Total System Services — Q4 2012 Earnings Presentation
20 slides from Total System Services's earnings presentation, Jan 22, 2013
Slide 1: 2012 Fourth Quarter and Year to Date Results
2012 Fourth Quarter and Year to Date Results January 22, 2013 © 2013 Total System Services, Inc.® 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 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 5: Jim Lipham, Chief Financial Officer
Jim Lipham Chief Financial Officer ©2013 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 2012 2011 Change 2012 2011 Change $ 479,100 $ 472,234 1.5% Total Revenues $ 1,870,972 $ 1,808,966 3.4% 418,569 407,683 2.7 Revenues Before Reimbursable Items 1,618,491 1,540,698 5
Slide 7: 2012 YTD Revenue Change
2012 YTD Revenue Change Revenues Before Reimbursable Items 15% Acquisitions Currency New 1.8% (0.4%) 10% Clients Lost Business, Non-recurring Items and Internal Price Growth 3.2% Compression Reported 5% (4.7%) 5.1% 5.0% 0% 7 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwi
Slide 8: Consolidated Accounts on File Portfolio Summary
Consolidated Accounts on File Portfolio Summary (in millions) Dec Dec % Dec Sep % 2012 2011 Change 2012 2012 Change Consumer Credit 200.5 195.0 2.8 200.5 195.0 2.8 Retail 25.0 24.6 2.0 25.0 24.1 3.8 Total Consumer 225.5 219.6 2.7 225.5 219.1 2.9 Commercial 37.1 35.2 5.3 37.1 36.3 2.3 Other 12.8 7.9
Slide 9: 4Q 2012 Segment Financial Highlights: North America
4Q 2012 Year Over Year Segment Financial Highlights North America Services Key Drivers Revenues • Strong internal growth $247.6 million Increase of 0.6% • Increased volumes Excluding Reimbursables • Pricing concessions $213.6 million Increase of 1.9% • Lost business Operating Income $77.8 million In
Slide 10: 4Q 2012 Segment Financial Highlights: International
4Q 2012 Year Over Year Segment Financial Highlights International International Services Key Drivers Services Revenues • Strong internal growth $107.0 million Increase of 0.4% • Deconversion fee Constant currency basis • Lost business $107.0 million • Conversion of new clients Excluding Reimbursable
Slide 11: 4Q 2012 Segment Financial Highlights: Merchant
4Q 2012 Year Over Year Segment Financial Highlights Merchant Services Key Drivers Revenues • Upward trends in transaction volumes $129.4 million • Strong dollar volume growth in direct acquiring Increase of 2.5% Excluding Reimbursables • Acquisition of Central Payment $105.9 million Increase of 5.5%
Slide 12: Cash Flow Strength: 2012 Consolidated Financial Highlights
Cash Flow Strength: 2012 Consolidated Financial Highlights (in millions) $600 $528 $525 $456 $450 $375 $338 $300 $250 $248 $225 $150 $75 $0 EBITDA Cash flow from operations Free cash flow Net income Ending cash 12 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 13: 2013 Guidance
2013 Guidance (in millions, except per share data) Range Range Change Percent Change Total Revenues $1,955 to $1,995 5% to 7% Revenues Before Reimbursable Items 1,711 to 1,746 6 to 8 Income attributable to TSYS Common Shareholders 266 to 272 9 to 11 Earnings per Share from attributable to TSYS Commo
Slide 14: 2013 Guidance Revenue Change
2013 Guidance Revenue Change Revenues Before Reimbursable Items 20% Acquisitions Currency 0% 3-4% New Lost Business, Clients Non-recurring Items and Price 10% Compression Internal 3-4% Guidance Growth (5-7%) 5-7% 6-8% 0% 14 ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwid
Slide 15: Appendix
Appendix ©2013 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 12/31/12 12/31/11 12/31/12 12/31/11 $ 479,100 $ 472,234 $ 1,870,972 $ 1,808,966 Total Revenues Reimbursable Items 60,531 64,551 252,481 268,268 $ Revenues Before Reimbursable I
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 12/31/12 12/31/11 12/31/12 12/31/11 12/31/12 12/31/11 $ 77,801 $ 66,560 $ 6,058 $ 11,983 $ 30,438 $ 32
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 12/31/12 12/31/11 12/31/12 12/31/11 Consolidated: $ Constant Currency (1) $ 479,027 $ 472,234 1.4% $1,876,979 1,808,966 3.8% Foreign Currency (2) 73 --- (6,0
Slide 19: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Twelve Months Ended 12/31/2012 Net Income $ 249,922 Adjusted for: Deduct: Equity in Income of Equity Investments (10,171) Add: Income Taxes 115,103 Add: Nonoperating expense 2,798 Add: Depreciation and Amortization 170,610 EBITDA $ 528,263 19
Slide 20: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Twelve Months Ended 12/31/2012 Cash Flows from Operating Activities $ 455,753 Less: Purchase of Property and Equipment (31,434) Additions to Licensed Computer Software from Vendors (33,001) Additions to Internally Developed Computer So
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