Exhibit 99.1
TSYS News Release
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For Immediate Release
Contacts:
James B. Lipham Leo S. Berard
Chief Financial Officer TSYS Investor Relations
+1.706.649.2262 +1.706.649.5220
leoberard@tsys.com
TSYS Reports Results for First Quarter 2004
Columbus, Ga., April 14, 2004 -- TSYS(R) today announced that its financial
results for the first quarter ended March 31, 2004 are in line with the
Company's forecast.
Below is a summary of the results for the first quarter, as compared to
the same period in 2003:
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Three Months Ended
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March 31,
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(dollars in millions, except earnings per Percent
share data) 2004 2003 Change
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Revenues Before Reimbursables $224.6 192.9 16.4%
Total Revenues 285.2 251.4 13.5%
Operating Income 44.1 43.2 2.3%
Net Income 32.6 31.7 2.6%
Basic EPS 0.17 0.16 2.7%
Diluted EPS 0.17 0.16 2.6%
Highlights for the quarter include:
* An agreement was reached with FleetBoston Financial Corporation to
continue processing the Circuit City accounts. Our processing services
were also expanded to include backoffice and call center activities.
* Vital's strong transaction growth volumes for the first quarter
exceeded expectations.
* Revenues from international clients increased 12.4% and were impacted
by the loss of processing revenue from Mexico during the fourth
quarter of 2003.
* Revenues from value-added services for the quarter were $39.0 million,
an increase of 10.1%, compared to $35.4 million a year ago.
* Revenues from other services increased 63.0% for the quarter,
primarily due to the results of ESC Loyalty, TSYS Debt Management and
to new services, such as TSYS ProphIT.
* The extension of our processing agreements with BB&T Corporation and
First Hawaiian Bank.
* Accounts on file increased to 280.4 million, up 10.3%, compared to
254.2 million at March 31, 2003.
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TSYS Reports Results For First Quarter 2004/Page 2 of 9
"The results for the first quarter were slightly better than our
expectations," said Philip W. Tomlinson, chief executive officer of TSYS.
"However, with the issues surrounding industry consolidation still unresolved,
we maintain our original guidance for earnings per share to grow 5-7% for the
year."
TSYS continues to have ongoing discussions with Bank of America
regarding the Fleet merger and with Citigroup regarding its Sears portfolio
acquisition. In addition, TSYS' plans and efforts to convert the Bank One
portfolio remain fully staffed and on schedule, and TSYS has begun discussions
with J.P. Morgan Chase regarding the processing needs of its card portfolio.
"We remain optimistic about the opportunities that lie ahead. We are
developing relationships to extend processing services in Europe, the
Asia-Pacific Rim and the United States. TSYS is a global provider of advanced
technology solutions that increase value for the clients we serve. We are
committed to position TSYS for sustained, long-term growth," Tomlinson said. "We
remain bullish on our prospects and anticipate 10-15% growth in earnings per
share in 2005."
Conference Call
TSYS will host its quarterly conference call at 4:30 p.m. EDT, April
14, 2004. 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 approximately 30 minutes after the completion of the call.
About TSYS
TSYS (NYSE: TSS) brings integrity and innovation to the world of
electronic payments as the integral link between buyers and sellers in this
rapidly evolving universe. With 280 million accounts on file, TSYS makes it
possible for millions of consumers to use their credit, debit, prepaid,
commercial, smart and retail cards any time, 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), No. 20 on FORTUNE magazine's list of "The 100 Best Companies
To Work For" in 2004. 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' expected growth in earnings per share for 2004; TSYS' plans to
convert the Bank One portfolio according to schedule; TSYS' anticipated growth
in earnings per share for 2005; and the assumptions underlying such statements,
including, with respect to TSYS' expected increase in earnings per share for
2005, an increase in revenues before reimbursable items of 10-12%; a 6-9% growth
in revenues from existing electronic payment processing clients; Vital
Processing Services growing earnings by at least 5%; and no significant client
losses through 2005. 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
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TSYS Reports Results For First Quarter 2004/Page 3 of 9
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
that are lower than anticipated; internal growth rates for TSYS' existing
customers are lower than anticipated; Vital's earnings are lower than
anticipated; TSYS does not convert the Bank One card portfolio as anticipated;
adverse developments with respect to foreign currency exchange rates; adverse
developments with respect to entering into contracts with new clients and
retaining current clients; the merger of TSYS clients with entities that are not
TSYS clients or the sale of portfolios by TSYS clients to entities that are not
TSYS clients, including the merger of Fleet with Bank of America, the merger of
Bank One with J.P. Morgan Chase, and the acquisition by Citigroup of the Sears
portfolio; 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; the costs and effects
of litigation or adverse facts and developments relating thereto; and overall
market conditions. Additional factors that could cause actual results to differ
materially from those contemplated in this 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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