February 19, 2018 9:47 PM 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 in the United States and internationally. It operates through three segments: U.S. Retail, International, and Incentives & Rewards. The company distributes closed loop gift cards in the areas of digital media and e-commerce, dining, electronics, entertainment, fashion, transportation, home improvement, and travel; non-reloadable open loop gift cards; and prepaid wireless or cellular cards that are used to load airtime onto the prepaid handsets, as well as sells handsets. It also offers general purpose reloadable (GPR) ...

6220 Stoneridge Mall Road

Pleasanton, CA 94588

United States

Founded in 2001

3,191 Employees

Phone:

925-226-9990

Fax:

925-226-9083

Key Executives for Blackhawk Network Holdings, Inc.

CEO, President & Director
Age: 50
Total Annual Compensation: $736.5K
Executive Chairman
Age: 67
Total Annual Compensation: $825.0K
Senior VP of U.S. Business
Age: 48
Total Annual Compensation: $393.3K
Senior VP & CTO
Age: 42
Total Annual Compensation: $235.4K
General Counsel & Secretary
Age: 47
Total Annual Compensation: $306.5K
Compensation as of Fiscal Year 2016.

Blackhawk Network Holdings, Inc. Key Developments

Blackhawk Network Holdings, Inc. Expands Partnership with eBay Inc. to Provide B2B Gift Card Solutions

Blackhawk Network Holdings, Inc. announced that it has expanded its longtime partnership with eBay Inc. to provide the online marketplace with end-to-end business-to-business (B2B) gift card services. These services will assist eBay with accelerating its growth in the B2B gift card space and with widening its ability to penetrate the loyalty and incentives market.

Charles O. Garner Joins Blackhawk Network Holdings, Inc. Announces Executive Changes

On October 23, 2017, Mr. Charles O. Garner joined Blackhawk Network Holdings, Inc. as its Chief Financial Officer and will report to Talbott Roche, President and Chief Executive Officer. Mr. Garner from 2016 to 2017, served as Executive Vice President, Chief Financial Officer and Chief Administrative Officer of Zelis Healthcare Corp., where he directed day-to-day financial and operational activities. Mr. Jerry Ulrich, Chief Financial Officer and Chief Administrative Officer of the company, has transitioned out of his role as Chief Financial Officer and will retire from the company in November 2017.

Blackhawk Network Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the Twelve and Thirty Six Weeks Ended September 9, 2017; Provides Earnings Guidance for the Full Year of 2017; Reports Goodwill Impairment for the Third Quarter Ended September 9, 2017

Blackhawk Network Holdings, Inc. reported unaudited consolidated earnings results for the twelve and thirty six weeks ended September 9, 2017. For the twelve weeks, the company reported total operating revenues of $419,259,000 compared to $361,560,000 a year ago. This increase was due to a 9% increase in commissions and fees driven primarily by international growth, including the addition of Grass Roots which was acquired during the fourth quarter of 2016, and growth in U.S. retail physical and digital gift card TDV; a 47% increase in program and other fees primarily due to international growth including the acquisition of Grass Roots, higher U.S. retail physical and digital TDV and growth in the incentives segment; a 29.3% increase in product sales due to higher incentives and rewards sales, partially offset by a 20.0% decrease in marketing revenues across both the U.S. retail and international segments and a revenue decline at Cardpool. Operating loss was $12,701,000 compared to $10,093,000 a year ago. Loss before income tax was $19,444,000 compared to $13,417,000 a year ago. Net loss attributable to the company was $7,766,000 or $0.14 per basic and diluted share compared to $5,102,000 or $0.09 per basic and diluted share a year ago. The year-over-year decline was driven primarily by a $9 million non-cash goodwill impairment charge related to Cardpool, higher non-cash acquisition-related expenses and increased interest expense. Adjusted EBITDA was $30,953,000 compared to $26,526,000 a year ago. Adjusted net income attributable to the company was $10,228,000 or $0.18 per diluted share compared to $7,825,000 or $0.14 per diluted share a year ago. The increase was driven primarily by a lower effective tax rate on adjusted income before taxes which was 11.1% for the third quarter 2017 compared to 20.1% for the comparable 2016 period. Adjusted operating revenues totaled $208.3 million, a 23% increase from $168.9 million for the quarter ended September 10, 2016. The increase was primarily in international due to strong organic revenue growth in each region, coupled with the addition of Grass Roots and growth in the incentives loyalty business, partially offset by a decline in Cardpool adjusted operating revenues. Excluding Cardpool, U.S. retail adjusted operating revenues grew 9%. Excluding Grass Roots Meetings and Events, total company adjusted EBITDA grew 12% primarily due to strong growth in international, partially offset by a decline at Cardpool and a decline in the incentives rebate volume. Adjusted income before income tax expense was $11,712,000 compared to $9,846,000 a year ago. EBITDA was $15,053,000 compared to $12,848,000 a year ago. For the thirty six weeks, the company reported total operating revenues of $1,289,641,000 compared to $1,119,228,000 a year ago. Operating loss was $34,133,000 compared to $28,114,000 a year ago. Loss before income tax was $53,367,000 compared to $38,724,000 a year ago. Net loss attributable to the company was $27,603,000 or $0.49 per basic and diluted share compared to $19,992,000 or $0.36 per basic and diluted share a year ago. Net cash used in operating activities was $641,277,000 compared to $639,637,000 a year ago. Expenditures for property, equipment and technology were $43,484,000 compared to $33,522,000 a year ago. Adjusted EBITDA was $81,021,000 compared to $81,915,000 a year ago. Adjusted net income attributable to the company was $18,335,000 or $0.32 per diluted share compared to $24,892,000 or $0.43 per diluted share a year ago. Adjusted operating revenues were $656,492,000 compared to $537,256,000 a year ago. Adjusted income before income tax expense was $24,269,000 compared to $36,265,000 a year ago. EBITDA was $47,801,000 compared to $43,970,000 a year ago. For the full year of 2017, the company expects total operating revenues in the range of $2,169 million to $2,262 million, adjusted operating revenues in the range of $940 million to $981 million, depreciation and amortization in the range of $119 million to $124 million, EBITDA in the range of $187 million to $206 million, adjusted EBITDA in the range of $225 million to $250 million, income before income tax expense in the range of $27 million to $37 million, amortization of intangibles in the range of $62 million to $62 million, adjusted income before income tax expense in the range of $127 million to $143 million, adjusted income tax expense in the range of $36 million to $43 million, adjusted net income in the range of $91 million to $100 million, diluted earnings per share in the range of $0.35 to $0.42, and adjusted diluted earnings per share in the range of $1.56 to $1.70. The Company's revised 2017 annual free cash flow projection is in the range of $125 million to $140 million. The estimated effective tax rate for the full year to 33% came in at the year with a 34% estimate. For the third quarter, the company reported goodwill impairment of $9,000,000.

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