                                                 33.5
   Add: NetSpend M&A expenses, net of taxes*                                                                               -              3                                          nm                                                                                              -          3,115                                          nm
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
Adjusted earnings                                                                                               $    103,930        106,725                              (2.6 )         %                                                                                 $    452,112        364,402                              24.1           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
   Add/deduct: Federal & state R&D credits and related expenses, net of                                                  118              -                                          na                                                                                        (23,440 )                               -                                          na
   tax
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
Adjusted earnings without impact of one-time tax items                                                          $    104,048        106,725                              (2.5 )         %                                                                                 $    428,672        364,402                              17.6           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Basic EPS - Income from continuing operations attributable to
TSYS common shareholders
As reported (GAAP)                                                                                              $       0.44           0.45                              (1.2 )         %                                                                                 $       1.97           1.48                              33.3           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Adjust for amounts attributable to TSYS common shareholders:
   Add: Acquisition intangible amortization, net of taxes                                                               0.09                                                 0.10                                                (11.3 )                                                                                                   0.33                                                 0.35                                                 (4.4 )
   Add: Share-based compensation, net of taxes                                                                          0.04                                                 0.03                                                 21.2                                                                                                     0.15                                                 0.11                                                 34.9
   Add: NetSpend M&A expenses, net of taxes*                                                                               -              -                                          nm                                                                                              -           0.02                                          nm
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
Adjusted EPS **                                                                                                 $       0.57           0.58                              (1.6 )         %                                                                                 $       2.46           1.96                              25.5           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
   Add/deduct: Federal & state R&D credits and related expenses, net of                                                 0.00              -                                          na                                                                                          (0.13 )                               -                                          na
   tax
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
Adjusted EPS without impact of one-time tax items                                                               $       0.57           0.58                              (1.5 )         %                                                                                 $       2.33           1.96                              19.0           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Weighted average shares outstanding                                                                                  183,376        185,221                                                                                                                                    184,082        186,222  
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
* Certain merger and acquisition costs are nondeductible for income
tax purposes
** Adjusted EPS amounts may not total due to rounding.
                                                                                            
----------------------- ----------------------- ----------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------------------------- ----------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------------------------- -----------------------------------------
                                                                                                                                                                                                                                     Adjusted EBITDA
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                             Three Months Ended December 31,                                                                                                                                             Twelve Months Ended December 31,
                                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                              Percent                                                                                                                                                                                                            Percent
                                                                                                                                2015                              2014                                  Change                                                                                               2015                              2014                                  Change
                                                                                                                  ------------------------------  -------------------- ------------------------------  -------------------- ---------------------------------------                                                                  ------------------------------  -------------------- ------------------------------  -------------------- ---------------------------------------
Net income                                                                                                      $     84,716                                               81,242                                                  4.3           %                                                                                 $    369,041                                              329,406                                                 12.0           %
 Adjust for:
   Deduct: Income from discontinued operations                                                                        (1,411 )                                              3,338                                                             nm                                                                                         (1,411 )                                            (48,655 )                                               97.1
   Deduct: Equity in income of equity investments                                                                     (6,797 )                                             (5,751 )                                              (18.2 )                                                                                                (22,106 )                                            (17,583 )                                              (25.7 )
   Add: Income taxes                                                                                                  32,160                                               35,428                                                 (9.2 )                                                                                                151,364                                              129,761                                                 16.6
   Add: Nonoperating expense                                                                                           9,237                                                8,516                                                  8.5                                                                                                   37,219                                               38,711                                                 (3.9 )
   Add: Depreciation and amortization                                                                                 67,046         63,191                               6.1                                                                                                  258,264        246,620                               4.7
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
 EBITDA                                                                                                         $    184,951                                              185,964                                                 (0.5 )         %                                                                                 $    792,371                                              678,260                                                 16.8           %
 Adjust for:
   Add: Share-based compensation                                                                                      10,080                                                7,771                                                 29.7                                                                                                   41,549                                               30,790                                                 34.9
   Add: NetSpend M&A operating expenses                                                                                    -              3                                          nm                                                                                              -          3,217                                          nm
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
 Adjusted EBITDA                                                                                                $    195,031        193,738                               0.7           %                                                                                 $    833,920        712,267                              17.1           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
   Add/deduct: State R&D credits and related expenses                                                                    181              -                                          na                                                                                        (14,903 )                               -                                          na
                                                                                                                  ---------- -------------------- -------------------- ---------- --------------------                                                                                                                               ---------- -------------------- -------------------- ---------- --------------------
 Adjusted EBITDA without impact of one-time tax items                                                           $    195,212        193,738                               0.8           %                                                                                 $    819,017        712,267                              15.0           %
                                                                                                                  ========== ==================== ==================== ========== ====================                                                                                                                               ========== ==================== ==================== ========== ====================
nm = not meaningful
                                                                                                                                                                                                                                                           
                                                                                                                                                                                                              Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                              Segment Operating Margin and Consolidated Adjusted Operating Margin
                                                                                                                                                                                                                          (unaudited)
                                                                                                                                                                                                                        (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                         
                                                                                                                                    Three Months Ended December 31, 2015                                                                                                                                                                       Three Months Ended December 31, 2014
                                                                                         ---------------------------------------------------------------------------------------------------------------------------                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Adjusted Segment                                      Revenues before                                 Adjusted                                                                                  Adjusted Segment                                      Revenues before                                                      Adjusted
                                                                                                 Operating Income                 Reimbursable Items         Operating Margin                                                                              Operating Income                 Reimbursable Items           Operating Margin
                                                                                         ---------------------------------------------------- ---------------------------------------------------- ----------------                                                                      ---------------------------------------------------- ---------------------------------------------------- -------------------- ----------------
   North America Services                                                              $    104,162                                              300,265                                                      34.69 %                                                                  $     99,620                                              255,539                                                                           38.98 %
   International Services                                                                    21,381                                               87,126                                                      24.54                                                                          22,849                                               92,895                                                                           24.60
   Merchant Services                                                                         33,033                                              122,053                                                      27.06                                                                          31,399                                              107,677                                                                           29.16
   NetSpend                                                                                  28,614                                              144,034                                                      19.87                                                                          32,742                                              119,165                                                                           27.48
   Intersegment                                                                                   -                                               (8,383 )                                                                                                                                        -                                               (5,975 )
   Corporate admin and other                                                                (36,285 )                                                                                                                                                 (31,897 )                       
                                                                                         ---------- -------------------- -------------------- --------------------------------                                                                                                           ---------- -------------------- -------------------- --------------------------------
      Adjusted operating margin                                                        $    150,905                                              645,095                                                      23.39 %                                                                  $    154,713                                              569,301                                                                           27.18 %
Acquisition intangible amortization                                                         (22,920 )                                                                                                                                                                                       (24,166 )
NetSpend M&A operating expenses                                                                   -                                                                                                                                                                                              (3 )
Share-based compensation                                                                    (10,080 )                                                                                                                                                  (7,771 )                       
                                                                                         ---------- -------------------- -------------------- --------------------------------                                                                                                           ---------- -------------------- -------------------- --------------------------------
      Operating income and margin*                                                     $    117,905                                              645,095                                                      18.28 %                                                                  $    122,773                                              569,301                                                                           21.57 %
      Reimbursable items                                                                                    71,748                                                                                                                                 65,803  
                                                                                         ---------------------------------------------------- ---------- --------------------                                                                                                            ---------------------------------------------------- ---------- --------------------
                                                                                       $    117,905        716,843                                   16.45 %                                                                  $    122,773        635,104                                                        19.33 %
      Operating income and margin (US GAAP)
                                                                                         ========== ==================== ==================== ========== ====================                                                                                                            ========== ==================== ==================== ========== ====================
 
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                    Twelve Months Ended December 31, 2015                                                                                                                                                                      Twelve Months Ended December 31, 2014
                                                                                         ---------------------------------------------------------------------------------------------------------------------------                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Adjusted Segment                                      Revenues before                                 Adjusted                                                                                  Adjusted Segment                                      Revenues before                                                      Adjusted
                                                                                                 Operating Income                 Reimbursable Items         Operating Margin                                                                              Operating Income                 Reimbursable Items                                                 Operating Margin
                                                                                         ---------------------------------------------------- ---------------------------------------------------- ----------------                                                                      ---------------------------------------------------- --------------------------------                                          ----------------
   North America Services                                                              $    429,064                                            1,147,254                                                      37.40 %                                                                  $    351,512                                              954,082                                                                           36.84 %
   International Services                                                                    60,087                                              331,159                                                      18.14                                                                          55,123                                              341,785                                                                           16.13
   Merchant Services                                                                        150,225                                              474,040                                                      31.69                                                                         134,872                                              435,649                                                                           30.96
   NetSpend                                                                                 137,837                                              580,377                                                      23.75                                                                         128,285                                              482,686                                                                           26.58
   Intersegment                                                                                   -                                              (33,481 )                                                                                                                                        -                                              (21,224 )
   Corporate admin and other                                                               (109,035 )                                                                                                                                                (107,174 )                       
                                                                                         ---------- -------------------- -------------------- --------------------------------                                                                                                           ---------- -------------------- -------------------- --------------------------------
      Adjusted operating margin                                                        $    668,178                                            2,499,349                                                      26.73 %                                                                  $    562,618                                            2,192,978                                                                           25.66 %
Acquisition intangible amortization                                                         (92,522 )                                                                                                                                                                                       (96,971 )
NetSpend M&A operating expenses                                                                   -                                                                                                                                                                                          (3,217 )
Share-based compensation                                                                    (41,549 )                                                                                                                                                 (30,790 )                       
                                                                                         ---------- -------------------- -------------------- --------------------------------                                                                                                           ---------- -------------------- -------------------- --------------------------------
      Operating income and margin*                                                     $    534,107                                            2,499,349                                                      21.37 %                                                                  $    431,640                                            2,192,978                                                                           19.68 %
      Reimbursable items                                                                                   280,192                                                                                                                                253,899  
                                                                                         ---------------------------------------------------- ---------- --------------------                                                                                                            ---------------------------------------------------- ---------- --------------------
                                                                                       $    534,107      2,779,541                                   19.22 %                                                                  $    431,640      2,446,877                                                        17.64 %
      Operating income and margin (US GAAP)
                                                                                         ========== ==================== ==================== ========== ====================                                                                                                            ========== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                          
* Operating margin on revenue before reimbursable items
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160126006622r1&sid=cmtx6&distro=nx&lang=en

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SOURCE: TSYS"> <Property FormalName="PrimaryTwitterHandle" Value="@TSYS_TSS

TSYS Investor Relations 
Shawn Roberts, +1-706-644-6081 
shawnroberts@tsys.com


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