Menu

Worldpay Investor Relations

Connecting to financial markets
Conversing with investors and shareholders

More »

News Release

Printer Friendly Version   View printer-friendly version
« Back
Vantiv Reports First Quarter 2015 Results

Vantiv Reports First Quarter 2015 Results

Net Revenue Increased 30% to $374 Million
Pro Forma Adjusted Net Income per Share Increased 15% to $0.45

CINCINNATI, April 30, 2015 - Vantiv, Inc. (NYSE: VNTV) ("Vantiv" or the "company") today announced financial results for the first quarter ended March 31, 2015. Revenue increased 31% to $705.6 million in the first quarter as compared to $537.6 million in the prior year period. Net revenue increased 30% to $374.5 million in the first quarter as compared to $288.5 million in the prior year period, primarily due to strong growth in our Merchant Services segment. On a GAAP basis, net income attributable to Vantiv, Inc. was $19.0 million or $0.13 per diluted share in the first quarter as compared to $28.1 million or $0.18 per diluted share in the prior year period. Pro forma adjusted net income increased 15% to $89.4 million in the first quarter as compared to $77.6 million in the prior year period. Pro forma adjusted net income per share increased 15% to $0.45 in the first quarter as compared to $0.39 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.)

"We delivered strong results for the first quarter of 2015," said Charles Drucker, president and chief executive officer at Vantiv. "Our results reflect the successful execution of our strategy, which is to build on our core strengths while expanding into high growth channels and verticals. By focusing on these priorities, we continue to consistently grow at above market rates and win market share."

Merchant Services
Merchant Services net revenue increased 42% to $290.7 million in the first quarter as compared to $205.3 million in the prior year period, primarily due to a 33% increase in transactions and a 6% increase in net revenue per transaction. Our prior acquisition of Mercury Payment Systems contributed 32 percentage points of net revenue growth in the first quarter. Sales and marketing expenses increased 54% to $110.2 million in the first quarter as compared to $71.8 million in the prior year period, primarily due to impacts from the Mercury acquisition.

Financial Institution Services
Financial Institution Services net revenue increased 1% to $83.8 million in the first quarter as compared to $83.2 million in the prior year period as a 5% increase in transactions was partially offset by lower net revenue per transaction. Sales and marketing expenses decreased 12% to $5.9 million in the first quarter as compared to $6.7 million in the prior year period.

Second Quarter Financial Outlook
Based on the current level of transaction trends and new business activity, net revenue for the second quarter of 2015 is expected to be $405 to $410 million, representing growth of 22% to 24% above the prior year period. Pro forma adjusted net income per share for the second quarter of 2015 is expected to be $0.53 to $0.55, an increase of 13% to 17% above the prior year period. GAAP net income per share attributable to Vantiv, Inc. is expected to be $0.23 to $0.25 for the second quarter of 2015.

Earnings Conference Call and Audio Webcast
The company will host a conference call to discuss the first quarter 2015 financial results today at 8:00 a.m. EDT. The conference call can be accessed live over the phone by dialing (888) 211-4439, or for international callers (913) 312-1381, and referencing conference code 2226766. A replay will be available approximately two hours after the call concludes and can be accessed by dialing (888) 203-1112, or for international callers (719) 457-0820, and entering replay passcode 2226766. The replay will be available through Thursday, May 14, 2015. The call will also be webcast live from the company's investor relations website at http://investors.vantiv.com. Following completion of the call, a recorded replay of the webcast will be available on the website.

About Vantiv, Inc.
Vantiv, Inc. (NYSE: VNTV) is a leading payment processor differentiated by an integrated technology platform. Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to merchants and financial institutions of all sizes, enabling them to address their payment processing needs through a single provider. We build strong relationships with our customers, helping them become more efficient, more secure and more successful. Vantiv is the second largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. The company's growth strategy includes expanding further into high-growth channels and verticals, including integrated payments, ecommerce, and merchant bank. For more information, visit www.vantiv.com.

© 2015 Vantiv, LLC. All Rights Reserved. All trademarks, service marks and trade names referenced herein are the property of their respective owners. Vantiv and other Vantiv products and services mentioned herein as well as their respective logos are registered trademarks or trademarks of Vantiv, LLC in the U.S. and other countries.

Non-GAAP and Pro Forma Financial Measures
This earnings release presents non-GAAP and pro forma financial information including net revenue, adjusted EBITDA, pro forma adjusted net income, and pro forma adjusted net income per share. These are important financial performance measures for the company, but are not financial measures as defined by GAAP. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company uses these non-GAAP and pro forma financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules.

Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements including any statements regarding guidance and statements of a general economic or industry specific nature. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

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 risks are discussed in the company's filings with the U.S. Securities and Exchange Commission (the "SEC") and include, but are not limited to: (i) our ability to adapt to developments and change in our industry; (ii) competition; (iii) unauthorized disclosure of data or security breaches; (iv) systems failures or interruptions; (v) our ability to expand our market share or enter new markets; (vi) our ability to identify and complete acquisitions, joint ventures and partnerships; (vii) failure to comply with applicable requirements of Visa, MasterCard or other payment networks or changes in those requirements; (viii) our ability to pass along fee increases; (ix) termination of sponsorship or clearing services; (x) loss of clients or referral partners; (xi) reductions in overall consumer, business and government spending; (xii) fraud by merchants or others; (xiii) a decline in the use of credit, debit or prepaid cards; (xiv) consolidation in the banking and retail industries; (xv) the effects of governmental regulation or changes in laws; and (xvi) 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 most recently filed Annual Report on Form 10-K 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.

Contacts:
Investors
Nathan Rozof, CFA
Senior Vice President, Investor Relations
(866) 254-4811
(513) 900-4811
IR@vantiv.com

Media
Andrew Ciafardini
Vice President, Corporate Communications
(513) 900-5308
Andrew.Ciafardini@vantiv.com

Q1 2015 EARNINGS RELEASE SCHEDULES ACCCESSIBLE AT THE LINK BELOW

# # #


HUG#1917036

Payments Industry Moves to Speed Chip Card Acceptance 

Vantiv contributes to development of educational and pre-qualification process for resellers and software vendors

CINCINNATI, May 4, 2015 - Vantiv, Inc. (NYSE: VNTV), a leading provider of payment processing services and related technology solutions for merchants and financial institutions of all sizes, played an integral role in creating the U.S. EMV VAR Qualification Program. The program combines a chip education component with an accreditation program to streamline and simplify the testing and certification process for Value Added Resellers (VARs) and Independent Software Vendors (ISVs).

Through a coordinated, industry-wide effort with Payments Security Task Force, PCI Security Standards Council and the EMV Migration Forum, VARs and ISVs will be better equipped to integrate chip cards into small and mid-sized merchants' point-of-sales solutions in advance of the liability shifts scheduled to go into effect by major U.S. payment networks in October 2015.

The optional U.S. EMV VAR Qualification Program consists of three key components:

·           An educational curriculum that provides a clear explanation of how to implement chip in the U.S. electronic payments marketplace
·           A list of service providers independently accredited by the major payment networks to provide chip consulting and expertise
·           A pre-qualification process run by the accredited service providers to help VARs and ISVs begin the implementation and testing process before they work with acquirers to achieve final certification

"Vantiv is the first company to successfully reach this level of EMV testing and certification to our customers through our VIABLE EMV testing platform which launched in June last year and has been used by many merchants and ISVs to successfully certify," said Patty Walters, senior vice president, EMV corporate strategy at Vantiv. "ISVs using VIABLE have full control over their EMV network validation and pre-cert activities to help give them the support they need  as we near the October deadline, now less than 100 business days away."

VARs and ISVs that work with Vantiv have the ability to pre-qualify their payment solution for each of the major payment networks with an accredited service provider. The outcome will be a streamlined go-to-market process for the thousands of solutions that will be introduced as the U.S. migrates to EMV.

To learn more about the educational efforts, visit http://www.emv-connection.com/chip-education-for-vars-isvs-and-merchants/. To begin the pre-qualification process, visit
https://www.pcisecuritystandards.org/
approved_companies_providers/var_qualifications_program.php.

About the Payments Security Task Force
The Payments Security Task Force was formed in early 2014 to drive executive-level discussion for the purpose of enhancing payments system security. The Task Force includes a diverse group of participants in the U.S. electronic payments industry, including payment networks, banks of various sizes, credit unions, acquirers, retailers, point-of-sale device manufacturers and industry trade groups.

About Vantiv, Inc.
Vantiv, Inc. (NYSE: VNTV) is a leading payment processor differentiated by an integrated technology platform. Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to merchants and financial institutions of all sizes, enabling them to address their payment processing needs through a single provider. We build strong relationships with our customers, helping them become more efficient, more secure and more successful. Vantiv is the second largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. The company's growth strategy includes expanding further into high-growth channels and verticals, including integrated payments, ecommerce, and merchant bank. For more information, visit www.vantiv.com.

    
© 2015 Vantiv, LLC. All Rights Reserved. All trademarks, service marks and trade names referenced herein are the property of their respective owners. Vantiv and other Vantiv products and services mentioned herein as well as their respective logos are registered trademarks or trademarks of Vantiv, LLC in the U.S. and other countries.

Contacts
Lori Stafford-Thomas
Director, Public Relations
970-335-4904
lori.stafford-thomas@vantiv.com

Beth Sullivan
Manager, External Communications
513-900-4212
elizabeth.sullivan@vantiv.com


HUG#1918223