Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Q2 2019 Earnings Presentation
13 slides from Bread Financial's earnings presentation, Jul 18, 2019
Slide 1: Second Quarter 2019 Results
Alliance Data NYSE: ADS Second Quarter 2019 ResultsJuly 18, 2019
Slide 2: Forward-Looking Statements
11 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 generall
Slide 3: Agenda
Agenda Speakers: Rob Minicucci Board Chairman Melisa Miller President and CEO Tim King EVP and CFO Charles Horn EVP and Vice Chairman Consolidated ResultsSegment Results2019 Updated Guidance 1 3
Slide 4: Q2, 2019 Consolidated Results
Q2, 2019 Consolidated Results(MM, except per share) 2 4 Quarter Ended June 30, 2019 2018 % Change Revenue $1,348 $1,397 -3% Income from continuing operations $142 $224 -36% Income from continuing operations per diluted share (EPS) $2.71 $4.04 -33% Core EPS $3.83 $4.37 -12% Adjusted EBITDA $414 $457
Slide 5: Q2, 2019 Segment Results
Quarter Ended June 30, 2019 2018 % Change Revenue: LoyaltyOne® $251 $249 +1% Card Services $1,097 $1,148 -4% $1,348 $1,397 -3% Adjusted EBITDA, net: LoyaltyOne $51 $69 -27% Card Services $287 $336 -14% Corporate/Other ($28) ($40) $310 $365 -15% Q2, 2019 Segment Results(MM) 5 LoyaltyOne revenue incre
Slide 6: Q2, 2019 Card Services
Q2, 2019 Card Services 6 Quarter Ended June 30, 2019 2018 % Change Credit Sales $7,551 $7,568 0% Average Card Receivables 1 $16,798 $17,570 -4% End of Period Receivables $17,615 $17,985 -2% Total Gross Yield % 2 23.9% 24.9% -0.9% Operating Expense % 3 9.4% 9.1% +0.3% Principal Loss Rate 6.1% 6.4% -0
Slide 7: Q2, 2019 Card Services
Quarter Ended June 30, 2019 2018 % Change Revenue $1,097 $1,148 -4% Operating Expenses $472 $437 +8% Provision for Loan Losses $257 $312 -17% Funding Costs $105 $92 +14% Earnings before taxes $263 $307 -14% Adjusted EBITDA, net $287 $336 -14% Revenue is down due to timing of new program launches and
Slide 8: 2019 Updated Guidance
2019G 2018A Revenue $5.8bn $5.6bn +4% Core EPS Reported $19.50 to $19.75 $19.49 Flat to +1% Pro forma >$22.67 $22.72 2019 Updated Guidance 8 Reported core EPS assumes partial-year benefits from the $700 to $750 million modified “dutch auction” tender and completed cost reductions. Timing and share p
Slide 9: Card Services Outlook
Card Services Outlook 9 Tracking to end 2019 at greater than $20 billion in card receivablesCredit quality is stable and tracking to guidanceDeliberate investment in a wider range of healthy verticals2015 to 2019 signings now $5.6 billion in average receivables2015 to 2018 signings grew credit sales
Slide 10: Card Services Overview
Card Services Overview WHO WE ARE: The BRAND you trust behind the BRANDS you love. Over 30 years delivering customer loyalty through branded payment programs gaPNO BEHIND rye A) AllianceData. ma BRAND PARTNERS + Drive Top-Line Sates, + Expanded Customer Poo! + improved Retention 2-3x ‘more spend tha
Slide 11: Card Services Overview
Card Services Overview WHAT WE DO: Know More so our BRANDS can Sell More. Lead the market in the convergence of data, marketing and loyalty, and payments to drive brand growth ue to dover across a variety of verticals what they need to grow and thrive We skilfully mer for our leading brand partners.
Slide 12: Financial Measures
12 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 EB
Slide 13: Q & A
Q & A 13
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