TSYS news includes profit, reduced debt, Bass Pro/Cabela’s conversion, new board exec

For credit-card and payment processor TSYS, there were several milestones in the third quarter of 2018, with the firm reporting Tuesday a profit of $156 million on total revenues of just over $1 billion.

“We were very pleased to continue our momentum and performance for the third quarter as all three of our segments delivered exceptional results,” said TSYS Chairman and Chief Executive Officer Troy Woods in a statement. “This performance enables us to again raise our guidance for the year while continuing to invest for the long term.”

Here are highlights for the Columbus-based company during the July-September quarter:

Profit adds up to 85 cents per share for quarter

The profit, or net income, of $156 million was up nearly 27 percent from $123 million in the same three-month period a year ago. Those figures translate to diluted earnings per share of 85 cents, an increase from 66 cents.

Through the first nine months of 2018, TSYS has racked up a profit of $440.2 million, which is 28 percent higher than the nearly $343 million it posted from January through September a year ago.

Debt reduction and converting Bass Pro Shops/Cabela’s accounts

The company said it reduced debt by $175 million in the quarter and by $355 million thus far this year. It also set a record for traditional accounts on file at just under 595 million.

TSYS also said it had a hand in the Bass Pro Shops acquisition of rival Cabela’s, with it converting both retailers’ accounts for Capital One in the third quarter. It also received a commitment from Capitol One to convert two retail and co-branded card portfolios in 2019. It also signed a deal with a large specialty retailer that has nearly 600 locations.

Netspend news, improved financial guidance, Regions extension

In the third quarter, Netspend, a prepaid card distributor owned by TSYS, launched a new program with supermarket chain Albertsons. The grocer has 2,000 locations nationwide. It also moved forward on a card with retailer 7/11 that helps families manage their daily finances.

The new business and future prospects prompted the card processor to revise its financial outlook for 2018,with total revenues now expected to reach just over $4.04 billion rather than $3.99 billion. Diluted earnings per share are projected to be around $3.15, up from $3.09.

As it was issuing its earnings report Tuesday, TSYS announced it has inked a long-term contract extension with Alabama-based Regions Bank on its consumer and small business credit-card portfolios.

Hanesbrands executive takes seat on board of directors

On Monday, the company said that Joia M. Johnson, the chief administrative officer, general counsel and corporate secretary for Hanesbrands Inc., an underwear and activewear company, is taking a seat on its board of directors, giving it 13 members. She also will serve on the board’s compensation committee.

“She brings an impressive array of skills — from legal, retail and international to corporate social responsibility to name a few — that will be an asset to TSYS moving forward as we continue to grow and operate as one of the world’s leading payments companies,” he said.

This story was originally published October 23, 2018 at 6:23 PM.