-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R/0t+cmLKJMxF8M0HAoFVs2yYkhStG5eMqVFEFsRXjQ7y9k8NaYKaOWeiBfTMkYY G+kptC+jCTGuYIvaRAveEA== 0000721683-05-000018.txt : 20050719 0000721683-05-000018.hdr.sgml : 20050719 20050719162535 ACCESSION NUMBER: 0000721683-05-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050719 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050719 DATE AS OF CHANGE: 20050719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOTAL SYSTEM SERVICES INC CENTRAL INDEX KEY: 0000721683 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 581493818 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10254 FILM NUMBER: 05961862 BUSINESS ADDRESS: STREET 1: 1600 FIRST AVENUE STREET 2: P O BOX 1755 CITY: COLUMBUS STATE: GA ZIP: 31901 BUSINESS PHONE: 7066492267 MAIL ADDRESS: STREET 1: 1600 FIRST AVENUE CITY: COLUMBUS STATE: GA ZIP: 31901 8-K 1 july8k.htm FORM 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

July 19, 2005

Date of Report

(Date of Earliest Event Reported)

 

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Georgia
(State of Incorporation)

1-10254
(Commission File Number)

58-1493818
(IRS Employer Identification No.)

 

1600 First Avenue, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

 

(706) 649-2267

(Registrant's telephone number, including area code)

 

________________________________________________

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 



  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 



  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 



Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 



Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

 

On July 19, 2005, Total System Services, Inc. (“Registrant”) issued a press release and will hold an investor call and webcast on July 20, 2005 to disclose financial results for the quarter ended June 30, 2005. The press release and Supplemental Information for use at this investor call are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This information shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure.

 

See Item 2.02 above.

 

 

 

 

Item 9.01

Financial Statements and Exhibits.

 

 

 

 

 

 

(c)

Exhibits

 

 

Exhibit No.

Description

 

 

99.1

Registrant's press release dated July 19, 2005 in connection with financial results

 

99.2

Supplemental Information prepared for use with the press release

 

 

 

2

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

TOTAL SYSTEM SERVICES, INC.
("Registrant")

 

 

Dated: July 19, 2005

By:/s/ Kathleen Moates
Kathleen Moates
Senior Deputy General Counsel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 EX-99.1 2 newsrelease.txt REGISTRANT'S PRESS RELEASE DATED JULY 19, 2005 IN CONNECTION WITH FINANCIAL RESULTS Exhibit 99.1 TSYS News Release - -------------------------------------------------------------------------------- For Immediate Release Contacts: James B. Lipham Leo S. Berard Chief Financial Officer TSYS Investor Relations +1.706.649.2262 +1.706.644.6081 leoberard@tsys.com TSYS Reports 41.1% Increase in Net Income for Second Quarter As Momentum Continues, Company Raises 2005 Earnings Guidance to 25%-28% Columbus, Ga., July 19, 2005 -- TSYS(R) today announced that its financial results for the second quarter of 2005 exceeded its earnings per share expectations. As a result of the continued momentum, TSYS has increased its earnings guidance for 2005 from 22%-25% to 25%-28%. Below is a summary of the results for the quarter and six months ended June 30, 2005, as compared to the same periods in 2004, respectively:
Three Months Ended Six Months Ended June 30, June 30, -------------------------------------- --------------------------------------- (dollars in millions, except earnings per Percent Percent share data) 2005 2004 Change 2005 2004 Change ------------------------------------------------ ------------ ------------ ------------ ------------ ------------ ------------- Revenues Before Reimbursables $331.1 $233.7 41.7% $611.4 $458.3 33.4% Total Revenues 410.2 289.6 41.6% 760.2 574.9 32.2% Operating Income 76.3 47.3 61.5% 142.7 91.4 56.0% Net Income 50.6 35.9 41.1% 96.8 68.4 41.4% Basic EPS 0.26 0.18 41.0% 0.49 0.35 41.2% Diluted EPS 0.26 0.18 41.0% 0.49 0.35 41.3%
"We are very excited with the results for the second quarter," said Philip W. Tomlinson, chief executive officer. "The strength in the reported earnings for the quarter was the result of continued strong growth in our fundamental core business, the benefits gained through improved operating leverage, as well as the acquisition of Vital. As a result, we are increasing our earnings guidance from 22%-25% to 25%-28% for the year." Highlights for the quarter include: * TSYS reached an agreement in principle with Capital One Financial Corporation to provide processing services for its North American portfolio of consumer and small business credit card accounts. TSYS continues its exclusive negotiations with Capital One. * TSYS signed Fifth Third Bancorp and successfully converted its Visa and MasterCard consumer credit portfolio to TS2. * TSYS approved a quarterly cash dividend of $0.06 per share, an increase of 50 percent from the previous dividend rate. TSYS has increased its dividend payment for 6 consecutive years. -- more -- TSYS Reports Results For Second Quarter 2005/Page 2 of 9 * TSYS renewed its agreement with Navy Federal Credit Union, the world's largest credit union, to continue processing more than 1 million credit card accounts for an additional five years. "We continue to build momentum and long-term earnings visibility with the Chase Card Services conversion scheduled for the end of this month, as well as the upcoming opportunity with Capital One. We have experienced outstanding growth for the first two quarters of the year and are very excited about the prospects for the remainder of 2005 and beyond," said Tomlinson. Revised Projected Outlook for 2005 TSYS now expects its net income growth to be in the range of 25%-28%. TSYS' net income forecast is based on the following assumptions: 1. Total revenues will increase 31%-33% 2. Vital Processing Services will add $225 - $235 million in annual revenue 3. Accounts on file at the end of 2005 will be between 430 and 435 million Conference Call TSYS will host its quarterly conference call at 8:30 a.m. EDT, July 20, 2005. The conference call can be accessed at www.tsys.com by clicking on the "Conference Call" icon on the homepage. The replay will be available approximately 30 minutes after the completion of the call. About TSYS TSYS (NYSE: TSS) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. Synovus (NYSE: SNV) owns an 81-percent interest in TSYS. For more information, contact news@tsys.com. This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding TSYS' expected net income growth for 2005; the scheduled Chase Card Services conversion; and the assumptions underlying such statements, including, with respect to TSYS' expected increase in net income for 2005, an increase in total revenues of 31-33%; Vital Processing Services adding $225-$235 million in annual revenues; and accounts on file at the end of 2005 will be between 430 and 435 million. These statements are based on the current beliefs and expectations of TSYS' management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS' ability to control or predict. These factors include, but are not limited to, revenues that are lower than anticipated; Vital's addition to revenue is lower than anticipated; accounts on file at the end of 2005 are lower than anticipated; TSYS incurs expenses associated with the signing of a significant client; internal growth rates for TSYS' existing clients are lower than anticipated; TSYS does not convert clients' portfolios as scheduled; adverse developments with respect to foreign currency exchange rates; adverse developments with respect to entering into contracts with new clients and retaining current clients; the merger of TSYS clients with entities that are not TSYS clients or the sale of portfolios by TSYS clients to entities that are not TSYS clients; TSYS is unable to control expenses and increase market share; -- more -- TSYS Reports Results For Second Quarter 2005/Page 3 of 9 adverse developments with respect to the credit card industry in general; TSYS is unable to successfully manage any impact from slowing economic conditions or consumer spending; the impact of acquisitions, including their being more difficult to integrate than anticipated; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; the impact of changes in accounting principles; overall market conditions; no material breach of the security of any of our systems; and the impact on TSYS' business, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts. Additional factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS' filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise. -- more -- EX-99.2 3 earnings.txt SUPPLEMENTAL INFORMATION PREPARED FOR USE WITH THE PRESS RELEASE Exhibit 99.2 TSYS Announces Second Quarter 2005 Earnings Page 4 of 9
- ------------------------------------------------------------------------------------------------------------------------------------ TSYS Financial Highlights (Unaudited) (In thousands, except per share data) --------------------------------------- -------------------------------------- Three Months Ended Six Months Ended June 30, June 30, --------------------------------------- -------------------------------------- Percentage Percentage 2005 2004 Change 2005 2004 Change ------------ ------------ ---------- ----------- ----------- ---------- Revenues Electronic payment processing services $ 217,048 184,987 17.3 % $ 421,805 362,378 16.4 % Merchant services 68,696 6,876 899.0 95,801 13,241 623.5 Other services 45,324 41,827 8.4 93,838 82,675 13.5 ------------ ------------ ----------- ----------- Revenues before reimbursables 331,068 233,690 41.7 611,444 458,294 33.4 Reimbursable items 79,175 55,932 41.6 148,783 116,564 27.6 ------------ ------------ ----------- ----------- Total revenues 410,243 289,622 41.6 760,227 574,858 32.2 ------------ ------------ ----------- ----------- Expenses Employment expenses 117,201 82,224 42.6 214,718 170,086 26.2 Net occupancy & equipment expenses 68,496 66,493 3.0 133,889 124,542 7.5 Other operating expense 69,025 37,701 83.0 120,185 72,252 66.3 ------------ ------------ ----------- ----------- Expenses before reimbursables 254,722 186,418 36.6 468,792 366,880 27.8 Reimbursable items 79,175 55,932 41.6 148,783 116,564 27.6 ------------ ------------ ----------- ----------- Total operating expenses 333,897 242,350 37.8 617,575 483,444 27.7 ------------ ------------ ----------- ----------- Operating Income 76,346 47,272 61.5 142,652 91,414 56.0 ------------ ------------ ----------- ----------- Other Income: Interest income 1,078 537 100.8 2,297 1,042 120.5 Interest expense (105) (39) 172.0 (175) (782) (77.6) Loss on foreign currency translation, net (494) (30) nm (827) (101) 716.7 ------------ ------------ ----------- ----------- Other Income (Expense) 479 468 2.3 1,295 159 717.1 ------------ ------------ ----------- ----------- Income before Income Taxes, Minority Interest and Equity in Income of Joint Ventures 76,825 47,740 60.9 143,947 91,573 57.2 Income Taxes 26,729 18,471 44.7 51,409 35,226 45.9 Minority Interest (43) (67) (36.3) (112) (160) (29.8) Equity in Income of Joint Ventures 590 6,684 (91.2) 4,340 12,260 (64.6) ------------ ------------ ----------- ----------- Net Income $ 50,643 35,886 41.1 % $ 96,766 68,447 41.4 % ============ ============ =========== =========== Basic Earnings Per Share $ 0.26 0.18 41.0 % $ 0.49 0.35 41.2 % ============ ============ =========== =========== Diluted Earnings Per Share $ 0.26 0.18 41.0 % $ 0.49 0.35 41.3 % ============ ============ =========== =========== Dividend Declared Per Share $ 0.06 0.04 $ 0.10 0.06 ============ ============ =========== =========== Average Common Shares Outstanding 197,078 196,846 197,050 196,845 ============ ============ =========== =========== Average Common and Common Equivalent Shares Outstanding 197,295 197,175 197,265 197,195 ============ ============ =========== =========== Effective Tax Rate 34.8% 34.2% 35.0% 34.2% ============ ============ =========== =========== - ---------------------------------------------------------------------------------------------------------------------- EFFECTIVE INCOME TAX RATE CALCULATION - ---------------------------------------------------------------------------------------------------------------------- Income taxes (A) $ 26,729 18,471 $ 51,409 35,226 ============ ============ =========== =========== Income before Income Taxes, Minority Interest and Equity in Income of Joint Ventures $ 76,825 47,740 $ 143,947 91,573 Adjustments: Equity in Income of Vital - 6,366 3,241 11,567 Minority Interest (43) (67) (112) (160) ------------ ------------ ----------- ----------- Adjusted Income before income taxes (B)$ 76,782 54,039 $ 147,076 102,980 ============ ============ =========== =========== Effective Tax Rate (A/B) 34.8% 34.2% 35.0% 34.2% ============ ============ =========== ===========
nm = not meaningful - more - TSYS Announces Second Quarter 2005 Earnings Page 5 of 9
- ------------------------------------------------------------------------------------------------------------------------------------ TSYS Segment Breakdown (Unaudited) (In thousands) - ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended June 30, 2005 Three Months Ended June 30, 2004 --------------------------------------------------- ---------------------------------------------------- Domestic- International- Merchant Domestic- International- Merchant based support based support Processing Consoli- based support based support Processing Consoli- services services Services dated services services Services dated --------------------------------------------------- -------------------------------------------------- Revenue before reimbursables $ 239,567 30,480 64,864 334,911 207,894 25,796 - 233,690 Intersegment revenue (3,797) - (46) (3,843) - - - - ----------------------------------------------- -------------------------------------------------- Revenues before reimbursables from external customers $ 235,770 30,480 64,818 331,068 207,894 25,796 - 233,690 =============================================== ================================================== Total revenue $ 305,284 35,128 76,103 416,515 262,113 27,511 - 289,624 Intersegment revenue (6,226) - (46) (6,272) (2) - - (2) ----------------------------------------------- -------------------------------------------------- Revenues from external customers $ 299,058 35,128 76,057 410,243 262,111 27,511 - 289,622 =============================================== ================================================== Depreciation and amortization $ 28,096 4,248 4,439 36,783 23,484 3,187 - 26,671 =============================================== ================================================== Segment operating income $ 63,099 (835) 14,082 76,346 40,498 6,774 - 47,272 =============================================== ================================================== Income tax expense $ 21,897 (572) 5,404 26,729 13,758 2,537 2,176 18,471 =============================================== ================================================== Equity in income of joint ventures $ - 590 - 590 - 318 6,366 6,684 =============================================== ================================================== Net Income $ 42,118 (336) 8,861 50,643 27,212 4,485 4,189 35,886 =============================================== ================================================== Identifiable assets 1,239,956 180,384 200,936 1,621,276 Intersegment assets (298,461) (1) (4) (298,466) ------------------------------------------------ Total assets 941,495 180,383 200,932 1,322,810 ================================================ Six Months Ended June 30, 2005 Six Months Ended June 30, 2004 --------------------------------------------------- ---------------------------------------------------- Domestic- International- Merchant Domestic- International- Merchant based support based support Processing Consoli- based support based support Processing Consoli- services services Services dated services services Services dated --------------------------------------------------- -------------------------------------------------- Revenue before reimbursables $ 469,089 61,328 86,152 616,569 409,512 48,782 - 458,294 Intersegment revenue (5,079) - (46) (5,125) - - - - ----------------------------------------------- -------------------------------------------------- Revenues before reimbursables from external customers $ 464,010 61,328 86,106 611,444 409,512 48,782 - 458,294 =============================================== ================================================== Total revenue $ 595,810 71,743 100,929 768,482 522,733 52,129 - 574,862 Intersegment revenue (8,209) - (46) (8,255) (4) - - (4) ----------------------------------------------- -------------------------------------------------- Revenues from external customers $ 587,601 71,743 100,883 760,227 522,729 52,129 - 574,858 =============================================== ================================================== Depreciation and amortization $ 55,555 8,016 5,951 69,522 46,763 6,018 - 52,781 =============================================== ================================================== Segment operating income $ 123,511 2,006 17,135 142,652 80,071 11,343 - 91,414 =============================================== ================================================== Income tax expense $ 42,628 1,067 7,714 51,409 27,140 4,130 3,956 35,226 =============================================== ================================================== Equity in income of joint ventures $ - 1,099 3,241 4,340 - 693 11,567 12,260 =============================================== ================================================== Net Income $ 82,441 1,419 12,906 96,766 53,236 7,602 7,609 68,447 =============================================== ==================================================
Note: Revenues for domestic-based services include electronic payment processing services and other services provided from the United States to clients domiciled in the United States or other countries. Revenues from international-based services include electronic payment processing services and other services provided from outside the United States to clients based mainly outside the United States. Revenues from merchant processing services include Vital's merchant processing and related services. - more - TSYS Announces Second Quarter 2005 Earnings Page 6 of 9
- -------------------------------------------------------------------------------------------------------------- TSYS Balance Sheet (Unaudited) (In thousands) - -------------------------------------------------------------------------------------------------------------- June 30, December 31, 2005 2004 ------------------------------------- Assets Current assets: Cash and cash equivalents $ 143,725 231,806 Restricted cash 27,841 24,993 Accounts receivable, net 209,546 144,827 Deferred income tax assets 6,169 10,791 Prepaid expenses and other current assets 48,135 35,739 ------------------------------------- Total current assets 435,416 448,156 Property and equipment, net 272,092 263,584 Computer software, net 290,585 268,647 Contract acquisition costs, net 159,767 132,428 Equity investments, net 3,888 54,400 Goodwill, net 111,988 70,561 Other intangible assets, net 15,323 4,692 Other assets 33,751 39,475 ------------------------------------- Total assets $ 1,322,810 1,281,943 ===================================== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 45,762 75,188 Accrued salaries and employee benefits 47,821 46,725 Current portion of debt and obligations under capital leases 2,123 1,828 Other current liabilities 155,760 154,162 ------------------------------------- Total current liabilities 251,466 277,903 Obligations under capital leases excluding current portion 3,455 4,508 Long-term debt 91 - Deferred income tax liabilities 126,698 131,106 ------------------------------------- Total liabilities 381,710 413,517 ------------------------------------- Minority interests in consolidated subsidiaries 3,809 3,814 ------------------------------------- Shareholders' Equity: Common stock 19,781 19,759 Additional paid-in capital 45,357 44,732 Accumulated other comprehensive income 10,006 15,373 Treasury stock (13,233) (13,573) Retained earnings 875,380 798,321 ------------------------------------- Total shareholders' equity 937,291 864,612 ------------------------------------ Total liabilities and shareholders' equity $ 1,322,810 1,281,943 =====================================
- more - TSYS Announces Second Quarter 2005 Earnings Page 7 of 9
- ---------------------------------------------------------------------------------------------------------------------------- TSYS Cash Flow (Unaudited) (In thousands) - ---------------------------------------------------------------------------------------------------------------------------- Six Months Ended June 30: ---------------------------------- 2005 2004 ---------------------------------- Cash flows from operating activities: Net income $ 96,766 68,447 Adjustments to reconcile net income to net cash provided by operating activities: Minority interests in consolidated subsidiaries' net income 112 160 Equity in income of joint ventures (4,340) (12,260) Loss on currency translation adjustments, net 827 101 Depreciation and amortization 69,522 52,781 Impairment of developed software 3,137 10,059 Charges for (recoveries of) bad debt expense and billing adjustments 2,688 (1,373) Charges for transaction processing provisions 4,595 4,865 Deferred income tax expense (benefit) 4,622 9,938 Loss on disposal of equipment, net 1,725 378 (Increase) decrease in: Accounts receivable (35,782) 4,950 Prepaid expenses and other assets 1,142 (17,645) Increase (decrease) in: Accounts payable (47,132) 10,759 Accrued salaries and employee benefits (15,124) (13,811) Billings in excess of costs and profits on uncompleted contracts - (16,166) Other current liabilities (41,299) 11,272 ---------------------------------- Net cash provided by operating activities 41,459 112,455 ---------------------------------- Cash flows from investing activities: Purchase of property and equipment, net (20,383) (39,326) Additions to licensed computer software from vendors (12,020) (14,001) Additions to internally developed computer software (9,015) (3,703) Cash acquired in acquisition 38,799 - Cash used in acquisition (95,538) - Dividends received from joint ventures 1,659 15,876 Contract acquisition costs (10,981) (3,283) ---------------------------------- Net cash used in investing activities (107,479) (44,437) ---------------------------------- Cash flows from financing activities: Purchases of common stock - (1,188) Proceeds from borrowings of long-term debt 47,660 - Principal payments on long-term debt borrowings (47,650) - Principal payments on capital lease obligations and software obligations (791) (42,039) Dividends paid on common stock (19,707) (7,873) Proceeds from exercise of stock options 427 1,192 ---------------------------------- Net cash used in financing activities (20,061) (49,908) ---------------------------------- Effect of foreign currency translation on cash and cash equivalents (2,000) 946 ---------------------------------- Net decrease in cash and cash equivalents (88,081) 19,056 Cash and cash equivalents at beginning of year 231,806 122,874 ---------------------------------- Cash and cash equivalents at end of period $ 143,725 141,930 ==================================
- more - TSYS Announces Second Quarter 2005 Earnings Page 8 of 9 Geographic Area Data: The following geographic area data represents revenues for the three months ended June 30 based on where the client is domiciled:
Three Months Ended June 30, ------------------------------------------------- 2005 % 2004 % ------------------------------------------------- (dollars in millions): United States $ 350.1 85.3 % 237.2 81.9 % Europe 31.3 7.6 24.2 8.4 Canada* 22.4 5.5 21.3 7.3 Japan 3.9 1.0 3.4 1.2 Mexico 1.7 0.4 2.9 1.0 Other 0.8 0.2 0.6 0.2 ------------------------------------------------- $ 410.2 100.0 % 289.6 100.0 % =================================================
The following geographic area data represents revenues for the six months ended June 30 based on where the client is domiciled:
Six Months Ended June 30, ------------------------------------------------- 2005 % 2004 % ------------------------------------------------- (dollars in millions): United States $ 640.1 84.2 % 474.3 82.5 % Europe 64.4 8.5 45.5 7.9 Canada* 43.5 5.7 41.0 7.1 Japan 7.6 1.0 6.9 1.2 Mexico 3.4 0.4 5.8 1.0 Other 1.2 0.2 1.4 0.3 ------------------------------------------------- $ 760.2 100.0 % 574.9 100.0 % =================================================
Geographic Area Revenue by Operating Segment: The following tables reconcile segment revenues to revenues by reporting segment for the three months ended June 30:
Three Months Ended June 30, ---------------------------------------------------------------------- Domestic-based International-based Merchant processing support services support services services ---------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 ---------------------------------------------------------------------- (dollars in millions): United States $ 274.3 237.2 - - 75.8 - Europe 0.1 0.1 31.2 24.1 - - Canada* 22.3 21.3 - - 0.1 - Japan - - 3.9 3.4 - - Mexico 1.7 2.9 - - - - Other 0.6 0.6 - - 0.2 - ---------------------------------------------------------------------- $ 299.0 262.1 35.1 27.5 76.1 - ======================================================================
The following tables reconcile segment revenues to revenues by reporting segment for the six months ended June 30:
Six Months Ended June 30, ---------------------------------------------------------------------- Domestic-based International-based Merchant processing support services support services services ---------------------------------------------------------------------- 2005 2004 2005 2004 2005 2004 ---------------------------------------------------------------------- (dollars in millions): United States $ 539.6 474.3 - - 100.5 - Europe 0.3 0.2 64.1 45.3 - - Canada* 43.3 41.0 - - 0.2 - Japan - - 7.6 6.9 - - Mexico 3.4 5.8 - - - - Other 1.0 1.4 - - 0.2 - ---------------------------------------------------------------------- $ 587.6 522.7 71.7 52.2 100.9 - ======================================================================
* These revenues include those generated from the Caribbean accounts owned by a Canadian institution. - more - TSYS Announces Second Quarter 2005 Earnings Page 9 of 9
Supplemental Information: Accounts on File at June 30: ------------------------------------------------------------------------ 2005 % 2004 % % Change ------------------------------------------------------------------------ (in millions): Consumer 230.0 59.2 % 152.0 53.0 % 51.3 Retail 92.2 23.7 86.5 30.1 6.5 Commercial 28.8 7.4 22.9 8.0 26.1 Government services/EBT 17.1 4.4 14.6 5.1 16.9 Stored Value 13.2 3.4 4.5 1.5 196.2 Debit 7.3 1.9 6.5 2.3 11.5 -------------------------------------------------------- 388.6 100.0 % 287.0 100.0 % 35.4 ========================================================
June 30, 2005 June 30, 2004 ----------------- ---------------- QTD Average Accounts on File (in millions) 380.7 285.0 YTD Average Accounts on File (in millions) 348.2 281.6
Accounts on File at June 30: ------------------------------------------------------------------------ 2005 % 2004 % % Change ------------------------------------------------------------------------ (in millions): Domestic 335.5 86.3 % 240.1 83.7 % 39.7 International 53.1 13.7 46.9 16.3 13.2 -------------------------------------------------------- 388.6 100.0 % 287.0 100.0 % 35.4 ========================================================
Note: The accounts on file between domestic and international is based on the geographic domicile of processing clients.
Growth in Accounts on File (in millions): - ----------------------------------------------- June 2004 to June 2003 to June 2005 June 2004 ----------------- ---------------- Beginning balance 287.0 262.5 Change in accounts on file due to: Internal growth of existing clients 38.5 29.6 New clients 69.3 6.6 Purges/Sales (5.0) (7.4) Deconversions (1.2) (4.3) ----------------- ---------------- Ending balance 388.6 287.0 ================= ================
Number of Employees (FTEs): 2005 2004 - ----------------------------------------------- ----------------- ---------------- At June 30, 6,475 5,519 Quarterly average for period ended June 30, 6,432 5,504 YTD average for period ended June 30, 6,111 5,564
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