Total System Services — Q1 2011 Earnings Presentation
20 slides from Total System Services's earnings presentation, Apr 26, 2011
Slide 1: 2011 First Quarter Results
2011 First Quarter Results April 26, 2011 ©2011Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected future operating results of TSYS. These statements are based on management’s current expectations and assumptions and are subject
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: revenues before reimbursable items; operating
Slide 4: Phil Tomlinson
Phil Tomlinson Chairman and Chief Executive Officer ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 5: Jim Lipham
Jim Lipham Chief Financial Officer ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 6: Consolidated Selected Financial Highlights
Consolidated Selected Financial Highlights (in thousands except per share data) Excluding Termination Fees As Reported (GAAP) (non-GAAP) 1st Qtr 1st Qtr Percent 1st Qtr 1st Qtr Percent 2011 2010 Change 2011 2010 Change $ 429,430 $ 413,464 3.9% Total Revenues $ 429,430 $ 390,325 10.0% 362,643 342,661
Slide 7: 2011 YTD Revenue Change Revenues Before Reimbursable Items
2011 YTD Revenue Change Revenues Before Reimbursable Items 25% 20% Currency Acquisitions 1% Lost Business, 15% Non-recurring Items and Price Compression 9% 10% (11%) New Clients Internal Reported 5% Growth 3% 4% 6% 0% 7 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 8: Account on File Portfolio Summary
Account on File Portfolio Summary (in millions) Mar Mar Year Over Year Dec Sequential 2011 2010 Change Due To: 2010 Change Due To: Consumer 183.4 182.2 1.2 179.5 3.9 Client Adds Stored Value 62.3 40.9 21.4 Client Adds 55.3 7.0 Client Adds Commercial 51.1 44.1 7.0 Client Adds 49.7 1.4 Government Serv
Slide 9: 1Q 2011 Year Over Year Segment Financial Highlights
1Q 2011 Year Over Year Segment Financial Highlights Key Drivers North America Services • Client deconversion and termination fees – $23.1 million in 1Q 2010 revenues associated with Revenues termination fees $230.6 million – $9.6 million revenue decrease associated with Revenues deconverted clients
Slide 10: 1Q 2011 Year Over Year Segment Financial Highlights
1Q 2011 Year Over Year Segment Financial Highlights Key Drivers International Services • Favorable currency impact on revenues of $3.4 million Revenues $90.7 million • Conversion of new clients Revenues Constant currency basis $87.3 million Operating Income $11.0 million Operating Margin 12.2% • Vol
Slide 11: 1Q 2011 Year Over Year Segment Financial Highlights
1Q 2011 Year Over Year Segment Financial Highlights Key Drivers Merchant Services • Acquisition of TSYS Merchant Solutions • Operating margin excluding reimbursable items Revenues $115.8 million and TMS was 35.8% • Decline in revenues associated with Bank of Revenues Excluding Reimbursables America
Slide 12: 1Q 2011 Year Over Year Segment Financial Highlights
1Q 2011 Year Over Year Segment Financial Highlights Key Drivers Corporate Administration • Contains costs associated with corporate administrative functions Operating Expenses – Executive, finance, legal, human resources $20.1 million – Mergers & acquisitions • Increased $0.9 million over last year
Slide 13: Cash Flow Strength: 2011 TTM Consolidated Financial Highlights
Cash Flow Strength: 2011 TTM Consolidated Financial Highlights (in millions) $525 $468 $450 $375 $358 $300 $225 $203 $150 $130 $75 $0 EBITDA Cash flow from operations Free cash flow Net income TTM = Trailing Twelve Months 13 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwi
Slide 14: Appendix
Appendix ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 14
Slide 15: Non-GAAP Reconciliation – Revenues Before Reimbursable Items
Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended 3/31/11 3/31/10 $ 429,430 Total Revenues $ 413,464 Reimbursable Items 66,787 70,803 Revenues Before Reimbursable Items $ 362,643 $ 342,661 15 ©2011 Total System Services, Inc.® Proprietary. All ri
Slide 16: Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items
Appendix Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items (in thousands) North America International Merchant Three Months Ended Three Months Ended Three Months Ended 3/31/11 3/31/10 3/31/11 3/31/10 3/31/11 3/31/10 $ 55,200 Operating Income (a) $ 69,788 $ 11,025 $ 11,2
Slide 17: Non-GAAP Reconciliation – Excluding Termination Fees
Appendix Non-GAAP Reconciliation – Excluding Termination Fees (in thousands) Three Months Ended March 31, 2010 Less Termination GAAP Fees Non-GAAP Total Revenues $413,464 23,139 $390,325 Less Reimbursable Items $70,803 --- $70,803 Revenues Before Reimbursable Items $342,661 23,139 $319,522 Operating
Slide 18: Non-GAAP Reconciliation – Constant Currency
Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Months Ended Change 3/31/11 3/31/10 Consolidated: Constant Currency (1) $ 425,994 $ 413,464 3.0% Foreign Currency (2) 3,436 --- 0.9 Total Revenues 429,430 413,464 3.9% International Services: Constant Currency (1) $
Slide 19: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Trailing Twelve Months Ended 3/31/2011 Net Income $ 203,214 Adjusted for: Add: Discontinued Operations 2,817 Deduct: Equity in Income of Equity Investments (8,519) Add: Income Taxes 103,149 Add: Nonoperating expense 2,084 Add: Depreciation and
Slide 20: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended 3/31/2011 Cash Flows from Operating Activities $ 357,796 Less: Purchase of Property and Equipment (43,337) Additions to Licensed Computer Software from Vendors (67,337) Additions to Internally Developed Com
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