Exhibit 99.1

 

 

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

For immediate release:

Contacts:

Shawn Roberts

TSYS Investor Relations

+1.706.644.6081

shawnroberts@tsys.com

TSYS Reports Second Quarter Earnings Including TransFirst

COLUMBUS, Ga., July 26, 2016 — TSYS (NYSE: TSS) today reported results for the second quarter of 2016.

Highlights for the second quarter of 2016 include:

 

●

Total revenues were $1.2 billion, an increase of 66.3% over last year’s $692.7 million.

 

●

Net revenue, which excludes reimbursable items, interchange and assessment expense, was $794.9 million, an increase of 27.8% over last year’s $622.1 million.

 

●

GAAP net income attributable to TSYS common shareholders, which includes the expenses of closing the TransFirst acquisition during the quarter, was $69.7 million, a decrease of 15.9% from last year’s $82.8 million. GAAP basic earnings per share (EPS) were $0.38 per share, a decrease of 15.8% from last year’s $0.45.

 

●

Adjusted EBITDA was $274.0 million, an increase of 32.7% over last year’s $206.5 million. Adjusted earnings were $135.4 million, an increase of 27.8% over last year’s $106.0 million. Adjusted EPS was $0.74, an increase of 27.9% over last year’s $0.58.

 

●

Cash of $125 million was deployed for accelerated repayments on our bank credit facility.

“We are extremely pleased with the outstanding operational and financial performance for the second quarter as we continue to deliver on our strategic plan. All four segments achieved net revenue growth on a constant currency basis and our consolidated adjusted operating margin expanded by 202 basis points,” said M. Troy Woods, chairman and chief executive officer of TSYS.

“We are also pleased to report that the integration of our TransFirst acquisition this quarter is going very well. TransFirst, along with our legacy merchant business, gives us a commanding leadership position in the merchant acquiring market on which we intend to capitalize,” said Woods.

 

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TSYS Reports Second Quarter Earnings Including TransFirst

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, July 26. The conference call can be accessed via simultaneous Internet broadcast on the “Investor Relations” section of TSYS’ website at investors.tsys.com where an accompanying slide presentation will also be available. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call.

Non-GAAP Measures

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

Additional information about non-GAAP financial measures, including, but not limited to, net revenue, adjusted earnings, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 9 to 12 of this release.

About TSYS

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

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

Our industry is changing every day — and we’re leading the way toward the payments of tomorrow. We routinely post all important information on our website. For more, visit us at tsys.com.

 

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TSYS Reports Second Quarter Earnings Including TransFirst

Forward-Looking Statements

  This press release and related presentations may contain “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 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 risks described in TSYS’ filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We disclaim any obligation to update any forward-looking statements as a result of new information, future developments or otherwise except as required by law.

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TSYS Announces Second Quarter 2016 Earnings

Page 4 of 12

 

 

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

 

 

		Three Months Ended June 30,												Six Months Ended June 30,
		2016				2015				Percent Change				2016				2015				Percent Change
Total revenues		$	1,151,587				692,652				66.3	%		$	1,890,965				1,354,808				39.6	%
Cost of services			837,660				459,960				82.1				1,318,216				909,676				44.9
Selling, general and administrative expenses			178,106				102,090				74.5				285,241				192,034				48.5
Total expenses			1,015,766				562,050				80.7				1,603,457				1,101,710				45.5
Operating income			135,821				130,602				4.0				287,508				253,098				13.6
Nonoperating expenses			(30,061	)			(10,209	)			nm				(52,501	)			(19,418	)			nm
Income before income taxes, noncontrolling interests and equity in income of equity investments			105,760				120,393				(12.2	)			235,007				233,680				0.6
Income taxes			40,290				41,597				(3.1	)			83,719				81,379				2.9
Income before noncontrolling interests and equity in income of equity investments			65,470				78,796				(16.9	)			151,288				152,301				(0.7	)
Equity in income of equity investments, net of tax			6,278				4,579				37.1				12,868				9,973				29.0
Net income			71,748				83,375				(13.9	)			164,156				162,274				1.2
Net income attributable to noncontrolling interests			(2,040	)			(536	)			nm				(3,820	)			(1,680	)			nm
Net income attributable to TSYS common shareholders		$	69,708				82,839				(15.9	)%		$	160,336				160,594				(0.2	)%
Earnings per share (EPS):
Basic EPS		$	0.38				0.45				(15.8	)%		$	0.87				0.87				0.2	%
Diluted EPS		$	0.38				0.45				(15.7	)%		$	0.87				0.87				0.4	%
Weighted average shares outstanding: (includes participating securities)
Basic			183,724				183,829								183,489				184,153
Diluted			184,598				185,020								184,336				185,299
Dividends declared per share		$	0.10				0.10							$	0.20				0.20
Non-GAAP measures:
Net revenue		$	794,937				622,084				27.8	%		$	1,466,581				1,217,868				20.4	%
Adjusted EPS from continuing operations		$	0.74				0.58				27.9	%		$	1.40				1.11				25.5	%
Adjusted EBITDA		$	274,032				206,537				32.7	%		$	504,862				399,991				26.2	%

nm = not meaningful

 

 

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TSYS Announces Second Quarter 2016 Earnings

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TSYS

Segment Breakdown

(unaudited)

(in thousands)

 

 

		Three Months Ended June 30,																Six Months Ended June 30,
										Change																Change
		2016				2015				$				%				2016				2015				$				%
Total revenues		$	1,151,587				692,652				458,935				66.3	%		$	1,890,965				1,354,808				536,157				39.6	%
Less reimbursable items			66,137				70,568				(4,431	)			(6.3	)			133,871				136,940				(3,069	)			(2.2	)
Less interchange & assessments expense			290,513				—				290,513				na				290,513				—				290,513				na
Net revenue		$	794,937				622,084				172,853				27.8	%		$	1,466,581				1,217,868				248,713				20.4	%
Net revenue (by segment):
North America Services		$	297,168				287,199				9,969				3.5	%		$	600,809				553,418				47,391				8.6	%
International Services			81,771				83,857				(2,086	)			(2.5	)			157,125				157,587				(462	)			(0.3	)
Merchant Services			261,467				117,868				143,599				nm				382,079				228,266				153,813				67.4
NetSpend			162,620				141,621				20,999				14.8				347,613				296,695				50,918				17.2
Intersegment revenues			(8,089	)			(8,461	)			372				4.4				(21,045	)			(18,098	)			(2,947	)			(16.3	)
Net revenue from external customers		$	794,937				622,084				172,853				27.8	%		$	1,466,581				1,217,868				248,713				20.4	%
Depreciation and amortization:
North America Services		$	27,442				24,468				2,974				12.2	%		$	54,925				47,532				7,393				15.6	%
International Services			8,207				8,628				(421	)			(4.9	)			16,343				17,406				(1,063	)			(6.1	)
Merchant Services			6,806				4,446				2,360				53.1				11,856				8,723				3,133				35.9
NetSpend			3,116				2,622				494				18.8				6,225				4,915				1,310				26.7
Segment depreciation and amortization			45,571				40,164				5,407				13.5				89,349				78,576				10,773				13.7
Acquisition intangible amortization			58,486				22,852				35,634				nm				81,407				46,718				34,689				74.3
Corporate admin and other			912				889				23				2.6				1,796				1,426				370				25.9
Total depreciation and amortization		$	104,969				63,905				41,064				64.3	%		$	172,552				126,720				45,832				36.2	%
Adjusted segment operating income:
North America Services		$	112,737				108,385				4,352				4.0	%		$	237,525				210,956				26,569				12.6	%
International Services			15,751				13,353				2,398				18.0				26,040				20,336				5,704				28.0
Merchant Services			89,915				40,690				49,225				nm				128,272				74,805				53,467				71.5
NetSpend			42,481				36,442				6,039				16.6				84,682				71,909				12,773				17.8
Total adjusted segment operating income			260,884				198,870				62,014				31.2				476,519				378,006				98,513				26.1
Acquisition intangible amortization			(58,486	)			(22,852	)			(35,634	)			nm				(81,407	)			(46,718	)			(34,689	)			(74.3	)
TransFirst M&A operating expenses			(20,676	)			—				(20,676	)			na				(24,078	)			—				(24,078	)			na
Share-based compensation			(12,566	)			(12,030	)			(536	)			(4.5	)			(20,724	)			(20,173	)			(551	)			(2.7	)
Corporate admin and other			(33,335	)			(33,386	)			51				0.2				(62,802	)			(58,017	)			(4,785	)			(8.2	)
Operating income		$	135,821				130,602				5,219				4.0	%		$	287,508				253,098				34,410				13.6	%

nm = not meaningful

na = not applicable

 

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TSYS Announces Second Quarter 2016 Earnings

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TSYS

Condensed Balance Sheet

(unaudited)

(in thousands)

 

 

		June 30, 2016				December 31, 2015
Assets
Current assets:
Cash and cash equivalents		$	465,319				389,328
Accounts receivable, net			396,693				314,705
Other current assets			147,419				154,199
Total current assets			1,009,431				858,232
Goodwill			3,252,118				1,545,424
Other intangible assets, net			1,002,589				328,320
Property, equipment and software, net			746,133				694,968
Other long term assets			466,762				450,951
Total assets		$	6,477,033				3,877,895
Liabilities
Current liabilities:
Accounts payable		$	34,428				52,213
Notes payable and capital leases			49,085				53,546
Other current liabilities			279,972				233,173
Total current liabilities			363,485				338,932
Bonds payable, notes payable and capital leases, excluding current portion			3,600,154				1,377,541
Deferred tax liability			411,532				192,445
Other long-term liabilities			93,135				96,885
Total liabilities			4,468,306				2,005,803
Redeemable noncontrolling interest			23,299				23,410
Equity
Shareholders’ equity			1,985,428				1,843,018
Noncontrolling interests in consolidated subsidiaries			—				5,664
Total equity			1,985,428				1,848,682
Total liabilities and equity		$	6,477,033				3,877,895

Note: TSYS adopted Accounting Standards Update (ASU) 2015-03 “Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Cost” on January 1, 2016. This ASU requires TSYS to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. All prior periods presented have been restated for this ASU.

TSYS also adopted ASU 2015-17 “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes” on January 1, 2016. This ASU requires the classification of all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. All prior periods presented have been restated for this ASU.

 

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TSYS Announces Second Quarter 2016 Earnings

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TSYS

Selected Cash Flow Highlights

(unaudited)

(in thousands)

 

 

		Six Months Ended June 30,
		2016				2015
Cash flows from operating activities:
Net income		$	164,156				162,274
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments			(12,868	)			(9,973	)
Dividends received from equity investments			808				984
Depreciation and amortization			172,552				126,720
Amortization of debt issuance costs			11,451				917
Share-based compensation			20,724				20,173
Deferred income tax expense(benefit)			18,520				(12,954	)
Other noncash adjustments			21,764				21,401
Changes in operating assets and liabilities			(56,227	)			(24,249	)
Net cash provided by operating activities			340,880				285,293
Net cash used in investing activities			(2,428,856	)			(97,512	)
Net cash provided by (used in) financing activities			2,169,545				(126,244	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents			(5,578	)			(1,342	)
Net increase in cash and cash equivalents			75,991				60,195
Cash and cash equivalents at beginning of period			389,328				289,183
Cash and cash equivalents at end of period		$	465,319				349,378
Supplemental - Non-GAAP:
Net cash provided by operating activities		$	340,880				285,293
Capital expenditures			(81,807	)			(96,552	)
Free cash flow		$	259,073				188,741

 

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TSYS Announces Second Quarter 2016 Earnings

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TSYS

Supplemental Information

(unaudited)

 

Other

Accounts on File (AOF):

		Total Accounts on File
(in millions)		At June 2016				At June 2015				% Change
Consumer			425.3				400.5				6.2
Commercial			47.0				44.0				7.1
Other			28.8				24.0				19.6
Traditional AOF			501.1				468.5				7.0
Prepaid*/Stored Value			79.5				133.1				(40.3	)
Government Services			84.6				77.1				9.8
Commercial Card Single Use			76.9				72.7				5.8
Total AOF			742.1				751.4				(1.2	)

 

*	Prepaid does not include NetSpend accounts

Growth in Accounts on File (in millions):

 

		June 2015 to June 2016				June 2014 to June 2015
Beginning balance			751.4				572.7
Change in accounts on file due to:
Internal growth of existing clients			51.8				42.4
New clients			32.9				166.1
Purges/Sales			(24.0	)			(29.3	)
Deconversions			(70.0	)			(0.5	)
Ending balance			742.1				751.4

Segment data:

 

		Three Months Ended June 30,
										Change
		2016				2015				Inc/(Dec)				%
North America Segment:
Transactions (in millions)			4,326.6				4,042.2				284.4				7.0	%
International Segment:
Transactions (in millions)			658.5				613.9				44.6				7.3	%
Merchant Segment:
Point-of-sale transactions (in millions)			1,159.5				1,089.4				70.1				6.4	%
Dollar sales volume (in millions)		$	28,560.8			$	12,314.8			$	16,246.0				131.9	%
NetSpend Segment:
Gross dollar volume (in millions)		$	6,614.7			$	5,531.0			$	1,083.7				19.6	%
		Six Months Ended June 30,
										Change
		2016				2015				Inc/(Dec)				%
North America Segment:
AOF (in millions)			660.9				677.5				(16.6	)			(2.5	)%
Traditional AOF (in millions)			435.1				405.4				29.7				7.3	%
Transactions (in millions)			8,296.2				7,353.0				943.2				12.8	%
International Segment:
AOF (in millions)			81.3				73.9				7.4				10.0	%
Traditional AOF (in millions)			66.0				63.1				3.0				4.7	%
Transactions (in millions)			1,276.9				1,185.9				91.0				7.7	%
Merchant Segment:
Point-of-sale transactions (in millions)			2,250.4				2,074.0				176.4				8.5	%
Dollar sales volume (in millions)		$	40,344.2			$	23,616.4			$	16,727.8				70.8	%
NetSpend Segment:
Gross dollar volume (in millions)		$	15,776.2			$	13,191.7			$	2,584.5				19.6	%
Direct deposit 90-day active cards (in thousands)			2,192.5				1,879.8				312.7				16.6	%
90-day active cards (in thousands)			4,448.8				3,885.1				563.7				14.5	%
% of 90-day active cards with direct deposit			49.3	%			48.4	%

 

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TSYS Announces Second Quarter 2016 Earnings

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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 second quarter 2016 financial results using the previous year’s foreign currency exchange rates. On a constant currency basis, TSYS’ total revenues grew 40.4% as compared to a reported GAAP increase of 39.6%.

The schedules below also provide a reconciliation of basic EPS, adjusted for the after-tax impact of acquisition intangible amortization, share-based compensation and merger and acquisition costs, to adjusted EPS.

The schedules below provide a reconciliation of total revenues to net revenue. Net revenue is defined as total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense.

The tax rate used in the calculation of adjusted EPS for the quarter and year is equal to an estimate of our annual effective tax rate on GAAP income. This effective rate is estimated annually and may be adjusted during the year to take into account events or trends that materially impact the effective tax rate including, but not limited to, significant changes resulting from tax legislation, material changes in the mix of revenues and expenses by entity and other significant events.

The schedules also provide a reconciliation of net income, adjusted for income from discontinued operations, equity in income of equity investments, income taxes, nonoperating expense, depreciation and amortization, share-based compensation, and merger and acquisition expenses, to adjusted EBITDA.

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 use 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.

 

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TSYS Announces Second Quarter 2016 Earnings

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Reconciliation of GAAP to Non-GAAP

 

 

Constant Currency Comparison

(unaudited)

(in thousands)

 

 

 

		Three Months Ended June 30,												Six Months Ended June 30,
		2016				2015				Percent Change				2016				2015				Percent Change
Consolidated
Constant currency (1)		$	1,157,633				692,652				67.1	%		$	1,902,607				1,354,808				40.4	%
Foreign currency impact (2)			(6,046	)			—								(11,642	)			—
Total revenues		$	1,151,587				692,652				66.3	%		$	1,890,965				1,354,808				39.6	%
Constant currency (1)		$	800,586				622,084				28.7	%		$	1,477,432				1,217,868				21.3	%
Foreign currency impact (2)			(5,649	)			—								(10,851	)			—
Net revenue		$	794,937				622,084				27.8	%		$	1,466,581				1,217,868				20.4	%
Constant currency (1)		$	137,848				130,602				5.5	%		$	290,629				253,098				14.8	%
Foreign currency impact (2)			(2,027	)			—								(3,121	)			—
Operating income		$	135,821				130,602				4.0	%		$	287,508				253,098				13.6	%
International Services
Constant currency (1)		$	93,549				89,618				4.4	%		$	180,160				169,420				6.3	%
Foreign currency impact (2)			(6,040	)			—								(11,578	)			—
Total revenues		$	87,509				89,618				(2.4	)%		$	168,582				169,420				(0.5	)%
Constant currency (1)		$	87,413				83,857				4.2	%		$	167,911				157,587				6.6	%
Foreign currency impact (2)			(5,642	)			—								(10,786	)			—
Net revenue		$	81,771				83,857				(2.5	)%		$	157,125				157,587				(0.3	)%

 

(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 June 30,												Six Months Ended June 30,
										Percent												Percent
		2016				2015				Change				2016				2015				Change
Total revenues		$	1,151,587				692,652				66.3	%		$	1,890,965				1,354,808				39.6	%
Less reimbursable items			66,137				70,568				(6.3	)			133,871				136,940				(2.2	)
Less interchange & assessments expense			290,513				—				na				290,513				—				na
Net revenue		$	794,937				622,084				27.8	%		$	1,466,581				1,217,868				20.4	%

na = not applicable

 

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TSYS Announces Second Quarter 2016 Earnings

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Reconciliation of GAAP to Non-GAAP

 

 

Adjusted Earnings per Share

(unaudited)

(in thousands, except per share data)

 

 

 

		Three Months Ended June 30,												Six Months Ended June 30,
		2016				2015				Percent Change				2016				2015				Percent Change
Income from continuing operations attributable to TSYS common shareholders		$	69,708				82,839				(15.9	)%		$	160,336				160,594				(0.2	)%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization		$	58,210				22,576				nm				80,855				46,167				75.1
Add: Share-based compensation			12,557				12,024				4.4				20,707				20,167				2.7
Add: TransFirst M&A expenses*			20,676				—				na				33,859				—				na
Less: Tax impact of adjustments**			(25,735	)			(11,484	)			nm				(39,631	)			(22,016	)			(80.0	)
Adjusted earnings		$	135,416				105,955				27.8	%		$	256,126				204,912				25.0	%
Basic EPS - Income from continuing operations attributable to TSYS common shareholders
As reported (GAAP)		$	0.38				0.45				(15.8	)%		$	0.87				0.87				0.2	%
Adjusted EPS		$	0.74				0.58				27.9	%		$	1.40				1.11				25.5	%
Weighted average shares outstanding			183,724				183,829								183,489				184,153

 

*	Costs associated with the TransFirst acquisition and integration which are included in selling, general and administative expenses and nonoperating expenses.

**	Certain of these merger and acquisition costs are nondeductible for income tax purposes. Income tax impact includes a discrete item as a result of the acquisition.

 

 

Adjusted EBITDA

(unaudited)

(in thousands)

 

 

 

		Three Months Ended June 30,												Six Months Ended June 30,
		2016				2015				Percent Change				2016				2015				Percent Change
Net income		$	71,748				83,375				(13.9	)%		$	164,156				162,274				1.2	%
Adjust for:
Deduct: Equity in income of equity investments			(6,278	)			(4,579	)			(37.1	)			(12,868	)			(9,973	)			(29.0	)
Add: Income taxes			40,290				41,597				(3.1	)			83,719				81,379				2.9
Add: Nonoperating expense			30,061				10,209				nm				52,501				19,418				nm
Add: Depreciation and amortization			104,969				63,905				64.3				172,552				126,720				36.2
EBITDA		$	240,790				194,507				23.8	%		$	460,060				379,818				21.1	%
Adjust for:
Add: Share-based compensation			12,566				12,030				4.5				20,724				20,173				2.7
Add: TransFirst M&A expenses*			20,676				—				na				24,078				—				na
Adjusted EBITDA		$	274,032				206,537				32.7	%		$	504,862				399,991				26.2	%

 

*	Costs associated with the TransFirst acquisition and integration which are included in selling, general and administative expenses.

nm = not meaningful

na = not applicable

 

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TSYS Announces Second Quarter 2016 Earnings

Page 12 of 12

 

 

Reconciliation of GAAP to Non-GAAP

 

 

Segment Operating Margin and Consolidated Adjusted Operating Margin

(unaudited)

(in thousands)

 

 

		Three Months Ended June 30, 2016												Three Months Ended June 30, 2015
		Adjusted Segment Operating Income				Net Revenue				Adjusted Operating Margin				Adjusted Segment Operating Income				Net Revenue				Adjusted Operating Margin
North America Services		$	112,737				297,168				37.94	%		$	108,385				287,199				37.74	%
International Services			15,751				81,771				19.26				13,353				83,857				15.92
Merchant Services			89,915				261,467				34.39				40,690				117,868				34.52
NetSpend			42,481				162,620				26.12				36,442				141,621				25.73
Intersegment			—				(8,089	)							—				(8,461	)
Corporate admin and other			(33,335	)											(33,386	)
Subtotal		$	227,549				794,937				28.62	%		$	165,484				622,084				26.60	%
Acquisition intangible amortization			(58,486	)											(22,852	)
TransFirst M&A expenses*			(20,676	)											—
Share-based compensation			(12,566	)											(12,030	)
Operating income and margin**		$	135,821				794,937				17.09	%		$	130,602				622,084				20.99	%
Reimbursable items							66,137												70,568
Interchange and assessments							290,513												—
Operating income and margin (US GAAP)		$	135,821				1,151,587				11.79	%		$	130,602				692,652				18.86	%
		Six Months Ended June 30, 2016												Six Months Ended June 30, 2015
		Adjusted Segment Operating Income				Net Revenue				Adjusted Operating Margin				Adjusted Segment Operating Income				Net Revenue				Adjusted Operating Margin
North America Services		$	237,525				600,809				39.53	%		$	210,956				553,418				38.12	%
International Services			26,040				157,125				16.57				20,336				157,587				12.90
Merchant Services			128,272				382,079				33.57				74,805				228,266				32.77
NetSpend			84,682				347,613				24.36				71,909				296,695				24.24
Intersegment			—				(21,045	)							—				(18,098	)
Corporate admin and other			(62,802	)											(58,017	)
Subtotal		$	413,717				1,466,581				28.21	%		$	319,989				1,217,868				26.27	%
Acquisition intangible amortization			(81,407	)											(46,718	)
TransFirst M&A expenses*			(24,078	)											—
Share-based compensation			(20,724	)											(20,173	)
Operating income and margin**		$	287,508				1,466,581				19.60	%		$	253,098				1,217,868				20.78	%
Reimbursable items							133,871												136,940
Interchange and assessments							290,513												—
Operating income and margin (US GAAP)		$	287,508				1,890,965				15.20	%		$	253,098				1,354,808				18.68	%

 

*	Costs associated with the TransFirst acquisition and integration which are included in selling, general and administative expenses.

**	Operating margin on net revenue.

 

 

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