TSYS (NYSE: TSS) today reported results for the first quarter of 2014 and announced the sale of its business interests in Japan. The accompanying financial statements have been adjusted to exclude the Japanese results from ongoing operations in 2014 and 2013 with those results reported as “discontinued operations” for all periods presented.
Total revenues for the quarter were $592.8 million, an increase of 32.1%. Revenues before reimbursable items were $532.8 million, an increase of 37.3%. The reported results for the quarter for both total revenues and revenues before reimbursable items exclude $16.2 million of revenue for Japan as a result of moving these results to discontinued operations. Adjusted EBITDA was $149.6 million, an increase of 21.2%. Income from continuing operations was $50.6 million. Adjusted cash earnings per share (EPS) from continuing operations was $0.38. On a GAAP basis, basic EPS from continuing operations was $0.26. Diluted EPS from continuing operations was $0.26.
"We are pleased with the first quarter as the financial results met or exceeded our plans. Our cash flow from operations was $148.7 million and our free cash flow was $101.5 million, which were increases of $96.3 million and $104.4 million, respectively, over last year. During the quarter, we also deployed $37.5 million of our capital to increase our stake in our Central Payment joint venture from 60% to 75% as it continues to outperform our expected goals," said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
"Our revised guidance for 2014 is included in the table below and is only adjusted for the discontinued Japan operations. TSYS’ previous revenue guidance included approximately $70 million of revenue associated with its operations in Japan for 2014, and $68 million in 2013. The financial impact from the sale of our businesses in Japan had no material impact on our previous guidance. Revenue and earnings growth ranges remain strong year over year, while adjusted cash EPS remained the same. Our revised guidance for 2014 reflects our focus on diversification, growth and the exceptional performance of our TSYS team,” said Tomlinson.