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 TSYS Reports First Quarter Earnings
   Tuesday, April 25, 2017 4:15:01 PM ET

TSYS (TSS ) today reported results for the first quarter of 2017.

"We are extremely pleased to report an outstanding beginning to 2017 with across the board high double digit growth in our consolidated revenues, income and earnings per share in the first quarter. We continue to execute on our strategy of diversification and growth of our businesses while maintaining our leadership in technology, product innovation and service to our customers," said M. Troy Woods, chairman and chief executive officer of TSYS.

Highlights for the first quarter of 2017:

-- Total revenues were $1.2 billion, an increase of 60.2% over last year’s $739.4 million.

-- Net revenue (non-GAAP), which excludes reimbursable items, interchange and assessment expenses, was $832.9 million, an increase of 24.0% over last year’s $671.6 million.

-- Net income attributable to TSYS common shareholders was $105.9 million, an increase of 16.8% over last year’s $90.6 million. Diluted earnings per share were $0.57, an increase of 16.1% over last year’s $0.49.

-- Adjusted earnings (non-GAAP) were $152.3 million, an increase of 26.1% over last year’s $120.7 million. Adjusted diluted earnings per share (non-GAAP) were $0.82, an increase of 25.4% over last year’s $0.66.

-- Adjusted EBITDA (non-GAAP) was $287.2 million, an increase of 24.4% over last year’s $230.8 million.

Increasing 2017 Outlook

"As a result of our strong first quarter performance and the six-month delay in the effective date of the CFPB’s rule governing prepaid accounts, we are increasing our revenue and EPS guidance for 2017. We are raising our total revenue and net revenue guidance by $20 million as a result of the rule’s delay. We are also raising our EPS guidance by $0.11 per share," said Woods.

The 2017 revised guidance is below.

                                                                                                       
                                                                                                                            2017 Revised                                                    
                                                                                                                          Financial Outlook                                                                                             Percent
                                                                                                                                Range                                                                                                   Change
                                                                                                        ------------------------------------------------     -------------------- -------------------- --------------------------------------------------------------------
                                                                                                                                                                                                        
(in millions, except per share amounts)                                                                                                                                                          
Revenue:
Total revenues (GAAP)                                                                                       $4,770            to                      $4,870                                            14%                       to                                        17%
Net revenue (non-GAAP)                                                                                      $3,295            to                      $3,395                                             8%                       to                                        12%
                                                                                                                                                                                                                                                            
Earnings per share:
Diluted EPS (GAAP)                                                                                           $2.25            to                       $2.32                                            30%                       to                                        34%
Adjusted diluted EPS attributable to TSYS common shareholders                                                $3.16            to                       $3.26                                            13%                       to                                        17%
(non-GAAP)
Weighted average diluted shares                                                                            185
                                                                                                                                                                                                                                                            

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, April 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 diluted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures is included on pages 11 to 14 in the financial schedules of this release.

About TSYS

TSYS(R) (TSS ) is a leading global payments provider, offering seamless, secure and innovative solutions across the payments spectrum -- from issuer processing and merchant acquiring to prepaid program management. 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 headquarters are located in Columbus, Ga., U.S.A., with approximately 11,500 team members and local offices spread across 13 countries. TSYS generated revenue of $4.2 billion in 2016, while processing more than 25.5 billion transactions. We are a member of The Civic 50 and were named one of the 2017 World’s Most Ethical Companies by Ethisphere magazine. TSYS is a member of the S&P 500 and routinely posts all important information on its website. For more, visit tsys.com.

Forward-Looking Statements

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as "expect," "anticipate," "intend," "believe," "should," "plan," "potential," "will," "could," and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ earnings guidance for 2017 total revenues, net revenue, diluted EPS and adjusted diluted 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 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 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
                                                                                                                                                                                   March 31,
                                                                                                             ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                         Percent
                                                                                                                           2017                                                 2016                                                     Change
                                                                                                             --------------------------------                     --------------------------------                     ------------------------------------------
                                                                                                                                                                                                                                                                  
Total revenues                                                                                             $  1,184,725                                              739,378                                                           60.2                      %
                                                                                                                                                                                                                                                                  
Cost of services*                                                                                               861,856                                              484,507                                                           77.9
Selling, general and administrative expenses*                                                                   155,686                           103,184                                        50.9
                                                                                                             ---------- --------------------                      ---------- --------------------
Total expenses                                                                                                1,017,542                           587,691                                        73.1
                                                                                                             ---------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                  
Operating income                                                                                                167,183                                              151,687                                                           10.2
                                                                                                                                                                                                                                                                  
Nonoperating expenses*                                                                                          (29,903 )                                            (22,098 )                                                        (35.3 )
                                                                                                             ---------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                  
Income before income taxes, noncontrolling interests and equity in                                              137,280                                              129,589                                                            5.9
income of equity investments
Income taxes                                                                                                     43,082                            43,429                                        (0.8 )
                                                                                                             ---------- --------------------                      ---------- --------------------
Income before noncontrolling interests and equity in income of                                                   94,198                                               86,160                                                            9.3
equity investments
   Equity in income of equity investments, net of tax*                                                           12,909                             6,248                                          nm
                                                                                                             ---------- --------------------                      ---------- --------------------
Net income                                                                                                      107,107                                               92,408                                                           15.9
Net income attributable to noncontrolling interests                                                              (1,239 )                                             (1,780 )                                                         30.4
                                                                                                             ---------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                  
Net income attributable to TSYS common shareholders                                                        $    105,868                            90,628                                        16.8                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
Earnings per share (EPS):
   Basic EPS                                                                                               $       0.58                              0.49                                        16.4                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
   Diluted EPS                                                                                             $       0.57                              0.49                                        16.1                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
Weighted average shares outstanding:
 (includes participating securities)
   Basic                                                                                                        183,880                           183,256  
                                                                                                             ========== ====================                      ========== ====================
   Diluted                                                                                                      184,938                           183,886  
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
Dividends declared per share                                                                               $       0.10                              0.10  
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
Non-GAAP measures:**
------------------------------------------------------------------
   Net revenue                                                                                             $    832,892                           671,644                                        24.0                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
   Adjusted EBITDA                                                                                         $    287,237                           230,829                                        24.4                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
   Adjusted earnings                                                                                       $    152,265                           120,710                                        26.1                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
   Adjusted diluted EPS                                                                                    $       0.82                              0.66                                        25.4                      %
                                                                                                             ========== ====================                      ========== ====================
                                                                                                                                                                                                                                                                  
* Certain prior year amounts have been reclassified between
nonoperating expenses and equity in income of equity investments,
net of tax and 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 March 31,
                                                                                                           ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                          Change
                                                                                                                                                                                                                 ----------------------------------------------------------------------------------------
                                                                                                                        2017                            2016                             $                        %
                                                                                                           --------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -----------------
Operating income: (a)                                                               $                        167,183                                           151,687                                            15,496                                            10.2                      %
Share-based compensation                                                                                       9,047                                             8,158                                               889                                            10.9
TransFirst M&A expenses                                                                                        4,868                                             3,401                                             1,467                                            43.1
Litigation, claims, judgments or settlements                                                                   1,961                                                 -                                             1,961                                              na
Acquisition intangible amortization                                                                           55,167      22,921      32,246                           nm
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
   Adjusted operating income (b)                                                    $                        238,226     186,167      52,059                         28.0                      %
                                                                                                           ========= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Adjusted segment operating income:
   Issuer Solutions (c)                                                             $                        133,873                                           135,077                                            (1,204 )                                          (0.9 )                    %
   Merchant Solutions (d)                                                                                     91,279                                            38,357                                            52,922                                              nm
   Netspend (e)                                                                                               48,648                                            42,201                                             6,447                                            15.3
Corporate admin and other                                                                                    (35,574 )                      (29,468 )                       (6,106 )                                         (20.7 )
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Adjusted segment operating income                                                   $                        238,226     186,167      52,059                         28.0                      %
                                                                                                           ========= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Total revenues: (f)                                                                 $                      1,184,725                                           739,378                                           445,347                                            60.2                      %
Less: reimbursable items, interchange and assessments expenses                                               351,833      67,734     284,099                           nm
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
   Net revenue (g)                                                                                           832,892                                           671,644                                           161,248                                            24.0
   Intersegment revenues                                                                                      12,389      11,969         420                          3.5
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Segment net revenue                                                             $                        845,281     683,613     161,668                         23.6                      %
                                                                                                           ========= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Segment net revenue:
   Issuer Solutions (h)                                                             $                        387,255                                           378,009                                             9,246                                             2.4                      %
   Merchant Solutions (i)                                                                                    260,561                                           120,612                                           139,949                                              nm
   Netspend (j)                                                                                              197,465     184,992      12,473                          6.7
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
        Segment net revenue                                                         $                        845,281     683,613     161,668                         23.6                      %
                                                                                                           ========= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Operating margin (GAAP): (a)/(f)                                                                               14.11 %                        20.52 %
                                                                                                           ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Adjusted operating margin on net revenue: (b)/(g)                                                              28.60 %                        27.72 %
                                                                                                           ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Adjusted segment operating margin on net revenue:
   Issuer Solutions (c)/(h)                                                                                    34.57 %                        35.73 %
                                                                                                           ========= ==================== ==================== ======= ====================
   Merchant Solutions (d)/(i)                                                                                  35.03 %                        31.80 %
                                                                                                           ========= ==================== ==================== ======= ====================
   Netspend (e)/(j)                                                                                            24.64 %                        22.81 %
                                                                                                           ========= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                     
Segment external net revenue:
   Issuer Solutions                                                                 $                        375,529                                           366,884                                             8,645                                             2.4                      %
   Merchant Solutions                                                                                        260,305                                           120,561                                           139,744                                              nm
   Netspend                                                                                                  197,058     184,199      12,859                          7.0
                                                                                                           --------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
        Segment external net revenue                                                $                        832,892     671,644     161,248                         24.0                      %
                                                                                                           ========= ==================== ==================== ======= ==================== ==================== ======= ====================
nm = not meaningful
na = not applicable
                                                                                                                                                                                                                                      
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   TSYS
                                                                                                             Segment Breakdown
                                                                                                                (unaudited)
                                                                                                              (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  
                                                                                                                                                       Three Months Ended March 31,
                                                                                                 -----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                Change
                                                                                                                                                             -----------------------------------------------------------------------------
                                                                                                   2017       2016         $        %
                                                                                                 -------- -------------------- -------- -------------------- -------- -------------------- ----
Depreciation and amortization:
   Issuer Solutions                                                       $                        36,853                        35,619                         1,234                       3.5                                %
   Merchant Solutions                                                                               7,022                         5,050                         1,972                      39.0
   Netspend                                                                                         4,092      3,110        982                      31.6
                                                                                                 -------- -------------------- -------- -------------------- --------
Segment depreciation and amortization                                                              47,967                        43,779                         4,188                       9.6
Acquisition intangible amortization                                                                55,167                        22,921                        32,246                        nm
Corporate admin and other                                                                           1,044        883        161                      18.2
                                                                                                 -------- -------------------- -------- -------------------- --------
                                                                          $                       104,178     67,583     36,595                      54.1                                %
      Total depreciation and amortization
                                                                                                 ======== ==================== ======== ==================== ========
                                                                                                                                                                                                                      
                                                                                                                                                                                                                      
                                                                                                                                                                                                                      
Segment statistical data:
----------------------------------------------------
                                                                                                                                                                                                                      
Issuer Solutions
----------------------------------------------------
   Total transactions (in millions)                                                               4,876.6                       4,587.9                         288.7                       6.3                                %
   Total Accounts on file (AOF) (in millions)                                                       762.0                         750.5                          11.5                       1.5                                %
   Total Traditional AOF (in millions)                                                              532.3                         488.8                          43.5                       8.9                                %
                                                                                                                                                                                                                      
Merchant Solutions
----------------------------------------------------
   Point-of-sale transactions (in millions)                                                       1,127.7                       1,091.0                          36.7                       3.4                                %
   Dollar sales volume (in millions)                                      $                      29,120.4                      11,783.4                      17,337.0                        nm                                %
   Net revenue per transaction                                            $                         0.231                         0.111                         0.120                        nm                                %
                                                                                                                                                                                                                      
Netspend
----------------------------------------------------
   Gross dollar volume (in millions)                                      $                       9,607.2                       9,161.5                         445.7                       4.9                                %
   Direct deposit 90-day active cards (in thousands)                                              2,854.0                       2,789.2                          64.8                       2.3                                %
   90-day active cards (in thousands)                                                             5,147.4                       4,881.6                         265.8                       5.4                                %
   % of 90-day active cards with direct deposit                                                     55.4%                         57.1%
                                                                                                                                                                                                                      
nm = not meaningful
 
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         TSYS
                                                                Condensed Balance Sheet
                                                                      (unaudited)
                                                                    (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          
                                                                                             March 31, 2017                        December 31, 2016
                                                                                             --------------                      --------------------
Assets
Current assets:
   Cash and cash equivalents                                                               $        464,740                                   425,354
   Accounts receivable, net                                                                         405,746                                   432,847
   Other current assets                                                                             180,325                                   164,488
                                                                                             --------------                      --------------------
          Total current assets                                                                    1,050,811                                 1,022,689
Goodwill                                                                                          3,272,237                                 3,270,952
Software and other intangible assets, net                                                         1,268,403                                 1,329,864
Property and equipment, net                                                                         281,430                                   282,345
Other long term assets                                                                              477,799                                   460,327
                                                                                             --------------                      --------------------
          Total assets                                                                     $      6,350,680                                 6,366,177
                                                                                             ==============                      ====================
                                                                                                                                  
 Liabilities
 Current liabilities:
      Accounts payable                                                                     $         45,656                                    38,712
      Long-term borrowings and capital leases                                                        33,097                                    50,727
      Other current liabilities                                                                     373,505                                   330,914
                                                                                             --------------                      --------------------
          Total current liabilities                                                                 452,258                                   420,353
 Long-term borrowings and capital leases, excluding current portion                               3,229,137                                 3,313,276
                                                                                                    419,786                                   419,552
 Deferred income tax liabilities
 Other long-term liabilities                                                                         90,032                                    88,983
                                                                                             --------------                      --------------------
          Total liabilities                                                                       4,191,213                                 4,242,164
                                                                                             --------------                      --------------------
 Redeemable noncontrolling interest                                                                  14,737                                    24,093
                                                                                             --------------                      --------------------
 Equity                                                                                           2,144,730                                 2,099,920
                                                                                             --------------                      --------------------
          Total liabilities and equity                                                     $      6,350,680                                 6,366,177
                                                                                             ==============                      ====================
                                                                                                                                  
                                                                                                         
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      TSYS
                                                                          Selected Cash Flow Highlights
                                                                                   (unaudited)
                                                                                 (in thousands)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 
                                                                                                                        Three Months Ended March 31,
                                                                                             -----------------------------------------------------------------------------------
                                                                                                          2017                                                2016
                                                                                             ------------------------------                     --------------------------------
Cash flows from operating activities:
   Net income                                                                              $  107,107                                               92,408
   Adjustments to reconcile net income to net cash provided by
   operating activities:
       Equity in income of equity investments, net of tax                                     (12,909 )                                             (6,248 )
       Depreciation and amortization                                                          104,178                                               67,583
       Amortization of debt issuance costs                                                      1,079                                               10,386
       Share-based compensation                                                                 9,047                                                8,158
       Deferred income tax expense                                                                891                                               20,156
       Other noncash adjustments                                                               16,916                                                8,719
       Changes in operating assets and liabilities                                             33,852                           (55,334 )
                                                                                             -------- --------------------                      ---------- --------------------
           Net cash provided by operating activities                                          260,161                           145,828  
                                                                                             -------- --------------------                      ---------- --------------------
                                                                                                                                                 
       Purchases of property and equipment                                                    (12,240 )                                             (9,940 )
       Additions to licensed computer software from vendors                                    (5,162 )                                             (4,894 )
       Additions to internally developed computer software                                     (7,355 )                                             (8,544 )
       Additions to contract acquisition costs                                                 (7,668 )                                            (21,010 )
       Other investing activities                                                                (379 )                                                  -  
                                                                                             -------- --------------------                      ---------- --------------------
           Net cash used in investing activities                                              (32,804 )                                            (44,388 )
                                                                                             -------- --------------------                      ---------- --------------------
                                                                                                                                                 
                                                                                             (104,654 )                                           (304,654 )
       Principal payments on long-term borrowings and capital lease
       obligations
       Proceeds from long-term borrowings                                                           -                                            1,796,295
       Debt issuance costs                                                                          -                                              (26,592 )
       Purchase of noncontrolling interests                                                   (70,000 )                                             (5,879 )
       Dividends paid on common stock                                                         (18,333 )                                            (18,283 )
       Proceeds from exercise of stock options                                                  4,207                                                  626
       Other financing activities                                                                (769 )                                                499  
                                                                                             -------- --------------------                      ---------- --------------------
           Net cash (used in) provided by financing activities                               (189,549 )                                          1,442,012  
                                                                                             -------- --------------------                      ---------- --------------------
                                                                                                                                                 
Cash and cash equivalents:
 Effect of exchange rate changes on cash and cash equivalents                                   1,578                              (669 )
                                                                                             -------- --------------------                      ---------- --------------------
 Net increase in cash and cash equivalents                                                     39,386                                            1,542,783
 Cash and cash equivalents at beginning of period                                             425,354                           389,328  
                                                                                             -------- --------------------                      ---------- --------------------
 Cash and cash equivalents at end of period                                                $  464,740                         1,932,111  
                                                                                             ======== ====================                      ========== ====================
                                                                                                                                                 
Supplemental
   Capital expenditures                                                                    $   32,425                            44,388  
                                                                                             ======== ====================                      ========== ====================
   Free cash flow (non-GAAP)*                                                              $  227,736                           101,440  
                                                                                             ======== ====================                      ========== ====================
                                                                                                                                                 
 * See reconciliation of non-GAAP measures.
                                                                                                                                                 
 
 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       TSYS
                                                                                             Supplemental Information
                                                                                                    (unaudited)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Other
AOF:                                                                                                                                        Total Accounts on File
                                                                                            -----------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                            At                            At                         %
                                                                                                     March 2017                                       March 2016                                     Change
                                                                                            --------------------------  -------------------- --------------------------  -------------------- -------------------
Consumer                                                                                     450.0                                            414.8                                                  8.5
Commercial                                                                                    50.0                                             46.3                                                  8.0
Other                                                                                         32.3       27.7                              16.5
                                                                                            ------ -------------------- -------------------- ------ --------------------
   Traditional AOF                                                                           532.3                                            488.8                                                  8.9
Prepaid*/Stored Value                                                                         54.1                                            103.1                                                (47.6 )
Government Services                                                                           90.3                                             82.7                                                  9.2
Commercial Card Single Use                                                                    85.3       75.9                              12.5
                                                                                            ------ -------------------- -------------------- ------ --------------------
   Total AOF                                                                                 762.0      750.5                               1.5
                                                                                            ====== ==================== ==================== ====== ====================
      * Prepaid does not include Netspend accounts
                                                                                                                                                                                               
Growth in Accounts on File (in millions):
---------------------------------------------------------------------
                                                                                                    March 2016 to                 March 2015 to
                                                                                                     March 2017                                       March 2016
                                                                                            --------------------------  -------------------- --------------------------
Beginning balance                                                                            750.5                                            723.7
Change in accounts on file due to:
                                   Internal growth of existing clients                        51.8                                             52.3
                                                           New clients                        23.3                                             43.1
                                                          Purges/Sales                       (16.6 )                                          (24.3 )
                                                         Deconversions                       (47.0 )                       (44.3 )
                                                                                            ------ -------------------- -------------------- ------ --------------------
Ending balance                                                                               762.0      750.5  
                                                                                            ====== ==================== ==================== ====== ====================
                                                                                                                                                                                               
 
                      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 first quarter
2017 financial results using the previous year’s foreign currency
exchange rates. On a constant currency basis, TSYS’ total revenues
for the first quarter of 2017 grew 61.7% as compared to a reported
GAAP increase of 60.2%.
                                                 
The schedules below also provide a reconciliation of diluted EPS to
adjusted diluted EPS.
                                                 
The schedules below also provide a reconciliation of net income to
EBITDA and adjusted EBITDA.
                                                 
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 2017 guidance
of total revenues to net revenue and diluted EPS to adjusted diluted
EPS.
                                                 
The tax rate used in the calculation of adjusted diluted 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 March 31,
                                                                                      -----------------------------------------------------------------------------------------
                                                                                                                                                                        Percent
                                                                                                   2017                  2016     Change
                                                                                      --------------------------------------------------- ------- -------------------- -------
Consolidated
----------------------------------------
Constant currency (1)                                                               $ 1,195,848                                           739,378                         61.7                      %
Foreign currency impact (2)                                                             (11,123 )                            -
                                                                                      --------- -------------------- -------------------- -------
Total revenues                                                                      $ 1,184,725     739,378                         60.2                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
Constant currency (1)                                                               $   843,231                                           671,644                         25.5                      %
Foreign currency impact (2)                                                             (10,339 )                            -
                                                                                      --------- -------------------- -------------------- -------
Net revenue                                                                         $   832,892     671,644                         24.0                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
Constant currency (1)                                                               $   171,971                                           151,687                         13.4                      %
Foreign currency impact (2)                                                              (4,788 )                            -
                                                                                      --------- -------------------- -------------------- -------
Operating income                                                                    $   167,183     151,687                         10.2                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
Issuer Solutions
----------------------------------------
Constant currency (1)                                                               $   448,235                                           429,713                          4.3                      %
Foreign currency impact (2)                                                             (11,118 )                            -
                                                                                      --------- -------------------- -------------------- -------
Total revenues                                                                      $   437,117     429,713                          1.7                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
Constant currency (1)                                                               $   397,590                                           378,009                          5.2                      %
Foreign currency impact (2)                                                             (10,335 )                            -
                                                                                      --------- -------------------- -------------------- -------
Net revenue                                                                         $   387,255     378,009                          2.4                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
(1) Reflects current period results on a non-GAAP basis as if
foreign currency rates did not change from the comparable prior year
period.
(2) Reflects the impact of calculated changes in foreign currency
rates from the comparable period.
     
-------------------- -------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Net Revenue
                                                                                                       (unaudited)
                                                                                                     (in thousands)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                     
                                                                                                                    Three Months Ended March 31,
                                                                                      -----------------------------------------------------------------------------------------
                                                                                                                                                                        Percent
                                                                                                   2017                  2016     Change
                                                                                      --------------------------------------------------- ------- -------------------- -------
Total revenues                                                                      $ 1,184,725                                           739,378                         60.2                      %
Less: reimbursable items, interchange and assessments expenses                          351,833      67,734                           nm
                                                                                      --------- -------------------- -------------------- -------
Net revenue                                                                         $   832,892     671,644                         24.0                      %
                                                                                      ========= ==================== ==================== =======
                                                                                                                                                                                                     
nm = not meaningful
 
                                                              
                                                                                               Reconciliation of GAAP to Non-GAAP
 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Adjusted Diluted Earnings per Share
                                                                                                           (unaudited)
                                                                                              (in thousands, except per share data)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                    
                                                                                                                                   Three Months Ended March 31,
                                                                                       ---------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                Percent
                                                                                                   2017                           2016                    Change
                                                                                       ------------------------------------------------- ------------------------------------------------- -----------------
Net income attributable to TSYS common shareholders                                  $ 105,868                                            90,628                                            16.8            %
Adjust for amounts attributable to TSYS common shareholders:
   Add: Acquisition intangible amortization                                          $  55,002                                            22,645                                              nm
   Add: Share-based compensation                                                         9,041                                             8,149                                            10.9
   Add: TransFirst M&A expenses*                                                         4,825                                            13,183                                           (63.4 )
   Add: Litigation, claims, judgments or settlements**                                   1,961                                                 -                                              na
   Less: Tax impact of adjustments***                                                  (24,432 )                      (13,895 )                                         (75.8 )
                                                                                       ------- -------------------- -------------------- ------- --------------------
Adjusted earnings                                                                    $ 152,265     120,710                         26.1            %
                                                                                       ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                             
Diluted EPS - Net income attributable to TSYS common
shareholders
As reported (GAAP)                                                                   $    0.57        0.49                         16.1            %
                                                                                       ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                             
Adjusted diluted EPS                                                                 $    0.82        0.66                         25.4            %
                                                                                       ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                             
Weighted average diluted shares outstanding                                            184,938     183,886  
                                                                                       ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                             
* Costs associated with the TransFirst acquisition and integration
that are included in selling, general and administrative expenses
and nonoperating expenses.
** Litigation settlement or settlement discussions and related legal
expenses in the 1st quarter.
*** 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 March 31,
                                                                                       ---------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                Percent
                                                                                                   2017                           2016                    Change
                                                                                       ------------------------------------------------- ------------------------------------------------- -----------------
Net income                                                                           $ 107,107                                            92,408                                            15.9            %
Adjust for:
   Less: Equity in income of equity investments                                        (12,909 )                                          (6,248 )                                            nm
   Add: Income taxes                                                                    43,082                                            43,429                                            (0.8 )
   Add: Nonoperating expense                                                            29,903                                            22,098                                            35.3
   Add: Depreciation and amortization                                                  104,178      67,583                         54.1
                                                                                       ------- -------------------- -------------------- ------- --------------------
 EBITDA                                                                              $ 271,361                                           219,270                                            23.8            %
Adjust for:
   Add: Share-based compensation                                                         9,047                                             8,158                                            10.9
   Add: TransFirst M&A expenses*                                                         4,868                                             3,401                                            43.1
   Add: Litigation, claims, judgments or settlements                                     1,961           -                           na
                                                                                       ------- -------------------- -------------------- ------- --------------------
 Adjusted EBITDA                                                                     $ 287,237     230,829                         24.4            %
                                                                                       ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                             
* 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
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          Free Cash Flow
                                                                                                                                                            (unaudited)
                                                                                                                                                          (in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Three Months Ended                                                                           
Free cash flow:                                                                                                                                            March 31,
                                                                                        ----------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    2017                                 2016
                                                                                        ------------------------------------------------- -------------------- -------------------- -------------------- -----------------------------
                                                                                                                                             
                       Net cash provided by operating activities (GAAP)               $ 260,161                                                                                                          145,828
                       Capital expenditures                                             (32,425 )                                                                                                        (44,388 )
                                                                                        ------- --------------------                                                                                     ------- --------------------
                       Free cash flow (non-GAAP)                                      $ 227,736                                                                                       101,440  
                                                                                        ======= ====================                                                                                     ======= ====================
                                                                                                                                                                                                                                                                                                              
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                     Revised Guidance Summary
                                                                                                                                                            (unaudited)
                                                                                                                                               (in millions, except per share data)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                              
Revenue:                                                                                                                                                     2017                                                                                                                         % Change
                                                                                        ----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                              
                       Total revenues (GAAP)                                          $   4,770                                                    to                                                  $   4,870                                           14 %                      to                              17 %
                                                                                          1,475              to                1,475  
                       Less: reimbursable items, interchange and assessments expenses
                                                                                        ------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
                       Net revenue (non-GAAP)                                         $   3,295                                                    to                                                  $   3,395                                            8 %                      to                              12 %
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                              
Earnings per share (EPS):
                                                                                                                                                                                                                                                                                                              
                       Diluted EPS (GAAP)                                             $    2.25                                                    to                                                  $    2.32                                           30 %                      to                              34 %
                                                                                           0.91              to                 0.94  
                       Acquisition intangible amortization, share-based compensation,
                       litigation, claims, judgments or settlements and TransFirst M&A
                       expenses, less the tax impact of adjustments
                                                                                        ------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
                                                                                      $    3.16                                                    to                                                  $    3.26                                           13 %                      to                              17 %
                       Adjusted diluted EPS attributable to TSYS common shareholders*
                       (non-GAAP)
                                                                                                                                                                                                                                                                                                              
                       * Weighted average diluted shares outstanding                                                                               185

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170425006657r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170425006657/en/

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

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


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