2012 Fourth Quarter and Year to Date Results January 22, 2013 © 2013 Total System Services, Inc.® All rights reserved worldwide. People-Centered Payments Exhibit 99.2 |
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’ 2011 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 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Forward-Looking Statements |
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; free cash flow; and EBITDA. The most comparable GAAP measures to these measures are revenues; operating margin; revenues; 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 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Phil Tomlinson Chairman and Chief Executive Officer People-Centered Payments ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Jim Lipham Chief Financial Officer People-Centered Payments ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Consolidated Selected Financial Highlights 6 $ 479,100 $ 472,234 1.5% Total Revenues $ 1,870,972 $ 1,808,966 3.4% 418,569 407,683 2.7 Revenues Before Reimbursable Items 1,618,491 1,540,698 5.0 89,831 89,718 0.1 Operating Income 357,652 322,456 10.9 60,862 59,874 1.7 Net Income Attributable to TSYS Common Shareholders 244,280 220,559 10.8 2,668.6 2,347.3 13.7 Total Cardholder Transactions (in millions) 9,776.8 8,645.0 13.1 $0.33 $0.31 3.7 Earnings Per Share Attributable to TSYS Common Shareholders $1.30 $1.15 13.1 YTD 2012 YTD 2011 Percent Change (in thousands, except per share data) 4 Qtr 2012 4 Qtr 2011 Percent Change th th ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
2012 YTD Revenue Change Revenues Before Reimbursable Items 7 10% 15% 5% 0% 5.1% Internal Growth New Clients 3.2% Acquisitions Lost Business, Non-recurring Items and Price Compression (4.7%) Reported 5.0% Currency (0.4%) 1.8% ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Consumer Credit 200.5 195.0 2.8 200.5 195.0 2.8 Retail 25.0 24.6 2.0 25.0 24.1 3.8 Total Consumer 225.5 219.6 2.7 225.5 219.1 2.9 Commercial 37.1 35.2 5.3 37.1 36.3 2.3 Other 12.8 7.9 61.4 12.8 11.1 15.3 Subtotal 275.4 262.7 4.8 275.4 266.4 3.4 Prepaid / Stored Value 115.9 85.2 36.1 115.9 114.3 1.4 Government Services 57.0 29.7 92.0 57.0 48.8 16.8 Commercial Card Single Use 31.1 26.6 17.1 31.1 36.8 (15.4 ) Total AOF 479.4 404.2 18.6 479.4 466.4 2.8 Consolidated Accounts on File Portfolio Summary (in millions) Dec 2012 Dec 2011 % Change Dec 2012 Sep 2012 % Change 8 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Key Drivers 4Q 2012 Year Over Year Segment Financial Highlights • Strong internal growth • Increased volumes • Pricing concessions • Lost business North America Services 9 • Total accounts on file were 424.8 million, an increase of 20.9% • Excluding prepaid, govt. services and single use, accounts on file were 222.7 million, an increase of 5.5% • Total cardholder transactions were 2,194.7 million, an increase of 12.7% Volumes ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Revenues $247.6 million Increase of 0.6% Excluding Reimbursables $213.6 million Increase of 1.9% Operating Income $77.8 million Increase of 16.9% Operating Margin 31.4% Excluding Reimbursables 36.4% Same Client Transactions 2,154.6 million Increase of 13.2% |
4Q 2012 Year Over Year Segment Financial Highlights • Strong internal growth • Deconversion fee • Lost business • Conversion of new clients • Dedication of more internal resources, previously shared between our North America and International segments 10 Key Drivers Volumes • Accounts on file were 54.6 million, an increase of 3.5% • Total cardholder transactions were 474.0 million, an increase of 18.6% ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. International Services Revenues $107.0 million Increase of 0.4% Constant currency basis $107.0 million Excluding Reimbursables $102.4 million Decrease of 0.4% Operating Income $6.1 million Decrease of 49.4% Operating Margin 5.7% Excluding Reimbursables 5.9% Same Client Transactions 441.0 million Increase of 12.9% |
Merchant Services • Upward trends in transaction volumes • Strong dollar volume growth in direct acquiring • Acquisition of Central Payment 11 Key Drivers Volumes • Point-of-Sale transactions were 1,153.2 million, a decrease of 5.2% • Excluding deconverted clients, Point-of-Sale transactions increased 9.9% 4Q 2012 Year Over Year Segment Financial Highlights Revenues $129.4 million Increase of 2.5% Excluding Reimbursables $105.9 million Increase of 5.5% Operating Income $30.4 million Decrease of 7.6% Operating Margin 23.5% Excluding Reimbursables 28.8% ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Cash Flow Strength: 2012 Consolidated Financial Highlights (in millions) 12 $600 $525 $450 $375 $300 $225 $150 $75 $528 $0 $456 $338 $250 $248 EBITDA Cash flow from operations Free cash flow Net income Ending cash ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
2013 Guidance 13 $1,955 to $1,995 5% to 7% Revenues Before Reimbursable Items 1,711 to 1,746 6 to 8 Income attributable to TSYS Common Shareholders 266 to 272 9 to 11 Earnings per Share from attributable to TSYS Common Shareholder $1.43 to $1.45 10% to 12% (in millions, except per share data) Range Percent Change Range Change ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
2013 Guidance Revenue Change Revenues Before Reimbursable Items 14 20% 10% 0% Internal Growth New Clients 3-4% Acquisitions Lost Business, Non-recurring Items and Price Compression (5-7%) Guidance 6-8% Currency 5-7% 3-4% 0% ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Appendix People-Centered Payments ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items Three Months Ended Twelve Months Ended Total Revenues $ 472,234 $ 1,870,972 Reimbursable Items 64,551 252,481 268,268 Revenues Before Reimbursable Items $ 407,683 $ 1,618,491 $ 1,540,698 (in thousands) 16 12/31/12 12/31/11 12/31/11 12/31/12 $ 1,808,966 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. $ 479,100 60,531 $ 418,569 |
Operating Income (a) Total Revenues (b) Reimbursable Items Revenues Before Reimbursable Items(c) Operating Margin (a)/(b) Operating Margin Excluding Reimbursables (a)/(c) Appendix Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items North America International Merchant (in thousands) 17 Three Months Ended Three Months Ended Three Months Ended 12/31/12 12/31/11 12/31/11 12/31/11 $ 77,801 247,612 33,973 31.42% 36.42% $ 66,560 246,190 36,572 27.04% 31.75% 107,000 4,573 102,427 106,560 3,768 102,792 129,413 23,558 105,855 126,224 25,845 100,379 5.66% 5.91% 23.52% 11.66% 26.11% 11.25% 28.75% 32.83% $ 6,058 209,618 213,639 12/31/12 $ 11,983 12/31/12 $ 30,438 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. $ 32,958 |
Twelve Months Ended 12/31/12 12/31/11 Percentage Change Three Months Ended 12/31/12 12/31/11 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) 18 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Consolidated: Constant Currency (1) $ 479,027 $ 472,234 1.4% $1,876,979 $ 1,808,966 3.8% Foreign Currency (2) 73 --- (6,007) --- Total Revenues $479,100 $472,234 1.5% $1,870,972 $1, 808,966 3.4% International Services: Constant Currency (1) $ 106,985 $106,560 0.4% $ 419,993 $ 394,831 6.4% Foreign Currency (2) 15 --- (6,526) --- Total Revenues $107,000 $106,560 0.4% $413,467 $394,831 4.7% |
Appendix Non-GAAP Reconciliation – EBITDA Twelve Months Ended 12/31/2012 (in thousands) 19 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Net Income $ 249,922 Adjusted for: Deduct: Equity in Income of Equity Investments (10,171) Add: Income Taxes 115,103 Add: Nonoperating expense 2,798 Add: Depreciation and Amortization 170,610 EBITDA $ 528,263 |
Appendix Non-GAAP Reconciliation – Free Cash Flow Twelve Months Ended 12/31/2012 (in thousands) 20 Cash Flows from Operating Activities $ 455,753 Less: Purchase of Property and Equipment (31,434) Additions to Licensed Computer Software from Vendors (33,001) Additions to Internally Developed Computer Software (19,285) Additions to Contract Acquisition Costs (34,384) Free Cash Flow $ 337,649 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |