NetSpend 2014 Annual Report Download - page 5

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We’ve entered a world where payments blend into
the background without friction. In this new world,
consumers rule the day
—
and the status quo is not
sufficient. Amidst all this change, we differentiate
ourselves in the market through our brand promise
of People-Centered Payments. Every process,
product, new technology or acquisition we make
delivers on this higher purpose: to improve lives
and businesses while putting people at the center
of payments.
However, People-Centered Payments isn’t just a brand
promise
—
it is the guiding principle of the growth
strategy for our company. By putting people at the
center of every decision we make, we can offer
innovative products and solutions that are most
sought-after by our clients and their customers.
2014 was a year full of opportunity to deliver on
this promise to financial institutions, businesses and
consumers. But before we get into that, we’d like to
share our thoughts and reflections on the year’s
financial results as a whole.
2014 Results
This was a year of tremendous growth, and our
performance was strong. We truly believe this is a
result of our core business strength, robust organic
growth, a steady stream of new clients and an overall
healthy economy for card usage.
• Revenue and Income: Total revenues were $2.4
billion, an increase of 18.5%. Revenues before
reimbursable items* were $2.2 billion, an increase
of 20.2%.
• Earnings Per Share: Adjusted earnings per share*
(EPS) was $1.96, an increase of 13.2%. Adjusted
EBITDA* was $712.3 million, an increase of 14.1%.
Basic EPS from continuing operations was $1.48,
which was an increase of 12.8%. Diluted EPS
from continuing operations was $1.47, an
increase of 12.9%.
• Return to Shareholders: Net income attributable
to common shareholders was $322.9 million, an
increase of 31.9%. Our closing stock price at year
end was $33.96, and our total shareholder return
was 3.2%. We purchased 5.2 million shares of
our stock for $165.3 million and intend to
repurchase more in 2015.
Our success is tied to our issuers’ growth, the health
of the businesses we serve and the consumers who
choose our products. Furthermore, we think of TSYS as
a payments platform company with industrial-strength
systems for financial institutions, businesses and
consumers
—
a combination that is unique in the
payments industry. While scale and distribution net-
works are benefits of these platforms, they ultimately
provide the foundation and seamless interface that
allow us to work with independent software vendors
and providers to offer services not otherwise readily
available to our clients. These healthy financial results
are largely attributed to the strength of our issuer
processing, along with our direct acquiring and
prepaid program-management capabilities. Having
2