Tsys today reported results for the third quarter of 2013, which includes the operating results of our NetSpend acquisition that closed on July 1, 2013.
Summary of Third Quarter 2013 Financial Results Compared to 2012
- Total revenues were $588.1 million, an increase of 25.6%. Total revenues were impacted by a negative currency translation of $6.4 million.
- Revenues before reimbursable items were $527.0 million, an increase of 29.8%. Revenues before reimbursable items were impacted by a negative currency translation of $6.3 million.
- Adjusted EBITDA* was $182.1 million, an increase of 32.1%.
- Adjusted cash earnings per share (EPS)* were $0.49, an increase of 37.0%. On a GAAP basis, net income attributable to common shareholders was $64.4 million, an increase of 6.7%.
- Basic EPS was $0.34, an increase of 5.8%. Diluted EPS was $0.34, an increase of 5.5%.
* Note: Adjusted EBITDA and adjusted cash EPS are non-GAAP measures which are detailed later in this press release in the section "Reconciliation of GAAP to Non-GAAP Financial Measures."
"This is the first quarter that NetSpend has been included in our consolidated financial statements and as our fourth operating segment. Their results were outstanding as revenues grew 22.2% over last year making a significant contribution to our overall results this quarter," said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
"Our free cash flow continues to be very strong. We applied over $60 million to reduce our debt as we move toward our goal of reducing our debt to EBITDA ratio. We will continue using cash to reduce debt over the next several quarters in anticipation of future acquisitions and share buybacks. Our balance sheet has grown to $3.8 billion as we continue our strategy of deploying capital to grow TSYS and maximize shareholder return," said Tomlinson.
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