TSYS® Will Attain 2000 Earnings Target
Expects to Achieve 25% Earnings Growth in 2000, Anticipates Strong Growth for 2001- 2003
Columbus, Ga., December 26, 2000 -- Total System Services, Inc.® (TSYS®) (NYSE: "TSS") today announced that in light of technology stocks not meeting profitability expectations, it anticipates to achieve its net income target for 2000 in line with previous guidance provided by the company in July 2000. Net income for the 12 months of 2000 should increase approximately 25% compared to the same period last year. Earnings per share are expected to be $.44 up from $.35 in 1999.
Chief Financial Officer James B. Lipham said, "We are extremely pleased with the financial results for 2000. We began the year anticipating a net income increase of 20% over 1999. With a continued emphasis on expense control and above average internal growth of our clients, we will be able to deliver a solid 25% increase. We anticipate the strong growth in earnings to continue for the years 2001 to 2003."
Lipham continued, "In accordance with our strategic plans to expand our international reach for 2001 to 2003, we announced the signing of Allied Irish Banks, plc to a 5-year processing agreement for its 500,000 retail and commercial card accounts. This signing and the signing of The Royal Bank of Scotland Group plc will give TSYS approximately 20-25% of the combined Visa and Europay credit transaction processing markets of Ireland and United Kingdom.
TSYS also announced the signing of Target Stores to a multiyear agreement to process the retailer's new consumer Visa Card. TSYS also took steps to achieve its strategic plan with the unveiling of our newly designed platform for online and offline debit, stored value and electronic benefits transfer.
About Total System Services, Inc.
TSYS provides global commerce solutions. With more than 193 million accounts on file, TSYS facilitates the payment exchange between buyers and sellers. TSYS and its family of companies offer a full range of acquiring and issuing business services from accepting electronic payments for goods and services to credit applications and collections for credit, debit, commercial, stored value, retail and chip accounts. TSYS has offices in the United States, Europe, Mexico, Canada and Japan, and processes in 21 countries and 11 currencies. Based in Columbus, Ga., TSYS (NYSE: "TSS") (www.totalsystem.com) is an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: "SNV") (www.synovus.com), No. 5 on FORTUNE magazine’s list of "The 100 Best Companies To Work For" in 2000. For more information, contact news@totalsystem.com.
Contacts:
James B. Lipham
Chief Financial Officer
ph. (706) 649-2262
Leo Berard
Manager of Investor Relations
ph. (706) 649-5220
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief or current expectations of TSYS and members of its senior management team with respect to the percentage increases in earnings of TSYS expected for the years 2000 and 2001, as well as the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release include, but are not limited to, lower than anticipated internal growth rates for TSYS' existing customers, TSYS' inability to control expenses associated with the growth in its number of employees, TSYS’ inability to successfully bring new products to market, the inability of TSYS to grow its business through acquisitions, adverse developments with respect to entering into contracts with new clients and retaining current clients ,the merger of TSYS clients with entities that are not TSYS clients ,TSYS’ inability to anticipate and respond to technological changes, particularly with respect to e-commerce adverse developments with respect to the successful conversion of clients ,the absence of significant changes in foreign exchange spreads between the United States and the countries TSYS transacts business in, to include Mexico, United Kingdom, Japan, Canada and the European Union, adverse developments with respect to the credit card industry in general and overall market conditions. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in TSYS' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.