TSYS Provides 2011 Guidance of 9% - 11% EPS Growth and Reports 2010 Fourth Quarter and Full Year Financial Results
COLUMBUS, Ga.--(BUSINESS WIRE)--TSYS (NYSE: TSS) today reported results for the fourth quarter and full-year of 2010 that were in-line with consensus estimates for earnings per share (EPS).
For the fourth quarter, total revenues were $440.0 million, an increase of 1.7% over 2009. Basic EPS from continuing operations were $0.24, down $0.07 or 20.9%. Excluding termination fees in the fourth quarter of 2009, total revenues were up 6.0% and basic EPS from continuing operations were down 3.2%.
For the year 2010, total revenues were $1.7 billion, up 2.4% over 2009. Basic EPS from continuing operations were $1.00, down $0.12 or 10.7%. Excluding termination fees in 2009 and 2010, total revenues were up 3.0% and basic EPS from continuing operations were down 9.1%.
TSYS’ 2011 guidance includes revenues before reimbursable growth of 3% - 5% and basic EPS from continuing operations growth of 9% - 11%.
“While 2010 was a very challenging year, we are pleased to have met the high end range of our guidance for net income and EPS for the year. We continued to see growth in transactions in our card issuing services and merchant business for the fourth quarter that resulted in organic revenue growth of 4.0% and same client issuer transactions increased 5.3% for the year. Including the acquisition of TSYS Merchant Solutions (formerly First National Merchant Solutions), revenues from our Merchant Segment rose from 19% to 27% of consolidated total revenues. We believe this diversification will contribute to our growth and benefit our margins in the future,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
“Our guidance for 2011 reflects our renewed enthusiasm for growth in all of our business segments. Excluding the termination fees in 2010, our 2011 guidance for revenues before reimbursable items are projected to be up 6% - 8%, and net income from continuing operations is projected to be up 20% - 22%,” said Tomlinson.
TSYS’ guidance for 2011 is as follows:
| 2011 Guidance | ||||||||||||||||||||||
| Range | ||||||||||||||||||||||
(in millions, except per share amounts) | Percent Change | |||||||||||||||||||||
| Total revenues | $ | 1,748 | to | $ | 1,788 | 2 | % | to | 4 | % | ||||||||||||
| Reimbursable items | $ | 260 | to | $ | 267 | (5 | %) | to | (3 | %) | ||||||||||||
| Revenues before reimbursable items | $ | 1,488 | to | $ | 1,521 | 3 | % | to | 5 | % | ||||||||||||
| Income from continuing operations | $ | 211 | to | $ | 216 | 7 | % | to | 9 | % | ||||||||||||
| EPS from continuing operations | $ | 1.09 | to | $ | 1.11 | 9%* | to | 11%* | ||||||||||||||
| Average Shares Outstanding | 194.5 | |||||||||||||||||||||
NOTE: * Denotes rounding
Conference Call
TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, January 25. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under "Webcasts" on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under "Webcasts" on the main homepage of tsys.com.
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