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Alliance Data Systems Corp.$225.44$6.472.95%

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 Alliance Data Provides Card Services Performance Update For April 2017
   Monday, May 15, 2017 7:30:00 AM ET

Alliance Data Systems Corporation (ADS ), a leading global provider of data-driven marketing and loyalty solutions, today provided an update on its Card Services segment.

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In conjunction with the release of the Company’s Master Trust Monthly Noteholder’s Statement, the Company is releasing similar metrics for the overall total managed portfolio. The Master Trust data represents a subset of the Company’s total managed portfolio, and the Company believes the information presented below provides a more complete view of the Card Services segment.

                                                                                        For the                                                                                             For the four
                                                                                        month ended                                                                                         months ended
                                                                                        April 30, 2017                                                                                      April 30, 2017
                                                                                        (dollars in thousands)
Average receivables                                                                     $                                                                                       15,546,048  $              15,650,591
Year over year change in average receivables                                                                                                                                    17%                        16%
Net charge-offs                                                                         $                                                                                       96,058      $              343,935
Net charge-offs as a percentage of average receivables(1)(2)(3)                                                                                                                 7.4%                       6.6%
(1)    Excluding the purchase accounting impact in 2016, the April 2017 gross loss rates increased approximately 70 basis points, consistent with our delinquency trends. The net loss rate for April 2017 was negatively impacted by the timing of recoveries by approximately 130 basis points. Management expects the net loss rate for April 2017 to be the highpoint with the net loss rate declining in both May 2017 and June 2017, with the second quarter net loss rate consistent with Management’s guidance of approximately 6%.
(2)    The net loss rate is consistent with maintaining the Company’s full year guidance of $7.7 billion in total revenue, $18.50 in core EPS, and a net loss rate in a mid-5% range. Net loss rates are expected to be higher in the first half of 2017 and are tracking to improve significantly in the second half of the year.
(3)    Compares to 5.1% and 5.2% for the month and four months ended April 30, 2016, respectively.
                                     As of                 As of
                                     April 30, 2017        April 30, 2016
                                     (dollars in thousands)
30 days + delinquencies - principal  $    707,910      $           543,630
Period ended receivables - principal $    15,135,584   $           13,013,320
Delinquency rate                          4.7%                     4.2%

About Alliance Data

Alliance Data? (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 17,000 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 Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.

Investor information about Alliance Data’s businesses may be found here.

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. Examples of forward-looking statements include, but are not limited to, statements we make regarding our expected operating results, future economic conditions including currency exchange rates and the guidance we give with respect to our anticipated financial performance.

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: Investors/Analysts Tiffany Louder Alliance Data 214-494-3048 Tiffany.Louder@AllianceData.com

Media Shelley Whiddon Alliance Data 214-494-3811 Shelley.Whiddon@AllianceData.com

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alliance-data-provides-card-services-performance-update-for-april-2017-300457145.html

SOURCE Alliance Data Systems Corporation

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