TSYS (NYSE: TSS) today reported results for the first quarter with basic earnings per share (EPS), excluding expenses in connection with the pending acquisition of NetSpend Holdings, Inc. (NetSpend), of $0.33, an increase of 11.5% over 2012.
Basic EPS on a GAAP basis was $0.31, an increase of 2.2% over 2012. Diluted EPS was $0.30, an increase of 1.7% over 2012. Revenues before reimbursable items for the quarter were $404.2 million, an increase of 2.3% over 2012. Total revenues were $465.0 million, an increase of 0.8% as compared to 2012. Total revenues were impacted by a decrease of $5.2 million in reimbursable items for the quarter.
"Our issuer processing business had strong same client transaction growth of 8.7% in the quarter. Excluding deconverted clients in the indirect merchant business, point-of-sale transactions increased 6.6% and sales volume in the direct merchant business was up 15.5%, including acquisitions. Also contributing to our strong results was our consolidated internal revenue growth of 3.9%, excluding the Bank of America Merchant Services de-conversion, combined with acquisitions in the acquiring space, which added 4.4% to our growth in revenues before reimbursable items," said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
We recognized the financial results associated with our acquisition of ProPay, Inc., during the quarter and we look forward to benefiting from the new sales channels they provide in our merchant segment. Merger and acquisition expenses associated with the pending acquisition of NetSpend were $6.2 million in the quarter,‖ said Tomlinson.