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 +1.706.644.6081
leoberard@tsys.com
TSYS Reports 41.1% Increase in Net Income for Second Quarter
As Momentum Continues, Company Raises 2005 Earnings Guidance to 25%-28%
Columbus, Ga., July 19, 2005 -- TSYS(R) today announced that its financial
results for the second quarter of 2005 exceeded its earnings per share
expectations. As a result of the continued momentum, TSYS has increased its
earnings guidance for 2005 from 22%-25% to 25%-28%.
Below is a summary of the results for the quarter and six months ended
June 30, 2005, as compared to the same periods in 2004, respectively:
Three Months Ended Six Months Ended
June 30, June 30,
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(dollars in millions, except earnings per Percent Percent
share data) 2005 2004 Change 2005 2004 Change
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Revenues Before Reimbursables $331.1 $233.7 41.7% $611.4 $458.3 33.4%
Total Revenues 410.2 289.6 41.6% 760.2 574.9 32.2%
Operating Income 76.3 47.3 61.5% 142.7 91.4 56.0%
Net Income 50.6 35.9 41.1% 96.8 68.4 41.4%
Basic EPS 0.26 0.18 41.0% 0.49 0.35 41.2%
Diluted EPS 0.26 0.18 41.0% 0.49 0.35 41.3%
"We are very excited with the results for the second quarter," said
Philip W. Tomlinson, chief executive officer. "The strength in the reported
earnings for the quarter was the result of continued strong growth in our
fundamental core business, the benefits gained through improved operating
leverage, as well as the acquisition of Vital. As a result, we are increasing
our earnings guidance from 22%-25% to 25%-28% for the year."
Highlights for the quarter include:
* TSYS reached an agreement in principle with Capital One Financial
Corporation to provide processing services for its North American
portfolio of consumer and small business credit card accounts.
TSYS continues its exclusive negotiations with Capital One.
* TSYS signed Fifth Third Bancorp and successfully converted its
Visa and MasterCard consumer credit portfolio to TS2.
* TSYS approved a quarterly cash dividend of $0.06 per share, an
increase of 50 percent from the previous dividend rate. TSYS has
increased its dividend payment for 6 consecutive years.
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TSYS Reports Results For Second Quarter 2005/Page 2 of 9
* TSYS renewed its agreement with Navy Federal Credit Union, the
world's largest credit union, to continue processing more than 1
million credit card accounts for an additional five years.
"We continue to build momentum and long-term earnings visibility with
the Chase Card Services conversion scheduled for the end of this month, as well
as the upcoming opportunity with Capital One. We have experienced outstanding
growth for the first two quarters of the year and are very excited about the
prospects for the remainder of 2005 and beyond," said Tomlinson.
Revised Projected Outlook for 2005
TSYS now expects its net income growth to be in the range of 25%-28%.
TSYS' net income forecast is based on the following assumptions:
1. Total revenues will increase 31%-33%
2. Vital Processing Services will add $225 - $235 million
in annual revenue
3. Accounts on file at the end of 2005 will be
between 430 and 435 million
Conference Call
TSYS will host its quarterly conference call at 8:30 a.m. EDT, July 20,
2005. 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' expected net income growth for 2005; the scheduled Chase Card
Services conversion; and the assumptions underlying such statements, including,
with respect to TSYS' expected increase in net income for 2005, an increase in
total revenues of 31-33%; Vital Processing Services adding $225-$235 million in
annual revenues; and accounts on file at the end of 2005 will be between 430 and
435 million. These statements are based on the current beliefs and expectations
of TSYS' management 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 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, revenues
that are lower than anticipated; Vital's addition to revenue is lower than
anticipated; accounts on file at the end of 2005 are lower than anticipated;
TSYS incurs expenses associated with the signing of a significant client;
internal growth rates for TSYS' existing clients are lower than anticipated;
TSYS does not convert clients' portfolios as scheduled; 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;
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TSYS Reports Results For Second Quarter 2005/Page 3 of 9
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; the impact of acquisitions, including their
being more difficult to integrate than anticipated; the costs and effects of
litigation, investigations or similar matters or adverse facts and developments
relating thereto; the impact of changes in accounting principles; overall market
conditions; no material breach of the security of any of our systems; and the
impact on TSYS' business, as well as on the risks set forth above, of various
domestic or international military or terrorist activities or conflicts.
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 our 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. 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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