Total System Services, Inc. (NYSE:TSS) Q1 2018 Earnings Conference Call - Final Transcript

Apr 24, 2018 • 05:00 pm ET


Total System Services, Inc. (NYSE:TSS) Q1 2018 Earnings Conference Call - Final Transcript


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Good day, and welcome to the TSYS 2018 First Quarter Earnings Release and Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Shawn Roberts, Senior Director of Investor Relations. Please go ahead.

Shawn Roberts

Thank you, Andrea, and welcome, everyone. We'll begin this evening's call with opening comments by TSYS's Chairman, President and CEO, Troy Woods, followed by TSYS's CFO, Paul Todd, who will both be reviewing the first quarter 2018 highlights, as well as the consolidated financials. Troy and Paul will be referencing a slide presentation during their prepared remarks. A copy of this presentation as well as our earnings release and supplemental schedules are available on our website at After their prepared remarks, we'll open the call up for Q&A. I will remind everyone participating in the Q&A that each person will have the opportunity to ask one question and one follow up question.

I'll now call your attention to the fact that we'll be making some forward-looking statements about future operating results of TSYS. These forward-looking statements involve risks and uncertainties. Factors that could cause TSYS's actual results to differ materially from the forward-looking statements are set forth in the TSYS's reports filed with the SEC, including our 2017 annual report on Form 10-K.

We will also discuss items that do not conform to GAAP and we reconcile those measures to GAAP measures in the appendix of the slide presentation and in the supplemental schedules to the press release.

At this point, I'll turn the call over to Troy Woods.

Troy Woods

Thank you, Shawn. Good evening, and welcome to our first quarter earnings call. We're very pleased with the overall results for the first quarter. We delivered record consolidated net revenue, operating income and net income, driven by the exceptional performance across all three of our segments. Some of the highlights for the first quarter that I'd like to call out include net revenue up 12.3%, adjusted EBITDA increased 15.2%, adjusted diluted earnings per share increased over 37% and our consolidated operating margin expanded 47 basis points.

These outstanding results and expectations for the remainder of the year provided us with great momentum and have allowed us to increase our guidance for 2018. And Paul will provide additional details on this and provide his guidance in his report.

I want to congratulate and thank all of our team members for their continued commitment and focus, and for producing these outstanding first quarter results.

Over the course of the quarter, TSYS was recognized and honored by certain organizations that I would like to highlight before I move into the specific results of each segment. In its inaugural year, Thomson Reuters selected TSYS as a top 100 global tech company based on our commitment to leadership. The top 100 companies chosen are the tech industry's most operationally sound and financially successful organizations around the globe. Additionally, TSYS was selected as one of the world's most ethical companies by the Ethisphere