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SVP, Communications and Corporate Development
AFFINION GROUP HOLDINGS, INC. ANNOUNCES RESULTS FOR THE SECOND QUARTER
ENDED JUNE 30, 2016
REAFFIRMS FULL YEAR GUIDANCE FOR 2016
STAMFORD, Conn., July 27, 2016 Affinion Group Holdings, Inc. (Affinion Holdings or the Company), a global leader in loyalty and customer engagement, announced today the financial results for the three month period ended June 30, 2016 (the second quarter or quarter) for itself and selected financial information for its wholly-owned subsidiary, Affinion Group, Inc. (Affinion).
We are pleased with our results in the second quarter, as our three core businesses loyalty, customer engagement and insurance produced solid results and position the Company for sustainable long-term success, said Todd Siegel, the Companys Chief Executive Officer.
As we continue to execute against our strategic plans, Siegel continued, we expect, as anticipated, that our 2016 Adjusted EBITDA will be in a range of $230 million to $245 million assuming 2015 year-end foreign exchange rates. Further, based on our solid results so far this year, as well as certain new initiatives currently being implemented, we remain confident that the Company will return to growth in 2017 led by the continued success of our leading loyalty and customer engagement solutions.
Notes: Adjusted EBITDA as referred to above excludes any pro forma impact of acquisitions and other actions. See Table 5 for a presentation of Adjusted EBITDA by segment. See Tables 6 and 7 for a complete description of Adjusted EBITDA and the related reconciliations to GAAP measures.
Second Quarter Net Revenues
|||Net revenues for the second quarter of 2016 decreased 17.3%, from $295.0 million in the second quarter of 2015 to $244.0 million. The decrease in overall net revenues was primarily due to expected revenue declines in Legacy Membership and Package, as well as lower Global Loyalty, Global Customer Engagement and Insurance Solutions revenue.|
|||Net revenues for the three core business segments (Global Loyalty, Global Customer Engagement and Insurance Solutions) for the second quarter of 2016 decreased 5.6%, from $205.6 million in the second quarter of 2015 to $194.0 million. On a currency consistent basis, net revenues for the three core business segments were $195.7 million in the second quarter of 2016.|
|||Net revenues for the Legacy Membership and Package segment decreased 43.8%, from $89.7 million in the second quarter of 2015 to $50.4 million.|
Second Quarter Operating Results
|||Adjusted EBITDA (as defined in Note (f) of Table 6) was $57.0 million as compared to $62.1 million for the second quarter of 2015, a decrease of 8.2%.|
|||Segment EBITDA (as defined in Note (1) of Table 5) decreased $6.4 million as the impact of lower net revenues was partially offset by lower marketing and commissions, lower operating costs, and lower general and administrative expenses.|
The following information was filed by Affinion Group, Inc. on Wednesday, July 27, 2016 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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