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Thursday January 9 8:37 AM EDT
TSYS Reports 49% Increase in Net Income for 4th
Quarter 1996 Experiences Exceptional Year by Exceeding
Analysts' Estimates
COLUMBUS, Ga., Jan. 9 /PRNewswire/ -- Today, Total System Services Inc (TSYS), announced
record revenues and net income for the fourth quarter and year ended December 31, 1996.
Net income for the fourth quarter increased 49.0% to $14.2 million, or $.11 per share, up from $9.5
million, or $.07 per share, for the same period last year. Revenues for the fourth quarter of 1996
were $85.9 million, an increase of 20.8%, compared with revenues of $71.1 million for the fourth
quarter of 1995.
Net income for 1996 increased 42.2% to $39.4 million, or $.31 per share, up from $27.7 million, or
$.21 per share, for 1995. Revenues for 1996 were $311.6 million, an increase of 24.8%, compared
with revenues of $249.7 million for 1995.
Chairman of the Board and Chief Executive Officer Richard W. Ussery said, "Nineteen ninety-six
was a year of exceeding expectations -- both those set by our management team and those set by
industry analysts. Corporately, we met all of our strategic goals, resulting in superior value for our
shareholders and positive productivity in the third and fourth quarters for our company. In addition,
we exceeded analysts' estimates by more than 10%, making this one of the biggest growth years
we've enjoyed since our inception in 1983."
Ussery continued, "We had significant growth in cardholder accounts on file, both from existing
customers and from new client conversions to our cardholder systems, increasing our account base
from 63.3 million at year-end 1995 to more than 80 million at year-end 1996. Throughout 1997, we
will convert customers to TS2 and our original cardholder system; deliver new products and services
to help our customers maintain their competitive edge; maintain positive productivity levels; provide
high quality service in our core business; and develop innovative solutions through our joint ventures,
Vital Processing Services and TSYS de Mexico. We anticipate 1997 to be another excellent year."
Headquartered in Columbus, Ga., TSYS is one of the world's largest credit, debit, commercial and
private-label card processing companies, serving card issuing institutions located throughout the
United States, Puerto Rico, Canada and Mexico, representing more than 80 million cardholder
accounts. TSYS provides a comprehensive on-line system of data processing services marketed as
THE TOTAL SYSTEMS(TM). In 1996, TSYS formed a joint venture with Visa(R) U.S.A. to
create Vital Processing Services(SM), L.L.C., a leading full-service merchant services provider.
TSYS' 1996 revenues totaled $311.6 million; the company is an 80.8 percent owned subsidiary of
Synovus Financial Corp , an $8.3 billion asset, multi-financial services company that also includes 34
affiliates in four Southeastern states, a full-service brokerage firm, a comprehensive trust services
provider and a mortgage services company. Synovus' Internet address is snv.com.
Total System Services, Inc.
Financial Highlights
(In thousands, except per share data)
Fourth Quarter ended
December 31,
Percentage
1996 1995# Change
Revenues $85,878 71,086 20.8%
Expenses 66,440 56,695 17.2
Equity in Income of
Joint Ventures 2,057 404 nm
Operating Income 21,495 14,795 45.3
Other Income 471 124 280.0
Income before
Income Taxes 21,966 14,919 47.2
Income Taxes 7,745 5,376 44.1
Net Income $14,221 9,543 49.0
Net Income
Per Share $ 0.11 0.07 49.1%
Average Shares
Outstanding 129,289,680 129,265,118
Year ended
December 31,
Percentage
1996 1995# Change
Revenues $311,648 249,708 24.8%
Expenses 259,745 206,786 25.6
Equity in Income of
Joint Ventures 7,094 69 nm
Operating Income 58,997 42,991 37.2
Other Income 1,447 716 101.9
Income before
Income Taxes 60,444 43,707 38.3
Income Taxes 21,007 15,977 31.5
Net Income $ 39,437 27,730 42.2
Net Income
Per Share $ 0.31 0.21 42.2%
Average Shares
Outstanding 129,287,493 129,263,226
nm - Not meaningful
*NOTE: Effective May 1, 1996, merchant revenues and expenses were transferred to Vital
Processing Services and are now reflected in Equity in Income of Joint Ventures.
# Certain amounts have been reclassified to conform with 1996 presentation. SOURCE Total
Systems Services, Inc.
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