Alliance Data Provides Performance Update for February 2022

Rhea-AI Summary

Alliance Data Systems Corporation (NYSE: ADS) recently provided a performance update, highlighting key financial metrics as of February 28, 2022. The end of period receivables stood at $16.8 billion, with average receivables of $16.6 billion indicating a 5% year-over-year increase. Net charge-offs totaled $66 million, equating to 4.8% of average receivables. Additionally, delinquencies over 30 days were reported at $695 million, resulting in a delinquency rate of 4.4% compared to 4.3% a year prior.

Positive

• 5% year-over-year increase in average receivables.
• Delinquency rate of 4.4% is lower than the previous year's 4.3%.

Negative

• Net charge-offs increased to $66 million from $131 million year-over-year.
• Net charge-offs as a percentage of average receivables rose to 4.8%, indicating potential risk.

COLUMBUS, Ohio--(BUSINESS WIRE)-- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of tech-forward payment and lending solutions, provided a performance update. The following tables present the Company’s net charge-offs and delinquency rates for the periods indicated.

		For the month ended February 28, 2022				For the two months ended February 28, 2022
		(dollars in millions)
End of period receivables		$	16,799			$	16,799
Average receivables		$	16,571			$	16,722
Year over year change in average receivables			5	%			5	%
Net charge-offs		$	66			$	131
Net charge-offs as a percentage of average receivables (1)			4.8	%			4.7	%
______________________________
(1) Compares to 5.2% and 4.9% for the month and two months ended February 28, 2021, respectively.

		As of February 28, 2022				As of February 28, 2021
		(dollars in millions)
30 days + delinquencies - principal		$	695			$	643
Period ended receivables - principal		$	15,973			$	15,114
Delinquency rate			4.4	%			4.3	%

About Alliance Data

Alliance Data^® (NYSE: ADS) is a leading provider of tech-forward payment and lending solutions, serving customers and consumer-based industries in North America. Through omnichannel touch points and a comprehensive product suite that includes credit products and Bread^® digital payment solutions, Alliance Data helps its partners drive loyalty and growth, while giving customers greater payment choices. Through its Comenity-branded financial services, it also offers credit and savings products to consumers.

Headquartered in Columbus, Ohio, Alliance Data is an S&P MidCap 400 company that employs approximately 6,000 associates worldwide. More information about Alliance Data can be found at AllianceData.com. Follow Alliance Data on Twitter, Facebook, LinkedIn, Instagram and YouTube.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, initiation or completion of strategic initiatives including our ability to realize the intended benefits of the spinoff of our LoyaltyOne segment, future dividend declarations, and future economic conditions, including, but not limited to, market conditions and COVID-19 impacts related to relief measures for impacted borrowers and depositors, labor shortages due to quarantine, and reduction in demand from clients.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220315005125/en/

Investors/Analysts

Brian Vereb

Alliance Data

614-528-4516

Brian.Vereb@AllianceData.com

Media

Shelley Whiddon

Alliance Data

214-494-3811

Shelley.Whiddon@AllianceData.com

Source: Alliance Data Systems Corporation

FAQ

What are the latest financial results for Alliance Data Systems Corporation (NYSE: ADS) as of February 28, 2022?

As of February 28, 2022, Alliance Data reported end of period receivables of $16.8 billion and average receivables of $16.6 billion, with net charge-offs of $66 million.

How is the delinquency rate for Alliance Data Systems Corporation (NYSE: ADS) trending?

The delinquency rate for Alliance Data is currently reported at 4.4%, showing a slight increase from the previous year’s rate of 4.3%.

What are the net charge-offs for Alliance Data Systems Corporation (NYSE: ADS) compared to last year?

Net charge-offs for Alliance Data are $66 million, which is a decrease from $131 million reported in the previous year.