DALLAS, April 20, 2017 /PRNewswire/ -- Alliance Data
Systems Corporation (NYSE: ADS), a leading global provider of
data-driven marketing and loyalty solutions, today announced
results for the quarter ended March 31,
2017.
SUMMARY
|
Quarter Ended
March 31,
|
(in millions,
except per share amounts)
|
2017
|
2016
|
%
Change
|
Revenue
|
$1,879
|
$1,676
|
+12%
|
Net income
|
$
146
|
$
159
|
-8%
|
Net income
attributable to Alliance Data
stockholders
per diluted share ("EPS") (a)
|
$
2.58
|
$
2.35
|
+10%
|
Diluted shares
outstanding
|
56.7
|
60.2
|
-6%
|
*******************************
|
|
|
|
Supplemental Non-GAAP
Metrics (b):
|
|
|
|
Adjusted
EBITDA
|
$
501
|
$
493
|
+2%
|
Adjusted
EBITDA, net of funding costs and non-
controlling interest ("adjusted EBITDA, net") (a)
|
$
440
|
$
440
|
+0%
|
Core earnings
attributable to Alliance Data
stockholders per diluted share ("core EPS") (a)
|
$ 3.91
|
$
3.84
|
+2%
|
(a)
|
Profitability
measures shown above are net of amounts attributable to the
minority interest in
Netherlands-based BrandLoyalty, referred to as 'non-controlling
interest'.
|
(b)
|
See "Financial
Measures" below for a discussion of non-GAAP financial
measures.
|
Ed Heffernan, president and chief
executive officer of Alliance Data, commented, "We reported 12
percent revenue and 2 percent core EPS growth for the first quarter
of 2017, which was slightly better than our expectations for
high-single-digit revenue growth and flat core EPS. Additionally,
segment balance improved during the quarter as continued strong
growth at Card Services was accompanied by 7 percent revenue growth
at Epsilon - its strongest organic growth rate since the
fourth quarter of 2015. Our final segment, LoyaltyOne®,
remains on-track to return to solid growth by the third quarter of
2017, as we restore the lost profitability at AIR MILES®
resulting from the breakage estimate reset in the fourth quarter of
2016.
Heffernan continued, "Overall, our outlook for full-year 2017
results remains consistent, and all indications continue to support
our belief that a significant acceleration (or what I refer to as a
"slingshot") will occur in our core EPS growth rate as we move into
the back-half of 2017, and throughout 2018."
CONSOLIDATED RESULTS
Revenue increased 12 percent to $1.88
billion and EPS increased 10 percent to $2.58 for the first quarter of 2017. Adjusted
EBITDA, net was flat at $440 million,
while core EPS increased 2 percent to $3.91 for the first quarter of 2017.
SEGMENT REVIEW
LoyaltyOne: Revenue decreased 6 percent to
$333 million while adjusted EBITDA
decreased 26 percent to $59 million
for the first quarter of 2017, largely due to the breakage estimate
reset in the fourth quarter of 2016.
AIR MILES revenue decreased 6 percent to $181 million for the first quarter of 2017
primarily due to a 4 percent decrease in AIR MILES reward miles
redeemed. AIR MILES reward miles issued also decreased 4 percent,
primarily due to the timing of promotional activity by certain
sponsors, particularly around the Easter holiday which is later
than the previous year.
AIR MILES increased marketing spend during the first quarter of
2017 in order to stimulate both sponsor and collector engagement
following media coverage surrounding the expiration of points.
These campaigns, designed to renew excitement in the program and
re-engage passive collectors, have led to increased collector
activity with our sponsors in recent weeks.
BrandLoyalty revenue decreased 6 percent to $152 million. The decline is principally due to
timing as several clients shifted programs executed in the first
quarter of 2016 to later quarters in 2017.
Epsilon: Revenue increased 7 percent to
$529 million, and adjusted EBITDA
increased 5 percent to $85 million
for the first quarter of 2017. Adjusted EBITDA benefited from cost
controls implemented last year, which held the increase in payroll
and benefits expense during the quarter to 6 percent.
This was the strongest revenue growth quarter in five quarters
for Epsilon, driven by double-digit growth in three key product
offerings - Automotive, Agency and our digital CRM business powered
by Conversant, coming from a combination of both new wins as well
as strength in existing client relationships. Importantly, the
Technology Platform offering, which exited 2016 at a 13 percent
decline in the fourth quarter, narrowed to a 7 percent decline in
the first quarter, and is showing positive signs from the
introduction of more packaged offerings. The building backlog in
this product category through new client wins is expected to
support growth in coming quarters. Lastly, the Conversant Agency
business, which has muted overall revenue growth for the last nine
quarters, appears to be stabilizing, and now represents only 5
percent of Epsilon's revenue.
Card Services: Revenue increased 22 percent to
$1.0 billion and adjusted EBITDA, net
increased 8 percent to $331 million
for the first quarter of 2017.
Gross yields were 25.5 percent for the first quarter of 2017, up
approximately 80 basis points from the prior comparable period.
Operating expenses increased 3 percent to $316 million, or 7.9 percent of average
receivables, down 120 basis points compared to the first quarter of
2016. The loan loss provision increased 83 percent to $315 million for the first quarter of 2017,
driven by strong growth in average card receivables and higher
principal loss rates. Portfolio funding costs were $61 million for the first quarter of 2017, or 1.5
percent of average credit card receivables, up 12 basis points from
the first quarter of 2016.
Credit sales increased 6 percent to $6.6
billion for the first quarter of 2017, bolstered by over a
100 basis point increase in tender share. Average credit card
receivables, excluding amounts reclassified as assets held for
sale, increased 16 percent to $15.7
billion compared to the first quarter of 2016, while net
principal loss rates for the first quarter of 2017 were 6.3
percent, up 110 basis points from last year, primarily due to
account seasoning. The delinquency rate was 4.8 percent at
March 31, 2017, up 50 basis points
from the same time last year.
2017 Guidance
Annual guidance is for revenue of $7.7
billion and core EPS of $18.50.
Financial Measures
In addition to the results presented in accordance with
generally accepted accounting principles, or GAAP, the Company may
present financial measures that are non-GAAP measures, such as
constant currency financial measures, adjusted EBITDA, adjusted
EBITDA margin, adjusted EBITDA, net of funding costs and
non-controlling interest, core earnings and core earnings per
diluted share (core EPS). Constant currency excludes the impact of
fluctuations in foreign exchange rates. The Company calculates
constant currency by converting our current period local currency
financial results using the prior period exchange rates. The
Company uses adjusted EBITDA and adjusted EBITDA, net as an
integral part of internal reporting to measure the performance and
operational strength of reportable segments and to evaluate the
performance of senior management. Adjusted EBITDA eliminates the
uneven effect across all reportable segments of non-cash
depreciation of tangible assets and amortization of intangible
assets, including certain intangible assets that were recognized in
business combinations, and the non-cash effect of stock
compensation expense. Similarly, core earnings and core EPS
eliminate non-cash or non-operating items, including, but not
limited to, stock compensation expense, amortization of purchased
intangibles, amortization of debt issuance and hedging costs,
mark-to-market gains or losses on interest rate derivatives,
changes to the expiry policy and regulatory settlements. The
Company believes that these non-GAAP financial measures, viewed in
addition to and not in lieu of the Company's reported GAAP results,
provide useful information to investors regarding the Company's
performance and overall results of operations. Reconciliations to
comparable GAAP financial measures are available in the
accompanying schedules, which are posted as part of this earnings
release in both the News and Investors sections on the Company's
website (www.alliancedata.com). The financial measures presented
are consistent with the Company's historical financial reporting
practices. Core earnings and core EPS represent performance
measures and are not intended to represent liquidity measures. The
non-GAAP financial measures presented herein may not be comparable
to similarly titled measures presented by other companies, and are
not identical to corresponding measures used in other various
agreements or public filings.
Conference
Call
Alliance Data will host a conference call on Thursday, April 20, 2017 at 8:30 a.m. (Eastern Time) to discuss the Company's
first-quarter 2017 results. The conference call will be available
via the Internet at www.alliancedata.com. There will be several
slides accompanying the webcast. Please go to the website at least
15 minutes prior to the call to register, download and install any
necessary software. The recorded webcast will also be available on
the Company's website.
If you are unable to participate in the conference call, a
replay will be available. To access the replay, please dial (855)
859-2056 or (404) 537-3406 and enter "77386549". The replay will be
available at approximately 11:45 a.m.
(Eastern Time) on Thursday, April 20,
2017.
About Alliance Data
Alliance Data® (NYSE: ADS) is a leading global
provider of data-driven marketing and loyalty solutions serving
large, consumer-based industries. The Company creates and deploys
customized solutions, enhancing the critical customer marketing
experience; the result is measurably changing consumer behavior
while driving business growth and profitability for some of today's
most recognizable brands. Alliance Data helps its clients create
and increase customer loyalty through solutions that engage
millions of customers each day across multiple touch points using
traditional, digital, mobile and emerging technologies. An S&P
500 and Fortune 500 company headquartered in Plano, Texas, Alliance Data consists of three
businesses that together employ more than 17,000 associates at
approximately 100 locations worldwide.
Alliance Data's Card Services business is a leading provider of
marketing-driven branded credit card programs. Epsilon®
is a leading provider of multichannel, data-driven technologies and
marketing services, and also includes Conversant®, a
leader in personalized digital marketing. LoyaltyOne®
owns and operates the AIR MILES® Reward Program,
Canada's premier coalition loyalty
program, and Netherlands-based
BrandLoyalty, a global provider of tailor-made loyalty programs for
grocers.
Follow Alliance Data on Twitter, Facebook, LinkedIn and
YouTube.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements give our expectations or forecasts of future events and
can generally be identified by the use of words such as "believe,"
"expect," "anticipate," "estimate," "intend," "project," "plan,"
"likely," "may," "should" or other words or phrases of similar
import. Similarly, statements that describe our business strategy,
outlook, objectives, plans, intentions or goals also are
forward-looking statements. Examples of forward-looking
statements include, but are not limited to, statements we make
regarding our expected operating results, future economic
conditions including currency exchange rates, future dividend
declarations and the guidance we give with respect to our
anticipated financial performance.
We believe that our expectations are based on reasonable
assumptions. Forward-looking statements, however, are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from the projections, anticipated results or
other expectations expressed in this release, and no assurances can
be given that our expectations will prove to have been correct.
These risks and uncertainties include, but are not limited to,
factors set forth in the Risk Factors section in our Annual Report
on Form 10-K for the most recently ended fiscal year, which may be
updated in Item 1A of, or elsewhere in, our Quarterly Reports on
Form 10-Q filed for periods subsequent to such Form 10-K.
Our forward-looking statements speak only as of the date made,
and we undertake no obligation, other than as required by
applicable law, to update or revise any forward-looking statements,
whether as a result of new information, subsequent events,
anticipated or unanticipated circumstances or otherwise.
ALLIANCE DATA SYSTEMS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions, except
per share amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2017
|
|
2016
|
|
Revenue
|
|
$
|
1,879.0
|
|
$
|
1,676.1
|
Operating
expenses:
|
|
|
|
Cost of
operations
|
|
|
1,086.7
|
|
|
1,031.5
|
Provision for loan
loss
|
|
|
315.1
|
|
|
171.9
|
Depreciation and
amortization
|
|
|
124.8
|
|
|
128.4
|
Total operating
expenses
|
|
|
1,526.6
|
|
|
1,331.8
|
Operating
income
|
|
|
352.4
|
|
|
344.3
|
Interest expense,
net:
|
|
|
|
Securitization funding
costs
|
|
|
35.2
|
|
|
30.4
|
Interest expense on
deposits
|
|
|
26.0
|
|
|
17.2
|
Interest expense on
long-term and other debt, net
|
|
|
64.0
|
|
|
51.2
|
Total interest
expense, net
|
|
|
125.2
|
|
|
98.8
|
Income before income
tax
|
|
$
|
227.2
|
|
$
|
245.5
|
Income tax
expense
|
|
|
80.8
|
|
|
86.6
|
Net income
|
|
$
|
146.4
|
|
$
|
158.9
|
Less: Net income
attributable to non-controlling interest
|
|
|
-
|
|
|
1.8
|
Net income
attributable to common stockholders
|
|
$
|
146.4
|
|
$
|
157.1
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
146.4
|
|
$
|
157.1
|
Less: Accretion of
redeemable non-controlling interest
|
|
|
-
|
|
|
15.9
|
Net income
attributable to common stockholders after accretion
of redeemable non-controlling
interest
|
|
$
|
146.4
|
|
$
|
141.2
|
|
|
|
|
|
|
Denominator
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
56.4
|
|
|
59.8
|
Weighted average
shares outstanding - diluted
|
|
|
56.7
|
|
|
60.2
|
|
|
|
|
|
|
|
Basic - Net
income attributable to common stockholders
|
|
$
|
2.60
|
|
$
|
2.36
|
Diluted - Net income
attributable to common stockholders
|
|
$
|
2.58
|
|
$
|
2.35
|
ALLIANCE DATA SYSTEMS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
|
March
31,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,866.8
|
|
$
|
1,859.2
|
Credit card and loan
receivables:
|
|
|
|
|
|
|
Credit card and loan
receivables
|
|
|
15,762.0
|
|
|
16,543.9
|
Allowance for loan
loss
|
|
|
(1,020.2)
|
|
|
(948.0)
|
Credit card and loan
receivables, net
|
|
|
14,741.8
|
|
|
15,595.9
|
Credit card and loan
receivables held for sale
|
|
|
405.2
|
|
|
417.3
|
Redemption settlement
assets, restricted
|
|
|
513.0
|
|
|
324.4
|
Intangible assets,
net
|
|
|
934.7
|
|
|
1,003.3
|
Goodwill
|
|
|
3,808.6
|
|
|
3,800.7
|
Other
assets
|
|
|
2,372.6
|
|
|
2,513.3
|
Total
assets
|
|
$
|
24,642.7
|
|
$
|
25,514.1
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deferred
revenue
|
|
$
|
917.0
|
|
$
|
931.5
|
Deposits
|
|
|
8,205.3
|
|
|
8,391.9
|
Non-recourse
borrowings of consolidated securitization entities
|
|
|
6,191.8
|
|
|
6,955.4
|
Long-term and other
debt
|
|
|
6,273.6
|
|
|
5,601.4
|
Other
liabilities
|
|
|
1,691.5
|
|
|
1,975.7
|
Total
liabilities
|
|
|
23,279.2
|
|
|
23,855.9
|
Stockholders'
equity
|
|
|
1,363.5
|
|
|
1,658.2
|
Total liabilities and
stockholders' equity
|
|
$
|
24,642.7
|
|
$
|
25,514.1
|
ALLIANCE DATA SYSTEMS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
|
2016
(1)
|
|
|
|
Cash Flows from
Operating Activities:
|
Net income
|
|
$
|
146.4
|
|
|
$
|
158.9
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
Depreciation and
amortization
|
|
|
124.8
|
|
|
|
128.4
|
Deferred income
taxes
|
|
|
(12.2)
|
|
|
|
(2.7)
|
Provision for loan
loss
|
|
|
315.1
|
|
|
|
171.9
|
Non-cash stock
compensation
|
|
|
23.5
|
|
|
|
19.9
|
Amortization of
deferred financing costs
|
|
|
9.5
|
|
|
|
8.4
|
Change in operating
assets and liabilities
|
|
|
(150.7)
|
|
|
|
(245.8)
|
Originations of loan
receivables held for sale
|
|
|
(1,852.2)
|
|
|
|
(1,623.0)
|
Sales of loan
receivables held for sale
|
|
|
1,847.9
|
|
|
|
1,621.4
|
Other
|
|
|
35.4
|
|
|
|
42.7
|
Net cash provided by
operating activities
|
|
|
487.5
|
|
|
|
280.1
|
|
Cash Flows from
Investing Activities:
|
Change in redemption
settlement assets
|
|
|
(186.3)
|
|
|
|
(8.0)
|
Change in restricted
cash
|
|
|
(5.1)
|
|
|
|
(312.2)
|
Change in credit card
and loan receivables
|
|
|
523.5
|
|
|
|
383.9
|
Purchase of credit
card portfolios
|
|
|
-
|
|
|
|
(755.3)
|
Capital
expenditures
|
|
|
(46.6)
|
|
|
|
(54.9)
|
Other
|
|
|
(4.5)
|
|
|
|
(1.2)
|
Net cash provided by
(used in) investing activities
|
|
|
281.0
|
|
|
|
(747.7)
|
|
Cash Flows from
Financing Activities:
|
Borrowings under debt
agreements
|
|
|
1,763.2
|
|
|
|
1,712.9
|
Repayments of
borrowings
|
|
|
(1,098.9)
|
|
|
|
(1,227.2)
|
Issuances of
deposits
|
|
|
581.9
|
|
|
|
1,136.9
|
Repayments of
deposits
|
|
|
(770.6)
|
|
|
|
(659.5)
|
Non-recourse
borrowings of consolidated securitization entities
|
|
|
180.0
|
|
|
|
880.0
|
Repayments/maturities
of non-recourse borrowings of
consolidated securitization entities
|
|
|
(945.0)
|
|
|
|
(1,040.0)
|
Acquisition of
non-controlling interest
|
|
|
-
|
|
|
|
(102.0)
|
Purchase of treasury
shares
|
|
|
(415.0)
|
|
|
|
(408.8)
|
Dividends
paid
|
|
|
(29.0)
|
|
|
|
-
|
Other
|
|
|
(29.5)
|
|
|
|
(28.6)
|
Net cash (used in)
provided by financing activities
|
|
|
(762.9)
|
|
|
|
263.7
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
2.0
|
|
|
|
5.9
|
Change in cash and
cash equivalents
|
|
|
7.6
|
|
|
|
(198.0)
|
Cash and cash
equivalents at beginning of period
|
|
|
1,859.2
|
|
|
|
1,168.0
|
Cash and cash
equivalents at end of period
|
|
$
|
1,866.8
|
|
|
$
|
970.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted to reflect
the adoption of Accounting Standards Update ("ASU") 2016-09,
"Improvements to Employee Share-Based Payment Accounting." The
effect of the adoption of the standard was to increase cash flows
from operating activities by $22.7 million and to decrease cash
flows from financing activities by $22.7 million for the three
months ended March 31, 2016.
|
ALLIANCE DATA SYSTEMS
CORPORATION
|
SUMMARY FINANCIAL
HIGHLIGHTS
|
(In
millions)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
Segment
Revenue:
|
|
|
|
|
|
|
LoyaltyOne
|
|
$
|
333.1
|
|
$
|
354.6
|
|
(6)
|
|
%
|
Epsilon
|
|
|
529.4
|
|
|
493.3
|
|
7
|
|
|
Card
Services
|
|
|
1,023.2
|
|
|
835.5
|
|
22
|
|
|
Corporate/Other
|
|
|
-
|
|
|
0.1
|
|
nm
|
*
|
|
Intersegment
Eliminations
|
|
|
(6.7)
|
|
|
(7.4)
|
|
nm
|
*
|
|
Total
|
|
$
|
1,879.0
|
|
$
|
1,676.1
|
|
12
|
|
%
|
Segment Adjusted
EBITDA, net:
|
|
|
|
|
|
|
LoyaltyOne
|
|
$
|
58.7
|
|
$
|
73.7
|
|
(20)
|
|
%
|
Epsilon
|
|
|
85.0
|
|
|
80.7
|
|
5
|
|
|
Card
Services
|
|
|
330.7
|
|
|
307.5
|
|
8
|
|
|
Corporate/Other
|
|
|
(34.9)
|
|
|
(22.4)
|
|
56
|
|
|
Total
|
|
$
|
439.5
|
|
$
|
439.5
|
|
-
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Indicators:
|
|
|
|
|
|
|
Credit card statements
generated
|
|
|
72.2
|
|
|
65.5
|
|
10
|
|
%
|
Credit
sales
|
|
$
|
6,579.2
|
|
$
|
6,178.2
|
|
6
|
|
%
|
Average
receivables
|
|
$
|
15,685.4
|
|
$
|
13,536.7
|
|
16
|
|
%
|
AIR MILES reward miles
issued
|
|
|
1,235.9
|
|
|
1,286.3
|
|
(4)
|
|
%
|
AIR MILES reward miles
redeemed
|
|
|
1,226.3
|
|
|
1,283.9
|
|
(4)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE DATA SYSTEMS
CORPORATION
|
RECONCILIATION OF
NON-GAAP INFORMATION
|
(In millions, except
per share amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
|
|
Adjusted EBITDA
and Adjusted EBITDA, net:
|
Net income
|
|
$
|
146.4
|
|
|
$
|
158.9
|
Income tax
expense
|
|
|
80.8
|
|
|
|
86.6
|
Total interest
expense, net
|
|
|
125.2
|
|
|
|
98.8
|
Depreciation and other
amortization
|
|
|
44.7
|
|
|
|
39.8
|
Amortization of
purchased intangibles
|
|
|
80.1
|
|
|
|
88.6
|
Stock compensation
expense
|
|
|
23.5
|
|
|
|
19.9
|
Adjusted
EBITDA
|
|
$
|
500.7
|
|
|
$
|
492.6
|
Less: Funding
costs (1)
|
|
|
61.2
|
|
|
|
47.6
|
Less: Adjusted
EBITDA attributable to non-controlling interest
|
|
|
-
|
|
|
|
5.5
|
Adjusted EBITDA, net
of funding costs and non-controlling interest
|
|
$
|
439.5
|
|
|
$
|
439.5
|
|
Core
Earnings:
|
Net income
|
|
$
|
146.4
|
|
|
$
|
158.9
|
Add back: non-cash/
non-operating items:
|
|
|
|
|
|
|
|
Stock compensation
expense
|
|
|
23.5
|
|
|
|
19.9
|
Amortization of
purchased intangibles
|
|
|
80.1
|
|
|
|
88.6
|
Non-cash interest
(2)
|
|
|
10.2
|
|
|
|
6.4
|
Income tax effect
(3)
|
|
|
(38.3)
|
|
|
|
(38.9)
|
Core
earnings
|
|
$
|
221.9
|
|
|
$
|
234.9
|
Less: Core earnings
attributable to non-controlling interest
|
|
|
-
|
|
|
|
4.0
|
Core earnings
attributable to common stockholders
|
|
$
|
221.9
|
|
|
$
|
230.9
|
|
Weighted average
shares outstanding - diluted
|
|
|
56.7
|
|
|
|
60.2
|
Core earnings
attributable to common stockholders per share - diluted
|
|
$
|
3.91
|
|
|
$
|
3.84
|
|
|
(1)
|
Represents interest
expense on deposits and securitization funding costs.
|
(2)
|
Represents
amortization of debt issuance and hedging costs.
|
(3)
|
Represents the tax
effect for the related non-GAAP measure adjustments using the
expected effective tax rate for each respective period.
|
|
|
Three Months Ended
March 31, 2017
|
|
|
LoyaltyOne
|
|
|
Epsilon
|
|
|
Card
Services
|
|
|
Corporate/
Other
|
|
|
Total
|
Operating income
(loss)
|
|
$
|
37.4
|
|
|
$
|
(1.6)
|
|
|
$
|
363.1
|
|
|
$
|
(46.5)
|
|
|
$
|
352.4
|
Depreciation and
amortization
|
|
|
19.2
|
|
|
|
77.9
|
|
|
|
25.7
|
|
|
|
2.0
|
|
|
|
124.8
|
Stock compensation
expense
|
|
|
2.1
|
|
|
|
8.7
|
|
|
|
3.1
|
|
|
|
9.6
|
|
|
|
23.5
|
Adjusted
EBITDA
|
|
|
58.7
|
|
|
|
85.0
|
|
|
|
391.9
|
|
|
|
(34.9)
|
|
|
|
500.7
|
Less: Funding
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
61.2
|
|
|
|
-
|
|
|
|
61.2
|
Less: Adjusted EBITDA
attributable to
non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Adjusted EBITDA,
net
|
|
$
|
58.7
|
|
|
$
|
85.0
|
|
|
$
|
330.7
|
|
|
$
|
(34.9)
|
|
|
$
|
439.5
|
|
|
Three Months Ended
March 31, 2016
|
|
|
LoyaltyOne
|
|
|
Epsilon
|
|
|
Card
Services
|
|
|
Corporate/
Other
|
|
|
Total
|
Operating income
(loss)
|
|
$
|
55.7
|
|
|
$
|
(12.5)
|
|
|
$
|
331.3
|
|
|
$
|
(30.2)
|
|
|
$
|
344.3
|
Depreciation and
amortization
|
|
|
20.9
|
|
|
|
84.7
|
|
|
|
20.1
|
|
|
|
2.7
|
|
|
|
128.4
|
Stock compensation
expense
|
|
|
2.6
|
|
|
|
8.5
|
|
|
|
3.7
|
|
|
|
5.1
|
|
|
|
19.9
|
Adjusted
EBITDA
|
|
|
79.2
|
|
|
|
80.7
|
|
|
|
355.1
|
|
|
|
(22.4)
|
|
|
|
492.6
|
Less: Funding
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
47.6
|
|
|
|
-
|
|
|
|
47.6
|
Less: Adjusted EBITDA
attributable to
non-controlling interest
|
|
|
5.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.5
|
Adjusted EBITDA,
net
|
|
$
|
73.7
|
|
|
$
|
80.7
|
|
|
$
|
307.5
|
|
|
$
|
(22.4)
|
|
|
$
|
439.5
|
Contacts:
|
Investors/Analysts
|
|
Tiffany
Louder
|
|
Alliance
Data
|
|
214-494-3048
|
|
Tiffany.Louder@alliancedata.com
|
|
|
|
Media
|
|
Shelley
Whiddon
|
|
Alliance
Data
|
|
214-494-3811
|
|
Shelley.Whiddon@alliancedata.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alliance-data-reports-first-quarter-2017-results-300442412.html
SOURCE Alliance Data Systems Corporation