* Achieved Double-Digit Cash Earnings per Share Growth *
Establishes 2010 Guidance DALLAS, Oct. 21 /PRNewswire-FirstCall/ --
Alliance Data Systems Corporation (NYSE:ADS), a leading provider of
loyalty and marketing solutions derived from transaction-rich data,
today announced results for the third quarter ended September 30,
2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )
Total third-quarter 2009 revenue of $483 million, adjusted EBITDA
of $141 million, net income of $46 million, and net income per
diluted share of $0.83 represented declines of 5 percent, 17
percent, 29 percent, and 11 percent, respectively, versus the third
quarter of 2008. Cash earnings per diluted share increased 15
percent to $1.40 from the prior year period, exceeding the
Company's guidance of $1.34 for the quarter. See "Financial
Measures" below for a discussion of adjusted EBITDA, cash earnings
per diluted share and other non-GAAP financial measures. Excluding
changes in the foreign exchange rate for the Canadian dollar,
revenue would have been $493 million, representing a 4-percent
decline; adjusted EBITDA would have been $144 million, representing
a 15-percent decline; and cash earnings per diluted share would
have increased 18 percent to $1.44, in each case compared to the
third quarter of 2008. The Company has faced three major headwinds
in 2009, which on a full-year basis compared to the prior year, are
as follows: higher year-over-year loss rates resulting in a $90
million reduction in adjusted EBITDA; interest only strip grow-over
of $30 million related to the Company's securitization program; and
foreign exchange rate fluctuations resulting in a $40 million
reduction in adjusted EBITDA. In total, the full-year impact
equates to a $160 million reduction in adjusted EBITDA, or an
approximate $1.75 impact to cash earnings per diluted share. Ed
Heffernan, president and chief executive officer of Alliance Data,
commented, "In light of these headwinds, I am pleased with the
Company's third-quarter performance, including solid double-digit
cash earnings per diluted share growth. Of equal note were the
positive trends related to our key metrics that continued to
develop during the quarter, providing even more encouraging news.
"In our Loyalty Services segment, specifically our Canadian AIR
MILES® Reward Program, our key cash flow metric, miles issued,
continued to ramp up from a 4-percent decline in the first quarter
and a 2-percent decline in the second quarter to a positive
3-percent growth rate in the third quarter and is still
accelerating. In our Private Label Credit business, the growth rate
in credit sales has moved from a negative performance in 2008 to
growth of 3 percent, 6 percent and 13 percent in the first, second
and third quarters of 2009, respectively. Most encouraging, this is
the first quarter of double-digit credit sales growth in three
years. Also, despite rising unemployment levels, our credit losses
have remained stable for six consecutive months. Epsilon has had a
record number of signings this year, which will drive growth in
2010, and its database business continues to expand as demand for
these services grows." SEGMENT REVIEW Loyalty Services: On a
constant currency basis, revenue was flat to the prior year period
($187 million for the third quarter of 2009 versus $188 million in
the prior year period). Segment revenue, as reported in U.S.
dollars, was $177 million, or a 6-percent decrease from the third
quarter of 2008. On a constant currency basis, adjusted EBITDA
continued at a strong pace, growing 14 percent to $56 million
versus $49 million in the prior year period. Results continue to be
driven by prior years' strong issuance growth combined with firm
pricing, virtually 100 percent client retention, a fully built-out
infrastructure and strong leverage on reward costs. On a constant
currency basis, adjusted EBITDA margin expanded to 30 percent,
reflecting continued leverage in the program and operating EBITDA
added $10 million of cash flow above the reported adjusted EBITDA.
AIR MILES reward miles issued, a key metric driving future
earnings, rebounded in the third quarter with growth of 3 percent
versus declines of 4 percent and 2 percent during the first and
second quarters of 2009, respectively, in each case compared to the
prior year period. The recently announced launch of BMO Bank of
Montreal's significantly increased value proposition was largely
responsible for the quick return to positive growth in reward miles
issued during the quarter. Growth is expected to further accelerate
in the fourth quarter of 2009 as the business anniversaries its
first soft quarter in reward miles issued. AIR MILES reward miles
redeemed returned to positive growth of 6 percent in the third
quarter of 2009 versus negative performance in the second quarter
of 2009, in each case as compared to the prior year quarter,
suggesting that Canadian collectors have become more secure with
the macroeconomic environment and have returned to more typical
redemption behavior. We expect this trend to continue, leading to
further redemption growth in the fourth quarter. Epsilon Marketing
Services: Epsilon had a relatively flat third quarter with revenue
up slightly to $132 million versus $131 million in the prior year
period while adjusted EBITDA decreased to $35 million versus $40
million in the prior year period reflecting weakness in our data
business due to the recession. The fourth quarter is expected to
deliver solid growth and Epsilon remains on track to deliver single
digit growth for the year. During the year, signings continued to
move ahead at a record pace with large full-service wins, as well
as renewals across a wide variety of verticals including
pharmaceutical (Astra-Zeneca), not-for-profit (National
Geographic), CPG (R.J. Reynolds), and B-to-B (Reed Business
Information). This trend is expected to drive higher growth going
forward. Private Label Services and Private Label Credit: The
financial performance of the Private Label Services and Private
Label Credit businesses continued to impact the Company's overall
performance. For the third quarter of 2009, Private Label Services
revenue was up 2 percent while adjusted EBITDA was down 10 percent,
each versus the prior year period. Private Label Credit revenue and
adjusted EBITDA were down 9 percent and 30 percent, respectively,
versus the prior year period. On a combined basis, eliminating
intercompany activity between the two, Private Label revenue (which
is net of funding costs and credit losses) of $169 million was down
approximately $17 million, or 9 percent, compared to the prior year
period. Likewise, combined adjusted EBITDA was down $21 million, or
23 percent, from the third quarter 2008. The driver of the decline
is attributed to higher year-over-year credit losses, which rose to
9.4 percent in the third quarter versus 7.0 percent in the prior
year period, a $26 million headwind. Against these financial
headwinds, encouraging trends have started to emerge in Private
Label. First, while credit losses were up 240 basis points versus
the prior year period, they have remained stable for six
consecutive months despite rising unemployment. This stability is
expected to extend into the fourth quarter, which would result in a
year-over-year headwind of only 100 basis points in the fourth
quarter with the spread continuing to narrow into 2010.
Furthermore, credit sales growth for the third quarter was
double-digit for the first time in three years. The portfolio
posted 12-percent growth in the quarter, with more than adequate
funding and liquidity remaining available. Private Label is
expected to return to positive performance in the fourth quarter.
Specifically, the modest year-over-year deterioration in expected
credit losses should be more than offset by earnings generated by
double-digit credit sales and portfolio growth combined with the
expected addition of the Charming Shoppes files. Other Matters The
third quarter results include a $12 million tax benefit.
Historically, the Company has maintained tax reserves to cover
various uncertain tax positions, including the potential impact
related to the recognition of certain taxable income. Based on
recent tax rulings and other factors, there is no longer
uncertainty around this taxable income recognition and, as such,
the related reserve is no longer required. The resolution of these
uncertain tax positions will yield a $4 million on-going annual tax
benefit, which will reduce our effective tax rate going forward.
For the third quarter of 2009, the Company's business performance
combined with this tax benefit produced strong over-performance
which enabled the Company to reinvest in certain opportunities.
This includes completing a $1 billion TALF deal that locked down
long-term fixed rate money and enhanced visibility, while
effectively trading off short-term 2-percent funding for the
benefits of longer-term 4-percent funding. Also, the Company
incurred funding costs associated with our international coalition
efforts. In addition, the Company reduced its activity in its share
repurchase program effort resulting in a higher outstanding share
count than originally projected. The Company very recently received
approval from the regulatory authorities to complete the Company's
purchase of the Charming Shoppes private label programs and the
associated portfolios. The Company expects to close the transaction
shortly. Capital Structure Since the beginning of the share
repurchase program in 2008, the Company has repurchased
approximately 37 percent, or 30 million shares, of its shares
outstanding for approximately $1.5 billion. During the third
quarter of 2009, the Company spent approximately $100 million on
share repurchases. Approximately $300 million remains available
under the current repurchase program. The Company's net core debt
to LTM operating EBITDA ratio is less than 2.5x as of quarter-end,
well within the Company's target level of 3x. FULL-YEAR 2009
OUTLOOK The Company continues to face three major headwinds this
year: higher credit losses, foreign exchange rate fluctuations and
an interest only strip gain grow-over. Credit loss rates are up
over 200 basis points since 2008, equating to $90 million, followed
by impacts from foreign exchange and an interest only strip gain
grow-over of $40 million and $30 million, respectively. In total,
these headwinds equate to $160 million of adjusted EBITDA, or $1.75
of cash earnings per diluted share. Despite this, the Company is
projecting strong double-digit earnings per share growth for the
year of approximately $5.15 cash earnings per diluted share.
Importantly, the Company has seen stability in credit losses over
the past six months despite rising unemployment levels.
Additionally, the Company's foreign exchange and interest only
strip gain headwinds will anniversary by year-end. FULL-YEAR 2010
OUTLOOK The Company looks to enter 2010 with these 2009 headwinds
largely behind it. The Company expects the Private Label businesses
to return to growth, Epsilon to accelerate in its growth, and the
Canadian AIR MILES Reward Program to generate strong free cash flow
as reward miles issued, which turned positive in the third quarter,
continue to ramp up. Finally, the Company's share repurchase
program has removed over one-third of shares outstanding from the
market in 2008 and 2009 at advantageous prices. Included in our
guidance are three items which will somewhat moderate 2010 results.
Specifically, while the AIR MILES Reward Program's key metrics and
cash flows will grow strongly, 2010 reported results will initially
be soft compared to the prior year, reflecting the weak issuance
from fourth quarter 2008 through 2009. However, free cash flow
should be quite strong. In addition, the Company's recently
announced coalition loyalty program in Brazil will incur start-up
expenses, albeit at a moderate level. Finally, the Company will
continue to increase earnings visibility by opportunistically
trading off benefits from lower interest rates on short-term
funding in return for long-term fixed rate funding. In conclusion,
with the major headwinds largely gone, Private Label making a
positive contribution and a lower outstanding share count, the
Company believes that in 2010 it will continue its track record of
solid double-digit growth in cash earnings per diluted share, as
well as mark the return to meaningful organic growth in both
revenue and adjusted EBITDA. The Company's initial 2010 guidance is
approximately $2.15 billion of revenue, $650 million of adjusted
EBITDA and $6.00 in cash earnings per diluted share. Guidance
reflects the anticipated dampening influences noted above, and
assumes stability in the macroeconomic environment. Guidance does
not factor in any significant improvement in consumer spending or
credit quality. Financial Measures In addition to the results
presented in accordance with generally accepted accounting
principles, or GAAP, the Company presents financial measures that
are non-GAAP measures, such as constant currency financial
measures, adjusted EBITDA, operating EBITDA, cash earnings and cash
earnings per diluted share. Constant currency eliminates the effect
of foreign currency fluctuations. These non-GAAP financial measures
exclude the loss associated with the sale of the Mail Services
business unit, costs associated with the terminated merger with
affiliates of The Blackstone Group and other costs. The Company
believes that these non-GAAP financial measures, viewed in addition
to and not in lieu of the Company's reported GAAP results, provide
useful information to investors regarding the Company's performance
and overall results of operations. These metrics are an integral
part of the Company's internal reporting to measure the performance
of reportable segments and the overall effectiveness of senior
management. Reconciliations to comparable GAAP financial measures
are available in the accompanying schedules and on the Company's
website. The financial measures presented are consistent with the
Company's historical financial reporting practices. The non-GAAP
financial measures presented herein may not be comparable to
similarly titled measures presented by other companies, and are not
identical to corresponding measures used in our various agreements
or public filings. Conference Call Alliance Data will host a
conference call on October 21, 2009 at 5:00 p.m. (Eastern) to
discuss the Company's third-quarter results. The conference call
will be available via the Internet at http://www.alliancedata.com/.
There will be several slides accompanying the webcast. Please go to
the website at least 15 minutes prior to the call to register,
download and install any necessary software. The recorded webcast
will also be available on the Company's website. If you are unable
to participate in the conference call, a replay will be available.
To access the replay, please dial 706-645-9291 and enter
"34559518". The replay will be available from two hours after the
end of the call until 11:59 P.M. (Eastern Time) on October 28,
2009. About Alliance Data Alliance Data (NYSE:ADS) and its family
of businesses is a leading provider of loyalty and marketing
solutions derived from transaction-rich data. Through the creation
and deployment of customized solutions that measurably change
consumer behavior, Alliance Data helps its clients to create and
enhance customer loyalty to build stronger, mutually beneficial
relationships with their customers. The Company manages millions of
customer relationships for some of North America's largest and most
recognizable brands, helping them grow their businesses and drive
profitability. Headquartered in Dallas, Alliance Data employs
approximately 7,000 associates at approximately 50 locations
worldwide. Alliance Data is a leading provider of marketing-driven
credit solutions, and is the parent company of Epsilon®, a leading
provider of multi-channel, data-driven technologies and marketing
services, and LoyaltyOne(TM), which owns and operates the AIR
MILES® Reward Program, Canada's premier coalition loyalty program.
For more information about the company, visit its web site,
http://www.alliancedata.com/. Alliance Data's Safe Harbor
Statement/Forward Looking Statements This release may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements may
use words such as "anticipate," "believe," "estimate," "expect,"
"intend," "predict," "project" and similar expressions as they
relate to us or our management. When we make forward-looking
statements, we are basing them on our management's beliefs and
assumptions, using information currently available to us. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, these forward-looking statements are
subject to risks, uncertainties and assumptions, including those
discussed in our filings with the Securities and Exchange
Commission. If one or more of these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be
incorrect, actual results may vary materially from what we
projected. Any forward-looking statements contained in this
presentation reflect our current views with respect to future
events and are subject to these and other risks, uncertainties and
assumptions relating to our operations, results of operations,
growth strategy and liquidity. We have no intention, and disclaim
any obligation, to update or revise any forward-looking statements,
whether as a result of new information, future results or
otherwise. "Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this presentation
regarding Alliance Data Systems Corporation's business which are
not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report on Form 10-K for the most
recently ended fiscal year. Risk factors may be updated in Item 1A
in each of the Company's Quarterly Reports on Form 10-Q for each
quarterly period subsequent to the Company's most recent Form 10-K.
ALLIANCE DATA SYSTEMS CORPORATION SUMMARY FINANCIAL HIGHLIGHTS (In
millions, except per share amounts) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2009 2008 Change 2009
2008 Change Revenue $483.2 $511.2 (5) % $1,423.9 $1,517.7 (6) %
Income from continuing operations $45.8 $58.9 (22) % $118.2 $183.6
(36) % Net income $45.8 $64.8 (29) % $103.1 $161.1 (36) % Income
from continuing operations per share - diluted $0.83 $0.85 (2) %
$2.04 $2.41 (15) % Net income per share - diluted $0.83 $0.93 (11)
% $1.78 $2.12 (16) % Adjusted EBITDA $141.4 $170.0 (17) % $418.1
$496.5 (16) % Operating EBITDA $151.7 $185.0 (18) % $446.5 $529.6
(16) % Cash Earnings $77.1 $85.0 (9) % $205.8 $247.5 (17) % Cash
Earnings per share - diluted $1.40 $1.22 15 % $3.55 $3.24 10 % As
of As of September 30, December 31, 2009 2008 Cash and cash
equivalents $449.6 $156.9 Seller's interest and credit card
receivables 776.4 639.6 Redemption settlement assets 592.3 531.6
Intangible assets, net 259.7 297.8 Goodwill 1,162.4 1,133.8 Total
assets $4,898.6 $4,342.0 Deferred revenue $1,130.1 $995.6
Certificates of deposit 1,179.9 688.9 Debt(1) 1,811.9 1,491.3 Total
liabilities 4,666.2 3,794.7 Stockholders' equity $232.4 $547.3 (1)
Excludes certificates of deposit. Included in debt is a discount of
$314.5 million and $235.9 million as of September 30, 2009 and
December 31, 2008, respectively, associated with the Company's
adoption of an accounting standard associated with its convertible
debt. ALLIANCE DATA SYSTEMS CORPORATION SUMMARY FINANCIAL
HIGHLIGHTS (In millions) (Unaudited) Three Months Ended Nine Months
Ended September 30, September 30, 2009 2008 Change 2009 2008 Change
Segment Revenue: Loyalty Services $177.0 $187.7 (6)% $505.0 $559.5
(10)% Epsilon Marketing Services 131.9 130.8 1% 372.5 361.6 3%
Private Label Services 96.8 94.7 2% 281.0 285.0 (1)% Private Label
Credit 165.2 182.4 (9)% 507.9 579.0 (12)% Corporate/Other 5.8 7.7
Nm 28.9 9.8 Nm Intersegment (93.5) (92.1) 2% (271.4) (277.2) (2)%
$483.2 $511.2 (5)% $1,423.9 $1,517.7 (6)% Segment Adjusted EBITDA:
Loyalty Services $53.1 $49.0 8% $146.4 $143.3 2% Epsilon Marketing
Services 35.2 40.1 (12)% 87.7 90.2 (3)% Private Label Services 27.5
30.5 (10)% 82.0 87.4 (6)% Private Label Credit 41.7 59.7 (30)%
138.1 210.4 (34)% Corporate/Other (16.1) (9.3) Nm (36.1) (34.8) Nm
$141.4 $170.0 (17)% $418.1 $496.5 (16)% Key Performance Indicators:
Private label statements generated 31.3 30.7 2% 94.6 93.3 1%
Average managed receivables $4,301.2 $3,840.2 12% $4,262.7 $3,859.5
10% Private label credit sales $1,921.6 $1,694.1 13% $5,474.7
$5,096.0 7% AIR MILES reward miles issued 1,169.5 1,137.7 3%
3,278.3 3,300.6 (1)% AIR MILES reward miles redeemed 777.4 736.8 6%
2,321.4 2,224.7 4% Nm-Not Meaningful ALLIANCE DATA SYSTEMS
CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (In
millions, except per share amounts) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2009 2008 2009 2008
Total revenue $483.2 $511.2 $1,423.9 $1,517.7 Total operating
expenses 388.4 391.4 1,144.6 1,165.2 Operating income 94.8 119.8
279.3 352.5 Interest expense, net 39.0 23.4 105.2 54.4 Income from
continuing operations before income taxes 55.8 96.4 174.1 298.1
Income tax expense 10.0 37.5 55.9 114.5 Income from continuing
operations 45.8 58.9 118.2 183.6 Income (loss) from discontinued
operations, net of taxes - 5.9 (15.1) (22.5) Net income $45.8 $64.8
$103.1 $161.1 Per share data: Basic - Income from continuing
operations $0.87 $0.87 $2.08 $2.47 Basic - Income (loss) from
discontinued operations - 0.09 (0.27) (0.30) Basic - Net income
$0.87 $0.96 $1.81 $2.17 Diluted - Income from continuing operations
$0.83 $0.85 $2.04 $2.41 Diluted - Income (loss) from discontinued
operations - 0.08 (0.26) (0.29) Diluted - Net income $0.83 $0.93
$1.78 $2.12 Weighted average shares outstanding - basic 52.8 67.4
56.9 74.2 Weighted average shares outstanding - diluted 55.1 69.7
58.0 76.3 ALLIANCE DATA SYSTEMS CORPORATION RECONCILIATION OF
NON-GAAP INFORMATION (In millions, except per share amounts)
(Unaudited) Three Months Ended Nine Months Ended September 30,
September 30, Adjusted EBITDA and 2009 2008 2009 2008 Operating
EBITDA: Income from continuing operations (GAAP measure) $45.8
$58.9 $118.2 $183.6 Stock compensation expense 14.6 17.2 43.3 31.2
Income tax expense 10.0 37.5 55.9 114.5 Interest expense, net 39.0
23.4 105.2 54.4 Depreciation and other amortization 15.4 17.4 45.8
52.7 Amortization of purchased intangibles 15.7 16.7 45.8 50.7 Loss
on sale of assets - - - 1.1 Merger and other costs 0.9 (1.1) 3.9
8.3 Adjusted EBITDA 141.4 170.0 418.1 496.5 Change in deferred
revenue(1) 101.7 (37.6) 134.5 313.4 Change in redemption settlement
assets(1) (67.6) 28.9 (60.7) (327.1) Foreign currency impact (23.8)
23.7 (45.4) 46.8 Operating EBITDA $151.7 185.0 $446.5 $529.6 Cash
Earnings: Income from continuing operations (GAAP measure) $45.8
$58.9 $118.2 $183.6 Add back non-cash non-operating items and
merger and other costs: Stock compensation expense 14.6 17.2 43.3
31.2 Amortization of purchased intangibles 15.7 16.7 45.8 50.7
Non-cash interest expense(2) 17.7 8.3 43.8 9.2 Loss on the sale of
assets - - - 1.1 Merger and other costs 0.9 (1.1) 3.9 8.3 Income
tax effect(3) (17.6) (15.0) (49.2) (36.6) Cash earnings $77.1 85.0
$205.8 $247.5 Weighted average shares outstanding - diluted 55.1
69.7 58.0 76.3 Cash earnings per share - diluted $1.40 $1.22 $3.55
$3.24 (1) Increases to deferred revenue and redemption settlement
assets in 2008 from a transaction completed with the Bank of
Montreal in the second quarter of 2008. (2) Represents amortization
of imputed interest expense associated with our convertible debt
and related amortization of debt issuance costs. (3) Represents
income taxes adjusted for the related tax benefit or expense for
the non-GAAP measure adjustments. ALLIANCE DATA SYSTEMS CORPORATION
RECONCILIATION OF SEGMENT ADJUSTED EBITDA (In millions) (Unaudited)
Three Months Ended September 30, 2009 Merger and Depreciation Stock
Other Non- Operating and Compensation Routine Adjusted Income
Amortization Expense Costs EBITDA(1) Loyalty Services $43.4 $5.9
$3.8 $- $53.1 Epsilon Marketing Services 15.5 18.0 1.7 - 35.2
Private Label Services 23.7 2.4 1.4 - 27.5 Private Label Credit
38.1 3.3 0.3 - 41.7 Corporate/Other (25.9) 1.5 7.4 0.9 (16.1) $94.8
$31.1 $14.6 $0.9 $141.4 Three Months Ended September 30, 2008
Merger and Depreciation Stock Other Non- Operating and Compensation
Routine Adjusted Income Amortization Expense Costs EBITDA(1)
Loyalty Services $38.0 $7.0 $4.0 $- $49.0 Epsilon Marketing
Services 17.9 18.7 3.5 - 40.1 Private Label Services 26.0 2.2 2.3 -
30.5 Private Label Credit 56.2 3.0 0.5 - 59.7 Corporate/Other
(18.3) 3.2 6.9 (1.1) (9.3) $119.8 $34.1 $17.2 $(1.1) $170.0 Nine
Months Ended September 30, 2009 Merger and Depreciation Stock Other
Non- Operating and Compensation Routine Adjusted Income
Amortization Expense Costs EBITDA(1) Loyalty Services $120.4 $15.9
$10.1 $- $146.4 Epsilon Marketing Services 29.0 51.8 6.9 - 87.7
Private Label Services 69.9 7.0 5.1 - 82.0 Private Label Credit
126.4 10.4 1.3 - 138.1 Corporate/Other (66.4) 6.5 19.9 3.9 (36.1)
$279.3 $91.6 $43.3 $3.9 $418.1 Nine Months Ended September 30, 2008
Merger and Depreciation Stock Other Non- Operating and Compensation
Routine Adjusted Income Amortization Expense Costs EBITDA(1)
Loyalty Services $111.2 $23.7 $8.4 $- $143.3 Epsilon Marketing
Services 25.8 56.7 5.1 2.6 90.2 Private Label Services 74.9 6.7 4.3
1.5 87.4 Private Label Credit 200.5 8.6 1.3 - 210.4 Corporate/Other
(59.9) 7.7 12.1 5.3 (34.8) $352.5 $103.4 $31.2 $9.4 $496.5 (1)
Represents segment adjusted EBITDA and is equal to operating income
plus depreciation, amortization, stock compensation expense, merger
and other costs and loss on the sale of assets.
http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGODATASOURCE:
Alliance Data Systems Corporation CONTACT: Investors/Analysts,
Julie Prozeller, FD, +1-212-850-5721, ; Media, Shelley Whiddon,
Alliance Data, +1-972-348-4310, , Laura Novak, FD, +1-212-850-5682,
Web Site: http://www.alliancedata.com/
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