EX-99.2 3 g11447exv99w2.htm EX-99.2 SUPPLEMENTAL INFORMATION EX-99.2 SUPPLEMENTAL INFORMATION
 

Exhibit 99.2
TSYS Announces Earnings for 2007
Page 7 of 14
TSYS
Financial Highlights
(Unaudited)
(In thousands, except per share data)
                                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
                    Percentage                     Percentage  
    2007     2006     Change     2007     2006     Change  
Revenues
                                               
Electronic payment processing services*
  $ 240,509       303,525       (20.8 )%   $ 955,926       989,062       (3.4 )%
Merchant acquiring services
    63,950       64,957       (1.6 )     254,069       260,275       (2.4 )
Other services*
    56,938       51,269       11.1       218,128       185,096       17.8  
 
                                       
Revenues before reimbursables
    361,397       419,751       (13.9 )     1,428,123       1,434,433       (0.4 )
Reimbursable items
    97,116       84,149       15.4       377,713       352,738       7.1  
 
                                       
Total revenues
    458,513       503,900       (9.0 )     1,805,836       1,787,171       1.0  
 
                                       
 
                                               
Expenses
                                               
Salaries & other personnel expense*
    145,689       141,312       3.1       576,655       522,256       10.4  
Net occupancy & equipment expense*
    67,813       92,802       (26.9 )     273,154       317,916       (14.1 )
Spin related expenses*
    11,834           nm       13,526           nm  
Other operating expenses*
    55,364       57,401       (3.5 )     211,277       237,179       (10.9 )
 
                                       
Expenses before reimbursable items
    280,700       291,515       (3.7 )     1,074,612       1,077,351       (0.3 )
Reimbursable items
    97,116       84,149       15.4       377,713       352,738       7.1  
 
                                       
Total operating expenses
    377,816       375,664       0.6       1,452,325       1,430,089       1.6  
 
                                       
 
                                               
Operating income
    80,697       128,236       (37.1 )     353,511       357,082       (1.0 )
 
                                       
 
                                               
Other income:
                                               
Interest income
    8,295       4,817       72.2       26,925       14,113       90.8  
Interest expense
    (1,641 )     (209 )   nm       (3,133 )     (573 )     (446.8 )
(Loss) gain on foreign currency translation, net
    (703 )     1,037       (167.8 )     41       1,232       (96.7 )
Dividend income
    268           nm      347           nm  
 
                                       
Other income
    6,219       5,645       10.2       24,180       14,772       63.7  
 
                                       
 
                                               
Income before income taxes, minority interest and equity in income of equity investments
    86,916       133,881       (35.1 )     377,691       371,854       1.6  
Income taxes
    42,226       47,689       (11.5 )     143,668       126,182       13.9  
 
                                       
Income before minority interest and equity in income of equity investments
    44,690       86,192       (48.2 )     234,023       245,672       (4.7 )
Minority interest
    (541 )     (304 )     (78.0 )     (1,976 )     (752 )     (162.8 )
Equity in income of equity investments
    1,531       1,169       31.0       5,396       4,243       27.2  
 
                                       
 
                                               
Net income
  $ 45,680       87,057       (47.5 )%   $ 237,443       249,163       (4.7 )%
 
                                       
 
                                               
Basic earnings per share
  $ 0.23       0.44       (47.7 )%   $ 1.21       1.27       (4.7 )%
 
                                       
 
                                               
Diluted earnings per share
  $ 0.23       0.44       (47.7 )%   $ 1.20       1.26       (4.8 )%
 
                                       
 
                                               
Dividend declared per share
  $ 3.10       0.07             $ 3.31       0.27          
 
                                       
 
                                               
Average common shares outstanding
    197,109       196,307               196,759       196,744          
 
                                       
 
                                               
Average common and common equivalent shares outstanding
    197,379       196,663               197,165       197,077          
 
                                       
 
*   Certain amounts have been previously reclassed to conform with the presentation adopted in 2007.
nm = not meaningful
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TSYS Announces Earnings for 2007
Page 8 of 14
TSYS
Segment Breakdown
(Unaudited)
(In thousands)
                                                                                 
    Three Months Ended December 31, 2007   Three Months Ended December 31, 2006
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
         
Revenues before reimbursables
  $ 243,041       68,072       56,916             368,029       316,918       49,430       59,056             425,404  
Intersegment revenues
    (5,983 )     (486 )     (163 )           (6,632 )     (4,660 )     (956 )     (37 )           (5,653 )
         
Revenues before reimbursables from external customers
  $ 237,058       67,586       56,753             361,397       312,258       48,474       59,019             419,751  
         
Total revenues
  $ 324,302       70,585       72,426             467,313       385,941       55,263       70,448             511,652  
Intersegment revenues
    (8,151 )     (486 )     (163 )           (8,800 )     (6,759 )     (956 )     (37 )           (7,752 )
         
Revenues from external customers
  $ 316,151       70,099       72,263             458,513       379,182       54,307       70,411             503,900  
         
Depreciation and amortization
  $ 25,305       6,451       6,498             38,254       41,334       6,388       6,866             54,588  
         
Intersegment expenses
  $ 3,068       (4,203 )     (7,665 )           (8,800 )     3,526       (3,336 )     (7,927 )           (7,737 )
         
Segment operating income
  $ 63,972       11,381       17,203       (11,859 )     80,697       104,515       6,676       17,045             128,236  
         
Income before income taxes, minority interest and equity income of equity investments
    70,933       10,284       17,558       (11,859 )     86,916       109,133       7,240       17,508             133,881  
         
Income tax expense
  $ 23,560       3,696       5,870       9,100       42,226       38,860       3,357       5,472             47,689  
         
Equity in income of equity investments
  $ (120 )     1,651                   1,531             1,169                   1,169  
         
Net Income
  $ 46,816       8,134       11,688       (20,958 )     45,680       70,342       4,679       12,036             87,057  
         
Identifiable assets
    1,320,055       319,279       192,454             1,831,788                                          
Intersegment eliminations
    (305,847 )     (1,526 )     (1,245 )           (308,618 )                                        
                                             
Total assets
    1,014,208       317,753       191,209             1,523,170                                          
                                             
                                                                                 
    Twelve Months Ended December 31, 2007   Twelve Months Ended December 31, 2006
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
         
Revenues before reimbursables
  $ 981,754       243,226       228,609             1,453,589       1,057,257       158,608       237,786               1,453,651  
Intersegment revenues
    (23,479 )     (1,187 )     (800 )           (25,466 )     (18,130 )     (956 )     (132 )             (19,218 )
         
Revenues before reimbursables from external customers
  $ 958,275       242,039       227,809             1,428,123       1,039,127       157,652       237,654               1,434,433  
         
Total revenues
  $ 1,297,434       253,498       288,780             1,839,712       1,349,797       183,425       282,108               1,815,330  
Intersegment revenues
    (31,889 )     (1,187 )     (800 )           (33,876 )     (27,071 )     (956 )     (132 )             (28,159 )
         
Revenues from external customers
  $ 1,265,545       252,311       287,980             1,805,836       1,322,726       182,469       281,976               1,787,171  
         
Depreciation and amortization
  $ 101,611       24,213       26,644             152,468       137,093       20,489       27,312               184,894  
         
Intersegment expenses
  $ 12,965       (16,163 )     (30,673 )           (33,871 )     22,476       (18,784 )     (31,791 )             (28,099 )
         
Segment operating income
  $ 258,769       44,181       64,112       (13,551 )     353,511       283,396       16,236       57,450               357,082  
         
Income before income taxes, minority interest and equity income of equity investments
    282,653       42,944       65,645       (13,551 )     377,691       295,303       16,958       59,593               371,854  
         
Income tax expense
  $ 97,297       14,137       23,134       9,100       143,668       97,497       5,818       22,867               126,182  
         
Equity in income of equity investments
  $ (120 )     5,516                   5,396             4,243                     4,243  
         
Net Income
  $ 187,133       30,449       42,511       (22,650 )     237,443       198,694       13,743       36,726               249,163  
         
 
Note:   Revenues from 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 TSYS Acquiring’s merchant acquiring and related services.
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TSYS Announces Earnings for 2007
Page 9 of 14
TSYS
Segment Breakdown
(Unaudited)
(In thousands)
                                                                                 
    Three Months Ended March 31, 2007   Three Months Ended June 30, 2007
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
                         
Revenues before reimbursables
  $ 240,969       52,963       54,818             348,750       254,340       58,044       58,234             370,618  
Intersegment revenues
    (4,781 )     (223 )     (135 )           (5,139 )     (5,754 )     (372 )     (397 )           (6,523 )
                         
Revenues before reimbursables from external customers
  $ 236,188       52,740       54,683             343,611       248,586       57,672       57,837             364,095  
                         
Total revenues
  $ 314,458       55,400       66,884             436,742       333,872       60,734       74,114             468,720  
Intersegment revenues
    (6,781 )     (223 )     (135 )           (7,139 )     (7,795 )     (372 )     (397 )           (8,564 )
                         
Revenues from external customers
  $ 307,677       55,177       66,749             429,603       326,077       60,362       73,717             460,156  
                         
Depreciation and amortization
  $ 25,966       5,800       6,830             38,596       25,748       5,507       6,755             38,010  
                         
Intersegment expenses
  $ 3,407       (3,239 )     (7,301 )           (7,133 )     2,984       (3,727 )     (7,821 )           (8,564 )
                         
Segment operating income
  $ 62,505       11,211       11,963               85,679       69,684       10,048       16,184               95,916  
                     
Income before income taxes, minority interest and equity income of equity investments
    67,693       11,478       12,485               91,656       75,275       9,053       16,580               100,908  
                     
Income tax expense
  $ 26,249       4,172       4,471               34,892       27,404       2,235       5,964               35,603  
                     
Equity in income of equity investments
  $       860                   860             985                   985  
                         
Net Income
  $ 41,564       7,696       8,014               57,274       48,172       6,900       10,616               65,688  
                     
                                                                                 
    Three Months Ended September 30, 2007   Three Months Ended December 31, 2007
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
                         
Revenues before reimbursables
  $ 243,403       64,148       58,641             366,192       243,041       68,072       56,916             368,029  
Intersegment revenues
    (6,961 )     (106 )     (105 )           (7,172 )     (5,983 )     (486 )     (163 )           (6,632 )
                         
Revenues before reimbursables from external customers
  $ 236,442       64,042       58,536             359,020       237,058       67,586       56,753             361,397  
                         
Total revenues
  $ 324,802       66,779       75,356             466,937       324,302       70,585       72,426             467,313  
Intersegment revenues
    (9,162 )     (106 )     (105 )           (9,373 )     (8,151 )     (486 )     (163 )           (8,800 )
                         
Revenues from external customers
  $ 315,640       66,673       75,251             457,564       316,151       70,099       72,263             458,513  
                         
Depreciation and amortization
  $ 24,592       6,455       6,561             37,608       25,305       6,451       6,498             38,254  
                         
Intersegment expenses
  $ 3,505       (4,995 )     (7,884 )           (9,374 )     3,068       (4,203 )     (7,665 )           (8,800 )
                         
Segment operating income
  $ 62,608       11,542       18,761       (1,692 )     91,219       63,972       11,381       17,203       (11,859 )     80,697  
                         
Income before income taxes, minority interest and equity income of equity investments
    68,751       12,130       19,022       (1,692 )     98,211       70,933       10,284       17,558       (11,859 )     86,916  
                         
Income tax expense
  $ 20,084       4,033       6,830               30,947       23,560       3,696       5,870       9,100       42,226  
                       
Equity in income of equity investments
  $       2,020                   2,020       (120 )     1,651                   1,531  
                         
Net Income
  $ 50,580       7,720       12,193       (1,692 )     68,801       46,816       8,134       11,688       (20,958 )     45,680  
                         
 
Note:   With the spin-off by Synovus, TSYS has created a separate segment to track spin-related costs. Certain items have also been reclassified between segments.

The amounts for previous periods have been restated to reflect the change.
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TSYS Announces Earnings for 2007
Page 10 of 14
TSYS
Segment Breakdown
(Unaudited)
(In thousands)
                                                                                 
    Three Months Ended March 31, 2006   Three Months Ended June 30, 2006
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
                         
Revenues before reimbursables
  $ 244,443       30,713       58,862             334,018       253,313       34,145       60,144             347,602  
Intersegment revenues
    (4,434 )           (32 )           (4,466 )     (4,778 )           (33 )           (4,811 )
                         
Revenues before reimbursables from external customers
  $ 240,009       30,713       58,830             329,552       248,535       34,145       60,111             342,791  
                         
Total revenues
  $ 312,830       36,246       70,332             419,408       325,106       40,326       70,736             436,168  
Intersegment revenues
    (7,086 )           (32 )           (7,118 )     (6,970 )           (33 )           (7,003 )
                         
Revenues from external customers
  $ 305,744       36,246       70,300             412,290       318,136       40,326       70,703             429,165  
                         
Depreciation and amortization
  $ 31,910       3,978       7,273             43,161       31,692       4,795       6,499             42,986  
                         
Intersegment expenses
  $ 8,690       (7,575 )     (8,219 )           (7,104 )     6,591       (5,531 )     (8,046 )           (6,986 )
                         
Segment operating income
  $ 61,759       86       10,012             71,857       67,599       2,385       14,747             84,731  
                         
Income before income taxes, minority interest and equity income of equity investments
    63,479       728       10,390             74,597       70,001       2,389       15,318             87,708  
                         
Income tax expense
  $ 20,471       567       3,927             24,965       23,443       1,926       5,779             31,148  
                         
Equity in income of equity investments
  $       852                   852             1,019                   1,019  
                         
Net Income
  $ 42,819       1,111       6,463             50,393       46,712       1,155       9,539             57,406  
                         
                                                                                 
    Three Months Ended September 30, 2006   Three Months Ended December 31, 2006
                    Merchant                                   Merchant        
    Domestic-based   International-based   acquiring   Spin-Related           Domestic-based   International-based   acquiring   Spin-Related    
    support services   support services   services   Costs   Consolidated   support services   support services   services   Costs   Consolidated
                         
Revenues before reimbursables
  $ 242,584       44,320       59,723             346,627       316,918       49,430       59,056             425,404  
Intersegment revenues
    (4,257 )           (31 )           (4,288 )     (4,660 )     (956 )     (37 )           (5,653 )
                         
Revenues before reimbursables from external customers
  $ 238,327       44,320       59,692             342,339       312,258       48,474       59,019             419,751  
                         
Total revenues
  $ 325,919       51,591       70,592             448,102       385,941       55,263       70,448             511,652  
Intersegment revenues
    (6,255 )           (31 )           (6,286 )     (6,759 )     (956 )     (37 )           (7,752 )
                         
Revenues from external customers
  $ 319,664       51,591       70,561             441,816       379,182       54,307       70,411             503,900  
                         
Depreciation and amortization
  $ 32,157       5,328       6,674             44,159       41,334       6,388       6,866             54,588  
                         
Intersegment expenses
  $ 3,670       (2,343 )     (7,599 )           (6,272 )     3,526       (3,336 )     (7,927 )           (7,737 )
                         
Segment operating income
  $ 49,523       7,089       15,645             72,257       104,515       6,676       17,046             128,237  
                         
Income before income taxes, minority interest and equity income of equity investments
    52,689       6,602       16,377             75,668       109,133       7,240       17,508             133,881  
                         
Income tax expense
  $ 14,722       (31 )     7,689             22,380       38,860       3,357       5,472             47,689  
                         
Equity in income of equity investments
  $       1,203                   1,203             1,169                   1,169  
                         
Net Income
  $ 38,822       6,797       8,688             54,307       70,342       4,679       12,036             87,057  
                         
 
Note:   With the spin-off by Synovus, TSYS has created a separate segment to track spin-related costs. Certain items have also been reclassified between segments.

The amounts for previous periods have been restated to reflect the change.
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TSYS Announces Earnings for 2007
Page 11 of 14
TSYS
Balance Sheet
(In thousands)
                 
    Dec 31, 2007   Dec 31, 2006
    (unaudited)   (audited)
     
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 210,518       389,123  
Restricted cash
    29,688       31,568  
Accounts receivable, net
    256,970       246,637  
Deferred income tax assets
    45,245       21,556  
Prepaid expenses and other current assets
    89,050       55,832  
     
Total current assets
    631,471       744,716  
Property and equipment, net
    283,138       271,321  
Computer software, net
    205,830       216,450  
Contract acquisition costs, net
    151,599       167,449  
Goodwill, net
    142,545       133,337  
Equity investments, net
    80,162       62,064  
Other intangible assets, net
    13,462       21,314  
Other assets
    14,963       17,590  
     
Total assets
  $ 1,523,170       1,634,241  
     
 
               
Liabilities and Shareholders’ Equity
               
Current liabilities:
               
Accrued salaries and employee benefits
  $ 85,142       80,697  
Accounts payable
    41,817       31,589  
Current portion of notes payable
    8,648        
Current portion of obligations under capital leases
    3,080       3,156  
Other current liabilities
    149,797       180,345  
     
Total current liabilities
    288,484       295,787  
Notes payable, excluding current portion
    252,659        
Deferred income tax liabilities
    97,631       75,019  
Obligations under capital leases, excluding current portion
    3,934       3,625  
Other long-term liabilities
    28,152       36,221  
     
Total liabilities
    670,860       410,652  
     
Minority interests in consolidated subsidiaries
    8,580       6,229  
     
Shareholders’ Equity:
               
Common stock
    19,966       19,868  
Additional paid-in capital
    104,019       66,677  
Accumulated other comprehensive income, net
    28,322       20,641  
Treasury stock
    (34,138 )     (35,233 )
Retained earnings
    725,561       1,145,407  
     
Total shareholders’ equity
    843,730       1,217,360  
     
Total liabilities and shareholders’ equity
  $ 1,523,170       1,634,241  
     
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TSYS Announces Earnings for 2007
Page 12 of 14
TSYS
Cash Flow
(Unaudited)
(In thousands)
                 
    Twelve Months Ended December 31,
    2007   2006
     
Cash flows from operating activities:
               
Net income
  $ 237,443       249,163  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Minority interests in consolidated subsidiaries’ net income
    1,976       752  
Equity in income of equity investments
    (5,396 )     (4,243 )
Dividends received from equity investments
    2,994       2,371  
Gain on currency translation adjustments, net
    (41 )     (1,232 )
Depreciation and amortization
    152,468       184,894  
Share-based compensation
    18,620       9,157  
Asset impairments
    1,158        
Provisions for bad debt expense and billing adjustments
    (568 )     1,614  
Charges for transaction processing provisions
    35       10,981  
Deferred income tax benefit
    7,399       (23,288 )
Loss on disposal of equipment, net
    500       147  
(Increase) decrease in:
               
Accounts receivable
    (8,997 )     (47,056 )
Prepaid expenses, other current assets and other long-term assets
    (32,437 )     12,342  
Increase (decrease) in:
               
Accounts payable
    10,080       673  
Accrued salaries and employee benefits
    4,445       (5,416 )
Excess tax benefit from share-based payment arrangements
    (8,526 )     (2,984 )
Other current liabilities and other long-term liabilities
    (47,077 )     (2,116 )
     
Net cash provided by operating activities
    334,076       385,759  
     
         
Cash flows from investing activities:
               
Purchases of property and equipment, net
    (55,274 )     (26,506 )
Additions to licensed computer software from vendors
    (33,382 )     (11,858 )
Additions to internally developed computer software
    (17,785 )     (13,972 )
Cash acquired in acquisitions
          8,150  
Cash used in acquisitions and equity investments
    (12,552 )     (77,541 )
Additions to contract acquisition costs
    (22,740 )     (42,452 )
     
Net cash used in investing activities
    (141,733 )     (164,179 )
     
         
Cash flows from financing activities:
               
Proceeds from borrowings of long-term debt
    263,946        
Principal payments on long-term debt borrowings and capital lease obligations
    (4,816 )     (2,691 )
Proceeds from exercise of stock options
    11,672       4,253  
Excess tax benefit from share-based payment arrangements
    8,526       2,984  
Repurchase of common stock
          (22,874 )
Dividends paid on common stock
    (655,246 )     (51,269 )
     
Net cash used in financing activities
    (375,918 )     (69,597 )
     
Effect of exchange rate changes on cash and cash equivalents
    4,970       (429 )
     
Net (decrease) increase in cash and cash equivalents
    (178,605 )     151,554  
Cash and cash equivalents at beginning of year
    389,123       237,569  
     
Cash and cash equivalents at end of period
  $ 210,518       389,123  
     
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TSYS Announces Earnings for 2007
Page 13 of 14
Geographic Area Data:
The following geographic area data represents revenues for the three months ended December 31 based on where the client is domiciled:
                                         
    Three Months Ended December 31,
(dollars in millions):   2007   %   2006   %   % Chg
     
United States
  $ 347.8       75.8 %   $ 412.4       81.8 %     (15.7 )%
Europe
    60.7       13.2       46.2       9.2       31.4  
Canada
    33.6       7.3       30.5       6.1       10.1  
Japan
    6.8       1.5       5.2       1.0       31.8  
Mexico
    3.9       0.8       3.7       0.7       3.7  
Other
    5.7       1.4       5.9       1.2       (2.1 )
             
 
  $ 458.5       100.0 %   $ 503.9       100.0 %     (9.0 )%
             
The following geographic area data represents revenues for the twelve months ended December 31 based on where the client is domiciled:
                                         
    Twelve Months Ended December 31,
(dollars in millions):   2007   %   2006   %   % Chg
     
United States
  $ 1,400.3       77.5 %   $ 1,482.1       82.9 %     (5.5 )%
Europe
    211.8       11.7       158.8       8.9       33.4  
Canada
    126.7       7.0       102.0       5.7       24.2  
Japan
    24.5       1.4       18.6       1.0       31.9  
Mexico
    14.0       0.8       12.3       0.7       14.3  
Other
    28.5       1.6       13.4       0.8       113.3  
             
 
  $ 1,805.8       100.0 %   $ 1,787.2       100.0 %     1.0 %
             
Geographic Area Revenue by Operating Segment:
The following table reconciles segment revenues to revenues by reporting segment for the three months ended December 31:
                                                 
    Three Months Ended December 31,
    Domestic-based   International-based   Merchant acquiring
    support services   support services   services
(dollars in millions):   2007   2006   2007   2006   2007   2006
     
United States
  $ 275.9       342.2       (0.1 )           71.9       70.1  
Europe
    0.4       0.4       60.3       45.8          
Canada
    33.4       30.4                   0.2       0.1  
Japan
                6.8       5.2          
Mexico
    3.9       3.7                      
Other
    2.5       2.5       3.1       3.3       0.2       0.2  
     
 
  $ 316.1       379.2       70.1       54.3       72.3       70.4  
     
The following table reconciles segment revenues to revenues by reporting segment for the twelve months ended December 31:
                                                 
    Twelve Months Ended December 31,
    Domestic-based   International-based   Merchant acquiring
    support services   support services   services
(dollars in millions):   2007   2006   2007   2006   2007   2006
     
United States
  $ 1,113.1       1,201.3       0.5             286.6       280.8  
Europe
    1.7       1.5       210.1       157.3            
Canada
    126.2       101.5                   0.6       0.5  
Japan
                24.5       18.6            
Mexico
    14.0       12.3                        
Other
    10.5       6.1       17.2       6.6       0.8       0.7  
     
 
  $ 1,265.5       1,322.7       252.3       182.5       288.0       282.0  
     

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TSYS Announces Earnings for 2007
Page 14 of 14
Supplemental Information:
                                         
    Accounts on File at December 31,
(in millions)   2007   %   2006   %   % Change
     
Consumer
    201.5       53.7 %     262.7       63.0 %     (23.3 )%
Retail
    56.8       15.1       55.3       13.3       2.7  
Commercial
    39.0       10.4       32.1       7.7       21.6  
Government services/EBT
    23.7       6.3       21.2       5.1       11.8  
Stored Value
    49.2       13.1       40.7       9.8       20.8  
Debit
    5.3       1.4       4.4       1.1       19.3  
             
 
    375.5       100.0 %     416.4       100.0 %     (9.8 )%
             
                         
(in millions)   December 31, 2007   December 31, 2006   % Change
QTD Average Accounts on File
    368.6       421.7       (12.6 )%
YTD Average Accounts on File
    401.2       415.6       (3.5 )
                                         
    Accounts on File at December 31,
(in millions)   2007   %   2006   %   % Change
     
Domestic
    301.3       80.2 %     348.5       83.7 %     (13.6 )%
International
    74.2       19.8       67.9       16.3       9.3  
             
 
    375.5       100.0 %     416.4       100.0 %     (9.8 )%
             
Note: The accounts on file between domestic and international is based on the geographic domicile of processing clients.
                 
    December 2006 to   December 2005 to
Growth in Accounts on File (in millions):   December 2007   December 2006
Beginning balance
    416.4       437.9  
Change in accounts on file due to:
               
Internal growth of existing clients
    40.3       36.6  
New clients
    24.2       91.2  
Purges/Sales
    (11.8 )     (16.4 )
Deconversions
    (93.6 )     (132.9 )
 
               
Ending balance
    375.5       416.4  
 
               
                 
Number of Employees (FTEs):   2007   2006
At December 31,
    6,921       6,749  
Quarterly average for period ended December 31,
    6,910       6,743  
YTD average for period ended December 31,
    6,799       6,642  
RECONCILIATION OF GAAP TO NON-GAAP
                         
    Three Months Ended December 31,  
    2007     2006     % Change  
EARNINGS PER SHARE (EPS) — Basic
                       
Basic earnings per share
  $ 0.23       0.44       (47.7 )%
Add: spin-related costs, net of tax per share
    0.11                
 
                   
Basic EPS, excluding spin related expenses
  $ 0.34     $ 0.44       (23.8 )%
 
                   
 
                       
Common Shares outstanding
    197.109       196.307          
 
                   
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