BREAD FINANCIAL HOLDINGS, INC. DALLAS, Oct. 13, 2017 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today provided an update on its Card Services segment.
In conjunction with the release of the Company's Master Trust Monthly Noteholder's Statement, the Company is releasing similar metrics for the overall total managed portfolio. The Master Trust data represents a subset of the Company's total managed portfolio, and the Company believes the information presented below provides a more complete view of the Card Services segment.
For the For the nine
month ended months ended
September 30, 2017 September 30, 2017
------------------ ------------------
(dollars in thousands)
Average receivables $16,005,018 $15,791,723
Year over year change in average receivables 12% 15%
Net charge-offs $54,395 $711,512
Net charge-offs as a percentage of average receivables(1)(2) 4.1% 6.0%
(1) Gross loss rates are tracking
slightly better than Management's
expectations of an approximate 50
basis point increase for full year
2017 as compared to 2016. In the
first half of 2017, gross loss
rates increased approximately 75
basis points, which narrowed to
essentially flat in the third
quarter, and which are expected to
improve in the fourth quarter, all
as compared to the prior year.
Net loss rates were 6.3% in the
first quarter, 6.2% in the second
quarter, 5.5% in the third quarter,
and are expected to be below 6% in
the fourth quarter. Net loss rates
are consistent with the Company's
full year 2017 and 2018
consolidated guidance as provided
in the Company's second quarter
earnings release issued July 20,
2017.
(2) Compares to 4.7% and 5.0% for the
month and nine months ended
September 30, 2016, respectively.
As of As of
September 30, 2017 September 30, 2016
------------------ ------------------
(dollars in thousands)
30 days + delinquencies - principal $846,332 $698,470
Period ended receivables - principal $15,581,645 $13,898,089
Delinquency rate 5.4% (1) 5.0%
(1) The delinquency rate as of September
30, 2017 was slightly elevated from
Management's expectations due to
assistance provided for cardholders
in FEMA-designated disaster areas
from recent hurricanes. Management
expects this negative impact to
dissipate in the fourth quarter.
About Alliance Data
Alliance Data(®) (NYSE: ADS) is a leading global provider of data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and emerging technologies. An S&P 500 and Fortune 500 company headquartered in Plano, Texas, Alliance Data consists of three businesses that together employ more than 17,000 associates at approximately 100 locations worldwide.
Alliance Data's card services business is a leading provider of marketing-driven branded credit card programs. Epsilon(®) is a leading provider of multichannel, data-driven technologies and marketing services, and also includes Conversant(®), a leader in personalized digital marketing. LoyaltyOne(®) owns and operates the AIR MILES(®) Reward Program, Canada's premier coalition loyalty program, and Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.
Investor information about Alliance Data's businesses may be found here.
Follow Alliance Data on Twitter, Facebook, LinkedIn and YouTube.
Forward-Looking Statements
This release 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 generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our expected operating results, future economic conditions including currency exchange rates and the guidance we give with respect to our anticipated financial performance.
We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K.
Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Contact: Investors/Analysts
------------------
Tiffany Louder
Alliance Data
214-494-3048
Tiffany.Louder@AllianceData.com
Media
-----
Shelley Whiddon
Alliance Data
214-494-3811
Shelley.Whiddon@AllianceData.com
View original content with multimedia:http://www.prnewswire.com/news-releases/alliance-data-provides-card-services-performance-update-for-september-2017-300536232.html
SOURCE Alliance Data Systems Corporation
