DALLAS, May 7 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation
(NYSE: ADS), a leading provider of transaction-based loyalty and marketing
services, today announced that its board of directors has reinstituted the
Company's stock repurchase program, authorizing the Company to buy back up to
approximately $500 million of its outstanding common stock. The repurchase
program was announced in October of 2006, extending repurchase programs
announced in June and October of 2005 and authorizing a combined repurchase of
up to $900 million of the Company's common stock through 2008. Approximately
$500 million remains available under the repurchase program, which was
suspended in May of 2007 as required by the merger agreement then in effect
with affiliates of The Blackstone Group. The merger agreement was terminated
on April 18, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )
Concurrent with the reinstitution of the repurchase program, the Company
is undertaking a full review of its capital structure in order to determine,
among other things, an appropriate level of leverage going forward. Decisions
regarding capital structure are expected to be made over the next few months,
and the Company's guidance will be adjusted as appropriate.
Ed Heffernan, Alliance Data's chief financial officer, said "Following the
termination of the merger agreement, our focus has been on two items that we
believe are critical for future success - liquidity and earnings visibility.
Our recently completed financing arrangements give the Company record levels
of liquidity, with approximately $2 billion in immediately available excess
capacity. We currently expect that Alliance Data could secure an additional
$1.5 - $2.0 billion in capacity while maintaining an investment grade profile
by levering up from approximately 1x to 3x. Operating free cash flow plus
cash from non-core asset dispositions would further add to this capacity."
With respect to earnings visibility, notwithstanding the difficult macro-
economic environment, the Company recently announced its 28th consecutive
quarter of meeting or beating expectations. The Company expects this trend to
continue as a result of earnings growth rate acceleration throughout the year.
"With the Company's liquidity at record levels and a positive outlook for
earnings, we are pleased to have the repurchase program back in place and are
now reviewing the Company's capital structure in order to determine
appropriate uses of cash, levels of leverage and other factors that will
create value for our stockholders," continued Mr. Heffernan.
The repurchase program authorizes the Company to purchase shares from time
to time in open market purchases and in private transactions. Shares
repurchased under the program will be held as treasury stock. The repurchase
program's terms have been structured to comply with the SEC's Rule 10b-18 and
are subject to market conditions, applicable legal and contractual
requirements and other factors. The program does not obligate the Company to
acquire any specific number of shares and may be suspended or terminated at
any time.
About Alliance Data
Alliance Data (NYSE: ADS) is a leading provider of marketing, loyalty and
transaction services, managing over 120 million consumer relationships for
some of North America's most recognizable companies. Using transaction-rich
data, Alliance Data creates and manages customized solutions that change
consumer behavior and that enable its clients to create and enhance customer
loyalty to build stronger, mutually beneficial relationships with their
customers. Headquartered in Dallas, Alliance Data employs over 9,000
associates at more than 60 locations worldwide. Alliance Data's brands
include AIR MILES(R), North America's premier coalition loyalty program, and
Epsilon(R), a leading provider of multi-channel, data-driven technologies and
marketing services. For more information about the company, visit its
website, 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. These risks, uncertainties and assumptions include those made with
respect to and any developments related to the termination of the proposed
merger with an affiliate of The Blackstone Group, including risks and
uncertainties arising from actions that the parties to the merger agreement or
third parties may take in connection therewith. 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.
SOURCE Alliance Data
