Please wait while we load the requested 10-K report or click the link below:
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, 2011
ACHIEVES $366.4 MILLION IN 2011 ADJUSTED EBITDA
FULL YEAR REVENUE GROWS 11.5% OVER 2010
STAMFORD, Conn., March 1, 2012 Affinion Group, Inc. (Affinion or the Company), the global leader in enabling companies to connect and engage with their customers, thereby creating rewarding relationships and enhancing brand loyalty, announced the financial results for the three- and twelve-month periods ended December 31, 2011 (the fourth quarter or quarter and full year, respectively) for both Affinion and its parent company, Affinion Group Holdings, Inc. (Holdings).
Overall, we are pleased that, for the sixth consecutive year, we have been able to meet or exceed the financial commitments weve made to our investors and creditors, and that, at this level, our Adjusted EBITDA is more than 40% higher than where we began as an independent entity just six years ago, said Nathaniel J. Lipman, Affinions Chief Executive Officer. We believe this demonstrates our ability to successfully manage the business for growth over the long-term, even during periods of sustained economic uncertainty or when challenges that are confronting our client partners affect our ability to market new programs and services.
The headwinds in Europe that began to negatively affect our International growth in mid-2011 appear to be easing somewhat, but given that our jumping off point for fiscal year 2012 is lower than what we previously expected in International, it will take all of this year to return to the levels of growth that we originally planned from the region, continued Lipman.
Further, as we seek to capitalize on highly attractive opportunities, we expect our marketing and commission expense to meaningfully increase in the first half of the year as compared to 2011. Because of the lower jumping off point in Europe, the higher marketing spend and the impact of the ongoing distractions to our domestic financial institution partners from the regulatory climate, we anticipate unfavorable comparisons, both on a sequential and prior period basis, for the first two quarters of the year. Nonetheless, we are excited about many of our newer initiatives, and we expect to achieve modest growth in overall Adjusted EBITDA for full year 2012.
Notes: Adjusted EBITDA as referred to above excludes any pro forma impact of acquisitions. See Tables 6 and 11 for a complete description of Adjusted EBITDA and the related reconciliations to GAAP measures. On January 14, 2011, Affinion entered into and completed a merger agreement with Webloyalty, a global online marketing services company. Webloyaltys business results are reported as part of the Companys Membership and International product segments, as appropriate. 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 the impact of purchase accounting related to the Webloyalty transaction.
Fourth Quarter Net Revenues
Net revenues for the fourth quarter of 2011 increased 11.7%, from $346.1 million in the fourth quarter of 2010 to $386.5 million, with growth in both the North American and International products revenues over the fourth quarter of 2010.
North American revenue increased in all products except for Insurance and Package, which declined due to a higher cost of insurance resulting from higher claims activity. International products revenue increased primarily from new business generated from the Webloyalty assets following the closure of the merger.
The following information was filed by Affinion Group, Inc. on Thursday, March 1, 2012 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.
View differences made from one year to another to evaluate Affinion Group, Inc.'s financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Affinion Group, Inc..