NetSpend 2015 Annual Report Download - page 36

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Adjusted Earnings Per Share
Years Ended December 31,
(in thousands except per share data) 2015 2014 2013
Income from continuing operations attributable to TSYS common
shareholders .................................................... $362,633 $275,216 246,893
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization .................................. 61,525 65,127 43,743
Share-based compensation ........................................ 27,954 20,944 19,830
NetSpend merger and acquisition expenses .......................... —3,115 15,251
Adjusted earnings .................................................. $452,112 $364,402 $325,717
Basic EPS—Income from continuing operations attributable to TSYS
common shareholders
As reported (GAAP) ................................................ $ 1.97 1.48 1.31
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization .................................. 0.33 0.35 0.23
Share-based compensation ........................................ 0.15 0.11 0.11
NetSpend merger and acquisition expenses .......................... —0.02 0.08
Adjusted EPS* ..................................................... $ 2.46 1.96 1.73
Deduct: Federal and state tax credits and related expenses, net of tax .... $ (0.13) ——
Adjusted EPS without impact of one-time tax items ...................... $ 2.33 1.96 1.73
Average common shares and participating securities ..................... 184,082 186,222 188,391
* Adjusted EPS amounts do not total due to rounding.
Projected Outlook for 2016
As compared to 2015, TSYS expects its 2016 total revenues to increase by 4%-6%, its revenues before
reimbursable items to increase by 5%-7%, and its adjusted EPS from continuing operations attributable to TSYS
common shareholders to increase by 4%-7%, based on the following assumptions with respect to 2016: (1) there
will be no significant movements in the London Interbank Offered Rate (LIBOR) and TSYS will not make any
significant draws on the remaining balance of its revolving credit facility; (2) there will be no significant movement
in foreign currency exchange rates related to TSYS’ business; (3) TSYS will not incur significant expenses
associated with the conversion of new large clients, additional acquisitions, or any significant impairment of
goodwill or other intangibles; (4) there will be no deconversions of large clients during the year other than as
previously disclosed; and (5) the economy will not worsen. In addition, TSYS’ earnings guidance for 2016 does
not include the impact of share repurchases or the pending acquisition of TransFirst Holdings Corp.
(“TransFirst”).
Financial Position, Liquidity and Capital Resources
The Consolidated Statements of Cash Flows detail the Company’s cash flows from operating, investing and
financing activities. TSYS’ primary methods for funding its operations and growth have been cash generated from
current operations, the use of leases and the occasional use of borrowed funds to supplement financing of capital
expenditures.
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