Total System Services (TSS) 8-K TSYS Reports First Quarter 2011 Results

Exhibit 99.1

	PRESS RELEASE

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

For immediate release:

Contact:

Shawn Roberts
TSYS Investor Relations
+1.706.644.6081
shawnroberts@tsys.com

TSYS Reports First Quarter 2011 Results

Columbus, Ga., April 26, 2011 —TSYS (NYSE: TSS) today reported results for the first quarter 2011 with total revenues of $429.4 million, an increase of 3.9% over 2010. Excluding termination fees in 2010, total revenues increased 10.0%. Basic EPS from continuing operations was $0.25. Excluding termination fees in 2010, basic EPS from continuing operations increased 35.1%.

“The economic momentum generated during the last two quarters continues to move us forward, and has reinforced our enthusiasm for 2011. Our same-client cardholder transaction volumes increased 9.6%, marking the sixth consecutive quarter of growth. Organic revenue growth continues to improve with the first quarter at 3.9%. We believe we are in-line to achieve our financial guidance for 2011,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS.

“We continue to enhance shareholder value through our deployment of capital through acquisitions and share repurchases. We completed the purchase of the remaining 49% interest in TSYS Merchant Solutions in January for a net purchase price of $169.5 million. In addition, we purchased 2 million shares of stock during the quarter under our share repurchase plan, bringing the total purchased over the past three quarters to 5 million shares,” said Tomlinson.

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, April 26. The conference call can be accessed via simultaneous Internet broadcast attsys.comby clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage oftsys.com.

Non-GAAP Measures

This press release and the financial highlights section of this release contain the non-GAAP financial measures of revenues and basic EPS excluding revenues from termination fees and the impact of revenues and operating results on a constant currency basis, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP

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financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 10 and 11 of this release.

About TSYS

TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers, supporting cross-border payments in more than 85 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks. For more information, please visit us atwww.tsys.com.

Forward-Looking Statements

This press release contains statements that are not historical facts and constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS’ belief that it will achieve its financial guidance for 2011, and the assumptions underlying such statements including, with respect to TSYS’ earnings guidance for 2011: (1) the economy will not worsen during 2011; (2) there will be no deconversions of large clients during the year; (3) there will be no significant movement in foreign currency exchange rates related to TSYS’ business during 2011; (4) TSYS will not incur significant expenses associated with the conversion of new large clients or acquisitions, or any significant impairment of goodwill or other intangibles; and (5) there will be no significant movements in LIBOR, and no significant draws on the remaining balance of TSYS’ revolving credit facility. These statements are based on the current beliefs and expectations of TSYS’ management 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 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: (1) one or more of the assumptions set forth above upon which TSYS’ 2011 earnings guidance is based is inaccurate; (2) adverse developments with respect to entering into contracts with new clients and retaining current clients; (3) continued consolidation and turmoil in the financial services and other industries during 2011, including the merger of TSYS clients with entities that are not TSYS processing clients, the sale of portfolios by TSYS clients to entities that are not TSYS processing clients and the nationalization or seizure by banking regulators of TSYS clients; (4) TSYS is unable to control expenses and increase market share both domestically and internationally; (5) TSYS is unable to manage the impact of slowing economic conditions and consumer spending; (6) the material breach of security of any of TSYS’ systems; (7) the impact of potential and completed acquisitions, including

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the costs associated therewith and their being more difficult to integrate than anticipated; (8) the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on TSYS and on our clients; (9) changes occur in laws, rules, regulations, credit card association 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; (10) the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; (11) adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; and (12) internal growth rates of TSYS’ existing clients are lower than anticipated whether as a result of unemployment rates, card delinquencies and charge-off rates or otherwise. Additional risks and other factors that could cause actual results 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. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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TSYS Announces First Quarter 2011 Earnings

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TSYS
Financial Highlights
(unaudited)
(in thousands, except per share data)

	Three Months Ended
	March 31,
							Percent
	2011			2010			Change
Total revenues	$	429,430			413,464			3.9	%
Cost of services		301,492			290,538			3.8
Selling, general and administrative expenses		54,910			43,214			27.1
Operating income		73,028			79,712			(8.4	)
Nonoperating income (expenses)		(728	)		(261	)	nm
Income from continuing operations before income taxes, noncontrolling interests and equity in income of equity investments		72,300			79,451			(9.0	)
Income taxes		25,158			28,097			(10.5	)
Income from continuing operations before noncontrolling interests and equity in income of equity investments		47,142			51,354			(8.2	)
Equity in income of equity investments		2,270			893		nm
Income from continuing operations, net of tax		49,412			52,247			(5.4	)
Loss from discontinued operations, net of tax		—			(428	)	nm
Net income		49,412			51,819			(4.6	)
Net income attributable to noncontrolling interests		(622	)		(492	)	nm
Net income attributable to TSYS common shareholders	$	48,790			51,327			(4.9	)%
Basic earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.25			0.26			(4.0	)%
Loss from discontinued operations to TSYS common shareholders		0.00			(0.00	)	nm
Net income attributable to TSYS common shareholders	$	0.25			0.26			(3.2	)%
Diluted earnings per share:
Income from continuing operations to TSYS common shareholders	$	0.25			0.26			(4.1)	%
Loss from discontinued operations to TSYS common shareholders		0.00			(0.00	)	nm
Net income attributable to TSYS common shareholders	$	0.25			0.26			(3.3)	%
Dividends declared per share	$	0.07			0.07
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	48,790			51,755			(5.7)	%
(Loss) income from discontinued operations, net of tax		—			(428	)	nm
Net income	$	48,790			51,327			(4.9)	%

nm = not meaningful

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TSYS Announces First Quarter 2011 Earnings

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TSYS
Earnings Per Share
(unaudited)
(in thousands, except per share data)

	Three Months Ended					Three Months Ended
	March 31, 2011					March 31, 2010
	Common			Participating		Common			Participating
	Stock			Securities		Stock			Securities
Basic Earnings per share:
Net income	$	48,790					51,327
Less income allocated to nonvested awards		(191	)		191		(264	)		264
Net income allocated to common stock for EPS calculation ( a )	$	48,599			191		51,063			264
Average common shares outstanding ( b )		192,851			765		196,160			1,016
Average common shares and participating securities		193,616					197,176
Basic Earnings per share ( a )/( b )	$	0.25			0.25		0.26			0.26
Diluted Earnings per share:
Net income	$	48,790					51,327
Less income allocated to nonvested awards		(191	)		191		(263	)		263
Net income allocated to common stock for EPS calculation ( c )	$	48,599			191		51,064			263
Average common shares outstanding		192,851			765		196,160			1,016
Increase due to assumed issuance of shares related to common equivalent shares outstanding		305					86
Average common and common equivalent shares outstanding ( d )		193,156			765		196,246			1,016
Average common and common equivalent shares and participating securities		193,921					197,262
Diluted Earnings per share ( c )/( d )	$	0.25			0.25		0.26			0.26

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TSYS Announces First Quarter 2011 Earnings
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TSYS
Segment Breakdown
(unaudited)
(in thousands)

	Three Months Ended March 31,
							Change
	2011			2010			$			%
Revenues before reimbursable items
North America Services	$	194,590			215,309			(20,719	)		(9.6	)%
International Services		87,419			76,281			11,138			14.6	%
Merchant Services		86,519			56,773			29,746			52.4	%
Intersegment revenues		(5,885	)		(5,702	)		(183	)		3.2	%
Revenues before reimbursable items from external customers	$	362,643			342,661			19,982			5.8	%
Total revenues
North America Services	$	230,559			254,228			(23,669	)		(9.3	)%
International Services		90,710			79,392			11,318			14.3	%
Merchant Services		115,756			87,318			28,438			32.6	%
Intersegment revenues		(7,595	)		(7,474	)		(121	)		1.6	%
Revenues from external customers	$	429,430			413,464			15,966			3.9	%
Depreciation and amortization
North America Services	$	19,467			20,403			(936	)		(4.6	)%
International Services		11,708			8,595			3,113			36.2	%
Merchant Services		9,146			8,537			609			7.1	%
Corporate Admin		747			981			(234	)		(23.9	)%
Total depreciation and amortization	$	41,068			38,516			2,552			6.6	%
Segment operating income
North America Services	$	55,200			69,788			(14,588	)		(20.9	)%
International Services		11,024			11,283			(259	)		(2.3	)%
Merchant Services		26,923			17,856			9,067			50.8	%
Corporate Admin		(20,119	)		(19,215	)		(904	)		4.7	%
Operating income	$	73,028			79,712			(6,684	)		(8.4	)%
Other:
Reimbursable items:
North America Services	$	35,969			38,918			(2,949	)		(7.6	)%
International Services		3,291			3,111			180			5.8	%
Merchant Services		29,237			30,546			(1,309	)		(4.3	)%
Intersegment revenues		(1,709	)		(1,772	)		63			(3.6	)%
Reimbursable items	$	66,788			70,803			(4,015	)		(5.7	)%
Volumes:
FTEs (continuing operations)
North America Services		4,299			4,519			(220	)		(4.9	)%
International Services		2,118			1,895			223			11.8	%
Merchant Services		1,134			673			461			68.5	%
Corporate Admin		373			311			62			19.9	%
FTEs		7,924			7,398			526			7.1	%

	At						Change
Total assets (in thousands)	3/31/2011			12/31/2010			$			%
North America Services		1,580,240			1,632,882			(52,642	)		(3.2	)%
International Services		427,518			408,880			18,638			4.6	%
Merchant Services		444,219			460,750			(16,531	)		(3.6	)%
Intersegment assets		(666,952	)		(550,251	)		(116,701	)		21.2	%
Total assets		1,785,025			1,952,261			(167,236	)		(8.6	)%

	Three Months Ended March 31,
					Change
	2011		2010		Inc(Dec)			%
North America Segment:
Accounts on File (AOF) (in millions)		309.6		283.1		26.5			9.3	%
Transactions (in millions)		1,626.8		1,458.2		168.6			11.6	%
International Segment:
AOF (in millions)		47.2		40.2		6.9			17.3	%
Transactions (in millions)		326.0		281.3		44.7			15.9	%
Merchant Segment:
Point-of-sale Transactions (in millions)		1,205.7		1,314.3		(108.6	)		(8.3	)%

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TSYS Announces First Quarter 2011 Earnings
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TSYS
Balance Sheet
(in thousands)

	Mar 31, 2011			Dec 31, 2010
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	252,488			394,795
Restricted cash		92			434
Accounts receivable, net		236,952			238,283
Deferred income tax assets		9,552			11,090
Prepaid expenses and other current assets		72,927			77,211
Total current assets		572,011			721,813
Property and equipment, net		297,463			300,102
Computer software, net		236,587			246,424
Contract acquisition costs, net		167,534			166,251
Goodwill		321,990			320,399
Equity investments, net		80,379			77,127
Other intangible assets, net		77,316			83,118
Other assets		31,745			37,027
Total assets	$	1,785,025			1,952,261
Liabilities
Current liabilities:
Current portion of notes payable	$	38,478			39,557
Accrued salaries and employee benefits		14,091			27,414
Accounts payable		32,069			36,068
Current portion of obligations under capital leases		12,898			13,191
Other current liabilities		120,880			111,040
Total current liabilities		218,416			227,270
Notes payable, excluding current portion		191,409			194,703
Deferred income tax liabilities		44,773			42,547
Obligations under capital leases, excluding current portion		27,705			30,573
Other long-term liabilities		57,305			53,363
Total liabilities		539,608			548,456
Redeemable noncontrolling interest		—			146,000
Equity
Shareholders’ equity:
Common stock		20,140			20,133
Additional paid-in capital		95,346			119,722
Accumulated other comprehensive income, net		7,405			(2,585	)
Treasury stock		(149,430	)		(115,449	)
Retained earnings		1,254,554			1,219,303
Total shareholders’ equity		1,228,015			1,241,124
Noncontrolling interests in consolidated subsidiaries		17,402			16,681
Total equity		1,245,417			1,257,805
Total liabilities and equity	$	1,785,025			1,952,261

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TSYS Announces First Quarter 2011 Earnings
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TSYS
Cash Flow
(unaudited)
(in thousands)

	Three Months Ended March 31,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	49,412			51,819
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(2,270	)		(893	)
Dividends received from equity investments		13			—
Net loss (gain) on currency translation adjustments		352			(247	)
Depreciation and amortization		41,068			38,564
Amortization of debt issuance costs		26			38
Share-based compensation		4,332			2,913
Excess tax benefit from share-based payment arrangements		(103	)		(111	)
Asset impairments		773			—
Provisions for (recoveries of) bad debt expense and billing adjustments		204			(658	)
Charges for transaction processing provisions		1,296			849
Deferred income tax benefit		5,827			3,665
(Gain) loss on disposal of equipment, net		(1,497	)		30
Changes in operating assets and liabilities:
Accounts receivable		2,971			9,874
Prepaid expenses, other current assets and other long-term assets		12,093			2,892
Accounts payable		(4,635	)		8,319
Accrued salaries and employee benefits		(13,800	)		(32,707	)
Other current liabilities and other long-term liabilities		6,109			49,188
Net cash provided by operating activities		102,171			133,535
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(5,960	)		(9,170	)
Additions to licensed computer software from vendors		(1,280	)		(3,769	)
Additions to internally developed computer software		(4,478	)		(5,760	)
Proceeds from sale of tradename		4,500			—
Additions to contract acquisition costs		(7,202	)		(9,914	)
Net cash used in investing activities		(14,420	)		(28,613	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt borrowings and capital lease obligations		(8,551	)		(3,731	)
Proceeds from exercise of stock options		1,119			109
Excess tax benefit from share-based payment arrangements		103			111
Repurchase of common stock		(35,700	)		(1,075	)
Purchase of noncontrolling interests		(174,050	)		—
Dividends paid on common stock		(13,556	)		(13,797	)
Net cash used in financing activities		(230,635	)		(18,383	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		577			(2,007	)
Net increase (decrease) in cash and cash equivalents		(142,307	)		84,532
Cash and cash equivalents at beginning of period		394,795			449,955
Cash and cash equivalents at end of period	$	252,488			534,487

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TSYS Announces First Quarter 2011 Earnings
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Supplemental Information:

	Accounts on File at March 31,
							Percent
(in millions)	2011	%		2010	%		Change
Consumer	183.4	51.4	%	182.2	56.3	%	0.6	%
Stored Value	62.3	17.5		40.9	12.7		52.3
Commercial	51.1	14.3		44.1	13.6		16.0
Government services	29.0	8.1		26.3	8.1		10.1
Other	30.9	8.7		29.8	9.3		3.9
	356.7	100.0	%	323.3	100.0	%	10.3	%

Growth in Accounts on File(in millions):

	March 2010 to	March 2009 to
	March 2011	March 2010
Beginning balance	323.3	340.4
Change in accounts on file due to:
Internal growth of existing clients	23.1	24.4
New clients	32.4	29.1
Purges/Sales	(18.4)	(43.4)
Deconversions	(3.7)	(27.2)
Ending balance	356.7	323.3

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TSYS Announces First Quarter 2011 Earnings
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Reconciliation of GAAP to Non-GAAP

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents year-to-date 2011 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 3.0% as compared to a reported GAAP increase of 3.9%, and operating income decreased 9.4% versus a GAAP-reported decrease of 8.4%. The schedule below also provides a reconciliation of revenues and basic EPS excluding revenues from termination fees.

The non-GAAP financial measures of constant currency and revenues and basic EPS excluding revenues from termination fees, with respect to year to date revenues and basic EPS presented by TSYS, are utilized by management to better understand and assess TSYS’ operating results and financial performance. TSYS also uses the non-GAAP financial measures to evaluate and assess TSYS’ financial performance against budget, as well as to evaluate financial performance for executive and management compensation purposes.

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 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 captions 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 the same 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 the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore 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 First Quarter 2011 Earnings
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Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison
(unaudited)
(in thousands)

	Three Months Ended March 31,
					Percent
	2011		2010		Change
Consolidated
Constant currency (1)	$	425,994		413,464		3.0	%
Foreign currency (2)		3,436		—		0.9
Total revenues	$	429,430		413,464		3.9	%
Constant currency (1)	$	72,236		79,712		(9.4	)%
Foreign currency (2)		792		—		1.0
Operating income	$	73,028		79,712		(8.4	)%

(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.

Revenue and BASIC EPS Excluding Termination Fees
(unaudited)
(in thousands except per share data)

	Three Months Ended March 31,
					Percent
	2011		2010		Change
Consolidated
Total Revenues	$	429,430		413,464		3.9	%
Less:
Termination Fees		—		23,139
Total revenues excluding termination fees	$	429,430		390,325		10.0	%
Income from continuing operations, net of tax, available to TSYS common shareholders	$	48,790		51,755		(5.7	)%
Less:
Termination Fees, net of tax		—		14,987
Income from continuing operations, net of tax, available to TSYS common shareholders, excluding termination fees	$	48,790		36,768		32.7	%
Average common shares and participating securities		193,616		197,176
BASIC EPS — Income from continuing operations, net of tax, available to TSYS common shareholders	$	0.25		0.26		(4.0	)%
Less:
Termination Fees, net of tax		—		0.08
BASIC EPS — Income from continuing operations, net of tax, excuding termination fees available to TSYS common shareholders	$	0.25		0.19		35.1	%

Note: Earnings per share may not foot due to rounding.

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