Green Dot Reports Q3 2011 Financial Results

October 27, 2011 04:12 PM Eastern Daylight Time 

MONROVIA, Calif.--(BUSINESS WIRE)--Green Dot Corporation (NYSE: GDOT), a leading prepaid financial services company, today reported financial results for the third quarter ended September 30, 2011.

“The continued robust growth in our key top-line metrics, including new cards activated, first time reloading customers, and gross dollar volume loaded through our network, all indicate that our products' value proposition is increasingly resonating in the marketplace.”

“We are pleased with our third quarter results. In Q3 we reported a 26% increase in non-GAAP total operating revenues to $119 million and a 26% increase in adjusted EBITDA to $31 million,” said Steve Streit, Green Dot's Chairman and Chief Executive Officer. “The continued robust growth in our key top-line metrics, including new cards activated, first time reloading customers, and gross dollar volume loaded through our network, all indicate that our products' value proposition is increasingly resonating in the marketplace."

GAAP financial results for the third quarter of 2011 compared to the third quarter of 2010:

• Total operating revenues on a generally accepted accounting principles (GAAP) basis increased 30% to $115.4 million for the third quarter of 2011 from $88.9 million for the third quarter of 2010
• GAAP net income increased 48% to $13.3 million for the third quarter of 2011 from $9.0 million for the third quarter of 2010
• GAAP basic and diluted earnings per common share were $0.32 and $0.30, respectively, for the third quarter of 2011 and $0.22 and $0.20, respectively, for the third quarter of 2010

Non-GAAP financial results for the third quarter of 2011 compared to the third quarter of 2010:¹

• Non-GAAP total operating revenues¹ increased 26% to $118.9 million for the third quarter of 2011 from $94.1 million for the third quarter of 2010
• Non-GAAP net income¹ increased 32% to $17.2 million for the third quarter of 2011 from $13.0 million for the third quarter of 2010
• Non-GAAP diluted earnings per share¹ were $0.39 for the third quarter of 2011 and $0.30 for the third quarter of 2010
• EBITDA plus employee stock-based compensation expense and stock-based retailer incentive compensation expense (adjusted EBITDA¹) increased 26% to $30.9 million for the third quarter of 2011 compared to $24.4 million for the third quarter of 2010

Key business metrics for the quarter ended September 30, 2011:

• Number of general purpose reloadable (GPR) debit cards activated was 1.96 million for the third quarter of 2011, an increase of 490,000, or 33%, over the third quarter of 2010
• Number of cash transfers was 8.87 million for the third quarter of 2011, an increase of 1.98 million, or 29%, over the third quarter of 2010
• Number of active cards at quarter end was 4.15 million, an increase of 870,000, or 27%, over the third quarter of 2010
• Gross dollar volume was $4.1 billion for the third quarter of 2011, an increase of $1.6 billion, or 63%, over the third quarter of 2010

Refer to the Company's Quarterly Report on Form 10-Q for a description of these key business metrics.