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| 1 |
+
<table>
|
| 2 |
+
<tr>
|
| 3 |
+
<th></th>
|
| 4 |
+
<th colspan="4">Year Ended December 31,</th>
|
| 5 |
+
</tr>
|
| 6 |
+
<tr>
|
| 7 |
+
<th></th>
|
| 8 |
+
<th>2009</th>
|
| 9 |
+
<th>2008</th>
|
| 10 |
+
<th>$</th>
|
| 11 |
+
<th>%</th>
|
| 12 |
+
</tr>
|
| 13 |
+
<tr>
|
| 14 |
+
<td></td>
|
| 15 |
+
<td colspan="4">(in thousands, except percentages)</td>
|
| 16 |
+
</tr>
|
| 17 |
+
|
| 18 |
+
<tr>
|
| 19 |
+
<th colspan="5">Revenue:</th>
|
| 20 |
+
</tr>
|
| 21 |
+
<tr>
|
| 22 |
+
<td>LoyaltyOne ..................................................</td>
|
| 23 |
+
<td>$ 715,091</td>
|
| 24 |
+
<td>$ 755,546</td>
|
| 25 |
+
<td>$ (40,455)</td>
|
| 26 |
+
<td>(5.4)%</td>
|
| 27 |
+
</tr>
|
| 28 |
+
<tr>
|
| 29 |
+
<td>Epsilon ....................................................</td>
|
| 30 |
+
<td>$ 514,272</td>
|
| 31 |
+
<td>$ 499,998</td>
|
| 32 |
+
<td>$ 14,274</td>
|
| 33 |
+
<td>2.9%</td>
|
| 34 |
+
</tr>
|
| 35 |
+
<tr>
|
| 36 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 37 |
+
<td>$ 707,593</td>
|
| 38 |
+
<td>$ 762,305</td>
|
| 39 |
+
<td>$ (54,712)</td>
|
| 40 |
+
<td>(7.2)%</td>
|
| 41 |
+
</tr>
|
| 42 |
+
<tr>
|
| 43 |
+
<td>Corporate/Other ...........................................</td>
|
| 44 |
+
<td>$ 27,385</td>
|
| 45 |
+
<td>$ 16,405</td>
|
| 46 |
+
<td>$ 10,980</td>
|
| 47 |
+
<td>66.9%</td>
|
| 48 |
+
</tr>
|
| 49 |
+
<tr>
|
| 50 |
+
<td>Total .....................................................</td>
|
| 51 |
+
<td>$ 1,964,341</td>
|
| 52 |
+
<td>$ 2,025,254</td>
|
| 53 |
+
<td>$ (60,913)</td>
|
| 54 |
+
<td>(3.0)%</td>
|
| 55 |
+
</tr>
|
| 56 |
+
|
| 57 |
+
<tr>
|
| 58 |
+
<th colspan="5">Adjusted EBITDA (1):</th>
|
| 59 |
+
</tr>
|
| 60 |
+
<tr>
|
| 61 |
+
<td>LoyaltyOne ..................................................</td>
|
| 62 |
+
<td>$ 200,724</td>
|
| 63 |
+
<td>$ 204,895</td>
|
| 64 |
+
<td>$ (4,171)</td>
|
| 65 |
+
<td>(2.0)%</td>
|
| 66 |
+
</tr>
|
| 67 |
+
<tr>
|
| 68 |
+
<td>Epsilon ....................................................</td>
|
| 69 |
+
<td>$ 128,253</td>
|
| 70 |
+
<td>$ 126,558</td>
|
| 71 |
+
<td>$ 1,695</td>
|
| 72 |
+
<td>1.3%</td>
|
| 73 |
+
</tr>
|
| 74 |
+
<tr>
|
| 75 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 76 |
+
<td>$ 314,842</td>
|
| 77 |
+
<td>$ 369,960</td>
|
| 78 |
+
<td>$ (55,118)</td>
|
| 79 |
+
<td>(14.9)%</td>
|
| 80 |
+
</tr>
|
| 81 |
+
<tr>
|
| 82 |
+
<td>Corporate/Other ...........................................</td>
|
| 83 |
+
<td>$ 53,742</td>
|
| 84 |
+
<td>$(46,184)</td>
|
| 85 |
+
<td>$ 99,926</td>
|
| 86 |
+
<td>216.3%</td>
|
| 87 |
+
</tr>
|
| 88 |
+
<tr>
|
| 89 |
+
<td>Total .....................................................</td>
|
| 90 |
+
<td>$ 590,077</td>
|
| 91 |
+
<td>$ 655,229</td>
|
| 92 |
+
<td>$ (65,152)</td>
|
| 93 |
+
<td>(9.9)%</td>
|
| 94 |
+
</tr>
|
| 95 |
+
|
| 96 |
+
<tr>
|
| 97 |
+
<th colspan="5">Stock compensation expense:</th>
|
| 98 |
+
</tr>
|
| 99 |
+
<tr>
|
| 100 |
+
<td>LoyaltyOne ..................................................</td>
|
| 101 |
+
<td>$ 12,227</td>
|
| 102 |
+
<td>$ 12,611</td>
|
| 103 |
+
<td>$ (384)</td>
|
| 104 |
+
<td>(3.0)%</td>
|
| 105 |
+
</tr>
|
| 106 |
+
<tr>
|
| 107 |
+
<td>Epsilon ....................................................</td>
|
| 108 |
+
<td>$ 8,815</td>
|
| 109 |
+
<td>$ 8,853</td>
|
| 110 |
+
<td>$ (38)</td>
|
| 111 |
+
<td>(0.4)%</td>
|
| 112 |
+
</tr>
|
| 113 |
+
<tr>
|
| 114 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 115 |
+
<td>$ 8,199</td>
|
| 116 |
+
<td>$ 8,379</td>
|
| 117 |
+
<td>$ (180)</td>
|
| 118 |
+
<td>(2.1)%</td>
|
| 119 |
+
</tr>
|
| 120 |
+
<tr>
|
| 121 |
+
<td>Corporate/Other ...........................................</td>
|
| 122 |
+
<td>$ 24,371</td>
|
| 123 |
+
<td>$ 18,891</td>
|
| 124 |
+
<td>$ 5,480</td>
|
| 125 |
+
<td>29.0%</td>
|
| 126 |
+
</tr>
|
| 127 |
+
<tr>
|
| 128 |
+
<td>Total .....................................................</td>
|
| 129 |
+
<td>$ 53,612</td>
|
| 130 |
+
<td>$ 48,734</td>
|
| 131 |
+
<td>$ 4,878</td>
|
| 132 |
+
<td>10.0%</td>
|
| 133 |
+
</tr>
|
| 134 |
+
|
| 135 |
+
<tr>
|
| 136 |
+
<th colspan="5">Depreciation and amortization:</th>
|
| 137 |
+
</tr>
|
| 138 |
+
<tr>
|
| 139 |
+
<td>LoyaltyOne ..................................................</td>
|
| 140 |
+
<td>$ 21,772</td>
|
| 141 |
+
<td>$ 29,796</td>
|
| 142 |
+
<td>$ (8,024)</td>
|
| 143 |
+
<td>(26.9)%</td>
|
| 144 |
+
</tr>
|
| 145 |
+
<tr>
|
| 146 |
+
<td>Epsilon ....................................................</td>
|
| 147 |
+
<td>$ 69,941</td>
|
| 148 |
+
<td>$ 75,481</td>
|
| 149 |
+
<td>$ (5,540)</td>
|
| 150 |
+
<td>(7.3)%</td>
|
| 151 |
+
</tr>
|
| 152 |
+
<tr>
|
| 153 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 154 |
+
<td>$ 25,720</td>
|
| 155 |
+
<td>$ 20,902</td>
|
| 156 |
+
<td>$ 4,818</td>
|
| 157 |
+
<td>23.0%</td>
|
| 158 |
+
</tr>
|
| 159 |
+
<tr>
|
| 160 |
+
<td>Corporate/Other ...........................................</td>
|
| 161 |
+
<td>$ 7,853</td>
|
| 162 |
+
<td>$ 8,611</td>
|
| 163 |
+
<td>$ (758)</td>
|
| 164 |
+
<td>(8.8)%</td>
|
| 165 |
+
</tr>
|
| 166 |
+
<tr>
|
| 167 |
+
<td>Total .....................................................</td>
|
| 168 |
+
<td>$ 125,286</td>
|
| 169 |
+
<td>$ 135,790</td>
|
| 170 |
+
<td>$ (10,504)</td>
|
| 171 |
+
<td>(7.7)%</td>
|
| 172 |
+
</tr>
|
| 173 |
+
|
| 174 |
+
<tr>
|
| 175 |
+
<th colspan="5">Operating income from continuing operations:</th>
|
| 176 |
+
</tr>
|
| 177 |
+
<tr>
|
| 178 |
+
<td>LoyaltyOne ..................................................</td>
|
| 179 |
+
<td>$ 166,725</td>
|
| 180 |
+
<td>$ 162,488</td>
|
| 181 |
+
<td>$ 4,237</td>
|
| 182 |
+
<td>2.6%</td>
|
| 183 |
+
</tr>
|
| 184 |
+
<tr>
|
| 185 |
+
<td>Epsilon ....................................................</td>
|
| 186 |
+
<td>$ 49,497</td>
|
| 187 |
+
<td>$ 39,591</td>
|
| 188 |
+
<td>$ 9,906</td>
|
| 189 |
+
<td>25.0%</td>
|
| 190 |
+
</tr>
|
| 191 |
+
<tr>
|
| 192 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 193 |
+
<td>$ 280,923</td>
|
| 194 |
+
<td>$ 339,238</td>
|
| 195 |
+
<td>$ (58,315)</td>
|
| 196 |
+
<td>(17.2)%</td>
|
| 197 |
+
</tr>
|
| 198 |
+
<tr>
|
| 199 |
+
<td>Corporate/Other ...........................................</td>
|
| 200 |
+
<td>$(98,388)</td>
|
| 201 |
+
<td>$(39,857)</td>
|
| 202 |
+
<td>$ (58,531)</td>
|
| 203 |
+
<td>146.7%</td>
|
| 204 |
+
</tr>
|
| 205 |
+
<tr>
|
| 206 |
+
<td>Total .....................................................</td>
|
| 207 |
+
<td>$ 407,757</td>
|
| 208 |
+
<td>$ 501,460</td>
|
| 209 |
+
<td>$ (93,703)</td>
|
| 210 |
+
<td>(18.7)%</td>
|
| 211 |
+
</tr>
|
| 212 |
+
|
| 213 |
+
<tr>
|
| 214 |
+
<th colspan="5">Adjusted EBITDA margin (2):</th>
|
| 215 |
+
</tr>
|
| 216 |
+
<tr>
|
| 217 |
+
<td>LoyaltyOne ..................................................</td>
|
| 218 |
+
<td>28.1%</td>
|
| 219 |
+
<td>27.1%</td>
|
| 220 |
+
<td>1.0%</td>
|
| 221 |
+
<td></td>
|
| 222 |
+
</tr>
|
| 223 |
+
<tr>
|
| 224 |
+
<td>Epsilon ....................................................</td>
|
| 225 |
+
<td>24.9%</td>
|
| 226 |
+
<td>25.8%</td>
|
| 227 |
+
<td>(0.9)%</td>
|
| 228 |
+
<td></td>
|
| 229 |
+
</tr>
|
| 230 |
+
<tr>
|
| 231 |
+
<td>Private Label Services and Credit ..........................</td>
|
| 232 |
+
<td>44.5%</td>
|
| 233 |
+
<td>48.5%</td>
|
| 234 |
+
<td>(4.0)%</td>
|
| 235 |
+
<td></td>
|
| 236 |
+
</tr>
|
| 237 |
+
<tr>
|
| 238 |
+
<td>Total .....................................................</td>
|
| 239 |
+
<td>30.0%</td>
|
| 240 |
+
<td>32.4%</td>
|
| 241 |
+
<td>(2.4)%</td>
|
| 242 |
+
<td></td>
|
| 243 |
+
</tr>
|
| 244 |
+
|
| 245 |
+
<tr>
|
| 246 |
+
<th colspan="5">Segment operating data:</th>
|
| 247 |
+
</tr>
|
| 248 |
+
<tr>
|
| 249 |
+
<td>Private label statements generated ........................</td>
|
| 250 |
+
<td>130,176</td>
|
| 251 |
+
<td>125,197</td>
|
| 252 |
+
<td>4,979</td>
|
| 253 |
+
<td>4.0%</td>
|
| 254 |
+
</tr>
|
| 255 |
+
<tr>
|
| 256 |
+
<td>Credit sales ..............................................</td>
|
| 257 |
+
<td>$ 7,988,125</td>
|
| 258 |
+
<td>$ 7,242,422</td>
|
| 259 |
+
<td>$ 745,703</td>
|
| 260 |
+
<td>10.3%</td>
|
| 261 |
+
</tr>
|
| 262 |
+
<tr>
|
| 263 |
+
<td>Average credit card receivables ............................</td>
|
| 264 |
+
<td>$ 4,359,625</td>
|
| 265 |
+
<td>$ 3,915,658</td>
|
| 266 |
+
<td>$ 443,967</td>
|
| 267 |
+
<td>11.3%</td>
|
| 268 |
+
</tr>
|
| 269 |
+
<tr>
|
| 270 |
+
<td>AIR MILES reward miles issued ..............................</td>
|
| 271 |
+
<td>4,545,774</td>
|
| 272 |
+
<td>4,463,181</td>
|
| 273 |
+
<td>82,593</td>
|
| 274 |
+
<td>1.9%</td>
|
| 275 |
+
</tr>
|
| 276 |
+
<tr>
|
| 277 |
+
<td>AIR MILES reward miles redeemed ............................</td>
|
| 278 |
+
<td>3,326,307</td>
|
| 279 |
+
<td>3,121,799</td>
|
| 280 |
+
<td>204,508</td>
|
| 281 |
+
<td>6.6%</td>
|
| 282 |
+
</tr>
|
| 283 |
+
</table>
|