Slide 1: Alliance Data Fourth Quarter and Annual Results
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Alliance Data NYSE: ADS Fourth Quarter and Annual Results February 6, 2014 Exhibit 99.1
Slide 2: Agenda
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Agenda Speakers: Ed Heffernan President and CEO Charles Horn EVP and CFO Fourth Quarter and 2013 Consolidated Results Segment Results Liquidity 2013 Wrap-up 2014 Outlook 2014 Updated Guidance
Slide 3: Fourth Quarter and 2013 Consolidated Results
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Fourth Quarter and 2013 Consolidated Results (MM, except per share) Incremental warrants included in the diluted share count driven by the higher ADS average share price offset the drop in phanto
Slide 4: LoyaltyOne
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * LoyaltyOne (MM) Adjusted EBITDA increased 19 percent for the fourth quarter, despite unfavorable FX rates. AIR MILES reward miles issued increased 12 percent in the fourth quarter. Breakage rate
Slide 5: Epsilon
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Epsilon (MM) Organic revenue growth was 14 percent and 12 percent for the fourth quarter and full-year 2013, respectively. Backlog is currently up double-digits compared to last year, which shoul
Slide 6: Private Label Services and Credit
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Private Label Services and Credit (MM) Revenue increased 13 percent on a 14 percent increase in average card receivables for the fourth quarter. Provision expense increased 27 percent for the fou
Slide 7: Private Label Services and Credit key metrics
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Quarter ended December 31, Quarter ended December 31, Quarter ended December 31, Year ended December 31, Year ended December 31, Year ended December 31, 2013 2012 % Change 2013 2012 % Change Key
Slide 8: Liquidity
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Liquidity Liquidity Corporate: $1.3 billion in available liquidity at December 31, 2013 Debt levels remain moderate; leverage ratio of 2.0x at December 31, 2013 Banks: $2.5 billion of available l
Slide 9: 2013 Wrap-up
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * 2013 Wrap-up Consolidated: Strong organic and total revenue growth for 2013 Organic growth approximates 4 times Market & GDP growth rates Strong organic growth coupled with moderate M&A → mid-tee
Slide 10: 2013 Wrap-up by segment
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * 2013 Wrap-up Epsilon: (+) Strong organic (+12 percent) and total revenue growth (+39 percent) (+) Robust organic adj. EBITDA growth (13 percent) and margin expansion (100 basis points) (+) Streng
Slide 11: 2014 Updated Guidance
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * 2014 2014 Initial Guidance Updated Guidance Increase Average ADS share price $225 $260 $35 Revenue $4,640 $5,140 +$500 Adjusted EBITDA $1,575 $1,600 +$25 Core Earnings $738 $766 +$31 Diluted shar
Slide 12: 2014 Outlook Overall
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Overall Marketing dollars continue to flow into data-driven marketing and loyalty programs Addressable market is huge and more than one model will be successful ADS is well positioned in the mark
Slide 13: 2014 Outlook
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * 2014 Outlook Loyalty One: AIR MILES: flat revenue growth and low single-digits adjusted EBITDA growth - Dampened by very soft CDN$ and lower redemption rate - Somewhat weak economy as the Canadia
Slide 14: Q & A
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Q & A
Slide 15: Safe Harbor Statement and Forward-Looking Statements
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Safe Harbor Statement and Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sect
Slide 16: Financial Measures
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | February 6, 2014 * Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, s