Slide 1: Alliance Data First Quarter Results
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Alliance Data NYSE: ADS First Quarter Results April 17, 2014 Exhibit 99.1
Slide 2: Agenda
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Agenda Speakers: Ed Heffernan President and CEO Charles Horn EVP and CFO Bryan Pearson EVP and President - LoyaltyOne First Quarter 2014 Consolidated Results Segment Results Liquidity 2014 Outlook
Slide 3: First Quarter 2014 Consolidated Results
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * First Quarter 2014 Consolidated Results (MM, except per share) Note: EPS is ‘net income attributable to ADS stockholders per diluted share’. Core EPS is ‘core earnings attributable to ADS stockhold
Slide 4: LoyaltyOne
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * LoyaltyOne (MM) BrandLoyalty contributed $112 million in revenue and $14 million ($9 million, net) in adjusted EBITDA. Unfavorable FX rates reduced revenue and adjusted EBITDA, net by $19 million a
Slide 5: LoyaltyOne BrandLoyalty
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * LoyaltyOne BrandLoyalty A leader in transactional and emotional loyalty creating change in consumer behavior through promotional campaign-driven loyalty programs Primarily offered through grocers C
Slide 6: Epsilon
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Epsilon (MM) Backlog remains up double-digit compared to last year. Client on boarding expenses (-$2 million) and severance (-$2 million) pressured adjusted EBITDA, net margins. Roll out of Harmony
Slide 7: Private Label Services and Credit
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Private Label Services and Credit (MM) Revenue increased 13 percent on a 15 percent increase in average credit card receivables. Operating expenses (primarily payroll) increased 26 percent for the
Slide 8: Private Label Services and Credit key metrics
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Private Label Services and Credit (MM) The decrease in gross yield is due to the influence of new programs. The yield for core programs was essentially flat compared to the first quarter of 2013. N
Slide 9: Liquidity
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Liquidity Liquidity Corporate: $1.1 billion in usable liquidity at March 31, 2014 $345 million convertible notes mature May 15, 2014 (~$1.9 billion* current fair value) Convertible noteholders will
Slide 10: 2014 Updated Guidance
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * 2013 2014 14/13 Actual New Guidance Increase Average ADS share price $192 $270* +$78 Revenue $4,319 $5,250 +22% Core Earnings $669 $766 +14% Diluted shares outstanding 66.9 62.5 -7% Core EPS $10.01
Slide 11: 2014 Outlook
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * 2014 Outlook LoyaltyOne: AIR MILES: revenue up low single-digits, adjusted EBITDA, net up mid single-digits (constant currency) Revenue dampened by lower redemption rate AIR MILES issuance goal of
Slide 12: Private Label: New client growth
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Private Label: New client growth Historically, 5 new clients per year (~$375 million A/R vintage) 2012: we signed our first $1 billion A/R vintage 2013: we signed our first $2 billion A/R vintage 2
Slide 13: 2014 Outlook (cont.)
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * No let up in shift of marketing dollars into data-driven marketing and loyalty programs. For Alliance Data, we have four objectives – 1. Organic revenue of approximately 9 percent or 3x GDP 2. Over
Slide 14: Q & A
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * Q & A
Slide 15: Safe Harbor Statement and Forward-Looking Statements
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 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 Sectio
Slide 16: Financial Measures
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | April 17, 2014 * 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,