Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TOTAL SYSTEM SERVICES INC | d526259d8k.htm |
| EX-99.1 - EX-99.1 - TOTAL SYSTEM SERVICES INC | d526259dex991.htm |
 2013
First Quarter Results April 23, 2013
©
2013
Total
System
Services,
Inc.®
All
rights
reserved
worldwide.
Exhibit 99.2 |
 Forward-Looking Statements
This presentation and comments made by management contain
forward-looking statements including, among others, statements
regarding the expected future operating results of TSYS. These
statements are based on management’s current expectations and
assumptions and are subject to risks, uncertainties and changes in
circumstances. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward- looking
terminology
such
as
the
words
“believe,”
“expect,”
“anticipate,”
“intend,”
“plan,”
“estimate”
or similar expressions. Actual results may
differ materially from those set forth in the forward-looking statements
due to a variety of factors. More information about these risks,
uncertainties
and
factors
may
be
found
in
TSYS’
2012
Annual
Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. TSYS does not assume any obligation to update any
forward-looking statements as a result of new information, future
developments or otherwise.
2
©2013
Total
System
Services,
Inc.®
Proprietary.
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rights
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worldwide. |
 Use of
Non-GAAP Financial Measures This slide presentation contains certain
non-GAAP financial measures determined by methods other than in
accordance with generally accepted accounting principles. Such non-GAAP
financial measures include the following: revenues before reimbursable
items; operating margin excluding reimbursable items; revenues measured on a
constant currency basis; free cash flow; and EBITDA. The most
comparable GAAP measures to these measures are revenues;
operating margin; revenues; cash flows from operating activities; and
net income, respectively. Management uses these non-GAAP financial
measures
to
assess
the
performance
of
TSYS’
core
business.
TSYS
believes that these non-GAAP financial measures provide meaningful
additional information about TSYS to assist investors in evaluating
TSYS’
operating results. These non-GAAP financial measures should
not be considered as a substitute for operating results determined in
accordance with GAAP and may not be comparable to other similarly
titled measures of other companies. The computations of the non-
GAAP financial measures used in this slide presentation are set forth in
the Appendix to this slide presentation.
3
©2013
Total
System
Services,
Inc.®
Proprietary.
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worldwide. |
 Phil
Tomlinson Chairman and Chief Executive Officer
©2013
Total
System
Services,
Inc.®
Proprietary.
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rights
reserved
worldwide. |
 Jim
Lipham Chief Financial Officer
©2013 Total System Services, Inc.®
Proprietary. All rights reserved worldwide.
|
 Consolidated Selected Financial Highlights
6
©2013
Total
System
Services,
Inc.®
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rights
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worldwide.
Total Revenues
$ 464,996
$ 461,162
0.8%
Revenues Before Reimbursable Items
404,237
395,180
2.3
Operating Income
74,903
84,831
(11.7)
Net Income Attributable to TSYS Common Shareholders
57,028
56,395
1.1
Total Cardholder Transactions (in millions)
2,447.6
2,250.2
8.8
Basic Earnings Per Share
Attributable to TSYS Common Shareholders
$0.31
$0.30
2.2
1st
Qtr
2013
1st
Qtr
2012
Percent
Change
(in thousands, except per share data) |
 2013
YTD Revenue Change Revenues Before Reimbursable Items
7
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 Consumer Credit
203.8
197.2
3.3
203.8
200.5
1.6
Retail
25.2
25.3
(0.3
)
25.2
25.0
0.7
Total Consumer
229.0
222.5
2.9
229.0
225.5
1.5
Commercial
37.9
35.5
6.6
37.9
37.1
2.1
Other
13.4
9.4
42.9
13.4
12.8
5.1
Subtotal
280.3
267.4
4.8
280.3
275.4
1.8
Prepaid /
Stored Value
107.3
88.5
21.3
107.3
115.9
(7.4
)
Government
Services
59.4
30.5
94.4
59.4
57.0
4.1
Commercial Card
Single Use
31.6
29.5
7.3
31.6
31.1
1.5
Total AOF
478.6
415.9
15.1
478.6
479.4
(0.2
)
Consolidated Accounts on File Portfolio Summary
(in millions)
Mar
2013
Mar
2012
%
Change
Mar
2013
Dec
2012
%
Change
8
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Services,
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 Key
Drivers 1Q 2013 Year Over Year Segment Financial Highlights
•
Strong internal growth
•
Increased volumes
•
Pricing concessions
•
Lost business
North America
Services
9
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•
Total accounts on file were 422.8 million, an
increase of 16.9%
•
Excluding prepaid, govt. services and single use,
accounts on file were 226.5 million, an increase
of 5.2%
•
Total cardholder transactions were 2,013.4
million, an increase of 7.8%
Volumes |
 1Q
2013 Year Over Year Segment Financial Highlights •
Strong internal growth
•
Deconversion fee
•
Lost business
10
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Key Drivers
Volumes
•
Accounts on file were 55.8 million, an increase
of 3.2%
•
Total cardholder transactions were 434.2
million, an increase of 13.3%
International
Services |
 Merchant
Services
•
Upward trends in transaction volumes
excluding deconversions
•
Strong dollar volume growth in direct acquiring
•
Acquisitions of Central Payment & ProPay
•
Lost business
11
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Key Drivers
Volumes
•
Point-of-Sale transactions were 1,099.1 million,
a decrease of 9.9%
•
Excluding deconverted clients, Point-of-Sale
transactions increased 6.6%
•
Dollar sales volume was $10.1 billion, an
increase of 15.5%
1Q 2013 Year Over Year Segment Financial Highlights |
 Cash
Flow Strength: 2013 TTM Consolidated Financial Highlights
$520
$410
$254
$251
$223
$0
$75
$150
$225
$300
$375
$450
$525
$600
EBITDA
Cash flow from operations
Free cash flow
Net income
Ending cash
(in millions)
12
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System
Services,
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TTM = Trailing Twelve Months |
 Appendix
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 Appendix Non-GAAP Reconciliation –
Revenues Before Reimbursable Items
Three Months Ended
3/31/13
3/31/12 Total Revenues
$ 464,996 $
461,162 Reimbursable Items
60,759
65,982
Revenues Before Reimbursable Items
$ 404,237
$ 395,180
(in thousands)
14
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 Three Months Ended
3/31/13 3/31/12
Three Months Ended
3/31/13
3/31/12 Three Months Ended
3/31/13 3/31/12
Operating Income (a)
$ 67,202 $
68,347 $
6,626 $
4,113 $
29,327 $ 34,219
Total Revenues (b)
239,789
240,599
97,096
100,360
132,901
125,518
Reimbursable Items
34,193
36,549
4,503
3,869
23,600
27,162
Revenues Before
Reimbursable Items(c)
205,596
204,050
92,593
96,491
109,301
98,356
Operating Margin (a)/(b)
28.03%
28.41%
6.82%
4.10%
22.07%
27.26%
Operating Margin Excluding Reimbursables (a)/(c)
32.69%
33.50%
7.16%
4.26%
26.83%
34.79%
Appendix Non-GAAP Reconciliation –
Segment
Operating Margin Excluding Reimbursable Items
North America
International
Merchant
(in thousands)
15
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System
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 Three
Months Ended
3/31/13 3/31/12
Percentage
Change
Appendix Non-GAAP Reconciliation –
Constant Currency
(1) Reflects current period results on a non-GAAP basis as if foreign currency
rates did not change from the comparable prior year period. (2) Reflects the
impact of calculated changes in foreign currency rates from the comparable period.
(in thousands)
Consolidated:
Constant Currency (1)
$ 469,016
$ 461,162
1.7%
Foreign Currency (2)
(4,020)
---
Total Revenues
$464,996
$461,162
0.8%
International Services:
Constant Currency (1)
$ 101,185
$100,360
0.8%
Foreign Currency (2)
(4,089)
---
Total Revenues
$97,096
$100,360
(3.3%)
16
©2013
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System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |
 Appendix Non-GAAP Reconciliation –
EBITDA
Trailing Twelve
Months Ended
3/31/2013
Net Income
$ 251,428
Adjusted for:
Deduct: Equity in Income of Equity Investments
(11,214)
Add: Income Taxes
103,392
Add: Nonoperating expense
4,118
Add: Depreciation and Amortization
172,235
EBITDA
$ 519,959
(in thousands)
17
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System
Services,
Inc.®
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 Appendix Non-GAAP Reconciliation –
Free Cash Flow
Trailing Twelve
Months Ended
3/31/2013
Cash Flows from Operating Activities
$ 410,277
Less:
Purchase of Property and Equipment
(32,893)
Additions to Licensed Computer Software from Vendors
(60,312)
Additions to Internally Developed Computer Software
(20,146)
Additions to Contract Acquisition Costs
(42,951)
Free Cash Flow
$ 253,975
(in thousands)
18
©2013
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide. |