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Wireless communications technology provider $TSS reported a 10.7% drop in its 4Q16 earnings. The company's net income fell to $73.9MM, or $0.40 per share compared to $82.8MM, or $0.45 per share during 4Q15. Total revenues during the quarter increased 57.9% to $1.1Bil from $716.8MM. Excluding items, $TSS earned $0.71 per share.
On a segment basis, $TSS's North America revenue grew by 2.4% in 3Q16 and the company's expectation for revenue growth in 2016 is still at or above 5%. Margin for the quarter in the segment was 37.7%, which included about $6MM of severance expense.
$TSS said that company's all segments beat its internal projections for 3Q16 and are in line with expectations. Free cash flow for the quarter grew by 37.5% and the company expects its free cash flow to be in the range of $550-570MM for FY16, higher than the previously expected range of $510-540MM.
$TSS' revenue from North America Services for 3Q16 rose by 2.4% to $300.75MM from last year, while that from International Services fell by 8.1% to $79.45MM. Revenue from Merchant Services grew to $262.5MM from $123.7MM in the prior year quarter, and that from NetSpend increased 11.2% to $155.35MM.
Wireless communications technology provider $TSS reported a 29.2% drop in 3Q16 earnings due to costs related to TransFirst acquisition. Net income fell to $85.35MM or $0.46 per share from $120.62MM or $0.65 per share last year. Revenues jumped 62% to $1.15Bil. Adjusted EPS dropped 8.7% to $0.71.
$TSS ended 2Q16 with $465MM in cash. CapEx was $37MM in the quarter, of which about 29% was related to property and equipment. Weighted shares outstanding were 183.7MM in the quarter. 2Q16 free cash flow was $157.6MM and effective tax rate was 38.1%, which is higher than normal due to some one-time acquisition related effects.
Segment-wise, $TSS expects North America revenue growth in the mid single-digits in 2016. Company expects constant currency revenue growth in the low single-digits for the International segment. NetSpend revenue is expected to grow in the low double-digits for 2016.
$TSS expects adjusted EBITDA margin to grow by 100 BPs for 2016. Currency impact in 2H of 2016 is expected to reduce net revenue growth rate by about 100 BPs, with a potential $0.02 negative EPS impact in 2016. $TSS expects to have $5-7MM of one-time severance expense in 3Q16, which is expected to reduce adjusted EPS by about $0.02 in the quarter.
Credit card processor $TSS reported that 2Q16 total revenue grew 66.3% and net revenue grew 27.8% versus 2Q15. Adjusted EBITDA rose 32.7% in the quarter. Adjusted operating margin was 28.6%, up 200 BPs versus previous year quarter, with increase in operating margin in three of its four segments.
$TSS' revenue from North America Services for 2Q16 rose by 3.5% to $297.17MM from the previous year quarter, while that from International Services fell by 2.5% to $81.77MM. Revenue from Merchant Services grew to $261.47MM from $117.87MM in the prior year quarter, and that from NetSpend increased 14.8% to $162.62MM.
Wireless communications technology provider $TSS reported a 15.9% drop in 2Q16 earnings due to expenses related to closing the TransFirst acquisition. Net income fell to $69.71MM or $0.38 per share from $82.84MM or $0.45 per share last year. Revenues jumped 66.3% to $1.15Bil. Adjusted EPS grew 27.9% to $0.74.