EX-99.2 3 d810116dex992.htm EX-99.2 EX-99.2
2014 Third Quarter and YTD Results
October 28, 2014
©2014
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.
Exhibit 99.2


Forward-Looking Statements
2
This presentation and comments made by management contain forward-
looking
statements
including,
among
others,
statements
regarding
the
expected
future
operating
results
of
TSYS.
These
statements
are
based
on
management’s current expectations and assumptions and are subject to
risks, uncertainties and changes in circumstances.  Forward-looking
statements include all statements that are not historical facts and can be
identified by the use of forward-looking terminology such as the words
“believe,”
“expect,”
“anticipate,”
“intend,”
“plan,”
“potential”, “estimate”
or
similar expressions.  Actual results may differ materially from those set forth
in the forward-looking statements due to a variety of factors.  More
information about these risks, uncertainties and factors may be found in
TSYS’
filings with the Securities and Exchange Commission, including its
2013 Annual Report on Form 10-K.  TSYS does not assume any obligation
to update any forward-looking statements as a result of new information,
future developments or otherwise.
©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Use of Non-GAAP Financial Measures
3
This slide presentation contains certain non-GAAP financial measures
determined by methods other than in accordance with generally accepted
accounting principles. Such non-GAAP financial measures include the
following: revenues before reimbursable items; operating margin excluding
reimbursable items; revenues measured on a constant currency basis; free
cash flow; EBITDA, adjusted EBITDA, adjusted earnings per share,
adjusted
segment operating income and adjusted segment operating margin. The most
comparable GAAP measures to these measures are revenues; operating
margin; revenues; cash flows from operating activities; net income; net income;
earnings per share, operating income and operating margin, respectively.
Management uses these non-GAAP financial measures to assess the
performance of TSYS’
core business. TSYS believes that these non-GAAP
financial measures provide meaningful additional information about TSYS to
assist investors in evaluating TSYS’
operating results. These non-GAAP
financial measures should not be considered as a substitute for operating
results determined in accordance with GAAP and may not be comparable to
other similarly titled measures of other companies. The computations of the
non-GAAP financial measures used in this slide presentation are set forth in the
Appendix to this slide presentation.


Troy Woods
President & Chief Executive Officer
©2014
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.


Paul Todd
Chief Financial Officer
©2014
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
3Q 2014 North America Segment Highlights
6
($ in millions)
(*) Revenues Before Reimbursable Items
($ in millions)
1.9%
0.8%
4.4%
4.5%
6.8%
Adjusted Segment Operating Income
Operating Margin*
(1)
Includes Credit, Debit,
Retail, Prepaid & Loyalty
(2)
Includes Healthcare
9.1%
Largest Quarter of Segment Revenue in
History, Excluding Termination Fees
Double Digit YOY Revenue Growth
First Time Since 2006
Revenue Growth Benefiting from Conversions
8.7%
10.9%
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4%
Consumer (1)
Commercial (2)
Other
73%
23%
$81.2
$68.7
$81.3
$84.4
$87.1
$74.6
$84.6
$92.7
38.0%
33.4%
37.9%
38.9%
39.0%
33.2%
36.3%
38.5%
$213.6
$205.6
$214.5
$217.3
$223.3
$224.4
$233.2
$241.0
Segment
Revenue*
YOY Growth %
Segment Revenue by Line of Business*


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
3Q 2014 North America Segment Highlights
7
(*)
Growth
Excluding
Prepaid,
Government
Services
and
Single
Use
Accounts
*
(in millions)
(in millions)
5.5%
5.2%
6.3%
16.2%
16.5%
20.9%
16.9%
11.2%
11.6%
13.4%
12.7%
7.8%
11.5%
17.6%
13.4%
15.6%
17.2%
17.1%
Five Straight Quarters of Double Digit Growth in Traditional Accounts on File*
Over 10M Accounts Converted in 3Q14
Largest Quarter of Transaction Volume in History at 2.8B
Same Client Transactions up 12.6%
18.5%
19.1%
20.7%
17.4%
18.1%
18.3%
424.8
422.8
430.7
461.4
481.9
495.5
510.3
541.4
Accounts on File
YOY Growth %
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
2,194.7
2,013.4
2,235.0
2,395.8
2,488.2
2,327.6
2,696.7
2,833.6
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Transaction Volume
YOY Growth %


Adjusted Segment Operating Income
Operating Margin*
3Q 2014 International Segment Highlights
8
($ in millions)
Reported
Constant
Currency
(*) Revenues Before Reimbursable Items
($ in millions)
1.1%
(2.6%)
(4.0%)`
0.7%
0.1%
(0.9%)
3.1%
9.0%
8.6%
86%
0.5%
(4.6%)
Revenue $87.4M* –
Up 12.2%
Up 4.4% on Constant Currency
$6.1M of Currency Benefit
Positive Revenue Growth in All Regions
Margin Improvement Continues
(1.0%)
10.6%
1.8%
12.2%
4.4%
©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
8.4%
9.0%
10.0%
12.2%
19.9%
5.9%
13.9%
18.3%
Segment Revenue by Region
QTD
Europe
MEA
Rest Of World
7%
7%
$7.0
$6.9
$7.7
$9.5
$18.0
$4.6
$11.7
$16.0
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
$83.1
$76.4
$76.6
$77.9
$90.6
$76.8
$84.7
$87.4
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Segment
Revenue*
YOY Growth %


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
3Q 2014 International Segment Highlights
9
(in millions)
(in millions)
19.5%
14.2%
23.3%
26.7%
17.3%
19.3%
AOF Grew 4.9M YOY Predominately Organic
Transactions Grew 48.9M, or 9.3% YOY
Same Client Transactions Grew 9.7%
13.4%
4.1%
3.7%
9.9%
12.1%
8.5%
8.9%
7.5%
8.1%
9.3%
Accounts on File
YOY Growth %
Transaction Volume
YOY Growth %
54.5
55.7
58.0
59.2
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
59.1
60.7
62.3
64.1
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
473.6
434.0
492.4
525.5
555.6
517.9
558.1
574.3


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Revenues Before Reimbursables Increased 1.2%
Direct Up 4% with Continued Focus on Growth Initiatives
Indirect Down (2)% But Exceeding Expectations
Second Quarter of Improved Operating Margin
3Q 2014 Merchant Segment Highlights
10
(*) Revenues Before Reimbursable Items
($ in millions)
5.5%
11.1%
15.6%
5.4%
4.3%
($ in millions)
(4.3%)
(4.1%)
1.2%
Segment Revenue by Mix*
QTD
Direct
Indirect
43%
57%
Segment
Revenue*
YOY Growth
%
$105.9
$109.3
$113.0
$113.6
$110.4
$104.6
$108.3
$115.0
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
$37.7
$37.6
$41.3
$40.8
$36.0
$30.2
$32.9
$40.4
35.6%
34.4%
36.6%
35.9%
32.6%
28.8%
30.4%
35.1%
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Adjusted Segment Operating Income
Operating Margin*


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
11
3Q 2014 Merchant Segment Highlights
(*) Excludes Managed Accounts
Segment Revenue by LOB
YOY Growth %
($ in billions)
32.2%
35.3%
40.6%
22.0%
11.1%
(12%)
45%
55%
26%
22%
(11%)
(12%)
(12%)
($ in millions)
4%
(14%)
9.3%
POS Transactions Increased 4.3%, Excluding Deconverted Accounts
SBS Sales Volume Up 10.0%
Value Added Products Key Component Driving Revenue Growth
8.2%
1%
(10%)
4%
(2%)
10.0%
$4.7
$4.8
$5.3
$5.3
$5.2
$5.3
$5.8
$5.9
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
SBS
Sales Volume
YOY Growth %
$55
$51
$52
$51
$51
$48
$45
$46
$50
$57
$62
$63
$62
$59
$62
$65
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Indirect
Direct


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Adjusted Segment Operating Income*
Segment Revenue
YOY Growth %
3Q 2014 NetSpend Segment Highlights
12
($ in millions)
10%
44%
33%
13%
Revenue $114.0M –
Up 10.0%
Added 4k Distributing Locations and
Employers Bringing the Total to Over 80k
Launched Western Union Both in Retail and
Direct Channels
Rolled Out Paychex to Entire Salesforce
($ in millions)
(*NOTE: Periods prior to the acquisition by TSYS have been restated )
$89.7
$117.3
$104.9
$103.7
$104.1
$132.6
$116.8
$114.0
16.9%
28.3%
22.9%
22.2%
16.1%
13.1%
11.4%
10.0%
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Segment Revenue by Channel
QTD
Partner
Retail
Direct
Paycard
$23.9
$28.0
$29.3
$34.6
$31.7
$28.7
$30.7
$36.1
26.7%
23.9%
27.9%
33.4%
30.5%
21.7%
26.3%
31.7%
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Operating Margin*


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
3Q 2014 NetSpend Segment Highlights
13
Gross Dollar Volume
YOY Growth %
Direct Deposit Active Cards
YOY Growth %
Direct Deposit Active Cards up 20.6%
Gross Dollar Volume (GDV) up 16.6%
Double Digit Growth in Direct Deposit Active Cards Across All Channels
(in thousands)
($ in millions)
25.1%
66.7%
42.3%
23.8%
22.1%
18.2%
42.8%
30.1%
22.4%
21.2%
17.6%
20.6%
1,081.6
1,707.9
1,361.4
1,261.1
1,321.1
2,070.3
1,600.7
1,520.7
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
$3,265.4
$5,378.7
$3,947.9
$3,780.9
$3,967.6
$6,567.2
$4,628.0
$4,409.3
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
21.5%
22.1%
17.2%
16.6%


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Consolidated Selected Financial Highlights
14
$616,891
$570,551
8.1%
Total Revenues
$1,811,774
$1,481,202
22.3%
552,860
509,488
8.5
Revenues Before Reimbursable Items
1,623,678
1,298,449
25.0
198,040
179,446
10.4
Adjusted EBITDA*
518,529
442,996
17.1
$0.56
$0.49
12.5
Adjusted EPS* from Continuing
Operations
$1.38
$1.25
10.4
(in thousands, except per share data)
3
rd
Qtr
2014
3
rd
Qtr
2013
Percent
Change
YTD
2014
YTD
2013
Percent
Change
(*) Adjusted EBITDA and Adjusted EPS definitions are contained in Appendix


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Revenues before
Reimbursable
Items
Adjusted
Operating Margin
Adjusted
Segment
Operating Income
North America
$92,736
$240,957
38.49%
International
15,976
87,385
18.28%
Merchant
40,409
115,012
35.13%
NetSpend
36,123
114,048
31.67%
Eliminations
--
(4,542)
Corporate administration excluding stock comp
(25,428)
--
Adjusted operating margin
$159,816
$552,860
28.91%
Amortization of acquisition intangibles
(24,210)
NetSpend M&A expenses
(779)
Stock-based compensation
(5,420)
Operating income (US GAAP)
$129,407
Segment Operating Margin and Consolidated
Adjusted Operating Margin
(in thousands)
15
Three Months Ended September 30, 2014


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Revenues before
Reimbursable
Items
Adjusted
Operating Margin
Adjusted
Segment
Operating Income
North America
$251,892
$698,543
36.06%
International
32,274
248,890
12.97%
Merchant
103,473
327,972
31.55%
NetSpend
95,543
363,521
26.28%
Eliminations
--
(15,248)
Corporate administration excluding stock comp
(75,278)
--
Adjusted operating margin
$407,904
$1,623,678
25.12%
Amortization of acquisition intangibles
(72,805)
NetSpend M&A expenses
(3,213)
Stock-based compensation
(23,019)
Operating income (US GAAP)
$308,867
Segment Operating Margin and Consolidated
Adjusted Operating Margin
(in thousands)
16
Nine Months Ended September 30, 2014


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Rollforward of Quarterly Cash Balance
$200
$500
$100
$0
$300
Operating
Activities
$151
Cap Ex
($62)
Debt Pmts
($14)
Dividends
($19)
Other
($2)
Ending
Balance
$266
(in millions)
6/30/2014
9/30/2014
17
$400
Acquisition
($39)
Beginning
Balance
$251


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Cash Flow Strength:
2014 TTM Consolidated Financial Highlights
18
TTM = Trailing Twelve Months
(in millions)
$700
$535
$292
$318
$266
$0
$75
$150
$225
$300
$375
$450
$525
$600
$675
$750
Adjusted EBITDA
Cash flow from operations
Free cash flow
Net income
Ending cash


Q&A
©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.


Appendix
©2014
Total
System
Services,
Inc.®
Proprietary.
All
rights
reserved
worldwide.


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Items –
Adjusted EBITDA
and Adjusted EPS
Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), taxes, depreciation,
amortization and stock-based compensation expenses and NetSpend merger & acquisition expenses.
Adjusted EPS is adjusted earnings divided by weighted average shares outstanding used for basic EPS calculations. Adjusted earnings is
net income excluding the after-tax impact of stock-based compensation expenses, amortization of acquisition intangibles, and NetSpend
merger & acquisition expenses.
Adjusted segment operating income is operating income at the segment level adjusted for amortization of acquisition intangibles.
Adjusted segment operating margin is adjusted segment operating income divided by segment revenues before reimbursable items.
The Company believes that these non-GAAP financial measures it presents are useful to investors in evaluating the Company’s operating
performance for the following reasons:
adjusted
EBITDA
and
adjusted
EPS
are
widely
used
by
investors
to
measure
a
company’s
operating
performance
without
regard
to
items, such as interest expense, income tax expense, depreciation and amortization, merger and acquisition expenses and employee
stock-based compensation expense that can vary substantially from company to company depending upon their respective financing
structures and accounting policies, the book values of their assets, their capital structures and the methods by which their assets were
acquired; and
securities analysts use adjusted EBITDA and adjusted EPS as supplemental measures to evaluate the overall operating performance
of companies.
By comparing the Company’s adjusted EBITDA and adjusted EPS in different historical periods, investors can evaluate the Company’s
operating results without the additional variations caused by employee stock-based compensation expense, which may not be comparable
from
period
to
period
due
to
changes
in
the
fair
market
value
of
the
Company’s
common
stock
(which
is
influenced
by external factors like
the volatility of public markets and the financial performance of the Company’s peers) and is not a key measure of the Company’s
operations.
The Company’s management uses the non-GAAP financial measures:
as measures of operating performance, because they exclude the impact of items not directly resulting from the Company’s core
operations;
for planning purposes, including the preparation of the Company’s annual operating budget;
to allocate resources to enhance the financial performance of the Company’s business;
to evaluate the effectiveness of the Company’s business strategies; and
in communications with the Company’s board of directors concerning the Company’s financial performance.
21


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Consumer Credit
263.9
224.1
17.8
263.9
246.5
7.1
Retail
28.4
26.8
5.8
28.4
27.9
1.5
Total Consumer
292.3
250.9
16.5
292.3
274.4
6.5
Commercial
41.5
38.8
6.9
41.5
40.4
2.8
Other
21.2
16.9
25.3
21.2
20.4
4.0
Subtotal
355.0
306.6
15.8
355.0
335.2
5.9
Prepaid*/
Stored Value
125.1
110.7
13.0
125.1
117.7
6.4
Government
Services
66.7
61.6
8.1
66.7
65.6
1.5
Commercial Card
Single Use
58.7
41.7
41.0
58.7
54.2
8.4
Total AOF
605.5
520.6
16.3
605.5
572.7
5.7
Appendix: Accounts on File Portfolio Summary
(in millions)
22
(* -
Prepaid does not include NetSpend accounts)
Sep
2014
Sep
2013
%
Change
Sep
2014
Jun
2014
%
Change


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Reconciliation –
Revenues Before Reimbursable Items
(in thousands)
23
Three Months Ended
9/30/14
9/30/14
Nine Months Ended
9/30/13
9/30/13
Total Revenues
$616,891
$570,551
$1,811,774
$1,481,202
Reimbursable Items
64,031
61,063
188,096
182,753
Revenues Before Reimbursable Items
$552,860
$509,488
$1,623,678
$1,298,449


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix:
Non-GAAP
Reconciliation
Adjusted
Segment Operating Income and Operating Margin
Three Months Ended                                   Nine Months Ended
Operating income
$129,407
$104,479
$308,867
$273,642
Add: Acquisition intangible amort
24,210
24,731
72,805
41,142
Add: Corporate admin and other
31,627
40,130
101,510
98,114
Total segment adjusted operating income
$185,244
$169,340
$483,182
$412,898
By segment: North America services (a)
$92,736
$84,443
$251,892
$234,509
International services (b)
$15,976
$9,528
$32,274
$24,082
Merchant services (c)
$40,409
$40,753
$103,473
$119,691
NetSpend (d)
$36,123
$34,616
$95,543
$34,616
Total revenues
$616,891
$570,551
$1,811,774
$1,481,202
Reimbursable items
(64,031)
(61,063)
(188,096)
(182,753)
Total segment revenues before reimbursable items
$552,860
$509,488
$1,623,678
$1,298,449
Intersegment revenues
4,542
3,001
15,248
9,428
By segment: North America services (e)
$240,957
$217,257
$698,543
$637,379
International services (f)
$87,385
$77,876
$248,890
$230,889
Merchant services (g)
$115,012
$113,650
$327,972
$335,903
NetSpend (h)
$114,048
$103,706
$363,521
$103,706
Adjusted segment operating margin:
North America services (a) / (e)
38.49%
38.87%
36.06%
36.79%
International services (b) / (f)
18.28%
12.23%
12.97%
10.43%
Merchant services (c) / (g)
35.13%
35.86%
31.55%
35.63%
NetSpend (d) / (h)
31.67%
33.38%
26.28%
33.38%
(in thousands)
24
9/30/13
9/30/14
9/30/13
9/30/14


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Nine
Months Ended
9/30/14        9/30/13
Percentage
Change
Three
Months Ended
9/30/14          9/30/13
Percentage
Change
Appendix: Non-GAAP Reconciliation –
Constant Currency
(1) Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.
(2) Reflects the impact of calculated changes in foreign currency rates from the comparable period.
(in thousands)
Consolidated:
Constant Currency (1)
$610,554
$570,551
7.0%
$1,793,838
$1,481,202
21.1%
Foreign Currency (2)
6,337
---
17,936
---
Total Revenues
$616,891
$570,551
8.1%
$1,811,774
$1,481,202
22.3%
International Services:
Constant Currency (1)
$85,506
$83,025
3.0%
$246,940
$245,420
0.6%
Foreign Currency (2)
6,359
---
17,770
---
Total Revenues
$91,865
$83,025
10.6%
$264,710
$245,420
7.9%
25


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Nine
Months Ended
9/30/14        9/30/13
Percentage
Change
Three
Months Ended
9/30/14       9/30/13
Percentage
Change
Appendix: Non-GAAP Reconciliation –
Constant Currency
(1) Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.
(2) Reflects the impact of calculated changes in foreign currency rates from the comparable period.
(in thousands)
26
Consolidated:
Constant Currency (1)
$546,782
$509,488
7.3%
$1,606,786
$1,298,449
23.7%
Foreign Currency (2)
6,078
---
16,892
---
Revenues before
reimbursable items
$552,860
$509,488
8.5%
$1,623,678
$1,298,449
25.0%
International Services:
Constant Currency (1)
$81,284
$77,876
4.4%
$232,166
$230,889
0.6%
Foreign Currency (2)
6,101
---
16,725
---
Revenues before
reimbursable items
$87,385
$77,876
12.2%
$248,890
$230,889
7.8%


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Reconciliation –
EBITDA and Adjusted EBITDA
(in thousands)
27
Three Months Ended
Nine Months Ended
Sep
2014
Sep
2013
Sep
2014
Sep
2013
Net income :
As reported (GAAP) (a)
$85,198
$67,494
$248,163
$187,205
Adjusted for:
Deduct: Income from discontinued
operations
(880)
(611)
(51,993)
(1,305)
Deduct: Equity in Income of Equity
Investments
(4,135)
(2,792)
(11,831)
(9,357)
Add: Income Taxes
39,227
30,100
94,333
77,547
Add: Nonoperating expenses
9,997
10,288
30,195
19,552
Add: Depreciation and
amortization
62,434
57,901
183,430
137,758
EBITDA
$191,841
$162,380
$492,297
$411,400
Adjust for:
Add: Share-based compensation
5,420
9,784
23,019
19,587
Add: NetSpend  M&A expenses
779
7,282
3,213
12,009
Adjusted EBITDA
$198,040
$179,446
$518,529
$442,996


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Reconciliation –
Adjusted EPS
(in thousands)
28
Three Months Ended
Nine Months Ended
Sep
2014
Sep
2013
Sep
2014
Sep
2013
Income from continuing operations available to
TSYS Common Shareholders:
As reported (GAAP) (a)
$82,925
$64,834
$192,018
$180,835
Adjusted for amounts attributable to TSYS
common shareholders (net of taxes):
Acquisition intangible amortization
15,762
16,595
47,374
27,134
Share-based compensation
3,573
6,706
15,174
13,425
NetSpend M&A expenses
786
5,424
3,111
13,934
Adjusted earnings (b)
$103,046
$93,559
$257,677
$235,328
Average common shares outstanding and
participating securities (c)
185,577
189,525
186,559
188,035
Basic EPS Available to TSYS Common
Shareholders (a) / (c)
$0.45
$0.34
$1.03
$0.96
Adjusted EPS Available to TSYS Common
Shareholders (b) / (c)
$0.56
$0.49
$1.38
$1.25


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Reconciliation –
EBITDA and Adjusted EBITDA
Trailing
Twelve Months
Ended
9/30/2014
Net Income
$317,556
Adjusted for:
Deduct: Discontinued operations
(52,744)
Deduct: Equity in Income of Equity Investments
(15,522)
Add: Income Taxes
127,767
Add: Nonoperating expense
40,668
Add: Depreciation and Amortization
244,698
EBITDA
$662,423
Adjust for: Share-based compensation
32,364
NetSpend M&A Operating Expenses*
4,838
Adjusted EBITDA
$699,625
(in thousands)
29
* Excludes share-based compensation


©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Appendix: Non-GAAP Reconciliation –
Free Cash Flow
Trailing
Twelve Months
Ended
9/30/2014
(in thousands)
30
Cash Flows from Operating Activities
$535,028
Less:
Purchase of Property and Equipment
(71,057)
Additions to Licensed Computer Software from Vendors
(44,814)
Additions to Internally Developed Computer Software
(41,250)
Additions to Contract Acquisition Costs
(85,682)
Free Cash Flow
$292,225