Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Q3 2019 Earnings Presentation
13 slides from Bread Financial's earnings presentation, Oct 24, 2019
Slide 1: Alliance Data Third Quarter 2019 Results
Alliance Data NYSE: ADS Third Quarter 2019 ResultsOctober 24, 2019
Slide 2: Forward-Looking Statements
2 Forward-Looking StatementsThis presentation 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 b
Slide 3: Agenda
Agenda Speakers: Melisa Miller President and CEO Tim King EVP and CFO Business TransformationConsolidated ResultsSegment Results2019 Updated Guidance2020 Outlook 3
Slide 4: Business Transformation
Business Transformation Streamlined operating model ¢ Leaner, simpler business model © Human capital approach ¢ Automation and Al Differentiated value Marketing and loyalty expertise Data-driven solutions Expanded payment offerings Larger, more valuable programs Consistent, sustainable growth e Expa
Slide 5: Business Transformation – Card Services Portfolio
Business Transformation – Card Services Portfolio Tracking to end Q4 2019 with greater than $19.5bn in card receivables from growth in newer vintages and verticals. 5
Slide 6: Q3 2019 Consolidated Results
Q3, 2019 Consolidated Results(MM, except per share) 6 Quarter Ended September 30, 2019 2018 % Change Revenue $1,438 $1,423 1% Income from continuing operations $122 $289 -58% Income from continuing operations per diluted share (EPS) $2.41 $5.25 -54% Core earnings per diluted share (Core EPS) $5.05 $
Slide 7: Q3 2019 Segment Results
Quarter Ended September 30, 2019 2018 % Change Revenue: LoyaltyOne® $246 $260 -6% Card Services $1,192 $1,163 3% $1,438 $1,423 1% Adjusted EBITDA, net: LoyaltyOne $58 $63 -8% Card Services $328 $414 -21% Corporate/Other ($19) ($38) -51% $367 $439 -16% Q3, 2019 Segment Results(MM) 7 LoyaltyOne revenu
Slide 8: Q3 2019 Card Services Financial Results
Quarter Ended September 30, 2019 2018 % Change Revenue $1,192 $1,163 3% Operating Expenses $481 $481 —% Provision for Loan Losses $297 $197 51% Funding Costs $114 $100 14% Earnings before taxes $300 $385 -22% Adjusted EBITDA, net $328 $414 -21% Provision for Loan Losses was ~$100MM higher in 2019 du
Slide 9: Q3 2019 Card Services Key Metrics
Q3, 2019 Card Services Key Metrics 9 1 Normalized A/R, which includes held-for-sale receivables, and is the denominator and driver for revenue and operating expenses, was $19,299 versus $18,674 for Q3 2018, up 3%.2 Revenue divided by normalized card receivables.3 Excludes mark-to-market on held-for-
Slide 10: 2019 Updated Guidance
2019 Updated Guidance Pro forma core EPS assumes the full year benefit of share repurchases, debt retirement and company-wide cost savings.Headwinds creating pressure:Prime rate reductionsGreater than expected discount on a portion of held-for-sale portfoliosLower card receivables 10 2019G 2018A Rev
Slide 11: 2020 Outlook
2020 Outlook Consolidated PerformanceLower operating expenses with a streamlined operating modelRevenue up low-single digitsCore EPS mid- to high- 20% growthLoyaltyOne Consistent, stable performanceReduced cost structureCard ServicesRevenue up mid- to high-single digits as newer vintages continue to
Slide 12: Financial Measures
12 Financial MeasuresIn 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 EBITD
Slide 13: Q & A
Q & A 13
Alliance Data Systems — Q3 2019 Earnings Presentation on 6ix