Alliance Data Announces $1 Billion Stock Repurchase Authorization For 2016

Board Increases Repurchase Program Authorization from $500 Million to $1 Billion

Feb 18, 2016, 07:30 ET from Alliance Data Systems Corporation

PLANO, Texas, Feb. 18, 2016 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today announced that its board of directors has approved a $500 million increase in the Company's recently announced stock repurchase program, resulting in an aggregate authorization of up to $1 billion during 2016. In January 2016, the Company announced a board approved repurchase program authorizing the purchase of up to $500 million of common stock during the year, replacing the previous program that expired at the end of 2015.

"This increased authorization reflects a shift in our focus for 2016 to utilizing our free cash flow primarily for stock repurchases rather than a mix of repurchases and M&A, enabling us, as we have done historically, to acquire shares of our common stock at prices that we believe understate the value of our business," said Charles Horn, executive vice president and chief financial officer of Alliance Data. "We expect to execute stock repurchases while maintaining our current leverage ratios."

Under the repurchase program the Company is authorized to repurchase shares in open market purchases as well as in privately negotiated transactions from time to time through December 31, 2016. The repurchase program's terms have been structured to comply with the SEC's Rule 10b-18, and the program is subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time. Repurchases will be financed through free cash flow and borrowings under the Company's credit facility. Stock purchased as part of the program will be held as treasury stock.

About Alliance Data
Alliance Data® (NYSE: ADS) is a leading global provider of data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and emerging technologies. An S&P 500 and Fortune 500 company headquartered in Plano, Texas, Alliance Data consists of three businesses that together employ more than 16,000 associates at approximately 100 locations worldwide.

Alliance Data's card services business is a leading provider of marketing-driven branded credit card programs. Epsilon® is a leading provider of multichannel, data-driven technologies and marketing services, and also includes Conversant®, a leader in personalized digital marketing. LoyaltyOne® owns and operates the AIR MILES® Reward Program, Canada's premier coalition loyalty program, and holds a majority interest in Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.

Follow Alliance Data on Twitter, Facebook, LinkedIn and YouTube.

Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K.

Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Contact:

Alliance Data
Tiffany Louder – Investor Relations
214-494-3048
tiffany.louder@alliancedata.com  

Steve Calk – Analysts/Investors
FTI Consulting
212-850-5611
alliancedata@fticonsulting.com
 

Shelley Whiddon – Media
214-494-3811
shelley.whiddon@alliancedata.com

Logo - http://photos.prnewswire.com/prnh/20051024/ADSLOGO

SOURCE Alliance Data Systems Corporation



RELATED LINKS

http://www.alliancedata.com