NetSpend Holdings, Inc. (NASDAQ:NTSP), a leading provider of
general-purpose reloadable prepaid debit cards and related financial
services, today announced financial results for the fourth quarter and
year ended December 31, 2012.
"We ended the fourth quarter hitting all of our targets and delivered
strong financial results for 2012," said Dan Henry, chief executive
officer of NetSpend. "We had a banner year in terms of signing up new
partners, executing our retail expansion efforts and growing our
business in every channel. From the momentum we created last year, we
expect a continued fast pace of growth in all areas of our business."
Full Year 2012 Highlights:
Q4 2012 Highlights:
Our Annual Report on Form 10-K for the year ended December 31, 2012 will
contain a further description of our key business metrics.
Fiscal Fourth Quarter 2012 Results
Revenues were $89.7 million for the quarter ended December 31, 2012, an
increase of approximately 17% over the $76.8 million of revenues
recorded in the same quarter of 2011. This increase was substantially
driven by the increase in direct deposit accounts, and to a lesser
extent, the expansion of product features across NetSpend's direct
deposit customer base. Interchange revenue represented approximately 22%
of total revenue during the three months ended December 31, 2012.
Net income was $10.1 million for the quarter ended December 31, 2012, an
increase of 5% over the net income of $9.6 million recorded in the
quarter ended December 31, 2011. NetSpend's net income for the quarter
ended December 31, 2012 includes an aggregate of $10.8 million of net
interest expense, income tax expense, depreciation and amortization and
settlement gains and other losses. Net income for the quarter ended
December 31, 2012 also includes approximately $3.0 million in
stock-based compensation expense. For the quarter ended December 31,
2011, the comparable amount of net interest expense, income tax expense,
depreciation and amortization and settlement gains and other losses was
$11.2 million. Net income for the quarter ended December 31, 2011 also
includes approximately $2.4 million in stock-based compensation expense.
NetSpend reported that it expects full year 2013 revenue to be between
$414 and $424 million, its adjusted EBITDA to fall between $119 and $125
million and its adjusted net income per fully diluted share to be
between $0.76 and $0.81.
The foregoing expectations reflect the following assumptions:
Investor Conference Call and Webcast
NetSpend will host an investor conference call to discuss its fourth
quarter and fiscal year 2012 results today, February 13, 2013, at
5:00 p.m. EDT. The conference call can be accessed live over the phone
by dialing (877) 288-1043 or (970) 315-0267 for international callers. A
replay will be available until February 20, 2013 at (855) 859-2056 or
(404) 537-3406 for international callers; the conference ID is 96037708.
The call will be webcast live from NetSpend's website at http://investor.netspend.com.
Non-GAAP Financial Information
To supplement NetSpend's consolidated financial statements presented in
accordance with United States Generally Accepted Accounting Principles
("GAAP"), this press release includes EBITDA, Adjusted EBITDA and
Adjusted Net Income. EBITDA, Adjusted EBITDA and Adjusted Net Income are
not measures of financial performance under GAAP. Accordingly, they
should not be considered a substitute for net income, operating income
or other income or cash flow data prepared in accordance with GAAP.
These non-GAAP financial measures may be different from similarly-titled
non-GAAP financial measures used by other companies. We believe that the
presentation of these non-GAAP financial measures provides useful
information to management and investors regarding underlying trends in
NetSpend's business and provides improved comparability between periods
in different years. Reconciliations between GAAP measures and non-GAAP
measures and between actual results and adjusted results are provided at
the end of this press release.
Cautionary Note Regarding Forward-Looking
This press release contains forward-looking statements, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended, and Rule 3(b)-6 under the
Securities Exchange Act of 1934, as amended. These statements include,
among other things, statements regarding future events that involve
risks and uncertainties. Actual results may differ materially from those
contained in the forward-looking statements contained in this release,
and reported results should not be considered as an indication of future
performance. Reliance on any forward-looking statement involves risks
and uncertainties and although NetSpend believes that the assumptions on
which the forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate, and, as a result, the
forward-looking statements based on those assumptions could be
materially incorrect. These factors include but are not limited to:
The potential risks and uncertainties that could cause actual results to
differ from those projected are discussed in greater detail in
NetSpend's filings with the Securities Exchange Commission ("SEC"),
which are available on NetSpend's website at www.netspend.com
and on the SEC website at www.sec.gov.
All information provided in this release and in the attachments is as of
February 13, 2013, and, except as required by law, NetSpend does not
intend to update this information as a result of future events or
NetSpend is a leading provider of general-purpose reloadable (GPR)
prepaid debit cards and related financial services to the estimated 68
million underbanked consumers in the United States who do not have a
traditional bank account or who rely on alternative financial services.
The Company's mission is to develop products and services that empower
underbanked consumers with the convenience, security and freedom to be
self-banked. Headquartered in Austin, TX, NetSpend is traded on the
NASDAQ stock exchange under the symbol NTSP. Please visit http://www.netspend.com
for more information.
Follow NetSpend on Twitter: http://twitter.com/netspend
or Facebook: http://www.facebook.com/netspend
Accounts receivable, net of allowance for doubtful accounts of
$518 as of December 31, 2012 and $581 as of December 31, 2011
Adjustments to reconcile net income to net cash provided by
Proceeds from the re-issuance of treasury stock under employee
stock purchase plan
NetSpend Holdings, Inc.
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