TSYS reported results for the fourth quarter and full year of 2018.

"Strong results in the fourth quarter closed out another exceptional year for our company. In 2018, we delivered outstanding financial results, expanded our Merchant capabilities with the acquisition of Cayan and iMobile3, and continued to make strategic long-term investments across the enterprise," said M. Troy Woods, chairman, president and chief executive officer of TSYS.

Highlights for the fourth quarter of 2018 vs. 2017:

• Total revenues were $1.02 billion, a decrease of 20.0%. The decrease is the result of adopting ASC 606.(1)

• Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $959.3 million, an increase of 10.2%.

• Net income attributable to TSYS common shareholders was $136.4 million, a decrease of 43.7%. The decrease is the result of $135.9 million of tax benefit from the Tax Cuts and Jobs Act in 4Q 2017. Diluted EPS were $0.74, a decrease of 43.4%.

• Adjusted earnings (non-GAAP) were $197.5 million, an increase of 30.8%. Adjusted diluted EPS (non-GAAP) were $1.08, an increase of 31.5%.

• Adjusted EBITDA (non-GAAP) was $346.0 million, an increase of 18.0%.

Highlights for the full year of 2018 vs. 2017:

• Total revenues were $4.03 billion, a decrease of 18.3%. The decrease is the result of adopting ASC 606.(1)

• Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $3.82 billion, an increase of 12.2%.

• Net income attributable to TSYS common shareholders was $576.7 million, a decrease of 1.6%. The decrease is the result of $135.9 million of tax benefit from the Tax Cuts and Jobs Act in 4Q 2017. Diluted EPS were $3.14, a decrease of 0.8%.

• Adjusted earnings (non-GAAP) were $821.3 million, an increase of 31.6%. Adjusted diluted EPS (non-GAAP) were $4.47, an increase of 32.7%.

• Adjusted EBITDA (non-GAAP) was $1.37 billion, an increase of 14.4%.

(1) On January 1, 2018, TSYS adopted Accounting Standards Codification (ASC) 606 “Revenue from Contracts with Customers” using the modified retrospective transition method. 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 are presented “net” of the amounts paid to them, as opposed to the “gross” presentation for certain of these fees in 2017.

2019 Outlook
TSYS' 2019 guidance is as follows:

2019 Segment Reporting Change
TSYS will change its profitability measure for its operating segments to adjusted segment EBITDA. As a result, TSYS has included on page 18 of this release a schedule recasting its 2018 and 2017 quarterly segment results reflecting the change.