DALLAS, Nov. 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
October 31,
2017
|
|
For the
ten
months
ended
October 31,
2017
|
|
(dollars in
thousands)
|
Average
receivables.................................................................................................
|
$
|
16,615,174
|
|
$
|
15,874,068
|
Year over year change
in average
receivables....................................................
|
|
14%
|
|
|
15%
|
Net
charge-offs.........................................................................................................
|
$
|
86,590
|
|
$
|
798,103
|
Net charge-offs as a
percentage of average
receivables(1)(2)............................
|
|
6.3%
|
|
|
6.0%
|
|
|
|
|
|
|
(1)
Gross loss rates are tracking slightly better than 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, which narrowed
to essentially flat in the third quarter, and which are expected to
improve in the fourth quarter, all as compared to the prior
year.
|
|
Net loss rates were
6.3% in the first quarter, 6.2% in the second quarter, 5.5% in the
third quarter, and are expected to be between 5.5% to 5.7% for the
fourth quarter. Net loss rates and the expected impact of the
recent hurricanes are consistent with the Company's full year 2017
and 2018 consolidated guidance as provided in the Company's third
quarter earnings release issued October 19, 2017.
|
|
(2)
Compares to 5.5% and 5.1% for the month and ten months ended
October 31, 2016, respectively.
|
|
As
of
October 31,
2017
|
|
As
of
October 31,
2016
|
|
(dollars in
thousands)
|
30 days +
delinquencies -
principal.......................................................................
|
$
|
877,047
|
|
$
|
727,452
|
Period ended
receivables -
principal.....................................................................
|
$
|
16,727,543
|
|
$
|
14,330,509
|
Delinquency
rate......................................................................................................
|
|
5.2%(1)
|
|
|
5.1%
|
|
|
|
|
|
|
(1)
The delinquency rate as of October 31, 2017 was slightly elevated
from Management's expectations due to assistance provided for
cardholders in FEMA-designated disaster areas from recent
hurricanes. For those accounts impacted, the Company does not
re-age the accounts, but rather freezes the affected account
payment status. Management expects this negative impact to
dissipate in November. In addition, the acquisition of the Signet
portfolio in October benefitted the delinquency rate by less than
10 basis points.
|
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