Vantiv, Inc. : Vantiv Reports Second Quarter 2013 Results

          Vantiv, Inc. : Vantiv Reports Second Quarter 2013 Results

                             Vantiv News Release

                  Vantiv Reports Second Quarter 2013 Results

                     Net Revenue Grew 14% to $297 Million
       Adjusted EBITDA Margin Expanded More Than 60 Basis Points to 51%
        Pro Forma Adjusted Net Income per Share Increased 25% to $0.40
Revised 2013 Guidance for Net Revenue to $1.19 to $1.21 Billion and Pro Forma
                 Adjusted Net Income per Share to $1.55-$1.59
  Agreement to Acquire Element Payment Services, Inc. to Accelerate Partner
                  Strategy in the Integrated Payments Market

CINCINNATI, July  25,  2013 -  Vantiv,  Inc.  (NYSE: VNTV)  ("Vantiv"  or  the 
"Company") today announced financial results for the second quarter ended June
30, 2013. Revenue increased  11% to $519.4 million  in the second quarter  as 
compared to $469.6 million  in the prior year  period. Net revenue  increased 
14% to $296.9 million in the second  quarter as compared to $260.4 million  in 
the prior year period. Vantiv's 14%  net revenue growth was due primarily  to 
8% transaction growth and a 6% expansion in net revenue per transaction. On a
GAAP basis, net  income attributable  to Vantiv,  Inc. was  $28.9 million,  or 
$0.20 per  diluted  share  during  the second  quarter,  compared  with  $23.0 
million, or $0.18  per diluted  share, in the  prior year  period. Pro  forma 
adjusted net income increased  22% in the second  quarter to $82.7 million  as 
compared to $68.0 million  in the prior year  period. Pro forma adjusted  net 
income per share increased 25% to $0.40 for the second quarter as compared  to 
$0.32 in the prior year  period. (See Schedule 2  for pro forma adjusted  net 
income, Schedule 3 for  net revenue per transaction,  and Schedule 6 for  GAAP 
net income reconciliation to pro forma adjusted net income.) 

Vantiv's  superior  cost   structure  continues  to   drive  high  levels   of 
profitability as reflected  by the  Company's second  quarter adjusted  EBITDA 
margin of 51.0%, which reflected more than 60 basis points in margin expansion
over the prior year  period. Adjusted EBITDA  margin expanded given  Vantiv's 
scale,  combined  with  revenue  and  cost  synergies  realized  through   the 
acquisition of Litle and  Co. ("Litle") and success  in the ecommerce  market. 
(See Schedule 8 for reconciliation from GAAP net income to adjusted EBITDA.)

Vantiv refinanced its existing  debt and borrowed  an additional $650  million 
during the second  quarter with $400  million of proceeds  used to  repurchase 
17.5 million shares  in connection with  a recent secondary  offering and  the 
remainder to be  utilized for general  corporate purposes. As  a result,  the 
Company's weighted average adjusted shares  outstanding fell to 207.9  million 
shares in  the second  quarter from  214.0 million  shares in  the prior  year 

Vantiv entered into an  agreement to acquire  Element Payment Services,  Inc., 
with the transaction  expected to close  in the third  quarter. Element is  a 
leading, independent  payments technology  company  focused on  solutions  for 
Independent Software Vendors ("ISV") and is led by a talented leadership team.
Vantiv does not expect the Element  acquisition to have a material impact  on 
the Company's full-year 2013 financial results.

"As we aggressively pursue our technology partner strategy, the acquisition of
Element Payment Services will provide  additional opportunities for Vantiv  to 
penetrate numerous high-growth  verticals by adding  unique technological  and 
sales channel capabilities to meet the needs of merchants who are increasingly
seeking solutions that  provide the  end to  end functionality  needed to  run 
their business," said Charles Drucker,  president and chief executive  officer 
at Vantiv. "As has been the case  with Litle, we expect that the  combination 
of our two companies will create powerful capabilities designed to  capitalize 
on market opportunities."

"I am proud  to report  another strong  quarter that  demonstrates our  team's 
focus on execution,"  said Drucker.  "We are  winning in  our traditional  and 
ecommerce markets while also investing for the future. Our partnerships  with 
leading  technology  providers  enable  us  to  bring  innovative  value-added 
solutions to the market and strategically  position us as a partner of  choice 
for financial institutions and merchants.  Further, the debt refinancing  and 
share repurchase that we completed during  the quarter as well as the  pending 
acquisition of  Element  demonstrate our  commitments  to growth  and  to  our 

Merchant Services
Net revenue increased 19% to $210.8 million in the second quarter as  compared 
to $176.9 million in the prior year period, primarily due to an 8% increase in
transactions and a 10% expansion in net revenue per transaction, including the
recent acquisition  of  Litle  and  debit  routing  benefits.  The  Company's 
ecommerce business continued  to generate  superior growth  during the  second 
quarter with a  38% year-over-year  increase in sales  volume on  a pro  forma 
basis, due  primarily to  strong  new sales  and  organic growth.  Sales  and 
marketing expenses increased to $70.4 million in the second quarter from $63.6
million in the prior year period.

Financial Institution Services
Net revenue increased  3% to $86.1  million in the  second quarter from  $83.4 
million in  the prior  year  period as  transactions grew  5%  year-over-year. 
Sales and marketing expenses  fell to $6.1 million  from $6.9 million in  the 
prior year period.

2013 Financial Outlook
"Benefits of  scale, revenue  and  cost synergies  associated with  growth  in 
ecommerce,  and  increased  net  revenue  per  transaction  are  driving  high 
margins," said  chief financial  officer Mark  Heimbouch. "For  2013, we  now 
expect to generate up to 100 basis points of adjusted EBITDA margin expansion.
Including the impact of the May  share repurchase as well as adjusted  EBITDA 
margin expansion, we are revising our pro forma adjusted net income per  share 
guidance range to between $1.55 and $1.59 from our previous estimate of  $1.46 
to $1.50.

Finally, we  are  tempering our  net  revenue expectations  to  reflect  lower 
consumer spending trends as well the  impact of it taking longer to  penetrate 
certain new sales channels. We now expect to generate net revenue of $1.19  to 
$1.21 billion during 2013, representing 16%  to 18% growth for the full  year, 
as compared to our  previous net revenue estimate  of $1.21 to $1.23  billion. 
Finally, we now expect to generate  GAAP earnings per diluted share of  $0.91 
to $0.96 for the full year, above our prior guidance range of $0.60 to $0.63."

Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss second quarter 2013
financial results today at 8:00 AM ET. Hosting the call will be Charles
Drucker, president and chief executive officer and Mark Heimbouch, chief
financial officer. The conference call can be accessed live over the phone by
dialing (888) 599-8691, or for international callers (913) 312-1486, and
referencing conference code 6753992. A replay will be available approximately
two hours after the call concludes and can be accessed by dialing (888)
203-1112, or for international callers (719) 457-0820, and entering replay
pass code 6753992. The replay will be available through Thursday, August 8,
2013. The call will be webcast live from the Company's investor relations
website at

About Vantiv, Inc.
Vantiv,  Inc.  (NYSE:  VNTV)  is  a  leading,  integrated  payment   processor 
differentiated by a single, proprietary technology platform. Vantiv offers  a 
comprehensive suite  of  traditional  and innovative  payment  processing  and 
technology solutions to merchants and  financial institutions of all sizes  in 
the U.S., enabling them  to address their payment  processing needs through  a 
single provider. We  build strong relationships  with our customers,  helping 
them become more efficient,  more secure and more  successful. Vantiv is  the 
third largest merchant acquirer  and the largest PIN  debit acquirer based  on 
number of  transactions in  the U.S.  The company's  growth strategy  includes 
expanding further  into  high  growth payment  segments,  such  as  ecommerce, 
payment facilitation (PayFac(TM)), mobile, prepaid and information  solutions, 
and attractive industry  verticals, such  as petroleum,  business-to-business, 
government, healthcare,  gaming and  education. For  more information,  visit


© Copyright Vantiv, LLC. All rights reserved. Vantiv, the Vantiv logo, and
all other Vantiv product or service names and logos are registered trademarks
or trademarks of Vantiv, LLC in the USA and other countries. ® indicates USA

Non-GAAP and Pro Forma Financial Measures
This earnings release  presents non-GAAP and  pro forma financial  information 
including net revenue, adjusted EBITDA, pro forma adjusted net income, and pro
forma  adjusted  net  income  per  share  information.  These  are  important 
financial performance measures for the Company, but are not financial measures
as defined by  GAAP. The presentation  of this financial  information is  not 
intended to be considered in isolation or as a substitute for, or superior to,
the financial information prepared and presented in accordance with GAAP. The
Company uses these non-GAAP and  pro forma financial performance measures  for 
financial  and  operational  decision  making  and  as  a  means  to  evaluate 
period-to-period comparisons. The  Company believes that  they provide  useful 
information about operating results, enhance the overall understanding of past
financial performance and future prospects, and allow for greater transparency
with  respect  to  key  metrics  used  by  management  in  its  financial  and 
operational decision making.  Reconciliations of these  measures to the  most 
directly comparable  GAAP financial  measures are  presented in  the  attached 

Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and
uncertainties. All statements other than statements of historical fact or
relating to present facts or current conditions included in this release are
forward-looking statements including any statements regarding guidance and
statements of a general economic or industry specific nature. Forward-looking
statements give our current expectations and projections relating to our
financial condition, results of operations, guidance, plans, objectives,
future performance and business. You can identify forward-looking statements
by the fact that they do not relate strictly to historical or current facts.
These statements may include words such as "anticipate," "estimate," "expect,"
"project," "plan," "intend," "believe," "may," "should," "can have," "likely"
and other words and terms of similar meaning in connection with any discussion
of the timing or nature of future operating or financial performance or other

The  forward-looking  statements  contained  in  this  release  are  based  on 
assumptions that we  have made  in light of  our industry  experience and  our 
perceptions  of  historical  trends,   current  conditions,  expected   future 
developments  and  other  factors  we   believe  are  appropriate  under   the 
circumstances. As you  review and consider  information presented herein,  you 
should  understand  that  these  statements  are  not  guarantees  of   future 
performance or results.  They depend  upon future  events and  are subject  to 
risks, uncertainties (many of which  are beyond our control) and  assumptions. 
Although we  believe  that  these  forward-looking  statements  are  based  on 
reasonable assumptions, you should be aware that many factors could affect our
actual future performance or results and cause them to differ materially  from 
those anticipated in the forward-looking statements. Certain of these  factors 
and other risk factors  are discussed in the  Company's filings with the  U.S. 
Securities and Exchange Commission  and include, but are  not limited to:  (i) 
the ability to keep  pace with rapid developments  and change in our  industry 
and provide new services to our clients; (ii) competition within our industry;
(iii) disclosure of unauthorized data and security breaches that expose us  to 
liability, litigation and reputational damage; (iv) failures of our systems or
systems of our third party providers;  (v) our inability to expand our  market 
share in existing  markets or  expand into new  markets; (vi)  our ability  to 
identify acquisition, joint venture and partnership candidates and finance  or 
integrate businesses, services or technologies that we acquire; (vii)  failure 
to comply with applicable  requirements of Visa,  MasterCard or other  payment 
networks; (viii)  changes in  payment  network rules  or standards;  (ix)  our 
ability  to  pass  fee  increases  along  to  merchants;  (x)  termination  of 
sponsorship or clearing services provided  to us; (xi) increased attrition  of 
our merchants, independent sales organizations, or ISOs, or referral partners;
(xii) inability  to  successfully renew  or  renegotiate agreements  with  our 
clients  or  ISOs;  (xiii)  reductions  in  overall  consumer,  business   and 
government spending; (xiv) fraud by merchants or others; (xv) a decline in the
use of credit, debit or prepaid cards; (xvi) consolidation in the banking  and 
retail industries; and (xvii) the effects of governmental regulation,  changes 
in laws and outcomes  of future litigation or  investigations. Should one  or 
more of  these risks  or uncertainties  materialize, or  should any  of  these 
assumptions prove incorrect, our actual results may vary in material  respects 
from those projected in these forward-looking statements. More information on
potential factors  that  could  affect the  Company's  financial  results  and 
performance  is  included  from  time  to  time  in  the  "Risk  Factors"  and 
"Management's Discussion and  Analysis of Financial  Condition and Results  of 
Operations" sections of  the Company's  periodic reports filed  with the  SEC, 
including the Company's Form  10-K for the year  ended December 31, 2012,  its 
Form 10-Q for  the quarter ended  March 31, 2013,  and its Form  10-Q for  the 
quarter ended June 30, 2013 to be filed with the SEC.

Any forward-looking statement made by us in this release speaks only as of the
date on  which we  make it.  Factors or  events that  could cause  our  actual 
results to differ may emerge from time to time, and it is not possible for  us 
to predict all  of them.  We undertake no  obligation to  publicly update  any 
forward-looking statement,  whether as  a result  of new  information,  future 
developments or otherwise, except as may be required by law.

Nathan Rozof, CFA
Senior Vice President, Investor Relations
(866) 254-4811
(513) 900-4811

Andrew Ciafardini
Director of Public Relations


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Q2 2013 Earnings Release Schedules


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Source: Vantiv, Inc. via Thomson Reuters ONE
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