TSYS reported results for the fourth quarter and full year of 2017.

“2017 proved to be a truly exceptional year for our company. We delivered outstanding financial results, continued to expand our merchant business with the Cayan acquisition announcement and finished the year having met or exceeded our goals,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.

Highlights for the fourth quarter of 2017 vs. 2016:

• Total revenues were $1.3 billion, an increase of 12.5%.

• Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $870.6 million, an increase of 10.8%.

• Net income attributable to TSYS common shareholders was $242.2 million, an increase of 227.5%, which includes $135.9 million of tax benefit from the Tax Cuts and Jobs Act.

• Diluted EPS were $1.31, an increase of 227.4%.

• Adjusted earnings (non-GAAP) were $151.0 million, an increase of 16.5%.

• Adjusted diluted EPS (non-GAAP) were $0.82, an increase of 16.5%.

• Adjusted EBITDA (non-GAAP) was $293.3 million, an increase of 10.0%.

• 3.45 million shares were purchased for $255.0 million.

Highlights for the full year of 2017 vs. 2016:

• Total revenues were $4.9 billion, an increase of 18.2%.

• Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $3.4 billion, an increase of 11.8%.

• Net income attributable to TSYS common shareholders was $586.2 million, an increase of 83.4%, which includes $135.9 million of tax benefit from the Tax Cuts and Jobs Act.

• Diluted EPS were $3.16, an increase of 82.4%.

• Adjusted earnings (non-GAAP) were $624.2 million, an increase of 20.9%.

• Adjusted diluted EPS (non-GAAP) were $3.37, an increase of 20.2%.

• Adjusted EBITDA (non-GAAP) was $1.2 billion, an increase of 15.1%.

• 3.85 million shares were purchased for $282.6 million.

• Debt was reduced by $400 million and totaled $800 million over the past two years.

“We expect the momentum of 2017 to carry over into 2018. We are projecting strong organic revenue growth as we remain laser focused on executing on our strategic plan and delivering outstanding results,” said Woods.

2018 Outlook
On January 1, 2018, TSYS adopted Accounting Standards Codification 606 “Revenue from Contracts with Customers” using the modified retrospective transition method. The 2018 guidance is below and includes the expected impact of the adoption of the new revenue standard, the expected impact of the acquisition of Cayan, the expected impact of the new tax law (the Tax Cuts and Jobs Act) and the expected effective date of October 2018 of the prepaid rules by the Consumer Financial Protection Bureau.

(1) The estimated impact of the adoption of ASC 606 on TSYS' 2018 Outlook is as follows:

The most significant impact of adopting ASC 606 in 2018 is primarily the result of gross versus net presentation of interchange and payment network fees. In 2018, these fees collected on behalf of the payment networks and card issuers will be presented "net" of the amounts paid to them, as opposed to the "gross" presentation for certain of these fees in 2017.