Exhibit 99.1

 

 

Picture 6

 

Picture 7

 

 

 

 

Picture 1

 

 

 

TSYS Reports First Quarter Earnings

 

Columbus, Ga., April 23, 2019  – TSYS (NYSE:  TSS) today reported results for the first quarter of 2019.

 “Our first quarter results provide a great start to the year. We delivered strong performance across all three of our segments, which helped to solidify our expectations for the remainder of 2019,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.

 

Highlights for the first quarter of 2019 vs. 2018:

·

Total revenues were $1.03  billion, an increase of 4.8%.  On a constant currency basis (non-GAAP), total revenues increased 5.6%.

·

Net revenue (non-GAAP), which excludes reimbursable items, was $980.3 million, an increase of 4.8%. On a constant currency basis (non-GAAP), net revenue increased 5.6%.

·

Net income attributable to TSYS common shareholders was $161.6 million, an increase of 13.9%.  Diluted EPS was $0.90, an increase of 16.1%.

·

Adjusted earnings (non-GAAP) were $215.4 million, an increase of 3.8%.  Adjusted diluted EPS (non-GAAP) was  $1.20, an increase of 5.8%.

·

Adjusted EBITDA (non-GAAP) was $357.3 million, an increase of 8.0%.

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, April 23. The conference call can be accessed via live webcast 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.

 


 

Page of 14

 

 

 

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, revenues measured on a constant currency basis, 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 10 to 14 in the financial schedules of this release.

 

About TSYS

TSYS® (NYSE: TSS) is a leading global payments provider, offering seamless, secure and innovative solutions across the payments spectrum — for issuers, merchants and consumers. We succeed because we put people and their needs at the heart of every decision to help them unlock payment opportunities.   It’s an approach we call ‘People-Centered Payments®.

Our headquarters are located in Columbus, Ga., U.S.A., with approximately 13,000 team members and local offices across 13 countries. TSYS generated revenue of $4.0 billion in 2018, while processing more than 32.3 billion transactions. We are a member of The Civic 50 and were named one of the 2018 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’ performance for the first quarter helped to solidify its expectations for its financial performance for the remainder of 2019, 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


 

Page of 14

 

 

of important factors could cause actual results or events to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to, the material breach of security of any of TSYS’ systems; TSYS’ ability to integrate acquisitions and achieve the anticipated growth opportunities and other benefits of the acquisitions, particularly the recently completed Cayan 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) and the uncertainty over the terms and timing of the expected departure; expenses incurred associated with the signing of a significant client; conversions and deconversions of clients’ portfolios do not occur 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 potential for our systems and software to contain undetected errors, viruses or defects;  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; one or more of the assumptions upon which earnings guidance for 2019 is based is inaccurate; 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.

 

 

Contacts:

Cyle Mims

TSYS Media Relations

+1.706.644.3110

cylemims@tsys.com 

 

Shawn Roberts

TSYS Investor Relations

+1.706.644.6081

shawnroberts@tsys.com 

 

- more


 

Page 4 of 14

 

 

 

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

Percent

 

 

 

  

2019

  

2018

  

Change

    

 

Total revenues

 

$

1,034,531

 

987,170

 

4.8

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

632,212

 

613,365

 

3.1

 

 

Selling, general and administrative expenses

 

 

179,049

 

185,534

 

(3.5)

 

 

Total expenses

 

 

811,261

 

798,899

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

223,270

 

188,271

 

18.6

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating expenses

 

 

(42,991)

 

(37,642)

 

(14.2)

 

 

Income before income taxes and equity in income of equity investments

 

 

180,279

 

150,629

 

19.7

 

 

Income tax expense

 

 

29,899

 

18,135

 

64.9

 

 

Income before equity in income of equity investments

 

 

150,380

 

132,494

 

13.5

 

 

Equity in income of equity investments, net of tax

 

 

11,227

 

10,608

 

5.8

 

 

Net income

 

 

161,607

 

143,102

 

12.9

 

 

Net income attributable to noncontrolling interests

 

 

 —

 

(1,261)

 

100.0

 

 

Net income attributable to TSYS common shareholders

 

$

161,607

 

141,841

 

13.9

%  

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (EPS):

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

0.91

 

0.78

 

16.0

%  

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.90

 

0.77

 

16.1

%  

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

(includes participating securities)

 

 

 

 

 

 

 

 

 

Basic

 

 

178,435

 

181,612

 

 

 

 

Diluted

 

 

179,886

 

183,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.13

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP measures:*

 

 

 

 

 

 

 

 

 

Net revenue

 

$

980,270

 

935,497

 

4.8

%  

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

357,287

 

330,922

 

8.0

%  

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings

 

$

215,446

 

207,586

 

3.8

%  

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted EPS

 

$

1.20

 

1.13

 

5.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

*    See reconciliation of non-GAAP measures.

 

 

- more  -


 

Page 5 of 14

 

 

 

TSYS

Segment Breakdown

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

 

Change

 

 

    

2019

    

2018

    

$

    

%

    

Adjusted segment EBITDA:

 

 

 

 

 

 

 

 

 

 

Issuer Solutions (a)

 

$

204,934

 

195,764

 

9,170

 

4.7

%  

Merchant Solutions (b)

 

 

128,836

 

118,940

 

9,896

 

8.3

 

Consumer Solutions (c)

 

 

63,693

 

53,667

 

10,026

 

18.7

 

Corporate admin and other

 

 

(40,176)

 

(37,449)

 

(2,727)

 

(7.3)

 

Total (d)

 

 

357,287

 

330,922

 

26,365

 

8.0

 

Less:

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

10,714

 

6,295

 

4,419

 

70.2

 

Cayan and Transfirst M&A and integration expenses

 

 

3,710

 

14,368

 

(10,658)

 

(74.2)

 

Depreciation and amortization

 

 

103,710

 

104,389

 

(679)

 

(0.7)

 

Client incentive/contract cost amortization

 

 

8,038

 

6,874

 

1,164

 

16.9

 

Contract cost asset amortization

 

 

7,845

 

10,726

 

(2,881)

 

(26.9)

 

Operating income

 

 

223,270

 

188,270

 

35,000

 

18.6

 

Nonoperating expenses

 

 

(42,991)

 

(37,641)

 

(5,350)

 

(14.2)

 

Income before income taxes and equity in income of equity investments

 

$

180,279

 

150,629

 

29,650

 

19.7

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by segment:

 

 

 

 

 

 

 

 

 

 

Issuer Solutions (e)

 

$

433,473

 

423,574

 

9,899

 

2.3

%  

Merchant Solutions (f)

 

 

342,956

 

317,403

 

25,553

 

8.1

 

Consumer Solutions (g)

 

 

219,178

 

210,489

 

8,689

 

4.1

 

Segment net revenue

 

 

995,607

 

951,466

 

44,141

 

4.6

 

Less: Intersegment revenues

 

 

15,337

 

15,969

 

(632)

 

(4.0)

 

Net revenue (h)

 

 

980,270

 

935,497

 

44,773

 

4.8

 

Add: reimbursable items

 

 

54,261

 

51,673

 

2,588

 

5.0

 

Total revenues

 

$

1,034,531

 

987,170

 

47,361

 

4.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted segment EBITDA margin on segment net revenue:

 

 

 

 

 

 

 

 

 

 

  Issuer Solutions (a)/(e)

 

 

47.3%

 

46.2%

 

 

 

 

 

  Merchant Solutions (b)/(f)

 

 

37.6%

 

37.5%

 

 

 

 

 

  Consumer Solutions (c)/(g)

 

 

29.1%

 

25.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin on net revenue: (d)/(h)

 

 

36.4%

 

35.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

- more -

 


 

Page 6 of 14

 

 

TSYS

Segment Breakdown

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

 

Change

 

 

 

    

2019

    

2018

    

$

    

%

    

 

Depreciation and amortization by segment:

 

 

 

 

 

 

 

 

 

 

 

Issuer Solutions

 

$

35,167

 

28,331

 

6,836

 

24.1

%

XX

Merchant Solutions

 

 

7,682

 

7,825

 

(143)

 

(1.8)

 

 

Consumer Solutions

 

 

4,416

 

4,259

 

157

 

3.7

 

 

Depreciation and amortization

 

 

47,265

 

40,415

 

6,850

 

16.9

 

 

Acquisition intangible amortization

 

 

54,957

 

63,023

 

(8,066)

 

(12.8)

 

 

Corporate admin and other

 

 

1,488

 

951

 

537

 

56.5

 

 

Total depreciation and amortization

 

$

103,710

 

104,389

 

(679)

 

(0.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment statistical data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer Solutions

 

 

 

 

 

 

 

 

 

 

 

Total transactions (in millions)

 

 

5,948.9

 

5,547.9

 

401.0

 

7.2

%

 

Total Accounts on File (AOF) (in millions)

 

 

756.0

 

811.3

 

(55.3)

 

(6.8)

%

 

Total Traditional AOF (in millions)

 

 

628.2

 

578.6

 

49.6

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant Solutions

 

 

 

 

 

 

 

 

 

 

 

Point-of-sale transactions (in millions)

 

 

1,524.3

 

1,339.6

 

184.7

 

13.8

%

 

Dollar sales volume (in millions)

 

$

40,241.6

 

37,266.7

 

2,974.9

 

8.0

%

 

Segment net revenue per transaction

 

$

0.225

 

0.237

 

(0.012)

 

(5.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Solutions

 

 

 

 

 

 

 

 

 

 

 

Gross dollar volume (in millions)

 

$

10,053.5

 

9,690.0

 

363.5

 

3.8

%

 

Direct deposit 90-day active cards (in thousands)

 

 

2,681.5

 

2,669.9

 

11.6

 

0.4

%

 

90-day active cards (in thousands)

 

 

5,226.9

 

5,225.5

 

1.4

 

0.0

%

 

% of 90-day active cards with direct deposit

 

 

51.3%

 

51.1%

 

 

 

 

 

 


- more -

 


 

Page 7 of 14

 

 

TSYS

Condensed Balance Sheet

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

    

March 31, 2019

    

December 31, 2018

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

494,646

 

471,156

Accounts receivable, net

 

 

490,045

 

450,322

Contract assets

 

 

44,473

 

30,950

Other current assets

 

 

200,229

 

188,355

Total current assets

 

 

1,229,393

 

1,140,783

Goodwill

 

 

4,115,380

 

4,114,838

Software and other intangible assets, net

 

 

1,288,454

 

1,331,238

Property and equipment, net

 

 

385,400

 

383,074

Operating lease right-of-use assets, net

 

 

206,239

 

 —

Contract assets - long-term

 

 

53,865

 

47,839

Contract costs assets - long-term

 

 

147,342

 

145,598

Other long term assets

 

 

348,059

 

305,339

Total assets

 

$

7,774,132

 

7,468,709

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

73,061

 

97,956

Current portion of long-term borrowings, finance leases and license agreements

 

 

38,710

 

29,125

Current portion of operating lease liabilities

 

 

49,469

 

 —

Contract liabilities

 

 

54,581

 

47,227

Other current liabilities

 

 

349,556

 

341,293

Total current liabilities

 

 

565,377

 

515,601

Long-term borrowings, finance leases and license agreements, excluding current portion

 

 

4,180,733

 

3,889,541

Long-term operating lease liabilities, excluding current portion

 

 

168,505

 

 —

Deferred income tax liabilities

 

 

409,706

 

380,278

Contract liabilities - long-term

 

 

23,805

 

21,489

Other long-term liabilities

 

 

73,246

 

75,894

Total liabilities

 

 

5,421,372

 

4,882,803

Equity

 

 

2,352,760

 

2,585,906

Total liabilities and equity

 

$

7,774,132

 

7,468,709

 

 

 

 

 

- more -


 

Page 8 of 14

 

 

TSYS

Selected Cash Flow Highlights

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

    

2019

    

2018

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

161,607

 

143,102

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Equity in income of equity investments, net of tax

 

 

(11,227)

 

(10,608)

Depreciation and amortization

 

 

103,710

 

104,389

Amortization of debt issuance costs

 

 

1,322

 

1,035

Amortization of operating lease right-of-use assets

 

 

12,654

 

 —

Share-based compensation

 

 

10,714

 

6,295

Deferred income tax expense

 

 

27,745

 

15,180

Other noncash adjustments

 

 

17,158

 

19,775

Changes in operating assets and liabilities

 

 

(96,094)

 

(67,275)

Net cash provided by operating activities

 

 

227,589

 

211,893

 

 

 

 

 

 

Purchases of property and equipment

 

 

(19,396)

 

(22,069)

Additions to licensed computer software from vendors

 

 

(48,628)

 

(13,827)

Additions to internally developed computer software

 

 

(12,405)

 

(10,340)

Cash used in acquisitions, net of cash acquired

 

 

 —

 

(1,036,853)

Other investing activities

 

 

(2,350)

 

(1,550)

Net cash used in investing activities

 

 

(82,779)

 

(1,084,639)

 

 

 

 

 

 

Principal payments on long-term borrowings, finance lease obligations and license agreements

 

 

(157,324)

 

(129,010)

Proceeds from long-term borrowings

 

 

450,000

 

1,040,000

Dividends paid on common stock

 

 

(23,456)

 

(23,496)

Proceeds from exercise of stock options

 

 

6,466

 

26,461

Repurchase of common stock

 

 

(400,013)

 

(24)

Other financing activities

 

 

 —

 

(1)

Net cash (used in) provided by financing activities

 

 

(124,327)

 

913,930

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

2,049

 

1,684

Net increase in cash, cash equivalents and restricted cash

 

 

22,532

 

42,868

Cash, cash equivalents and restricted cash at beginning of period

 

 

474,279

 

451,370

Cash, cash equivalents and restricted cash at end of period

 

$

496,811

 

494,238

 

 

 

 

 

 

Supplemental

 

 

 

 

 

Capital expenditures

 

$

80,429

 

46,236

Free cash flow (non-GAAP)*

 

$

147,160

 

165,657

 

* See reconciliation of non-GAAP measures.

- more -

 

 

 


 

Page 9 of 14

 

TSYS

Supplemental Information

(unaudited)

 

 

Other

Accounts on File (AOF):

 

 

 

 

 

 

 

 

 

 

Total Accounts on File

 

 

 

At

 

At

 

Percent

 

(in millions)

    

March 2019

    

March 2018

    

Change

 

Consumer

 

523.0

 

486.5

 

7.5

%

Commercial

 

60.2

 

55.2

 

8.9

 

Other

 

45.0

 

36.9

 

22.2

 

Traditional AOF

 

628.2

 

578.6

 

8.6

 

Prepaid*/Stored Value

 

11.5

 

38.7

 

(70.3)

 

Commercial Card Single Use

 

116.3

 

97.5

 

19.3

 

Government Services

 

 —

 

96.5

 

(100.0)

 

Total AOF

 

756.0

 

811.3

 

(6.8)

%

 

* Prepaid does not include Consumer Solutions accounts.

 

 

 

 

 

 

 

 

 

 

Growth in AOF:

 

 

 

 

 

 

March 2018 to

 

March  2017 to

(in millions)

    

March 2019

    

March 2018

Beginning balance

 

811.3

 

762.0

Change in accounts on file due to:

 

 

 

 

Internal growth of existing clients

 

57.2

 

53.5

New clients

 

29.2

 

31.8

Purges/Sales

 

(24.0)

 

(34.9)

Deconversions

 

(117.7)

 

(1.1)

Ending balance

 

756.0

 

811.3

 

 

 

- more -

 


 

Page 10 of 14

 

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 2019 financial results using the previous year’s foreign currency exchange rates. On a constant currency basis, TSYS’ total revenues for the first quarter of 2019 were higher 5.6% as compared to a reported GAAP increase of 4.8%.

 

The schedules below also provide a reconciliation of total revenues to net revenue.

 

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 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 2019 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 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.

 

- more -

 

 


 

Page 11 of 14

 

Reconciliation of GAAP to Non-GAAP

 

 

Constant Currency Comparison

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

Percent

 

 

    

2019

    

2018

 

Change

    

Consolidated

 

 

 

 

 

 

 

 

Total revenues (GAAP)

 

$

1,034,531

 

987,170

 

4.8

%  

Foreign currency impact (1)

 

 

8,270

 

 —

 

 

 

Constant currency (2) (non-GAAP)

 

$

1,042,801

 

987,170

 

5.6

%  

 

 

 

 

 

 

 

 

 

Net revenue (non-GAAP)

 

$

980,270

 

935,497

 

4.8

%  

Foreign currency impact (1)

 

 

7,706

 

 —

 

 

 

Constant currency (2) (non-GAAP)

 

$

987,976

 

935,497

 

5.6

%  

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

223,270

 

188,271

 

18.6

%  

Foreign currency impact (1)

 

 

1,897

 

 —

 

 

 

Constant currency (2) (non-GAAP)

 

$

225,167

 

188,271

 

19.6

%  

 

 

 

 

 

 

 

 

 

Issuer Solutions

 

 

 

 

 

 

 

 

Segment net revenue (GAAP)

 

$

433,473

 

423,574

 

2.3

%  

Foreign currency impact (1)

 

 

7,847

 

 —

 

 

 

Constant currency (2) (non-GAAP)

 

$

441,320

 

423,574

 

4.2

%  


(1)   Reflects the impact of calculated changes in foreign currency rates from the comparable period.

(2)   Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.

 

 

Net Revenue

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

Percent

 

 

2019

    

2018

    

Change

    

Total revenues

$

1,034,531

 

987,170

 

4.8

%

Less: reimbursable items

 

54,261

 

51,673

 

5.0

 

Net revenue

$

980,270

 

935,497

 

4.8

%


- more -


 

Page 12 of 14

 

Reconciliation of GAAP to Non-GAAP

 

Adjusted Diluted Earnings per Share

(unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

Percent

 

 

    

2019

    

2018

Change

    

Net income attributable to TSYS common shareholders (GAAP)

 

 

$

161,607

 

141,841

 

13.9

%  

Adjust for amounts attributable to TSYS common shareholders:

 

 

 

 

 

 

 

 

 

Add: Acquisition intangible amortization

 

 

54,957

 

62,988

 

(12.8)

 

Add: Share-based compensation

 

 

10,714

 

6,294

 

70.2

 

Add: Cayan and Transfirst M&A and integration expenses*

 

 

3,710

 

14,368

 

(74.2)

 

Less: Tax impact of adjustments**

 

 

(15,542)

 

(17,905)

 

13.2

 

Adjusted earnings (non-GAAP)

 

$

215,446

 

207,586

 

3.8

%  

 

 

 

 

 

 

 

 

 

Diluted EPS - Net income attributable to TSYS common shareholders

 

 

 

 

 

 

 

 

 

As reported (GAAP)

 

$

0.90

 

0.77

 

16.1

%  

 

 

 

 

 

 

 

 

 

Adjusted diluted EPS (non-GAAP)

 

$

1.20

 

1.13

 

5.8

%  

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

 

179,886

 

183,298

 

 

 


*      Costs associated with the Cayan and Transfirst acquisitions and integrations are included in selling, general and administrative expenses and nonoperating expenses.

**    Certain of these merger and acquisition costs are nondeductible for income tax purposes.

 

 

 

 

- more -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP


 

Page 13 of 14

 

 

Adjusted EBITDA

(unaudited)

(in thousands)