TSYS announces that its financial results were in line with the Company’s forecast for the third quarter and first nine months of 2002. The company reaffirmed its 20% annual earnings growth estimate for the full year.
Net income for the quarter ending September 30, 2002, increased 27.1% to $32.3 million, up from $25.5 million in the same period last year. Basic and diluted earnings per share for the third quarter increased to $0.16, up from $0.13 one year ago. Revenue for the third quarter was $234.9 million, an increase of 8.7%, compared with revenue of $216.1 million one year ago. Revenue for the third quarter of 2002, excluding the amounts for reimbursable charges such as postage and courier charges, was $178.6 million, an increase of 10.8%, compared to one year ago.
Net income for the first nine months of 2002 increased 20.6% to $88.6 million, up from $73.4 million in the same period last year. Basic and diluted earnings per share for the first nine months of 2002 increased to $0.45, up from $0.38 one year ago. Revenue for the first nine months of 2002 was $695.8 million, an increase of 6.6%, compared with revenue of $652.8 million one year ago. Revenue for the first nine months of 2002, excluding the amounts for reimbursable charges, was $522.6 million, an increase of 9.9%, compared to one year ago.
The third quarter results include a foreign currency translation gain of $2.1 million on the company’s short-term financing with its European operations. Excluding foreign currency translation gains, net income for the third quarter of 2002 increased 21.4% over the same period last year. For the first nine months of 2002, net income increased 18.6% over the same period last year excluding foreign currency translation gains.
“We are pleased with our continued history of earnings growth and to affirm that we believe we will meet our targets for the year,” said Richard W. Ussery, chairman and CEO of TSYS. “TSYS had another solid quarter with internal growth in accounts on file of existing customers of 11.6%. Our continued focus on expense control delivered an operating margin excluding reimbursable items of 25.3% compared to 23.6% a year ago.”
Ussery continued, “During the third quarter of 2002, we announced:
* Signing of a ten-year agreement with CIBC to process more than 5 million Visa accounts.
* Signing of Canadian Tire Retail to a new gift card program.
* Signing of a five-year agreement with First Equity Card to process commercial cards specifically designed for businesses with fewer than 10 employees.
* Renewal of a five-year agreement with 5Star Bank.
* Acquisition of ProCard from its majority shareholder, Synovus, for approximately $30.0 million. ProCard is a leader in customized, Internet, Intranet and client/server software solutions for commercial card management programs. Due to the technological nature of the business, TSYS has assisted in the management of ProCard since Synovus acquired it in May 2000. We expect the acquisition to be effective November 1, 2002.”
“We continue to proceed with our long-term growth strategy by pursuing new clients and acquiring new businesses,” said Ussery.
TSYS also announces today the signing of a letter of intent with Bank of Ireland to process its consumer and commercial accounts. Bank of Ireland will convert its accounts from its in-house system in the first half of 2003. After the conversion, TSYS will process more than 90 percent of the card accounts in Ireland and will service an estimated 14.2 million card accounts in Europe.
At the end of the third quarter in 2000, TSYS announced its goal of growing net income by 20-25% in each of the years 2001-2003. TSYS achieved this goal in 2001 when it reported 20.2% net income growth, and expects to achieve this goal in 2002. Consistent with the company’s previously communicated earnings guidance, to achieve this goal for 2003 would require, among other things, that TSYS sign a major client from which it would realize substantial revenues in 2003. TSYS has not yet been successful in signing the major client needed for it to achieve this goal and, accordingly, TSYS today realigns its forecast for 2003. TSYS now expects its 2003 net income to exceed its 2002 net income by 12-15%. The assumptions underlying 2003’s net income forecast are an increase in revenues (excluding reimbursables) between 9-10%, an internal growth rate of accounts of existing clients of approximately 11% and a continued focus on expense management. Though TSYS remains optimistic about the possibilities of signing a major client, this forecast does not include any revenues or expenses associated with signing and converting a major client.
About TSYS
TSYS (NYSE: TSS) () brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. For more information, contact [email protected] .
TSYS announces
that its financial results were in line with the Company’s forecast for the third quarter and first nine months of 2002. The company reaffirmed its 20% annual earnings growth estimate for the full year.
Net income for the quarter ending September 30, 2002, increased 27.1% to $32.3 million, up from $25.5 million in the same period last year. Basic and diluted earnings per share for the third quarter increased to $0.16, up from $0.13 one year ago. Revenue for the third quarter was $234.9 million, an increase of 8.7%, compared with revenue of $216.1 million one year ago. Revenue for the third quarter of 2002, excluding the amounts for reimbursable charges such as postage and courier charges, was $178.6 million, an increase of 10.8%, compared to one year ago.
Net income for the first nine months of 2002 increased 20.6% to $88.6 million, up from $73.4 million in the same period last year. Basic and diluted earnings per share for the first nine months of 2002 increased to $0.45, up from $0.38 one year ago. Revenue for the first nine months of 2002 was $695.8 million, an increase of 6.6%, compared with revenue of $652.8 million one year ago. Revenue for the first nine months of 2002, excluding the amounts for reimbursable charges, was $522.6 million, an increase of 9.9%, compared to one year ago.
The third quarter results include a foreign currency translation gain of $2.1 million on the company’s short-term financing with its European operations. Excluding foreign currency translation gains, net income for the third quarter of 2002 increased 21.4% over the same period last year. For the first nine months of 2002, net income increased 18.6% over the same period last year excluding foreign currency translation gains.
“We are pleased with our continued history of earnings growth and to affirm that we believe we will meet our targets for the year,” said Richard W. Ussery, chairman and CEO of TSYS. “TSYS had another solid quarter with internal growth in accounts on file of existing customers of 11.6%. Our continued focus on expense control delivered an operating margin excluding reimbursable items of 25.3% compared to 23.6% a year ago.”
Ussery continued, “During the third quarter of 2002, we announced:
* Signing of a ten-year agreement with CIBC to process more than 5 million Visa accounts.
* Signing of Canadian Tire Retail to a new gift card program.
* Signing of a five-year agreement with First Equity Card to process commercial cards specifically designed for businesses with fewer than 10 employees.
* Renewal of a five-year agreement with 5Star Bank.
* Acquisition of ProCard from its majority shareholder, Synovus, for approximately $30.0 million. ProCard is a leader in customized, Internet, Intranet and client/server software solutions for commercial card management programs. Due to the technological nature of the business, TSYS has assisted in the management of ProCard since Synovus acquired it in May 2000. We expect the acquisition to be effective November 1, 2002.”
“We continue to proceed with our long-term growth strategy by pursuing new clients and acquiring new businesses,” said Ussery.
TSYS also announces today the signing of a letter of intent with Bank of Ireland to process its consumer and commercial accounts. Bank of Ireland will convert its accounts from its in-house system in the first half of 2003. After the conversion, TSYS will process more than 90 percent of the card accounts in Ireland and will service an estimated 14.2 million card accounts in Europe.
At the end of the third quarter in 2000, TSYS announced its goal of growing net income by 20-25% in each of the years 2001-2003. TSYS achieved this goal in 2001 when it reported 20.2% net income growth, and expects to achieve this goal in 2002. Consistent with the company’s previously communicated earnings guidance, to achieve this goal for 2003 would require, among other things, that TSYS sign a major client from which it would realize substantial revenues in 2003. TSYS has not yet been successful in signing the major client needed for it to achieve this goal and, accordingly, TSYS today realigns its forecast for 2003. TSYS now expects its 2003 net income to exceed its 2002 net income by 12-15%. The assumptions underlying 2003’s net income forecast are an increase in revenues (excluding reimbursables) between 9-10%, an internal growth rate of accounts of existing clients of approximately 11% and a continued focus on expense management. Though TSYS remains optimistic about the possibilities of signing a major client, this forecast does not include any revenues or expenses associated with signing and converting a major client.
About TSYS
TSYS (NYSE: TSS) () brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.
For more information visit CardData ([www.carddata.com][1])
[1]: http://www.carddata.com
