Exhibit 99.2
TSYS Announces 15.9% Increase in Earnings for First Quarter 2003
Page 4 of 7
TSYS
Financial Highlights
(In thousands, except per share data)
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Three months ended
March 31,
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Percentage
2003 2002 Change
------------ ----------- ----------
Revenues
Electronic payment processing services $ 167,826 143,157 17.2%
Other services 25,053 27,659 (9.4)
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Revenues before reimbursables 192,879 170,816 12.9
Reimbursable items 58,474 57,107 2.4
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Total revenues 251,353 227,923 10.3
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Expenses
Employment 76,096 68,732 10.7
Occupancy & equipment 51,620 44,230 16.7
Other 22,017 21,880 0.6
(Gain)/Loss on disposal of equipment (22) 2 nm
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Expenses before reimbursables 149,711 134,844 11.0
Reimbursable items 58,474 57,107 2.4
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Total operating expenses 208,185 191,951 8.5
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Operating Income 43,168 35,972 20.0
Other Income 12 179 nm
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Income before Income Taxes, Minority Interest
and Equity in Income of Joint Venture 43,180 36,151 19.4
Income Taxes 15,514 13,257 17.0
Minority Interest (118) 14 nm
Equity in Income of Joint Ventures 4,188 4,474 (6.4)
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Net Income $ 31,736 27,382 15.9
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Basic Earnings Per Share $ 0.16 0.14 15.9%
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Diluted Earnings Per Share $ 0.16 0.14 16.2%
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Dividend Declared Per Share $ 0.0175 0.0150
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Average Common Shares Outstanding 197,049,470 196,962,984
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Average Common and Common
Equivalent Shares Outstanding 197,231,833 197,723,177
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Note: nm = not meaningful
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TSYS Announces 15.9% Increase in Earnings for First Quarter 2003
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TSYS
Segment Breakdown
(In thousands)
Three Months Ended March 31, 2003 Three Months Ended March 31, 2002
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Domestic-based International-based Domestic-based International-based
Transaction Transaction Transaction Transaction
Processing Processing Consolidate Processing Processing Consolidated
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Total revenue $ 233,119 18,711 251,830 213,399 15,073 228,472
Intersegment revenue (2) (475) (477) (151) (398) (549)
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Revenues from external
customers $ 233,117 18,236 251,353 213,248 14,675 227,923
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Depreciation and amortization $ 19,551 2,497 22,048 14,674 2,000 16,674
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Segment operating income $ 41,480 1,688 43,168 35,780 192 35,972
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Income tax expense $ 14,897 617 15,514 13,151 106 13,257
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Equity in income of joint
ventures $ 3,941 247 4,188 4,226 248 4,474
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Net Income $ 30,806 930 31,736 27,414 (32) 27,382
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Average accounts on file 239,565 12,643 252,208 212,760 11,560 224,320
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Note: Revenues for domestic-based processing services include electronic payment
processing services and other services provided from the United States to
clients based in the United States or other countries. Revenues from
international-based processing services include electronic payment
processing services and other services provided outside the United States
to clients based predominantly outside the United States.
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TSYS Announces 15.9% Increase in Earnings for First Quarter 2003
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Cash Flow Information: Three Months Ending:
(in thousands) Mar 2003 Mar 2002
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Cash flows from operating activities:
Net income $ 31,736 27,382
Adjustments to net income provided by operating activities:
Minority interest in consolidated subsidiary's net income 118 (14)
Equity in income of joint ventures (4,188) (4,474)
(Gain) loss on currency translation adjustments, net 626 189
Depreciation and amortization 22,048 16,674
Charges for bad debts and billing adjustments (291) 1,161
Charges for transaction processing 52 658
Billings in excess of costs on uncompleted contracts 29,722 -
Accounts payable (321) (18,157)
Accrued salaries and employee benefits (26,607) 960
Other working capital 7,926 25,053
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Net cash provided by operating activities 60,821 49,432
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Cash flows from investing activities:
Purchase of property and equipment (5,072) (2,801)
Additions to computer software (15,456) (15,868)
Increase in contract acquisition costs (8,765) (9,177)
Cash acquired in acquisition of subsidiary - 2,858
Other 37 2
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Net cash used in investing activities (29,256) (24,986)
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Net cash used in financing activities (3,473) (2,909)
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Effect of foreign currency translation on cash and cash equivalents 978 (385)
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Net increase (decrease) in cash and cash equivalents 29,070 21,152
Cash and cash equivalents at beginning of year 109,171 58,659
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Cash and cash equivalents at end of period $ 138,241 79,811
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TSYS Announces 15.9% Increase in Earnings for First Quarter 2003
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Supplemental Information:
Mar 2003 % Mar 2002 % % Chg
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Accounts on File (in millions):
Consumer 152,590 60.0 126,771 55.3 20.4
Integrated Payments 6,217 2.5 - - na
Retail 74,735 29.4 83,860 36.6 (10.9)
Commercial 20,694 8.1 18,520 8.1 11.7
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254,236 100.0 229,151 100.0 10.9
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Average Accounts on File (in millions) 252,208 224,320 12.4
Mar 2003 % Mar 2002 % % Chg
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Accounts on File (in millions):
Domestic 216,834 85.3 201,107 87.8 7.8%
International 37,402 14.7 28,044 12.2 33.4
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254,236 100.0 229,151 100.0 10.9
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Note: The accounts on file between domestic and international is based on the
geographic domicile of processing clients.
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