DALLAS, April 21, 2016 /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,
2016.
SUMMARY
|
Quarter Ended
March 31,
|
(in millions,
except per share amounts)
|
2016
|
2015
|
%
Change
|
Revenue
|
$1,676
|
$1,601
|
+5%
|
Net income
|
$ 159
|
$ 165
|
-4%
|
Net income
attributable to Alliance Data
stockholders
per diluted share ("EPS") (a)
|
$ 2.35
|
$ 2.32
|
+1%
|
Diluted shares
outstanding
|
60.2
|
63.6
|
-5%
|
*******************************
|
|
|
|
Supplemental Non-GAAP
Metrics (b):
|
|
|
|
Adjusted
EBITDA
|
$ 493
|
$ 474
|
+4%
|
Adjusted
EBITDA, net of funding costs and non-
controlling interest ("adjusted EBITDA, net") (a)
|
$ 440
|
$ 430
|
+2%
|
Core earnings
attributable to Alliance Data
stockholders per diluted share ("core EPS") (a)
|
$ 3.84
|
$ 3.65
|
+5%
|
|
|
|
|
(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.
|
CONSOLIDATED RESULTS
Revenue increased 5 percent to $1.68
billion while adjusted EBITDA, net increased 2 percent to
$440 million for the first quarter of
2016. EPS increased 1 percent to $2.35 and core EPS increased 5 percent to
$3.84 for the first quarter of 2016,
compared to guidance of $3.83.
Unfavorable foreign exchange rates reduced revenue and core EPS by
approximately 2 percent compared to the first quarter of
2015.
Ed Heffernan, president and chief
executive officer of Alliance Data, commented, "Consolidated
results were consistent with guidance, which called for revenue and
core EPS growth of 5 percent. Remember, the first quarter of 2016
is our toughest comparable of the year as both revenue and core EPS
increased 30 percent in the first quarter of 2015.
"Entering 2016, the two biggest concerns raised by stockholders
focused on the likelihood of higher loss rates at Card Services and
worsening economic conditions in Canada. Ironically, both were favorable during
the first quarter as loss rates came in slightly better than
expected (5.2 percent actual vs. 5.3 percent guidance), and
Canada produced its strongest
results in quite some time (4 percent revenue growth, 11 percent
adjusted EBITDA growth - both in constant currency - on 5 percent
issuance growth). Conversely, these positives were offset by softer
than expected results in the agency business at Epsilon and gross
yield compression in Card Services as early stage delinquencies
improved."
Heffernan continued, "Overall, we remain on-track to deliver on
our full-year objectives of $7.1
billion in revenues, up 10 percent, and $16.75 in core EPS, up 11 percent. We expect
revenue and earnings to accelerate as the year unfolds for several
reasons. First, gross yield compression at Card Services should
lessen each quarter as we anniversary several 'cardholder friendly'
program changes made last year. Second, loss rates are expected to
drift downwards from first-quarter highs. Third, BrandLoyalty has
passed its most difficult comparable (100 percent constant currency
revenue growth in first quarter of 2015). Fourth, Epsilon's Agency
weakness should lessen, coupled with a record backlog for
second-half delivery. And, finally, foreign exchange rates will
anniversary in the second quarter assuming no additional large
movements."
SEGMENT REVIEW
LoyaltyOne®: Revenue decreased 9
percent to $355 million, while
adjusted EBITDA increased 2 percent to $79
million for the first quarter of 2016. On a constant
currency basis, revenue decreased 2 percent, while adjusted EBITDA
increased 10 percent, compared to the first quarter of 2015.
AIR MILES® revenue and adjusted EBITDA increased 4
percent and 11 percent, respectively, on a constant currency basis,
driven by a favorable issuance mix increasing the revenue per mile
redeemed and strong cost controls. AIR MILES reward miles issued
increased 5 percent compared to the first quarter of 2015, largely
due to strength in the financial sponsor vertical. AIR MILES reward
miles redeemed increased 6 percent compared to the first quarter of
2015, as AM Cash, the instant reward program option, continues to
grow.
BrandLoyalty revenue decreased 9 percent, while adjusted EBITDA
increased 9 percent, on a constant currency basis. Revenue for the
first quarter of 2016 was negatively impacted by different timing
of customer programs between years, which should produce very
strong second quarter results, while adjusted EBITDA margins
expanded 300 basis points due to lower product procurement costs.
Importantly, North American expansion efforts continue to develop.
After successfully entering Canada
in 2015, one pilot program is underway in the U.S. with positive
early results, and a second is scheduled for later in the year.
Epsilon: Revenue decreased 2 percent to
$493 million, and adjusted EBITDA
decreased 22 percent to $81 million
for the first quarter of 2016. Digital & technology platforms
revenue increased a robust 8 percent to $362
million, driven by strength in CRM and the on-boarding of a
strong backlog. The backlog for CRM continues to grow as 15 new
clients have already been signed in 2016 with an annual contract
value of approximately $40 million.
Conversely, agency media & services revenue dropped 23 percent
from the prior year to $131 million
due to broad-based weakness, especially in the telco, CPG and
retail verticals. Adjusted EBITDA decreased $23 million from the first quarter of 2015,
primarily due to higher payroll costs as staffing levels increased
in anticipation of revenue that did not materialize.
Card Services: Revenue increased 17 percent to
$836 million and adjusted EBITDA, net
increased 9 percent to $308 million
for the first quarter of 2016.
Gross yields were 24.7 percent for the first quarter of 2016,
down approximately 200 basis points from the prior comparable
period. The decrease is due to the mix of co-brand to private label
receivables, acquired portfolios (Zales, Boscov's) that initially
have low yields due to fair value accounting, and fewer late fees
due to improvement in early-stage delinquency trends.
Operating expenses increased 18 percent to $308 million, or 9.1 percent of average
receivables compared to 9.8 percent in the first quarter of 2015,
indicating strong operating leverage. The loan loss provision
increased 27 percent to $172 million,
driven by strong growth in average card receivables and higher
principal loss rates. Portfolio funding costs were $48 million for the first quarter of 2016, or 1.4
percent of average credit card receivables, up 10 basis points from
the first quarter of 2015.
Credit sales increased 25 percent to $6.2
billion for the first quarter of 2016, supported by a 10
percent increase in core cardholder spending as tender share gains
of approximately 200 basis points continued. Average credit card
receivables increased 27 percent to $13.5
billion compared to the first quarter of 2015, while net
principal loss rates for the first quarter of 2016 were 5.2
percent, up 70 basis points from last year. The increase is
primarily due to account seasoning and lower recoveries.
During the first quarter of 2016, Card Services decided not to
renew two client programs set for expiration at the end of the
year. The related card receivables, less the allowance for loan
loss, net to approximately $415
million and have been reclassified to assets held for sale
on the accompanying balance sheet.
Guidance
Guidance for 2016 is $7.1 billion
in revenue, a 10 percent increase, and $16.75 in core EPS, an 11 percent increase, both
as compared to 2015.
Second quarter guidance is $1.62
billion in revenue, an 8 percent increase, and $3.58 in core EPS, an 8 percent increase, both as
compared to the second quarter of 2015. Growth rates are expected
to accelerate in the back-half of 2016.
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). 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. 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. These
metrics are an integral part of the Company's internal reporting to
measure the performance of reportable segments and the overall
effectiveness of senior management. Reconciliations to comparable
GAAP financial measures are available in the accompanying schedules
and on the Company's website. The financial measures presented are
consistent with the Company's historical financial reporting
practices. Core earnings and core earnings per diluted share
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 21, 2016 at 8:30 a.m. (Eastern Time) to discuss the Company's
first-quarter 2016 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 "80534680". The replay will be
available at approximately 11:45 a.m.
(Eastern Time) on Thursday, April 21,
2016.
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 16,000 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 holds a majority interest in 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 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,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Revenue
|
|
$
|
1,676.1
|
|
|
$
|
1,601.2
|
|
Operating
expenses:
|
|
Cost of
operations
|
|
|
1,031.5
|
|
|
|
1,020.2
|
|
Provision for loan
loss
|
|
|
171.9
|
|
|
|
134.9
|
|
Depreciation and
amortization
|
|
|
128.4
|
|
|
|
121.6
|
|
Total operating
expenses
|
|
|
1,331.8
|
|
|
|
1,276.7
|
|
Operating
income
|
|
|
344.3
|
|
|
|
324.5
|
|
Interest expense,
net:
|
|
Securitization funding
costs
|
|
|
30.4
|
|
|
|
23.8
|
|
Interest expense on
deposits
|
|
|
17.2
|
|
|
|
11.7
|
|
Interest expense on
long-term and other debt, net
|
|
|
51.2
|
|
|
|
42.5
|
|
Total interest
expense, net
|
|
|
98.8
|
|
|
|
78.0
|
|
Income before income
tax
|
|
$
|
245.5
|
|
|
$
|
246.5
|
|
Income tax
expense
|
|
|
86.6
|
|
|
|
81.7
|
|
Net income
|
|
$
|
158.9
|
|
|
$
|
164.8
|
|
Less: Net income
attributable to non-controlling interest
|
|
|
1.8
|
|
|
|
2.2
|
|
Net income
attributable to common stockholders
|
|
$
|
157.1
|
|
|
$
|
162.6
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
157.1
|
|
|
$
|
162.6
|
|
Less: Accretion of
redeemable non-controlling interest
|
|
|
15.9
|
|
|
|
15.2
|
|
Net income
attributable to common stockholders after accretion of redeemable
non-controlling interest
|
|
$
|
141.2
|
|
|
$
|
147.4
|
|
|
|
|
|
|
|
|
|
Denominator
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding – basic
|
|
|
59.8
|
|
|
|
63.1
|
|
Weighted average
shares outstanding - diluted
|
|
|
60.2
|
|
|
|
63.6
|
|
|
|
|
|
|
|
|
|
|
Basic – Net income
attributable to common stockholders
|
|
$
|
2.36
|
|
|
$
|
2.34
|
|
Diluted – Net income
attributable to common stockholders
|
|
$
|
2.35
|
|
|
$
|
2.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE DATA SYSTEMS
CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
March
31,
2016
|
|
December 31,
2015
(1)
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
970.0
|
|
$
|
1,168.0
|
|
Credit card and loan
receivables:
|
|
|
|
|
|
|
|
Credit card and loan
receivables
|
|
|
13,490.1
|
|
|
13,799.5
|
|
Allowance for loan
loss
|
|
|
(727.2)
|
|
|
(741.6)
|
|
Credit card and loan
receivables, net
|
|
|
12,762.9
|
|
|
13,057.9
|
|
Credit card and loan
receivables held for sale
|
|
|
507.4
|
|
|
95.5
|
|
Redemption settlement
assets, restricted
|
|
|
495.2
|
|
|
456.6
|
|
Intangible assets,
net
|
|
|
1,187.4
|
|
|
1,203.7
|
|
Goodwill
|
|
|
3,847.6
|
|
|
3,814.1
|
|
Other
assets
|
|
|
2,628.6
|
|
|
2,554.1
|
|
Total
assets
|
|
$
|
22,399.1
|
|
$
|
22,349.9
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
$
|
864.9
|
|
$
|
844.9
|
|
Deposits
|
|
|
6,082.6
|
|
|
5,605.9
|
|
Non-recourse
borrowings of consolidated securitization entities
|
|
|
6,324.1
|
|
|
6,482.7
|
|
Long-term and other
debt
|
|
|
5,524.2
|
|
|
5,017.4
|
|
Other
liabilities
|
|
|
1,669.7
|
|
|
2,221.6
|
|
Total
liabilities
|
|
|
20,465.5
|
|
|
20,172.5
|
|
Redeemable
non-controlling interest
|
|
|
192.4
|
|
|
167.4
|
|
Stockholders'
equity
|
|
|
1,741.2
|
|
|
2,010.0
|
|
Total liabilities and
equity
|
|
$
|
22,399.1
|
|
$
|
22,349.9
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect the
adoption of Accounting Standards Update ("ASU") 2015-03,
"Simplifying the
Presentation
of Debt Issuance Costs".
|
ALLIANCE DATA SYSTEMS
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
Net income
|
|
$
|
158.9
|
|
|
$
|
164.8
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
Depreciation and
amortization
|
|
|
128.4
|
|
|
|
121.6
|
|
Deferred income
taxes
|
|
|
(2.7)
|
|
|
|
(1.6)
|
|
Provision for loan
loss
|
|
|
171.9
|
|
|
|
134.9
|
|
Non-cash stock
compensation
|
|
|
19.9
|
|
|
|
27.5
|
|
Change in operating
assets and liabilities
|
|
|
(268.5)
|
|
|
|
(226.2)
|
|
Originations of loan
receivables held for sale
|
|
|
(1,623.0)
|
|
|
|
(1,373.2)
|
|
Sales of loan
receivables held for sale
|
|
|
1,621.4
|
|
|
|
1,343.8
|
|
Other
|
|
|
51.1
|
|
|
|
(16.9)
|
|
Net cash provided by
operating activities
|
|
|
257.4
|
|
|
|
174.7
|
|
|
|
Cash Flows from
Investing Activities:
|
|
Change in redemption
settlement assets
|
|
|
(8.0)
|
|
|
|
(12.6)
|
|
Change in restricted
cash
|
|
|
(312.2)
|
|
|
|
(0.7)
|
|
Change in credit card
and loan receivables
|
|
|
383.9
|
|
|
|
401.8
|
|
Purchase of credit
card receivables
|
|
|
(755.3)
|
|
|
|
—
|
|
Capital
expenditures
|
|
|
(54.9)
|
|
|
|
(42.4)
|
|
Other
|
|
|
(1.2)
|
|
|
|
(8.8)
|
|
Net cash (used in)
provided by investing activities
|
|
|
(747.7)
|
|
|
|
337.3
|
|
|
|
Cash Flows from
Financing Activities:
|
|
Borrowings under debt
agreements
|
|
|
1,712.9
|
|
|
|
1,001.7
|
|
Repayments of
borrowings
|
|
|
(1,227.2)
|
|
|
|
(334.4)
|
|
Issuances of
deposits
|
|
|
1,136.9
|
|
|
|
406.7
|
|
Repayments of
deposits
|
|
|
(659.5)
|
|
|
|
(669.8)
|
|
Non-recourse
borrowings of consolidated securitization entities
|
|
|
880.0
|
|
|
|
305.0
|
|
Repayments/maturities
of non-recourse borrowings of consolidated securitization
entities
|
|
|
(1,040.0)
|
|
|
|
(700.0)
|
|
Payment of
acquisition-related contingent consideration
|
|
|
—
|
|
|
|
(205.9)
|
|
Acquisition of
non-controlling interest
|
|
|
(102.0)
|
|
|
|
(87.4)
|
|
Purchase of treasury
shares
|
|
|
(408.8)
|
|
|
|
(542.6)
|
|
Other
|
|
|
(5.9)
|
|
|
|
15.0
|
|
Net cash provided by
(used in) financing activities
|
|
|
286.4
|
|
|
|
(811.7)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
5.9
|
|
|
|
(17.1)
|
|
Change in cash and
cash equivalents
|
|
|
(198.0)
|
|
|
|
(316.8)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
1,168.0
|
|
|
|
1,077.2
|
|
Cash and cash
equivalents at end of period
|
|
$
|
970.0
|
|
|
$
|
760.4
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE DATA SYSTEMS
CORPORATION
SUMMARY FINANCIAL HIGHLIGHTS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
Change
|
|
Segment
Revenue:
|
|
|
|
LoyaltyOne
|
|
$
|
354.6
|
|
$
|
388.0
|
|
|
(9)
|
|
%
|
Epsilon
|
|
|
493.3
|
|
|
504.9
|
|
|
(2)
|
|
|
Card
Services
|
|
|
835.5
|
|
|
714.7
|
|
|
17
|
|
|
Corporate/Other
|
|
|
0.1
|
|
|
0.1
|
|
|
nm
|
*
|
|
Intersegment
Eliminations
|
|
|
(7.4)
|
|
|
(6.5)
|
|
|
nm
|
*
|
|
Total
|
|
$
|
1,676.1
|
|
$
|
1,601.2
|
|
|
5
|
|
%
|
Segment Adjusted
EBITDA, net:
|
|
|
|
LoyaltyOne
|
|
$
|
73.7
|
|
$
|
69.6
|
|
|
6
|
|
%
|
Epsilon
|
|
|
80.7
|
|
|
103.6
|
|
|
(22)
|
|
|
Card
Services
|
|
|
307.5
|
|
|
281.8
|
|
|
9
|
|
|
Corporate/Other
|
|
|
(22.4)
|
|
|
(24.7)
|
|
|
(9)
|
|
|
Total
|
|
$
|
439.5
|
|
$
|
430.3
|
|
|
2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Indicators:
|
|
|
|
Credit card statements
generated
|
|
|
65.5
|
|
|
58.7
|
|
|
12
|
|
%
|
Credit
sales
|
|
$
|
6,178.2
|
|
$
|
4,959.8
|
|
|
25
|
|
%
|
Average
receivables
|
|
$
|
13,536.7
|
|
$
|
10,677.3
|
|
|
27
|
|
%
|
AIR MILES reward miles
issued
|
|
|
1,286.3
|
|
|
1,228.9
|
|
|
5
|
|
%
|
AIR MILES reward miles
redeemed
|
|
|
1,283.9
|
|
|
1,212.6
|
|
|
6
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* nm-not
meaningful
|
ALLIANCE DATA SYSTEMS
CORPORATION
RECONCILIATION OF NON-GAAP INFORMATION
(In millions, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Adjusted EBITDA
and Adjusted EBITDA, net:
|
|
Net income
|
|
$
|
158.9
|
|
|
$
|
164.8
|
|
Income tax
expense
|
|
|
86.6
|
|
|
|
81.7
|
|
Total interest
expense, net
|
|
|
98.8
|
|
|
|
78.0
|
|
Depreciation and other
amortization
|
|
|
39.8
|
|
|
|
33.6
|
|
Amortization of
purchased intangibles
|
|
|
88.6
|
|
|
|
88.0
|
|
Stock compensation
expense
|
|
|
19.9
|
|
|
|
27.5
|
|
Adjusted
EBITDA
|
|
$
|
492.6
|
|
|
$
|
473.6
|
|
Less: Funding
costs (1)
|
|
|
47.6
|
|
|
|
35.5
|
|
Less: Adjusted
EBITDA attributable to non-controlling interest
|
|
|
5.5
|
|
|
|
7.8
|
|
Adjusted EBITDA, net
of funding costs and non-controlling interest
|
|
$
|
439.5
|
|
|
$
|
430.3
|
|
|
|
Core
Earnings:
|
|
Net income
|
|
$
|
158.9
|
|
|
$
|
164.8
|
|
Add back: non-cash/
non-operating items:
|
|
|
|
|
|
|
|
|
Stock compensation
expense
|
|
|
19.9
|
|
|
|
27.5
|
|
Amortization of
purchased intangibles
|
|
|
88.6
|
|
|
|
88.0
|
|
Non-cash interest
expense (2)
|
|
|
6.4
|
|
|
|
5.9
|
|
Income tax effect
(3)
|
|
|
(38.9)
|
|
|
|
(48.2)
|
|
Core
earnings
|
|
$
|
234.9
|
|
|
$
|
238.0
|
|
Less: Core earnings
attributable to non-controlling interest
|
|
|
4.0
|
|
|
|
5.6
|
|
Core earnings
attributable to common stockholders
|
|
$
|
230.9
|
|
|
$
|
232.4
|
|
|
|
Weighted average
shares outstanding - diluted
|
|
|
60.2
|
|
|
|
63.6
|
|
Core earnings
attributable to common stockholders per share - diluted
|
|
$
|
3.84
|
|
|
$
|
3.65
|
|
|
|
|
(1) Represents interest expense on
deposits and securitization funding costs.
|
(2) Represents
amortization of debt issuance costs and mark-to-market gains on
interest rate derivatives.
|
(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, 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
|
|
|
|
Three Months Ended
March 31, 2015
|
|
|
|
LoyaltyOne
|
|
|
Epsilon
|
|
|
Card
Services
|
|
|
Corporate/
Other
|
|
|
Total
|
|
Operating income
(loss)
|
|
$
|
54.5
|
|
|
$
|
7.0
|
|
|
$
|
295.3
|
|
|
$
|
(32.3)
|
|
|
$
|
324.5
|
|
Depreciation and
amortization
|
|
|
19.9
|
|
|
|
81.2
|
|
|
|
18.3
|
|
|
|
2.2
|
|
|
|
121.6
|
|
Stock compensation
expense
|
|
|
3.0
|
|
|
|
15.4
|
|
|
|
3.7
|
|
|
|
5.4
|
|
|
|
27.5
|
|
Adjusted
EBITDA
|
|
|
77.4
|
|
|
|
103.6
|
|
|
|
317.3
|
|
|
|
(24.7)
|
|
|
|
473.6
|
|
Less: Funding
costs
|
|
|
—
|
|
|
|
—
|
|
|
|
35.5
|
|
|
|
—
|
|
|
|
35.5
|
|
Less: Adjusted EBITDA
attributable to
non‑controlling interest
|
|
|
7.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.8
|
|
Adjusted EBITDA,
net
|
|
$
|
69.6
|
|
|
$
|
103.6
|
|
|
$
|
281.8
|
|
|
$
|
(24.7)
|
|
|
$
|
430.3
|
|
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
|
Logo - http://photos.prnewswire.com/prnh/20051024/ADSLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alliance-data-reports-first-quarter-2016-results-300255049.html
SOURCE Alliance Data Systems Corporation