Exhibit 99.1
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Total System Services, Inc. One TSYS Way P.O. Box 2567 Columbus, GA 31902-2567 | | +1.706.649.2307 +1.706.649.5740 www.tsys.com |
For immediate release:
Contacts:
Shawn Roberts
TSYS Investor Relations
+1.706.644.6081
shawnroberts@tsys.com
TSYS Reports Third Quarter Adjusted EPS Grew 40.2%
Raises 2015 Adjusted EPS and Revenue Guidance
COLUMBUS, Ga., October 27, 2015 — TSYS (NYSE: TSS) today reported results for the third quarter and year to date.
“We are very pleased with our outstanding third quarter results. These exceptional results were driven by the performance of our clients, the businesses we serve, the consumers who buy and use our products and our team members executing to our strategic plan,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.
“As a result of this continued strong performance, we are raising our guidance range for revenues before reimbursables to12-13%, up from the previous range of 10-12%, and our adjusted earnings per share (EPS) guidance range to 24-26%, up from the previous range of 15-17%,” said Woods.
Highlights for the third quarter of 2015 include:
| • | | Adjusted EPS from continuing operations were $0.78, an increase of 40.2%. On a GAAP basis, basic EPS from continuing operations were $0.66, an increase of 46.7%. |
| • | | Excluding the impact from discrete tax items of approximately $0.13 per share in the quarter, adjusted EPS was $0.65, an increase of 17.2%. |
| • | | Income from continuing operations attributable to TSYS’ shareholders was $120.6 million, an increase of 45.5%. |
| • | | Adjusted EBITDA was $238.9 million, an increase of 20.6%. |
| • | | Total revenues for the quarter were $707.9 million, an increase of 14.8%. Revenues before reimbursable items were $636.4 million, an increase of 15.1%. |
| • | | Adjusted operating margin was 31.0%. GAAP operating margin was 23.0%. |
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TSYS Reports Third Quarter Adjusted EPS Grew 40.2%
Highlights for the first nine months of 2015 include:
| • | | Adjusted EPS from continuing operations were $1.89, an increase of 36.8%. On a GAAP basis, basic EPS from continuing operations were $1.53, an increase of 48.2%. |
| • | | Excluding the impact from discrete tax items of approximately $0.13 per share year to date, adjusted EPS was $1.76, an increase of 27.5%. |
| • | | Income from continuing operations attributable to TSYS’ shareholders was $281.2 million, an increase of 46.5%. |
| • | | Adjusted EBITDA was $638.9 million, an increase of 23.2%. |
| • | | Total revenues were $2.1 billion, an increase of 13.8%. Revenues before reimbursable items were $1.9 billion, an increase of 14.2%. |
| • | | Adjusted operating margin was 27.9%. GAAP operating margin was 20.2%. |
“Our year-to-date free cash flow increased 45.8% over 2014 to $324.4 million. With this build-up of cash during the quarter, we plan to continue our strategic goal of returning approximately 75% of available free cash flow to our shareholders in the form of dividends and share repurchases,” said Woods.
| | | | |
| | 2015 Revised Financial Outlook |
| | Range (in millions, except per share amounts) | | Percent Change |
Total revenues | | $2,728 to $2,746 | | 11% to 12% |
Revenues before reimbursable items | | $2,463 to $2,473 | | 12% to 13% |
Adjusted EPS attributable to TSYS common shareholders from continuing operations* | | $2.43 to $2.47 | | 24% to 26% |
* Average Basic Weighted Shares | | 184 | | |
* | Note: The impact of any future share repurchases is not included. |
Conference Call
TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, October 27. The conference call can be accessed via simultaneous Internet broadcast attsys.com by 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.
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TSYS Reports Third Quarter Adjusted EPS Grew 40.2%
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, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 9 to 12 of this release.
About TSYS
At TSYS® (NYSE: TSS), we believe payments should revolve around people, not the other way around. We call this belief People-Centered Payments®. By putting people at the center of every decision we make, TSYS supports financial institutions, businesses and governments in more than 80 countries. Through NetSpend®, A TSYS Company, we empower consumers with the convenience, security, and freedom to be self-banked. TSYS offers issuer services and merchant payment acceptance for credit, debit, prepaid, healthcare and business solutions.
TSYS’ headquarters are located in Columbus, Ga., U.S.A., with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS is a member of The Civic 50 and has been named one of the 2015 World’s Most Ethical Companies by Ethisphere magazine. TSYS routinely posts all important information on its website. For more, please visit us atwww.tsys.com.
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TSYS Reports Third Quarter Adjusted EPS Grew 40.2%
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’ plan to continue its strategic goal of returning approximately 75% of available free cash flow to shareholders and regarding TSYS’ revised earnings guidance for 2015 total revenues, revenues before reimbursable items and adjusted EPS, 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 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; the effect of current domestic and worldwide economic conditions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; TSYS does not convert clients’ portfolios 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; 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; 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. 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 Third Quarter 2015 Earnings
Page 5 of 13
TSYS
Financial Highlights
(unaudited)
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2015 | | | 2014 | | | Percent Change | | | 2015 | | | 2014 | | | Percent Change | |
Total revenues | | $ | 707,890 | | | | 616,891 | | | | 14.8 | % | | $ | 2,062,698 | | | | 1,811,774 | | | | 13.8 | % |
| | | | | | |
Cost of services | | | 456,465 | | | | 407,391 | | | | 12.0 | | | | 1,366,141 | | | | 1,246,763 | | | | 9.6 | |
Selling, general and administrative expenses | | | 88,321 | | | | 80,093 | | | | 10.3 | | | | 280,355 | | | | 256,144 | | | | 9.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 544,786 | | | | 487,484 | | | | 11.8 | | | | 1,646,496 | | | | 1,502,907 | | | | 9.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 163,104 | | | | 129,407 | | | | 26.0 | | | | 416,202 | | | | 308,867 | | | | 34.8 | |
| | | | | | |
Nonoperating expenses | | | (8,564 | ) | | | (9,997 | ) | | | 14.3 | | | | (27,982 | ) | | | (30,195 | ) | | | 7.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes, noncontrolling interests and equity in income of equity investments | | | 154,540 | | | | 119,410 | | | | 29.4 | | | | 388,220 | | | | 278,672 | | | | 39.3 | |
Income taxes | | | 37,825 | | | | 39,227 | | | | (3.6 | ) | | | 119,204 | | | | 94,333 | | | | 26.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before noncontrolling interests and equity in income of equity investments | | | 116,715 | | | | 80,183 | | | | 45.6 | | | | 269,016 | | | | 184,339 | | | | 45.9 | |
Equity in income of equity investments, net of tax | | | 5,336 | | | | 4,135 | | | | 29.0 | | | | 15,309 | | | | 11,831 | | | | 29.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations, net of tax | | | 122,051 | | | | 84,318 | | | | 44.8 | | | | 284,325 | | | | 196,170 | | | | 44.9 | |
Gain from discontinued operations, net of tax | | | — | | | | 880 | | | | nm | | | | — | | | | 51,993 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | 122,051 | | | | 85,198 | | | | 43.3 | | | | 284,325 | | | | 248,163 | | | | 14.6 | |
Net income attributable to noncontrolling interests | | | (1,429 | ) | | | (1,393 | ) | | | (2.6 | ) | | | (3,109 | ) | | | (5,151 | ) | | | 39.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to TSYS common shareholders | | $ | 120,622 | | | | 83,805 | | | | 43.9 | % | | $ | 281,216 | | | | 243,012 | | | | 15.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share (EPS): | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations to TSYS common shareholders* | | $ | 0.66 | | | | 0.45 | | | | 46.7 | % | | $ | 1.53 | | | | 1.03 | | | | 48.2 | % |
Gain from discontinued operations to TSYS common shareholders* | | | — | | | | 0.00 | | | | nm | | | | — | | | | 0.27 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic EPS | | $ | 0.66 | | | | 0.45 | | | | 45.2 | % | | $ | 1.53 | | | | 1.30 | | | | 17.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS: | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations to TSYS common shareholders* | | $ | 0.65 | | | | 0.44 | | | | 47.3 | % | | $ | 1.52 | | | | 1.02 | | | | 49.1 | % |
Gain from discontinued operations to TSYS common shareholders* | | | — | | | | 0.00 | | | | nm | | | | — | | | | 0.27 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | | $ | 0.65 | | | | 0.45 | | | | 44.2 | % | | $ | 1.52 | | | | 1.29 | | | | 17.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding: (includes participating securities) | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 183,954 | | | | 185,577 | | | | | | | | 184,320 | | | | 186,559 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | 185,281 | | | | 187,572 | | | | | | | | 185,534 | | | | 188,836 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Dividends declared per share | | $ | 0.10 | | | | 0.10 | | | | | | | $ | 0.30 | | | | 0.30 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Amounts attributable to TSYS common shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations, net of tax | | $ | 120,622 | | | | 82,925 | | | | 45.5 | % | | $ | 281,216 | | | | 192,018 | | | | 46.5 | % |
Gain from discontinued operations, net of tax | | | — | | | | 880 | | | | nm | | | | — | | | | 50,994 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 120,622 | | | | 83,805 | | | | 43.9 | % | | $ | 281,216 | | | | 243,012 | | | | 15.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP measures: | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EPS from continuing operations | | $ | 0.78 | | | | 0.56 | | | | 40.2 | % | | $ | 1.89 | | | | 1.38 | | | | 36.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 238,898 | | | | 198,040 | | | | 20.6 | % | | $ | 638,889 | | | | 518,529 | | | | 23.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
nm = not meaningful
* | EPS amounts may not total due to rounding. |
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TSYS Announces Third Quarter 2015 Earnings
Page 6 of 13
TSYS
Segment Breakdown
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | | | | | | Change | | | | | | | | | Change | |
| | 2015 | | | 2014 | | | $ | | | % | | | 2015 | | | 2014 | | | $ | | | % | |
Revenues before reimbursable items: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America Services | | $ | 293,571 | | | | 240,957 | | | | 52,614 | | | | 21.8 | % | | $ | 846,989 | | | | 698,543 | | | | 148,446 | | | | 21.3 | % |
International Services | | | 86,446 | | | | 87,385 | | | | (939 | ) | | | (1.1 | ) | | | 244,033 | | | | 248,890 | | | | (4,857 | ) | | | (2.0 | ) |
Merchant Services | | | 123,721 | | | | 115,012 | | | | 8,709 | | | | 7.6 | | | | 351,987 | | | | 327,972 | | | | 24,015 | | | | 7.3 | |
NetSpend | | | 139,648 | | | | 114,048 | | | | 25,600 | | | | 22.4 | | | | 436,343 | | | | 363,521 | | | | 72,822 | | | | 20.0 | |
Intersegment revenues | | | (7,000 | ) | | | (4,542 | ) | | | (2,458 | ) | | | (54.1 | ) | | | (25,098 | ) | | | (15,248 | ) | | | (9,850 | ) | | | (64.6 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues before reimbursable items from external customers | | $ | 636,386 | | | | 552,860 | | | | 83,526 | | | | 15.1 | % | | $ | 1,854,254 | | | | 1,623,678 | | | | 230,576 | | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America Services | | $ | 341,416 | | | | 282,833 | | | | 58,583 | | | | 20.7 | % | | $ | 984,493 | | | | 818,335 | | | | 166,158 | | | | 20.3 | % |
International Services | | | 92,177 | | | | 91,865 | | | | 312 | | | | 0.3 | | | | 261,597 | | | | 264,710 | | | | (3,113 | ) | | | (1.2 | ) |
Merchant Services | | | 143,100 | | | | 134,117 | | | | 8,983 | | | | 6.7 | | | | 409,676 | | | | 384,824 | | | | 24,852 | | | | 6.5 | |
NetSpend | | | 139,648 | | | | 114,048 | | | | 25,600 | | | | 22.4 | | | | 436,343 | | | | 363,521 | | | | 72,822 | | | | 20.0 | |
Intersegment revenues | | | (8,451 | ) | | | (5,972 | ) | | | (2,479 | ) | | | (41.5 | ) | | | (29,411 | ) | | | (19,616 | ) | | | (9,795 | ) | | | (49.9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from external customers | | $ | 707,890 | | | | 616,891 | | | | 90,999 | | | | 14.8 | % | | $ | 2,062,698 | | | | 1,811,774 | | | | 250,924 | | | | 13.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America Services | | $ | 25,300 | | | | 22,173 | | | | 3,127 | | | | 14.1 | % | | $ | 72,831 | | | | 63,377 | | | | 9,454 | | | | 14.9 | % |
International Services | | | 8,678 | | | | 9,610 | | | | (932 | ) | | | (9.7 | ) | | | 26,084 | | | | 29,176 | | | | (3,092 | ) | | | (10.6 | ) |
Merchant Services | | | 4,670 | | | | 3,624 | | | | 1,046 | | | | 28.9 | | | | 13,394 | | | | 10,591 | | | | 2,803 | | | | 26.5 | |
NetSpend | | | 2,632 | | | | 2,155 | | | | 477 | | | | 22.1 | | | | 7,547 | | | | 5,779 | | | | 1,768 | | | | 30.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment depreciation and amortization | | | 41,280 | | | | 37,562 | | | | 3,718 | | | | 9.9 | | | | 119,856 | | | | 108,923 | | | | 10,933 | | | | 10.0 | |
Acquisition intangible amortization | | | 22,883 | | | | 24,210 | | | | (1,327 | ) | | | (5.5 | ) | | | 69,601 | | | | 72,805 | | | | (3,204 | ) | | | (4.4 | ) |
Corporate admin and other | | | 336 | | | | 662 | | | | (326 | ) | | | (49.2 | ) | | | 1,762 | | | | 1,702 | | | | 60 | | | | 3.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total depreciation and amortization | | $ | 64,499 | | | | 62,434 | | | | 2,065 | | | | 3.3 | % | | $ | 191,219 | | | | 183,430 | | | | 7,789 | | | | 4.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted segment operating income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America Services | | $ | 113,946 | | | | 92,736 | | | | 21,210 | | | | 22.9 | % | | $ | 324,902 | | | | 251,892 | | | | 73,010 | | | | 29.0 | % |
International Services | | | 18,370 | | | | 15,976 | | | | 2,394 | | | | 15.0 | | | | 38,706 | | | | 32,274 | | | | 6,432 | | | | 19.9 | |
Merchant Services | | | 42,387 | | | | 40,409 | | | | 1,978 | | | | 4.9 | | | | 117,192 | | | | 103,473 | | | | 13,719 | | | | 13.3 | |
NetSpend | | | 37,315 | | | | 36,123 | | | | 1,192 | | | | 3.3 | | | | 109,224 | | | | 95,543 | | | | 13,681 | | | | 14.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total adjusted segment operating income | | | 212,018 | | | | 185,244 | | | | 26,774 | | | | 14.5 | | | | 590,024 | | | | 483,182 | | | | 106,842 | | | | 22.1 | |
Acquisition intangible amortization | | | (22,883 | ) | | | (24,210 | ) | | | 1,327 | | | | 5.5 | | | | (69,601 | ) | | | (72,805 | ) | | | 3,204 | | | | 4.4 | |
NetSpend M&A operating expenses | | | — | | | | (779 | ) | | | 779 | | | | nm | | | | — | | | | (3,213 | ) | | | 3,213 | | | | nm | |
Share-based compensation | | | (11,295 | ) | | | (5,420 | ) | | | (5,875 | ) | | | nm | | | | (31,468 | ) | | | (23,019 | ) | | | (8,449 | ) | | | (36.7 | ) |
Corporate admin and other | | | (14,736 | ) | | | (25,428 | ) | | | 10,692 | | | | 42.0 | | | | (72,753 | ) | | | (75,278 | ) | | | 2,525 | | | | 3.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 163,104 | | | | 129,407 | | | | 33,697 | | | | 26.0 | % | | $ | 416,202 | | | | 308,867 | | | | 107,335 | | | | 34.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reimbursable items: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
North America Services | | $ | 47,845 | | | | 41,876 | | | | 5,969 | | | | 14.3 | % | | $ | 137,504 | | | | 119,792 | | | | 17,712 | | | | 14.8 | % |
International Services | | | 5,731 | | | | 4,480 | | | | 1,251 | | | | 27.9 | | | | 17,564 | | | | 15,820 | | | | 1,744 | | | | 11.0 | |
Merchant Services | | | 19,379 | | | | 19,105 | | | | 274 | | | | 1.4 | | | | 57,689 | | | | 56,852 | | | | 837 | | | | 1.5 | |
NetSpend | | | — | | | | — | | | | — | | | | na | | | | — | | | | — | | | | — | | | | na | |
Intersegment revenues | | | (1,451 | ) | | | (1,430 | ) | | | (21 | ) | | | (1.5 | ) | | | (4,313 | ) | | | (4,368 | ) | | | 55 | | | | 1.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reimbursable items | | $ | 71,504 | | | | 64,031 | | | | 7,473 | | | | 11.7 | % | | $ | 208,444 | | | | 188,096 | | | | 20,348 | | | | 10.8 | % |
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TSYS Announces Third Quarter 2015 Earnings
Page 7 of 13
TSYS
Condensed Balance Sheet
(unaudited)
(in thousands)
| | | | | | | | |
| | September 30, 2015 | | | December 31, 2014 | |
Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 447,850 | | | | 289,183 | |
Accounts receivable, net | | | 333,467 | | | | 283,203 | |
Other current assets | | | 115,007 | | | | 118,167 | |
| | | | | | | | |
Total current assets | | | 896,324 | | | | 690,553 | |
Goodwill | | | 1,545,888 | | | | 1,547,397 | |
Other intangible assets, net | | | 348,017 | | | | 404,107 | |
Property, equipment and software, net | | | 641,696 | | | | 656,733 | |
Other long term assets | | | 457,597 | | | | 434,791 | |
| | | | | | | | |
Total assets | | $ | 3,889,522 | | | | 3,733,581 | |
| | | | | | | | |
Liabilities | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 55,111 | | | | 48,793 | |
Bonds, notes and capital leases | | | 41,777 | | | | 50,911 | |
Other current liabilities | | | 228,473 | | | | 196,809 | |
| | | | | | | | |
Total current liabilities | | | 325,361 | | | | 296,513 | |
Bonds, notes and capital leases, excluding current portion | | | 1,377,927 | | | | 1,405,106 | |
Other long-term liabilities | | | 282,067 | | | | 309,826 | |
| | | | | | | | |
Total liabilities | | | 1,985,355 | | | | 2,011,445 | |
| | | | | | | | |
Redeemable noncontrolling interest | | | 23,001 | | | | 22,492 | |
| | | | | | | | |
Equity | | | | | | | | |
Shareholders’ equity | | | 1,875,615 | | | | 1,692,762 | |
| | | | | | | | |
Noncontrolling interests in consolidated subsidiaries | | | 5,551 | | | | 6,882 | |
| | | | | | | | |
Total equity | | | 1,881,166 | | | | 1,699,644 | |
| | | | | | | | |
Total liabilities and equity | | $ | 3,889,522 | | | | 3,733,581 | |
| | | | | | | | |
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TSYS Announces Third Quarter 2015 Earnings
Page 8 of 13
TSYS
Selected Cash Flow Highlights
(unaudited)
(in thousands)
| | | | | | | | |
| | Nine Months Ended September 30, | |
| | 2015 | | | 2014 | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 284,325 | | | | 248,163 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Gain on disposal of subsidiaries | | | — | | | | (87,013 | ) |
Equity in income of equity investments | | | (15,309 | ) | | | (11,831 | ) |
Dividends received from equity investments | | | 12,092 | | | | 9,189 | |
Depreciation and amortization | | | 191,219 | | | | 184,827 | |
Other non cash adjustments | | | 35,926 | | | | 40,626 | |
Changes in operating assets and liabilities: | | | (47,699 | ) | | | 6,153 | |
| | | | | | | | |
Net cash provided by operating activities | | | 460,554 | | | | 390,114 | |
Net cash used in investing activities | | | (138,618 | ) | | | (164,528 | ) |
Net cash used in financing activities | | | (158,429 | ) | | | (236,189 | ) |
Cash and cash equivalents: | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | | | (4,840 | ) | | | (1,586 | ) |
| | | | | | | | |
Net increase in cash and cash equivalents | | | 158,667 | | | | (12,189 | ) |
Cash and cash equivalents at beginning of period | | | 289,183 | | | | 278,230 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 447,850 | | | | 266,041 | |
| | | | | | | | |
Supplemental—Non-GAAP: | | | | | | | | |
Net cash provided by operating activities | | $ | 460,554 | | | | 390,114 | |
Capital expenditures | | | (136,183 | ) | | | (167,656 | ) |
| | | | | | | | |
Free cash flow | | | 324,371 | | | | 222,458 | |
Principal payments on debt and capital leases | | | (42,215 | ) | | | (48,682 | ) |
| | | | | | | | |
Available free cash flow | | $ | 282,156 | | | | 173,776 | |
| | | | | | | | |
| | |
Dividends paid on common stock | | | 55,277 | | | | 56,159 | |
Repurchase of common stock under plans | | | 83,521 | | | | 115,675 | |
| | | | | | | | |
Available free cash flow returned to shareholders | | $ | 138,798 | | | | 171,834 | |
| | | | | | | | |
Percent available free cash flow returned to shareholders | | | 49.2 | % | | | 98.9 | % |
| | | | | | | | |
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TSYS Announces Third Quarter 2015 Earnings
Page 9 of 13
TSYS
Supplemental Information
(unaudited)
Other
Accounts on File (AOF):
| | | | | | | | | | | | |
| | Total Accounts on File | |
(in millions) | | September 2015 | | | September 2014 | | | % Change | |
Consumer Credit | | | 373.6 | | | | 263.9 | | | | 41.5 | |
Retail | | | 25.4 | | | | 28.4 | | | | (10.3 | ) |
| | | | | | | | | | | | |
Total Consumer | | | 399.0 | | | | 292.3 | | | | 36.5 | |
Commercial | | | 44.1 | | | | 41.5 | | | | 6.0 | |
Other | | | 24.8 | | | | 21.2 | | | | 17.4 | |
| | | | | | | | | | | | |
Subtotal | | | 467.9 | | | | 355.0 | | | | 31.8 | |
Prepaid/Stored Value | | | 133.8 | | | | 125.1 | | | | 6.9 | |
Government Services | | | 78.7 | | | | 66.7 | | | | 18.0 | |
Commercial Card Single Use | | | 80.0 | | | | 58.7 | | | | 36.3 | |
| | | | | | | | | | | | |
Total AOF | | | 760.4 | | | | 605.5 | | | | 25.6 | |
| | | | | | | | | | | | |
Growth in Accounts on File(in millions):
| | | | | | | | |
| | |
| | September 2014 to September 2015 | | | September 2013 to September 2014 | |
Beginning balance | | | 605.5 | | | | 520.6 | |
Change in accounts on file due to: | | | | | | | | |
Internal growth of existing clients | | | 41.0 | | | | 39.6 | |
New clients | | | 153.7 | | | | 76.0 | |
Purges/Sales | | | (38.3 | ) | | | (30.3 | ) |
Deconversions | | | (1.5 | ) | | | (0.4 | ) |
| | | | | | | | |
Ending balance | | | 760.4 | | | | 605.5 | |
| | | | | | | | |
Segment data:
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | |
| | | | | | | | Change | |
| | 2015 | | | 2014 | | | Inc(Dec) | | | % | |
North America Segment: | | | | | | | | | | | | | | | | |
Transactions (in millions) | | | 4,156.7 | | | | 2,833.6 | | | | 1,323.1 | | | | 46.7 | % |
International Segment: | | | | | | | | | | | | | | | | |
Transactions (in millions) | | | 626.1 | | | | 574.3 | | | | 51.8 | | | | 9.0 | % |
Merchant Segment: | | | | | | | | | | | | | | | | |
Point-of-sale transactions (in millions) | | | 1,117.3 | | | | 1,034.4 | | | | 82.9 | | | | 8.0 | % |
Dollar sales volume (in millions) | | $ | 12,055.7 | | | $ | 11,877.5 | | | $ | 178.2 | | | | 1.5 | % |
NetSpend Segment: | | | | | | | | | | | | | | | | |
Gross dollar volume (in millions) | | $ | 5,391.2 | | | $ | 4,409.3 | | | $ | 981.9 | | | | 22.3 | % |
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, | |
| | | | | | | | Change | |
| | 2015 | | | 2014 | | | Inc(Dec) | | | % | |
North America Segment: | | | | | | | | | | | | | | | | |
AOF (in millions) | | | 685.5 | | | | 541.4 | | | | 144.1 | | | | 26.6 | % |
Transactions (in millions) | | | 11,509.6 | | | | 7,857.9 | | | | 3,651.7 | | | | 46.5 | % |
International Segment: | | | | | | | | | | | | | | | | |
AOF (in millions) | | | 74.9 | | | | 64.1 | | | | 10.8 | | | | 16.9 | % |
Transactions (in millions) | | | 1,812.0 | | | | 1,650.3 | | | | 161.7 | | | | 9.8 | % |
Merchant Segment: | | | | | | | | | | | | | | | | |
Point-of-sale transactions (in millions) | | | 3,191.3 | | | | 3,061.7 | | | | 129.6 | | | | 4.2 | % |
Dollar sales volume (in millions) | | $ | 35,671.5 | | | $ | 34,453.8 | | | $ | 1,217.7 | | | | 3.5 | % |
NetSpend Segment: | | | | | | | | | | | | | | | | |
Gross dollar volume (in millions) | | $ | 18,582.8 | | | $ | 15,604.5 | | | $ | 2,978.3 | | | | 19.1 | % |
Direct deposit 90-day active cards (in thousands) | | | 1,796.0 | | | | 1,520.7 | | | | 275.3 | | | | 18.1 | % |
90-day active cards (in thousands) | | | 3,643.4 | | | | 3,086.1 | | | | 557.3 | | | | 18.1 | % |
% of 90-day active cards with direct deposit | | | 49.3 | % | | | 49.3 | % | | | | | | | | |
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TSYS Announces Third Quarter 2015 Earnings
Page 10 of 13
Reconciliation of GAAP to Non-GAAP Financial Measures
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 third quarter 2015 financial results using the previous year’s foreign currency exchange rates. On a full year constant currency basis, TSYS’ total revenues grew 15.3% as compared to a reported GAAP increase of 13.8%.
The schedule below also provides a reconciliation of basic EPS, adjusted for the after-tax impact of acquisition intangible amortization, share-based compensation and merger and acquisition costs, to adjusted EPS.
The tax rate used in the calculation of adjusted EPS for the quarter and year 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.
The schedule also provides a reconciliation of net income, adjusted for income from discontinued operations, equity in income of equity investments, income taxes, nonoperating expense, depreciation and amortization, share-based compensation, and merger and acquisition expenses, to adjusted EBITDA.
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 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 Third Quarter 2015 Earnings
Page 11 of 13
Reconciliation of GAAP to Non-GAAP
Constant Currency Comparison
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2015 | | | 2014 | | | Percent Change | | | 2015 | | | 2014 | | | Percent Change | |
Consolidated | | | | | | | | | | | | | | | | | | | | | | | | |
Constant currency (1) | | $ | 716,363 | | | | 616,891 | | | | 16.1 | % | | $ | 2,088,418 | | | | 1,811,774 | | | | 15.3 | % |
Foreign currency impact (2) | | | (8,473 | ) | | | — | | | | | | | | (25,720 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | $ | 707,890 | | | | 616,891 | | | | 14.8 | % | | $ | 2,062,698 | | | | 1,811,774 | | | | 13.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Constant currency (1) | | $ | 644,364 | | | | 552,860 | | | | 16.6 | % | | $ | 1,878,291 | | | | 1,623,678 | | | | 15.7 | % |
Foreign currency impact (2) | | | (7,978 | ) | | | — | | | | | | | | (24,037 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues before reimbursable items | | $ | 636,386 | | | | 552,860 | | | | 15.1 | % | | $ | 1,854,254 | | | | 1,623,678 | | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Constant currency (1) | | $ | 163,464 | | | | 129,407 | | | | 26.3 | % | | $ | 416,907 | | | | 308,867 | | | | 35.0 | % |
Foreign currency impact (2) | | | (360 | ) | | | — | | | | | | | | (705 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 163,104 | | | | 129,407 | | | | 26.0 | % | | $ | 416,202 | | | | 308,867 | | | | 34.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
International Services | | | | | | | | | | | | | | | | | | | | | | | | |
Constant currency (1) | | $ | 100,512 | | | | 91,865 | | | | 9.4 | % | | $ | 286,969 | | | | 264,710 | | | | 8.4 | % |
Foreign currency impact (2) | | | (8,335 | ) | | | — | | | | | | | | (25,372 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | $ | 92,177 | | | | 91,865 | | | | 0.3 | % | | $ | 261,597 | | | | 264,710 | | | | (1.2 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | |
(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. |
Revenues Before Reimbursable Items
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | | | | | | Percent | | | | | | | | | Percent | |
| | 2015 | | | 2014 | | | Change | | | 2015 | | | 2014 | | | Change | |
Total revenues | | $ | 707,890 | | | | 616,891 | | | | 14.8 | % | | $ | 2,062,698 | | | | 1,811,774 | | | | 13.8 | % |
Reimbursable items | | | 71,504 | | | | 64,031 | | | | 11.7 | | | | 208,444 | | | | 188,096 | | | | 10.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenues before reimbursable items | | $ | 636,386 | | | | 552,860 | | | | 15.1 | % | | $ | 1,854,254 | | | | 1,623,678 | | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
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TSYS Announces Third Quarter 2015 Earnings
Page 12 of 13
Reconciliation of GAAP to Non-GAAP
Adjusted Earnings per Share
(unaudited)
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2015 | | | 2014 | | | Percent Change | | | 2015 | | | 2014 | | | Percent Change | |
Income from continuing operations attributable to TSYS common shareholders | | $ | 120,622 | | | | 82,925 | | | | 45.5 | % | | $ | 281,216 | | | | 192,018 | | | | 46.5 | % |
Adjust for amounts attributable to TSYS common shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Add: Acquisition intangible amortization, net of taxes | | $ | 15,104 | | | | 15,762 | | | | (4.2 | )% | | | 45,948 | | | | 47,374 | | | | (3.0 | ) |
Add: Share-based compensation, net of taxes | | | 7,544 | | | | 3,573 | | | | nm | | | | 21,018 | | | | 15,174 | | | | 38.5 | |
Add: NetSpend M&A expenses, net of taxes* | | | — | | | | 786 | | | | nm | | | | — | | | | 3,111 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted earnings | | $ | 143,270 | | | | 103,046 | | | | 39.0 | % | | $ | 348,182 | | | | 257,677 | | | | 35.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Deduct: Federal and state tax credits and related expenses, net of tax | | | (23,557 | ) | | | — | | | | na | | | | (23,557 | ) | | | — | | | | na | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted earnings without impact of one-time tax items | | $ | 119,713 | | | | 103,046 | | | | 16.2 | % | | $ | 324,625 | | | | 257,677 | | | | 26.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic EPS - Income from continuing operations attributable toTSYS common shareholders | | | | | | | | | | | | | | | | | | | | | | | | |
As reported (GAAP) | | $ | 0.66 | | | | 0.45 | | | | 46.7 | % | | $ | 1.53 | | | | 1.03 | | | | 48.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjust for amounts attributable to TSYS common shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Add: Acquisition intangible amortization, net of taxes | | | 0.08 | | | | 0.08 | | | | (3.3 | ) | | | 0.25 | | | | 0.25 | | | | (1.8 | ) |
Add: Share-based compensation, net of taxes | | | 0.04 | | | | 0.02 | | | | nm | | | | 0.11 | | | | 0.08 | | | | 40.1 | |
Add: NetSpend M&A expenses, net of taxes* | | | — | | | | 0.00 | | | | nm | | | | — | | | | 0.02 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EPS ** | | $ | 0.78 | | | | 0.56 | | | | 40.2 | % | | $ | 1.89 | | | | 1.38 | | | | 36.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Deduct: Federal and state tax credits and related expenses, net of tax | | | (0.13 | ) | | | — | | | | na | | | | (0.13 | ) | | | — | | | | na | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EPS without impact of one-time tax items | | $ | 0.65 | | | | 0.56 | | | | 17.2 | % | | $ | 1.76 | | | | 1.38 | | | | 27.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 183,954 | | | | 185,577 | | | | | | | | 184,320 | | | | 186,559 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
* | Certain merger and acquisition costs are nondeductible for income tax purposes |
** | Adjusted EPS amounts may not total due to rounding. |
Adjusted EBITDA
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | 2015 | | | 2014 | | | Percent Change | | | 2015 | | | 2014 | | | Percent Change | |
Net income | | $ | 122,051 | | | | 85,198 | | | | 43.3 | % | | $ | 284,325 | | | | 248,163 | | | | 14.6 | % |
Adjust for: | | | | | | | | | | | | | | | | | | | | | | | | |
Deduct: Income from discontinued operations | | | — | | | | (880 | ) | | | nm | | | | — | | | | (51,993 | ) | | | nm | |
Deduct: Equity in income of equity investments | | | (5,336 | ) | | | (4,135 | ) | | | (29.0 | ) | | | (15,309 | ) | | | (11,831 | ) | | | (29.4 | ) |
Add: Income taxes | | | 37,825 | | | | 39,227 | | | | (3.6 | ) | | | 119,204 | | | | 94,333 | | | | 26.4 | |
Add: Nonoperating expense | | | 8,564 | | | | 9,997 | | | | (14.3 | ) | | | 27,982 | | | | 30,195 | | | | (7.3 | ) |
Add: Depreciation and amortization | | | 64,499 | | | | 62,434 | | | | 3.3 | | | | 191,219 | | | | 183,430 | | | | 4.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA | | $ | 227,603 | | | | 191,841 | | | | 18.6 | % | | $ | 607,421 | | | | 492,297 | | | | 23.4 | % |
Adjust for: | | | | | | | | | | | | | | | | | | | | | | | | |
Add: Share-based compensation | | | 11,295 | | | | 5,420 | | | | nm | | | | 31,468 | | | | 23,019 | | | | 36.7 | |
Add: NetSpend M&A operating expenses | | | — | | | | 779 | | | | nm | | | | — | | | | 3,213 | | | | nm | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 238,898 | | | | 198,040 | | | | 20.6 | % | | $ | 638,889 | | | | 518,529 | | | | 23.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Deduct: State tax credits and related expenses | | | (15,084 | ) | | | — | | | | na | | | | (15,084 | ) | | | — | | | | na | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA without impact of one-time tax items | | $ | 223,814 | | | | 198,040 | | | | 13.0 | % | | $ | 623,805 | | | | 518,529 | | | | 20.3 | % |
| �� | | | | | | | | | | | | | | | | | | | | | | | |
nm = not meaningful
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TSYS Announces Third Quarter 2015 Earnings
Page 13 of 13
Reconciliation of GAAP to Non-GAAP
Segment Operating Margin and Consolidated Adjusted Operating Margin
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2015 | | | Three Months Ended September 30, 2014 | |
| | Adjusted Segment Operating Income | | | Revenues before Reimbursable Items | | | Adjusted Operating Margin | | | Adjusted Segment Operating Income | | | Revenues before Reimbursable Items | | | Adjusted Operating Margin | |
North America Services | | $ | 113,946 | | | | 293,571 | | | | 38.81 | % | | $ | 92,736 | | | | 240,957 | | | | 38.49 | % |
International Services | | | 18,370 | | | | 86,446 | | | | 21.25 | | | | 15,976 | | | | 87,385 | | | | 18.28 | |
Merchant Services | | | 42,387 | | | | 123,721 | | | | 34.26 | | | | 40,409 | | | | 115,012 | | | | 35.13 | |
NetSpend | | | 37,315 | | | | 139,648 | | | | 26.72 | | | | 36,123 | | | | 114,048 | | | | 31.67 | |
Intersegment | | | — | | | | (7,000 | ) | | | | | | | — | | | | (4,542 | ) | | | | |
Corporate admin and other | | | (14,736 | ) | | | | | | | | | | | (25,428 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted operating margin | | $ | 197,282 | | | | 636,386 | | | | 31.00 | % | | $ | 159,816 | | | | 552,860 | | | | 28.91 | % |
Acquisition intangible amortization | | | (22,883 | ) | | | | | | | | | | | (24,210 | ) | | | | | | | | |
NetSpend M&A operating expenses | | | — | | | | | | | | | | | | (779 | ) | | | | | | | | |
Share-based compensation | | | (11,295 | ) | | | | | | | | | | | (5,420 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income and margin* | | $ | 163,104 | | | | 636,386 | | | | 25.63 | % | | $ | 129,407 | | | | 552,860 | | | | 23.41 | % |
Reimbursable items | | | | | | | 71,504 | | | | | | | | | | | | 64,031 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income and margin (US GAAP) | | $ | 163,104 | | | | 707,890 | | | | 23.04 | % | | $ | 129,407 | | | | 616,891 | | | | 20.98 | % |
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| | |
| | Nine Months Ended September 30, 2015 | | | Nine Months Ended September 30, 2014 | |
| | Adjusted Segment Operating Income | | | Revenues before Reimbursable Items | | | Adjusted Operating Margin | | | Adjusted Segment Operating Income | | | Revenues before Reimbursable Items | | | Adjusted Operating Margin | |
North America Services | | $ | 324,902 | | | | 846,989 | | | | 38.36 | % | | $ | 251,892 | | | | 698,543 | | | | 36.06 | % |
International Services | | | 38,706 | | | | 244,033 | | | | 15.86 | | | | 32,274 | | | | 248,890 | | | | 12.97 | |
Merchant Services | | | 117,192 | | | | 351,987 | | | | 33.29 | | | | 103,473 | | | | 327,972 | | | | 31.55 | |
NetSpend | | | 109,224 | | | | 436,343 | | | | 25.03 | | | | 95,543 | | | | 363,521 | | | | 26.28 | |
Intersegment | | | — | | | | (25,098 | ) | | | | | | | — | | | | (15,248 | ) | | | | |
Corporate admin and other | | | (72,753 | ) | | | | | | | | | | | (75,278 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted operating margin | | $ | 517,271 | | | | 1,854,254 | | | | 27.90 | % | | $ | 407,904 | | | | 1,623,678 | | | | 25.12 | % |
Acquisition intangible amortization | | | (69,601 | ) | | | | | | | | | | | (72,805 | ) | | | | | | | | |
NetSpend M&A operating expenses | | | — | | | | | | | | | | | | (3,213 | ) | | | | | | | | |
Share-based compensation | | | (31,468 | ) | | | | | | | | | | | (23,019 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income and margin* | | $ | 416,202 | | | | 1,854,254 | | | | 22.45 | % | | $ | 308,867 | | | | 1,623,678 | | | | 19.02 | % |
Reimbursable items | | | | | | | 208,444 | | | | | | | | | | | | 188,096 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income and margin (US GAAP) | | $ | 416,202 | | | | 2,062,698 | | | | 20.18 | % | | $ | 308,867 | | | | 1,811,774 | | | | 17.05 | % |
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* | Operating margin on revenue before reimbursable items |
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