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Green Dot Reports Fourth Quarter Results with Revenue up 13% along with Increases in Active Cards, Direct Deposit Penetration

  Green Dot Reports Fourth Quarter Results with Revenue up 13% along with
  Increases in Active Cards, Direct Deposit Penetration and Cardholder
  Retention

Business Wire

PASADENA, Calif. -- January 31, 2013

Green Dot Corporation (NYSE: GDOT), today reported financial results for the
fourth quarter ended December31, 2012.

For the fourth quarter of 2012, Green Dot reported a 13% year-over-year
increase in non-GAAP total operating revenues^1 to $138.6 million and non-GAAP
diluted earnings per share^1 of $0.31. GAAP results for the fourth quarter
were $137.3 million in total operating revenues and $0.24 in diluted earnings
per share.

For the full year, Green Dot reported non-GAAP total operating revenues of
$554.5 million, a 15% increase over 2011 and non-GAAP diluted earnings per
share were $1.37. GAAP total operating revenues for the full year in 2012 were
$546.3 million and GAAP diluted earnings per share were $1.07.

Net cash provided by operating activities totaled $90.0 million for the full
year.

“Our double-digit revenue growth during the fourth quarter is indicative of
the strength and resiliency of the Green Dot brand at a time when consumers
have greater product choices than ever in prepaid and adjacent categories. We
also saw solid advances in the underlying quality of our card portfolio,
evidenced by the best direct deposit penetration, cash reloading, spend and
revenue per card in our company's history. While our operating margins in the
fourth quarter were compressed as a result of acquisitions made in 2012,
integration expenses and investments in new products and technologies, we
believe that these investments will yield long term efficiencies and growth
opportunities going forward," said Steve Streit, Green Dot's Chairman and
Chief Executive Officer.

GAAP financial results for the fourth quarter of 2012 compared to the fourth
quarter of 2011:

  *Total operating revenues on a generally accepted accounting principles
    (GAAP) basis increased 15% to $137.3 million for the fourth quarter of
    2012 from $119.1 million for the fourth quarter of 2011
  *GAAP net income was $10.4 million for the fourth quarter of 2012 versus
    $13.6 million for the fourth quarter of 2011
  *GAAP basic and diluted earnings per common share were both $0.24 for the
    fourth quarter of 2012 versus $0.32 in each case for the fourth quarter of
    2011

Non-GAAP financial results for the fourth quarter of 2012 compared to the
fourth quarter of 2011:^1

  *Non-GAAP total operating  revenues^1 increased 13% to $138.6 million for
    the fourth quarter of 2012 from $122.7 million for the fourth quarter of
    2011
  *Non-GAAP net income^1 was $13.7 million for the fourth quarter of 2012
    versus $17.4 million for the fourth quarter of 2011
  *Non-GAAP diluted earnings per share^1 were $0.31 for the fourth quarter of
    2012 versus $0.39 for the fourth quarter of 2011
  *EBITDA plus employee stock-based compensation expense and stock-based
    retailer incentive compensation expense (adjusted EBITDA^1) was $25.0
    million for the fourth quarter of 2012 versus $31.3 million for the fourth
    quarter of 2011

GAAP financial results for the full year 2012 compared to 2011:

  *Total operating revenues on a GAAP basis increased 17% to $546.3 million
    for in 2012 from $466.8 million in 2011
  *GAAP net income was $47.2 million for 2012 versus $51.7 million for 2011
  *GAAP diluted earnings per common share were $1.07 for 2012 versus $1.18 in
    2011

Non-GAAP financial results for the full year 2012 compared to the full year
2011:^1

  *Non-GAAP total operating  revenues^1 increased 15% to $554.5 million for
    the fourth quarter of 2012 from $484.2 million for the fourth quarter of
    2011
  *Non-GAAP net income^1 was $60.2 million for 2012 versus $68.4 million for
    2011
  *Non-GAAP diluted earnings per share^1 were $1.37 for 2012 versus $1.55 for
    2011
  *EBITDA plus employee stock-based compensation expense and stock-based
    retailer incentive compensation expense (adjusted EBITDA^1) was $111.3
    million for 2012 versus $122.1 million for 2011

The foregoing GAAP and non-GAAP financial measures for the fourth quarter of
2011 reflect revisions to correct an error relating to the calculation of
overdrawn account balances. Revisions were also made to the reported results
in each of the first three quarters of 2012. Please refer to Summary of
Revised Prior Quarters schedule for further details.

Key business metrics for the quarter ended December31, 2012:

  *Number of general purpose reloadable (GPR) debit cards activated was 1.85
    million for the fourth quarter of 2012, a decrease of 0.13 million, or 7%,
    over the fourth quarter of 2011. Excluding the discontinued TurboTax
    program in both periods, activations increased 6% over the fourth quarter
    of 2011
  *Number of cash transfers was 11.04 million for the fourth quarter of 2012,
    an increase of 1.90 million, or 21%, over the fourth quarter of 2011
  *Number of active cards at quarter end was 4.37 million, an increase of
    0.17 million, or 4%, over the fourth quarter of 2011. Excluding the
    discontinued TurboTax program in both periods, the increase was 6% over
    the fourth quarter of 2011
  *Gross dollar volume (GDV) was $4.3 billion for the fourth quarter of 2012,
    an increase of more than 13% versus the fourth quarter of 2011. Excluding
    the discontinued TurboTax program in both periods, GDV increased 18% over
    the fourth quarter of 2011
  *Purchase volume was $3.2 billion for the fourth quarter of 2012, an
    increase of $0.4 billion, or 13%, over the fourth quarter of 2011.
    Excluding the discontinued TurboTax program in both periods, purchase
    volume increased 16% over the fourth quarter of 2011

Please refer to the Company's latest Quarterly Report on Form 10-Q for a
description of the key business metrics described above. The following table
shows the Company's quarterly key business metrics for each of the last eight
calendar quarters:

            2012                                                    2011
              Q4        Q3            Q2            Q1             Q4            Q3            Q2            Q1
              (In millions)
Number of
GPR cards     1.85      2.01         1.98         2.23            1.98         1.96         1.82         2.21
activated
Number of
cash          11.04      10.52          10.14          10.09            9.14           8.87           8.28           7.98
transfers
Number of
active
cards at      4.37       4.42           4.44           4.69             4.20           4.15           4.10           4.28
quarter
end
Gross
dollar        $ 4,279    $  4,070      $  3,980      $  4,823        $  3,771      $  4,109      $  3,632      $  4,609
volume
Purchase      $ 3,233    $   2,966      $   2,943      $   3,487        $   2,857      $   2,738      $   2,535      $   3,003
volume
                                                                                                                         

Select Business Updates

  *Green Dot has entered into a new multi-year contract extension with
    Kroger. Green Dot products have been sold at Kroger's supermarkets since
    2007 and the new agreement involves additional placement inside various
    convenience stores owned and operated by Kroger.
  *Green Dot successfully completed the migration of its Green Dot-branded
    products into Green Dot Bank, thereby completing the integration of its
    bank acquisition and delivering the ability to more effectively roll out
    new products, realize cost efficiencies, and generate new revenue streams
    via interest income on balances held at the bank.
  *Green Dot recently launched the public beta of GoBank. GoBank is the first
    bank account designed from scratch for the smartphone generation. GoBank
    provides users with a fast, fair and feature-rich banking experience-all
    on a smart phone. Green Dot plans to roll out GoBank to the general public
    in the first half of 2013, and is optimistic about GoBank's potential to
    serve a complementary segment of customers through new distribution
    channels.

"2012 was another year of solid growth and profitability with very strong cash
generation. Green Dot has no debt and ended the year with nearly half a
billion dollars of total cash and investment securities, inclusive of nearly
$200 million in unencumbered cash. While we are pleased with Green Dot's Q4
performance, there still remains a great deal of uncertainty in our business
going into 2013 as we expect continued headwinds from enhanced risk controls
and competition to play out through much of the year before we can expect
stabilization. While our company has performed well thus far in this new
environment, this ongoing uncertainty is reflected in our 2013 guidance," said
John Keatley, Green Dot's Chief Financial Officer.

Outlook for 2013

Green Dot also announced its Outlook for 2013 anticipated results. This
Outlook is based on a number of assumptions that Green Dot believes are
reasonable at the time of this earnings release. Information regarding
potential risks that could cause the actual results to differ from these
forward-looking statements is set forth below and in Green Dot's filings with
the Securities and Exchange Commission.

For 2013, Green Dot expects full year non-GAAP total operating revenues^2 to
be in the range of $510 million to $540 million.

Adjusted EBITDA^2 is expected to be between $85 million and $100 million.
Non-GAAP diluted EPS^2 for the full year is expected to be between $0.95 and
$1.20.

Conference Call

The Company will host a conference call to discuss fourth quarter 2012
financial results today at 5:00 pm ET. In addition to the conference call,
there will be a webcast presentation of accompanying slides accessible on the
Company's investor relations website. Hosting the call will be Steve Streit,
Chief Executive Officer, and John Keatley, Chief Financial Officer. The
conference call can be accessed live over the phone by dialing (866) 524-3160,
or (412) 317-6760 for international callers. A replay will be available
approximately two hours after the call concludes and can be accessed by
dialing (877) 870-5176 or (858) 384-5517 for international callers; the
conference ID is 10024092. The replay of the webcast will be available until
Thursday, February 7, 2013. The live call and the replay, along with
supporting materials, can also be accessed through the Company's investor
relations website at http://ir.greendot.com/.

Forward-Looking Statements

This earnings release contains forward-looking statements, which are subject
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements include, among other things, statements regarding
the Company's full-year 2013 guidance, including all the statements under
"Outlook for 2013," and other future events that involve risks and
uncertainties. Actual results may differ materially from those contained in
the forward-looking statements contained in this earnings release, and
reported results should not be considered as an indication of future
performance. The potential risks and uncertainties that could cause actual
results to differ from those projected include, among other things, the
Company's dependence on revenues derived from Walmart and three other retail
distributors, impact of competition, the Company's reliance on retail
distributors for the promotion of its products and services, demand for the
Company's new and existing products and services, continued and improving
returns from the Company's investments in new growth initiatives, potential
difficulties in integrating operations of acquired entities and acquired
technologies, the Company's ability to operate in a highly regulated
environment, changes to existing laws or regulations affecting the Company's
operating methods or economics, the Company's reliance on third-party vendors
and card issuing banks, changes in credit card association or other network
rules or standards, changes in card association and debit network fees or
products or interchange rates, instances of fraud developments in the prepaid
financial services industry that impact prepaid debit card usage generally,
business interruption or systems failure, and the Company's involvement
litigation or investigations. These and other risks are discussed in greater
detail in the Company's Securities and Exchange Commission filings, including
its most recent annual report on Form 10-K and quarterly report on Form 10-Q,
which are available on the Company's investor relations website at
http://ir.greendot.com/ and on the SEC website at www.sec.gov. All information
provided in this release and in the attachments is as of January31, 2013, and
the Company assumes no obligation to update this information as a result of
future events or developments.

About Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements presented in
accordance with accounting principles generally accepted in the United States
of America (GAAP), the Company uses measures of operating results that are
adjusted to exclude net interest income; income tax expense; depreciation and
amortization; employee stock-based compensation expense; and stock-based
retailer incentive compensation expense. This earnings release includes
non-GAAP total operating revenues, non-GAAP net income, non-GAAP earnings per
share, non-GAAP weighted-average shares issued and outstanding and adjusted
EBITDA. It also includes full-year 2013 guidance for non-GAAP total operating
revenues and adjusted EBITDA. These non-GAAP financial measures are not
calculated or presented in accordance with, and are not alternatives or
substitutes for, financial measures prepared in accordance with GAAP, and
should be read only in conjunction with the Company's financial measures
prepared in accordance with GAAP. The Company's non-GAAP financial measures
may be different from similarly-titled non-GAAP financial measures used by
other companies. The Company believes that the presentation of non-GAAP
financial measures provides useful information to management and investors
regarding underlying trends in its consolidated financial condition and
results of operations. The Company's management regularly uses these
supplemental non-GAAP financial measures internally to understand, manage and
evaluate the Company's business and make operating decisions. For additional
information regarding the Company's use of non-GAAP financial measures and the
items excluded by the Company from one or more of its historic and projected
non-GAAP financial measures, investors are encouraged to review the
reconciliations of the Company's historic and projected non-GAAP financial
measures to the comparable GAAP financial measures, which are attached to this
earnings release, and which can be found by clicking on “Financial
Information” in the Investor Relations section of the Company's website at
http://ir.greendot.com/.

About Green Dot

Green Dot is a publicly traded bank holding company regulated by the Board of
Governors of the Federal Reserve System. TheCompany provides widely
distributed, low cost banking and payment solutions to a broad base of U.S.
consumers. Green Dot's productsand services include its market leading
category of General PurposeReloadable (GPR) prepaid cards and its
industry-leading cash transfer network which are availabledirectly to
consumers online and through a network ofapproximately 60,000retail stores
nationwide where 95% of Americans shop. Green Dot is headquartered in the
greater Los Angeles area. For more details, visit www.greendot.com.

    Reconciliations of total operating revenues to non-GAAP total operating
    revenues, net income to non-GAAP net income, diluted earnings per share to
    non-GAAP diluted earnings per share and net income to adjusted EBITDA,
1  respectively, are provided in the tables immediately following the
    consolidated financial statements of cash flows. Additional information
    about the Company's non-GAAP financial measures can be found under the
    caption “About Non-GAAP Financial Measures” below.
    

    Reconciliations of forward-looking guidance for these non-GAAP financial
2  measures to their respective, most directly comparable projected GAAP
    financial measures are provided in the tables immediately following the
    reconciliation of Net Income to Adjusted EBITDA.
    

GREEN DOT CORPORATION

CONSOLIDATED BALANCE SHEETS

                                             December 31,      December 31,
                                              2012               2011
                                              (Unaudited)
                                              (In thousands, except par value)
Assets
Current assets:
Unrestricted cash and cash equivalents        $   293,590        $    223,033
Federal funds sold                            3,001              2,400
Investment securities available-for-sale,     115,244            20,647
at fair value
Settlement assets                             36,127             27,355
Accounts receivable, net                      39,861             41,726
Prepaid expenses and other assets             31,793             11,822
Income tax receivable                         9,036              3,590
Net deferred tax assets                       20,559            6,664
Total current assets                          549,211            337,237
Restricted cash                               634                12,926
Investment securities, available-for-sale,    68,543             10,563
at fair value
Accounts receivable, net                      10,931             4,147
Loans to bank customers, net of allowance
for loan losses of $472 and $0 as of          7,552              10,036
December 31, 2012 and December 31, 2011,
respectively
Prepaid expenses and other assets             1,689              202
Property and equipment, net                   58,376             27,281
Deferred expenses                             12,510             12,604
Goodwill and intangible assets                30,111            11,501
Total assets                                  $   739,557       $    426,497
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable                              $   31,411         $    15,441
Deposits                                      198,451            38,957
Obligations to customers                      46,156             —
Settlement obligations                        3,639              27,355
Amounts due to card issuing banks for         50,724             43,153
overdrawn accounts
Other accrued liabilities                     29,469             16,248
Deferred revenue                              19,557            21,500
Total current liabilities                     379,407            162,654
Other accrued liabilities                     18,557             6,239
Deferred revenue                              —                  19
Net deferred tax liabilities                  13,962            4,751
Total liabilities                             411,926            173,663
                                                                 
Stockholders’ equity:
Convertible Series A preferred stock,
$0.001 par value: 10 shares authorized as
of December 31, 2012 and December 31, 2011,   7                  7
respectively; 7 shares issued and
outstanding as of December 31, 2012 and
December 31, 2011, respectively
Class A common stock, $0.001 par value;
100,000 shares authorized as of December
31, 2012 and December 31, 2011,               31                 30
respectively; 31,435 and 30,162 shares
issued and outstanding as of December 31,
2012 and December 31, 2011, respectively
Class B convertible common stock, $0.001
par value, 100,000 shares authorized as of
December 31, 2012 and December 31, 2011,      4                  5
respectively; 4,560 and 5,280 shares issued
and outstanding as of December 31, 2012 and
December 31, 2011, respectively
Additional paid-in capital                    158,885            131,383
Retained earnings                             168,600            121,379
Accumulated other comprehensive income        104               30
Total stockholders’ equity                    327,631           252,834
Total liabilities and stockholders’ equity    $   739,557       $    426,497
                                                                      

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


                          Three Months Ended       Twelve Months Ended
                           December 31,              December 31,
                           2012        2011         2012         2011
                           (In thousands, except per share data)
Operating revenues:
Card revenues and other    $ 53,113     $ 50,725     $ 224,745     $ 208,939
fees
Cash transfer revenues     43,511       35,883       165,232       134,143
Interchange revenues       41,944       36,068       164,559       141,103
Stock-based retailer       (1,266   )   (3,552   )   (8,251    )   (17,337   )
incentive compensation
Total operating revenues   137,302      119,124      546,285       466,848
Operating expenses:
Sales and marketing        52,354       42,583       209,870       168,747
expenses
Compensation and           31,856       23,105       114,930       87,671
benefits expenses
Processing expenses        18,777       16,314       77,445        70,953
Other general and          19,825      15,414      71,900       56,607    
administrative expenses
Total operating expenses   122,812     97,416      474,145      383,978   
Operating income           14,490       21,708       72,140        82,870
Interest income            947          336          4,074         910
Interest expense           (14      )   (144     )   (76       )   (346      )
Income before income       15,423       21,900       76,138        83,434
taxes
Income tax expense         5,053       8,251       28,919       31,712    
Net income                 10,370       13,649       47,219        51,722
Income attributable to     (1,664   )   (578     )   (7,601    )   (554      )
preferred stock
Net income allocated to    $ 8,706     $ 13,071    $ 39,618     $ 51,168  
common stockholders
Basic earnings per
common share:
Class A common stock       $ 0.24      $ 0.32      $ 1.10       $ 1.23    
Class B common stock       $ 0.24      $ 0.32      $ 1.11       $ 1.23    
Basic weighted-average
common shares issued and
outstanding:
Class A common stock       30,236      24,957      29,686       22,238    
Class B common stock       4,554       13,957      4,801        17,718    
Diluted earnings per
common share:
Class A common stock       $ 0.24      $ 0.32      $ 1.07       $ 1.18    
Class B common stock       $ 0.24      $ 0.32      $ 1.07       $ 1.18    
Diluted weighted-average
common shares issued and
outstanding:
Class A common stock       35,856      40,813      35,921       42,065    
Class B common stock       5,590       15,852      6,150        19,822    
                                                                             


GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

                                             Twelve Months Ended December 31,
                                              2012             2011
                                              (In thousands)
Operating activities
Net income                                    $  47,219         $  51,722
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                 18,131            12,330
Provision for uncollectible overdrawn         62,345            61,141
accounts
Employee stock-based compensation             12,734            9,524
Stock-based retailer incentive compensation   8,251             17,337
Amortization of premium on                    1,229             251
available-for-sale investment securities
Realized gains on investment securities       (11         )     —
(Recovery) provision for uncollectible        (359        )     455
trade receivables
Impairment of capitalized software            1,029             397
Deferred income taxes                         7,224             251
Excess tax benefits from exercise of          (2,967      )     (2,951      )
options
Changes in operating assets and
liabilities:
Accounts receivable, net                      (66,099     )     (71,508     )
Prepaid expenses and other assets             (21,456     )     (2,838      )
Deferred expenses                             94                (3,100      )
Accounts payable and other accrued            31,475            (4,489      )
liabilities
Amounts due issuing bank for overdrawn        7,571             8,085
accounts
Deferred revenue                              (1,962      )     4,261
Income tax receivable                         (14,435     )     13,184      
Net cash provided by operating activities     90,013            94,052
Investing activities
Purchases of available-for-sale investment    (271,911    )     (45,056     )
securities
Proceeds from maturities of                   37,564            20,152
available-for-sale securities
Proceeds from sales of available-for-sale     81,474            —
securities
Decrease (increase) in restricted cash        12,292            (7,791      )
Payments for acquisition of property and      (40,441     )     (23,076     )
equipment
Net principal collections on loans            2,484             245
Acquisitions, net of cash acquired            (19,998     )     5,085       
Net cash used in investing activities         (198,536    )     (50,441     )
Financing activities
Proceeds from exercise of options             3,552             6,138
Excess tax benefits from exercise of          2,967             2,951
options
Net increase in deposits                      159,581           5,231
Net increase in obligations to customers      13,581           —           
Net cash provided by financing activities     179,681          14,320      
Net increase in unrestricted cash, cash       71,158            57,931
equivalents, and federal funds sold
Unrestricted cash, cash equivalents, and      225,433          167,503     
federal funds sold, beginning of year
Unrestricted cash, cash equivalents, and      $  296,591       $  225,434  
federal funds sold, end of period
                                                                
Cash paid for interest                        $  72             $  108
Cash paid for income taxes                    $  24,343         $  18,291
                                                                            


GREEN DOT CORPORATION

Reconciliation of Total Operating Revenues to Non-GAAP Total Operating
Revenues (1)

(Unaudited)

                          Three Months Ended         Twelve Months Ended
                           December 31,                December 31,
                           2012         2011 †        2012         2011 †
                           (In thousands)
Reconciliation of total
operating revenues to
non-GAAP total operating
revenues
Total operating revenues   $ 137,302     $ 119,124     $ 546,285     $ 466,848
Stock-based retailer
incentive compensation     1,266        3,552        8,251        17,337
(2)(3)
Non-GAAP total operating   $ 138,568    $ 122,676    $ 554,536    $ 484,185
revenues


Reconciliation of Net Income to Non-GAAP Net Income (1)

(Unaudited)

                              Three Months Ended       Twelve Months Ended
                               December 31,              December 31,
                               2012        2011 †       2012        2011 †
                               (In thousands, except per share data)
Reconciliation of net income
to non-GAAP net income
Net income                     $ 10,370     $ 13,649     $ 47,219     $ 51,722
Employee stock-based
compensation expense,          2,482        1,547        7,897        5,904

net of tax (4)
Stock-based retailer
incentive compensation, net    851         2,214       5,117       10,747
of tax (2)
Non-GAAP net income            $ 13,703    $ 17,410    $ 60,233    $ 68,373
Diluted earnings per share*
GAAP                           $ 0.24       $ 0.32       $ 1.07       $ 1.18
Non-GAAP                       $ 0.31       $ 0.39       $ 1.37       $ 1.55
Diluted weighted-average
shares issued and
outstanding**
GAAP                           35,856       40,813       35,921       42,065
Non-GAAP                       43,814       44,142       44,044       44,221
                                                                      

_____
*   Reconciliations between GAAP and non-GAAP diluted weighted-average shares
     issued and outstanding are provided in the next table.
**   Diluted weighted-average Class A shares issued and outstanding is the
     most directly comparable GAAP measure for the periods indicated.
     The Company identified an error in the fourth quarter of 2012 relating to
     the calculation of overdrawn account balances that affects the Company's
     financial results for the fourth quarter of 2011 and the first, second
     and third quarters of 2012. The Company has determined that the effects
     of the error were not material to any previously reported period but the
†    cumulative effect of correcting the error in the fourth quarter of 2012
     would be material. In accordance with SEC guidance, the Company will
     revise prior period financial information in its 2012 Annual report on
     Form 10-K. In this filing, the Company will include more detail on the
     corrected financial amounts for previous annual and interim periods.
     Please refer to Summary of Revised Prior Quarters schedule for further
     details.
     


GREEN DOT CORPORATION

Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average Shares issued and
Outstanding (1)

(Unaudited)

                                   Three Months Ended   Twelve Months Ended
                                    December 31,           December 31,
                                    2012       2011       2012        2011
                                    (In thousands)
Reconciliation of GAAP to
non-GAAP diluted weighted-average
shares issued and outstanding
Diluted weighted-average shares     35,856      40,813     35,921       42,065
issued and outstanding*
Assumed conversion of
weighted-average shares of          6,859       1,789      6,859        451
preferred stock
Weighted-average shares subject     1,099      1,540     1,264       1,705
to repurchase
Non-GAAP diluted weighted-average   43,814     44,142    44,044      44,221
shares issued and outstanding

_________
*  Represents the diluted weighted-average shares of Class A common stock for
    the periods indicated.


Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares Issued and
Outstanding

(Unaudited)

                                 Three Months Ended   Twelve Months Ended 
                                  December 31,           December 31,
                                  2012       2011       2012        2011
                                  (In thousands)
Supplemental detail on non-GAAP
diluted weighted-average shares
issued and outstanding
Stock outstanding as of
December 31:
Class A common stock              31,442      30,162     31,442       30,162
Class B common stock              4,553       5,280      4,553        5,280
Preferred stock (on an            6,859      6,859     6,859       6,859  
as-converted basis)
Total stock outstanding as of     42,854      42,301     42,854       42,301
December 31:
Weighting adjustment              (106    )   (58    )   (244    )    (189   )
Dilutive potential shares:
Stock options                     1,036       1,895      1,369        2,104
Restricted stock units            23          4          43           3
Employee stock purchase plan      7          —         22          2      
Non-GAAP diluted
weighted-average shares issued    43,814     44,142    44,044      44,221 
and outstanding
                                                                             


GREEN DOT CORPORATION

Reconciliation of Net Income to Adjusted EBITDA (1)

(Unaudited)

                        Three Months Ended         Twelve Months Ended
                         December 31,                December 31,
                         2012         2011 †        2012         2011 †
                         (In thousands)
Reconciliation of net
income to adjusted
EBITDA
Net income               $ 10,370      $ 13,649      $ 47,219      $ 51,722
Net interest income      (933      )   (192      )   (3,998    )   (564      )
Income tax expense       5,053         8,251         28,919        31,712
Depreciation and         5,566         3,556         18,131        12,330
amortization
Employee stock-based
compensation expense     3,692         2,482         12,734        9,524
(3)(4)
Stock-based retailer
incentive compensation   1,266        3,552        8,251        17,337    
(2)(3)
Adjusted EBITDA          $ 25,014     $ 31,298     $ 111,256    $ 122,061 
Non-GAAP total           $ 138,568    $ 122,676    $ 554,536    $ 484,185 
operating revenues
Adjusted
EBITDA/non-GAAP total
operating revenues       18.1      %   25.5      %   20.1      %   25.2      %
(adjusted EBITDA
margin)
                                                                             

    The Company identified an error in the fourth quarter of 2012 relating to
    the calculation of overdrawn account balances that affects the Company's
    financial results for the fourth quarter of 2011 and the first, second and
    third quarters of 2012. The Company has determined that the effects of the
    error were not material to any previously reported period but the
†  cumulative effect of correcting the error in the fourth quarter of 2012
    would be material. In accordance with SEC guidance, the Company will
    revise prior period financial information in its 2012 Annual report on
    Form 10-K. In this filing, the Company will include more detail on the
    corrected financial amounts for previous annual and interim periods.
    Please refer to Summary of Revised Prior Quarters schedule for further
    details.
    


Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Total Operating Revenue (1)

(Unaudited)
                                                              Range
                                                               Low      High
                                                               (In millions)
Reconciliation of total operating revenues to non-GAAP total
operating revenues
Total operating revenues                                       $ 505     $ 535
Stock-based retailer incentive compensation (2)*               5        5
Non-GAAP total operating revenues                              $ 510    $ 540

    Assumes the Company's right to repurchase lapses on 36,810 shares per
    month during 2013 of the Company's Class A common stock at $12.20 per
*  share, our market price on the last trading day of the fourth quarter
    2012. A $1.00 change in the Company's Class A common stock price
    represents an annual change of $441,720 in stock-based retailer incentive
    compensation.
    


GREEN DOT CORPORATION

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Income (1)

(Unaudited)

                                                         Range
                                                          Low         High
                                                          (In millions)
Reconciliation of net income to adjusted EBITDA
Net income                                                $  31        $ 42
Adjustments (5)                                           54          58    
Adjusted EBITDA                                           $  85        $ 100
                                                                       
Non-GAAP total operating revenues                         $  540      $ 510 
Adjusted EBITDA / Non-GAAP total operating revenues       16      %    20    %
(Adjusted EBITDA margin)
                                                                             


Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Income (1)

(Unaudited)

                                                           Range
                                                            Low       High
                                                            (In millions)
Reconciliation of net income to non-GAAP net income
Net income                                                  $ 31       $ 42
Adjustments (5)                                             11        11
Non-GAAP net income                                         $ 42       $ 53
Diluted earnings per share*
GAAP                                                        $ 0.70     $ 0.95
Non-GAAP                                                    $ 0.95     $ 1.20
Diluted weighted-average shares issued and outstanding**
GAAP                                                        36         36
Non-GAAP                                                    44         44

_____________
*   Reconciliations between GAAP and non-GAAP diluted weighted-average shares
     issued and outstanding are provided in the next table.
**   Diluted weighted-average Class A shares issued and outstanding is the
     most directly comparable GAAP measure for the periods indicated.


Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Diluted Weighted-Average Shares Issued and Outstanding (1)

(Unaudited)

                                                                Range
                                                                 Low     High
                                                                 (In millions)
Reconciliation of GAAP to non-GAAP diluted weighted-average
shares issued and outstanding
Diluted weighted-average shares issued and outstanding*          36       36
Assumed conversion of weighted-average shares of preferred       7        7
stock
Weighted-average shares subject to repurchase                    1       1
Non-GAAP diluted weighted-average shares issued and              44      44
outstanding
                                                                          

______________
*  Represents the diluted weighted-average shares of Class A common stock for
    the periods indicated.
    

GREEN DOT CORPORATION
SUMMARY OF REVISED PRIOR QUARTERS

Reconciliation of Total Operating Revenues to Non-GAAP Total Operating
Revenues†
(Unaudited)
                                      
                           2011          2012
                           Q4            Q1           Q2           Q3
                           (In thousands)
Reconciliation of total
operating revenues to
non-GAAP total operating
revenues
Total operating revenues   $ 119,123     $ 141,181     $ 135,043     $ 132,759
Stock-based retailer
incentive compensation     3,552        3,190        2,594        1,202
(2)(3)
Non-GAAP total operating   $ 122,675    $ 144,371    $ 137,637    $ 133,961
revenues
                                                                       

Reconciliation of Net Income to Non-GAAP Net Income†
(Unaudited)
                                         
                               2011         2012
                               Q4           Q1          Q2          Q3
                               (In thousands, except per share data)
Reconciliation of net income
to non-GAAP net income
Net income ††                  $ 13,649     $ 16,368     $ 10,869     $ 9,612
Employee stock-based
compensation expense,          1,547        2,149        1,860        1,469

net of tax (4)
Stock-based retailer
incentive compensation, net    2,214       1,965       1,540       730
of tax (2)
Non-GAAP net income            $ 17,410    $ 20,482    $ 14,269    $ 11,811
Diluted earnings per share*
GAAP                           $ 0.32       $ 0.37       $ 0.25       $ 0.22
Non-GAAP                       $ 0.39       $ 0.46       $ 0.32       $ 0.27
Diluted weighted-average
shares issued and
outstanding**
GAAP                           40,813       35,867       35,746       35,826
Non-GAAP                       44,142       44,156       43,925       43,894
                                                                      

*  Reconciliations between GAAP and non-GAAP diluted weighted-average shares
   issued and outstanding are provided in the next table.
** Diluted weighted-average Class A shares issued and outstanding is the most
   directly comparable GAAP measure for the periods indicated.

Reconciliation of Net Income to Adjusted EBITDA†
(Unaudited)
                                    
                         2011          2012
                         Q4            Q1           Q2           Q3
                         (In thousands)
Reconciliation of net
income to adjusted
EBITDA
Net income ††            $ 13,649      $ 16,368      $ 10,869      $ 9,612
Net interest income      (193      )   (935      )   (1,168    )   (962      )
Income tax expense       8,250         10,205        7,434         6,227
Depreciation and         3,559         3,651         4,090         4,824
amortization
Employee stock-based
compensation expense     2,482         3,489         3,132         2,420
(3)(4)
Stock-based retailer
incentive compensation   3,552        3,190        2,593        1,202     
(2)(3)
Adjusted EBITDA          $ 31,299     $ 35,968     $ 26,950     $ 23,323  
Non-GAAP total           $ 122,675    $ 144,370    $ 137,636    $ 133,961 
operating revenues
Adjusted
EBITDA/non-GAAP total
operating revenues       25.5      %   24.9      %   19.6      %   17.4      %
(adjusted EBITDA
margin)
                                                                             

     The Company identified an error in the fourth quarter of 2012 relating to
     the calculation of overdrawn account balances that affects the Company's
     financial results for the fourth quarter of 2011 and the first, second
     and third quarters of 2012. The Company has determined that the effects
†   of the error were not material to any previously reported period but the
     cumulative effect of correcting the error in the fourth quarter of 2012
     would be material. The Company will revise prior period financial
     information in its 2012 Annual report on Form 10-K. In this filing, the
     Company will include more detail on the corrected financial amounts for
     previous annual and interim periods.
     The impact to net income during the quarters ended December 31, 2011, and
††   March, 31, June 30, and September 30, 2012, was $0.4 million, $0.7
     million, $1.0 million, $1.0 million, respectively.
     

(1) To supplement the Company’s consolidated financial statements presented in
accordance with GAAP, the Company uses measures of operating results that are
adjusted to exclude various, primarily non-cash, expenses and charges. These
financial measures are not calculated or presented in accordance with GAAP and
should not be considered as alternatives to or substitutes for operating
revenues, operating income, net income or any other measure of financial
performance calculated and presented in accordance with GAAP. These financial
measures may not be comparable to similarly-titled measures of other
organizations because other organizations may not calculate their measures in
the same manner as we do. These financial measures are adjusted to eliminate
the impact of items that the Company does not consider indicative of its core
operating performance. You are encouraged to evaluate these adjustments and
the reasons we consider them appropriate.

The Company believes that the non-GAAP financial measures it presents are
useful to investors in evaluating the Company’s operating performance for the
following reasons:

  *stock-based retailer incentive compensation is a non-cash GAAP accounting
    charge that is an offset to the Company’s actual revenues from operations
    as the Company has historically calculated them. This charge results from
    the monthly lapsing of the Company’s right to repurchase a portion of the
    2,208,552 shares it issued to its largest distributor, Walmart, in May
    2010. By adding back this charge to the Company’s GAAP 2010 and future
    total operating revenues, investors can make direct comparisons of the
    Company’s revenues from operations prior to and after May 2010 and thus
    more easily perceive trends in the Company’s core operations. Further,
    because the monthly charge is based on the then-current fair market value
    of the shares as to which the Company’s repurchase right lapses, adding
    back this charge eliminates fluctuations in the Company’s operating
    revenues caused by variations in its stock price and thus provides insight
    on the operating revenues directly associated with those core operations;
  *the Company records employee stock-based compensation from period to
    period, and recorded employee stock-based compensation expenses of
    approximately $3.7 million and $2.5 million for the three-month periods
    ended December31, 2012 and 2011, respectively. By comparing the Company’s
    adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per
    share in different historical periods, investors can evaluate the
    Company’s operating results without the additional variations caused by
    employee stock-based compensation expense, which may not be comparable
    from period to period due to changes in the fair market value of the
    Company’s Class A common stock (which is influenced by external factors
    like the volatility of public markets and the financial performance of the
    Company’s peers) and is not a key measure of the Company’s operations;
  *adjusted EBITDA is widely used by investors to measure a company’s
    operating performance without regard to items, such as interest expense,
    income tax expense, depreciation and amortization, employee stock-based
    compensation expense, and stock-based retailer incentive compensation
    expense, that can vary substantially from company to company depending
    upon their respective financing structures and accounting policies, the
    book values of their assets, their capital structures and the methods by
    which their assets were acquired; and
  *securities analysts use adjusted EBITDA as a supplemental measure to
    evaluate the overall operating performance of companies.

The Company’s management uses the non-GAAP financial measures:

  *as measures of operating performance, because they exclude the impact of
    items not directly resulting from the Company’s core operations;
  *for planning purposes, including the preparation of the Company’s annual
    operating budget;
  *to allocate resources to enhance the financial performance of the
    Company’s business;
  *to evaluate the effectiveness of the Company’s business strategies; and
  *in communications with the Company’s board of directors concerning the
    Company’s financial performance.

The Company understands that, although adjusted EBITDA and other non-GAAP
financial measures are frequently used by investors and securities analysts in
their evaluations of companies, these measures have limitations as an
analytical tool, and you should not consider them in isolation or as
substitutes for analysis of the Company’s results of operations as reported
under GAAP. Some of these limitations are:

  *that these measures do not reflect the Company’s capital expenditures or
    future requirements for capital expenditures or other contractual
    commitments;
  *that these measures do not reflect changes in, or cash requirements for,
    the Company’s working capital needs;
  *that these measures do not reflect interest expense or interest income;
  *that these measures do not reflect cash requirements for income taxes;
  *that, although depreciation and amortization are non-cash charges, the
    assets being depreciated or amortized will often have to be replaced in
    the future, and these measures do not reflect any cash requirements for
    these replacements; and
  *that other companies in the Company’s industry may calculate these
    measures differently than the Company does, limiting their usefulness as
    comparative measures.

(2) This expense consists of the recorded fair value of the shares of Class A
common stock for which the Company’s right to repurchase has lapsed pursuant
to the terms of the May 2010 agreement under which they were issued to
Wal-Mart Stores, Inc., a contra-revenue component of the Company’s total
operating revenues. Prior to the three months ended June 30, 2010, the Company
did not record stock-based retailer incentive compensation expense. The
Company will, however, continue to incur this expense through May 2015. In
future periods, the Company does not expect this expense will be comparable
from period to period due to changes in the fair value of its Class A common
stock. The Company will also have to record additional stock-based retailer
incentive compensation expense to the extent that a warrant to purchase its
Class B common stock vests and becomes exercisable upon the achievement of
certain performance goals by PayPal. The Company does not believe these
non-cash expenses are reflective of ongoing operating results.

(3) The Company does not include any income tax impact of the associated
non-GAAP adjustment to non-GAAP total operating revenues or adjusted EBITDA,
as the case may be, because each of these non-GAAP financial measures is
provided before income tax expense.

(4) This expense consists primarily of expenses for employee stock options.
Employee stock-based compensation expense is not comparable from period to
period due to changes in the fair market value of the Company’s Class A common
stock (which is influenced by external factors like the volatility of public
markets and the financial performance of the Company’s peers) and is not a key
measure of the Company’s operations. The Company excludes employee stock-based
compensation expense from its non-GAAP financial measures primarily because it
consists of non-cash expenses that the Company does not believe are reflective
of ongoing operating results. Further, the Company believes that it is useful
to investors to understand the impact of employee stock-based compensation to
its results of operations.

(5) These amounts represent estimated adjustments for net interest income,
income taxes, depreciation and amortization, employee stock-based compensation
expense, and stock-based retailer incentive compensation expense. Employee
stock-based compensation expense and stock-based retailer incentive
compensation expense include assumptions about the future fair market value of
the Company’s Class A common stock (which is influenced by external factors
like the volatility of public markets and the financial performance of the
Company’s peers).

Contact:

Green Dot Corporation
Investor Relations
Christopher Mammone, 626-765-2427
IR@greendot.com
or
Media Relations
Liz Brady DiTrapano, 646-277-1226
 
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