Total System Services — Q4 2011 Earnings Presentation
20 slides from Total System Services's earnings presentation, Jan 24, 2012
Slide 1: 2011 Fourth Quarter and YTD Results
2011 Fourth Quarter and YTD Results January 24, 2012 © 2012 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 © 2012 Total System Services, Inc. ® .® Proprietary. All rights reserved worldwide.
Slide 5: Jim Lipham, Chief Financial Officer
Jim Lipham Chief Financial Officer © 2012 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) 4th Qtr 4th Qtr Percent YTD YTD Percent 2011 2010 Change 2011 2010 Change $ 472,234 $ 439,991 7.3% Total Revenues $ 1,808,966 $ 1,717,577 5.3% 407,683 373,844 9.1 Revenues Before Reimbursable Items 1,540,698 1,442,436 6
Slide 7: 2011 YTD Revenue Change
2011 YTD Revenue Change Revenues Before Reimbursable Items 15% Currency Acquisitions 1.2% Lost Business, 10% Non-recurring Items and New 2.9% Price Clients Compression (5.1%) Reported Internal 3.4% 5% Growth 6.8% 4.4% 0% 7 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide
Slide 8: Consolidated Accounts on File Portfolio Summary
Consolidated Accounts on File Portfolio Summary (in millions) Dec Dec % Dec Sep % 2011 2010 Change 2011 2011 Change Consumer Credit 195.0 179.4 8.7 195.0 194.2 0.4 Government Services 29.7 28.1 5.7 29.7 32.6 (8.9) Retail 24.6 24.2 1.4 24.6 23.2 6.0 Total Consumer 249.3 231.7 7.6 249.3 250.0 (0.3) Co
Slide 9: 4Q 2011 Segment Financial Highlights: North America Services
4Q 2011 Year Over Year Segment Financial Highlights North America Key Drivers Services • Strong organic growth Revenues $246.2 million • Increased volumes Excluding Reimbursables $209.6 million Operating Income $66.6 million Operating Margin 27.0% • Volumes – Accounts on file were 351.4 million Excl
Slide 10: 4Q 2011 Segment Financial Highlights: International Services
4Q 2011 Year Over Year Segment Financial Highlights International Key Drivers Services • Strong organic growth Revenues $106.6 million • Conversion of new clients Constant currency basis $106.5 million Operating Income $12.0 million Operating Margin 11.2% Excluding Reimbursables • Volumes 11.7% – Ac
Slide 11: 4Q 2011 Segment Financial Highlights: Merchant Services
4Q 2011 Year Over Year Segment Financial Highlights Merchant Key Drivers Services • Acquisition of TermNet Revenues $126.2 million • Decline in revenues associated with Excluding Reimbursables deconverted clients $100.4 million Operating Income $33.0 million Operating Margin • Volumes 26.1% – Point-
Slide 12: Cash Flow Strength: 2011 Consolidated Financial Highlights
Cash Flow Strength: 2011 Consolidated Financial Highlights (in millions) $525 $492 $450 $436 $375 $340 $316 $300 $223 $225 $150 $75 $0 EBITDA Cash flow from operations Free cash flow Net income Ending cash 12 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 13: 2012 Guidance
2012 Guidance (in millions, except per share data) Range Range Change Percent Change Total Revenues $1,809 to $1,845 0% to 2% Revenues Before Reimbursable Items 1,569 to 1,624 2 to 5 Income from Continuing Operations Available to TSYS Common Shareholders 238 to 243 8 to 10 Earnings per Share from Co
Slide 14: 2012 Guidance Revenue Change
2012 Guidance Revenue Change Revenues Before Reimbursable Items 10% Acquisitions Currency 1% 0% New Clients Lost Business, Non-recurring Items and Price 3-5% Compression 5% Internal Growth (5-6%) Guidance 3-5% 2-5% 0% 14 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 15: Appendix
Appendix © 2012 Total System Services, Inc. ® .® Proprietary. All rights reserved worldwide.
Slide 16: Non-GAAP Reconciliation – Revenues Before Reimbursable Items
Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended Twelve Months Ended 12/31/11 12/31/10 12/31/11 12/31/10 $ 1,808,966 $ 1,717,577 Total Revenues $ 472,234 $ 439,991 Reimbursable Items 64,551 66,147 268,268 275,141 Revenues Before Reimbursable Ite
Slide 17: 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 $ 111,983 12/31/11 12/31/10 2/31/11 12/31/10 12/31/11 12/31/10 $ 66,560 $ 56,339 $ 32,958 $ 29,782 Ope
Slide 18: Non-GAAP Reconciliation – Constant Currency
Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Twelve Percentage Months Ended Change Months Ended Change Consolidated: 12/31/11 12/31/10 12/31/11 12/31/10 Constant Currency (1) $ 472,017 $ 439,991 7.3% $ 1,791,670 $ 1,717,577 4.3% Foreign Currency (2) 217 --- 17
Slide 19: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Twelve Months Ended 12/31/2011 Net Income $ 222,662 Adjusted for: Deduct: Equity in Income of Equity Investments (8,708) Add: Income Taxes 102,597 Add: Nonoperating expense 5,904 Add: Depreciation and Amortization 169,165 EBITDA $ 491,620 19 ©
Slide 20: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Twelve Months Ended 12/31/2011 Cash Flows from Operating Activities $ 435,773 Less: Purchase of Property and Equipment (26,938) Additions to Licensed Computer Software from Vendors (19,502) Additions to Internally Developed Computer So
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