COLUMBUS, Ohio, June 15, 2020 /PRNewswire/
-- Alliance Data Systems Corporation (NYSE: ADS), a
leading provider of data-driven marketing, loyalty and payment
solutions, provided an update on its Card Services segment.
In connection 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
May 31,
2020
|
|
For the
five
months
ended
May 31,
2020
|
|
(dollars in
thousands)
|
Average
receivables
|
$
|
15,948,311
|
|
$
|
17,524,597
|
Year over year change
in average receivables
|
|
(4)%
|
|
|
5%
|
Net
charge-offs
|
$
|
105,946
|
|
$
|
528,817
|
Net charge-offs as a
percentage of average receivables (1)
|
|
8.0%
|
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Compares to 6.3% and 6.4% for the month and five months ended May
31, 2019, respectively.
|
|
|
As
of
May 31,
2020
|
|
As
of
May 31,
2019
|
|
(dollars in
thousands)
|
30 days +
delinquencies - principal
|
$
|
727,841
|
|
$
|
809,035
|
Period ended
receivables - principal
|
$
|
15,139,495
|
|
$
|
16,241,546
|
Delinquency
rate
|
|
4.8%
|
|
|
5.0%
|
In response to the COVID-19 pandemic, in March 2020 the Company began to offer forbearance
programs to affected cardholders, which provide for short-term
modifications in the form of payment deferrals and late fee waivers
to borrowers who were current as of their most recent billing cycle
prior to the announcement of the forbearance programs. Those
accounts receiving forbearance relief may not advance to the next
delinquency cycle, including eventually to charge-off, in the same
timeframe that would have occurred had the forbearance relief not
been granted. Thus, delinquency rates may be impacted by the
forbearance relief granted in connection with the COVID-19
pandemic.
About Alliance Data
Alliance Data® (NYSE: ADS) is a leading provider of
data-driven marketing, loyalty and payment solutions serving large,
consumer-based industries. The Company creates and deploys
customized solutions that measurably change consumer behavior while
driving business growth and profitability for some of today's most
recognizable brands. Alliance Data helps its partners create and
increase customer loyalty across multiple touch points using
traditional, digital, mobile and emerging technologies. An S&P
500 and FORTUNE 500 company headquartered in Columbus, Ohio, Alliance Data consists of
businesses that together employ over 8,500 associates at more than
50 locations worldwide.
Alliance Data's Card Services business is a provider of
market-leading private label, co-brand, and business credit card
programs. LoyaltyOne® owns and operates the AIR
MILES® Reward Program, Canada's most recognized loyalty program, and
Netherlands-based BrandLoyalty, a
global provider of tailor-made loyalty programs for
grocers. More information about Alliance Data can be found at
www.AllianceData.com.
Follow Alliance Data on Twitter, Facebook, LinkedIn, Instagram
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, and
the guidance we give with respect to, our anticipated operating or
financial results, completion of strategic initiatives, future
dividend declarations, and future economic conditions, including,
but not limited to, fluctuation in currency exchange rates, market
conditions and COVID-19 impacts related to relief measures for
impacted borrowers and depositors, labor shortages due to
quarantine, reduction in demand from clients, supply chain
disruption for our reward suppliers and disruptions in the airline
or travel industries.
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