TSYS First Quarter 2001 Results On Target; Company Expects to Achieve a 20% Increase in Net Income for the Year

Apr 17, 2001, 01:00 ET from Total System Services, Inc.

    COLUMBUS, Ga., April 17 /PRNewswire/ -- TSYS(R) (NYSE:   TSS) today
 announced net income and revenues for the three months ended March 31, 2001,
 which were on target with the Company's expectations.
     Net income for the first quarter of 2001 increased 6.6% to $22.0 million,
 up from $20.7 million for the same period last year.  Basic and diluted
 earnings per share for the first quarter of 2001 were $0.11.  Revenues for the
 first three months of 2001 were $154.1 million, an increase of 5.7%, compared
 with revenues of $145.9 million for the first quarter of 2000.  Excluding
 revenues attributable to the Citigroup Universal Card Services' (UCS) consumer
 card portfolio for the first three months of 2000, pro forma revenues for the
 first quarter this year increased 14.0% compared to last year.
     Chairman and CEO Richard W. Ussery said, "We are extremely satisfied with
 the financial results for the first quarter of 2001.  The results were in line
 with our forecast, which called for mid-single digit growth rates during the
 first and second quarters, when compared to the same periods in 2000 when we
 were processing the UCS consumer card portfolio.  Our focus on expense
 controls has been critical in meeting our forecast especially in light of
 incurring new costs associated with our international expansion.  With the
 conversion of The Royal Bank of Scotland Group plc and Allied Irish Banks plc,
 we expect the growth rate in earnings in the third and fourth quarters of 2001
 to be in excess of 30%.  We anticipate achieving a 20% growth in net income
 for 2001."
     Ussery continued, "During the first quarter of 2001, we announced:
 
     *  the Company's new look, complete with a new tagline, position and
        vision.  In addition, although its legal name will remain Total System
        Services, Inc., the Company will now be known as TSYS (tee-sis).  TSYS
        began its re-branding effort in late 2000, and its new look reflects
        the Company's fresh and energetic approach to payments processing as
        the action behind the transaction.
 
     *  the unveiling of our three-year strategic plan, known as VisionWorks,
        which focuses on four initiatives: grow core business, drive
        international expansion, expand portfolio management services and
        capitalize on e-business opportunities.
 
     *  a 20% increase in the quarterly cash dividend of TSYS common stock.
        The quarterly cash dividend has been increased to $0.015 from $0.0125
        per share.
 
     *  the processing of American Express' cobranded Platinum ShopRite Credit
        Card portfolio on TS2(R), under TSYS' agreement with American Express.
 
     *  the election of Alfred W. "Bill" Jones III to serve as a member of the
        board of directors of TSYS.  Jones is chairman of the board and CEO of
        the Sea Island Company.
 
     "We look forward to another successful year in 2001 as we execute our
 three-year strategic plan."
 
     VisionWorks
     We believe that VisionWorks will enable TSYS to achieve annual increases
 in net income in the range of 20-25% for the years 2001 to 2003.
 
     VisionWorks Strategic Plan Scorecard:
 
                              1st Qtr 2001        2001E        2003E
 
     Revenues               $154.1 million   $670 million    $1 billion
     International revenue
       percentage                   9.7%           13%           20%
     Increase in net income         6.6%           20%         20-25%
     Accounts on File        199.2 million    220 million   300 million
 
     Grow Core Business
     Core business includes transaction processing for consumer credit, retail,
 commercial, debit, chip and stored value card issuers.  VisionWorks guides
 TSYS to expand its current market share positions in each of the different
 issuing markets by leveraging its competitive advantages of people, technology
 and service.
 
     *  In the consumer card processing market, TSYS expects to capitalize on
        the increasing trend toward outsourcing by emphasizing the most
        successful processing system on the market, TS2.
 
     *  As TSYS introduces its new TS2 commercial card platform, we expect to
        gain greater market share in the commercial card arena.
 
     *  TSYS plans a concerted effort to focus on the debit card market
        (currently approximately 2% of annual revenues) with the introduction
        of its debit-centric platform later this year.
 
     Drive International Expansion
     TSYS expects to derive approximately 20% of its total revenues in 2003
 from international sources.  TSYS expects to convert the portfolios of The
 Royal Bank of Scotland Group plc and Allied Irish Banks plc by the middle of
 the third quarter of 2001.  TSYS is actively pursuing other international
 clients in the anticipation of securing additional processing agreements by
 leveraging its UK operations to catapult into other European countries.
 Through its majority owned operation in Japan, TSYS plans on establishing
 itself as a premiere service provider with the goal of expanding its service
 offerings in the Asia Pacific region to include card processing.
 
     Expand Portfolio Management Services
     Total Solutions, a wholly owned subsidiary of TSYS, continues to play a
 vital role in broadening the types of services TSYS offers its clients in the
 areas of customer service and collections.  TSYS plans to expand Total
 Solutions' service offerings to nonbanking clients such as insurance and
 mortgage companies to move from a traditional call center to a dynamic
 customer contact center offering multi-channel communication capabilities
 including full support customer care, collections, risk management and direct
 mail.
 
     Capitalize on e-Business Opportunities
     TSYS launched DotsConnect last year to focus solely on e-business
 opportunities.  Leveraging TSYS' decades of expertise in dealing with
 sensitive data, DotsConnect offers clients the most sophisticated, customer-
 friendly and secure applications for online service, account management, and
 bill presentment and payments.
 
     TSYS will host a quarterly earnings conference call at 4:15 p.m. EDT,
 April 17, 2001.  The conference call can be accessed on TSYS' web site at
 www.tsys.com by clicking on the listed item within the Highlights section of
 the home page.  The replay will be archived for 90 days and will be available
 30-45 minutes after the call.
 
     About TSYS:
     TSYS brings integrity and innovation to the world of electronic payments.
 TSYS serves as the integral link between buyers and sellers in the rapidly
 evolving universe of electronic payments.  With almost 200 million accounts on
 file, TSYS makes it possible for millions of consumers to use their credit,
 debit, stored value, commercial, chip and retail cards anytime, anywhere
 through any medium or portal.  TSYS and its family of companies offer a full
 range of acquiring and issuing services from accepting electronic payments for
 goods and services, to credit applications and collections.  Based in
 Columbus, Ga., TSYS (www.tsys.com ) processes for clients in 21 countries, in
 11 currencies, in three languages and maintains operations in Canada, Mexico,
 Japan and the United Kingdom.  TSYS is an 80.8 percent-owned subsidiary of
 Synovus Financial Corp. (NYSE:   SNV) (www.synovus.com ), No. 8 on FORTUNE
 magazine's list of "The 100 Best Companies To Work For" in 2001.  For more
 information, contact news@tsys.com .
     This press release contains statements that constitute "forward-looking
 statements" within the meaning of the Securities Act of 1933 and the
 Securities Exchange Act of 1934 as amended by the Private Securities
 Litigation Reform Act of 1995.  These forward-looking statements include,
 among others, statements regarding TSYS' expected growth in net income for the
 years 2001-2003 and the assumptions underlying such statements including TSYS'
 expected increases in revenues, increases in revenues attributable to
 international clients, operating margins, increases in net income and the
 expected increases in the number of accounts on file for 2001 and 2003.
 Prospective investors are cautioned that any such forward-looking statements
 are not guarantees of future performance and involve risks and uncertainties,
 and that actual results may differ materially from those contemplated by such
 forward-looking statements.  A number of important factors could cause actual
 results to differ materially from those contemplated by the forward-looking
 statements in this press release.  Many of these factors are beyond TSYS'
 ability to control or predict.  The factors include, but are not limited to,
 lower than anticipated internal growth rates for TSYS' existing customers,
 TSYS' inability to control expenses and increased market share, TSYS'
 inability to successfully bring new products to market, including, but not
 limited to stored value and e-commerce products, the inability of TSYS to grow
 its business through acquisitions, adverse developments with respect to
 entering into contracts with new clients and retaining current clients, the
 merger of TSYS clients with entities that are not TSYS clients, TSYS'
 inability to anticipate and respond to technological changes, particularly
 with respect to e-commerce adverse developments with respect to the successful
 conversion of clients, the absence of significant changes in foreign exchange
 spreads between the United States and the countries TSYS transacts business
 in, to include Mexico, United Kingdom, Japan, Canada and the European Union,
 adverse developments with respect to the credit card industry in general and
 overall market conditions.  Additional factors that could cause actual results
 to differ materially from those contemplated in this press release can be
 found in TSYS' filings with the Securities and Exchange Commission, including
 its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current
 reports on Form 8-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.
 
 
                                        TSYS
 
                                Financial Highlights
 
                       (In thousands, except per share data)
 
                                                   Three months ended
                                                        March 31,
                                                                    Percentage
                                                2001         2000     Change
 
     Revenues                                $154,134      145,859       5.7 %
 
     Expenses
         Employment expenses                   61,285       56,898       7.7
         Occupancy & equipment expenses        41,057       38,994       5.3
         Other expenses                        22,552       22,410       0.6
              Total operating expenses        124,894      118,302       5.6
 
     Equity in Income of Joint Ventures         3,236        2,968       9.1
 
     Operating Income                          32,476       30,525       6.4
 
     Other Income                               1,014          957       5.9
 
     Income before Income Taxes                33,490       31,482       6.4
 
     Income Taxes                              11,475       10,825       6.0
 
     Net Income                               $22,015       20,657       6.6
 
     Basic Earnings Per Share                  $0.113        0.106       6.6
 
     Diluted Earnings Per Share                $0.113        0.106       6.6
 
     Dividends Declared Per Share              $0.015        0.010       ---
 
     Average Common Shares Outstanding    194,760,194  194,821,830       ---
 
     Average Common and Common Equivalent
         Shares Outstanding               195,534,087  195,231,177       ---
 
     Other Items
     Accounts on File (in millions)             199.2        209.5      (4.9%)
 
 

SOURCE Total System Services, Inc.
    COLUMBUS, Ga., April 17 /PRNewswire/ -- TSYS(R) (NYSE:   TSS) today
 announced net income and revenues for the three months ended March 31, 2001,
 which were on target with the Company's expectations.
     Net income for the first quarter of 2001 increased 6.6% to $22.0 million,
 up from $20.7 million for the same period last year.  Basic and diluted
 earnings per share for the first quarter of 2001 were $0.11.  Revenues for the
 first three months of 2001 were $154.1 million, an increase of 5.7%, compared
 with revenues of $145.9 million for the first quarter of 2000.  Excluding
 revenues attributable to the Citigroup Universal Card Services' (UCS) consumer
 card portfolio for the first three months of 2000, pro forma revenues for the
 first quarter this year increased 14.0% compared to last year.
     Chairman and CEO Richard W. Ussery said, "We are extremely satisfied with
 the financial results for the first quarter of 2001.  The results were in line
 with our forecast, which called for mid-single digit growth rates during the
 first and second quarters, when compared to the same periods in 2000 when we
 were processing the UCS consumer card portfolio.  Our focus on expense
 controls has been critical in meeting our forecast especially in light of
 incurring new costs associated with our international expansion.  With the
 conversion of The Royal Bank of Scotland Group plc and Allied Irish Banks plc,
 we expect the growth rate in earnings in the third and fourth quarters of 2001
 to be in excess of 30%.  We anticipate achieving a 20% growth in net income
 for 2001."
     Ussery continued, "During the first quarter of 2001, we announced:
 
     *  the Company's new look, complete with a new tagline, position and
        vision.  In addition, although its legal name will remain Total System
        Services, Inc., the Company will now be known as TSYS (tee-sis).  TSYS
        began its re-branding effort in late 2000, and its new look reflects
        the Company's fresh and energetic approach to payments processing as
        the action behind the transaction.
 
     *  the unveiling of our three-year strategic plan, known as VisionWorks,
        which focuses on four initiatives: grow core business, drive
        international expansion, expand portfolio management services and
        capitalize on e-business opportunities.
 
     *  a 20% increase in the quarterly cash dividend of TSYS common stock.
        The quarterly cash dividend has been increased to $0.015 from $0.0125
        per share.
 
     *  the processing of American Express' cobranded Platinum ShopRite Credit
        Card portfolio on TS2(R), under TSYS' agreement with American Express.
 
     *  the election of Alfred W. "Bill" Jones III to serve as a member of the
        board of directors of TSYS.  Jones is chairman of the board and CEO of
        the Sea Island Company.
 
     "We look forward to another successful year in 2001 as we execute our
 three-year strategic plan."
 
     VisionWorks
     We believe that VisionWorks will enable TSYS to achieve annual increases
 in net income in the range of 20-25% for the years 2001 to 2003.
 
     VisionWorks Strategic Plan Scorecard:
 
                              1st Qtr 2001        2001E        2003E
 
     Revenues               $154.1 million   $670 million    $1 billion
     International revenue
       percentage                   9.7%           13%           20%
     Increase in net income         6.6%           20%         20-25%
     Accounts on File        199.2 million    220 million   300 million
 
     Grow Core Business
     Core business includes transaction processing for consumer credit, retail,
 commercial, debit, chip and stored value card issuers.  VisionWorks guides
 TSYS to expand its current market share positions in each of the different
 issuing markets by leveraging its competitive advantages of people, technology
 and service.
 
     *  In the consumer card processing market, TSYS expects to capitalize on
        the increasing trend toward outsourcing by emphasizing the most
        successful processing system on the market, TS2.
 
     *  As TSYS introduces its new TS2 commercial card platform, we expect to
        gain greater market share in the commercial card arena.
 
     *  TSYS plans a concerted effort to focus on the debit card market
        (currently approximately 2% of annual revenues) with the introduction
        of its debit-centric platform later this year.
 
     Drive International Expansion
     TSYS expects to derive approximately 20% of its total revenues in 2003
 from international sources.  TSYS expects to convert the portfolios of The
 Royal Bank of Scotland Group plc and Allied Irish Banks plc by the middle of
 the third quarter of 2001.  TSYS is actively pursuing other international
 clients in the anticipation of securing additional processing agreements by
 leveraging its UK operations to catapult into other European countries.
 Through its majority owned operation in Japan, TSYS plans on establishing
 itself as a premiere service provider with the goal of expanding its service
 offerings in the Asia Pacific region to include card processing.
 
     Expand Portfolio Management Services
     Total Solutions, a wholly owned subsidiary of TSYS, continues to play a
 vital role in broadening the types of services TSYS offers its clients in the
 areas of customer service and collections.  TSYS plans to expand Total
 Solutions' service offerings to nonbanking clients such as insurance and
 mortgage companies to move from a traditional call center to a dynamic
 customer contact center offering multi-channel communication capabilities
 including full support customer care, collections, risk management and direct
 mail.
 
     Capitalize on e-Business Opportunities
     TSYS launched DotsConnect last year to focus solely on e-business
 opportunities.  Leveraging TSYS' decades of expertise in dealing with
 sensitive data, DotsConnect offers clients the most sophisticated, customer-
 friendly and secure applications for online service, account management, and
 bill presentment and payments.
 
     TSYS will host a quarterly earnings conference call at 4:15 p.m. EDT,
 April 17, 2001.  The conference call can be accessed on TSYS' web site at
 www.tsys.com by clicking on the listed item within the Highlights section of
 the home page.  The replay will be archived for 90 days and will be available
 30-45 minutes after the call.
 
     About TSYS:
     TSYS brings integrity and innovation to the world of electronic payments.
 TSYS serves as the integral link between buyers and sellers in the rapidly
 evolving universe of electronic payments.  With almost 200 million accounts on
 file, TSYS makes it possible for millions of consumers to use their credit,
 debit, stored value, commercial, chip and retail cards anytime, anywhere
 through any medium or portal.  TSYS and its family of companies offer a full
 range of acquiring and issuing services from accepting electronic payments for
 goods and services, to credit applications and collections.  Based in
 Columbus, Ga., TSYS (www.tsys.com ) processes for clients in 21 countries, in
 11 currencies, in three languages and maintains operations in Canada, Mexico,
 Japan and the United Kingdom.  TSYS is an 80.8 percent-owned subsidiary of
 Synovus Financial Corp. (NYSE:   SNV) (www.synovus.com ), No. 8 on FORTUNE
 magazine's list of "The 100 Best Companies To Work For" in 2001.  For more
 information, contact news@tsys.com .
     This press release contains statements that constitute "forward-looking
 statements" within the meaning of the Securities Act of 1933 and the
 Securities Exchange Act of 1934 as amended by the Private Securities
 Litigation Reform Act of 1995.  These forward-looking statements include,
 among others, statements regarding TSYS' expected growth in net income for the
 years 2001-2003 and the assumptions underlying such statements including TSYS'
 expected increases in revenues, increases in revenues attributable to
 international clients, operating margins, increases in net income and the
 expected increases in the number of accounts on file for 2001 and 2003.
 Prospective investors are cautioned that any such forward-looking statements
 are not guarantees of future performance and involve risks and uncertainties,
 and that actual results may differ materially from those contemplated by such
 forward-looking statements.  A number of important factors could cause actual
 results to differ materially from those contemplated by the forward-looking
 statements in this press release.  Many of these factors are beyond TSYS'
 ability to control or predict.  The factors include, but are not limited to,
 lower than anticipated internal growth rates for TSYS' existing customers,
 TSYS' inability to control expenses and increased market share, TSYS'
 inability to successfully bring new products to market, including, but not
 limited to stored value and e-commerce products, the inability of TSYS to grow
 its business through acquisitions, adverse developments with respect to
 entering into contracts with new clients and retaining current clients, the
 merger of TSYS clients with entities that are not TSYS clients, TSYS'
 inability to anticipate and respond to technological changes, particularly
 with respect to e-commerce adverse developments with respect to the successful
 conversion of clients, the absence of significant changes in foreign exchange
 spreads between the United States and the countries TSYS transacts business
 in, to include Mexico, United Kingdom, Japan, Canada and the European Union,
 adverse developments with respect to the credit card industry in general and
 overall market conditions.  Additional factors that could cause actual results
 to differ materially from those contemplated in this press release can be
 found in TSYS' filings with the Securities and Exchange Commission, including
 its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current
 reports on Form 8-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.
 
 
                                        TSYS
 
                                Financial Highlights
 
                       (In thousands, except per share data)
 
                                                   Three months ended
                                                        March 31,
                                                                    Percentage
                                                2001         2000     Change
 
     Revenues                                $154,134      145,859       5.7 %
 
     Expenses
         Employment expenses                   61,285       56,898       7.7
         Occupancy & equipment expenses        41,057       38,994       5.3
         Other expenses                        22,552       22,410       0.6
              Total operating expenses        124,894      118,302       5.6
 
     Equity in Income of Joint Ventures         3,236        2,968       9.1
 
     Operating Income                          32,476       30,525       6.4
 
     Other Income                               1,014          957       5.9
 
     Income before Income Taxes                33,490       31,482       6.4
 
     Income Taxes                              11,475       10,825       6.0
 
     Net Income                               $22,015       20,657       6.6
 
     Basic Earnings Per Share                  $0.113        0.106       6.6
 
     Diluted Earnings Per Share                $0.113        0.106       6.6
 
     Dividends Declared Per Share              $0.015        0.010       ---
 
     Average Common Shares Outstanding    194,760,194  194,821,830       ---
 
     Average Common and Common Equivalent
         Shares Outstanding               195,534,087  195,231,177       ---
 
     Other Items
     Accounts on File (in millions)             199.2        209.5      (4.9%)
 
 SOURCE  Total System Services, Inc.