Dallas-based Alliance Data announces record fourth quarter

by PegNews wire

DALLAS — Alliance Data Systems Corporation (NYSE:ADS) , a company providing marketing services, credit services and transaction services, today announced record results for its fourth quarter and year ended December 31, 2006.

Total fourth-quarter revenue increased 25 percent to $524.5 million compared to $421.2 million for the fourth quarter of 2005. Net income increased 27 percent to $39.6 million for the fourth quarter of 2006, compared to $31.3 million for the fourth quarter of 2005.

"We are very pleased with our record fourth-quarter and full-year 2006 results," said Mike Parks, Alliance Data chairman and chief executive officer. "Through the steadfast execution of our strategy, we generated $2 billion in revenue in 2006, driven by strong growth balanced across all of our business segments. As a result of our strong performance to date, the planned acquisition of Abacus, and increased visibility into 2007, we are raising guidance for the full year 2007."

For the year ended December 31, 2006, revenue increased 29 percent to $2.0 billion compared to $1.6 billion for the year ended December 31, 2005. Net income increased 37 percent to $189.6 million in 2006, compared to $138.7 million in 2005.

Based on the strong 2006 showing, the company issued raised its outlook for 2007 to $2.2 billion in revenue.

Headquartered in Dallas, Alliance Data employs approximately 9,300 associates at more than 60 locations worldwide.

Source: Alliance Data Systems