TSYS Earnings: Q4 Caps Off 2016 With $74M Profit

On Tuesday (Jan. 24), TSYS reported results for the fourth quarter and full year of 2016.

With a reported net income of $74 million in the October-December quarter, or $0.40 per diluted share, TSYS Chairman and Chief Executive Officer M. Troy Woods commented that the earnings results capped off what he considered an “exceptional year” for the company.

The company’s revenues in Q4 totaled $1.1 billion, an increase of 57.9 percent compared to 2015’s $716.8 million.

According to AP, as reported on by Yahoo Finance, the earnings results surpassed Wall Street expectations. Zacks Investment Research surveyed 10 analysts, whose average estimate for earnings was $0.70 per share.

Once adjusted for amortization costs and non-recurring costs, Q4 earnings came to $0.71 per share.

“We delivered record financial results, completed our largest acquisition in TransFirst that doubled the size of our merchant business and finished the year with results in all four segments having met or exceeded our goals,” Woods said in a statement.

The $74 million in net income in its fourth quarter was actually a 9.2 percent decrease from $81.4 million posted in Q4 2015.

However, adjusted earnings jumped almost 25 percent, increasing from $103.9 million in the fourth quarter a year ago to $129.6 million in Q4 2016. Adjusted before interest, taxes, depreciation and amortization (EBITDA) posted at $266.5 million, a 36.7 percent from the quarter the year prior.

In its full year 2016 earnings, TSYS reported total revenues of $4.2 billion, a 50 percent increase over last year’s $2.8 billion, fueled by the cash flow contributions of TransFirst. Total net income for the year came in at nearly $320 million, a 11.9 percent drop from $362.6 million in 2015.

“We expect the momentum of 2016 to continue in 2017. We are projecting strong organic revenue growth and double-digit earnings growth as we remain laser-focused on executing our strategic plans and delivering outstanding results,” Woods added.

The company is looking for full-year earnings in 2017 to fall within the range of $3.05–$3.15 per share, with revenue in the range of $4.75 billion–$4.85 billion.

Since the start of 2017, TSYS shares have increased by 8.5 percent. In the final minutes of trading on Tuesday, AP confirmed the company’s shares hit $53.19, an 18 percent growth in the last 12 months.