Raises 2011 Guidance
DALLAS, July 21, 2011 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced results for the quarter ended June 30, 2011.
CONSOLIDATED RESULTS
Revenue increased 11 percent to $740 million and adjusted EBITDA increased 15 percent to $239 million for the second quarter of 2011. Net income per diluted share (EPS) increased 43 percent to $1.19, and core earnings per diluted share (core EPS) increased 27 percent to $1.75 for the second quarter of 2011, exceeding the Company's guidance of $1.60.
Diluted shares outstanding were 58.1 million for the second quarter of 2011, an increase of 1.3 million dilutive shares as compared to the second quarter of 2010. The assumed conversion of the Company's convertible senior notes and warrants, which varies based on the average per share price of the Company's common stock, added approximately 6.2 million to the diluted share count for the quarter ended June 30, 2011, an increase of 3.9 million compared to the second quarter of 2010. Of the assumed conversion shares, approximately 4.7 million shares for the quarter ended June 30, 2011 are covered by convertible note hedge agreements eliminating the Company's obligation to settle at maturity. Net repurchases of the Company's common stock reduced diluted shares outstanding by 2.6 million shares for the quarter ended June 30, 2011 partially mitigating the increase associated with the convertible senior notes and warrants.
Ed Heffernan, president and chief executive officer, commented, "During the second-quarter, we again delivered double-digit growth in revenue, adjusted EBITDA, and earnings-per-share reflecting continued momentum in all three business segments. Despite a sluggish economy, we are confident that our businesses will continue to perform well throughout 2011. As such, we are again raising core EPS guidance from $7.00 to $7.20 for the year."
Heffernan continued, "It has been a very productive second quarter and first half of 2011 as we have cleared many items from our plate. We completed major contract renewals with Victoria's Secret, Jean Coutu, and J.Crew. We signed new customers includingZale Canada and Sycle to long-term agreements and inked Banco do Brasil as an anchor sponsor to the dotz coalition program inBrazil. We achieved critical mass in our digital agency offering at Epsilon by acquiring Aspen Marketing Services. In addition, we expanded our international footprint by recently acquiring a minority ownership position in a leading loyalty marketing firm in India. Lastly, we bolstered our liquidity by closing on a new $1.6 billion credit facility at favorable market terms. With the bulk of our 2011 initiatives behind us, we are now focusing on 2012 and beyond."
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