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|James Hart, SVP, Investor Relations|
203.956.8746 (O) 203.339.2578 (M)
AFFINION GROUP, INC. ANNOUNCES RESULTS FOR THE FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2010
ACHIEVES $318.5 MILLION IN 2010 ADJUSTED EBITDA; RECORD RESULT FOR A FISCAL
STAMFORD, Conn., March 3, 2011 Affinion Group, Inc. (Affinion or the Company), a global leader in the designing, marketing and servicing of comprehensive customer engagement and loyalty solutions that enhance and extend the relationship of millions of consumers with many of the largest and most respected companies in the world, announced today the financial results for the three- and twelve-month periods ended December 31, 2010 (the fourth quarter and full year, respectively) for both Affinion and its parent company, Affinion Group Holdings, Inc (Holdings).
Overall, we are pleased with our level of performance in 2010, as this marks the sixth consecutive year in which we have either met or exceeded the Adjusted EBITDA guidance we provided to our investors, demonstrating both our ongoing commitment to achieving excellent performance as well as the strong visibility and insight we have into our business, said Nathaniel J. Lipman, Affinions Chief Executive Officer. As we conclude 2010, we are pleased to have successfully navigated past the headwinds that had affected our business these past two years, and with the investments we have made in both new assets and increased marketing expense over the past few months, we have positioned the business very well to capitalize on the growth opportunities that now lie ahead.
On January 14, 2011, Affinion entered into and completed a merger agreement with Webloyalty, a leading online marketing services company that provides, designs and administers online subscription loyalty solutions that offer valuable discounts, services and benefits for consumers in Europe and the United States. The merger was completed through the issuance of Holdings capital stock.
Beginning with the first quarter, the Webloyalty business results are expected to be reported with the Companys Membership and International products, and the transaction is expected to result in purchase accounting adjustments.
As previously disclosed, we expect to generate between $365 and $385 million of Adjusted EBITDA in 2011, which includes the expected results from Webloyalty, continued Lipman. While we are comfortable with our 2011 forecast, it should be noted that we currently expect to see this EBITDA growth back-loaded into the second half of the year, as the impact from our recent marketing investments take effect.
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.
Fourth Quarter Net Revenues
Net revenues for the fourth quarter of 2010 remained relatively flat at $346.1 million, compared to $348.3 million for the fourth quarter of 2009.
The change in net revenues was due to a decline in International products net revenue, as a $3.0 million impact from unfavorable foreign exchange offset modest growth in North American products revenue.
The following information was filed by Affinion Group, Inc. on Thursday, March 3, 2011 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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