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|SVP, Communications and Corporate Development|
AFFINION GROUP HOLDINGS, INC. ANNOUNCES RESULTS FOR THE FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2014
ACHIEVES FULL YEAR ADJUSTED EBITDA OF $281.7 MILLION
STAMFORD, Conn., March 19, 2015 Affinion Group Holdings, Inc. (Affinion Holdings 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 today the financial results for the three - and twelve-month periods ended December 31, 2014 (the fourth quarter or quarter and full year, respectively) for itself and selected financial information for its wholly-owned subsidiary, Affinion Group, Inc. (Affinion).
During the fourth quarter, we saw solid results across our businesses, highlighted by double-digit growth in our Global Loyalty segment and nearly 9% growth in our International segment as we continue to realize the benefits of strategic investments in these core growth areas, said Todd Siegel, the Companys Chief Executive Officer. Over the past year, we have positioned the company for long term success by expanding relationships, entering into new verticals and investing in our businesses. For 2015, we will continue to execute on our strategic plans and expect our Adjusted EBITDA to be flat with our 2014 results on a currency consistent basis.
Notes: Adjusted EBITDA as referred to above excludes any pro forma impact of acquisitions. See Tables 6 and 7 for a complete description of Adjusted EBITDA and the related reconciliations to GAAP measures.
Fourth Quarter Net Revenues
|¨||Net revenues for the fourth quarter of 2014 increased 0.9%, from $311.8 million in the fourth quarter of 2013 to $314.6 million.|
|¨||The increase in overall net revenues was due to revenue growth in Global Loyalty, International and Insurance and Package businesses, partially offset by a decrease in Membership, which continued to decline due to the previously disclosed reduction in new marketing campaigns with the Companys large financial institution partners.|
Fourth Quarter Operating Results
|¨||Adjusted EBITDA (as defined in Note (c) of Table 6) was $82.0 million as compared to $39.8 million for the fourth quarter of 2013, an increase of 106.0%.|
|¨||Segment EBITDA decreased $235.0 million as the impact of a charge for the impairment of goodwill of $292.4 million related to the Membership business was partially offset by lower marketing and commission costs, as well as lower general and administrative and operating expenses in the quarter.|
|¨||As compared to Segment EBITDA, fourth quarter Adjusted EBITDA reflects the exclusion of, among other items, $292.4 million related to the non-cash goodwill impairment charge, as well as $12.4 million in costs related primarily to restructuring of certain operations including related severance costs, $2.8 million in costs relating to certain litigation matters and $2.2 million of stock compensation expense.|
The following information was filed by Affinion Group, Inc. on Thursday, March 19, 2015 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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