DALLAS, Sept. 15, 2017 /PRNewswire/
-- Alliance Data Systems Corporation (NYSE: ADS), a
leading global provider of data-driven marketing and loyalty
solutions, today provided an update on its Card Services
segment.
In conjunction with the release of the Company's Master Trust
Monthly Noteholder's Statement, the Company is releasing similar
metrics for the overall total managed portfolio. The Master Trust
data represents a subset of the Company's total managed portfolio,
and the Company believes the information presented below provides a
more complete view of the Card Services segment.
|
For
the
month
ended
August 31,
2017
|
|
For the
eight
months
ended
August 31,
2017
|
|
(dollars in
thousands)
|
Average
receivables
|
$
|
15,744,872
|
|
$
|
15,765,062
|
Year over year change
in average receivables
|
|
13%
|
|
|
16%
|
Net
charge-offs
|
$
|
84,113
|
|
$
|
657,117
|
Net charge-offs as a
percentage of average receivables(1)(2)
|
|
6.4%
|
|
|
6.3%
|
|
|
|
|
|
|
(1)
Gross loss rates are tracking to Management's expectations of an
approximate 50 basis point increase for full year 2017 as compared
to 2016. In the first half of 2017, gross loss rates increased
approximately 75 basis points and for the remainder of 2017, gross
loss rates are expected to narrow sequentially to approximately 40
basis points in the third quarter and flat in the fourth quarter,
as compared to the prior year.
|
|
Net loss rates are
expected to be lower in the second half of 2017 as compared to the
first half, with the absolute level dependent on the mix of
recoveries between third-party sales and in-house collections. As
compared to third-party sales, in-house collections may result in
higher recovery rates, but the timing of recognition may be delayed
as the Company increases its in-house collections staff. Net loss
rates are consistent with the Company's full year 2017 and 2018
consolidated guidance as provided in the Company's second quarter
earnings release issued July 20, 2017.
|
|
(2)
Compares to 4.1% and 5.0% for the month and eight months ended
August 31, 2016, respectively.
|
|
As
of
August 31,
2017
|
|
As
of
August 31,
2016
|
|
(dollars in
thousands)
|
30 days +
delinquencies - principal
|
$
|
811,285
|
|
$
|
671,499
|
Period ended
receivables - principal
|
$
|
15,312,030
|
|
$
|
13,594,095
|
Delinquency
rate
|
|
5.30%
|
|
|
4.94%
|
|
|
|
|
|
|
|
|
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.
Investor information about Alliance Data's businesses may be
found here.
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 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.
Contact:
|
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
|
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SOURCE Alliance Data Systems Corporation