Total System Services — Q3 2011 Earnings Presentation
19 slides from Total System Services's earnings presentation, Oct 25, 2011
Slide 1: 2011 Third Quarter Results
2011 Third Quarter Results October 25, 2011 © 2011 Total 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 subjec
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, Chairman and Chief Executive Officer
Phil Tomlinson Chairman and Chief Executive Officer © 2011 Total System Services, Inc. ® .® Proprietary. All rights reserved worldwide.
Slide 5: Jim Lipham, Chief Financial Officer
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) 3rd Qtr 3rd Qtr Percent YTD YTD Percent 2011 2010 Change 2011 2010 Change $ 459,747 $ 433,236 6.1% Total Revenues $ 1,336,732 $ 1,277,586 4.6% 390,161 363,192 7.4 Revenues Before Reimbursable Items 1,133,015 1,068,592 6
Slide 7: 2011 YTD Revenue Change, Revenues Before Reimbursable Items
2011 YTD Revenue Change Revenues Before Reimbursable Items 25% 20% 15% Currency Acquisitions 1.5% Lost 10% New Business, Non-recurring Clients 3.6% Items and Price Internal Compression Reported 5% Growth 2.6% (5.8%) 4.1% 6.0% 0% 7 ©2011 Total System Services, Inc.® Proprietary. All rights reserved w
Slide 8: Consolidated Accounts on File Portfolio Summary
Consolidated Accounts on File Portfolio Summary (in millions) Sep Sep % Sep Jun % 2011 2010 Change 2011 2011 Change Consumer Credit 194.2 180.2 7.7 194.2 187.6 3.5 Government Services 32.6 26.9 21.4 32.6 30.0 8.7 Retail 23.2 23.1 0.2 23.2 23.7 (2.4) Total Consumer 250.0 230.2 8.6 250.0 241.3 3.6 Com
Slide 9: 3Q 2011 Segment Financial Highlights: North America Services
3Q 2011 Year Over Year Segment Financial Highlights North America Key Drivers Services • Strong organic growth Revenues $243.9 million Excluding Reimbursables • Increased volumes $206.1 million Operating Income $68.0 million • Volumes Operating Margin 27.9% – Accounts on file were 341.9 million Excl
Slide 10: 3Q 2011 Segment Financial Highlights: International Services
3Q 2011 Year Over Year Segment Financial Highlights International Key Drivers Services • Favorable currency impact on revenues of Revenues $99.9 million $4.9 million Constant currency basis • Conversion of new clients $95.0 million Operating Income $8.3 million Operating Margin 8.3% • Volumes Exclud
Slide 11: 3Q 2011 Segment Financial Highlights: Merchant Services
3Q 2011 Year Over Year Segment Financial Highlights Merchant Key Drivers Services • Acquisition of TermNet Revenues $122.9 million • Decline in revenues associated with Excluding Reimbursables deconverted clients $93.2 million Operating Income $27.4 million Operating Margin • Volumes 22.3% – Point-o
Slide 12: Cash Flow Strength: 2011 TTM Consolidated Financial Highlights
Cash Flow Strength: 2011 TTM Consolidated Financial Highlights (in millions) $525 $473 $450 $407 $375 $300 $281 $240 $225 $213 $150 $75 $0 EBITDA Cash flow from operations Free cash flow Net income Ending cash TTM = Trailing Twelve Months 12 ©2011 Total System Services, Inc.® Proprietary. All rights
Slide 13: Revised 2011 Guidance
Revised 2011 Guidance (in millions, except per share data) Range Range Change Percent Change Total Revenues $1,786 to $1,800 4% to 5% Reimbursable Items 266 to 270 (3) to (2) Revenues Before Reimbursable Items 1,520 to 1,530 5 to 6 Income from Continuing Operations Available to TSYS Common Sharehold
Slide 14: Appendix
Appendix © 2011 Total System Services, Inc. ® .® Proprietary. All rights reserved worldwide.
Slide 15: Non-GAAP Reconciliation – Revenues Before Reimbursable Items
Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended Nine Months Ended 9/30/11 9/30/10 9/30/11 9/30/10 $ 1,336,732 $ 1,277,586 Total Revenues $ 459,747 $ 433,236 Reimbursable Items 69,586 70,044 203,717 208,994 Revenues Before Reimbursable Items $ 3
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 9/30/11 9/30/10 9/30/11 9/30/10 9/30/11 9/30/10 $ 68,016 Operating Income (a) $ 52,645 $ 8,279 $ 12,30
Slide 17: Non-GAAP Reconciliation – Constant Currency
Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Nine Percentage Months Ended Change Months Ended Change Consolidated: 9/30/11 9/30/10 9/30/11 9/30/10 Constant Currency (1) $ 454,852 $ 433,236 5.0% $ 1,319,653 $ 1,277,586 3.3% Foreign Currency (2) 4,895 --- 17,079
Slide 18: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Trailing Twelve Months Ended 9/30/2011 Net Income $ 213,385 Adjusted for: Add: Discontinued Operations 81 Deduct: Equity in Income of Equity Investments (10,254) Add: Income Taxes 94,921 Add: Nonoperating expense 5,578 Add: Depreciation and Am
Slide 19: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended 9/30/2011 Cash Flows from Operating Activities $ 406,923 Less: Purchase of Property and Equipment (34,820) Additions to Licensed Computer Software from Vendors (52,635) Additions to Internally Developed Com
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