Price | 126.74 | EPS | 3 | |
Shares | 177 | P/E | 47 | |
MCap | 22,430 | P/FCF | 33 | |
Net Debt | 3,560 | EBIT | 579 | |
TEV | 25,990 | TEV/EBIT | 45 | TTM 2019-06-30, in MM, except price, ratios |
10-Q | 2019-06-30 | Filed 2019-07-31 |
10-Q | 2019-03-31 | Filed 2019-05-01 |
10-K | 2018-12-31 | Filed 2019-02-21 |
10-Q | 2018-09-30 | Filed 2018-11-06 |
10-Q | 2018-06-30 | Filed 2018-08-07 |
10-Q | 2018-03-31 | Filed 2018-05-08 |
10-K | 2017-12-31 | Filed 2018-02-23 |
10-Q | 2017-09-30 | Filed 2017-11-07 |
10-Q | 2017-06-30 | Filed 2017-08-07 |
10-Q | 2017-03-31 | Filed 2017-05-04 |
10-K | 2016-12-31 | Filed 2017-02-24 |
10-Q | 2016-09-30 | Filed 2016-11-04 |
10-Q | 2016-06-30 | Filed 2016-08-05 |
10-Q | 2016-03-31 | Filed 2016-05-05 |
10-K | 2015-12-31 | Filed 2016-02-25 |
10-Q | 2015-09-30 | Filed 2015-11-05 |
10-Q | 2015-06-30 | Filed 2015-08-06 |
10-Q | 2015-03-31 | Filed 2015-05-07 |
10-K | 2014-12-31 | Filed 2015-02-26 |
10-Q | 2014-09-30 | Filed 2014-11-06 |
10-Q | 2014-06-30 | Filed 2014-08-07 |
10-Q | 2014-03-31 | Filed 2014-05-08 |
10-K | 2013-12-31 | Filed 2014-02-25 |
10-Q | 2013-09-30 | Filed 2013-11-06 |
10-Q | 2013-06-30 | Filed 2013-08-08 |
10-Q | 2013-03-31 | Filed 2013-05-08 |
10-K | 2012-12-31 | Filed 2013-02-26 |
10-Q | 2012-09-30 | Filed 2012-11-05 |
10-Q | 2012-06-30 | Filed 2012-08-06 |
10-Q | 2012-03-31 | Filed 2012-05-07 |
10-K | 2011-12-31 | Filed 2012-02-24 |
10-Q | 2011-09-30 | Filed 2011-11-04 |
10-Q | 2011-06-30 | Filed 2011-08-05 |
10-Q | 2011-03-31 | Filed 2011-05-06 |
10-Q | 2010-09-30 | Filed 2010-11-04 |
10-Q | 2010-06-30 | Filed 2010-08-09 |
10-Q | 2010-03-31 | Filed 2010-05-07 |
10-K | 2009-12-31 | Filed 2010-03-01 |
8-K | 2019-09-17 | |
8-K | 2019-08-29 | |
8-K | 2019-08-29 | |
8-K | 2019-08-20 | |
8-K | 2019-07-31 | |
8-K | 2019-05-27 | |
8-K | 2019-05-27 | |
8-K | 2019-05-02 | |
8-K | 2019-04-23 | |
8-K | 2019-01-31 | |
8-K | 2019-01-29 | |
8-K | 2018-10-23 | |
8-K | 2018-10-22 | |
8-K | 2018-07-24 | |
8-K | 2018-06-20 | |
8-K | 2018-05-11 | |
8-K | 2018-04-26 | |
8-K | 2018-04-24 | |
8-K | 2018-04-23 | |
8-K | 2018-01-23 | |
8-K | 2018-01-10 |
Part I - Financial Information |
Item 1. Financial Statements. |
Note 1 - Summary of Significant Accounting Policies |
Note 2 - Supplementary Balance Sheet Information |
Note 3 - Revenue From Contracts with Customers |
Note 4 - Leases |
Note 5 - Long - Term Borrowings and License Agreements |
Note 6 - Commitments and Contingencies |
Note 7 - Share - Based Compensation |
Note 8 - Income Taxes |
Note 9 - Earnings per Share |
Note 10 - Supplementary Cash Flow Information |
Note 11 - Segment Reporting and Major Customers |
Note 12 - Subsequent Events |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. Controls and Procedures. |
Part II - Other Information |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 6. Exhibits. |
EX-10.1 | tss-20190630ex101d544a8.htm |
EX-10.2 | tss-20190630ex1022005e0.htm |
EX-31.1 | tss-20190630ex311695d76.htm |
EX-31.2 | tss-20190630ex312a3400d.htm |
EX-32 | tss-20190630xex32.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended | |
OR | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from To |
Commission file number:
www.tsys.com
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
One TSYS Way,
(Address of principal executive offices) (Zip Code)
(
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Accelerated Filer ◻ | Non-accelerated Filer ◻ | ||
Smaller reporting company | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of June 30, 2019, there were
TOTAL SYSTEM SERVICES, INC.
Table of Contents
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
TOTAL SYSTEM SERVICES, INC.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except per share data) |
| June 30, 2019 |
| December 31, 2018 | |
Assets | |||||
Current assets: | |||||
Cash and cash equivalents (Note 2) | $ | | | ||
Accounts receivable, net of allowances for doubtful accounts and billing adjustments of $ | | | |||
Contract assets (Note 3) | | | |||
Prepaid expenses and other current assets (Note 2) | | | |||
Total current assets | | | |||
Contract assets (Note 3) | | | |||
Goodwill | | | |||
Other intangible assets, net of accumulated amortization of $ | | | |||
Intangible assets - computer software, net of accumulated amortization of $ | | | |||
Property and equipment, net of accumulated depreciation and amortization of $ | | | |||
Operating lease right-of-use assets, net (Note 4) | | - | |||
Contract cost assets, net of accumulated amortization | | | |||
Equity investments, net | | | |||
Deferred income tax assets | | | |||
Other assets | | | |||
Total assets | $ | | | ||
Liabilities | |||||
Current liabilities: | |||||
Accounts payable | $ | | | ||
Contract liabilities (Note 3) | | | |||
Current portion of operating lease liabilities (Note 4) | | - | |||
Accrued salaries and employee benefits | | | |||
Current portion of long-term borrowings (Note 5) | | | |||
Current portion of obligations under finance leases and license agreements (Note 4) | | | |||
Other current liabilities (Note 2) | | | |||
Total current liabilities | | | |||
Long-term borrowings, excluding current portion (Note 5) | | | |||
Deferred income tax liabilities | | | |||
Operating lease liabilities, excluding current portion (Note 4) | | - | |||
Obligations under finance leases and license agreements, excluding current portion (Note 4) | | | |||
Contract liabilities (Note 3) | | | |||
Other long-term liabilities | | | |||
Total liabilities | | | |||
Commitments and contingencies (Note 6) | |||||
Shareholders' Equity | |||||
Shareholders’ equity: | |||||
Common stock- $ | | | |||
Additional paid-in capital | | | |||
Accumulated other comprehensive loss, net (Notes 1 and 2) | ( | ( | |||
Treasury stock, at cost ( | ( | ( | |||
Retained earnings | | | |||
Total shareholders’ equity | | | |||
Total liabilities and shareholders' equity | $ | | |
See accompanying Notes to Unaudited Consolidated Financial Statements
3
TOTAL SYSTEM SERVICES, INC.
Consolidated Statements of Income
(Unaudited)
|
| Three months ended | Six months ended | ||||||||
June 30, | June 30, | ||||||||||
(in thousands, except per share data) |
| 2019 |
| 2018 |
| 2019 |
| 2018 | |||
Total revenues (Notes 3 and 11) | $ | | | | | ||||||
Cost of services | | | | | |||||||
Selling, general and administrative expenses | | | | | |||||||
Total operating expenses | | | | | |||||||
Operating income | | | | | |||||||
Nonoperating expenses, net | ( | ( | ( | ( | |||||||
Income before income taxes and equity in income of equity investments | | | | | |||||||
Income taxes (Note 8) | | | | | |||||||
Income before equity in income of equity investments | | | | | |||||||
Equity in income of equity investments, net of tax | | | | | |||||||
Net income | | | | | |||||||
Net income attributable to noncontrolling interests | - | - | - | ( | |||||||
Net income attributable to Total System Services, Inc. (TSYS) common shareholders | $ | | | | | ||||||
Basic earnings per share (EPS) attributable to TSYS common shareholders (Note 9) | $ | | | | | ||||||
Diluted EPS attributable to TSYS common shareholders (Note 9) | $ | | | | |
See accompanying Notes to Unaudited Consolidated Financial Statements
4
TOTAL SYSTEM SERVICES, INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
| Three months ended | Six months ended | ||||||||
June 30, | June 30, | |||||||||
(in thousands) | 2019 |
| 2018 |
| 2019 |
| 2018 | |||
Net income | $ | | | | | |||||
Other comprehensive income (loss), net of tax: | ||||||||||
Foreign currency translation adjustments | ( | ( | | ( | ||||||
Postretirement healthcare plan adjustments | | ( | | ( | ||||||
Unrealized (loss) gain on available-for-sale securities (Note 1) | - | ( | - | | ||||||
Other comprehensive (loss) income | ( | ( | | ( | ||||||
Comprehensive income | | | | | ||||||
Comprehensive income attributable to noncontrolling interests | - | - | - | ( | ||||||
Comprehensive income attributable to TSYS common shareholders | $ | | | | |
See accompanying Notes to Unaudited Consolidated Financial Statements
5
TOTAL SYSTEM SERVICES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended | |||||
June 30, | |||||
(in thousands) |
| 2019 |
| 2018 | |
Cash flows from operating activities: | |||||
Net income | $ | | | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | | | |||
Amortization of operating lease right-of-use assets | | - | |||
Provisions for cardholder losses | | | |||
Share-based compensation | | | |||
Provisions for bad debt expenses and billing adjustments | | | |||
Charges for transaction processing provisions | | | |||
Amortization of debt issuance costs | | | |||
Dividends received from equity investments | - | | |||
Loss (gain) on foreign currency | | ( | |||
Amortization of bond discount | | | |||
(Gain) loss on disposal of equipment, net | ( | | |||
Deferred income tax expense | | | |||
Changes in value of equity investments | ( | - | |||
Equity in income of equity investments, net of tax | ( | ( | |||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||
Accounts receivable | ( | ( | |||
Contract assets and contract liabilities | ( | ( | |||
Contract cost assets | ( | | |||
Prepaid expenses, other current assets and other long-term assets | ( | | |||
Accounts payable | ( | ( | |||
Accrued salaries and employee benefits | ( | ( | |||
Other current liabilities and other long-term liabilities | ( | ( | |||
Net cash provided by operating activities | | | |||
Cash flows from investing activities: | |||||
Additions to licensed computer software from vendors | ( | ( | |||
Purchases of property and equipment | ( | ( | |||
Additions to internally developed computer software | ( | ( | |||
Cash used in acquisitions, net of cash acquired | - | ( | |||
Other investing activities | ( | ( | |||
Net cash used in investing activities | ( | ( | |||
Cash flows from financing activities: | |||||
Principal payments on long-term borrowings, finance lease obligations and license agreements | ( | ( | |||
Purchase of noncontrolling interest | - | ( | |||
Dividends paid on common stock | ( | ( | |||
Subsidiary dividends paid to noncontrolling shareholders | - | ( | |||
Repurchase of common stock under plans and tax withholding | ( | ( | |||
Debt issuance costs | - | ( | |||
Proceeds from borrowings of long-term debt | | | |||
Proceeds from exercise of stock options | | | |||
Net cash (used in) provided by financing activities | ( | | |||
Cash, cash equivalents and restricted cash: | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | | |||
Cash, cash equivalents and restricted cash at beginning of period | | | |||
Cash, cash equivalents and restricted cash at end of period | $ | | | ||
Supplemental cash flow information: | |||||
Interest paid | $ | | | ||
Income taxes paid, net | $ | | | ||
See accompanying Notes to Unaudited Consolidated Financial Statements |
6
TOTAL SYSTEM SERVICES, INC.
Consolidated Statements of Changes in Equity
(Unaudited)
TSYS Shareholders | |||||||||||||||||||
Accumulated | |||||||||||||||||||
Other | |||||||||||||||||||
Redeemable | Additional | Comprehensive | |||||||||||||||||
Noncontrolling | Common Stock | Paid-In | Income (Loss), | Treasury | Retained | ||||||||||||||
(in thousands, except per share data) |
| Interests |
| Shares |
| Dollars |
| Capital |
| Net of Tax |
| Stock |
| Earnings |
| Total Equity | |||
Balance as of December 31, 2018 | $ | - | | $ | | | ( | ( | | $ | | ||||||||
Cumulative effect adjustment from adoption of ASU No. 2016-01 (Note 1) | - | - | - | - | ( | - | | - | |||||||||||
Cumulative effect adjustment from adoption of ASU No. 2016-02 (Note 1) | - | - | - | - | - | - | ( | ( | |||||||||||
Net income | - | - | - | - | - | - | | | |||||||||||
Other comprehensive income | - | - | - | - | | - | - | | |||||||||||
Common stock issued from treasury shares for exercise of stock options | - | - | - | | - | | - | | |||||||||||
Common stock unissued due to forfeiture of nonvested awards | - | - | - | | - | ( | - | - | |||||||||||
Common stock issued from treasury shares for nonvested awards | - | - | - | ( | - | | - | - | |||||||||||
Share-based compensation (Note 7) | - | - | - | | - | - | - | | |||||||||||
Cash dividends declared ($0.13 per share) | - | - | - | - | - | - | ( | ( | |||||||||||
Purchase of treasury shares | - | - | - | - | - | ( | - | ( | |||||||||||
Balance as of March 31, 2019 | - | | | | ( | ( | | | |||||||||||
Net income | - | - | - | - | - | - | | | |||||||||||
Other comprehensive loss | - | - | - | - | ( | - | - | ( | |||||||||||
Common stock issued from treasury shares for exercise of stock options | - | - | - | | - | | - | | |||||||||||
Common stock issued from treasury shares for nonvested awards | - | - | - | ( | - | | - | - | |||||||||||
Common stock issued from treasury shares for dividend equivalents | - | - | - | | - | - | - | | |||||||||||
Share-based compensation (Note 7) | - | - | - | | - | - | - | | |||||||||||
Cash dividends declared ($0.13 per share) | - | - | - | - | - | - | ( | ( | |||||||||||
Purchase of treasury shares | - | - | - | - | - | ( | - | ( | |||||||||||
Balance as of June 30, 2019 | $ | - | | $ | | | ( | ( | | $ | |
See accompanying Notes to Unaudited Consolidated Financial Statements
7
TOTAL SYSTEM SERVICES, INC.
Consolidated Statements of Changes in Equity
(Unaudited)
TSYS Shareholders | |||||||||||||||||||
Accumulated | |||||||||||||||||||
Other | |||||||||||||||||||
Redeemable | Additional | Comprehensive | |||||||||||||||||
Noncontrolling | Common Stock | Paid-In | Income (Loss), | Treasury | Retained | ||||||||||||||
(in thousands, except per share data) |
| Interests |
| Shares |
| Dollars |
| Capital |
| Net of Tax |
| Stock |
| Earnings |
| Total Equity | |||
Balance as of December 31, 2017 | $ | | | $ | | | ( | ( | | $ | | ||||||||
Cumulative effect adjustment from adoption of ASU No. 2014-09 (Note 3) | - | - | - | - | - | - | ( | ( | |||||||||||
Net income | | - | - | - | - | - | | | |||||||||||
Other comprehensive income | - | - | - | - | | - | - | | |||||||||||
Common stock issued from treasury shares for exercise of stock options | - | - | - | | - | | - | | |||||||||||
Common stock unissued due to forfeiture of nonvested awards | - | - | - | | - | ( | - | - | |||||||||||
Common stock issued from treasury shares for nonvested awards | - | - | - | ( | - | | - | - | |||||||||||
Common stock issued from treasury shares for dividend equivalents | - | - | - | | - | | - | | |||||||||||
Share-based compensation (Note 7) | - | - | - | | - | - | - | | |||||||||||
Cash dividends declared ($0.13 per share) | - | - | - | - | - | - | ( | ( | |||||||||||
Purchase of treasury shares | - | - | - | - | - | ( | - | ( | |||||||||||
Adjustments to redemption value of redeemable noncontrolling interest | | - | - | ( | - | - | - | ( | |||||||||||
Subsidiary dividends paid to noncontrolling interests | ( | - | - | - | - | - | - | - | |||||||||||
Balance as of March 31, 2018 | | | | | ( | ( | | | |||||||||||
Net income | - | - | - | - | - | - | | | |||||||||||
Other comprehensive loss | - | - | - | - | ( | - | - | ( | |||||||||||
Common stock issued from treasury shares for exercise of stock options | - | - | - | | - | | - | | |||||||||||
Common stock unissued due to forfeiture of nonvested awards | - | - | - | | - | ( | - | - | |||||||||||
Common stock issued from treasury shares for nonvested awards | - | - | - | ( | - | | - | - | |||||||||||
Share-based compensation (Note 7) | - | - | - | | - | - | - | | |||||||||||
Cash dividends declared ($0.13 per share) | - | - | - | - | - | - | ( |