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|Vantiv Reports Second Quarter 2014 Results|
Vantiv Reports Second Quarter 2014 Results
Second Quarter Net Revenue Increased 12% to $331 Million and Pro Forma Adjusted Net Income Per Share Increased 18% to $0.47
Achieved Several Notable Milestones in the Execution of its Corporate Strategy, Including the Acquisition of Mercury
Increased Full-Year 2014 Guidance for Net Revenue and Pro Forma Adjusted Net Income per Share
CINCINNATI, July 31, 2014 - Vantiv, Inc. (NYSE: VNTV) ("Vantiv" or the "Company") today announced financial results for the second quarter ended June 30, 2014. Revenue increased 17% to $608.7 million as compared to $519.4 million in the prior year period. Net revenue increased 12% to $331.3 million as compared to $296.9 million in the prior year period, primarily due to a 15% increase in transactions. Vantiv incurred $70.9 million in non-recurring charges during the second quarter including costs related to the acquisition of Mercury, associated financing costs, and other noncash items, resulting in a GAAP net loss attributable to Vantiv, Inc. of ($1.4) million or ($0.01) per diluted share, compared with GAAP net income attributable to Vantiv, Inc. of $28.9 million or $0.20 per diluted share in the prior year period. Pro forma adjusted net income increased 12% in the second quarter to $92.7 million as compared to $82.7 million in the prior year period. Pro forma adjusted net income per share increased 18% to $0.47 as compared to $0.40 in the prior year period. (See Schedule 2 for pro forma adjusted net income and Schedule 6 for GAAP net income reconciliation to pro forma adjusted net income.)
"The second quarter marks an exciting time at Vantiv," said Charles Drucker, president and chief executive officer at Vantiv. "We delivered another solid quarter of growth, and we executed on many of our strategic initiatives. By investing in high-growth channels, we have positioned Vantiv as a leader in the industry that will win share as the market evolves."
Financial Institution Services
Third Quarter and Full-Year 2014 Financial Outlook
For the third quarter of 2014, net revenue is expected to be $376 to $382 million, representing growth of 28% to 30% above the prior year period. Pro forma adjusted net income per share is expected to be $0.47 to $0.49, an increase of 18% to 23% above the prior year period. GAAP net income per share attributable to Vantiv, Inc. is expected to be $0.18 to $0.20 for the third quarter of 2014.
Earnings Conference Call and Audio Webcast
About Vantiv, Inc.
© Copyright Vantiv, LLC. All rights reserved. Vantiv, the Vantiv logo, and all other Vantiv product or service names and logos are registered trademarks or trademarks of Vantiv, LLC in the USA and other countries. ® indicates USA registration.
Non-GAAP and Pro Forma Financial Measures
The forward-looking statements contained in this release are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual future performance or results and cause them to differ materially from those anticipated in the forward-looking statements. Certain of these factors and other risk factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission and include, but are not limited to: (i) the ability to keep pace with rapid developments and change in our industry and provide new services to our clients; (ii) competition within our industry; (iii) disclosure of unauthorized data and security breaches that expose us to liability, litigation and reputational damage; (iv) failures of our systems or systems of our third party providers; (v) our inability to expand our market share in existing markets or expand into new markets; (vi) our ability to identify acquisition, joint venture and partnership candidates and finance or integrate businesses, services or technologies that we acquire; (vii) failure to comply with applicable requirements of Visa, MasterCard or other payment networks; (viii) changes in payment network rules or standards; (ix) our ability to pass fee increases along to merchants; (x) termination of sponsorship or clearing services provided to us; (xi) increased attrition of our merchants or referral partners; (xii) inability to successfully renew or renegotiate agreements with our clients or referral partners; (xiii) reductions in overall consumer, business and government spending; (xiv) fraud by merchants or others; (xv) a decline in the use of credit, debit or prepaid cards; (xvi) consolidation in the banking and retail industries; and (xvii) the effects of governmental regulation, changes in laws and outcomes of future litigation or investigations. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. More information on potential factors that could affect the Company's financial results and performance is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's periodic reports filed with the SEC, including the Company's Form 10-K for the year ended December 31, 2013 and its subsequent filings with the SEC.
Any forward-looking statement made by us in this release speaks only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.