![]() 2011 Third Quarter Results October 25, 2011 © 2011 Total System Services, Inc.®. Proprietary. 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’ 2010 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 ©2011 Total System Services, Inc.® . Proprietary. All rights reserved 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; the impact of termination fees on total revenues, operating income, income from continuing operations, and earnings per share from continuing operations; free cash flow; and EBITDA. The most comparable GAAP measures to these measures are revenues; operating margin; revenues; revenues, operating income, income from continuing operations and earnings per share from continuing operations; 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 ©2011 Total System Services, Inc.®. Proprietary. All rights reserved worldwide. |
![]() Phil Tomlinson Chairman and Chief Executive Officer © 2011 Total System Services, Inc.®. Proprietary. All rights reserved worldwide. |
![]() Jim Lipham Chief Financial Officer © 2011 Total System Services, Inc.®. Proprietary. All rights reserved worldwide. |
![]() ![]() ![]() Consolidated Selected Financial Highlights 6 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. $ 459,747 $ 433,236 6.1% Total Revenues $ 1,336,732 $ 1,277,586 4.6% 390,161 363,192 7.4 Revenues Before Reimbursable Items 1,133,015 1,068,592 6.0 81,180 78,914 2.9 Operating Income 232,738 238,455 (2.4) 58,148 48,206 20.6 Income from Continuing Operations to TSYS Common Shareholders 160,684 149,937 7.2 58,148 45,743 27.1 Net Income Attributable to TSYS Common Shareholders 160,684 146,773 9.5 2,233.3 1,981.2 12.7 Total Cardholder Transactions (in millions) 6,321.8 5,582.2 13.3 $0.30 $0.25 23.9 Earnings Per Share from Continuing Operations Attributable to TSYS Common Shareholders $0.83 $0.76 9.7 YTD 2011 YTD 2010 Percent Change (in thousands, except per share data) 3rd Qtr 2011 3rd Qtr 2010 Percent Change |
![]() ![]() 2011 YTD Revenue Change Revenues Before Reimbursable Items 7 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 10% 25% 5% 0% 4.1% Internal Growth New Clients 2.6% Acquisitions 3.6% Lost Business, Non-recurring Items and Price Compression (5.8%) Reported 6.0% Currency 20% 15% 1.5% |
![]() Consolidated Accounts on File Portfolio Summary Consumer Credit 194.2 180.2 7.7 194.2 187.6 3.5 Government Services 32.6 26.9 21.4 32.6 30.0 8.7 Retail 23.2 23.1 0.2 23.2 23.7 (2.4) Total Consumer 250.0 230.2 8.6 250.0 241.3 3.6 Commercial 59.6 51.9 14.7 59.6 55.2 7.9 Other 7.0 5.7 23.6 7.0 6.7 4.9 Subtotal 316.6 287.8 10.0 316.6 303.2 4.4 Prepaid / Stored Value 75.8 51.4 47.7 75.8 72.8 4.1 Total AOF 392.4 339.2 15.7 392.4 376.0 4.3 (in millions) Sep 2011 Sep 2011 Sep 2010 Sep 2010 % Change % Change Sep 2011 Sep 2011 Jun 2011 Jun 2011 % Change % Change 8 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Key Drivers 3Q 2011 Year Over Year Segment Financial Highlights • Strong organic growth • Increased volumes • Volumes – Accounts on file were 341.9 million – Total cardholder transactions were 1,872.8 million, an increase of 12.9% Revenues $243.9 million Excluding Reimbursables $206.1 million Operating Income $68.0 million Operating Margin 27.9% Excluding Reimbursables 33.0% Same Client Transactions 1,867.6 million Increase of 12.7% North America Services 9 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Key Drivers 3Q 2011 Year Over Year Segment Financial Highlights • Favorable currency impact on revenues of $4.9 million • Conversion of new clients • Volumes – Accounts on file were 50.5 million – Total cardholder transactions were 360.5 million, an increase of 11.7% 10 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Revenues $99.9 million Constant currency basis $95.0 million Operating Income $8.3 million Operating Margin 8.3% Excluding Reimbursables 8.6% Same Client Transactions 347.5 million Increase of 7.8% International Services |
![]() Key Drivers 3Q 2011 Year Over Year Segment Financial Highlights • Acquisition of TermNet • Decline in revenues associated with deconverted clients • Volumes – Point-of-Sale Transactions were 1,263.3 million, a decrease of 6.1% – Excluding deconverted clients, Point-of-Sale Transactions increased 5.1% 11 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Cash Flow Strength: 2011 TTM Consolidated Financial Highlights $473 $407 $240 $213 $281 $0 $75 $150 $225 $300 $375 $450 $525 EBITDA Cash flow from operations Free cash flow Net income Ending cash (in millions) TTM = Trailing Twelve Months 12 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Revised 2011 Guidance ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 13 Range Change Range Percent Change Total Revenues $1,786 to $1,800 4 % to 5% Reimbursable Items 266 to 270 (3) to (2) Revenues Before Reimbursable Items 1,520 to 1,530 5 to 6 Income from Continuing Operations Available to TSYS Common Shareholders 219 to 221 11 to 12 Earnings per Share from Continuing Operations $1.14 to $1.15 14 to 15 Average Shares 192.0 (in millions, except per share data) |
![]() Appendix © 2011 Total System Services, Inc.®. Proprietary. All rights reserved worldwide. |
![]() Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items Three Months Ended Nine Months Ended 9/30/11 9/30/10 9/30/11 9/30/10 Total Revenues $ 459,747 $ 433,236 $ 1,336,732 $ 1,277,586 Reimbursable Items 69,586 70,044 203,717 208,994 Revenues Before Reimbursable Items $ 390,161 $ 363,192 $ 1,133,015 $ 1,068,592 (in thousands) 15 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Three Months Ended 9/30/11 9/30/10 Three Months Ended 9/30/11 9/30/10 Three Months Ended 9/30/11 9/30/10 Operating Income (a) $ 68,016 $ 52,645 $ 8,279 $ 12,305 $ 27,398 $ 31,439 Total Revenues (b) 243,899 231,547 99,891 85,327 122,933 125,178 Reimbursable Items 37,812 38,647 3,751 3,078 29,713 30,144 Revenues Before Reimbursable Items(c) 206,087 192,900 96,140 82,249 93,220 95,034 Operating Margin (a)/(b) 27.89% 22.74% 8.29% 14.42% 22.29% 25.12% Operating Margin Excluding Reimbursables (a)/(c) 33.00% 27.29% 8.61% 14.96% 29.39% 33.08% Appendix Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items North America International Merchant (in thousands) 16 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Nine Months Ended 9/30/11 9/30/10 Percentage Change Three Months Ended 9/30/11 9/30/10 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) $ 454,852 $ 433,236 5.0% $ 1,319,653 $ 1,277,586 3.3% Foreign Currency (2) 4,895 --- 17,079 --- Total Revenues 459,747 433,236 6.1% 1,336,732 1,277,586 4.6% International Services: Constant Currency (1) $ 94,974 $ 85,327 11.3% $ 271,137 $242,706 11.7% Foreign Currency (2) 4,916 --- 17,134 --- Total Revenues $99,891 $85,327 17.1% $288,271 $242,706 18.8% 17 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Appendix Non-GAAP Reconciliation – EBITDA Trailing Twelve Months Ended 9/30/2011 Net Income $ 213,385 Adjusted for: Add: Discontinued Operations 81 Deduct: Equity in Income of Equity Investments (10,254) Add: Income Taxes 94,921 Add: Nonoperating expense 5,578 Add: Depreciation and Amortization 169,407 EBITDA $ 473,118 (in thousands) 18 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Appendix Non-GAAP Reconciliation – Free Cash Flow Trailing Twelve Months Ended 9/30/2011 Cash Flows from Operating Activities $ 406,923 Less: Purchase of Property and Equipment (34,820) Additions to Licensed Computer Software from Vendors (52,635) Additions to Internally Developed Computer Software (23,577) Additions to Contract Acquisition Costs (55,401) Free Cash Flow $ 240,490 (in thousands) 19 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |