Blackhawk Network Holdings, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017
Feb 15 17
Blackhawk Network Holdings, Inc. reported unaudited consolidated financial results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported total operating revenues of $780,550,000 compared to $756,434,000 for the same period a year ago. Operating income was $51,363,000 compared to $68,875,000 last year. Income before income tax expense was $39,660,000 compared to $64,238,000 last year. Net income attributable to company was $24,650,000 or $0.43 per diluted share compared to $41,614,000 or $0.73 per diluted share reported last year. Adjusted operating revenues were $352,012,000 compared to $335,292,000 last year. EBITDA was $89,703,000 compared to $92,825,000 last year. Adjusted EBITDA was $107,285,000 compared to $107,566,000 last year. Adjusted net income attributable to the company was $57,078,000 compared to $58,568,000 last year. Adjusted diluted earnings per share were $1.00 compared to $1.03 a year ago. Increase in operating Revenue was due to a 20% increase in operating revenues from the international segment driven, in part, by the acquisition of Grass Roots in October 2016, and a 29% increase in operating revenues from our incentives segment, which included the results from the acquisitions of Giftcards.com and Extrameasures in early 2016. Increase in adjusted operating Revenue was driven by growth in both the international and incentives segments, partially offset by a decline in U.S. retail due to the EMV impact.
For the year, the company reported total operating revenues of $1,899,778,000 compared to $1,801,078,000 for the same period a year ago. Operating income was $23,249,000 compared to $87,746,000 last year. Income before income tax expense was $936,000 compared to $72,605,000 last year. Net income attributable to company was $4,658,000 or $0.08 per diluted share compared to $45,609,000 or $0.81 per diluted share last year. Net cash provided by operating activities was $185,231,000 compared to $204,680,000 last year. Expenditures for property, equipment and technology were $52,332,000 compared to $52,738,000 last year. Adjusted operating revenues were $889,268,000 compared to $829,237,000 last year. EBITDA was $133,673,000 compared to $161,095,000 last year. Adjusted EBITDA was $189,200,000 compared to $193,949,000 last year. Adjusted net income attributable to the company was $81,970,000 compared to $89,685,000 last year. Adjusted diluted earnings per share were $1.43 compared to $1.59 per share last year. Adjusted free cash flow was $109,249,000 compared to $113,110,000 last year. GAAP operating income was lower compared to the comparable 2015 periods due to the EMV impact, but also the result of a significant increase in amortization expenses related to acquisitions completed during 2015 and 2016.
For the year 2017, on GAAP basis, the company expects operating revenues in a range between $2,148 million to $2,312 million; net income to be in the range of $22 million to $26 million and diluted EPS to be in the range of $0.35 to $0.44.
For the year 2017, on Non-GAAP basis, the company expects adjusted operating revenues to be in the range of $1,028 million to $1,141 million; adjusted EBITDA to be in the range of $225 million to $250 million; adjusted net income to be in the range of $91 million to $100 million and diluted EPS to be in the range of $1.56 to $1.70. The company sees adjusted operating revenue in 2017 growing between 16% to 28% over financial year 2016 levels to $1.03 billion to $1.14 billion. The company forecasts adjusted free cash flow in the range of $115 million to $135 million.