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|FOR IMMEDIATE RELEASE||More information:|
|James Hart, 203.956.8746 (O) 203.339.2578 (M)|
|Todd Smith, 615.764.2598 (O) 615.202.7944 (M)|
AFFINION GROUP, INC. ANNOUNCES RESULTS FOR THE FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2008
ACHIEVES FOURTH QUARTER ADJUSTED EBITDA OF $79.0 MILLION
INCREASES TRAILING TWELVE-MONTH ADJUSTED EBITDA TO $311.4 MILLION
NORWALK, Conn., February 26, 2009 Affinion Group, Inc. (Affinion or the Company), a global leader in customer engagement and provider of programs and solutions that enhance and extend the relationship of millions of consumers for financial service, retailing and e-commerce companies, today announced its financial results for the three and twelve month periods ended December 31, 2008 (fourth quarter and full year, respectively).
Given the extremely challenging economic environment that began to affect our partners in 2008, we are very pleased with the quality of our performance this past year, as we recorded the highest revenue and Adjusted EBITDA in our history said Nathaniel J. Lipman, Affinions President and Chief Executive Officer.
Regarding the Companys expectations for 2009, Lipman added, While the uncertain impacts of any worsening in the macro-economic environment on our partners and consumers along with ongoing fluctuations in foreign-exchange rates somewhat limit our insight into this upcoming year, we believe the strengths in our business model, coupled with the resiliency and quality of our programs, will allow us to achieve increases in Adjusted EBITDA and operating cash flow in 2009 over the record levels set in 2008.
Note: readers are urged to review the section entitled Important Notes at the end of this release for a description of certain items affecting the results, including a definition of the term Transactions.
Fourth Quarter Net Revenues
|¨||Net revenues for the fourth quarter of 2008 were $351.6 million as compared to $336.6 million for the fourth quarter of 2007, reflecting a 4.5% growth rate. Net revenues, excluding the impact of the Transactions, increased $9.3 million, or 2.8% greater than the fourth quarter of 2007.|
|¨||The increase in net revenues was due to continued growth in the North American region, with all lines of business posting increases over the fourth quarter of 2007, including double-digit growth in Loyalty. The increase in North American net revenues was partially offset by a decline in International, as unfavorable foreign-exchange rates negated the impact of strong gains in both new retail and package members.|
Fourth Quarter Operating Results
|¨||Adjusted EBITDA (as defined in Note (c) of Table 7) was $79.0 million as compared to $78.1 million for the fourth quarter of 2007.|
|¨||Segment EBITDA for the fourth quarter of 2008 was $76.7 million as compared to $74.3 million for the fourth quarter of 2007. Segment EBITDA increased $3.0 million related to non-cash purchase accounting adjustments.|
|¨||Excluding the impact of the Transactions, Segment EBITDA decreased $0.6 million, or 0.8%, primarily due to higher global marketing and operating costs, partially offset by higher net revenues, lower commissions and lower general and administrative expenses.|
The following information was filed by Affinion Group, Inc. on Thursday, February 26, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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