And so, much -- similar to Cameron's comments on the legacy global side, just a great quarter from a merchant standpoint. 2078 0 obj <>stream We are now live in the United States in addition to Canada and Asia Pacific and will fully rollout UCP in the UK over the next few weeks. Great result. Together, we are positioned to deliver industry-leading growth and remain at the forefront of innovation as we head into 2020 and beyond. So it's a nice addition, nice bolt-on to our overall Canadian business and obviously I think opens up new avenues for growth in that market for us going forward. Specifically, we expect the capabilities of ProPay to provide value-added products like multiple disbursement capabilities and web-based self-select at Heartland. Joining me on the call are, Jeff Sloan CEO; Cameron Bready, President and COO and Paul Todd, Senior Executive Vice President and CFO. As it relates to a financial contribution, it's going to add next year probably about in the neighborhood of $70 million or so of adjusted net revenue plus network fees to our existing Canadian business, which I think you know is it just a little north of $300 million. Just the Canada acquisition that sounds pretty cool, what roughly is the size of that? I would start by saying for the combined business, it's a very small part of the overall combined business. Before concluding today, I want to provide an update on our expected go-forward reporting for the business. And then the other key trend we are hearing on one of the others is around paybacks. [Operator Instructions]. So I actually think it's a continuation, Eric, of the TSYS we laid out in in May. To address your last question about the $100 million of expense synergies, what we said in the script, Just to be clear is we've taken actions that run rate to $100 million of expense synergies in 2020, obviously that $100 millions is not in Q4. Global payments also had revenue of about $4 billion last year. We have found a true with TSYS and could not be more excited about the future opportunities to drive significant value creation for our employees, customers, partners and shareholders. Hey guys. I'll just add for the merchant business in particular, if you think about its contribution to the total business, it's about 70% of the combined business now and it's roughly 50% technology-enabled and about 50% relationship globally. Today we’re excited to announce the close of our merger with Total System Services (TSYS). To facilitate this change, we will be providing pro forma financial information for the combined business for historical reporting periods consistent with this presentation. When we talk about revenue synergies in the merchant business, it's really across the opportunity to cross-sell products and capabilities into our existing collected merchant bases. In fact, the terms we achieved are more favorable than we anticipated when we announced our partnership with TSYS in May. The S&P 500 SPX, +0.87% has gained 13% and the Dow … In fact, as Jeff detailed, our revenue enhancement initiatives are already under way. In November 2013, the company announced TSYS Merchant Insights, a partnership with Womply, a San Francisco-based startup, to provide revenue, social media, and reputation analysis tools to all TSYS merchants. Net income attributable to TSYS common shareholders was $136.4 million, a decrease of 43.7%. Following the close of our merger on September 18, TSYS contributed $145 million of adjusted net revenue plus network fees and $45 million of adjusted operating income for the final 13 days of September. I wouldn't want to point to any particular item per se, there is not one significant driver of that overall $25 million increase that we articulated on the call today. TSYS has 12,820 employees and is ranked 5th among it's top 10 competitors. Yeah. Now the numbers at this point aren't going to be dramatic, but certainly they are providing a little bit of a nice tailwind in the merchant business within TSYS. Specifically, OpenEdge produced high-teens growth, while our own software portfolio continued to deliver low-double-digit organic growth consistent with our outlined targets. Our Canadian business grew low-single-digits in local currency, with weakness in the Canadian dollar impacting reported results by approximately 100 basis points for the quarter. But I would say momentum in both of our businesses is very good. I would say they're probably roughly split between the three buckets. Thanks, Jeff and good morning everyone. I guess first of all just on TSYS, I mean you laid it out extremely well. Although we believe adjusted net revenue plus network fees provide useful insight into the economics of our business in a manner consistent with how the company assesses and measures performance, the SEC has requested we discontinue its use. So it's little things here and there and it's probably across all three of the primary areas where we expect to realize synergies from the transaction. Winnie Smith -- Vice President of Investor Relations. Returns as of 01/14/2021. And I think among the three deals that were announced, this is the lowest level of leverage among all three. The other one of course was Transfers, which is very similar to Heartland at Global Payments and Transfers have both semi-integrated as well as relationship-based businesses as well as an e-commerce asset. We want to continue to serve the customers and partners that we have in that channel extraordinarily well as I think we have historically. Yeah. The actions we've taken today will generate $100 million of expense savings in 2020, which was our target for realized expense synergies for the first full year of ownership of TSYS that we announced when we made the acquisition or merger back in May. Net income attributable to TSYS common shareholders was $136.4 million, a decrease of 43.7%. Ramsey Clark El-Assal -- Barclays Capital -- Analyst. Some of the comments made refer to non-GAAP financial measures such as adjusted net revenue, adjusted net revenue plus network fees, adjusted operating margin and adjusted earnings per share, which we believe are more reflective of our ongoing performance. Global Payments shares have gained 46% in 2019 to date, while TSYS has gained 47%. As we talked about in our integrated business, Paul gave a little bit of color on how TSYS performed, we commented that OpenEdge grew high-teens in the quarter which is the high watermark for that business certainly over the last several years, which I think reflects a strong new partner growth over the course of the last couple of years and obviously good effectiveness of converting existing customers of our partners to payments customers of Global Payments which has been obviously an important part of our growth story over time. Finally, revenue performance for the legacy TSYS Consumer Solutions business was largely consistent with the second quarter. In addition, adjusted operating margin expansion for Global Payments on a stand-alone basis is now expected to be up to 100 basis points for 2019, well ahead of our historical target. Yeah, Eric, I think you're correct in what you said. Multiple recent successes in competitive processes confirm the wisdom of our strategic focus and the primacy of our business model. A quick follow-up on your wholesale business, which I know for legacy Global was a increasingly small part of your business and declining, I know TSYS had a slightly different strategy there. So in terms of the types of deals that we're looking at, we're looking at geographic extensions, we're looking at in-market scale, consolidations, you heard Desjardins today that we described, which is in a market partnership and a business that we're already in and of course we're looking for more software and more vertical market solutions. And those conversations we had again where we were in Europe a couple of weeks ago. And as Jeff mentioned, we are already making significant progress on the integration of our two leading pure play payments businesses. I wouldn't suggest that that's a meaningful aspect of how we think about driving revenue enhancements by combining our business. Desjardins selected Global Payments as a direct result of the breadth and depth of our technology payment solutions, local and global expertise, comprehensive distribution, modern architecture and infrastructure and our unrivaled track record of execution over many decades. TSYS is a member of The Civic 50 and was named one of the 2018 World’s Most Ethical Companies by Ethisphere magazine. So certainly as we head into 2020, if the Capital Markets Day favorable and our execution continues or accelerates on the path that it's in, I certainly think we're open for business. As for the outlook for the combined company in 2019, we now expect adjusted net revenue plus network fees to range from $5.60 billion to $5.63 billion, reflecting growth of … No. That's good. The second thing I would say in our own software businesses, we continue to see strong bookings growth across AdvancedMD and ACTIVE as well, SICOM had a very strong quarter and has very strong momentum heading into 2020 having received recently some positive news from one of its largest customers about a rollout of a new product across its base of franchisees in 2020, which we think will be a nice tailwind for that business heading into the year. Before we begin our question-and-answer session, I'd like to ask everyone to limit their questions to one with one follow-up to accommodate everyone in the queue. Of the -- you delineated for us the three primary areas where you anticipate them, but of the incremental synergies that you're underscoring today, can you give us an attribution of what they relate to with respect to those three buckets? And after we got post-close that came to fruition of that kind starting point. I would also say, as I mentioned that PSD2 and strong customer authentication now above the land as of mid-September. %%EOF I guess I had a question going back to kind of the original announcement and talking about kind of this dual headquarter relationship. That's super helpful. TSYS generated revenue of $4.0 billion in 2018, while processing more than 32.3 billion transactions. And obviously we expect those to continue to ramp as we head into 2020 and beyond. TSYS is a member of the S&P 500 and routinely Netspend has already proved fertile ground for new merchant referral relationships among its larger distribution partners. Dan, it's Jeff. These risks and uncertainties could cause actual results to differ materially. Performance at TSYS' merchant business improved, resulting in meaningful revenue acceleration. At present, TSYS’ revenue of $980 million was broken down into 42 percent Issuer Solutions (where accounts on file grew 8.6 percent to 628.2 million), with … So if we think there higher better use for anything that we're doing, we're obviously open minded, we're all very focused on shareholder value. Is it more of a bank referral model that I mean historically you guys didn't really use as much I think, merchant bank referral, but maybe just explain what the Citi deal is all about? Yeah, David, that's a great point. Growth for the legacy TSYS Merchant Solutions business accelerated from the second quarter, moving back into the high-single-digits longer-term targeted range. Our next question comes from Tien-tsin Huang of J.P. Morgan. Good afternoon and welcome to the TSYS 2019 First Quarter Earnings Release and Conference Call. Netspend’s valued partners include Walmart, PayPal, Western Union, H-E-B, Brinks, Major League Baseball and United Airlines. With TSYS, we deepen our competitive mode and confirm the value of our ecosystem across each element of our strategy. Just coming back for Money 2020, it does sound like you know pricing has been somewhat stable at least on the SMB side, if not actually better. 31.07.2019 - TSYS (NYSE: TSS) today reported results for the second quarter of 2019. In November 2013, the company announced TSYS Merchant Insights, a partnership with Womply, a San Francisco-based startup, to provide revenue, social media, and reputation analysis tools to all TSYS merchants. We're thrilled to have the opportunity to partner with Desjardins in Canada. Thank you so much. Third, Netspend is actively working on new B2B, B2C and P2P capabilities and opportunities including for our restaurant and gaming customers as well as in new geographies. Our next question comes from Dan Perlin with RBC Capital Markets. And so, that's been a nice tailwind as we've been able to bring kind of our teams together. Importantly, we accomplished this while producing strong financial performance in the third quarter, a testament to our continued relentless focus on execution. We have very strong experience from an M&A standpoint. We want to make sure that in the next number of months all the stuff that we've laid out internally and externally that we're going to meet and even exceed those expectations. So Cameron, for example commented on trends at Xenial SICOM which has had a good year and we expect to have even better year in 2020. We now expect at least mid-single-digit accretion in 2020, which all else being equal, would imply adjusted earnings per share expectation in the mid-$7 range based on our stand-alone 16% to 18% growth target. Netspend now generates $800 million in revenue, has served more than 10 million customers throughout the United States and has established more than 120,000 card distribution sites and 130,000 card reload locations. So I don't know that it's a different point of view. Normalized for the exit of its government services business and the deactivation of a single value-added product, the legacy TSYS Issuer Solutions business grew in line with its longer term mid-single-digit target in the quarter. But as I think about it, this is as much a managerial question as anything else. So that's the new initiative that's called Spring by Citi. Thank you. So when we think about the pipeline for the business, it's a little bit different than obviously the issuer business, which tends to be more large FI focused. Operator, we will now go to questions. TSYS had revenue of $4 billion in 2018, while processing more than 32.3 billion financial transactions. ... Net revenue grew 8.1% for the quarter which was … In North America, adjusted net revenue plus network fees for Global Payments on a stand-alone basis was $877 million, reflecting growth of 16% over the prior year period. In particular, we've had great momentum among the leadership team in merchant as it relates to our go-to-market strategy and finding ways to obviously drive efficiencies in the combined business as we work to implement our target architecture model and target operating model. Europe came in significantly better than we expected both on revenue and cash EBIT. Thank you. I know you did this deal and have a pretty attractive capital structure right now. Total System Services Inc (NYSE:TSS)Q3 2019 Earnings CallOct 31, 2019, 8:00 a.m. I think once we feel like our sea legs are there and that we're tracking in the right place, this won't be an issue of capital availability or balance sheet, I think we have those today, instead of saying hey we're in a really good place, we're in a really good trajectory, we feel very good managerially about where we are. I mean I would stay tuned on that in relatively short order. What specifically about the cost takeout process is going better than you expected to date? And based on the work completed to date, we are increasing our target for run rate revenue benefits to more than $125 million within three years. Good results here. The decrease is the result of $135.9 million of tax benefit from the Tax Cuts and Jobs Act in 4Q 2017. I'd also reiterate what we said I think in the July or August call where Cameron and I mentioned which was we have a number of partners at Global Payments, FIs in Europe and in Asia who have asked us about moving to TSYS on the issuer side, there are large financial institutions. Thanks, Winnie. Number two, a very smart consumer and then the very sophisticated services. In addition, TSYS' Issuer Solutions business recently completed new long-term agreements with the Central Trust Bank in North America and leading retailer Riachuelo in Brazil. So what's so exciting about this is obviously number one, Citi is a fantastic partner. Companies enabling software to do more on their own, which I guess underscores your strategy of buying in, but are you seeing that as well? So thanks for taking my question. At present, TSYS’ revenue of $980 million was broken down into 42 percent Issuer Solutions (where accounts on file grew 8.6 percent to 628.2 million), with … And we certainly view there U.S. is having a differentiated strategy in Netspend versus the other public competitor and I tried to listing those in the prepared remarks. Yeah, it's Cameron. Turning to our integrated and vertical market businesses, OpenEdge once again delivered strong growth during the third quarter, driven by our ability to provide a truly integrated ecosystem across more vertical markets and more geographies than our peers. As customers move to cloud-based solutions, we believe that Global Payments can enhance the development of next generation products and services. Tien-tsin, it's Jeff. Multinationals; Match your ambition with our worldwide footprint. And that's helpful. So we feel good about how the rest of Asia is holding up as a macro matter, notwithstanding obviously the slight disruptions in Hong Kong we've had to absorb in the P&L. We will be transitioning to this methodology in the fourth quarter and will provide all of the components necessary for you to measure performance under both conventions. So I would say, David, sitting here today I'm more optimistic than I was even back in May about what those opportunities are. We also expect adjusted earnings per share in a range of $6.12 to $6.20 reflecting growth of 18% to 20% over 2018. Now I will turn the call back over to Jeff. Just one quick follow up. With 100% focus on payments, we bring unmatched reach and extensive scale to help you grow your business with confidence. We expect revenue growth to accelerate in the fourth quarter across all three legacy TSYS businesses. Your line is open. I'm just curious, Jeff, about any early go-to-market experience you've had combining your merchant business and TSYS' Issuer processing business in Europe, which was definitely a big call out when you announced the transaction? Sure. We also see additional use cases for Paycard in restaurants, one of our largest vertical markets as well as in our gaming business, which is among the largest in North America. And I think as a -- given the size of merchant organization we're operating today, there is room for us to have a wholesale business. This reflects a price per share of $119.86 for each share of TSYS common stock, and an approximately 20% premium to TSYS’ unaffected common share price as of the close of business on May 23, 2019. Perhaps just starting on the TSYS side, you talked about already having taken the actions to achieve the $100 million of cost takeout in 2020. Obviously the Paycard capabilities that Netspend brings, we think provide a very attractive avenue for growth for the payroll business across our existing base of customer. Cumulative Growth of a $10,000 Investment in Stock Advisor, Total System Services Inc (TSS) Q3 2019 Earnings Call Transcript @themotleyfool #stocks $TSS, Total System Services Inc (TSS) Q3 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q2 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q1 2020 Earnings Call Transcript, Why Total System Services Surged 57.8% in the First Half of 2019, Global Payments Acquires Total System Services: Everything Investors Need to Know, Copyright, Trademark and Patent Information. With 100% focus on payments, we bring unmatched reach and extensive scale to help you grow your business with confidence. In addition to our new preliminary agreement with Citi, we recently signed several significant global omnichannel customers including with UK-based online luxury retailer MATCHESFASHION and the rapidly expanding modern high-tech hotel chain Yotel. “We now expect adjusted net revenue plus network fees for 2019 to range from $5.60 billion to $5.63 billion, reflecting growth of 41% to 42% over 2018. [Operator Instructions]. We are winning every day in the marketplace with the uniqueness of our strategy and we are very proud of the company we keep. I would just say just speaking from a strategic point of view, I think our focus on M&A for the combined company really hasn't changed. Today we’re excited to announce the close of our merger with Total System Services (TSYS). Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $959.3 million, an increase of 10.2%. Let me just say that when we were doing diligence on that business in May, we were optimistic then. I think the market, as I said in my prepared remarks, it is absolutely ready for onus domestic and cross-border processing. So in essence, you can think about it as a referral deal, but as it relates to UCP specifically. We also continue to expand UCP. Three months ended September 30, 2019. Just as the follow up. There is obviously more momentum to continue to build as we look forward to 2020 and beyond. Your line is open. Thank you. View TSYS ( location in Georgia, United States , revenue, industry and description. I'll start. Your line is open. We continue to benefit from strength in our businesses in Spain and Central Europe, each of which grew well into the teens on a local currency basis. While we compile the Q&A roster. And then I guess the other part of TSYS, am I right to understand about $100 million cost synergy run rate already in Q4? Adjusted operating margin in Europe expanded 100 basis points to 48.6% as consistent execution and scale benefits offset pressure from foreign currency headwinds. Turning to the Consumer Solutions business, earlier this month, we announced a partnership with Samsung to integrate the Netspend Digital Mastercard into Samsung's mobile wallet and provide a variety of payment solutions, including P2P. And so, the people that were involved on the TSYS side selling those products just were reinvigorated or was there a bigger strategy that was kind of being put in place post kind of the second quarter, which was a little bit disappointing? [G�YG�ZGCDkG�qG�RDG�qGG� �����h��`���@��ֈ&������OӁ@����a� �������Y���Y���ى1�ٍ� �Y.��>G��>$@���2iF�(�f�1@Z��!O 9,v�U�� ��m We are also laying the groundwork so we can begin to deliver products like Vital POS, Genius and ProPay to additional geographies internationally and enable TSYS' legacy customers outside of the United States. We could not be more excited about the momentum in our business and the significant wins we have recently achieved with large FIs like Desjardins and Citi, validate our pure play payments focus. Your line is open. We also saw high-single-digit organic growth in our U.S. relationship-led channel. And we maintained our consistent track record of growth in our own software portfolio as our strategy of delivering the full value stack in key vertical markets is creating deeper, richer and more value-added relationships with our customers. How should we sort of frame up your M&A opportunity? Pro forma leverage for the combined business was approximately 2.5 times at the end of the quarter. Just on the merchant side, maybe can you help us recast what percent is now defined as tech-enabled versus all the other pieces? Our European e-com and omni solutions business again delivered strong growth as we further enhance our differentiated capabilities in Unified Commerce Platform. Market data powered by FactSet and Web Financial Group. Total System Services has 12,820 employees across 13 locations and $4.03 B in annual revenue in FY 2018. These new competitive wins with marquee partners across multiple geographies further validate the distinctiveness of our pure play payments model. So I just want to be explicitly clear about that. Thanks, Cameron. Thanks very much. I would just say that we looked at TSYS and each of the segments is being a very attractive partner for us. On behalf of Global Payments, thank you very much in joining us -- for joining us this morning and thank you for your interest in us and everybody have a happy Halloween. 0 Number two, I do think there are a lot of revenue synergies coming out of Global Payments. To that end, we are thrilled to announce we have signed new partnership with Desjardins, Canada's leading financial cooperative group and Citi, one of the largest money center banks globally. The top 10 competitors average 9,389. Revenues: Merchant Solutions $ 1,004,943 $ 316,471 $ Paul, do you want to add anything? We also did see one area of direct overlap between Global and TSYS which is in the merchant business. And as we said on the call and mentioned earlier in the Q&A, we have line of sight to $100 million of run rate synergies in 2020 already and the actions we've taken will allow those materialize next year as we continue to look to do more for 2021 and 2022. 2053 0 obj <> endobj h��U�n�@��}LTѽzm�)@H"5iH5ʃ+�jldLS��3��i�R4���g��2ˆ`! So the answer is yes to your first question.

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