And we think we have clear line of sight to continue to enhance and grow the market opportunities of that business and that's something we're very excited about. I'm just curious, Jeff, about any early go-to-market experience you've had combining your merchant business and TSYS' Issuer processing business in Europe, which was definitely a big call out when you announced the transaction? In the Merchant Solutions business, we are building on solid third quarter performance as we align our go-to-market strategies in the U.S. and begin to capitalize on cross-selling opportunities. Importantly, we accomplished this while producing strong financial performance in the third quarter, a testament to our continued relentless focus on execution. These new competitive wins with marquee partners across multiple geographies further validate the distinctiveness of our pure play payments model. I would start by saying for the combined business, it's a very small part of the overall combined business. So the answer is yes to your first question. 2019 Outlook TSYS’ 2019 guidance is as follows: 2019 Percent Financial Outlook Change Range (in millions, except per share amounts) Revenue: … We have just returned from Europe and we believe that the market is ready for onus processing capabilities domestically and cross-border in geographies like the United Kingdom, Central Europe, Spain, Ireland and closer-to-home, Canada. Global Payments shares have gained 46% in 2019 to date, while TSYS has gained 47%. What specifically about the cost takeout process is going better than you expected to date? ':D.Hd�$�YA��($� In combination with the new credit facility we closed in July, our combined capital structure is now largely complete and meaningfully improves our weighted average interest rate going forward. We've been down this path before. Your line is open. We are delighted to have completed our landmark merger with TSS this quarter, bringing together two industry leaders and positioning the new Global Payments as the premiere pure play payments technology company at scale globally. Adjusted operating margin in Europe expanded 100 basis points to 48.6% as consistent execution and scale benefits offset pressure from foreign currency headwinds. We successfully closed this transformative partnership on September 18, just 3.5 months after we announced our agreement in late May and well ahead of our initial expectations. Our European e-com and omni solutions business again delivered strong growth as we further enhance our differentiated capabilities in Unified Commerce Platform. One was Cayan, which is very similar to OpenEdge. Just as the follow up. It has been my privilege to serve in this role for the last five years and to work with all of you in that capacity. Then of course bringing some of these solutions to international markets we think creates other long-term opportunities for revenue enhancements in the overall merchant business. With 100% focus on payments, we bring unmatched reach and extensive scale to help you grow your business with confidence. I guess first of all just on TSYS, I mean you laid it out extremely well. %PDF-1.5 %���� With 100% focus on payments, we bring unmatched reach and extensive scale to help you grow your business with confidence. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Our next question comes from Ramsey El Assal of Barclays. So in terms of the types of deals that we're looking at, we're looking at geographic extensions, we're looking at in-market scale, consolidations, you heard Desjardins today that we described, which is in a market partnership and a business that we're already in and of course we're looking for more software and more vertical market solutions. And we maintained our consistent track record of growth in our own software portfolio as our strategy of delivering the full value stack in key vertical markets is creating deeper, richer and more value-added relationships with our customers. So we're delighted to be able to partner with them. In the UK, we delivered mid-single-digit organic growth, which was ahead of our expectations and accelerated sequentially from the second quarter despite a continuing soft macro environment and the uncertainties surrounding Brexit. And just as my follow up. And the only thing, David, I would add, as you know, from a legacy TSYS perspective, we said this at the time of the deal we knew each companies very well, both companies had a long history of knowing each other and we knew that that was going to provide kind of additive tailwinds from a synergy standpoint of just that expertise that we both had in our legacy businesses and the complementary nature of the two legacy companies, putting them together. So thanks for taking my question. To address your last question about the $100 million of expense synergies, what we said in the script, Just to be clear is we've taken actions that run rate to $100 million of expense synergies in 2020, obviously that $100 millions is not in Q4. Let me just say that when we were doing diligence on that business in May, we were optimistic then. We are winning every day in the marketplace with the uniqueness of our strategy and we are very proud of the company we keep. And after we got post-close that came to fruition of that kind starting point. We continue to benefit from strength in our businesses in Spain and Central Europe, each of which grew well into the teens on a local currency basis. From a timing point of view, I mean we obviously want to make sure, I think the balance sheet is in a very happy place as Cameron alluded, 2.5 times leverage gives us a lot of capability. Inclusive of TSYS from the date of the merger, we now anticipate adjusted operating margin expansion of up to 40 basis points for the full year. On a stand-alone basis, TSYS produced consistent results for the third quarter. And just talk about what you've really priced in around, the opportunity on pricing upside into your guidance and your synergies and is there more of an opportunity there? I think it can be a part of the overall merchant business, again without being a core part of where we're deploying resources trying to grow the business in the future. The decrease is the result of $135.9 million of tax benefit from the Tax Cuts and Jobs Act in 4Q 2017. I'm just wondering, did it -- in addition to other things you mentioned, I mean has it just regained focus coming into this quarter as the deal closed and then you saw a better line of sight. I'll jump in there quickly. Cumulative Growth of a $10,000 Investment in Stock Advisor, Total System Services Inc (TSS) Q3 2019 Earnings Call Transcript @themotleyfool #stocks $TSS, Total System Services Inc (TSS) Q3 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q2 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q1 2020 Earnings Call Transcript, Why Total System Services Surged 57.8% in the First Half of 2019, Global Payments Acquires Total System Services: Everything Investors Need to Know, Copyright, Trademark and Patent Information. We did get some accretive growth from the legacy indirect side. TSYS is a member of The Civic 50 and was named one of the 2018 World’s Most Ethical Companies by Ethisphere magazine. Our Canadian business grew low-single-digits in local currency, with weakness in the Canadian dollar impacting reported results by approximately 100 basis points for the quarter. Yeah. I think the market, as I said in my prepared remarks, it is absolutely ready for onus domestic and cross-border processing. And obviously we expect those to continue to ramp as we head into 2020 and beyond. Yeah, David, that's a great point. The schedules below also provide a … And then I guess the other part of TSYS, am I right to understand about $100 million cost synergy run rate already in Q4? Given TSYS' business mix, its margin profile is lower than that of Global Payments legacy business, thereby reducing margin expansion expectations for the full year period. So I actually think it's a continuation, Eric, of the TSYS we laid out in in May. And we look forward to updating you on our continued progress in the coming quarters. Thanks, Darrin. 1 Pro forma estimate for 2019 inclusive of $100mm run-rate adj net revenue synergies at a 50% margin and $300mm of run-rate expense synergies; TSYS’ adj net revenue … Thank you for that. Global Payments shares have gained 46% in 2019 to date, while TSYS has gained 47%. [Operator Instructions]. We saw most of TSYS' large customers in Europe on the issuing side and we saw a lot of Global Payments large customers in the merchant side in Europe when Troy and I and team were there. Paul, do you want to add anything? In Europe, what has been -- the regulators pushed that back about 12 months in terms of the implementation. Winnie Smith -- Vice President of Investor Relations. But I would say momentum in both of our businesses is very good. It's a great question, Dave. Scale your revenue, simply and efficiently. And the revenue opportunities, David that I hadn't considered such as enabling some of the bigger retail brands that TSYS has on the issuing side in Europe to become more of a payment facilitation mechanism and enabled around digital wallets using issuer and acquirer capabilities, which is actually something I really hadn't thought about that in May, but certainly heard loud and clear from some of the consumer brands who are already on TSYS when we were there a couple of weeks ago. View TSYS (www.tsys.com) location in Georgia, United States , revenue, industry and description. I would say, we have had acceleration kind of as part of the deal. Our combination with TSYS significantly accelerates our technology-enabled software-driven mission, establishing Global Payments as a leading provider of integrated payment solutions, own software in both merchant and issuing and omnichannel capabilities in the most attractive markets globally. 2069 0 obj <>/Filter/FlateDecode/ID[]/Index[2053 26]/Info 2052 0 R/Length 81/Prev 278378/Root 2054 0 R/Size 2079/Type/XRef/W[1 2 1]>>stream Yeah, Eric, it's Jeff. So in essence, you can think about it as a referral deal, but as it relates to UCP specifically. Got it. So the happy news is those assumptions proved to be conservative and we think we're run rating in a much higher level. We have 5,000 fantastic team members in Columbus. I'll jump in. It's Jeff. Turning to Asia Pacific, reported adjusted net revenue plus network fees growth for stand-alone Global Payments was 5% or approximately 7% on a constant currency basis. So pretty optimistic on the combined business and where we're heading. Good results here. Yeah. The schedules below also provide a … Excluding TSYS, Global Payments produced adjusted net revenue plus network fees of $1.161 billion, reflecting growth of 13% versus 2018 or over 14% on a constant currency basis and adjusted operating margins expanded by 110 basis points to 34.2%. Now I will turn the call back over to Jeff. We obviously did lose our leader in the second quarter, which also had some some effect there. It's a really good question and we've spent a lot of time as we brought the two merchant businesses together talking about that very topic. In North America, adjusted net revenue plus network fees for Global Payments on a stand-alone basis was $877 million, reflecting growth of 16% over the prior year period. We are fortunate and grateful to be in the position we're in today. Our ability to execute on an accelerated timeline was made possible by the highly complementary nature for our market-leading payments and software technology businesses, the strong alignment of our corporate cultures and the unrivaled expertise of the 24,000 people across our combined organization. The momentum we have in our business coupled with the significant progress we have made on integration, bolsters our confidence in the future and more specifically, the accretion expectations we had for the TSYS merger at the time of announcement in May. TSYS's revenue is the ranked 8th among it's top 10 competitors. h�b```f``������u�A��b�@̱��U ��YCYo3�0�r�s�pr,`��a������)��LO�=\�yg���a��6sfZhXZZZP3�F���œ��m&PVR�no�aqŜ�[O��]8��� E��n/�e�t��Q�dgL. We are dead set on what we said at the time of the announcement, which is we're fully committed to dual headquarters in Atlanta and Columbus. 2078 0 obj <>stream We feel very good about how we've come together as a go-to-market motion as a combined company and how the team is executing in the early days of putting those organizations together. Yeah, Ramsey, it's Cameron. TSYS (1) Net Revenue Adjustments (2) Earnings Adjustments (3) Non-GAAP. Is that a correct interpretation or are you just simply giving us more insights into how it fits into the broader integration strategy? TSYS generated revenue of $4.0 billion in 2018, while processing more than 32.3 billion transactions. I'll talk a little bit about pipeline on the merchant side. As Cameron pointed out, we did see an acceleration in the third quarter in merchant already. Europe came in significantly better than we expected both on revenue and cash EBIT. Our integrated -- legacy TSYS integrated business grew in the strong double-digit range. As customers move to cloud-based solutions, we believe that Global Payments can enhance the development of next generation products and services. I think that is differentiated for us. Moving to Europe, adjusted net revenue plus network fees for stand-alone Global Payments grew approximately 11% in local currency or 6% on a reported basis as foreign currency exchange rates remained a meaningful headwind during the period. So I think on a combined Issuer Merchant basis, we have the same relative presence for the combined company in Canada than we even do in Europe, which is why I signaled it out in the script this morning. First, our efforts to align our merchant organizations and go-to-market strategy in the U.S. are well under way and we expect to start cross-selling products including Vital POS, Genius and ProPay as well as subscription-based engagement and analytics and vertical software solutions in 2020. Please go ahead. I don't know that we'll continue to try to grow it perhaps as aggressively as TSYS has grown it historically, but certainly I think there is a role for wholesale to play in the overall merchant business. On a constant currency basis, TSYS’ total revenues for the first quarter of 2019 were higher 5.6% as compared to a reported GAAP increase of 4.8%. TSYS had revenue of $4 billion in 2018, while processing more than 32.3 billion financial transactions. So it's essentially the same percentage at the combined business as it was for Global stand-alone. Partners across multiple geographies further validate the distinctiveness of our merger with Total System Services including office,. 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