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 Second Quarter 2004
Building Momentum for 2005
Columbus, Ga., July 20, 2004 -- TSYS(R) today announced that its financial
results for the second quarter and six months ended June 30, 2004 are in line
with the Company's forecast.
Below is a summary of the results for the second quarter and six months
ended June 30, 2004, as compared to the same period in 2003:
Three Months Ended Six Months Ended
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June 30, June 30,
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(dollars in millions, except earnings Percent Percent
per share data) 2004 2003 Change 2004 2003 Change
- ------------------------------------------- ------------ ------------- ------------ ------------ ------------ ------------
Revenues Before Reimbursables $233.7 203.1 15.1% $458.3 395.9 15.7%
Total Revenues 289.6 257.7 12.4% 574.9 509.1 12.9%
Operating Income 47.3 44.8 5.6% 91.4 87.9 4.0%
Net Income 35.9 34.3 4.6% 68.4 66.0 3.6%
Basic EPS 0.18 0.17 4.5% 0.35 0.34 3.6%
Diluted EPS 0.18 0.17 4.6% 0.35 0.33 3.7%
Highlights for the quarter include:
* J.P. Morgan Chase & Co. selected TSYS to provide credit card
processing for the merged card portfolios of the former Bank One Corp.
and JPMorgan Chase. Upon the completion of all conversions, TSYS will
provide processing services for the 87 million cardmembers of Chase
Card Services. Both companies expect to reach a definitive agreement
in the near future.
* Vital continued to exhibit strong transaction growth for the second
quarter of 2004. Vital's Internet transaction volumes increased over
70% for 2004 as compared to last year.
* Revenues from international clients increased 9.9% for the first six
months of 2004 and were impacted by the loss of processing revenues
from Mexico during the fourth quarter of 2003. During the second
quarter of 2004, TSYS converted the portfolio of the Bank of Ireland.
* Revenues from other services increased 62.4% for the quarter,
primarily due to the results of TSYS Debt Management and to new
services, such as TSYS ProphIT(R).
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TSYS Reports Results For Second Quarter 2004/Page 2 of 9
* Accounts on file increased to 287.0 million, up 9.4%, compared to
262.5 million at June 30, 2003.
"The results for the second quarter are in line with our expectations,
and we continue to expect growth in EPS of 5% to 7% in 2004," said Philip W.
Tomlinson, chief executive officer of TSYS.
"With one of the largest decisions in the history of card processing,
JPMorgan Chase selected TSYS to process its merged card portfolio. With this
decision, TSYS is building momentum with more than 100 million accounts in the
new business pipeline," Tomlinson said. "TSYS remains on schedule to convert the
Bank One portfolios in the third and fourth quarters of 2004."
"We are committed to position TSYS for sustained, long-term growth by
focusing on electronic payment processing opportunities in Europe, the
Asia-Pacific Rim, Canada and the United States. We will also focus on
diversification by continuing to develop new products and services, as well as
acquiring complementary businesses," Tomlinson said. "We remain excited about
our prospects and anticipate 10% to 15% growth in EPS in 2005."
Conference Call
TSYS will host its quarterly conference call at 4:30 p.m. EDT, July 20,
2004. The conference call can be accessed at www.tsys.com by clicking on the
"Conference Call" icon on the homepage. 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 payment services as the integral link between buyers and sellers in
this rapidly evolving universe. Synovus (NYSE: SNV) owns an 81-percent interest
in TSYS. 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 that it will reach a definitive agreement with JP
Morgan Chase in the near future; TSYS' expected growth in earnings per share for
2004; TSYS' scheduled conversion of the Bank One portfolio; 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 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
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TSYS Reports Results For Second Quarter 2004/Page 3 of 9
does not convert the Bank One card portfolio as scheduled; TSYS and JP Morgan
Chase are not able to satisfactorily conclude negotiations with respect to a
definitive agreement; 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; 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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