Exhibit 99.1 |
For Immediate Release
Contacts:
James B. Lipham Chief Financial Officer +1.706.649.2262 | Leo S. Berard TSYS Investor Relations +1.706.649.5220 leoberard@tsys.com |
TSYS Reports 41.7% Increase in Net Income for First Quarter Columbus, Ga., April 19, 2005—TSYS® today announced that its financial results for the first quarter of 2005 had exceeded its earnings per share (EPS) expectations. Below is a summary of the results for the quarter ended March 31, 2005, as compared to the same period in 2004: |
Three Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|
March 31, | |||||||||
(dollars in millions, except earnings per share data) | 2005 | 2004 | Percent Change | ||||||
Revenues Before Reimbursables | $280 | .4 | 224 | .6 | 24 | .8 | |||
Total Revenues | 350 | .0 | 285 | .2 | 22 | .7 | |||
Operating Income | 66 | .3 | 44 | .1 | 50 | .2 | |||
Net Income | 46 | .1 | 32 | .6 | 41 | .7 | |||
Basic EPS | 0. | 23 | 0. | 17 | 41 | .5 | |||
Diluted EPS | 0. | 23 | 0. | 17 | 41 | .7 |
“We are extremely pleased with the results for the first quarter of 2005 and believe this gives us a great start towards another record year,” said Philip W. Tomlinson, chief executive officer. “The results for the quarter are above our expectations. TSYS’ strength for the quarter included the consolidated results of Vital, strong growth in ancillary services and good expense controls. As a result, we are increasing our earnings guidance from 19–22% to 22–25% for the year.” Highlights for the quarter include: |
• | TSYS acquired the remaining 50% interest in Vital Processing Services, L.L.C., in Tempe, Arizona, from Visa U.S.A. and began consolidating its results on March 1, 2005. |
• | TSYS signed a seven-year contract with ABN AMRO Bank, Barneveld, Netherlands, which represents the first processing agreement with a card issuer based in continental Europe. Additionally, TSYS will provide customer care services on behalf of ABN AMRO by managing a customer contact center in The Netherlands. The center will support full end-to-end customer service, including general customer service queries, application processing, chargebacks and dispute handling, fraud and collections. |
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TSYS Reports Results For First Quarter 2005/Page 2 of 12
• | TSYS and Bank of America agreed to add five years to the current agreement to provide exclusive processing services through 2014. The expanded relationship covers all consumer and commercial credit Visa and MasterCard accounts issued by Bank of America, as well as the recently acquired portfolio of FleetBoston Financial Corp., which was converted to TSYS in mid-March. |
• | MBNA, based in Wilmington, Delaware, extended its existing seven-year relationship with TSYS for commercial-card processing services by an additional three years. |
• | TSYS successfully implemented two retail gift card programs in Europe — one for HMV, the largest retailer of music, DVD and games in the UK and another for Hunkemöller, a leading specialist retailer in The Netherlands, with outlets in Germany, Denmark, France, Luxembourg and Belgium. |
• | TSYS announced that Answers, etc. will use TSYS Prepaid’s platform to power the Zoomcard Prepaid MasterCard. The Zoomcard, issued by KeyBank, is accepted at more than 900,000 ATMs and more than 24 million merchant locations worldwide. |
• | TSYS Prepaid announced it was sponsoring the creation of an industry-wide prepaid card trade association. The trade association will help advance the rapidly evolving prepaid market, focusing primarily on branded cards using open networks such as Visa, MasterCard as well as EFT and ATM networks. |