Douglas J. Mackenzie Resigns from Board of Directors of Blackhawk Network Holdings, Inc
May 29 15
On May 22, 2015, Douglas J. Mackenzie, a member of the Board of Directors of Blackhawk Network Holdings, Inc., notified the company of his decision to resign from the board of directors, effective as of that date.
Blackhawk Network Holdings, Inc. Files Second Amended and Restated Certificate of Incorporation
May 21 15
Blackhawk Network Holdings, Inc. announced the company's shareholders have approved a proposal to reclassify the outstanding shares of the Company's Class B common stock as shares of common stock and to rename the Class A common stock as 'common stock. To implement the share conversion, Blackhawk on May 22, 2015 filed its Second Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware. The conversion became effective immediately upon filing of the Second Amended and Restated Certificate of Incorporation.
Blackhawk Network Holdings, Inc. Announces Consolidated Unaudited Financial Results for the First Quarter Ended March 28, 2015; Provides Earnings Guidance for the Second Quarter and Full Year of 2015
Apr 28 15
Blackhawk Network Holdings, Inc. announced consolidated unaudited financial results for the first quarter ended March 28, 2015. For the quarter, the company reported operating revenues of $319.7 million against $233.1 million a year ago. This increase was due to a 24% increase in commissions and fees driven primarily by higher closed loop gift card sales; a 105% increase in program, interchange, marketing and other fees due to strong open loop gift card sales in the U.S. retail segment and growth in the incentives and rewards segment, reflecting the acquisition of Parago in late 2014; and a 36% increase in product sales primarily due to growth at Cardpool. Operating income was $10,915,000 against operating loss of $4,213,000 a year ago. Income before taxes was $7,357,000 against loss before taxes of $4,667,000 a year ago. Net income attributable to company was $4,706,000 against net loss attributable to company of $2,841,000 a year ago. The increase was driven primarily by a 37% increase in operating revenues and a $4.1 million non-cash contingent consideration credit related to the acquisition of CardLab, partially offset by higher operating expenses including amortization of intangibles and interest expense related to the acquisition of Parago. Adjusted operating revenues were $164.4 million against $110.8 million a year ago. Adjusted EBITDA was $27.2 million against $12 million a year ago. Adjusted net income was $18.9 million against $5.2 million a year ago. Earnings per diluted share were $0.08 against diluted loss per share of $0.06 a year ago. Adjusted earnings per share were $0.34 against $0.10 a year ago. Net cash provided used in operating activities was $675,222,000 against $519,086,000 a year ago. Expenditures for property, equipment and technology was $13,843,000 against $8,538,000 a year ago. Adjusted income before income tax expense was $15,206,000 against $6,112,000 a year ago. Adjusted net cash used in operating activities was $14,492,000 against $35,010,000 a year ago. Adjusted EBITDA grew 127%, higher than adjusted operating revenue growth due to expense leverage in sales and marketing and general and administrative expenses. Excluding its 2014 acquisitions, adjusted operating revenues grew 27%, or 30% on a constant currency basis. Excluding 2014 acquisitions, adjusted EBITDA increased 94%, or 99% on a constant currency basis. Excluding the impact of the reduction in cash taxes payable, adjusted net income was $9.6 million, an increase of 153% from $3.8 million for the quarter ended March 22, 2014. Adjusted net income grew faster than adjusted EBITDA primarily due to slower growth in depreciation as compared to adjusted EBITDA growth and a 210 basis point reduction in the first quarter 2015 effective tax rate on adjusted income before taxes as compared to 2014. Excluding the impact of the reduction in cash taxes payable, adjusted diluted EPS increased 143% to $0.17.
The company expects growth in adjusted operating revenues in the U.S. retail segment to moderate somewhat from the first quarter growth rate, and that's reflected, of course, in adjusted operating growth projection of between 27% and 34%. On the profitability side, the second quarter of 2014 had a benefit related to a $3.9 million favorable litigation settlement that reduced G&A expenses and does create about a $0.045 adjusted earnings per share headwind for the year-over-year comparison. Adjusted EPS, excluding the cash tax benefit, would, in fact, grow in a range of 19% to 27%.
The company expects high end of guidance up by $0.05, but are leaving the lower end of the range unchanged at this early point in the year. The original forecast of about a $0.02 headwind for FX, which, at the adjusted operating revenue line, equated to $12 million and about $2.5 million at the adjusted EBITDA line. And the company is going to bump that to about a $0.03 headwind, a $15 million impact at the adjusted operating revenue line and $3.8 million impact at the adjusted EBITDA line. The company expects adjusted operating revenue increase of $157 million to $192 million, approximately half of that growth will be generated from acquisitions last year, with the remainder being organic growth of approximately 12% to 15% from the existing businesses, so in line with previous announced. The company expects full year CapEx in the range of about $50 million. The forecast of full year cash flow at $100 million plus.