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
- 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”