Total System Services — Q2 2011 Earnings Presentation
21 slides from Total System Services's earnings presentation, Jul 26, 2011
Slide 1: 2011 Second Quarter Results
2011 Second Quarter Results July 26, 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) 2nd Qtr 2nd Qtr Percent YTD YTD Percent 2011 2010 Change 2011 2010 Change $ 447,554 $ 430,887 3.9% Total Revenues $ 876,985 $ 844,350 3.9% 380,211 362,739 4.8 Revenues Before Reimbursable Items 742,854 705,400 5.3 78,529
Slide 7: Consolidated Selected Financial Highlights (Excluding Termination Fees)
Consolidated Selected Financial Highlights (in thousands except per share data) Excluding Termination Excluding Termination Fees (non-GAAP) Fees (non-GAAP) 2nd Qtr 2nd Qtr Percent YTD YTD Percent 2011 2010 Change 2011 2010 Change $ 447,554 $ 421,359 6.2% Total Revenues $ 876,985 $ 811,683 8.0% 380,2
Slide 8: 2011 YTD Revenue Change
2011 YTD Revenue Change Revenues Before Reimbursable Items 25% 20% Currency 15% Lost Acquisitions 1.7% Business, Non-recurring Items and 10% New 4.8% Price Compression Clients (8.3%) Internal Reported 5% Growth 3.7% 5.3% 3.4% 0% 8 ©2011 Total System Services, Inc.® Proprietary. All rights reserved w
Slide 9: Consolidated Accounts on File Portfolio Summary
Consolidated Accounts on File Portfolio Summary (in millions) June June % June March % 2011 2010 Change 2011 2011 Change Consumer Credit 187.6 180.9 3.7 187.6 183.4 2.3 Government Services 30.0 27.0 11.3 30.0 29.0 3.6 Retail 23.7 23.6 0.4 23.7 24.6 (3.5) Total Consumer 241.3 231.5 4.2 241.3 237.0 1.
Slide 10: 2Q 2011 Segment Financial Highlights: North America Services
2Q 2011 Year Over Year Segment Financial Highlights North America Key Drivers Services • Client deconversion and termination fees Revenues $233.9 million – $9.5 million in 2Q 2010 revenues associated with Excluding Reimbursables termination fees $198.8 million – $3.7 million revenue decrease associa
Slide 11: 2Q 2011 Segment Financial Highlights: International Services
2Q 2011 Year Over Year Segment Financial Highlights International Key Drivers Services • Favorable currency impact on revenues of Revenues $97.7 million $8.8 million Constant currency basis • Conversion of new clients $88.9 million Operating Income $10.1 million Operating Margin 10.4% • Volumes Excl
Slide 12: 2Q 2011 Segment Financial Highlights: Merchant Services
2Q 2011 Year Over Year Segment Financial Highlights Merchant Key Drivers Services • Acquisition of TermNet Revenues $123.1 million • Decline in revenues associated with Excluding Reimbursables deconverted clients $93.0 million Operating Income $25.7 million Operating Margin • Volumes 20.9% – Point-o
Slide 13: Cash Flow Strength: 2011 TTM Consolidated Financial Highlights
Cash Flow Strength: 2011 TTM Consolidated Financial Highlights (in millions) $525 $469 $450 $393 $375 $300 $225 $199 $205 $150 $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: TSYS M&A Financial Objectives
TSYS M&A Financial Objectives Components Measurements • Payment industry • Focus within the payment industry Strategic Fit • Culture • Geographic region • Culture fit with TSYS • Leverage platform scale in new geographic areas • Product • Expand product offering • Revenue • Revenue growth of target
Slide 15: Appendix
Appendix © 2011 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 Six Months Ended 6/30/11 6/30/10 6/30/11 6/30/10 $ 844,350 Total Revenues $ 447,554 $ 430,887 $ 876,985 Reimbursable Items 67,343 68,148 134,131 138,950 Revenues Before Reimbursable Items $ 380,21
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 6/30/11 6/30/10 6/30/11 6/30/10 6/30/11 6/30/10 $ 64,068 Operating Income (a) $ 66,218 $ 10,122 $ 11,6
Slide 18: Non-GAAP Reconciliation – Excluding Termination Fees
Appendix Non-GAAP Reconciliation – Excluding Termination Fees (in thousands) Three Months Ended Six Months Ended June 30, 2010 June 30, 2010 Less Less Termination Non- Termination GAAP Fees GAAP GAAP Fees Non-GAAP Total Revenues $430,887 9,528 $421,359 $844,350 32,667 $811,683 Less Reimbursable Item
Slide 19: Non-GAAP Reconciliation – Constant Currency
Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Six Percentage Months Ended Change Months Ended Change Consolidated: 6/30/11 6/30/10 6/30/11 6/30/10 Constant Currency (1) $ 438,806 $ 430,887 1.8% $ 864,801 $ 844,350 2.4% Foreign Currency (2) 8,748 --- 12,184 ---
Slide 20: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Trailing Twelve Months Ended 6/30/2011 Net Income $ 205,383 Adjusted for: Add: Discontinued Operations 2,544 Deduct: Equity in Income of Equity Investments (6,768) Add: Income Taxes 98,534 Add: Nonoperating expense 1,752 Add: Depreciation and
Slide 21: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended 6/30/2011 Cash Flows from Operating Activities $ 392,746 Less: Purchase of Property and Equipment (41,901) Additions to Licensed Computer Software from Vendors (54,896) Additions to Internally Developed Com
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