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

April 26, 2016

Date of Report (Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia	1-10254	58-1493818
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One TSYS Way, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2310

(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 April 26, 2016, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the first quarter ended March 31, 2016. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in the press release 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.

On April 26, 2016, Registrant will hold an investor conference call and webcast to discuss its financial results for the first quarter ended March 31, 2016. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and incorporated herein by reference. The information in the presentation 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Registrant’s press release dated April 26, 2016
99.2	Registrant’s presentation dated April 26, 2016

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: April 26, 2016	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

Total System Services, Inc. One TSYS Way P.O. Box 2567 Columbus, GA 31902-2567 +1.706.649.2307 +1.706.649.5740 www.tsys.com

For immediate release:

Contacts:

Shawn Roberts

TSYS Investor Relations

+1.706.644.6081

shawnroberts@tsys.com

TSYS Reports First Quarter 2016 Adjusted EPS Grew 22.8%

Closes TransFirst Acquisition and Raises 2016 Guidance

COLUMBUS, Ga., April 26, 2016 — TSYS (NYSE: TSS) today reported results for the first quarter of 2016 and raised its guidance after the acquisition of TransFirst, which closed on April 1, 2016. TSYS’ results for the first quarter do not include the results of TransFirst.

“Our financial performance for the first quarter was outstanding across all four of our segments. These results reflect exceptional execution by the TSYS team as we progress toward achieving our vision to become the leading global payment solutions provider and to deliver outstanding returns to our shareholders,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.

Highlights for the first quarter of 2016 include:

• Adjusted EPS from continuing operations were $0.66, an increase of 22.8%. On a GAAP basis, basic EPS from continuing operations were $0.49, an increase of 17.3%.

• Income from continuing operations attributable to TSYS’ shareholders was $90.6 million, an increase of 16.6%.

• Adjusted EBITDA was $230.8 million, an increase of 19.3%.

• Total revenues for the quarter were $739.4 million, an increase of 11.7%. Net revenue was $671.6 million, an increase of 12.7%.

• Adjusted operating margin was 27.7%, an increase of 178 basis points. GAAP operating margin was 20.5%.

“We are excited to include TransFirst in our revised guidance for 2016 that includes a net revenue range in excess of $3.0 billion and an adjusted earnings per share growth range of 13% to 16%. As a result of this transaction, TSYS is the 6^th largest¹ U.S. acquirer based on net revenue and supports more than 645,000 merchant outlets. With the added strength of TransFirst, TSYS is uniquely positioned as a top tier provider in issuer processing, merchant acquiring and prepaid program management delivering on our strategic goal of being a leader in all markets we serve,” said Woods.

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TSYS Reports First Quarter 2016 Adjusted EPS Grew 22.8%

The following table provides TSYS’ revised guidance for 2016 including TransFirst from April 1, 2016. Included is the introduction of a new adjusted revenue disclosure, net revenue, that better aligns our reporting with how the company’s management measures performance internally. A reconciliation of net revenue, which is a non-GAAP measure, to GAAP revenues is included on page 10 of this press release.

	2016 Revised Financial Outlook**
	Range (in millions, except per share amounts)					Percent Change
Total revenues	$	4,182	to	$	4,264		50	%	to	53	%
Net revenue	$	3,040	to	$	3,102		22	%	to	24	%
Adjusted EPS attributable to TSYS common shareholders from continuing operations*	$	2.78	to	$	2.85		13	%	to	16	%
* Average Basic Weighted Shares		183.6

** The revised guidance includes TransFirst’s operating results for nine months of 2016, excludes one-time expenses incurred in connection with the TransFirst acquisition and assumes no significant movement in foreign exchange rates.

¹ Pro forma ranking per First Annapolis Consulting and based on 2014 net revenue (gross revenue less interchange, assessments and card brand pass-throughs)

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, April 26. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage of tsys.com.

Non-GAAP Measures

This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of its consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.

Additional information about non-GAAP financial measures, including, but not limited to, net revenue, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 9 to 12 of this release.

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TSYS Reports First Quarter 2016 Adjusted EPS Grew 22.8%

About TSYS

TSYS^® (NYSE: TSS) unlocks opportunities in payments for payment providers, businesses and consumers. Our headquarters are in Columbus, Georgia, USA, and we operate in more than 80 countries with local offices across the Americas, EMEA and Asia-Pacific.

We provide seamless, secure and innovative solutions across the payments spectrum — from issuer processing and merchant acquiring to prepaid program management — delivered through partnership and expertise. We succeed because we put people, and their needs, at the heart of every decision. It’s an approach we call ‘People-Centered Payments^®’.

Our industry is changing every day — and we’re leading the way towards the payments of tomorrow. We routinely post all important information on our website. For more, visit us at tsys.com.

Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “potential,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding TSYS’ revised earnings guidance for 2016 total revenues, net revenue and adjusted EPS, and the assumptions underlying such statements. These statements are based on the current beliefs and expectations of TSYS’ management, are based on management’s assumptions 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 or events 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, the material breach of security of any of TSYS’ systems; TSYS’ ability to integrate acquisitions and achieve the anticipated growth opportunities and other benefits of the acquisitions, particularly the recently closed TransFirst acquisition; the effect of current domestic and worldwide economic conditions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; TSYS does not convert clients’ portfolios as scheduled; the deconversion of a significant client; changes occur in laws, rules, regulations, credit card association rules, prepaid industry rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed or limit the types and amounts of fees that can be charged to customers; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the payment card industry in general, including a decline in the use of cards as a payment mechanism; and growth rates of TSYS’ existing clients are lower than anticipated or attrition rates of existing clients are higher than anticipated. Additional risks and other factors that could cause actual results or events to differ materially from those contemplated in this release can be found in TSYS’ filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-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 —

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TSYS Announces First Quarter 2016 Earnings

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TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

	Three Months Ended March 31,
	2016			2015			Percent Change
Total revenues	$	739,378			662,156			11.7	%
Cost of services		480,556			449,705			6.9
Selling, general and administrative expenses		107,135			89,955			19.1
Total expenses		587,691			539,660			8.9
Operating income		151,687			122,496			23.8
Nonoperating expenses		(22,440	)		(9,209	)		nm
Income before income taxes, noncontrolling interests and equity in income of equity investments		129,247			113,287			14.1
Income taxes		43,429			39,782			9.2
Income before noncontrolling interests and equity in income of equity investments		85,818			73,505			16.8
Equity in income of equity investments, net of tax		6,590			5,394			22.2
Net income		92,408			78,899			17.1
Net income attributable to noncontrolling interests		(1,780	)		(1,144	)		(55.6	)
Net income attributable to TSYS common shareholders	$	90,628			77,755			16.6	%
Earnings per share (EPS):
Basic EPS	$	0.49			0.42			17.3	%
Diluted EPS	$	0.49			0.42			17.6	%
Weighted average shares outstanding: (includes participating securities)
Basic		183,256			184,481
Diluted		183,886			185,563
Dividends declared per share	$	0.10			0.10
Non-GAAP measures:
Net revenue	$	671,644			595,784			12.7	%
Adjusted EPS from continuing operations	$	0.66			0.54			22.8	%
Adjusted EBITDA	$	230,829			193,454			19.3	%

nm = not meaningful

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TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended March 31,
							Change
	2016			2015			$			%
Net revenue
North America Services	$	303,641			266,219			37,422			14.1	%
International Services		75,354			73,730			1,624			2.2
Merchant Services		120,612			110,398			10,214			9.3
NetSpend		184,992			155,074			29,918			19.3
Intersegment revenues		(12,955	)		(9,637	)		(3,318	)		(34.4	)
Net revenue from external customers	$	671,644			595,784			75,860			12.7	%
Depreciation and amortization:
North America Services	$	27,483			23,064			4,419			19.2	%
International Services		8,136			8,778			(642	)		(7.3	)
Merchant Services		5,050			4,277			773			18.1
NetSpend		3,109			2,293			816			35.6
Segment depreciation and amortization		43,778			38,412			5,366			14.0
Acquisition intangible amortization		22,921			23,867			(946	)		(4.0	)
Corporate admin and other		884			536			348			64.9
Total depreciation and amortization	$	67,583			62,815			4,768			7.6	%
Adjusted segment operating income:
North America Services	$	124,788			102,570			22,218			21.7	%
International Services		10,289			6,983			3,306			47.3
Merchant Services		38,357			34,115			4,242			12.4
NetSpend		42,201			35,467			6,734			19.0
Total adjusted segment operating income		215,635			179,135			36,500			20.4
Acquisition intangible amortization		(22,921	)		(23,867	)		946			4.0
TransFirst M&A operating expenses		(3,401	)		—			(3,401	)		nm
Share-based compensation		(8,158	)		(8,143	)		(15	)		(0.2	)
Corporate admin and other		(29,468	)		(24,629	)		(4,839	)		(19.6	)
Operating income	$	151,687			122,496			29,191			23.8	%

nm = not meaningful

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TSYS

Condensed Balance Sheet

(unaudited)

(in thousands)

	March 31, 2016		December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	1,932,111		389,328
Accounts receivable, net		349,271		314,705
Other current assets		145,052		154,199
Total current assets		2,426,434		858,232
Goodwill		1,545,631		1,545,424
Other intangible assets, net		309,372		328,320
Property, equipment and software, net		679,903		694,968
Other long term assets		462,593		450,951
Total assets	$	5,423,933		3,877,895
Liabilities
Current liabilities:
Accounts payable	$	44,526		52,213
Bonds, notes and capital leases		21,647		53,546
Other current liabilities		217,524		233,173
Total current liabilities		283,697		338,932
Bonds, notes and capital leases, excluding current portion		2,887,247		1,377,541
Other long-term liabilities		306,362		289,330
Total liabilities		3,477,306		2,005,803
Redeemable noncontrolling interest		25,086		23,410
Equity
Shareholders’ equity		1,921,541		1,843,018
Noncontrolling interests in consolidated subsidiaries		—		5,664
Total equity		1,921,541		1,848,682
Total liabilities and equity	$	5,423,933		3,877,895

Note: TSYS adopted Accounting Standards Update (ASU) 2015-03 “Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Cost” on January 1, 2016. This ASU requires TSYS to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts. All prior periods presented have been restated for this ASU.

TSYS also adopted ASU 2015-17 “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes” on January 1, 2016. This ASU requires the classification of all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. All prior periods presented have been restated for this ASU.

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TSYS

Selected Cash Flow Highlights

(unaudited)

(in thousands)

	Three Months Ended March 31,
	2016			2015
Cash flows from operating activities:
Net income	$	92,408			78,899
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(6,590	)		(5,394	)
Dividends received from equity investments		—			—
Depreciation and amortization		67,583			62,815
Other noncash adjustments		47,629			16,836
Changes in operating assets and liabilities		(55,202	)		5,336
Net cash provided by operating activities		145,828			158,492
Net cash used in investing activities		(44,388	)		(41,714	)
Net cash provided by (used in) financing activities		1,442,012			(73,756	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents		(669	)		(4,093	)
Net increase in cash and cash equivalents		1,542,783			38,929
Cash and cash equivalents at beginning of period		389,328			289,183
Cash and cash equivalents at end of period	$	1,932,111			328,112
Supplemental - Non-GAAP:
Net cash provided by operating activities	$	145,828			158,492
Capital expenditures		(44,388	)		(43,554	)
Free cash flow		101,440			114,938
Principal payments on debt and capital leases*		(9,654	)		(15,086	)
Available free cash flow	$	91,786			99,852

* Less accelerated principal payments

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TSYS

Supplemental Information

(unaudited)

Other

Accounts on File (AOF):

	Total Accounts on File
(in millions)	March 2016		March 2015		% Change
Consumer		414.8		392.8		5.6
Commercial		46.3		42.3		9.3
Other		27.7		22.7		22.5
Traditional AOF		488.8		457.8		6.8
Prepaid*/Stored Value		103.1		126.6		(18.6	)
Government Services		82.7		74.5		11.1
Commercial Card Single Use		75.9		64.8		17.1
Total AOF		750.5		723.7		3.7

* Prepaid does not include NetSpend accounts

Growth in Accounts on File (in millions):

	March 2015 to March 2016			March 2014 to March 2015
Beginning balance		723.7			556.2
Change in accounts on file due to:
Internal growth of existing clients		52.3			39.8
New clients		43.1			172.5
Purges/Sales		(24.3	)		(44.2	)
Deconversions		(44.3	)		(0.6	)
Ending balance		750.5			723.7

Segment data:

	Three Months Ended March 31,
							Change
	2016			2015			Inc(Dec)		%
North America Segment:
AOF (in millions)		669.7			653.2			16.5		2.5	%
Traditional AOF (in millions)		423.3			396.3			27.0		6.8	%
Transactions (in millions)		3,969.5			3,310.7			658.8		19.9	%
International Segment:
AOF (in millions)		80.8			70.5			10.3		14.7	%
Traditional AOF (in millions)		65.5			61.5			4.0		6.6	%
Transactions (in millions)		618.3			572.0			46.3		8.1	%
Merchant Segment:
Point-of-sale transactions (in millions)		1,091.0			984.6			106.4		10.8	%
Dollar sales volume (in millions)	$	11,783.4		$	11,301.6		$	481.8		4.3	%
NetSpend Segment:
Gross dollar volume (in millions)	$	9,161.5		$	7,660.7		$	1,500.8		19.6	%
Direct deposit 90-day active cards (in thousands)		2,789.2			2,403.5			385.7		16.0	%
90-day active cards (in thousands)		4,881.6			4,193.0			688.6		16.4	%
% of 90-day active cards with direct deposit		57.1	%		57.3	%

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Reconciliation of GAAP to Non-GAAP Financial Measures

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents first quarter 2016 financial results using the previous year’s foreign currency exchange rates. On a full year constant currency basis, TSYS’ total revenues grew 12.5% as compared to a reported GAAP increase of 11.7%.

The schedule below also provides a reconciliation of basic EPS, adjusted for the after-tax impact of acquisition intangible amortization, share-based compensation and merger and acquisition costs, to adjusted EPS.

The schedule below provides a reconciliation of total revenues to net revenue. Net revenue is defined as total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense.

The tax rate used in the calculation of adjusted EPS for the quarter and year is equal to an estimate of our annual effective tax rate on GAAP income. This effective rate is estimated annually and may be adjusted during the year to take into account events or trends that materially impact the effective tax rate including, but not limited to, significant changes resulting from tax legislation, material changes in the mix of revenues and expenses by entity and other significant events.

The schedule also provides a reconciliation of net income, adjusted for income from discontinued operations, equity in income of equity investments, income taxes, nonoperating expense, depreciation and amortization, share-based compensation, and merger and acquisition expenses, to adjusted EBITDA.

TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and potential investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.

Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.

TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.

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Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison

(unaudited)

(in thousands)

	Three Months Ended March 31,
						Percent
	2016			2015		Change
Consolidated
Constant currency (1)	$	744,974			662,156		12.5	%
Foreign currency impact (2)		(5,596	)		—
Total revenues	$	739,378			662,156		11.7	%
Constant currency (1)	$	676,845			595,784		13.6	%
Foreign currency impact (2)		(5,201	)		—
Net revenue	$	671,644			595,784		12.7	%
Constant currency (1)	$	152,781			122,496		24.7	%
Foreign currency impact (2)		(1,094	)		—
Operating income	$	151,687			122,496		23.8	%
International Services
Constant currency (1)	$	86,611			79,802		8.5	%
Foreign currency impact (2)		(5,538	)		—
Total revenues	$	81,073			79,802		1.6	%

(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.

Net Revenue

(unaudited)

(in thousands)

	Three Months Ended March 31,
					Percent
	2016		2015		Change
Total revenues	$	739,378		662,156		11.7	%
Reimbursable items		67,734		66,372		2.1
Interchange & assessments expense		—		—		—
Net revenue	$	671,644		595,784		12.7	%

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Reconciliation of GAAP to Non-GAAP

Adjusted Earnings per Share

(unaudited)

(in thousands, except per share data)

	Three Months Ended March 31,
					Percent
	2016		2015		Change
Income from continuing operations attributable to TSYS common shareholders	$	90,628		77,755		16.6	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes		15,021		15,761		(4.7	)
Add: Share-based compensation, net of taxes		5,406		5,441		(0.6	)
Add: TransFirst M&A expenses, net of taxes*		9,655		—		nm
Adjusted earnings	$	120,710		98,957		22.0	%
Basic EPS - Income from continuing operations attributable to TSYS common shareholders
As reported (GAAP)	$	0.49		0.42		17.3	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes		0.08		0.09		(4.0	)
Add: Share-based compensation, net of taxes		0.03		0.03		(0.1	)
Add: TransFirst M&A expenses, net of taxes*		0.05		—		nm
Adjusted EPS **	$	0.66		0.54		22.8	%
Weighted average shares outstanding		183,256		184,481

* Certain merger and acquisition costs are nondeductible for income tax purposes

** Adjusted EPS amounts may not total due to rounding.

Adjusted EBITDA

(unaudited)

(in thousands)

	Three Months Ended March 31,
							Percent
	2016			2015			Change
Net income	$	92,408			78,899			17.1	%
Adjust for:
Deduct: Equity in income of equity investments		(6,590	)		(5,394	)		(22.2	)
Add: Income taxes		43,429			39,782			9.2
Add: Nonoperating expense		22,440			9,209			nm
Add: Depreciation and amortization		67,583			62,815			7.6
EBITDA	$	219,270			185,311			18.3	%
Adjust for:
Add: Share-based compensation		8,158			8,143			0.2
Add: TransFirst M&A operating expenses		3,401			—			nm
Adjusted EBITDA	$	230,829			193,454			19.3	%

nm = not meaningful

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TSYS Announces First Quarter 2016 Earnings

Page 12 of 12

Reconciliation of GAAP to Non-GAAP

Segment Operating Margin and Consolidated Adjusted Operating Margin

(unaudited)

(in thousands)

	Three Months Ended March 31, 2016									Three Months Ended March 31, 2015
	Adjusted Segment						Adjusted			Adjusted Segment						Adjusted
	Operating Income			Net Revenue			Operating Margin			Operating Income			Net Revenue			Operating Margin
North America Services	$	124,788			303,641			41.10	%	$	102,570			266,219			38.53	%
International Services		10,289			75,354			13.65			6,983			73,730			9.47
Merchant Services		38,357			120,612			31.80			34,115			110,398			30.90
NetSpend		42,201			184,992			22.81			35,467			155,074			22.87
Intersegment		—			(12,955	)					—			(9,637	)
Corporate admin and other		(29,468	)								(24,629	)
Adjusted operating margin	$	186,167			671,644			27.72	%	$	154,506			595,784			25.93	%
Acquisition intangible amortization		(22,921	)								(23,867	)
TransFirst M&A operating expenses		(3,401	)								—
Share-based compensation		(8,158	)								(8,143	)
Operating income and margin*	$	151,687			671,644			22.58	%	$	122,496			595,784			20.56	%
Reimbursable items					67,734									66,372
Operating income and margin (US GAAP)	$	151,687			739,378			20.52	%	$	122,496			662,156			18.50	%

* Operating margin on net revenue

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EX-99.2

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 2016 FIRST QUARTER April 26, 2016 Exhibit 99.2

2016 First Quarter FORWARD-LOOKING STATEMENTS 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 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 2015 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. ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

2016 First Quarter USE OF NON-GAAP FINANCIAL MEASURES 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: net revenue; operating margin on net revenue; 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. ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. M. Troy Woods Chairman, President and Chief Executive Officer

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Paul Todd Chief Financial Officer

2016 First Quarter CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Total Revenues $739,378 $662,156 11.7 % Net Revenue* 671,644 595,784 12.7 Adjusted EBITDA* 230,829 193,454 19.3 Adjusted EPS* from Continuing Operations $0.66 $0.54 22.8 (in thousands, except per share data) YTD 2016 YTD 2015 Percent Change (*) Net Revenue, Adjusted EBITDA and Adjusted EPS definitions are contained in the Appendix

2016 First Quarter CONSOLIDATED HIGHLIGHTS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Announced TransFirst acquisition Continued strong volume growth across all segments Increased adjusted operating margin by 178 basis points (*) Net Revenue ($ in millions) Adjusted Operating Income Operating Margin* 12.7% 11.8% ($ in millions)

2016 First Quarter NORTH AMERICA SEGMENT HIGHLIGHTS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Renewed focus on cross sell and proactive delivery of innovative solutions Record number Traditional AOF along with double-digit transaction growth Record quarter for net revenue and adjusted segment operating income (♦) Growth Including Prepaid, Government Services and Single Use Accounts (in millions) 49.4% 31.8% 46.3% 32.8% 36.9% 26.6% 37.3% 18.9% 6.8% 2.5% t (*) Net Revenue Segment Net Revenue YOY Growth % 18.7% 23.1% 21.8% 17.5% 14.1% ($ in millions) Adjusted Segment Operating Income Operating Margin* ($ in millions)

Reported Constant Currency (4.0%) 5.1% (1.0%) 9.4% (1.1%) 7.9% (6.2%) (0.6%) 2.2% 9.2% ($ in millions) 2016 First Quarter INTERNATIONAL SEGMENT HIGHLIGHTS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Adjusted Segment Operating Income Operating Margin* ($ in millions) 16.1% 18.5% 16.9% 17.8% 14.7% (in millions) Segment Net Revenue YOY Growth % Continued focus on growth and margin expansion Record number Traditional AOF along with transaction growth at 8.1% Net revenue up 9.2% constant currency (*) Net Revenue t (♦) Growth Including Single Use Accounts 7.6% 8.4% 6.5% 8.5% 6.6%

2016 First Quarter MERCHANT SEGMENT HIGHLIGHT ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Segment Net Revenue YOY Growth % Strong performance leading up to the TransFirst acquisition SMB sales volume up 11.9% YOY Net revenue up 9.3% ($ in millions) (*) Net Revenue ($ in millions) Adjusted Segment Operating Income Operating Margin* Segment Revenue by LOB YOY Growth % (4%) 13% (0%) 16% 14% (1%) 15% 10% 11% 7% Direct Indirect ($ in millions) 5.5% 8.8% 7.6% 13.4% 9.3%

2016 First Quarter NETSPEND SEGMENT HIGHLIGHTS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Segment Net Revenue YOY Growth % ($ in millions) 16.9% 21.2% 22.4% 20.9% 19.3% Launched small business pilot; signed 3 year renewal with Family Dollar Gross Dollar Volume (GDV) up 19.6%; exceeded 100,000 distributing locations and employers Record quarterly net revenue and adjusted segment operating income (*) Net Revenue Gross Dollar Volume YOY Growth % 16.7% 19.5% 22.3% 21.3% 19.6% ($ in billions) Adjusted Segment Operating Income Operating Margin* ($ in millions)

2016 First Quarter SEGMENT OPERATING MARGIN AND CONSOLIDATED ADJUSTED OPERATING MARGIN ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Net Revenue Adjusted Operating Margin Adjusted Segment Operating Income North America $124,788 $303,641 41.10% International 10,289 75,354 13.65% Merchant 38,357 120,612 31.80% NetSpend 42,201 184,992 22.81% Intersegment -- (12,955) Corporate administration excluding share-based compensation (29,468) -- Adjusted operating margin $186,167 $671,644 27.72% Amortization of acquisition intangibles (22,921) TransFirst M&A operating expenses (3,401) Share-based compensation (8,158) Operating income (US GAAP) $151,687 (in thousands) Three Months Ended March 31, 2016

2016 First Quarter ROLLFORWARD OF QUARTERLY CASH BALANCE ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. $200 $500 $100 $0 $300 Operating Activities $146 Cap Ex ($44) Debt Pmts ($10) Dividends ($18) Ending Balance $445 (1) 12/31/2015 3/31/2016 $400 Beginning Balance $389 Other ($18) $600 (in millions) (1) Excludes proceeds from borrowings of $1.487 billion received in March 2016 which were used to pay a portion of the purchase price for TransFirst. Ending cash including proceeds from borrowings was $1.932 billion

2016 First Quarter CASH FLOW STRENGTH: 2016 TTM Consolidated Financial Highlights ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in millions) (TTM = Trailing Twelve Months) Adjusted EBITDA Cash flow from operations Free cash flow Net income Ending cash (1) Excludes proceeds from borrowings of $1.487 billion received in March 2016. Ending cash including proceeds from borrowings was $1.932 billion (1)

2016 First Quarter 2016 REVISED GUIDANCE* ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Range Range Percent Change Total Revenues $4,182 to $4,264 50 % to 53 % Net Revenue $3,040 to $3,102 22 % to 24 % Adjusted EPS attributable to TSYS common shareholders from continuing operations $2.78 to $2.85 13 % to 16 % Average Basic Weighted Shares 183.6 (in millions, except per share data) (*) See Appendix for guidance assumptions

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Q&A

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. THANK YOU

©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. APPENDIX

2016 First Quarter APPENDIX: Non-GAAP Items – Net Revenue, Adjusted EBITDA and Adjusted EPS Net revenue is defined as total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that are recorded by TSYS as expense. Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), taxes, depreciation, amortization and stock-based compensation expenses and TransFirst 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 TransFirst 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 net revenue. 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. ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

2016 First Quarter APPENDIX: Accounts on File Portfolio Summary ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Consumer 414.8 392.8 5.6 414.8 408.2 1.6 Commercial 46.3 42.3 9.3 46.3 45.4 1.9 Other 27.7 22.7 22.5 27.7 26.6 4.5 Traditional AOF 488.8 457.8 6.8 488.8 480.2 1.8 Prepaid*/ Stored Value 103.1 126.6 (18.6 ) 103.1 97.2 6.1 Government Services 82.7 74.5 11.1 82.7 79.3 4.3 Commercial Card Single Use 75.9 64.8 17.1 75.9 75.8 0.1 Total AOF 750.5 723.7 3.7 750.5 732.5 2.5 (in millions) March 2016 March 2015 % Change March 2016 December 2015 % Change (* - Prepaid does not include NetSpend accounts)

2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Net Revenue ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Three Months Ended 3/31/16 3/31/15 Total revenues $739,378 $662,156 Reimbursable items 67,734 66,372 Interchange and assessments expense* - - Net revenue $671,644 $595,784 (in thousands) * Relates to acquisition of TransFirst, which closed April 1, 2016

2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Operating Margin ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in thousands) Three Months Ended 3/31/16 3/31/15 Adjusted segment operating income By segment: North America services (a) $124,788 $102,570 International services (b) 10,289 6,983 Merchant services (c) 38,357 34,115 NetSpend (d) 42,201 35,467 Less: Acquisition intangible amortization (22,921) (23,867) Less: Corporate admin and other (37,626) (32,772) Less: TransFirst M&A operating expenses (3,401) -- Operating income $151,687 $122,496 Net revenue By segment: North America services (e) $303,641 $266,219 International services (f) 75,354 73,730 Merchant services (g) 120,612 110,398 NetSpend (h) 184,992 155,074 Less: Intersegment revenues (12,955) (9,637) Add: Reimbursable items 67,734 66,372 Add: Interchange and assessments expense* -- -- Total revenues $739,378 $662,156 Adjusted segment operating margin: North America services (a) / (e) 41.10% 38.53% International services (b) / (f) 13.65% 9.47% Merchant services (c) / (g) 31.80% 30.90% NetSpend (d) / (h) 22.81% 22.87% * Relates to acquisition of TransFirst, which closed April 1, 2016

Three Months Ended 3/31/16 3/31/15 Percentage Change Consolidated: Constant currency (1) $676,845 $595,784 13.6 % Foreign currency (2) (5,201 ) -- Net revenue $671,644 $595,784 12.7 % International services: Constant currency (1) $80,497 $73,730 9.2 % Foreign currency (2) (5,143 ) -- Net revenue $75,354 $73,730 2.2 % 2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Constant Currency Net Revenue ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in thousands) (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.

Three Months Ended 3/31/16 3/31/15 Percentage Change Consolidated: Constant currency (1) $744,974 $662,156 12.5 % Foreign currency (2) (5,596 ) --- Total revenues $739,378 $662,156 11.7 % International services: Constant currency (1) $86,611 $79,802 8.5 % Foreign currency (2) (5,538 ) --- Total revenues $81,073 $79,802 1.6 % 2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Constant Currency Total Revenue ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in thousands) (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.

Three Months Ended Net income : 3/31/16 3/31/15 As reported (GAAP) $92,408 $78,899 Adjusted for: Deduct: Equity in income of equity investments (6,590 ) (5,394 ) Add: Income taxes 43,429 39,782 Add: Nonoperating expenses 22,440 9,209 Add: Depreciation and amortization 67,583 62,815 EBITDA $219,270 $185,311 Adjust for: Add: Share-based compensation 8,158 8,143 Add: TransFirst M&A expenses 3,401 -- Adjusted EBITDA $230,829 $193,454 2016 First Quarter APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in thousands)

Three Months Ended Mar 2016 Mar 2015 Income from continuing operations available to TSYS common shareholders: As reported (GAAP) (a) $90,628 $77,755 Adjusted for amounts attributable to TSYS common shareholders (net of taxes): Acquisition intangible amortization 15,021 15,761 Share-based compensation 5,406 5,441 TransFirst M&A expenses 9,655 -- Adjusted earnings (b) $120,710 $98,957 Average common shares outstanding and participating securities (c) 183,256 184,481 Basic EPS Available to TSYS common shareholders (a) / (c) $0.49 $0.42 Adjusted EPS Available to TSYS common shareholders (b) / (c) $0.66 $0.54 2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Adjusted EPS ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. (in thousands)

2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Free Cash Flow ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Trailing Twelve Months Ended 3/31/2016 Cash flows from operating activities $611,741 Less: Purchases of property and equipment (54,607 ) Additions to licensed computer software from vendors (44,041 ) Additions to internally developed computer software (38,201 ) Additions to contract acquisition costs (67,375 ) Free cash flow $407,517 (in thousands)

2016 First Quarter APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Trailing Twelve Months Ended 3/31/2016 (in thousands) Net Income $382,550 Adjusted for: Deduct: Discontinued operations (1,410 ) Deduct: Equity in Income of Equity Investments (23,303 ) Add: Income Taxes 155,012 Add: Nonoperating expense 50,449 Add: Depreciation and Amortization 263,033 EBITDA $826,331 Adjust for: Share-based compensation 41,563 TransFirst M&A Operating Expenses 3,401 Adjusted EBITDA $871,295

2016 First Quarter APPENDIX: 2016 Revised Guidance Assumptions ©2016 Total System Services, Inc.® Proprietary. All rights reserved worldwide. The guidance assumes: There will be no significant movements in the London Interbank Offered rate and TSYS will not make any significant draws on the remaining balance of its credit facility; There will be no significant movement in foreign currency exchange rates related to TSYS’ business; TSYS will not incur significant expenses associated with the conversion of new large clients, additional acquisitions, or any significant impairment of goodwill or other intangibles; There will be no deconversions of large clients during the year other than as previously disclosed; and The economy will not worsen. Additionally, the impact of future share repurchases is not included.