UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 1
Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended December 31, 2016
Commission file number 1-10254
TOTAL SYSTEM SERVICES, INC.
(Exact name of registrant as specified in its charter)
Georgia |
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58-1493818 |
(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
incorporation or organization) |
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One TSYS Way |
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Columbus, Georgia |
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31901 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (706) 644-6081
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Name of each exchange on which registered |
Common Stock, $.10 Par Value |
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New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YES [X] |
NO [ ] |
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
YES [ ] |
NO [X] |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.
YES [X] |
NO [ ] |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
YES [X] |
NO [ ] |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer [X] |
Accelerated Filer [ ] |
Non-accelerated filer [ ] |
Smaller reporting company [ ] |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES [ ] |
NO [X] |
As of June 30, 2016, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $9,575,381,000 based on the closing sale price as reported on the New York Stock Exchange.
As of February 17, 2017, there were 183,354,641 shares of the registrant’s common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Incorporated Documents |
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Form 10-K Reference Locations |
Portions of the Annual Report to Shareholders for the year ended December 31, 2016 (“Annual Report”) |
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Parts I, II, III and IV |
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Portions of the 2017 Proxy Statement for the Annual Meeting of Shareholders to be held April 27, 2017 (“Proxy Statement”) |
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Part III |
EXPLANATORY NOTE
Total System Services, Inc. is filing this Amendment No. 1 on Form 10-K/A for the sole purpose of amending Item 5 of its Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on February 24, 2017 (the “Original Filing”), to amend Item 5 to furnish the performance graph as set forth below. The Company had in its possession a copy of the performance graph at the time of the Original Filing; however, the performance graph was inadvertently omitted from the Original Filing due to an error in the filing process. This Amendment No. 1 does not otherwise update information in the Original Filing to reflect facts or events occurring subsequent to the original filing date.
1
PART II
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
TSYS’ common stock trades on the New York Stock Exchange (NYSE) under the symbol “TSS.” Price and volume information appears under the abbreviation “TotlSysSvc” in NYSE daily stock quotation listings. As of February 17, 2017, there were 18,854 holders of record of TSYS common stock, some of whom are holders in nominee name for the benefit of different shareholders.
The 2016 fourth quarter dividend of $0.10 per share was declared on December 2, 2016, and was paid January 3, 2017, to shareholders of record on December 15, 2016. The 2015 fourth quarter dividend of $0.10 per share was declared on December 2, 2015, and was paid January 4, 2016, to shareholders of record on December 17, 2015. Total dividends declared in 2016 and in 2015 amounted to $73.5 million and $73.7 million, respectively. It is the present intention of the Board of Directors of TSYS to continue to pay cash dividends on its common stock.
Presented here is a summary of the unaudited quarterly financial data for the years ended December 31, 2016 and 2015.
(in thousands, except per share data) |
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First |
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Second |
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Third |
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Fourth |
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2016 Revenues |
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$ |
739,378 |
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1,151,587 |
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1,146,889 |
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1,132,224 |
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Cost of services |
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484,507 |
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841,923 |
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840,301 |
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826,331 |
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Operating income |
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151,687 |
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135,821 |
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155,327 |
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130,547 |
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Net income attributable to TSYS common shareholders |
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90,628 |
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69,707 |
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85,352 |
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73,950 |
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Basic earnings per share (EPS) attributable to TSYS common shareholders |
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0.49 |
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0.38 |
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0.46 |
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0.40 |
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Diluted EPS attributable to TSYS common shareholders |
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0.49 |
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0.38 |
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0.46 |
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0.40 |
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Cash dividends declared |
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0.10 |
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0.10 |
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0.10 |
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0.10 |
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Stock prices: |
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High |
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48.55 |
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54.81 |
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56.43 |
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51.61 |
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Low |
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37.96 |
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47.90 |
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46.58 |
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46.77 |
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Close |
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47.58 |
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48.50 |
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47.15 |
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49.03 |
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2015 Revenues |
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$ |
662,156 |
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692,652 |
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707,890 |
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716,843 |
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Cost of services |
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449,715 |
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459,961 |
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456,465 |
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489,039 |
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Operating income |
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122,496 |
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130,602 |
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163,104 |
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117,905 |
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Net income attributable to TSYS common shareholders |
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77,755 |
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82,839 |
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120,622 |
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82,828 |
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Basic EPS attributable to TSYS common shareholders |
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0.42 |
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0.45 |
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0.66 |
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0.45 |
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Diluted EPS attributable to TSYS common shareholders |
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0.42 |
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0.45 |
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0.65 |
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0.45 |
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Cash dividends declared |
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0.10 |
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0.10 |
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0.10 |
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0.10 |
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Stock prices: |
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High |
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39.02 |
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42.72 |
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48.64 |
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56.37 |
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Low |
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33.27 |
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37.89 |
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41.52 |
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45.82 |
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Close |
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38.15 |
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41.77 |
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45.43 |
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49.80 |
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2
STOCK PERFORMANCE GRAPH
The following graph compares the yearly percentage change in cumulative shareholder return on TSYS stock with the cumulative total return of the Standard & Poor’s 500 Index and the Standard & Poor’s Systems Software Index for the last five fiscal years (assuming a $100 investment on December 31, 2011 and reinvestment of all dividends).
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2011 |
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2012 |
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2013 |
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2014 |
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2015 |
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2016 |
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TSYS |
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$ |
100.00 |
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$ |
111.41 |
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$ |
175.72 |
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$ |
181.62 |
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$ |
268.71 |
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$ |
266.74 |
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S&P 500 |
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$ |
100.00 |
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$ |
116.00 |
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$ |
153.58 |
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$ |
174.60 |
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$ |
177.01 |
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$ |
198.18 |
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S&P SS |
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$ |
100.00 |
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$ |
115.23 |
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$ |
153.13 |
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$ |
188.36 |
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$ |
208.08 |
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$ |
235.62 |
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3
PART IV
Item 15. |
Exhibits, Financial Statement Schedules |
(a) |
3.Exhibits |
Exhibit
NumberDescription
31.1* |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2* |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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* Filed Herewith |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, Total System Services, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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TOTAL SYSTEM SERVICES, INC. |
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February 28, 2017 |
By: |
/s/ M. Troy Woods |
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M. Troy Woods, |
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Chairman and Chief Executive Officer |
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(Principal Executive Officer) |
4
EXHIBIT 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
I, M. Troy Woods, certify that:
1.I have reviewed this Amendment No. 1 to the annual report on Form 10-K of Total System Services, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: February 28, 2017/s/ M. Troy Woods
M. Troy Woods
Chairman and Chief Executive Officer
EXHIBIT 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Paul M. Todd, certify that:
1.I have reviewed this Amendment No. 1 to the annual report on Form 10-K of Total System Services, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: February 28, 2017/s/ Paul M. Todd
Paul M. Todd
Senior Executive Vice President and
Chief Financial Officer
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