Slide 1: Alliance Data Second Quarter Results
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Alliance Data NYSE: ADS Second Quarter ResultsJuly 17, 2014 Exhibit 99.1
Slide 2: Agenda
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Agenda Speakers: Ed Heffernan President and CEO Charles Horn EVP and CFO Bryan Kennedy EVP and President - EpsilonSecond Quarter 2014 Consolidated ResultsSegment ResultsLiquidity2014 OutlookRaising
Slide 3: Second Quarter 2014 Consolidated Results
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Second 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 stockholde
Slide 4: LoyaltyOne
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * LoyaltyOne (MM) BrandLoyalty contributed $136 million in revenue and $26 million ($16 million, net) in adjusted EBITDA.Unfavorable FX rates reduced revenue and adjusted EBITDA, net by $14 million an
Slide 5: Epsilon
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Epsilon (MM) Backlog remains up double digit compared to last year. Growth in the higher margin technology offering offset client on-boarding expenses (-$2.5 million) keeping adjusted EBITDA, net ma
Slide 6: Private Label Services and Credit
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Private Label Services and Credit (MM) Revenue increased 16 percent on a 17 percent increase in average credit card receivables. Operating expenses increased 15 percent for the second quarter, refle
Slide 7: Private Label Services and Credit key metrics
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 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 second quarter of 2013. N
Slide 8: Liquidity
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Liquidity LiquidityCorporate:$0.7 billion in usable liquidity at June 30, 2014$345 million convertible notes were cash settled for approximately $1.8 billion. Call options with counterparties result
Slide 9: 2014 Updated Guidance
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * 2013 2014 14/13 Actual New Guidance Increase Average ADS share price $192 $274* +$82 Revenue $4,319 $5,300 +23% Core Earnings $669 $768 +15% Diluted shares outstanding 66.9 62.2 -7% Core EPS $10.01
Slide 10: 2014 Updated Guidance - 2nd Half Acceleration
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * 2014 2014 2014 2014 2014 2014 2014 2014 2014 Q1 Q2 Q3 Q4 FY Core Earnings $185 $182 $195 $206 $768 Growth rates +7% +11% +11% +31% +15% Diluted shares outstanding 66.1 62.6 60.0 60.0 62.2 Core EPS $
Slide 11: 2014 Outlook
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * 2014 Outlook LoyaltyOne: BrandLoyalty driving high, double digit revenue and adjusted EBITDA, net growthAIR MILES: +3 percent revenue and adjusted EBITDA, net growth (constant currency)Positive tren
Slide 12: 2014 Outlook (cont.)
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Private Label: high-teens revenue with mid-teens adjusted EBITDA, net growthTender share growth continues; card sales growth double that of our clients’ total sales growthData-driven targeted market
Slide 13: Q & A
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 17, 2014 * Q & A
Slide 14: Safe Harbor Statement and Forward-Looking Statements
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 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 Section
Slide 15: Financial Measures
©2014 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | July 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, s