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Alliance Data Systems Corporation – Company Information

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Alliance Data Systems Corporation is a global provider of data-driven marketing and loyalty solutions, based in Plano, Texas, USA.

It was formed in 1996 following a merger of J.C. Penney’s credit card processing unit and World Financial Network National Bank.

The company has a diversified portfolio of outsourced marketing solutions, such as: customer loyalty programs, marketing strategy consulting, database marketing services, analytics and creative services, private label and co-brand retail credit card programs, in addition to direct marketing services.

It has a client base of over 1,300 companies, including well-known brands such as: General Motors, Bank of America, Bank of Montreal, Procter & Gamble, AstraZeneca, FedEx, Kraft, Hilton Victoria’s Secret, Lane Bryant, Ann Taylor, J. Crew and Pottery Barn.

Alliance Data Systems is comprised of three major business segments:

LoyaltyOne – provider of loyalty marketing and programs.

Epsilon – marketing services firm, with a broad array of data-driven, multichannel marketing solutions.

Private Label Services and Credit – Underwriting and risk management, receivables funding, and processing services.

It is publicly listed on the New York Stock Exchange (NYSE) under the stock ticker symbol ‘ADS’.

Overview

Alliance Data logo

  • President and CEO: Ed Heffernan
  • Industry: Marketing services
  • Type: Public
  • Listed on the New York Stock Exchange (NYSE)
  • NYSE stock symbol: ADS
  • S&P 500 Component
  • Formed: 1996 (following a merger)
  • Revenue: $5.302 billion USD (2014)
  • Net income: $506.293 million USD (2014)
  • Diluted earnings per share: $7.87 USD (2014)
  • Company head office: 7500 Dallas Parkway, Suite 700 Plano, TX 75024, USA
  • Employees: 15,000 (2014)
  • Website: http://www.alliancedata.com/
  • Investor relations number: 212-850-5600

Alliance Data Systems Corporation Financial Results, Years Ended December 31

Operating data (in $ thousands) 2014 2013
Total revenue $5,302,940 $4,319,063
Cost of operations $3,218,774 $2,549,159
Provision for loan loss $425,205 $345,758
General and administrative costs $141,468 $109,115
Total operating expenses $4,204,473 $3,220,151
Operating income $1,098,467 $1,098,912
Income from continuing operations before income taxes $837,941 $793,412
Net income $506,293 $496,170
Balance sheet data (in $ thousands)
Total assets $20,263,977 $13,244,257
Total liabilities $17,632,031 $12,388,496
Total stockholders’ equity $2,396,380 $855,761
Common share data (in $)
Basic earnings per share $8.72 $10.09
Diluted earnings per share $7.87 $7.42
Cash flow data (in $ thousands)
Cash flows from operating activities $1,344,159 $1,003,492
Cash flows from investing activities $(4,737,121) $(1,619,416)
Cash flows from financing activities $3,516,146 $704,152

 Source: “Alliance Data Systems Corporation Form 10-K 2014”