SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
April 16, 1998
(Earliest Event Reported)
Total System Services, Inc.
(Exact Name of Registrant as
Specified in its Charter)
Georgia 1-10254 58-1493818
(State of (Commission File (IRS Employer
Incorporation) Number) Identification Number)
1200 Sixth Avenue, Columbus, Georgia 31901
(Address of principal executive offices)
(706) 649-2267
(Registrant's Telephone Number)
(Former name or former address, if changed since last report)
Item 5. Other Events.
On April 16, 1998, Total System Services, Inc. ("Registrant") announced
a three-for-two stock split and a 33.3% increase in the quarterly dividend of
Registrant's common stock. On a pre-split basis, the quarterly dividend will be
increased to $.015 from $.01125. The cash dividend will be payable on July 1,
1998, to shareholders of record as of June 18, 1998. The three-for-two stock
split will be issued on May 8, 1998, to shareholders of record as of April 27,
1998 with a brokers' cut-off date of May 4, 1998. On a post-split basis, the new
quarterly dividend will be $.01 per share.
A copy of Registrant's press release regarding the announcement
referenced above is attached hereto as Exhibit 99.1, and by this reference made
a part hereof.
The following summary of selected financial data is presented below on both a
pre-split and post-split basis. All post-split share and per share information
has been retroactively restated to reflect the stock split as if it had occurred
on January 1, 1993
PRE-SPLIT
Five Year Selected Financial Data
(In thousands, except per share data)
<TABLE>
<CAPTION>
Years Ended December 31,
----------------------------------------------------------
(in thousands except per share data) 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income Statement Data:
Revenues:
Bankcard data processing services .......$ 324,718 277,870 218,953 166,194 136,650
Other services .......................... 36,781 33,778 30,755 21,377 15,424
- ------------------------------------------------------------------------------------------------------------
Total revenues .................. 361,499 311,648 249,708 187,571 152,074
- ------------------------------------------------------------------------------------------------------------
Expenses:
Salaries and other personnel expense .... 147,438 124,259 94,946 73,051 54,517
Net occupancy and equipment expense ..... 94,685 82,118 64,549 51,283 43,421
Other operating expenses ................ 59,447 53,368 47,291 28,139 21,521
- ------------------------------------------------------------------------------------------------------------
Total operating expenses ........ 301,570 259,745 206,786 152,473 119,459
- ------------------------------------------------------------------------------------------------------------
Equity in income (loss) of joint ventures 9,347 7,094 69 (13) --
- ------------------------------------------------------------------------------------------------------------
Operating income ................ 69,276 58,997 42,991 35,085 32,615
- ------------------------------------------------------------------------------------------------------------
Nonoperating income:
Gain (loss) on disposal of equipment, net (36) 31 (123) 65 335
Interest income, net of expense ......... 2,315 1,416 839 264 (80)
- ------------------------------------------------------------------------------------------------------------
Total nonoperating income ....... 2,279 1,447 716 329 255
- ------------------------------------------------------------------------------------------------------------
Income before income taxes ...... 71,555 60,444 43,707 35,414 32,870
Income taxes .................................... 24,077 21,007 15,977 12,924 12,647
- ------------------------------------------------------------------------------------------------------------
Net income ......................$ 47,478 39,437 27,730 22,490 20,223
===========================================================================================================
Basic earnings per share ........$ .37 .31 .21 .17 .16
===========================================================================================================
Diluted earnings per share ......$ .37 .30 .21 .17 .16
===========================================================================================================
Cash dividends declared per share ...............$ .045 .045 .045 .040 .035
===========================================================================================================
Weighted average common shares outstanding ...... 129,304 129,287 129,263 129,259 128,811
===========================================================================================================
Weighted average common and common
equivalent shares outstanding ........... 129,492 129,451 129,416 129,445 128,952
===========================================================================================================
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
- -----------------------------------------------------------------------------
(in thousands) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance Sheet Data:
Total assets ............$296,858 245,759 199,000 165,042 133,339
Working capital ......... 70,899 52,274 37,687 33,421 30,594
Total long-term debt..... 475 676 931 1,162 1,707
Shareholders' equity..... 221,255 178,878 144,472 123,004 102,278
</TABLE>
POST-SPLIT
The following table has been restated for the three-for-two stock split declared
on April 16, 1998.
Five Year Selected Financial Data
(In thousands, except per share data)
<TABLE>
<CAPTION>
Years Ended December 31,
----------------------------------------------------------
(in thousands except per share data) 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income Statement Data:
Revenues:
Bankcard data processing services .......$ 324,718 277,870 218,953 166,194 136,650
Other services .......................... 36,781 33,778 30,755 21,377 15,424
- ------------------------------------------------------------------------------------------------------------
Total revenues .................. 361,499 311,648 249,708 187,571 152,074
- ------------------------------------------------------------------------------------------------------------
Expenses:
Salaries and other personnel expense .... 147,438 124,259 94,946 73,051 54,517
Net occupancy and equipment expense ..... 94,685 82,118 64,549 51,283 43,421
Other operating expenses ................ 59,447 53,368 47,291 28,139 21,521
- ------------------------------------------------------------------------------------------------------------
Total operating expenses ........ 301,570 259,745 206,786 152,473 119,459
- ------------------------------------------------------------------------------------------------------------
Equity in income (loss) of joint ventures 9,347 7,094 69 (13) --
- ------------------------------------------------------------------------------------------------------------
Operating income ................ 69,276 58,997 42,991 35,085 32,615
- ------------------------------------------------------------------------------------------------------------
Nonoperating income:
Gain (loss) on disposal of equipment, net (36) 31 (123) 65 335
Interest income, net of expense ......... 2,315 1,416 839 264 (80)
- ------------------------------------------------------------------------------------------------------------
Total nonoperating income ....... 2,279 1,447 716 329 255
- ------------------------------------------------------------------------------------------------------------
Income before income taxes ...... 71,555 60,444 43,707 35,414 32,870
Income taxes .................................... 24,077 21,007 15,977 12,924 12,647
- ------------------------------------------------------------------------------------------------------------
Net income ......................$ 47,478 39,437 27,730 22,490 20,223
===========================================================================================================
Basic earnings per share ........$ .24 .20 .14 .12 .10
===========================================================================================================
Diluted earnings per share ......$ .24 .20 .14 .12 .10
===========================================================================================================
Cash dividends declared per share ...............$ .030 .030 .030 .027 .023
===========================================================================================================
Weighted average common shares outstanding ...... 193,956 193,931 193,895 193,889 193,217
===========================================================================================================
Weighted average common and common
equivalent shares outstanding ........... 194,239 194,177 194,123 194,167 193,428
===========================================================================================================
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
- -----------------------------------------------------------------------------
(in thousands) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance Sheet Data:
Total assets ............$296,858 245,759 199,000 165,042 133,339
Working capital ......... 70,899 52,274 37,687 33,421 30,594
Total long-term debt..... 475 676 931 1,162 1,707
Shareholders' equity..... 221,255 178,878 144,472 123,004 102,278
</TABLE>
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(a) Financial Statements - None.
(b) Pro Forma Financial Information - None.
(c) Exhibits
99.1 - Registrant's press release, April 16, 1998
2
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, Registrant has caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TOTAL SYSTEM SERVICES, INC.
("Registrant")
Dated: April 16, 1998 By:/s/ Kathleen Moates
-------------------------- -------------------
Kathleen Moates
Deputy General Counsel
3
Exhibit Index
Exhibit Number Description
99.1 Registrant's
press release
dated April 16, 1998
4
________________________________________________________________________________
TSYS(R) NEWS RELEASE
________________________________________________________________________________
TOTAL SYSTEM SERVICES, INC.(R)
For Immediate Release
Contact: Patrick A. Reynolds
Director of Investor Relations
(706) 649-5220
Total System Services, Inc. Announces Three-For-Two Stock Split
and a 33.3% Increase in the Quarterly Cash Dividend
Columbus, GA., April 16, 1998 - Today, Total System Services, Inc.(R) (TSYS(R))
(NYSE - "TSS"), the Columbus, Georgia based credit, debit, commercial and
private-label card processing company, announced a three-for-two stock split and
a 33.3% increase in the quarterly cash dividend of TSYS common stock. On a
pre-split basis, the quarterly cash dividend will be increased to $.015 from
$.01125. The cash dividend will be payable on July 1, 1998, to shareholders of
record as of June 18, 1998.
The three-for-two stock split will be issued on May 8, 1998, to
shareholders of record as of April 27, 1998 with a brokers' cut-off date of May
4, 1998. On a post-split basis, the new quarterly cash dividend will be $.01 per
share.
Commenting on the stock split and the increased dividend, TSYS Chairman
and CEO Richard W. Ussery stated, "We are pleased to be able to announce a
three-for-two stock split and a 33.3% dividend increase. The market has
recognized TSYS as a unique, value-added company that consistently performs at
the highest levels in our industry, handsomely rewarding our shareholders. This
stock split and dividend increase is indicative of our Board of Directors'
confidence in our future."
TSYS (www.totalsystem.com) is one of the world's largest credit, debit,
commercial and private-label card processing companies. An 80.7% owned
subsidiary of Synovus Financial Corp. (NYSE: "SNV")(www.synovus.com), TSYS
serves card-issuing institutions throughout the United States, Puerto Rico,
Canada and Mexico. Creating innovative processing solutions, TSYS makes it
possible for more than 95 million cardholders to use their cards anytime,
anywhere, without fail. We enable card-issuing institutions to profitably
compete and better serve their customers through our world class people,
technology and service.
###
POST OFFICE BOX 1755 COLUMBUS, GEORGIA 31901-1755
http://www.totalsystem.com
