Total System Services Inc

Total System Services — Q1 2015 Earnings Presentation

28 slides from Total System Services's earnings presentation, Apr 28, 2015

  1. Slide 1: 2015 First Quarter and YTD Results

    2015 First Quarter and YTD Results April 28, 2015 © 2015 Total System Services, Inc.® All rights reserved worldwide.

  2. Slide 2: Forward-Looking Statements

    2015 First Quarter and YTD Results > 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 expecta

  3. Slide 3: Use of Non-GAAP Financial Measures

    2015 First Quarter and YTD Results > 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

  4. Slide 4: Troy Woods

    Troy Woods Chairman, President & Chief Executive Officer © 2015 Total System Services, Inc.® All rights reserved worldwide. 4

  5. Slide 5: Paul Todd

    Paul Todd Chief Financial Officer © 2015 Total System Services, Inc.® All rights reserved worldwide. 5

  6. Slide 6: Consolidated Selected Financial Highlights

    2015 First Quarter and YTD Results > CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS YTD YTD Percent 2015 2014 Change (in thousands, except per share data) Total Revenues $662,156 $592,848 11.7% Revenues Before Reimbursable Items 595,784 532,750 11.8 Adjusted EBITDA* 193,454 149,596 29.3 Adjusted EBITDA

  7. Slide 7: 1Q 2015 Consolidated Highlights

    2015 First Quarter and YTD Results > 1Q 2015 CONSOLIDATED HIGHLIGHTS ➔ Double digit organic revenue growth Revenue by Segment* ➔ Strong cross segment delivery of performance ➔ Volume gains: North America ➔ AOF increased 30.1% 26% International ➔ All-time AOF high of 724M 43% Merchant ➔ Transactions

  8. Slide 8: 1Q 2015 North America Segment Highlights

    2015 First Quarter and YTD Results > 1Q 2015 NORTH AMERICA SEGMENT HIGHLIGHTS 653.2 ➔ Bank of America conversion completed Accounts on File YOY Growth % ➔ All-time quarterly highs － Revenue and operating income 541.4 550.0 (in millions) 510.3 － Accounts on file up 31.8% to 653.2M 481.9 495.5 461.4 －

  9. Slide 9: 1Q 2015 International Segment Highlights

    2015 First Quarter and YTD Results > 1Q 2015 INTERNATIONAL SEGMENT HIGHLIGHTS Accounts on File ➔ Virgin Money migration completed YOY Growth % 70.5 ➔ Revenue up across all lines of business (in millions) 66.6 64.1 ➔ Accounts on file increased 16.1% 60.7 62.3 to 70.5M 58.0 59.2 59.1 ➔ Transactions in

  10. Slide 10: 1Q 2015 Merchant Segment Highlights

    2015 First Quarter and YTD Results > 1Q 2015 MERCHANT SEGMENT HIGHLIGHTS Segment Revenue by LOB ➔ Revenue up 5.5% and operating margin up ($ in millions) YOY Growth % 207 bps YoY ➔ Revenue mix: 61% Direct; 39% Indirect $59 $62 $65 $64 $67 $62 $63 $62 ➔ SBS Sales Volume at $5.8B, up 9.9% YoY 55% 26%

  11. Slide 11: 1Q 2015 NetSpend Segment Highlights

    2015 First Quarter and YTD Results > 1Q 2015 NETSPEND SEGMENT HIGHLIGHTS Gross Dollar Volume ➔ Completed launch of Brinks Prepaid MasterCard YOY Growth % $7.7 ➔ All-time quarterly revenue high ($ in billions) $6.6 ➔ Gross Dollar Volume (GDV) up 16.7% ➔ Total Active Cards at 4.2M, up 14.7% ➔ Direct D

  12. Slide 12: Segment Operating Margin and Consolidated Adjusted Operating Margin

    2015 First Quarter and YTD Results > SEGMENT OPERATING MARGIN AND CONSOLIDATED ADJUSTED OPERATING MARGIN Three Months Ended March 31, 2015 Adjusted Revenues before (in thousands) Segment Reimbursable Adjusted Operating Income Items Operating Margin North America $102,570 $266,219 38.53% Internationa

  13. Slide 13: Rollforward of Quarterly Cash Balance

    2015 First Quarter and YTD Results > ROLLFORWARD OF QUARTERLY CASH BALANCE (in millions) Operating Activities Cap Ex $500 $158 ($44) Share Repurchase ($54) $400 Debt Pmts Ending ($15) Dividends Other ($18) Balance Beginning $12 $328 Balance $300 $289 $200 $100 $0 12/31/2014 3/31/2015 © 2015 Total Sy

  14. Slide 14: Cash Flow Strength: 2015 TTM Consolidated Financial Highlights

    2015 First Quarter and YTD Results > CASH FLOW STRENGTH: 2015 TTM Consolidated Financial Highlights (in millions) $825 $756 $750 $675 $600 $570 $525 $450 $375 $338 $357 $328 $300 $225 $150 $75 $0 Adjusted EBITDA Cash flow from operations Free cash flow Net income Ending cash (TTM = Trailing Twelve M

  15. Slide 15: 2015 Revised Guidance

    2015 Revised Guidance* (in millions, except per share data) Range Range Percent Change Total Revenues $2,620 to $2,660 7% to 9% Revenues Before Reimbursable Items $2,370 to $2,410 8% to 10% Adjusted EPS attributable to TSYS common shareholders from continuing operations $2.19 to $2.23 12% to 14% Ave

  16. Slide 16: Q&A

    Q&A © 2015 Total System Services, Inc.® All rights reserved worldwide. 16

  17. Slide 17: Appendix

    Appendix © 2015 Total System Services, Inc.® All rights reserved worldwide. 17

  18. Slide 18: Non-GAAP Items – Adjusted EBITDA and Adjusted EPS

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Items – Adjusted EBITDA and Adjusted EPS ➔ Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), taxes, depreciation, amortization and stock-based compensation expenses and NetSpend merge

  19. Slide 19: Accounts on File Portfolio Summary

    2015 First Quarter and YTD Results > APPENDIX: Accounts on File Portfolio Summary (in millions) Mar Mar % Mar Dec % 2015 2014 Change 2015 2014 Change Consumer Credit 364.5 234.8 55.3 364.5 270.0 35.0 Retail 28.3 27.5 2.6 28.3 28.4 (0.5) Total Consumer 392.8 262.3 49.8 392.8 298.4 31.6 Commercial 42.

  20. Slide 20: Non-GAAP Reconciliation – Revenues Before Reimbursable Items

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended 3/31/15 3/31/14 Total revenues $662,156 $592,848 Reimbursable items 66,372 60,098 Revenues before reimbursable items $595,784 $532,750 © 2015 Total System Ser

  21. Slide 21: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Margin

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Operating Margin Three Months Ended (in thousands) 3/31/15 3/31/14 Operating income $122,496 $80,697 Add: Acquisition intangible amort 23,867 24,313 Add: Corporate admin and other 32,772 33

  22. Slide 22: Non-GAAP Reconciliation – Constant Currency

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Months Ended Change Consolidated: 3/31/15 3/31/14 Constant currency (1) $669,863 $592,848 13.0% Foreign currency (2) (7,707) --- Total revenues $662,156 $592,848 11.7% Internati

  23. Slide 23: Non-GAAP Reconciliation – Constant Currency

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Months Ended Change Consolidated: 3/31/15 3/31/14 Constant currency (1) $602,902 $532,750 13.2% Foreign currency (2) (7,118) --- Revenues before reimbursable items $595,784 $532

  24. Slide 24: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (in thousands) Three Months Ended Mar Mar 2015 2014 Net income : As reported (GAAP) (a) $78,899 $51,625 Adjusted for: Add/(Deduct): Loss/(Income) from discontinued operations -- (980) Deduct: Equity i

  25. Slide 25: Non-GAAP Reconciliation – Adjusted EPS

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Adjusted EPS (in thousands) Three Months Ended Mar Mar 2015 2014 Income from continuing operations available to TSYS common shareholders: As reported (GAAP) (a) $77,755 $49,321 Adjusted for amounts attributable to TSYS common s

  26. Slide 26: Non-GAAP Reconciliation – Free Cash Flow

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended 3/31/2015 Cash flows from operating activities $569,987 Less: Purchases of property and equipment (72,320) Additions to licensed computer software from vendors (35,256)

  27. Slide 27: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA

    2015 First Quarter and YTD Results > APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Trailing Twelve (in thousands) Months Ended 3/31/2015 Net Income $356,679 Adjusted for: Deduct: Discontinued operations (47,674) Deduct: Equity in Income of Equity Investments (18,881) Add: Income Tax

  28. Slide 28: Appendix: 2015 Revised Guidance Assumptions

    Appendix: 2015 Revised Guidance Assumptions The guidance assumes: • There will be no significant movements in the London Interbank Offered rate and TSYS will not make any significant draws on the remaining balance of its credit facility; • There will be no significant movement in foreign currency ex

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