Total Systems Services uses capital for acquisitions, share buybacks

By Lisa Kerner

Charlotte, N.C., March 24 - Total Systems Services, Inc. president and chief operating officer Troy Woods addressed questions about the company's use of capital at the Barclays Emerging Payments Forum in New York on Monday.

The company has about $40 million per month of free cash flow.

Woods said he doesn't see capital deployment as "either or." In 2013, the company completed a $1.4 billion acquisition and bought back about $100 million of stock.

Over the last three years, Total Systems has made $2 billion worth of acquisitions and bought back about $300 million of its stock.

"We want to be very consistent with a shareholder-friendly capital allocation strategy," said Woods.

Total Systems' first priority is mergers and acquisitions.

"If we can generate sustainable strong operating earnings, that's where our focus is," Woods said.

Share repurchase is second to that, with the goal of maintaining a "peer-competitive dividend yield."

When asked about leverage ratio, Woods said he thinks "we're very comfortable to increase our leverage" and that the high twos or low threes "would be our appetite."

Total Systems Services is a global payment solutions provider based in Columbus, Ga.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.