February 23, 2017 2:28 AM ET

IT Services

Company Overview of Blackhawk Network Holdings, Inc.

Company Overview

Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards in physical and electronic forms; and related prepaid products and payment services. It operates through US Retail, International Retail, and Incentives & Rewards segments. The company distributes closed loop gift cards in the areas of digital media and e-commerce, dining, electronics, entertainment, fashion, gasoline, home improvement, and travel; leisure themed and promotional gift cards; single-use non-reloadable open loop gift cards; and prepaid wireless or cellular cards used to load airtime onto the prepaid handsets, as well as sells handsets. It also offers PayPower general purpose reloadable (...

6220 Stoneridge Mall Road

Pleasanton, CA 94588

United States

Founded in 2001

Phone:

925-226-9990

Fax:

925-226-9083

Key Executives for Blackhawk Network Holdings, Inc.

Chief Executive Officer, President and Director
Age: 49
Total Annual Compensation: $636.5K
Executive Chairman
Age: 66
Total Annual Compensation: $819.3K
Chief Financial Officer and Chief Administrative Officer
Age: 61
Total Annual Compensation: $443.3K
Senior Vice President of U.S. Retail
Age: 47
Total Annual Compensation: $347.5K
Compensation as of Fiscal Year 2015.

Blackhawk Network Holdings, Inc. Key Developments

Blackhawk Network Holdings Appoints Thomas Barnds as Class II Director and Member to the Audit Committee

On February 13, 2017, the Board of Directors of Blackhawk Network Holdings, Inc. appointed Thomas Barnds as a Class II director and a member to the Audit Committee. Tom Barnds, 48, has been an entrepreneur and executive for more than twenty years. He is currently a Managing Partner of and founding partner at Accel-KKR, where he has been employed since 2000. In addition, Mr. Barnds currently serves and has served on the boards of various private technology companies.

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

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.

Blackhawk Network Eyes Acquisitions

Blackhawk Network Holdings, Inc. (NasdaqGS:HAWK) is looking for acquisitions. Talbott Roche, Chief Executive Officer, President and Director said, "Finally we continue to evaluate a pipeline of synergistic acquisition opportunities, particularly in the incentives and content areas. We believe acquisitions can fuel our growth even as growth rates slow in our traditional retail business. We see acquisitions, along with the build-out of our digital capabilities and platforms, as the best allocation of our free cash flow and available borrowings. During tomorrow's analyst day we'll present return on invested capital of our incentives acquisitions as well as total Company return on invested capital."

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Recent Private Companies Transactions

Type
Date
Target
Buyback
October 12, 2016
--
Merger/Acquisition
August 31, 2016
The Grass Roots Group PLC
Merger/Acquisition
March 31, 2016
extrameasures LLC
 

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