NetSpend 2013 Annual Report Download - page 17

A summary of the consolidated financial highlights for the years ended December 31, 2013, 2012 and 2011 is
provided below:
Years Ended December 31, Percent Change
(in millions) 2013 2012 2011 2013 vs. 2012 2012 vs. 2011
Total revenues ............................. $2,132.4 $1,871.0 1,809.0 14.0% 3.4%
Operating income .......................... 386.2 357.7 322.5 8.0 10.9
Net income attributable to TSYS common
shareholders ............................. 244.8 244.3 220.6 0.2 10.7
Basic earnings per share (EPS)1................ 1.30 1.30 1.15 0.0 13.0
Diluted EPS ................................ 1.29 1.29 1.15 (0.2) 12.2
Adjusted earnings before interest, taxes,
depreciation, and amortization (Adjusted
EBITDA)2................................ 634.2 546.9 508.1 16.0 7.6
Adjusted cash EPS3......................... 1.72 1.46 1.29 17.8 12.9
Cash flows from operating activities ............ 452.4 455.8 436.3 (0.7) 4.5
1 Basic and diluted EPS is computed based on the two-class method in accordance with the guidance under ASC 260
“Earnings Per Share”. Refer to Note 25 in the consolidated financial statements for more information on EPS.
2 Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), income
taxes, depreciation, amortization and stock-based compensation expenses and other non-recurring items.
3 Adjusted cash EPS is adjusted cash earnings divided by weighted average shares outstanding used for basic EPS
calculations. Adjusted cash earnings is net income excluding the after-tax impact of stock-based compensation expenses,
amortization of acquisition intangibles and other nonrecurring items.
Total revenues increased 14.0%, or $261.4 million, for the year ended December 31, 2013, compared to the year
ended December 31, 2012, which increased 3.4%, or $62.0 million, compared to the year ended December 31,
2011. The increases in revenues for 2013 and 2012 include decreases of $20.3 million and $6.0 million,
respectively, related to the effects of currency translation of the Company’s foreign-based subsidiaries and
branches.
Excluding reimbursable items, revenues increased 16.9%, or $273.3 million, for the year ended December 31,
2013, compared to the year ended December 31, 2012, which increased 5.0%, or $77.8 million, compared to the
year ended December 31, 2011. The Company expanded its product and service offerings through acquisitions
during 2013, 2012, and 2011. The impact of these acquisitions for the years ended December 31, 2013, 2012,
and 2011 was $270.2 million, $27.1 million, and $42.4 million, respectively.
Below is a summary of AOF for the Company’s North America Services and International Services segments:
(in millions) As of December 31,
2013 2012 Percent Change
Consumer Credit ........................................................... 229.0 200.5 14.2%
Retail ..................................................................... 27.8 25.0 11.0
Total Consumer .......................................................... 256.8 225.5 13.9
Commercial ............................................................... 39.9 37.1 7.6
Other ..................................................................... 18.9 12.8 47.6
Subtotal1................................................................ 315.6 275.4 14.6
Prepaid/Stored Value2....................................................... 118.0 115.9 1.8
Government Services3....................................................... 62.2 57.0 9.2
Commercial Card Single Use4................................................. 45.3 31.1 45.4
Total AOF ................................................................. 541.1 479.4 12.9%
1 Traditional accounts include consumer, retail, commercial, debit and other accounts. These accounts are grouped together
due to the tendency to have more transactional activity than prepaid, government services and single use accounts.
2 These accounts tend to have less transactional activity than the traditional accounts. Prepaid and stored value cards are
issued by firms through retail establishments to be purchased by consumers to be used at a later date. These accounts
tend to be the least active of all accounts on file.
3 Government services accounts are disbursements of student loan accounts issued by the Department of Education, which
have minimal activity.
4 Commercial card single use accounts are one-time use accounts issued by firms to book lodging and other travel related
expenses.
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