Exhibit 99.1
TSYS News Release
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For Immediate Release
Contacts:
James B. Lipham Leo S. Berard
Chief Financial Officer Investor Relations
706.649.2262 706.649.5220
TSYS Reports 19.1% Increase in Operating Income and a 12.4% Increase
in Net Income for First Nine Months of 2003
Columbus, Ga., October 14, 2003 -- TSYS(R) today announces that its
financial results are in line with the Company's forecast for the three and nine
months ended September 30, 2003.
Highlights of the third quarter and first nine months of 2003 as
compared to the same periods of 2002, are as follows:
--------------------------------------- --------------------------------------
(dollars in millions, Three Months Ended Nine Months Ended
except earnings per
share (EPS) data)
------------------------- --------------------------------------- ------------------------------------
September 30, September 30,
------------------------- ------------ ------------ ------------- ------------ ------------ ----------
Percent Percent
2003 2002 Change 2003 2002 Change
------------------------- ------------ ------------ ------------- ------------ ------------ ------------
Revenues Before
Reimbursables $210.4 183.2 14.9% $606.3 535.6 13.2%
Total Revenues 266.1 239.6 11.1% 775.2 709.1 9.3%
Operating Income 48.9 40.7 20.2% 136.8 114.9 19.1%
Net Income 35.5 32.8 8.2% 101.6 90.3 12.4%
Basic EPS 0.18 0.17 8.4% 0.52 0.46 12.5%
Diluted EPS 0.18 0.17 8.2% 0.51 0.46 12.6%
"The third quarter proved to be another solid quarter for TSYS and we
expect another record year in 2003 as we celebrate our 20th anniversary," said
Richard W. Ussery, chairman and CEO of TSYS. "Our core services demonstrated
strong growth for the quarter and the nine months ended September 30, 2003 as
illustrated by the double digit growth in revenues and operating income. Our
growth in core service revenues continues to be driven by the strong internal
annual growth of our existing customers' accounts on file of approximately
11.3%, the cross sell opportunities as evidenced by the year-to-date growth in
revenues of 22.6% from value added services and the year-to-date growth of 39.0%
in revenues from international clients."
"Overall, TSYS' net income growth was reduced on a comparison basis
with last year due to foreign currency translation gains included in 2002, as
well as industry-wide pricing pressures experienced by Vital Processing
Services, L.L.C. in 2003," said Ussery.
"In addition to our earnings growth, we are also very pleased with our
strong cash flow
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TSYS Announces 19.1% Increase in Operating Income and a 12.4% Increase for
First Nine Months of 2003 Earnins/Page 2 of 7
position. During the third quarter, we repaid the $20 million in financing used
to fund the $93.5 million purchase of TSYS' corporate campus in June 2003,"
said Ussery. TSYS is strongly positioned to support future growth and
expansion."
TSYS will host its quarterly conference call at 4:30 p.m. EDT, October
14, 2003. The conference call can be accessed at www.tsys.com by clicking on the
designated icon within the Highlights section of the site. The replay will be
available 30-45 minutes after the call.
About TSYS
TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the
world of electronic payments as the integral link between buyers and sellers in
this rapidly evolving universe. With more than 267 million accounts on file,
TSYS makes it possible for millions of consumers to use their credit, debit,
stored value, commercial, smart and retail cards anytime, anywhere through any
medium or portal. TSYS offers a full range of acquiring and issuing services
from accepting and settling electronic payments for goods and services to
designing, administering and fulfilling loyalty programs to credit applications,
bankruptcy management and collection services. Based in Columbus, Ga., TSYS
serves companies on three continents representing 16 currencies and seven
languages. TSYS also maintains operations in Canada, Mexico, Japan, and the
United Kingdom and is an 81-percent owned subsidiary of Synovus (NYSE: "SNV")
(www.synovus.com), number nine on FORTUNE magazine's list of "The 100 Best
Companies To Work For" in 2003. For more information, contact news@tsys.com.
This press release contains statements that 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' expectation of another record year in 2003 and the assumptions
underlying such statements. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those contemplated by such forward-looking statements. A number of important
factors could cause actual results to differ materially from those contemplated
by the 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, revenues are lower than anticipated; internal growth rates for
TSYS' existing customers are lower than anticipated; TSYS is unable to control
expenses and increase market share; hostilities increase in the Middle East or
elsewhere; adverse developments with respect to the credit card industry in
general; TSYS is unable to successfully manage any impact from slowing economic
conditions or consumer spending; adverse developments with respect to sub-prime
or retail clients; and overall market conditions. Additional factors that could
cause actual results to differ materially from those contemplated in this press
release can be found in TSYS' filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, quarterly reports on Form
10-Q, and current reports on Form 8-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.
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