TSYS (NYSE: TSS) today reported results for the second quarter
of 2016.
Highlights for the second quarter of 2016 include:
- Total revenues were $1.2 billion, an
increase of 66.3% over last year’s $692.7 million.
- Net revenue, which excludes
reimbursable items, interchange and assessment expense, was $794.9
million, an increase of 27.8% over last year’s $622.1 million.
- GAAP net income attributable to TSYS
common shareholders, which includes the expenses of closing the
TransFirst acquisition during the quarter, was $69.7 million, a
decrease of 15.9% from last year’s $82.8 million. GAAP basic
earnings per share (EPS) were $0.38 per share, a decrease of 15.8%
from last year’s $0.45.
- Adjusted EBITDA was $274.0 million, an
increase of 32.7% over last year’s $206.5 million. Adjusted
earnings were $135.4 million, an increase of 27.8% over last year’s
$106.0 million. Adjusted EPS was $0.74, an increase of 27.9% over
last year’s $0.58.
- Cash of $125 million was deployed for
accelerated repayments on our bank credit facility.
“We are extremely pleased with the outstanding operational and
financial performance for the second quarter as we continue to
deliver on our strategic plan. All four segments achieved net
revenue growth on a constant currency basis and our consolidated
adjusted operating margin expanded by 202 basis points,” said M.
Troy Woods, chairman and chief executive officer of TSYS.
“We are also pleased to report that the integration of our
TransFirst acquisition this quarter is going very well. TransFirst,
along with our legacy merchant business, gives us a commanding
leadership position in the merchant acquiring market on which we
intend to capitalize,” said Woods.
Conference Call
TSYS will host its quarterly conference call at 5:00 p.m. ET on
Tuesday, July 26. The conference call can be accessed via
simultaneous Internet broadcast on the “Investor Relations” section
of TSYS’ website at investors.tsys.com where an accompanying slide
presentation will also be available. The replay will be archived
for 12 months and will be available approximately 30 minutes after
the completion of the call.
Non-GAAP Measures
This press release contains information prepared in conformity
with GAAP as well as non-GAAP information. It is management’s
intent to provide non-GAAP financial information to enhance
understanding of its consolidated financial information as prepared
in accordance with GAAP. This non-GAAP information should be
considered by the reader in addition to, but not instead of, the
financial statements prepared in accordance with GAAP. Each
non-GAAP financial measure and the most directly comparable GAAP
financial measure are presented so as not to imply that more
emphasis should be placed on the non-GAAP measure. The non-GAAP
financial information presented may be determined or calculated
differently by other companies.
Additional information about non-GAAP financial measures,
including, but not limited to, net revenue, adjusted earnings,
adjusted EBITDA and adjusted EPS, and a reconciliation of those
measures to the most directly comparable GAAP measures are included
on pages 9 to 12 of this release.
About TSYS
TSYS® (NYSE: TSS) unlocks opportunities in payments for payment
providers, businesses and consumers. Our headquarters are in
Columbus, Georgia, USA, and we operate in more than 80 countries
with local offices across the Americas, EMEA and Asia-Pacific.
We provide seamless, secure and innovative solutions across the
payments spectrum — from issuer processing and merchant acquiring
to prepaid program management — delivered through partnership and
expertise. We succeed because we put people, and their needs, at
the heart of every decision. It’s an approach we call
‘People-Centered Payments®’.
Our industry is changing every day — and we’re leading the way
toward the payments of tomorrow. We routinely post all important
information on our website. For more, visit us at tsys.com.
Forward-Looking Statements
This press release and related presentations may contain
“forward-looking statements” – that is, statements related to
future, not past, events. Forward-looking statements often address
our expected future business and financial performance and often
contain words such as “expect,” “anticipate,” “intend,” “believe,”
“should,” “plan,” “potential,” “will,” “could,” and similar
expressions. These statements are based on the current beliefs and
expectations of TSYS’ management, are based on management’s
assumptions 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 or events 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, the
risks described in TSYS’ filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-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 disclaim
any obligation to update any forward-looking statements as a result
of new information, future developments or otherwise except as
required by law.
TSYS Financial Highlights (unaudited) (in thousands, except
per share data)
Three Months Ended Six Months Ended
June 30, June 30, Percent Percent 2016 2015 Change 2016 2015 Change
Total revenues $ 1,151,587 692,652 66.3 % $ 1,890,965
1,354,808 39.6 % Cost of services 837,660 459,960 82.1
1,318,216 909,676 44.9 Selling, general and administrative expenses
178,106 102,090 74.5 285,241 192,034
48.5 Total expenses 1,015,766 562,050 80.7 1,603,457
1,101,710 45.5 Operating income 135,821
130,602 4.0 287,508 253,098 13.6 Nonoperating expenses
(30,061 ) (10,209 ) nm (52,501 ) (19,418 ) nm Income before
income taxes, noncontrolling interests and equity in income of
equity investments 105,760 120,393 (12.2 ) 235,007 233,680 0.6
Income taxes 40,290 41,597 (3.1 ) 83,719
81,379 2.9 Income before noncontrolling interests and equity
in income of equity investments 65,470 78,796 (16.9 ) 151,288
152,301 (0.7 ) Equity in income of equity investments, net of tax
6,278 4,579 37.1 12,868 9,973 29.0 Net
income 71,748 83,375 (13.9 ) 164,156 162,274 1.2 Net income
attributable to noncontrolling interests (2,040 ) (536 ) nm (3,820
) (1,680 ) nm Net income attributable to TSYS common
shareholders $ 69,708 82,839 (15.9 ) % $ 160,336
160,594 (0.2 ) % Earnings per share (EPS):
Basic EPS $ 0.38 0.45 (15.8 ) % $ 0.87 0.87
0.2 % Diluted EPS $ 0.38 0.45 (15.7 ) %
$ 0.87 0.87 0.4 % Weighted average shares
outstanding: (includes participating securities) Basic 183,724
183,829 183,489 184,153 Diluted 184,598
185,020 184,336 185,299
Dividends declared per share $ 0.10 0.10 $ 0.20
0.20
Non-GAAP
measures:
Net revenue $ 794,937 622,084 27.8 % $ 1,466,581
1,217,868 20.4 % Adjusted EPS from continuing
operations $ 0.74 0.58 27.9 % $ 1.40 1.11
25.5 % Adjusted EBITDA $ 274,032 206,537
32.7 % $ 504,862 399,991 26.2 % nm =
not meaningful TSYS Segment Breakdown (unaudited) (in
thousands)
Three Months Ended June 30, Six Months Ended June 30, Change
Change 2016 2015 $ % 2016 2015 $
% Total revenues $ 1,151,587 692,652 458,935 66.3 % $ 1,890,965
1,354,808 536,157 39.6 % Less reimbursable items 66,137 70,568
(4,431 ) (6.3 ) 133,871 136,940 (3,069 ) (2.2 ) Less interchange
& assessments expense 290,513 -
290,513 na 290,513 - 290,513
na Net revenue $ 794,937 622,084
172,853 27.8 % $ 1,466,581 1,217,868
248,713 20.4 % Net revenue (by segment): North
America Services $ 297,168 287,199 9,969 3.5 % $ 600,809 553,418
47,391 8.6 % International Services 81,771 83,857 (2,086 ) (2.5 )
157,125 157,587 (462 ) (0.3 ) Merchant Services 261,467 117,868
143,599 nm 382,079 228,266 153,813 67.4 NetSpend 162,620 141,621
20,999 14.8 347,613 296,695 50,918 17.2 Intersegment revenues
(8,089 ) (8,461 ) 372 4.4 (21,045 )
(18,098 ) (2,947 ) (16.3 ) Net revenue from external
customers $ 794,937 622,084 172,853
27.8 % $ 1,466,581 1,217,868
248,713 20.4 % Depreciation and amortization: North
America Services $ 27,442 24,468 2,974 12.2 % $ 54,925 47,532 7,393
15.6 % International Services 8,207 8,628 (421 ) (4.9 ) 16,343
17,406 (1,063 ) (6.1 ) Merchant Services 6,806 4,446 2,360 53.1
11,856 8,723 3,133 35.9 NetSpend 3,116 2,622
494 18.8 6,225 4,915
1,310 26.7 Segment depreciation and amortization 45,571
40,164 5,407 13.5 89,349 78,576 10,773 13.7 Acquisition intangible
amortization 58,486 22,852 35,634 nm 81,407 46,718 34,689 74.3
Corporate admin and other 912 889 23
2.6 1,796 1,426 370 25.9
Total depreciation and amortization $ 104,969 63,905
41,064 64.3 % $ 172,552 126,720
45,832 36.2 % Adjusted segment
operating income: North America Services $ 112,737 108,385 4,352
4.0 % $ 237,525 210,956 26,569 12.6 % International Services 15,751
13,353 2,398 18.0 26,040 20,336 5,704 28.0 Merchant Services 89,915
40,690 49,225 nm 128,272 74,805 53,467 71.5 NetSpend 42,481
36,442 6,039 16.6 84,682 71,909
12,773 17.8 Total adjusted segment operating income
260,884 198,870 62,014 31.2 476,519 378,006 98,513 26.1 Acquisition
intangible amortization (58,486 ) (22,852 ) (35,634 ) nm (81,407 )
(46,718 ) (34,689 ) (74.3 ) TransFirst M&A operating expenses
(20,676 ) - (20,676 ) na (24,078 ) - (24,078 ) na Share-based
compensation (12,566 ) (12,030 ) (536 ) (4.5 ) (20,724 ) (20,173 )
(551 ) (2.7 ) Corporate admin and other (33,335 ) (33,386 )
51 0.2 (62,802 ) (58,017 ) (4,785 ) (8.2 ) Operating
income $ 135,821 130,602 5,219
4.0 % $ 287,508 253,098 34,410 13.6 %
nm = not meaningful na = not applicable
TSYS Condensed Balance Sheet (unaudited) (in
thousands) June 30, 2016 December 31, 2015
Assets
Current assets: Cash and cash equivalents $ 465,319 389,328
Accounts receivable, net 396,693 314,705 Other current assets
147,419 154,199 Total current assets 1,009,431 858,232 Goodwill
3,252,118 1,545,424 Other intangible assets, net 1,002,589 328,320
Property, equipment and software, net 746,133 694,968 Other long
term assets 466,762 450,951 Total assets $ 6,477,033 3,877,895
Liabilities Current liabilities: Accounts payable $
34,428 52,213 Notes payable and capital leases 49,085 53,546 Other
current liabilities 279,972 233,173 Total current liabilities
363,485 338,932 Bonds payable, notes payable and capital leases,
excluding current portion 3,600,154 1,377,541 Deferred tax
liability 411,532 192,445 Other long-term liabilities 93,135 96,885
Total liabilities 4,468,306 2,005,803
Redeemable noncontrolling
interest 23,299 23,410
Equity Shareholders' equity
1,985,428 1,843,018 Noncontrolling interests in consolidated
subsidiaries - 5,664 Total equity 1,985,428 1,848,682 Total
liabilities and equity $ 6,477,033 3,877,895 Note: TSYS adopted
Accounting Standards Update (ASU) 2015-03 "Interest - Imputation of
Interest (Subtopic 835-30), Simplifying the Presentation of Debt
Issuance Cost" on January 1, 2016. This ASU requires TSYS to
present debt issuance costs in the balance sheet as a direct
deduction from the carrying amount of the corresponding debt
liability, consistent with debt discounts. All prior periods
presented have been restated for this ASU. TSYS also adopted
ASU 2015-17 "Income Taxes (Topic 740), Balance Sheet Classification
of Deferred Taxes" on January 1, 2016. This ASU requires the
classification of all deferred tax assets and liabilities as
noncurrent on the balance sheet instead of separating deferred
taxes into current and noncurrent amounts. All prior periods
presented have been restated for this ASU.
TSYS Selected Cash Flow Highlights (unaudited)
(in thousands) Six Months Ended June 30, 2016 2015
Cash
flows from operating activities: Net income $ 164,156 162,274
Adjustments to reconcile net income to net cash provided by
operating activities: Equity in income of equity investments
(12,868 ) (9,973 ) Dividends received from equity investments 808
984 Depreciation and amortization 172,552 126,720 Amortization of
debt issuance costs 11,451 917 Share-based compensation 20,724
20,173 Deferred income tax expense(benefit) 18,520 (12,954 ) Other
noncash adjustments 21,764 21,401 Changes in operating assets and
liabilities (56,227 ) (24,249 )
Net cash provided by operating
activities 340,880 285,293
Net cash used in investing
activities (2,428,856 ) (97,512 )
Net cash provided
by (used in) financing activities 2,169,545 (126,244 )
Cash and cash equivalents: Effect of exchange rate changes
on cash and cash equivalents (5,578 ) (1,342 ) Net increase in cash
and cash equivalents 75,991 60,195 Cash and cash equivalents at
beginning of period 389,328 289,183 Cash and cash
equivalents at end of period $ 465,319 349,378
Supplemental - Non-GAAP: Net cash provided by operating
activities $ 340,880 285,293 Capital expenditures (81,807 ) (96,552
) Free cash flow $ 259,073 188,741 TSYS
Supplemental Information (unaudited)
Other Accounts on File (AOF): Total Accounts
on File (in millions)
AtJune 2016
AtJune 2015
%Change
Consumer 425.3 400.5 6.2 Commercial 47.0 44.0 7.1 Other 28.8
24.0 19.6 Traditional AOF 501.1 468.5 7.0 Prepaid*/Stored
Value 79.5 133.1 (40.3 ) Government Services 84.6 77.1 9.8
Commercial Card Single Use 76.9 72.7 5.8 Total AOF 742.1
751.4 (1.2 ) * Prepaid does not include NetSpend accounts
Growth in Accounts
on File (in millions):
June 2015 toJune 2016
June 2014 toJune 2015
Beginning balance 751.4 572.7 Change in accounts on file due to:
Internal growth of existing clients 51.8 42.4 New clients 32.9
166.1 Purges/Sales (24.0 ) (29.3 ) Deconversions (70.0 )
(0.5 ) Ending balance 742.1 751.4
Segment
data: Three Months Ended June 30,
Change 2016 2015 Inc/(Dec) % North America
Segment: Transactions (in millions) 4,326.6 4,042.2 284.4
7.0 % International Segment: Transactions (in millions)
658.5 613.9 44.6 7.3 % Merchant Segment: Point-of-sale
transactions (in millions) 1,159.5 1,089.4 70.1 6.4 % Dollar sales
volume (in millions) $ 28,560.8 $ 12,314.8 $ 16,246.0 131.9 %
NetSpend Segment: Gross dollar volume (in millions) $
6,614.7 $ 5,531.0 $ 1,083.7 19.6 % Six Months Ended June 30,
Change 2016 2015 Inc/(Dec) %
North America Segment: AOF (in millions) 660.9 677.5 (16.6 ) (2.5 )
% Traditional AOF (in millions) 435.1 405.4 29.7 7.3 % Transactions
(in millions) 8,296.2 7,353.0 943.2 12.8 % International
Segment: AOF (in millions) 81.3 73.9 7.4 10.0 % Traditional AOF (in
millions) 66.0 63.1 3.0 4.7 % Transactions (in millions) 1,276.9
1,185.9 91.0 7.7 % Merchant Segment: Point-of-sale
transactions (in millions) 2,250.4 2,074.0 176.4 8.5 % Dollar sales
volume (in millions) $ 40,344.2 $ 23,616.4 $ 16,727.8 70.8 %
NetSpend Segment: Gross dollar volume (in millions) $ 15,776.2 $
13,191.7 $ 2,584.5 19.6 % Direct deposit 90-day active cards
(in thousands) 2,192.5 1,879.8 312.7 16.6 % 90-day active cards (in
thousands) 4,448.8 3,885.1 563.7 14.5 % % of 90-day active cards
with direct deposit 49.3 % 48.4 %
Reconciliation of GAAP
to Non-GAAP Financial Measures Non-GAAP Measures
The schedules below provide a reconciliation of revenues and
operating results on a constant currency basis to reported revenues
and operating income. This non-GAAP measure presents second quarter
2016 financial results using the previous year’s foreign currency
exchange rates. On a constant currency basis, TSYS’ total revenues
grew 40.4% as compared to a reported GAAP increase of 39.6%.
The schedules below also provide a reconciliation of basic EPS,
adjusted for the after-tax impact of acquisition intangible
amortization, share-based compensation and merger and acquisition
costs, to adjusted EPS. The schedules below provide a
reconciliation of total revenues to net revenue. Net revenue is
defined as total revenues less reimbursable items (such as
postage), as well as, merchant acquiring interchange and assessment
fees charged by the card associations or payment networks that are
recorded by TSYS as expense. The tax rate used in the
calculation of adjusted EPS for the quarter and year is equal to an
estimate of our annual effective tax rate on GAAP income. This
effective rate is estimated annually and may be adjusted during the
year to take into account events or trends that materially impact
the effective tax rate including, but not limited to, significant
changes resulting from tax legislation, material changes in the mix
of revenues and expenses by entity and other significant events.
The schedules also provide a reconciliation of net income,
adjusted for income from discontinued operations, equity in income
of equity investments, income taxes, nonoperating expense,
depreciation and amortization, share-based compensation, and merger
and acquisition expenses, to adjusted EBITDA. Although
non-GAAP financial measures are often used to measure TSYS’
operating results and assess its financial performance, they are
not necessarily comparable to similarly titled measures of other
companies due to potential inconsistencies in the method of
calculation. TSYS believes that its use of non-GAAP
financial measures provides investors with important key financial
performance indicators that are utilized by management to assess
TSYS’ operating results, evaluate the business and make operational
decisions on a prospective, going-forward basis. Hence, management
provides disclosure of non-GAAP financial measures to give
shareholders and potential investors an opportunity to see TSYS as
viewed by management, to assess TSYS with some of the same tools
that management utilizes internally and to be able to compare such
information with prior periods. TSYS believes that inclusion of
non-GAAP financial measures provides investors with additional
information to help them better understand its financial statements
just as management utilizes these non-GAAP financial measures to
better understand the business, manage budgets and allocate
resources.
Reconciliation of GAAP to Non-GAAP
Constant Currency Comparison (unaudited) (in
thousands)
Three Months Ended June 30, Six Months Ended June 30,
Percent Percent 2016 2015 Change 2016
2015 Change
Consolidated Constant currency (1)
$ 1,157,633 692,652 67.1 % $ 1,902,607 1,354,808 40.4 % Foreign
currency impact (2) (6,046 ) - (11,642 )
- Total revenues $ 1,151,587 692,652
66.3 % $ 1,890,965 1,354,808 39.6 %
Constant currency (1) $ 800,586 622,084 28.7 % $ 1,477,432
1,217,868 21.3 % Foreign currency impact (2) (5,649 )
- (10,851 ) - Net revenue $ 794,937
622,084 27.8 % $ 1,466,581 1,217,868
20.4 % Constant currency (1) $ 137,848 130,602 5.5 % $
290,629 253,098 14.8 % Foreign currency impact (2) (2,027 )
- (3,121 ) - Operating income $ 135,821
130,602 4.0 % $ 287,508 253,098
13.6 %
International Services Constant currency (1) $
93,549 89,618 4.4 % $ 180,160 169,420 6.3 % Foreign currency impact
(2) (6,040 ) - (11,578 ) - Total
revenues $ 87,509 89,618 (2.4 ) % $ 168,582
169,420 (0.5 ) % Constant currency (1)
$ 87,413 83,857 4.2 % $ 167,911 157,587 6.6 % Foreign currency
impact (2) (5,642 ) - (10,786 ) - Net
revenue $ 81,771 83,857 (2.5 ) % $ 157,125
157,587 (0.3 ) % (1) Reflects current
period results on a non-GAAP basis as if foreign currency rates did
not change from the comparable prior year period. (2) Reflects the
impact of calculated changes in foreign currency rates from the
comparable period.
Net Revenue (unaudited)
(in thousands) Three Months Ended June 30, Six
Months Ended June 30, Percent Percent 2016
2015 Change 2016 2015
Change Total revenues $ 1,151,587 692,652 66.3 % $
1,890,965 1,354,808 39.6 % Less reimbursable items 66,137 70,568
(6.3 ) 133,871 136,940 (2.2 ) Less interchange & assessments
expense 290,513 - na 290,513
- na Net revenue $ 794,937 622,084 27.8
% $ 1,466,581 1,217,868 20.4 % na = not
applicable
Reconciliation of GAAP to Non-GAAP
Adjusted Earnings per Share (unaudited) (in thousands,
except per share data)
Three Months Ended June 30, Six Months Ended June 30,
Percent Percent
2016 2015 Change 2016 2015
Change
Income from continuing operations
attributable to TSYS common shareholders
$ 69,708 82,839 (15.9 ) % $ 160,336 160,594 (0.2 ) % Adjust for
amounts attributable to TSYS common shareholders: Add: Acquisition
intangible amortization $ 58,210 22,576 nm 80,855 46,167 75.1 Add:
Share-based compensation 12,557 12,024 4.4 20,707 20,167 2.7 Add:
TransFirst M&A expenses* 20,676 - na 33,859 - na Less: Tax
impact of adjustments** (25,735 ) (11,484 ) nm (39,631 )
(22,016 ) (80.0 ) Adjusted earnings $ 135,416
105,955 27.8 % $ 256,126 204,912 25.0 %
Basic EPS - Income from continuing operations
attributable to TSYS common shareholders As
reported (GAAP) $ 0.38 0.45 (15.8 ) % $ 0.87
0.87 0.2 % Adjusted EPS $ 0.74
0.58 27.9 % $ 1.40 1.11 25.5 %
Weighted average shares outstanding 183,724
183,829 183,489 184,153
* Costs associated with the TransFirst
acquisition and integration which are included in selling, general
and administrative expenses and nonoperating expenses.
** Certain of these merger and acquisition costs are nondeductible
for income tax purposes. Income tax impact includes a discrete item
as a result of the acquisition.
Adjusted EBITDA
(unaudited) (in thousands) Three Months Ended June 30,
Six Months Ended June 30, Percent Percent 2016
2015 Change 2016 2015 Change
Net income
$ 71,748 83,375 (13.9 ) % $ 164,156 162,274 1.2 % Adjust for:
Deduct: Equity in income of equity investments (6,278 ) (4,579 )
(37.1 ) (12,868 ) (9,973 ) (29.0 ) Add: Income taxes 40,290 41,597
(3.1 ) 83,719 81,379 2.9 Add: Nonoperating expense 30,061 10,209 nm
52,501 19,418 nm Add: Depreciation and amortization 104,969
63,905 64.3 172,552 126,720 36.2
EBITDA $ 240,790 194,507 23.8 % $ 460,060 379,818 21.1 %
Adjust for: Add: Share-based compensation 12,566 12,030 4.5 20,724
20,173 2.7 Add: TransFirst M&A expenses* 20,676 -
na 24,078 - na
Adjusted EBITDA $
274,032 206,537 32.7 % $ 504,862
399,991 26.2 %
* Costs associated with the TransFirst
acquisition and integration which are included in selling, general
and administrative expenses.
nm = not meaningful na = not applicable
Reconciliation of GAAP
to Non-GAAP
Segment Operating Margin and Consolidated
Adjusted Operating Margin (unaudited) (in thousands)
Three Months Ended June 30, 2016
Three Months Ended June 30, 2015 Adjusted Segment Adjusted Adjusted
Segment Adjusted Operating Income Net Revenue
Operating Margin Operating Income Net Revenue
Operating Margin North America Services $ 112,737 297,168 37.94 % $
108,385 287,199 37.74 % International Services 15,751 81,771 19.26
13,353 83,857 15.92 Merchant Services 89,915 261,467 34.39 40,690
117,868 34.52 NetSpend 42,481 162,620 26.12 36,442 141,621 25.73
Intersegment - (8,089 ) - (8,461 ) Corporate admin and other
(33,335 ) (33,386 ) Subtotal $ 227,549
794,937 28.62 % $ 165,484 622,084 26.60 % Acquisition intangible
amortization (58,486 ) (22,852 ) TransFirst M&A expenses*
(20,676 ) - Share-based compensation (12,566 )
(12,030 ) Operating income and margin** $ 135,821
794,937 17.09 % $ 130,602 622,084 20.99 % Reimbursable items 66,137
70,568 Interchange and assessments 290,513
- Operating income and margin (US GAAP) $
135,821 1,151,587 11.79 % $ 130,602
692,652 18.86 % Six Months Ended June 30, 2016
Six Months Ended June 30, 2015 Adjusted Segment Adjusted Adjusted
Segment Adjusted Operating Income Net Revenue
Operating Margin Operating Income Net Revenue
Operating Margin North America Services $ 237,525 600,809 39.53 % $
210,956 553,418 38.12 % International Services 26,040 157,125 16.57
20,336 157,587 12.90 Merchant Services 128,272 382,079 33.57 74,805
228,266 32.77 NetSpend 84,682 347,613 24.36 71,909 296,695 24.24
Intersegment - (21,045 ) - (18,098 ) Corporate admin and other
(62,802 ) (58,017 ) Subtotal $ 413,717
1,466,581 28.21 % $ 319,989 1,217,868 26.27 % Acquisition
intangible amortization (81,407 ) (46,718 ) TransFirst M&A
expenses* (24,078 ) - Share-based compensation (20,724 )
(20,173 ) Operating income and margin** $
287,508 1,466,581 19.60 % $ 253,098 1,217,868 20.78 % Reimbursable
items 133,871 136,940 Interchange and assessments
290,513 - Operating income and margin
(US GAAP) $ 287,508 1,890,965 15.20 % $
253,098 1,354,808 18.68 %
* Costs associated with the TransFirst
acquisition and integration which are included in selling, general
and administrative expenses.
** Operating margin on net revenue.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726006494/en/
TSYS Investor RelationsShawn Roberts,
+1-706-644-6081shawnroberts@tsys.com
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