Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Q1 2018 Earnings Presentation
11 slides from Bread Financial's earnings presentation, Apr 19, 2018
Slide 1: First Quarter 2018 Results
Alliance Data NYSE: ADS First Quarter 2018 ResultsApril 19, 2018
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: Ed Heffernan President and CEO Charles Horn EVP and CFO Consolidated ResultsSegment ResultsCredit Metrics2018 Guidance 1 3
Slide 4: First Quarter 2018 Consolidated Results
First Quarter 2018 Consolidated Results(MM, except per share) 2 4 Quarter Ended March 31 , 2018 2017 % Change Revenue $ 1,884 $ 1,879 --% Pro forma revenue1 $ 1,963 $ 1,879 +4% Net income $ 164 $ 146 +12% EPS $ 2.95 $ 2.58 +14% Core EPS $ 4.44 $ 3.91 +13% Adjusted EBITDA $ 525 $ 501 +5% Adjusted EBI
Slide 5: First Quarter 2018 Segment Results
Quarter Ended March 31, 2018 2017 % Change Revenue: LoyaltyOne® $ 226 $ 333 ASC 606 adjustment 79 -- Change to net revenue presentation Pro forma 305 333 -8% Epsilon® 509 529 -4% Weakness in Agency offering Card Services 1,155 1,023 +13% Other (6) (6) $ 1,963 $ 1,879 +4% Adjusted EBITDA, net: Loyalt
Slide 6: Credit Metrics
Credit Metrics (MM) Quarter Ended March 31, 2018 2017 Change Credit sales $ 6,806 $ 6,579 +3% Average card receivables $ 17,722 $ 15,685 +13% Total gross yield 24.8% 25.5% -0.7% Operating expenses as % of average card receivables 8.8% 7.9% +0.9% Principal loss rates 6.7% 6.3% +0.4% Delinquency rate
Slide 7: Credit Metrics: Q1 Loss Rate Bridge
50 bps 15 bps Q1 17 Recovery Rates(Timing) Hurricanes -25 bps 6.3% CreditNormalization 6.7% Q1 18 Net loss rates were elevated in Q1 primarily due to shift to internal recovery of charged-off accounts (timing). Credit Metrics Q1 Loss Rate Bridge 7
Slide 8: 2018 Guidance
8 2018 Guidance Consolidated 2017 2018 Revenue $7.72 BN $8.35 BN +8% Pro forma Revenue $7.72 BN $8.70 BN +12% Core EPS $ 19.35 $22.50 - $23.00 +16 to 19% Growth Rates by Quarter Q1 (Act) Q2 (Guide) Revenue --% Mid-single Pro forma Revenue +4% Low-double Core EPS +13% Mid-teens
Slide 9: 2018 Guidance by Segment
High single-digit pro forma revenue, low double-digit adjusted EBITDA growthBrandLoyalty returns to strong double-digit growth in Q2AIR MILES issued was essentially flat in Q1, 2018 and trending to solid back-half growthMid-single-digit revenue and adjusted EBITDA growthMid-teens revenue and adjuste
Slide 10: Financial Measures
12 10 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 11: Q & A
Q & A 11
Alliance Data Systems — Q1 2018 Earnings Presentation on 6ix