StockSelector.com
  Research, Select, & Monitor Sunday, December 17, 2017 8:44:59 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
TSYS$77.81$1.181.54%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 TSYS Reports Third Quarter Earnings
   Tuesday, October 25, 2016 4:15:09 PM ET

TSYS (TSS ) reported results for the third quarter of 2016.

"We were very pleased with this quarter’s financial performance as all four of our operating segments exceeded our expectations. We remain on track with our TransFirst integration activities and continue to be laser-focused on successfully combining our legacy merchant businesses with TransFirst," said M. Troy Woods, chairman and chief executive officer of TSYS.

Highlights for the third quarter of 2016 include:

-- Total revenues were $1.1 billion, an increase of 62.0% over last year’s $707.9 million.

-- Net revenue (non-GAAP), which excludes reimbursable items, interchange and assessment expense, was $789.6 million, an increase of 24.1% over last year’s $636.4 million.



-- GAAP net income attributable to TSYS common shareholders was $85.4 million, a decrease of 29.2% from last year’s $120.6 million. GAAP basic earnings per share (EPS) were $0.46 per share, a decrease of 29.2% from last year’s $0.66.

-- Adjusted EBITDA (non-GAAP) was $269.1 million, an increase of 12.7% over last year’s $238.9 million. Q3 ’15 results included tax benefits of $15.1 million that did not recur in 2016.

-- Adjusted earnings (non-GAAP) were $130.7 million, a decrease of 8.8% over last year’s $143.3 million. Q3 ’15 adjusted earnings and adjusted EPS (non-GAAP) included $23.6 million and $0.13, respectively, of tax related benefits that did not recur in 2016. Q3 ’16 adjusted EPS was $0.71, which included $0.06 of headwinds for currency and severance expenses, a decrease of 8.7% over last year’s $0.78.

"Our cash flow from operating activities and free cash flow for the first nine months of the year were both records. This allowed us to reduce our debt by $175 million during the quarter, bringing the total debt reduction to $300 million year to date," said Woods.

During the third quarter, currencies, including the rapid and steep decline in the British Pound compared to the U. S. Dollar, negatively impacted total revenues and net revenue by $14 million and $13 million, respectively, on a constant currency basis compared to 2015. A similar impact is expected in Q4. This same constant currency comparison negatively impacted EPS by $0.03 in Q3 ’16 and is expected to have a similar impact in Q4.

The Consumer Financial Protection Bureau released its long-awaited rule on prepaid financial products on October 5, 2016. The new rule is not expected to have a significant financial impact on 2016 results. Additional details on the impact of the new rule will be discussed at today’s quarterly conference call.

Updated 2016 Outlook

As a result of currency headwinds, total and net revenue guidance are being adjusted. EPS guidance remains unchanged. The resulting revised guidance is below.

                                                                                                      
                                                                                                       2016 Revised                                                           Percent
                                                                                                                        Financial Outlook                                                                                              Change
                                                                                                                              Range
                                                                                                     --------------------------------------------------     -------------------- -------------------- -------------------------------------------------------------------
(in millions, except per share amounts)                                                                                                                                                        
Revenue:
Total revenues (GAAP)                                                                                    $4,150             to                       $4,170                                             49%                      to                                       50%
Net revenue (non-GAAP)                                                                                   $3,030             to                       $3,045                                             21%                      to                                       22%
                                                                                                                                                                                                                                                          
Earnings per share:
Basic EPS (GAAP)                                                                                          $1.77             to                        $1.83                                           (10%)                      to                                      (7%)
Adjusted EPS attributable to TSYS common shareholders from                                                $2.78             to                        $2.85                                             13%                      to                                       16%
continuing operations (non-GAAP)
Average basic weighted shares                                                                          183.7
                                                                                                                                                                                                                                                          

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, October 25. The conference call can be accessed via simultaneous Internet broadcast on the "Investor Relations" section of TSYS’ website at investors.tsys.com where an accompanying slide presentation will also be available. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call.

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, net revenue, adjusted earnings, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures is included on pages 11 to 15 of this release.

About TSYS

TSYS(R) (TSS ) unlocks opportunities in payments for payment providers, businesses and consumers. Our headquarters are in Columbus, Georgia, USA, and we operate in more than 80 countries with local offices across the Americas, EMEA and Asia-Pacific.

We provide seamless, secure and innovative solutions across the payments spectrum -- from issuer processing and merchant acquiring to prepaid program management -- delivered through partnership and expertise. We succeed because we put people, and their needs, at the heart of every decision. It’s an approach we call ’People-Centered Payments(R)’.

Our industry is changing every day -- and we’re leading the way toward the payments of tomorrow. We routinely post all important information on our website. For more, visit us at 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’ expectation with respect to the impact of constant currency on revenues and EPS in the fourth quarter of 2016, the expected impact of the Consumer Financial Protection Bureau’s new rule regarding prepaid financial products on TSYS’ 2016 results, TSYS’ earnings guidance for 2016 total revenues, net revenue, basic EPS 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, particularly the recently closed TransFirst acquisition; the effect of current domestic and worldwide economic conditions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates, and in particular with respect to the current environment, adverse developments with respect to foreign currency exchange rates as a result of the United Kingdom’s decision to leave the European Union (Brexit); 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, and in particular the CFPB’s new rule regarding prepaid financial products; 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. TSYS disclaims any obligation to update any forward-looking statements as a result of new information, future developments or otherwise except as required by law.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         TSYS
                                                                                                                                 Financial Highlights
                                                                                                                                      (unaudited)
                                                                                                                         (in thousands, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       
                                                                                                                  Three Months Ended                                                                                   Nine Months Ended
                                                                                                                     September 30,                                                                                       September 30,
                                                                                         --------------------------------------------------------------------                               ----------------------------------------------------------------------
                                                                                                                                                      Percent                                                                                              Percent
                                                                                            2016                          2015                        Change                                   2016                           2015                         Change
                                                                                         ---------                      -------                      -------                                ---------                      ---------                      -------
                                                                                                                                                                                                                                                                   
Total revenues                                                                         $ 1,146,888                      707,890                         62.0 %                            $ 3,037,853                      2,062,698                         47.3 %
                                                                                                                                                                                                                                                                   
Cost of services                                                                           840,300                      456,465                         84.1                                2,166,731                      1,366,141                         58.6
Selling, general and administrative expenses                                               151,261                       88,321                         71.3                                  428,287                        280,355                         52.8
                                                                                         ---------                      -------                                                             ---------                      ---------
Total expenses*                                                                            991,561                      544,786                         82.0                                2,595,018                      1,646,496                         57.6
                                                                                         ---------                      -------                                                             ---------                      ---------
                                                                                                                                                                                                                                                                   
Operating income                                                                           155,327                      163,104                        (4.8)                                  442,835                        416,202                          6.4
                                                                                                                                                                                                                                                                   
Nonoperating expenses                                                                     (30,005)                      (8,564)                           nm                                 (82,506)                       (27,982)                           nm
                                                                                         ---------                      -------                                                             ---------                      ---------
                                                                                                                                                                                                                                                                   
Income before income taxes, noncontrolling interests
  and equity in income of equity investments                                               125,322                      154,540                       (18.9)                                  360,329                        388,220                        (7.2)
Income taxes                                                                                44,247                       37,825                         17.0                                  127,966                        119,204                          7.4
                                                                                         ---------                      -------                                                             ---------                      ---------
Income before noncontrolling interests and equity in income of                              81,075                      116,715                       (30.5)                                  232,363                        269,016                       (13.6)
equity investments
  Equity in income of equity investments, net of tax                                         6,366                        5,336                         19.3                                   19,234                         15,309                         25.6
                                                                                         ---------                      -------                                                             ---------                      ---------
Net income                                                                                  87,441                      122,051                       (28.4)                                  251,597                        284,325                       (11.5)
Net income attributable to noncontrolling interests                                        (2,089)                      (1,429)                       (46.2)                                  (5,909)                        (3,109)                       (90.1)
                                                                                         ---------                      -------                                                             ---------                      ---------
                                                                                                                                                                                                                                                                   
Net income attributable to TSYS common shareholders                                    $    85,352                      120,622                       (29.2) %                            $   245,688                        281,216                       (12.6) %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
Earnings per share (EPS):
  Basic EPS                                                                            $      0.46                         0.66                       (29.2) %                            $      1.34                           1.53                       (12.3) %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
  Diluted EPS                                                                          $      0.46                         0.65                       (29.0) %                            $      1.33                           1.52                       (12.1) %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
Weighted average shares outstanding:
  (includes participating securities)
  Basic                                                                                    183,830                      183,954                                                               183,601                        184,320
                                                                                         =========                      =======                                                             =========                      =========
  Diluted                                                                                  184,642                      185,281                                                               184,430                        185,534
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
Dividends declared per share                                                           $      0.10                         0.10                                                           $      0.30                           0.30
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                   
Non-GAAP measures:
--------------------------------------------------------------
  Net revenue                                                                          $   789,588                      636,386                         24.1 %                            $ 2,256,169                      1,854,254                         21.7 %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
  Adjusted EPS                                                                         $      0.71                         0.78                        (8.7) %                            $      2.11                           1.89                         11.5 %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
  Adjusted EBITDA                                                                      $   269,142                      238,898                         12.7 %                            $   774,003                        638,889                         21.1 %
                                                                                         =========                      =======                                                             =========                      =========
                                                                                                                                                                                                                                                                   
* Certain amounts in prior quarters in 2016 have been reclassed
between cost of services and selling, general and administrative
expenses.
** See reconciliation of non-GAAP measures.
nm = not meaningful
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     TSYS
                                                                                                                                                                                                                                     Segment Breakdown
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                     Three Months Ended September 30,                                                                                                                                                           Nine Months Ended September 30,                                                                 
                                                                                      ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                     Change                                                                                                                                                                                                        Change                          
                                                                                                                                                                                            ----------------------------------------------------------------------------                                                                                                                                                     ----------------------------------------------------------------------------
                                                                                         2016         2015          $          %                                                   2016          2015           $          %   
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ----- --------------------                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- -------------------- -------------------- ----- --------------------
Operating income (a)                                                                $   155,327                                           163,104                                            (7,777 )                                          (4.8 )                              %                               $   442,835                                             416,202                                            26,633                                             6.4                                %
Share-based compensation                                                                 13,069                                            11,295                                             1,774                                            15.7                                                                     33,792                                              31,468                                             2,324                                             7.4
TransFirst M&A expenses                                                                   1,830                                                 -                                             1,830                                              na                                                                     25,908                                                   -                                            25,908                                              na
Acquisition intangible amortization                                                      53,341      22,883      30,458                           nm                                                                    134,748        69,601      65,147                         93.6
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------                                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
   Adjusted operating income (b)                                                    $   223,567     197,282      26,285                         13.3                                %                               $   637,283       517,271     120,012                         23.2                                %
                                                                                      ========= ==================== ==================== ======= ==================== ==================== ======= ====================                                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Adjusted segment operating income:
   North America Services (c)                                                       $   113,425                                           113,946                                              (521 )                                          (0.5 )                              %                               $   350,955                                             324,902                                            26,053                                             8.0                                %
   International Services (d)                                                            15,524                                            18,370                                            (2,846 )                                         (15.5 )                                                                   41,564                                              38,706                                             2,858                                             7.4
   Merchant Services (e)                                                                 90,784                                            42,387                                            48,397                                              nm                                                                    219,056                                             117,192                                           101,864                                            86.9
   NetSpend (f)                                                                          40,856                                            37,315                                             3,541                                             9.5                                                                    125,538                                             109,224                                            16,314                                            14.9
Corporate admin and other                                                               (37,022 )                      (14,736 )                      (22,286 )                                            nm                                                                    (99,830 )                        (72,753 )                      (27,077 )                                         (37.2 )
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------                                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
Adjusted segment operating income                                                   $   223,567     197,282      26,285                         13.3                                %                               $   637,283       517,271     120,012                         23.2                                %
                                                                                      ========= ==================== ==================== ======= ==================== ==================== ======= ====================                                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total revenues (g)                                                                  $ 1,146,888                                           707,890                                           438,998                                            62.0                                %                               $ 3,037,853                                           2,062,698                                           975,155                                            47.3                                %
Less: reimbursable items, interchange and assessments expenses                          357,300      71,504     285,796                          nm                                                                     781,684       208,444     573,240                          nm
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------                                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
       Net revenue (h)                                                                  789,588                                           636,386                                           153,202                                            24.1                                                                  2,256,169                                           1,854,254                                           401,915                                            21.7
   Intersegment revenues                                                                  8,454       7,000       1,454                         20.8                                                                     29,498        25,098       4,400                         17.5
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------                                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
    Segment net revenue                                                             $   798,042     643,386     154,656                         24.0                                %                               $ 2,285,667     1,879,352     406,315                         21.6                                %
                                                                                      ========= ==================== ==================== ======= ==================== ==================== ======= ====================                                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Segment net revenue
   North America Services (i)                                                       $   300,754                                           293,571                                             7,183                                             2.4                                %                               $   901,563                                             846,989                                            54,574                                             6.4                                %
   International Services (j)                                                            79,445                                            86,446                                            (7,001 )                                          (8.1 )                                                                  236,570                                             244,033                                            (7,463 )                                          (3.1 )
   Merchant Services (k)                                                                262,494                                           123,721                                           138,773                                              nm                                                                    644,573                                             351,987                                           292,586                                            83.1
   NetSpend (l)                                                                         155,349     139,648      15,701                         11.2                                                                    502,961       436,343      66,618                         15.3
                                                                                      --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------                                                                                             --------- -------------------- -------------------- --------- -------------------- -------------------- ------- --------------------
        Segment net revenue                                                         $   798,042     643,386     154,656                         24.0                                %                               $ 2,285,667     1,879,352     406,315                         21.6                                %
                                                                                      ========= ==================== ==================== ======= ==================== ==================== ======= ====================                                                                                             ========= ==================== ==================== ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Operating margin (GAAP) (a)/(g)                                                            13.5 %                         23.0 %                                                                                                                                                                       14.6 %                           20.2 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Adjusted operating margin on net revenue (b)/(h)                                           28.3 %                         31.0 %                                                                                                                                                                       28.3 %                           27.9 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Adjusted segment operating margin on net revenue
North America Services(c)/(i)                                                              37.7 %                         38.8 %                                                                                                                                                                       38.9 %                           38.4 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
International Services (d)/(j)                                                             19.5 %                         21.3 %                                                                                                                                                                       17.6 %                           15.9 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
Merchant Services (e)/(k)                                                                  34.6 %                         34.3 %                                                                                                                                                                       34.0 %                           33.3 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
NetSpend (f)/(l)                                                                           26.3 %                         26.7 %                                                                                                                                                                       25.0 %                           25.0 %
                                                                                      ========= ==================== ==================== ======= ====================                                                                                                                                               ========= ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
nm = not meaningful
na = not applicable
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                          TSYS
                                                                                                                                                                                                                    Segment Breakdown
                                                                                                                                                                                                                       (unaudited)
                                                                                                                                                                                                                     (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                 
                                                                                                                                Three Months Ended September 30,                                                                                                                                                Nine Months Ended September 30,                                                                  
                                                                           --------------------------------------------------------------------------------------------------------------------------------------------------------------                        --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                           Change                                                                                                                                                                                              Change                            
                                                                                                                                       --------------------------------------------------------------------------------------------------                                                                                                                              --------------------------------------------------------------------------------
                                                                             2016       2015                    $                   %                                                             2016                            2015                              $                    %
                                                                           -------- -------------------- -------- -------------------- -------------------------------------------------- ----- --------------------                                             -------------------------------------------------- -------------------------------------------------- -------------------------------------------------- ---------
Depreciation and amortization:
   North America Services                                                $   27,540                        25,300                         2,240                                             8.9                                %                               $   82,464                                             72,831                                              9,633                                            13.2              %
   International Services                                                     7,050                         8,678                        (1,628 )                                         (18.8 )                                                                  23,394                                             26,084                                             (2,690 )                                         (10.3 )
   Merchant Services                                                          6,846                         4,670                         2,176                                            46.6                                                                    18,702                                             13,394                                              5,308                                            39.6
   NetSpend                                                                   3,241      2,632        609                         23.1                                                                     9,466        7,547        1,919                         25.4
                                                                           -------- -------------------- -------- -------------------- -------- --------------------                                                                                             -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
Segment depreciation and amortization                                        44,677                        41,280                         3,397                                             8.2                                                                   134,026                                            119,856                                             14,170                                            11.8
Acquisition intangible amortization                                          53,341                        22,883                        30,458                                              nm                                                                   134,748                                             69,601                                             65,147                                            93.6
Corporate admin and other                                                       898        336        562                           nm                                                                     2,694        1,762          932                         52.9
                                                                           -------- -------------------- -------- -------------------- -------- --------------------                                                                                             -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
     Total depreciation and amortization                                 $   98,916     64,499     34,417                         53.4                                %                               $  271,468      191,219       80,249                         42.0              %
                                                                           ======== ==================== ======== ==================== ======== ====================                                                                                             ======== ==================== ==================== ======== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Segment statistical data:
---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Transactions (in millions)
  North America Services:                                                   4,361.5                       4,156.7                         204.8                                             4.9                                %                                 12,657.7                                           11,509.6                                            1,148.1                                            10.0              %
  International Services:                                                     698.8      626.1       72.7                         11.6                                                                   1,975.7      1,812.0        163.7                          9.0
                                                                           -------- -------------------- -------- -------------------- -------- --------------------                                                                                             -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
  Total transactions                                                        5,060.3    4,782.8      277.5                          5.8                                %                                 14,633.4     13,321.6      1,311.8                          9.8              %
                                                                           ======== ==================== ======== ==================== ======== ====================                                                                                             ======== ==================== ==================== ======== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Accounts on file (AOF) (in millions)
  North America Services:                                                                                                                                                                                                                                           652.5                                              685.5                                              (33.0 )                                          (4.8 )            %
  International Services:                                                                                                                                                                                                                                            86.3         74.9         11.4                         15.2
                                                                                                                                                                                                                                                                 -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
  Total AOF                                                                                                                                                                                                                                                         738.8        760.4        (21.6 )                                          (2.8 )            %
                                                                                                                                                                                                                                                                 ======== ==================== ==================== ======== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Traditional accounts on file (AOF) (in millions)
  North America Services:                                                                                                                                                                                                                                           444.6                                              404.6                                               40.0                                             9.9              %
  International Services:                                                                                                                                                                                                                                            66.6         63.3          3.3                          5.2
                                                                                                                                                                                                                                                                 -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
  Total Traditional AOF                                                                                                                                                                                                                                             511.2        467.9         43.3                          9.2              %
                                                                                                                                                                                                                                                                 ======== ==================== ==================== ======== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Merchant Services
  Point-of-sale transactions (in millions)                                  1,177.1                       1,117.3                          59.8                                             5.4                                %                                  3,427.6                                            3,191.3                                              236.3                                             7.4              %
  Dollar sales volume (in millions)                                      $ 28,680.7                      12,055.7                      16,625.0                                              nm                                %                               $ 69,024.9                                           35,671.5                                           33,353.4                                            93.5              %
                                                                                                                                                                                                                                                                                                                                                                                                                                    
NetSpend
  Gross dollar volume (in millions)                                      $  6,367.0                       5,391.2                         975.8                                            18.1                                %                               $ 22,143.3                                           18,582.8                                            3,560.5                                            19.2              %
                                                                                                                                                                                                                                                                                                                                                                                                                                    
  Direct deposit 90-day active cards (in thousands)                                                                                                                                                                                                               2,079.8                                            1,796.0                                              283.8                                            15.8              %
  90-day active cards (in thousands)                                                                                                                                                                                                                              4,162.7                                            3,643.4                                              519.3                                            14.3              %
  % of 90-day active cards with direct deposit                                                                                                                                                                                                                       50.0 %                                             49.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                    
 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    TSYS
                                                                           Condensed Balance Sheet
                                                                                 (unaudited)
                                                                               (in thousands)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              
                                                                                           September 30, 2016                                             December 31, 2015
                                                                                           ------------------                                           --------------------
Assets
Current assets:
     Cash and cash equivalents                                                           $            446,883                                                        389,328
     Accounts receivable, net                                                                         413,867                                                        314,705
     Other current assets                                                                             124,118                                                        154,199
                                                                                           ------------------                                           --------------------
          Total current assets                                                                        984,868                                                        858,232
Goodwill                                                                                            3,254,422                                                      1,545,424
Other intangible assets, net                                                                          954,821                                                        328,320
Property, equipment and software, net                                                                 722,749                                                        694,968
Other long term assets                                                                                458,318                                                        450,951
                                                                                           ------------------                                           --------------------
          Total assets                                                                   $          6,375,178                                                      3,877,895
                                                                                           ==================                                           ====================
                                                                                                                                                         
 Liabilities
 Current liabilities:
      Accounts payable                                                                   $             36,659                                                         52,213
      Notes payable and capital leases                                                                 43,244                                                         53,546
      Other current liabilities                                                                       289,572                                                        233,173
                                                                                           ------------------                                           --------------------
          Total current liabilities                                                                   369,475                                                        338,932
 Bonds payable, notes payable and capital leases, excluding current                                 3,425,147                                                      1,377,541
 portion
 Deferred tax liability                                                                               398,083                                                        192,445
 Other long-term liabilities                                                                           91,751                                                         96,885
                                                                                           ------------------                                           --------------------
          Total liabilities                                                                         4,284,456                                                      2,005,803
                                                                                           ------------------                                           --------------------
 Redeemable noncontrolling interest                                                                    25,053                                                         23,410
                                                                                           ------------------                                           --------------------
 Equity
 Shareholders’ equity                                                                               2,065,669                                                      1,843,018
 Noncontrolling interests in consolidated subsidiaries                                                      -                                                          5,664
                                                                                           ------------------                                           --------------------
          Total equity                                                                              2,065,669                                                      1,848,682
                                                                                           ------------------                                           --------------------
          Total liabilities and equity                                                   $          6,375,178                                                      3,877,895
                                                                                           ==================                                           ====================
                                                                                                                                                         
                                                                                                                                                         
                                                                                                                                                         
Note: TSYS adopted Accounting Standards Update (ASU) 2015-03
"Interest - Imputation of Interest (Subtopic 835-30), Simplifying
the Presentation of Debt Issuance Cost" on January 1, 2016. This ASU
requires TSYS to present debt issuance costs in the balance sheet as
a direct deduction from the carrying amount of the corresponding
debt liability, consistent with debt discounts. All prior periods
presented have been restated for this ASU.
 
TSYS also adopted ASU 2015-17 "Income Taxes (Topic 740), Balance
Sheet Classification of Deferred Taxes" on January 1, 2016. This ASU
requires the classification of all deferred tax assets and
liabilities as noncurrent on the balance sheet instead of separating
deferred taxes into current and noncurrent amounts. All prior
periods presented have been restated for this ASU.
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               TSYS
                                                                                   Selected Cash Flow Highlights
                                                                                            (unaudited)
                                                                                          (in thousands)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        
                                                                                                                              Nine Months Ended September 30,
                                                                                        ----------------------------------------------------------------------------------------------------------
                                                                                                      2016                                                                      2015
                                                                                        --------------------------------                                          --------------------------------
Cash flows from operating activities:
   Net income                                                                         $    251,597                                                                   284,325
   Adjustments to reconcile net income to net cash provided by
   operating activities:
       Equity in income of equity investments                                              (19,234 )                                                                 (15,309 )
       Dividends received from equity investments                                           15,246                                                                    12,092
       Depreciation and amortization                                                       271,468                                                                   191,219
       Amortization of debt issuance costs                                                  12,499                                                                     1,378
       Share-based compensation                                                             33,792                                                                    31,468
       Deferred income tax expense(benefit)                                                  4,110                                                                   (25,960 )
       Other noncash adjustments                                                            35,508                                                                    29,039
       Changes in operating assets and liabilities                                         (54,026 )                                                                 (47,698 )
                                                                                        ---------- --------------------                                           ---------- --------------------
           Net cash provided by operating activities                                       550,960                                                                   460,554
                                                                                                                                                                   
           Net cash used in investing activities                                        (2,457,138 )                                                                (138,618 )
                                                                                                                                                                   
           Net cash provided by (used in) financing activities                           1,969,628                                                                  (158,429 )
                                                                                                                                                                   
Cash and cash equivalents:
 Effect of exchange rate changes on cash and cash equivalents                               (5,895 )                                                                  (4,840 )
                                                                                        ---------- --------------------                                           ---------- --------------------
 Net increase in cash and cash equivalents                                                  57,555                                                                   158,667
 Cash and cash equivalents at beginning of period                                          389,328                                                289,183  
                                                                                        ---------- --------------------                                           ---------- --------------------
 Cash and cash equivalents at end of period                                           $    446,883                                                447,850  
                                                                                        ========== ====================                                           ========== ====================
                                                                                                                                                                   
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            TSYS
                                                                                                                  Supplemental Information
                                                                                                                         (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                          
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                        
Other
AOF:                                                                                                                                                                               Total Accounts on File
                                                                                                                                 ---------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                                  At                              At                          %
                                                                                                                                         September 2016                                     September 2015                                    Change
                                                                                                                                 ----------------------------  -------------------- ----------------------------  -------------------- -------------------
Consumer                                                                                                                            433.5                                              399.0                                                  8.6
Commercial                                                                                                                           48.0                                               44.1                                                  8.9
Other                                                                                                                                29.7         24.8                              19.5
                                                                                                                                 -------- -------------------- -------------------- -------- --------------------
   Traditional AOF                                                                                                                  511.2                                              467.9                                                  9.2
Prepaid*/Stored Value                                                                                                                58.9                                              133.8                                                (56.0 )
Government Services                                                                                                                  85.7                                               78.7                                                  9.0
Commercial Card Single Use                                                                                                           83.0         80.0                               3.8
                                                                                                                                 -------- -------------------- -------------------- -------- --------------------
  Total AOF                                                                                                                         738.8        760.4                              (2.8 )
                                                                                                                                 ======== ==================== ==================== ======== ====================
      * Prepaid does not include NetSpend accounts
                                                                                                                                                                                                                                        
Growth in Accounts on File (in millions):
--------------------------------------------------
                                                                                                                                        September 2015 to                                  September 2014 to
                                                                                                                                         September 2016                                     September 2015
                                                                                                                                 ----------------------------                       ----------------------------
Beginning balance                                                                                                                   760.4                                              605.5
Change in accounts on file due to:
                                                   Internal growth of existing clients                                               53.8                                               41.0
                                                                           New clients                                               31.6                                              153.7
                                                                          Purges/Sales                                              (16.7 )                                            (38.3 )
                                                                         Deconversions                                              (90.3 )                          (1.5 )
                                                                                                                                 -------- -------------------- -------------------- -------- --------------------
Ending balance                                                                                                                      738.8        760.4  
                                                                                                                                 ======== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                        
 
                     Reconciliation of GAAP to Non-GAAP Financial Measures
 
Non-GAAP Measures
 
The schedules below provide a reconciliation of revenues and
operating results on a constant currency basis to reported revenues
and operating income. This non-GAAP measure presents third quarter
2016 financial results using the previous year’s foreign currency
exchange rates. On a constant currency basis, TSYS’ total revenues
grew 48.5% as compared to a reported GAAP increase of 47.3%.
 
The schedules below also provide a reconciliation of EPS to adjusted
EPS.
 
The schedules below also provide a reconciliation of net income to
EBITDA and adjusted EBITDA.
 
The schedules below also provide a reconciliation of operating
margin to adjusted operating margin excluding severance.
 
The schedules below also provide a reconciliation of cash flows from
operating activities and capital expenditures to free cash flow.
 
The schedules below also provide a reconciliation of 2016 guidance
of total revenues to net revenue and EPS 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.
 
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 measures of
other companies due to potential inconsistencies in the method of
calculation.
 
TSYS believes that its provision of non-GAAP financial measures
provides investors with important 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 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 September 30,                                                                                                 Nine Months Ended September 30,                                         
                                                                                                            ------------------------------------------------------------------------------------------------------------- --------------------                      -------------------- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                              Percent                                                                                                                                                                                             Percent
                                                                                                                         2016                  2015     Change                                         2016                     2015      Change  
                                                                                                            --------------------------------------------------- ------- -------------------- ------- -------------------- --------------------                      -------------------- --------------------------------------------------- -------------------- --------- -------------------- ------- --------------------
Consolidated
Constant currency (1)                                                                                     $ 1,161,181                                           707,890                         64.0                      %                                                            $ 3,063,788                                                                2,062,698                         48.5                      %
Foreign currency impact (2)                                                                                   (14,293 )                            -                                                                                                                    (25,935 )                                -
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Total revenues                                                                                            $ 1,146,888     707,890                         62.0                      %                                                            $ 3,037,853       2,062,698                         47.3                      %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
Constant currency (1)                                                                                     $   802,958                                           636,386                         26.2                      %                                                            $ 2,280,389                                                                1,854,254                         23.0                      %
Foreign currency impact (2)                                                                                   (13,370 )                            -                                                                                                                    (24,220 )                                -
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Net revenue                                                                                               $   789,588     636,386                         24.1                      %                                                            $ 2,256,169       1,854,254                         21.7                      %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
Constant currency (1)                                                                                     $   161,567                                           163,104                         (0.9 )                    %                                                            $   452,196                                                                  416,202                          8.6                      %
Foreign currency impact (2)                                                                                    (6,240 )                            -                                                                                                                     (9,361 )                                -
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Operating income                                                                                          $   155,327     163,104                         (4.8 )                    %                                                            $   442,835         416,202                          6.4                      %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
International Services
Constant currency (1)                                                                                     $    99,171                                            92,177                          7.6                      %                                                            $   279,332                                                                  261,597                          6.8                      %
Foreign currency impact (2)                                                                                   (14,338 )                            -                                                                                                                    (25,917 )                                -
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Total revenues                                                                                            $    84,833      92,177                         (8.0 )                    %                                                            $   253,415         261,597                         (3.1 )                    %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
Constant currency (1)                                                                                     $    92,861                                            86,446                          7.4                      %                                                            $   260,772                                                                  244,033                          6.9                      %
Foreign currency impact (2)                                                                                   (13,416 )                            -                                                                                                                    (24,202 )                                -
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Net revenue                                                                                               $    79,445      86,446                         (8.1 )                    %                                                            $   236,570         244,033                         (3.1 )                    %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
(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.
                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                    Net Revenue
                                                                                                                                                                                                                    (unaudited)
                                                                                                                                                                                                                  (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                        Three Months Ended September 30,                                                                                                                                       Nine Months Ended September 30,                                         
                                                                                                            -------------------------------------------------------------------------------------------------------------                                                                ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                              Percent                                                                                                                                                                                             Percent
                                                                                                                         2016                  2015     Change                                                                               2016                     2015      Change  
                                                                                                            --------------------------------------------------- ------- -------------------- ------- --------------------                                                                --------------------------------------------------- -------------------- --------- -------------------- ------- --------------------
Total revenues                                                                                            $ 1,146,888                                           707,890                         62.0                      %                                                            $ 3,037,853                                                                2,062,698                         47.3                      %
Less: reimbursable items, interchange and assessments expenses                                                357,300      71,504                           nm                                                                                       781,684         208,444                           nm
                                                                                                            --------- -------------------- -------------------- -------                                                                                                                  --------- -------------------- -------------------- -------------------- ---------
Net revenue                                                                                               $   789,588     636,386                         24.1                      %                                                            $ 2,256,169       1,854,254                         21.7                      %
                                                                                                            ========= ==================== ==================== =======                                                                                                                  ========= ==================== ==================== ==================== =========
                                                                                                                                                                                                                                                                                                                                                                                                                               
nm = not meaningful
                                                                                                                                                                                                                                                                                                                                                                                                                               
 
                                                                                                                                                                          Reconciliation of GAAP to Non-GAAP
                                                                                                                                                                                                                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                              Adjusted Earnings per Share
                                                                                                                                                                                      (unaudited)
                                                                                                                                                                         (in thousands, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     
                                                                                                           Three Months Ended September 30,                                                                                                          Nine Months Ended September 30,                                       
                                                                     --------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                          Percent                                                                                                                                                     Percent
                                                                                 2016                           2015                Change                                          2016                           2015                Change  
                                                                     ------------------------------------------------- ------------------------------------------------- ------- --------------------                            ------------------------------------------------- ------------------------------------------------- ------- --------------------
Income attributable to TSYS common shareholders                    $  85,352                                           120,622                                             (29.2 )                    %                        $ 245,688                                           281,216                                             (12.6 )                    %
Adjust for amounts attributable to TSYS common shareholders:
   Add: Acquisition intangible amortization                        $  53,065                                            22,607                                                nm                                               $ 133,920                                            68,774                                              94.7
   Add: Share-based compensation                                      13,059                                            11,291                                              15.7                                                  33,766                                            31,459                                               7.3
   Add: TransFirst M&A expenses*                                       1,830                                                 -                                                na                                                  35,689                                                 -                                                na
   Less: Tax impact of adjustments**                                 (22,633 )                      (11,250 )                                              nm                                                 (62,264 )                      (33,267 )                                           (87.2 )
                                                                     ------- -------------------- -------------------- ------- --------------------                                                                              ------- -------------------- -------------------- ------- --------------------
Adjusted earnings                                                  $ 130,673     143,270                           (8.8 )                    %                        $ 386,799     348,182                           11.1                      %
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
   Add: Severance impact                                               8,749                                                 -                                                na                                                   8,749                                                 -                                                na
   Add: Severance impact - Share-based compensation                      147                                                 -                                                na                                                     147                                                 -                                                na
   Add: Currency impact                                                6,320                                                 -                                                na                                                   9,564                                                 -                                                na
   Less: Federal & state R&D tax credits and related expenses              -                                           (15,084 )                                              nm                                                       -                                           (15,084 )                                              nm
   Less: Tax impact of adjustments                                    (4,671 )                       (8,473 )                                              nm                                                  (5,686 )                       (8,473 )                                              nm
                                                                     ------- -------------------- -------------------- ------- --------------------                                                                              ------- -------------------- -------------------- ------- --------------------
Adjusted earnings excluding impact of severance, currency and tax  $ 141,218     119,713                           18.0                      %                        $ 399,573     324,625                           23.1                      %
credits
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                   
Basic EPS - Income attributable to TSYS common shareholders
As reported (GAAP)                                                 $    0.46        0.66                          (29.2 )                    %                        $    1.34        1.53                          (12.3 )                    %
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                   
Adjusted EPS                                                       $    0.71        0.78                           (8.7 )                    %                        $    2.11        1.89                           11.5                      %
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
   Add/Less: Impact of severance, currency and tax credits              0.06       (0.13 )                                              nm                                                    0.07       (0.13 )                                              nm
                                                                     ------- -------------------- -------------------- ------- --------------------                                                                              ------- -------------------- -------------------- ------- --------------------
Adjusted EPS without impact of severance, currency and tax credits $    0.77        0.65                           18.1                      %                        $    2.18        1.76                           23.6                      %
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                   
Weighted average shares outstanding                                  183,830     183,954                                                                                183,601     184,320  
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                   
* Costs associated with the TransFirst acquisition and integration
that are included in selling, general and administrative expenses
and nonoperating expenses.
** Certain of these merger and acquisition costs are nondeductible
for income tax purposes. Income tax impact includes a discrete item
as a result of the acquisition.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                    Adjusted EBITDA
                                                                                                                                                                                      (unaudited)
                                                                                                                                                                                    (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                           Three Months Ended September 30,                                                                                                          Nine Months Ended September 30,                                       
                                                                     --------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                          Percent                                                                                                                                                     Percent
                                                                                 2016                           2015                Change                                          2016                           2015                Change  
                                                                     ------------------------------------------------- ------------------------------------------------- ------- --------------------                            ------------------------------------------------- ------------------------------------------------- ------- --------------------
Net income                                                         $  87,441                                           122,051                                             (28.4 )                    %                        $ 251,597                                           284,325                                             (11.5 )                    %
 Adjust for:
   Less: Equity in income of equity investments                       (6,366 )                                          (5,336 )                                           (19.3 )                                               (19,234 )                                         (15,309 )                                           (25.6 )
   Add: Income taxes                                                  44,247                                            37,825                                              17.0                                                 127,966                                           119,204                                               7.4
   Add: Nonoperating expense                                          30,005                                             8,564                                                nm                                                  82,506                                            27,982                                                nm
   Add: Depreciation and amortization                                 98,916      64,499                           53.4                                                 271,468     191,219                           42.0
                                                                     ------- -------------------- -------------------- ------- --------------------                                                                              ------- -------------------- -------------------- ------- --------------------
 EBITDA                                                            $ 254,243                                           227,603                                              11.7                      %                        $ 714,303                                           607,421                                              17.6                      %
 Adjust for:
   Add: Share-based compensation                                      13,069                                            11,295                                              15.7                                                  33,792                                            31,468                                               7.4
   Add: TransFirst M&A expenses*                                       1,830           -                             na                                                  25,908           -                             na
                                                                     ------- -------------------- -------------------- ------- --------------------                                                                              ------- -------------------- -------------------- ------- --------------------
 Adjusted EBITDA                                                   $ 269,142     238,898                           12.7                      %                        $ 774,003     638,889                           21.1                      %
                                                                     ======= ==================== ==================== ======= ====================                                                                              ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                   
* Costs associated with the TransFirst acquisition and integration
that are included in selling, general and administrative expenses.
nm = not meaningful
na = not applicable
                                                                                                                                                                                                                                                                                                                                                                   
 
                                                                                                                                                 Reconciliation of GAAP to Non-GAAP
                                                                                                                                                                                                    
                                                                                                                                                                TSYS
                                                                                                                                         Operating Margins Excluding the Impact of Severance
                                                                                                                                                             (unaudited)
                                                                                                                                                           (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                     
                                                                                               Three Months Ended September 30,                                                                                                                       Nine Months Ended September 30,
                                                 -----------------------------------------------------------------------------------------------------------------------------                        ------------------------------------------------------------------------------------------------------------------------------
                                                           As reported                                     Severance                                      Adjusted                                              As reported                                     Severance                                       Adjusted
                                                              2016                                 2016                                                   2016                                  2016
                                                 --------------------------------------------------- -------------------- -------------------- -------------------------------                        --------------------------------------------------- -------------------- -------------------- --------------------------------
Operating income (a)                           $   155,327                                                          8,749                        164,076                                            $   442,835                                                          8,749                         451,584
Share-based compensation                            13,069                                                            147                         13,216                                                 33,792                                                            147                          33,939
TransFirst M&A expenses                              1,830                                                              -                          1,830                                                 25,908                                                              -                          25,908
Acquisition intangible amortization                 53,341                                           -                         53,341                             134,748                                           -                         134,748  
                                                 --------- --------------------                      --------------------                      --------- --------------------                         --------- --------------------                      --------------------                      ---------- --------------------
Adjusted segment operating income (b)          $   223,567                    8,896     232,463                         $   637,283                    8,896      646,179  
                                                 ========= ==================== ==================== ==================== ==================== ========= ====================                         ========= ==================== ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                     
Adjusted segment operating income:
   North America Services (c)                  $   113,425                                                          6,103                        119,528                                            $   350,955                                                          6,103                         357,058
   International Services (d)                       15,524                                                          1,882                         17,406                                                 41,564                                                          1,882                          43,446
   Merchant Services (e)                            90,784                                                             81                         90,865                                                219,056                                                             81                         219,137
   NetSpend (f)                                     40,856                                                            182                         41,038                                                125,538                                                            182                         125,720
Corporate admin and other                          (37,022 )                                       648     (36,374 )                                              (99,830 )                                       648      (99,182 )
                                                 --------- -------------------- -------------------- -------------------- -------------------- --------- --------------------                         --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
Adjusted segment operating income (b)          $   223,567                    8,896     232,463                         $   637,283                    8,896      646,179  
                                                 ========= ==================== ==================== ==================== ==================== ========= ====================                         ========= ==================== ==================== ==================== ==================== ========== ====================
                                                                                                                                                                                                                                                                                                     
Total revenues (g)                             $ 1,146,888                                                                                     1,146,888                                            $ 3,037,853                                                                                      3,037,853
Less: reimbursable items, interchange and
assessments expenses                               357,300                                                                    357,300                             781,684                                                                     781,684  
                                                 --------- --------------------                                                                --------- --------------------                         --------- --------------------                                                                ---------- --------------------
Net revenue (h)                                $   789,588                                                                    789,588                         $ 2,256,169                                                                   2,256,169  
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                     
Segment net revenue
   North America Services (i)                  $   300,754                                                                                       300,754                                            $   901,563                                                                                        901,563
   International Services (j)                       79,445                                                                                        79,445                                                236,570                                                                                        236,570
   Merchant Services (k)                           262,494                                                                                       262,494                                                644,573                                                                                        644,573
   NetSpend (l)                                    155,349                                                                                       155,349                                                502,961                                                                                        502,961
   Intersegment revenues                            (8,454 )                                                                                      (8,454 )                                              (29,498 )                                                                                      (29,498 )
                                                 --------- --------------------                                                                --------- --------------------                         --------- --------------------                                                                ---------- --------------------
Net revenue (h)                                $   789,588                                                                    789,588                         $ 2,256,169                                                                   2,256,169  
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                     
Operating margin (GAAP) (a)/(g)                       13.5 %                                                                                        14.3 %                                                 14.6 %                                                                                         14.9 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                     
Adjusted operating margin on net revenue (b)/(h)      28.3 %                                                                                        29.4 %                                                 28.3 %                                                                                         28.6 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                     
Adjusted segment operating margin on net revenue
North America Services(c)/(i)                         37.7 %                                                                                        39.7 %                                                 38.9 %                                                                                         39.6 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
International Services (d)/(j)                        19.5 %                                                                                        21.9 %                                                 17.6 %                                                                                         18.4 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
Merchant Services (e)/(k)                             34.6 %                                                                                        34.6 %                                                 34.0 %                                                                                         34.0 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
NetSpend (f)/(l)                                      26.3 %                                                                                        26.4 %                                                 25.0 %                                                                                         25.0 %
                                                 ========= ====================                                                                ========= ====================                         ========= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                             
                                                                                                                                        Reconciliation of GAAP to Non-GAAP
   
-------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  Free Cash Flow
                                                                                                                                                    (unaudited)
                                                                                                                                                  (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Nine Months Ended
Free cash flow:                                                                                                           September 30,
                                                                            --------------------------------------------------------------------------------------------------------
                                                                               2016              2015
                                                                            --------- -------------------- -------------------- -------------------- -------------------- ---------
                                                                                                                                                                                                                                                                                              
                     Net cash provided by operating activities            $   550,960                                                                                       460,554
                     Capital expenditures                                   (107,335)                                                                                     (136,183)
                                                                            ---------                                                                                     ---------
                     Free cash flow                                       $   443,625                                                                                       324,371
                                                                            =========                                                                                     =========
                                                                                                                                                                                                                                                                                              
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 Guidance Summary
                                                                                                                                                    (unaudited)
                                                                                                                                       (in thousands, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                              
Revenue:                                                                                                                      2016                                                                                                                       % Change
                                                                            --------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                     Total revenues (GAAP)                                $     4,150                               to                                                  $     4,170                                       49%                               to                                                50%
                                                                                                                                                                                                                                                                                              
                     Less: reimbursable items, interchange and
                     assessments expenses                                       1,120            to                  1,125                               
                                                                            --------- -------------------- -------------------- -------------------- -------------------- ---------                      -------------------- -------------------- -------------------- -------------------- --------------------
                     Net revenue (non-GAAP)                               $     3,030                               to                                                  $     3,045                                       21%                               to                                                22%
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                              
Earnings per share (EPS)
                                                                                                                                                                                                                                                                                              
                     Basic EPS (GAAP)                                     $      1.77                               to                                                  $      1.83                                     (10%)                               to                                               (7%)
                                                                                                                                                                                                                                                                                              
                     Acquisition intangible amortization, share-based
                     compensation and TransFirst M&A expenses, less
                     the tax impact of adjustments                               1.01            to                   1.02                               
                                                                            --------- -------------------- -------------------- -------------------- -------------------- ---------                      -------------------- -------------------- -------------------- -------------------- --------------------
                     Adjusted EPS attributable to TSYS common             $      2.78                               to                                                  $      2.85                                       13%                               to                                                16%
                     shareholders from continuing operations* (non-GAAP)
                                                                                                                                                                                                                                                                                              
                     * Average basic weighted shares                                                                      183.7
                                                                                                                                                                                                                                                                                              

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161025006732r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006732/en/

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

TSYS Media Relations 
Cyle Mims, +1-706-644-3110 
cylemims@tsys.com 
or 
TSYS Investor Relations 
Shawn Roberts, +1-706-644-6081 
shawnroberts@tsys.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.