Total System Services — Q1 2013 Earnings Presentation
18 slides from Total System Services's earnings presentation, Apr 23, 2013
Slide 1: 2013 First Quarter Results
2013 First Quarter Results April 23, 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 subject
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) 1st Qtr 1st Qtr Percent 2013 2012 Change Total Revenues $ 464,996 $ 461,162 0.8% Revenues Before Reimbursable Items 404,237 395,180 2.3 Operating Income 74,903 84,831 (11.7) Net Income Attributable to TSYS Common Shareh
Slide 7: 2013 YTD Revenue Change
2013 YTD Revenue Change Revenues Before Reimbursable Items Acquisitions Currency 12% 4.4% (1.0%) 9% New Clients Lost 6% Business, Non-recurring Internal Items and Growth 2.6% Price Compression 3% Reported 3.9% (7.6%) 2.3% 0% 7 ©2013 Total System Services, Inc.® Proprietary. All rights reserved world
Slide 8: Consolidated Accounts on File Portfolio Summary
Consolidated Accounts on File Portfolio Summary (in millions) Mar Mar % Mar Dec % 2013 2012 Change 2013 2012 Change Consumer Credit 203.8 197.2 3.3 203.8 200.5 1.6 Retail 25.2 25.3 (0.3) 25.2 25.0 0.7 Total Consumer 229.0 222.5 2.9 229.0 225.5 1.5 Commercial 37.9 35.5 6.6 37.9 37.1 2.1 Other 13.4 9.
Slide 9: 1Q 2013 Segment Financial Highlights: North America Services
1Q 2013 Year Over Year Segment Financial Highlights North America Services Key Drivers Revenues • Strong internal growth $239.8 million Decrease of 0.3% • Increased volumes Excluding Reimbursables • Pricing concessions $205.6 million Increase of 0.8% • Lost business Operating Income $67.2 million De
Slide 10: 1Q 2013 Segment Financial Highlights: International Services
1Q 2013 Year Over Year Segment Financial Highlights International International Services Key Drivers Services Revenues • Strong internal growth $97.1 million Decrease of 3.3% • Deconversion fee Constant currency basis $101.2 million • Lost business Excluding Reimbursables $92.6 million Decrease of 4
Slide 11: 1Q 2013 Segment Financial Highlights: Merchant Services
1Q 2013 Year Over Year Segment Financial Highlights Merchant Services Key Drivers Revenues • Upward trends in transaction volumes $132.9 million excluding deconversions Increase of 5.9% Excluding Reimbursables • Strong dollar volume growth in direct acquiring $109.3 million • Acquisitions of Central
Slide 12: Cash Flow Strength: 2013 TTM Consolidated Financial Highlights
Cash Flow Strength: 2013 TTM Consolidated Financial Highlights (in millions) $600 $520 $525 $450 $410 $375 $300 $254 $251 $223 $225 $150 $75 $0 EBITDA Cash flow from operations Free cash flow Net income Ending cash TTM = Trailing Twelve Months 12 ©2013 Total System Services, Inc.® Proprietary. All r
Slide 13: Appendix
Appendix ©2013 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 14: Non-GAAP Reconciliation – Revenues Before Reimbursable Items
Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended 3/31/13 3/31/12 Total Revenues $ 464,996 $ 461,162 Reimbursable Items 60,759 65,982 Revenues Before Reimbursable Items $ 404,237 $ 395,180 14 ©2013 Total System Services, Inc.® Proprietary. All ri
Slide 15: 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 3/31/13 3/31/12 3/31/13 3/31/12 3/31/13 3/31/12 Operating Income (a) $ 67,202 $ 68,347 $ 6,626 $ 4,113
Slide 16: Non-GAAP Reconciliation – Constant Currency
Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Three Percentage Months Ended Change 3/31/13 3/31/12 Consolidated: Constant Currency (1) $ 469,016 $ 461,162 1.7% Foreign Currency (2) (4,020) --- Total Revenues $464,996 $461,162 0.8% International Services: Constant Currency (1) $
Slide 17: Non-GAAP Reconciliation – EBITDA
Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Trailing Twelve Months Ended 3/31/2013 Net Income $ 251,428 Adjusted for: Deduct: Equity in Income of Equity Investments (11,214) Add: Income Taxes 103,392 Add: Nonoperating expense 4,118 Add: Depreciation and Amortization 172,235 EBITDA $ 519
Slide 18: Non-GAAP Reconciliation – Free Cash Flow
Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended 3/31/2013 Cash Flows from Operating Activities $ 410,277 Less: Purchase of Property and Equipment (32,893) Additions to Licensed Computer Software from Vendors (60,312) Additions to Internally Developed Com
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