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October 25, 2011 04:01 PM Eastern Daylight Time
COLUMBUS, Ga.--(BUSINESS WIRE)--TSYS (NYSE: TSS) today reported results for the third quarter 2011 with total revenues of $459.7 million, an increase of 6.1% over 2010. Basic earnings per share (EPS) were $0.30, an increase of 30.6% over 2010. Total issuer cardholder transactions increased 12.7% for the quarter, the seventh consecutive quarter of increased growth and the fourth straight quarter with double digit growth. Accounts on file were 392.4 million, an increase of 15.7% over last year.
For the nine months ended September 30, 2011, total revenues increased 4.6% over 2010 and were up 7.4% excluding 2010 termination fees. Basic EPS were $0.83, a 12.1% increase over 2010, and increased 30.8% excluding 2010 termination fees.
TSYS today also announced that its Board of Directors approved a 42.9% increase in the regular quarterly dividend payable on TSYS common stock from $0.07 per share to $0.10 per share, payable on January 3, 2012 to shareholders of record as of the close of business on December 15, 2011.
“Given the resiliency of the card market, the increase in transactions, addition of new accounts from our sales pipeline and associated fees, we are raising our revenue guidance to a range of 4% to 5% for total revenues and 5% to 6% for revenues before reimbursable items. As a result of improved operations, lower effective tax rates and share repurchases, which are partially offset by negative currency impact, we are raising our guidance for income from continuing operations to a range of $219 to $221 million, and our EPS guidance to a range of $1.14 to $1.15,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
“In the third quarter, we purchased 2.2 million shares for $37.2 million, bringing the year-to-date total to 4.2 million shares for $72.9 million. During the year, we returned $40.6 million to shareholders through dividends. We are pleased to announce an increase to shareholder return by raising our quarterly dividend 42.9%, to $0.10 per share. We believe this demonstrates our ongoing confidence in the long-term strength of our business and rewards our shareholders,” said Tomlinson.
TSYS’ revised guidance for 2011 is as follows:
| Revised 2011 Guidance | ||||||||||||||||||||||
| Range | ||||||||||||||||||||||
(in millions, except per
share amounts) | Percent
Change
| |||||||||||||||||||||
| Total revenues | $ | 1,786 | to | $ | 1,800 | 4 | % | to | 5 | % | ||||||||||||
| Reimbursable items | $ | 266 | to | $ | 270 | (3 | %) | to | (2 | %) | ||||||||||||
| Revenues before reimbursable items | $ | 1,520 | to | $ | 1,530 | 5 | % | to | 6 | % | ||||||||||||
| Income from continuing operations | $ | 219 | to | $ | 221 | 11 | % | to | 12 | % | ||||||||||||
| EPS from continuing operations* | $ | 1.14 | to | $ | 1.15 | 14 | % | to | 15 | % | ||||||||||||
| Average Shares Outstanding | 192.0 | |||||||||||||||||||||
* EPS Calculations reflect the impact of TSYS’ share repurchase program
| ||||||||||||||||||||||
Conference Call
TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, October 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.
Non-GAAP Measures
This press release and the financial highlights section of this release contain the non-GAAP financial measures of revenues and basic EPS excluding revenues from termination fees and revenues and operating results on a constant currency basis, respectively, to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.
Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 10 and 11 of this release.
About TSYS
TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers, supporting cross-border payments in more than 85 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.
