TSYS CEO says firm has come long way since 1983, poised for rapid change and growth

What a journey the last 33 years have been at TSYS, and what an adventure lies ahead for the global credit-card processor and payments company headquartered in Columbus.

That was the thread that TSYS Chairman, President and CEO Troy Woods weaved through his presentation at the firm’s annual meeting of shareholders Thursday, held in the auditorium of its downtown corporate headquarters overlooking the Chattahoochee River.

“I thought I would for a moment put 1983 in perspective for shareholders,” he said. “If you went back to when we went public (on the New York Stock Exchange) in 1983, we ended the year with 2.5 million accounts on file. Tuesday night on our earnings call, we reported we have 750 million accounts on file.”

Woods, who has been with card processor or its former parent company, Synovus Financial Corp., since the 1970s — TSYS itself was incorporated in 1982 — said revenue has grown from $15 million in its first year as a publicly traded firm to one that will rack up more than $4 billion in revenue this year. It’s market capitalization, or stock value, has surged from $15 million to $9.6 billion over that time.

“And if you were fortunate enough back in 1983 to have invested $1,000 at $15 a share — which was the IPO (initial public offering) price of this company — and invested the dividend, and held on to it, that $1,000 investment would be worth $255,000 today,” the CEO said. “Not a bad investment, I think, by anyone’s measure.”

The one constant through the company’s history, Woods declared, has been change. He acknowledged the change is constant, inevitable and coming at an even more rapid pace in the firm’s fourth decade.

As evidence of that change, he announced that businessmen Gardiner Garrard and Lynn Page, who have been on the TSYS board of directors since 1983, are retiring from the governing body. He said the two men have been “among our most astute advisers, loyal supporters and greatest champions.”

The current board, which now stands at 13 directors and was approved Thursday by a shareholder vote, includes Pam Joseph, the former U.S. Bancorp executive who starts work Monday at TSYS as its president and chief operating officer. She becomes the highest-ranking female ever at the company.

“We’re extremely thrilled to have Pam not only joining the board, but joining our executive leadership team with her vision, her experience and her leadership, to help move this company forward,” Woods said.

Also new to the TSYS executive ranks are Patricia Watson, who joined the firm last August as senior executive vice president and chief information officer, and John Shlonsky, who now is a senior vice president after the $2.35 billion acquisition by TSYS of merchant specialty firm TransFirst. Shlonsky was president and CEO of that company prior to the purchase.

“John and his new team hit the ground running since we made the announcement of our closing on April 1 and the acquisition transferred, and we are really excited about the many things and the great expectations that lie ahead of our merchant segment,” Woods said.

Turning to the results of TSYS in 2015, Woods pointed out the double-digit financial growth in various areas by the company, its overall higher margins, and the robust “organic” increases in business it does with existing clients. That latter area, which is to include developing new products and services for current customers, is something the CEO wants to improve upon.

Woods also noted the shareholder return that TSYS has delivered to its investors, saying the firm’s stock was a top performer in 2015. He noted that more than 92 percent of available free cash flow was used to buy back common stock and pay dividends. He reiterated that the company will top $4 billion in total revenue for the first time in its history this year.

“I really want to thank the 11,500-plus workforce around the world who have worked tirelessly, and for their tremendous dedication and professionalism to make us the successful company that we are,” the CEO said.

Mentioning an effort the company embarked on last year, called “TSYS 20/20,” Woods told those gathered Thursday that he and fellow managers and employees are committed to an aggressive strategy for “sustained growth” in the coming years. The firm’s core business includes card processing for customers such as retailers, banks and other issuers, the merchant acquiring engine led by the TransFirst operation that is now transitioning into TSYS, and the firm’s prepaid card subsidiary NetSpend, which aims to develop more products and services in what has been called a growth industry.

“We see a future in which we’re unlocking ever greater opportunities for payment providers, businesses and consumers,” Woods said. “No other company in our space has such great promise and prospects. Today, I firmly believe we stand at the threshold of our greatest adventure as a company. We thank you for coming along for the ride.”

This story was originally published April 28, 2016 at 6:11 PM with the headline "TSYS CEO says firm has come long way since 1983, poised for rapid change and growth."