April 26, 2012 07:00 AM Eastern Daylight Time
Vantiv Reports Strong First Quarter 2012 Results
CINCINNATI--()--Vantiv, Inc. (NYSE: VNTV) (Vantiv or “the Company”) today announced financial results for the first quarter ended March 31, 2012. Revenue increased 17% to $432.8 million as compared to $371.4 million in the prior year. Net revenue increased 23% to $232.6 million as compared to $189.2 million in the prior year. Cash net income increased 30% to $42.4 million as compared to $32.5 million in the prior year. Adjusted cash net income per share was $0.20. (See Schedule 2 for cash net income and Schedule 6 for GAAP net income reconciliation to cash net income.)Vantiv, Inc.
NYSE:VNTV
“We are focused on growing our comprehensive and integrated suite of services and diversifying our distribution channels to expand our market share. I also want to welcome our new shareholders. You can expect our team to continue to build on its accomplishments with a laser focus on creating long-term value.”
On a GAAP basis, net loss attributable to Vantiv, Inc. was $18.4 million, or $0.38 per diluted share, compared with net income of $3.5 million, or $0.04 per diluted share, in the prior year. GAAP net loss included $91.8 million, or $0.55 loss on a diluted per share basis, primarily related to charges incurred in connection with refinancing of indebtedness following the Company’s initial public offering.
Transactions increased 12% and net revenue increased 23% primarily driven by a 16% increase in transactions in the Merchant Services segment and a 17% increase in rate per transaction in the Merchant Services segment. Adjusted EBITDA increased 18% to $102.9 million as compared to $87.5 million in the prior year. (See Schedule 7 for reconciliation from GAAP income from operations to adjusted EBITDA.)
“I am very proud of the results that the 2,500 employees in our talented Vantiv team produced in this new era as a publicly traded company. Our successful IPO and first quarter results are a testament to our strong record of performance and our ability to create and capitalize on opportunities in this fast paced industry,” president and chief executive officer Charles Drucker said. “We are focused on growing our comprehensive and integrated suite of services and diversifying our distribution channels to expand our market share. I also want to welcome our new shareholders. You can expect our team to continue to build on its accomplishments with a laser focus on creating long-term value.”
Merchant Services
Net revenue increased 36% to $157.5 million as compared to $115.8 million in the prior year, primarily due to a 16% increase in transactions, as well as a 17% increase in net revenue per transaction. We continue to experience an increase in net revenue per transaction as we expand our channels and increase our focus on the small and mid-sized merchants. Sales and marketing expenses increased 36% to $66.7 million as compared to $48.9 million in the prior year in connection with the increase in revenue and continued expansion of distribution channels.
Financial Institution Services
Net revenue increased 2% to $75.1 million as compared to $73.5 million in the prior year, as organic revenue growth more than offset the attrition of a large client in the third quarter of 2011. Sales and marketing expenses decreased by 10%.
2012 Financial Outlook
Net revenue for 2012 is expected to be between $995 million and $1,010 million, representing an increase of 15% to 17% as compared to 2011. Cash net income is expected to be between $234 million and $242 million. Adjusted cash net income per share is expected to be between $1.09 and $1.13. GAAP net income per share is expected to be between $0.42 and $0.46 on a diluted per share basis.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss first quarter 2012 financial results today at 8:00 AM ET. Hosting the call will be Charles Drucker, president and chief executive officer and Mark Heimbouch, chief financial officer. The conference call can be accessed live over the phone by dialing (877) 941-1428, or for international callers (480) 629-9665. A replay will be available approximately two hours after the call concludes and can be accessed by dialing (877) 870-5176, or for international callers (858) 384-5517, and entering the conference ID 4532093. The replay will be available through Thursday, May 3, 2012. The call will be webcast live from the Company's investor relations website at http://investors.vantiv.com.
About Vantiv, Inc.
Vantiv, Inc. (NYSE: VNTV) is a leading, integrated payment processor differentiated by a single, proprietary technology platform. Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to merchants and financial institutions of all sizes in the U.S., enabling them to address their payment processing needs through a single provider. We build strong relationships with our customers, helping them become more efficient, more secure and more successful. Vantiv is the third largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. The company’s growth strategy includes expanding further into high growth payment segments, such as ecommerce, mobile, prepaid and information solutions, and attractive industry verticals, such as business-to-business, government, healthcare and education. For more information, visitwww.vantiv.com.
