TSYS Reports 2012 Earnings Per Share Up 13.1%

  TSYS Reports 2012 Earnings Per Share Up 13.1%

                 Provides 2013 EPS Guidance of 10%-12% Growth

Business Wire

COLUMBUS, Ga. -- January 22, 2013

TSYS (NYSE: TSS) today reported results for the fourth quarter and full year
with basic earnings per share (EPS) at $0.33 for the quarter, an increase of
3.7%, and $1.30 for the full year, an increase of 13.1% over 2011. Revenues
before reimbursable items for the quarter were $418.6 million, an increase of
2.7%, and $1,618.5 million for the year, an increase of 5.0% over 2011. Total
revenues were $479.1 million for the quarter and $1,871.0 million for the full
year, increases of 1.5% and 3.4%, respectively, as compared to 2011. Total
revenues were impacted by decreases of $4.0 million for the quarter and $15.8
million for the year in reimbursable items.

Operating margin excluding reimbursable items for the year was 22.1%, an
increase of 117 basis points over last year. The increase is attributable to a
5.0% increase in revenues before reimbursable items, while expenses before
reimbursable items were up only 3.5%.

“We are pleased to report that we exceeded the high end of our net income and
EPS guidance for 2012. These results reflect continued strong same client
transaction growth of 12.0% in our card issuer processing business.
Point-Of-Sale transactions, excluding deconverted clients in the indirect
merchant business, were up 9.9% and sales volume in the direct merchant
business was up 12.9%. Excluding the impact of acquisitions, sales volume was
up 3.2%. Also contributing to our strong results was our consolidated internal
revenue growth of 5.1% for the year, combined with acquisitions in the
acquiring space, which added 1.8% to our growth in revenues before
reimbursable items,” said Philip W. Tomlinson, chairman and chief executive
officer of TSYS.

“Our guidance for 2013 is included in the table below and we expect 6% to 8 %
growth in revenues before reimbursable items and 10% to 12% EPS growth. This
is the second year in a row that we have projected double digit EPS growth. We
remain focused on executing our strategy of growing our existing businesses,
adding strategic acquisitions and deploying capital to enhance shareholder
return. In support of this strategy during 2012, we purchased 3.2 million
shares of our stock for $75 million, used $190 million to invest in
acquisitions, and returned $94 million in dividends to our shareholders, for a
total spend of $359 million,” said Tomlinson.

                           2013 Guidance
                           Range                       
                           (in millions, except per         Percent
                           share amounts)
                                                            Change
Total revenues             $1,955   to   $1,995         5%    to   7%
Revenues before            $1,711     to     $1,746         6%      to     8%
reimbursable items
Net Income attributable to $266       to     $272           9%      to     11%
TSYS common shareholders
EPS attributable to TSYS   $1.43      to     $1.45          10%     to     12%
common shareholders

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday,
January 22. The conference call can be accessed via simultaneous Internet
broadcast at tsys.com by clicking on the link under "Webcasts" on the main
homepage. The replay will be archived for 12 months and will be available
approximately 30 minutes after the completion of the call. A slide
presentation to accompany the call will be available by clicking on the link
under "Webcasts" on the main homepage of tsys.com.

Non-GAAP Measures

The financial highlights section of this release and this release contain the
non-GAAP financial measures of revenues and operating results on a constant
currency basis, and revenues and operating margin excluding reimbursable
items, respectively, to describe TSYS’ performance. Management uses these
non-GAAP financial measures to better understand and assess TSYS’ operating
results and financial performance. TSYS believes these non-GAAP financial
measures provide meaningful additional information about TSYS to assist
investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation
of those measures to the most directly comparable GAAP measures are included
on pages 11 and 12 of this release.

About TSYS

At TSYS, (NYSE: TSS), we believe payments should revolve around people — not
the other way around. We call this belief "People-Centered Payments^SM." By
putting people at the center of every decision we make, with unmatched
customer service and industry insight, TSYS is able to support financial
institutions, businesses and governments in more than 80 countries. Offering
merchant payment-acceptance solutions as well as services in credit, debit,
prepaid, mobile, chip, healthcare and more, we make it possible for those in
the global marketplace to conduct safe and secure electronic transactions with
trust and convenience.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread
across the Americas, EMEA and Asia-Pacific. TSYS provides services to more
than half of the top 20 international banks, is a Fortune 1000 company and was
named one of the 2012 World's Most Ethical Companies by Ethisphere magazine.
For more information, please visit us at www.tsys.com.

Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements
related to future, not past, events. Forward-looking statements often address
our expected future business and financial performance and often contain words
such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,”
“could,” and similar expressions. These forward-looking statements include,
among others, statements regarding TSYS’ earnings guidance for 2013 total
revenues, revenues before reimbursable items, net income attributable to TSYS
common shareholders and EPS attributable to TSYS common shareholders, and the
assumptions underlying such statements. These statements are based on the
current beliefs and expectations of TSYS' management, are based on
management’s assumptions and are subject to significant risks and
uncertainties. Actual results may differ materially from those contemplated by
the forward-looking statements. A number of important factors could cause
actual results to differ materially from those contemplated by our
forward-looking statements in this press release. Many of these factors are
beyond TSYS' ability to control or predict. These factors include, but are not
limited to, the effect of current domestic and worldwide economic conditions;
the material breach of security of any of TSYS' systems; the impact of
potential and completed acquisitions, including the costs associated therewith
and their being more difficult to integrate than anticipated; adverse
developments with respect to foreign currency exchange rates; expenses are
incurred associated with the signing of a significant client; the deconversion
of a significant client; changes occur in laws, rules, regulations, credit
card association rules or other industry standards affecting TSYS and our
clients that may result in costly new compliance burdens on TSYS and our
clients and lead to a decrease in the volume and/or number of transactions
processed; the costs and effects of litigation, investigations or similar
matters or adverse facts and developments relating thereto; adverse
developments with respect to the credit card industry in general, including a
decline in the use of credit cards as a payment mechanism; and growth rates of
TSYS’ existing clients are lower than anticipated or attrition rates of
existing clients are higher than anticipated. Additional risks and other
factors that could cause actual results to differ materially from those
contemplated in this release can be found in TSYS' filings with the Securities
and Exchange Commission, including our most recent Annual Report on Form 10-K.
We believe these forward-looking statements are reasonable; however, undue
reliance should not be placed on any forward-looking statements, which are
based on current expectations. We do not assume any obligation to update any
forward-looking statements as a result of new information, future developments
or otherwise.

TSYS Announces
Fourth Quarter                                                                   
2012 Earnings
Page 4 of 12
                                                                                                   
                                                                                                   
                                                                                   
TSYS
Financial Highlights
(unaudited)
(in thousands, except per share data)
                                                                                                   
                     Three Months Ended                        Twelve Months Ended
                     December 31,                              December 31,
                                             Percent                                       Percent
                     2012        2011        Change            2012          2011          Change
                                                                                                   
Total revenues     $ 479,100     472,234     1.5     %       $ 1,870,972     1,808,966     3.4     %
                                                                                                   
Cost of              315,698     322,946     (2.2  )           1,262,310     1,257,970     0.3
services
Selling,
general and          73,571     59,570     23.5              251,010      228,540      9.8
administrative
expenses
                                                                                                   
Operating            89,831      89,718      0.1               357,652       322,456       10.9
income
                                                                                                   
Nonoperating
income               5          (541    )   nm                (2,798    )   (5,905    )   52.6
(expenses)
                                                                                                   
Income before
income taxes,
noncontrolling
interests
and equity in
income of            89,836      89,177      0.7               354,854       316,551       12.1
equity
investments
Income taxes         30,767     29,497     4.3               115,102      102,597      12.2
Income before
noncontrolling
interests and
equity in
income of            59,069      59,680      (1.0  )           239,752       213,954       12.1
equity
investments
Equity in
income of            3,188      1,234      nm                10,171       8,708        16.8
equity
investments
Net income           62,257      60,914      2.2               249,923       222,662       12.2
Net income
attributable
to                   (1,395  )   (1,040  )   (34.1 )           (5,643    )   (2,103    )   nm
noncontrolling
interests
                                                                                                   
Net income
attributable       $ 60,862     59,874     1.7     %       $ 244,280      220,559      10.8    %
to TSYS common
shareholders
                                                                                                   
Basic earnings     $ 0.33       0.31       3.7     %       $ 1.30         1.15         13.1    %
per share
                                                                                                   
Diluted
earnings per       $ 0.32       0.31       3.4     %       $ 1.29         1.15         12.5    %
share
                                                                                                   
                                                                                                   
Dividends
declared per       $ 0.10       0.10                       $ 0.40         0.31      
share
                                                                                                   
nm = not
meaningful

TSYS Announces Fourth Quarter 2012                              
Earnings
Page 5 of 12            
   
                                                                       
                                                         
TSYS
Consolidated Statements of Comprehensive Income
(unaudited)
(in thousands)
                                                                       
                                                                       
                             Three Months Ended            Twelve Months Ended
                             December 31,                  December 31,
                                                                       
                             2012       2011               2012        2011
                                                                       
Net income                 $ 62,257     60,914             249,923     222,662
Other comprehensive
income (loss), net of
tax:
    Foreign currency
    translation              (2,257 )   (2,944 )           678         1,133
    adjustments
    Postretirement
    healthcare plan          (415   )   263               (1,665  )   1,056
    adjustments
Other comprehensive          (2,672 )   (2,681 )           (987    )   2,189
income (loss)
Comprehensive income         59,585     58,233             248,936     224,851
Comprehensive income
attributable to
noncontrolling               (1,041 )   (1,146 )           2,803      2,152
interests
Comprehensive income
attributable to
    TSYS common            $ 60,626    59,379            246,133    222,699
    shareholders
                                                                       

TSYS
Announces
Fourth                                                                                                          
Quarter 2012
Earnings
Page 6 of 12
                                                                                                                              
                                                                                                                              
                                                                                                       
TSYS
Earnings Per Share
(unaudited)
(in thousands, except per share data)
                                                                                                                              
                                                                                                                              
                Three Months Ended              Three Months Ended                Twelve Months Ended             Twelve Months Ended
                December 31, 2012               December 31, 2011                 December 31, 2012               December 31, 2011
                Common      Participating       Common      Participating         Common      Participating       Common      Participating
                Stock       Securities          Stock       Securities            Stock       Securities          Stock       Securities
                                                                                                                              
Basic
Earnings per
share:
Net income    $ 60,862                          59,874                          $ 244,280                         220,559
Less income
allocated to    (186    )   186                 (213    )   213                   (800    )   800                 (805    )   805
nonvested
awards
Net income
allocated to
common stock
for
EPS
calculation ( $ 60,676     186                 59,661     213                 $ 243,480    800                 219,754    805
a )
                                                                                                                              
Average
common shares   185,888    583                 189,506    684                   187,403    627                 191,239    707
outstanding (
b )
                                                                                                                              
Average
common shares
and             186,471                        190,190                          188,030                        191,946 
participating
securities
                                                                                                                              
Basic
Earnings per  $ 0.33       0.32                0.31       0.31                $ 1.30       1.29                1.15       1.14
share ( a )/(
b )
                                                                                                                              
Diluted
Earnings per
share:
Net income    $ 60,862                          59,874                          $ 244,280                         220,559
Less income
allocated to    (186    )   186                 (212    )   212                   (796    )   796                 (804    )   804
nonvested
awards
Net income
allocated to
common stock
for
EPS
calculation ( $ 60,676     186                 59,662     212                 $ 243,484    796                 219,755    804
c )
                                                                                                                              
Average
common shares   185,888     583                 189,506     684                   187,403     627                 191,239     707
outstanding
Increase due
to assumed
issuance of
shares
related
to common
equivalent      983                           517                             1,262                         345        
shares
outstanding
                                                                                                                              
Average
common and
common
equivalent
shares          186,871    583                 190,023    684                   188,665    627                 191,584    707
outstanding (
d )
                                                                                                                              
Average
common and
common
equivalent
shares and      187,454                        190,707                          189,292                        192,291 
participating
securities
                                                                                                                              
Diluted
Earnings per  $ 0.32       0.32                0.31       0.31                $ 1.29       1.27                1.15       1.14
share ( c )/(
d )
                                                                                                                              

TSYS
Announces
Fourth                                                                                                 
Quarter 2012
Earnings
Page 7 of 12
                                                                                                    
TSYS
Segment Breakdown
(unaudited)
(in thousands)
                                                                                                                            
                  Three Months Ended December 31,                   Twelve Months Ended December 31,
                                                                                                                            
                                          Change                                                     Change
                  2012       2011       $         %               2012           2011           $             %
Revenues
before
reimbursable
items
North America $   213,639     209,618     4,021      1.9     %     $ 826,750         809,069         17,681         2.2     %
Services
International     102,427     102,792     (365   )   (0.4  ) %       396,149         380,129         16,020         4.2     %
Services
Merchant          105,855     100,379     5,476      5.5     %       409,698         373,159         36,539         9.8     %
Services
Intersegment      (3,352  )  (5,106  )  1,754     34.4    %       (14,106   )    (21,659   )    7,553         34.9    %
revenues
Revenues
before
reimbursable
items
from external $   418,569   407,683   10,886    2.7     %     $ 1,618,491     1,540,698     77,793        5.0     %
customers
                                                                                                                            
Total
revenues
North America $   247,612     246,190     1,422      0.6     %     $ 965,393         954,550         10,843         1.1     %
Services
International     107,000     106,560     440        0.4     %       413,467         394,831         18,636         4.7     %
Services
Merchant          129,413     126,224     3,189      2.5     %       512,580         487,997         24,583         5.0     %
Services
Intersegment      (4,925  )  (6,740  )  1,815     26.9    %       (20,468   )    (28,412   )    7,944         28.0    %
revenues
Revenues from
external      $   479,100   472,234   6,866     1.5     %     $ 1,870,972     1,808,966     62,006        3.4     %
customers
                                                                                                                            
Depreciation
and
amortization
North America $   18,817      18,767      50         0.3     %     $ 74,674          78,155          (3,481   )     (4.5  ) %
Services
International     14,510      15,373      (863   )   (5.6  ) %       57,127          51,888          5,239          10.1    %
Services
Merchant          9,509       8,893       616        6.9     %       36,252          36,124          128            0.4     %
Services
Corporate         446       729       (283   )   (38.8 ) %       2,557         2,998         (441     )     (14.7 ) %
Admin
Total
depreciation  $   43,282    43,762    (480   )   (1.1  ) %     $ 170,610       169,165       1,445         0.9     %
and
amortization
                                                                                                                            
Segment
operating
income
North America $   77,801      66,560      11,241     16.9    %     $ 287,595         253,844         33,751         13.3    %
Services
International     6,058       11,983      (5,925 )   (49.4 ) %       27,335          41,408          (14,073  )     (34.0 ) %
Services
Merchant          30,438      32,958      (2,520 )   (7.6  ) %       132,115         112,986         19,129         16.9    %
Services
Corporate         (24,466 )  (21,783 )  (2,683 )   (12.3 ) %       (89,393   )    (85,782   )    (3,611   )     (4.2  ) %
Admin
Operating     $   89,831    89,718    113       0.1     %     $ 357,652       322,456       35,196        10.9    %
income
                                                                                                                            
Other:
Reimbursable
items:
North America $   33,973      36,572      (2,599 )   (7.1  ) %     $ 138,643         145,481         (6,838   )     (4.7  ) %
Services
International     4,573       3,768       805        21.4    %       17,318          14,702          2,616          17.8    %
Services
Merchant          23,558      25,845      (2,287 )   (8.8  ) %       102,882         114,838         (11,956  )     (10.4 ) %
Services
Intersegment      (1,573  )  (1,634  )  61        3.7     %       (6,362    )    (6,753    )    391           5.8     %
revenues
Reimbursable  $   60,531    64,551    (4,020 )   (6.2  ) %     $ 252,481       268,268       (15,787  )     (5.9  ) %
items
                                                                                                                            
Volumes:
FTEs
(full-time
equivalents)
North America                                                        4,096           4,318           (222     )     (5.1  ) %
Services
International                                                        2,404           2,376           28             1.2     %
Services
Merchant                                                             1,481           1,158           323            27.9    %
Services
Corporate                                                            425           397           28            7.1     %
Admin
FTEs                                                                 8,406         8,249         157           1.9     %
                                                                                                                            
                                                                     At                              Change
Total assets
(in                                                                  12/31/2012     12/31/2011     $             %
thousands)
North America                                                      $ 1,747,096       1,621,664       125,432        7.7     %
Services
International                                                        445,642         433,203         12,439         2.9     %
Services
Merchant                                                             696,426         487,858         208,568        42.8    %
Services
Intersegment                                                         (870,406  )    (684,333  )    (186,073 )     (27.2 ) %
assets
Total assets                                                       $ 2,018,758     1,858,392     160,366       8.6     %
                                                                                                                            
                                                                                                                            
                  Three Months Ended December 31,                    Twelve Months Ended December 31,
                                                                                                                            
                                          Change                                                     Change
                  2012       2011       Inc(Dec)  %               2012          2011          Inc(Dec)     %
North America
Segment:
Accounts on
File (AOF)                                                           424.8           351.4           73.4           20.9    %
(in millions)
Transactions      2,194.7     1,947.8     246.9      12.7    %       8,102.3         7,218.4         884.0          12.2    %
(in millions)
                                                                                                                            
International
Segment:
AOF (in                                                              54.6            52.8            1.8            3.5     %
millions)
Transactions      474.0       399.5       74.5       18.6    %       1,674.5         1,426.7         247.8          17.4    %
(in millions)
                                                                                                                            
Merchant
Segment:
Point-of-sale
Transactions      1,153.2     1,216.4     (63.2  )   (5.2  ) %       4,877.6         4,955.5         (77.9    )     (1.6  ) %
(in millions)
                                                                                                                            

TSYS Announces Fourth Quarter 2012 Earnings                   
Page 8 of 12
                                                                  
                                                                  
                                                            
TSYS
Balance Sheet
(unaudited)
(in thousands)
                                               Dec 31, 2012    Dec 31, 2011
Assets
Current assets:
Cash and cash equivalents                    $ 247,612            316,337
Accounts receivable, net                       247,075            248,541
Deferred income tax assets                     9,825              12,872
Prepaid expenses and other current assets      70,206             72,431
                                                              
Total current assets                           574,718            650,181
Goodwill                                       513,273            355,498
Property and equipment, net                    260,389            266,608
Computer software, net                         226,017            215,244
Contract acquisition costs, net                161,267            162,987
Equity investments, net                        87,764             82,924
Other intangible assets, net                   130,054            81,250
Deferred income tax assets, net                5,334              4,069
Other assets                                   59,942             39,631
                                                              
Total assets                                 $ 2,018,758      1,858,392  
                                                                  
Liabilities
Current liabilities:
Accounts payable                             $ 63,370             26,095
Current portion of notes payable               27,687             181,251
Accrued salaries and employee benefits         26,243             33,004
Current portion of obligations under capital   13,263             14,363
leases
Other current liabilities                      94,505             125,863
                                                              
Total current liabilities                      225,068            380,576
Long-term debt, excluding current portion      174,533            39,104
Deferred income tax liabilities                48,771             32,889
Obligations under capital leases, excluding    17,155             24,489
current portion
Other long-term liabilities                    68,791             60,325
                                                              
Total liabilities                              534,318        537,383    
Redeemable noncontrolling interest             39,505         -          
Equity
Shareholders' equity:
Common stock                                   20,247             20,186
Additional paid-in capital                     141,793            125,948
Accumulated other comprehensive income         1,408              (445       )
(loss), net
Treasury stock                                 (287,301   )       (225,034   )
Retained earnings                              1,549,063      1,380,634  
Total shareholders' equity                     1,425,210      1,301,289  
Noncontrolling interests in consolidated       19,725         19,720     
subsidiaries
Total equity                                   1,444,935      1,321,009  
Total liabilities and equity                 $ 2,018,758      1,858,392  
                                                                  

TSYS Announces Fourth Quarter 2012 Earnings                    
Page 9 of 12
                                                                    
                                                                    
                                                              
TSYS
Cash Flow
(unaudited)
(in thousands)
                                              Twelve Months Ended December 31,
                                              2012               2011
                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                  $ 249,923               222,662
Adjustments to reconcile net income to net
cash
provided by operating activities:
Equity in income of equity investments        (10,171   )           (8,708   )
Dividends received from equity investments    7,524                 6,835
Net loss on foreign currency translation      2,012                 3,091
Depreciation and amortization                 170,610               169,165
Amortization of debt issuance costs           298                   160
Changes in fair value of private equity       (898      )           -
investments
Share-based compensation                      18,621                16,477
Excess tax benefit from share-based payment   (1,259    )           523
arrangements
Asset impairments                             -                     799
Provisions for bad debt expense and billing
adjustments                                   1,054                 1,552
Charges for transaction processing            2,803                 4,750
provisions
Deferred income tax expense (benefit)         285                   1,491
(Gain) loss on disposal of equipment, net     324                   (1,159   )
Changes in operating assets and
liabilities:
Accounts receivable                           2,855                 (7,044   )
Prepaid expenses, other current assets and    (2,945    )           23,099
other long-term assets
Accounts payable                              37,206                (15,512  )
Accrued salaries and employee benefits        (7,083    )           4,492
Other current liabilities and other           (15,406   )        13,646   
long-term liabilities
Net cash provided by operating activities     455,753           436,319  
                                                                    
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net      (31,434   )           (26,938  )
Additions to licensed computer software       (33,001   )           (19,502  )
from vendors
Additions to internally developed computer    (19,285   )           (17,882  )
software
Proceeds from sale of trade name              -                     4,500
Proceeds from disposition, net of expenses    39                    -
paid and cash disposed
Cash used in acquisitions, net of cash        (188,698  )           (47,909  )
acquired
Purchase of private equity investments        (3,031    )           (1,573   )
Subsidiary repurchase of noncontrolling       -                     (493     )
interest
Additions to contract acquisition costs       (34,384   )        (31,623  )
Net cash used in investing activities         (309,794  )        (141,420 )
                                                                    
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt
borrowings and
capital lease obligations                     (200,052  )           (28,892  )
Proceeds from borrowings of long-term debt    150,000               -
Proceeds from exercise of stock options       9,672                 8,065
Excess tax benefit from share-based payment   1,259                 (523     )
arrangements
Repurchase of common stock                    (74,939   )           (121,271 )
Debt issuance costs                           (2,073    )           -
Purchase of noncontrolling interests          -                     (174,050 )
Subsidiary dividends paid to noncontrolling   (2,797    )           (433     )
shareholders
Dividends paid on common stock                (94,035   )        (53,949  )
Net cash used in financing activities         (212,965  )        (371,053 )
                                                                    
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and   (1,719    )        (2,304   )
cash equivalents
Net increase (decrease) in cash and cash      (68,725   )           (78,458  )
equivalents
Cash and cash equivalents at beginning of     316,337           394,795  
period
Cash and cash equivalents at end of period  $ 247,612           316,337  
                                                                    


TSYS Announces Fourth                                           
Quarter 2012 Earnings
Page 10 of 12
                                                                          
                                                                          
                                                                          
Supplemental
Information:
                                            Accounts on File
                                            Total
                                              December     December       %
(in millions)                                                          
                                              2012         2011           Change
Consumer                                      200.5        195.0          2.8
Credit
Retail                                        25.0        24.6           2.0
Total Consumer                                225.5        219.6          2.7
Commercial                                    37.1         35.2           5.3
Other                                         12.8        7.9            61.4
Subtotal                                      275.4        262.7          4.8
Prepaid/Stored                                115.9        85.2           36.1
Value
Government                                    57.0         29.7           92.0
Services
Commercial Card Single Use                    31.1        26.6           17.1
Total AOF                                     479.4       404.2          18.6
                                                                          
                                                                          
                                                                          
Growth in Accounts on File
(in millions):
                                 December
                                 2011 to      December 2010 to

                                 December     December 2011
                                 2012
Beginning                        404.2        342.9
balance
Change in accounts on file
due to:
               Internal
               growth of         31.5         33.9
               existing
               clients
               New clients       80.1         43.4
               Purges/Sales      (33.6 )      (15.3  )
               Deconversions     (2.8  )     (0.7   ) 
Ending balance                   479.4      404.2   
                                                       

TSYS Announces Fourth Quarter 2012 Earnings
Page 11 of 12

                                                          
Reconciliation of GAAP to Non-GAAP
                                                          
Non-GAAP Measures
                                                          
The schedule below provides a reconciliation of revenues and operating results
on a constant currency basis to reported revenues and operating income. This
non-GAAP measure presents year-to-date 2012 financial results using the
previous year’s foreign currency exchange rates. On a year-to-date constant
currency basis, TSYS’ total revenues grew 3.8% as compared to a reported GAAP
increase of 3.4%.
                                                          
The schedule below also provides a reconciliation of revenues and operating
margin excluding reimbursable items to reported revenues and operating margin.
On a year-to-date basis, TSYS’ total revenues excluding reimbursable items
grew 5.0% as compared to a reported GAAP increase of 3.4%. On a year-to-date
basis, TSYS’ operating margin excluding reimbursable items was 22.1% as
compared to a reported GAAP margin of 19.1%.
                                                          
TSYS believes that non-GAAP financial measures are important to enable
investors to understand and evaluate its ongoing operating results.
Accordingly, TSYS includes non-GAAP financial measures when reporting its
financial results to shareholders and investors in order to provide them with
an additional tool to evaluate TSYS’ ongoing business operations. TSYS
believes that the non-GAAP financial measures are representative of
comparative financial performance that reflects the economic substance of
TSYS’ current and ongoing business operations.
                                                          
Although non-GAAP financial measures are often used to measure TSYS’ operating
results and assess its financial performance, they are not necessarily
comparable to similarly titled captions of other companies due to potential
inconsistencies in the method of calculation.
                                                          
TSYS believes that its use of non-GAAP financial measures provides investors
with the same key financial performance indicators that are utilized by
management to assess TSYS’ operating results, evaluate the business and make
operational decisions on a prospective, going-forward basis. Hence, management
provides disclosure of non-GAAP financial measures to give shareholders and
potential investors an opportunity to see TSYS as viewed by management, to
assess TSYS with some of the same tools that management utilizes internally
and to be able to compare such information with prior periods. TSYS believes
that the presentation of GAAP financial measures alone would not provide its
shareholders and potential investors with the ability to appropriately analyze
its ongoing operational results, and therefore expected future results. TSYS
therefore believes that inclusion of non-GAAP financial measures provides
investors with additional information to help them better understand its
financial statements just as management utilizes these non-GAAP financial
measures to better understand the business, manage budgets and allocate
resources.
                                                          

TSYS Announces
Fourth Quarter                                 
2012 Earnings
Page 12 of
12

                                                                                   
Reconciliation of GAAP to Non-GAAP
                                                                      
Constant Currency Comparison
(unaudited)
(in thousands)
                                                                                   
                 Three Months Ended December     Twelve Months Ended December 31,
                 31,
                                     Percent                               Percent
                 2012      2011      Change        2012        2011        Change
Consolidated
Constant       $ 479,027   472,234   1.4     %   $ 1,876,979   1,808,966   3.8     %
currency (1)
Foreign          73       -                      (6,007    ) -         
currency (2)
Total          $ 479,100  472,234  1.5     %   $ 1,870,972  1,808,966  3.4     %
revenues
                                                                                   
Constant       $ 88,830    89,718    (1.0  ) %   $ 352,955     322,456     9.5     %
currency (1)
Foreign          1,001    -                      4,697      -         
currency (2)
Operating      $ 89,831   89,718   0.1     %   $ 357,652    322,456    10.9    %
income
                                                                                   
International
Services
Constant       $ 106,985   106,560   0.4     %   $ 419,993     394,831     6.4     %
currency (1)
Foreign          15       -                      (6,526    ) -         
currency (2)
Total          $ 107,000  106,560  0.4     %   $ 413,467    394,831    4.7     %
revenues
                                                                                   
                                                                                   
(1) Reflects current period results on a non-GAAP basis as if foreign currency rates
did not change from the comparable prior year period.
(2) Reflects the impact of calculated changes in foreign currency rates from the
comparable period.
                                                                                   
                                                                                   
                                                                      
Operating Margin Excluding Reimbursable Items
(unaudited)
(in thousands)
                                                                                   
                 Three Months Ended December     Twelve Months Ended December 31,
                 31,
                                     Percent                               Percent
                 2012      2011      Change        2012        2011        Change
Operating      $ 89,831   89,718   0.1         $ 357,652    322,456    10.9
income (a)
                                                                                   
Total Revenues $ 479,100   472,234   1.5         $ 1,870,972   1,808,966   3.4
(b)
Less
reimbursable     60,531   64,551   (6.2  )       252,481    268,268    (5.9  )
items
Revenues
before         $ 418,569  407,683  2.7         $ 1,618,491  1,540,698  5.0
reimbursable
items ( c )
                                                                                   
Operating
margin (GAAP)    18.75   % 19.00   % -25 bps       19.12     % 17.83     % 129 bps
(a) / (b)
Operating
margin
excluding        21.46   % 22.01   % -55 bps       22.10     % 20.93     % 117 bps
reimbursable
items (a) /
(c)
                                                                                   

Contact:

TSYS Investor Relations
Shawn Roberts, +1.706.644.6081
shawnroberts@tsys.com