Alliance Data System Annual Report 2021

Total Page:16

File Type:pdf, Size:1020Kb

Alliance Data System Annual Report 2021 Alliance Data System Annual Report 2021 Form 10-K (NYSE:ADS) Published: February 26th, 2021 PDF generated by stocklight.com UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-15749 ALLIANCE DATA SYSTEMS CORPORATION (Exact name of registrant as specified in its charter) Graphic Delaware 31-1429215 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3075 Loyalty Circle 43219 Columbus, Ohio (Zip Code) (Address of principal executive offices) (614) 729-4000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol Name of each exchange on which registered Common stock, par value $0.01 per share ADS New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Y es ⌧ No ◻ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes◻ No ⌧ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ⌧ Accelerated filer ◻ Non-accelerated filer ◻ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ⌧ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes☐ No ⌧ As of June 30, 2020, the aggregate market value of the common stock held by non-affiliates of the registrant was approximately$ 2.1 billion, based upon the closing price of $45.12 per share on the New York Stock Exchange on June 30, 2020, which was the last business day of the registrant’s most recently completed second fiscal quarter. As of February 18, 2021, 49,695,051 shares of common stock were outstanding. Documents Incorporated By Reference Certain information called for by Part III is incorporated by reference to certain sections of the Proxy Statement for the 2021 Annual Meeting of our stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2020. ALLIANCE DATA SYSTEMS CORPORATION INDEX Form 10- K Report Item No. Page Caution Regarding Forward-Looking Statements 1 PART I 1. Business 2 1A. Risk Factors 12 1B. Unresolved Staff Comments 28 2. Properties 28 3. Legal Proceedings 29 4. Mine Safety Disclosures 29 PART II 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer 30 Purchases of Equity Securities 6. Selected Financial Data 32 7. Management’s Discussion and Analysis of Financial Condition and Results of 35 Operations 7A. Quantitative and Qualitative Disclosures About Market Risk 49 8. Financial Statements and Supplementary Data 50 9. Changes in and Disagreements with Accountants on Accounting and Financial 50 Disclosure 9A. Controls and Procedures 50 9B. Other Information 51 PART III 10. Directors, Executive Officers and Corporate Governance 51 11. Executive Compensation 51 12. Security Ownership of Certain Beneficial Owners and Management and Related 51 Stockholder Matters 13. Certain Relationships and Related Transactions, and Director Independence 51 14. Principal Accounting Fees and Services 51 PART IV 15. Exhibits, Financial Statement Schedules 52 16. Form 10-K Summary 64 Caution Regarding Forward-Looking Statement s This Form 10-K and the documents incorporated by reference herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward- looking statements include, but are not limited to, statements we make regarding strategic initiatives, our expected operating results, future economic conditions including currency exchange rates, future dividend declarations and the guidance we give with respect to our anticipated financial performance. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this report, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, the following: ● continuing impacts related to COVID-19, including government economic stimulus, relief measures for impacted borrowers and depositors, labor shortages due to quarantine, reduction in demand from clients, supply chain disruption for our reward suppliers and disruptions in the airline or travel industries; ● loss of, or reduction in demand for services from, significant clients; ● increases in fraudulent activity, net charge-offs in credit card and loan receivables or increases or volatility in the allowance for loan loss that may result from the application of the current expected credit loss model; ● failure to identify, complete or successfully integrate or disaggregate business acquisitions or divestitures; ● continued financial responsibility with respect to a divested business, including required equity ownership, guarantees, indemnities or other financial obligations; ● increases in the cost of doing business, including market interest rates; ● inability to access financial or capital markets, including asset-backed securitization funding or deposits markets; ● loss of active AIR MILES® Reward Program collectors; ● increased redemptions by AIR MILES Reward Program collectors; ● unfavorable fluctuations in foreign currency exchange rates; ● limitations on consumer credit, loyalty or marketing services from new legislative or regulatory actions related to consumer protection and consumer privacy; ● increases in Federal Deposit Insurance Corporation (“FDIC”), Delaware or Utah regulatory capital requirements or other support for our banks; ● failure to maintain exemption from regulation under the Bank Holding Company Act; ● loss or disruption, due to cyber attack or other service failures, of data center operations or capacity; ● loss of consumer information due to compromised physical or cyber security; and ● those factors discussed in Item 1A of this Form 10-K, elsewhere in this Form 10-K and in the documents incorporated by reference in this Form 10-K. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Further risks and uncertainties include, but are not limited to, the impact of strategic initiatives on us or our business if any transactions are undertaken, and whether the anticipated benefits of such transactions can be realized. Any forward-looking statements contained in this Form 10-K speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward- looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. 1 PART I Item 1. Business. We are a leading provider of data-driven marketing, loyalty and payment solutions serving large, consumer-based industries.
Recommended publications
  • Inspiring Change One Byone 2011 Accountability Report Table of Contents
    INSPIRING CHANGE ONE BYONE 2011 ACCOUNTABILITY REPORT TABLE OF CONTENTS 3 INTRODUCTION 22 ONE CULTURE • Celebrating success one by one 4 OUR ACHIEVEMENTS • Who we are • Why we’re here 7 ONE RESPONSIBILITY • LoyaltyOne by the numbers • Never stop learning • A responsibility to inspire • Women in Leadership • Our accountabilities • Road maps to success • Engaging our stakeholders • Learning… at the next level • The value of flexibility 11 ONE ENVIRONMENT • A work environment that makes a difference • Working together for a healthier planet • Rewarding recognition Reducing our harmful impact • Keeping associates in the know • Our organizational carbon footprint • Survey says… engaged, very engaged • How we have helped reduce our carbon footprint • Our paper policy 30 ONE COMMUNITY • Purchasing Green Energy • Enriching relationships, building communities • Our Work at Home Program • Our new Volunteer Time-Off Program • Waste reduction • Canadian Red Cross Japan Tsunami and • Sustainable purchasing Earthquake Relief Adopting environmentally sanctioned facilities • Holiday Charity Drive • LEEDing the way • Walk for Kids Help Phone • Challenges • Alexandra Park Community Centre Enabling associates to live more sustainable lives • CommunityOne Day • We’re passionate about green • Motionball • The Green fleet • Moving forward • Eco-friendly entertainment Driving and inspiring change 34 AWARDS • Moving forward 36 ABOUT US • We help people make decisions that count • Our lines of business • Our international partnerships 38 GRI Content IndeX • Our GRI application level 42 FAST FACTS • LoyaltyOne AIR MILES • AIR MILES inTroDUCTion It’s great to be green Welcome to our 2011 Accountability Report. Here you’ll discover the many ways that we, as a business and as individuals, are living and breathing sustainability.
    [Show full text]
  • Annual Information Form for the Financial Year
    ANNUAL INFORMATION FORM FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2017 March 2, 2018 TABLE OF CONTENTS EXPLANATORY NOTES ............................................................................................................................................ 3 Forward-Looking Statements .................................................................................................................................... 3 CORPORATE STRUCTURE ....................................................................................................................................... 4 Name, Address and Incorporation ............................................................................................................................. 4 Intercorporate Relationship ....................................................................................................................................... 4 GENERAL DEVELOPMENT OF THE BUSINESS .................................................................................................... 4 History ....................................................................................................................................................................... 4 THE BUSINESS ........................................................................................................................................................... 6 Overview ..................................................................................................................................................................
    [Show full text]
  • The Loyalty Trap
    The Loyalty Trap 2017 | Stephen Shaw Ever since reward programs first became popular over fifty years ago, marketers have been trapped into thinking that customer loyalty can be bought. But customers today are looking for more than just rewards – they want to be treated honestly and fairly. She jokingly refers to it as her “hobby”. Every weekend, before heading out to shop, she scans the grocery and drug store flyers in search of deals. But she’s not looking for ordinary coupons and discounts – she’s searching for Air Miles offers. She is an avid points collector, hooked on earning miles, and loves to play the loyalty game: taking advantage of bonus miles and special promotions, just so she can cash them in for free trips. A typical calculation might go something like this: “Robaxacet Platinum gets me 10 miles for buying two. But that’s still pretty expensive. If I wait for the drug store’s standard deal – spend a total of $50 to get 100 miles – am I further ahead?” She works diligently at collecting those miles – so diligently in fact that when Air Miles occasionally bungles a transaction by failing to award her the right number of miles, she’s instantly on the phone to them, The coalition program Air Miles demanding a correction. Of course, whenever she has dominates loyalty marketing in Canada to wait longer than necessary “due to unexpected call with 9 million “collectors” volume”, which is much of the time, her indignation grows by the minute. Even more bothersome: the ordeal she has to go through to redeem those hard-earned miles.
    [Show full text]
  • Loyaltyone Accessability Report 2012
    Turning passion into purpose 2012 ACCOUNTABILITY REPORT TABLE OF CONTENTS 3 INTRODUCTION 23 ONE CULTURE • The people behind our passion 4 OUR ACHIEVEMENTS • Who we are • Why we’re here 7 ONE RESPONSIBILITY • LoyaltyOne by the numbers • Responsibility with purpose • Never stop learning • LoyaltyOne’s Corporate Responsibility Commitment • Women in Leadership • Our accountabilities • Road maps to success • Engaging our stakeholders • An engagement to remember • Rewarding recognition 11 ONE ENVIRONMENT • Keeping associates in the know • Renewing our commitment to the planet • Promoting wellness RECUCING OUR HARMFUL IMPACT 30 ONE COMMUNITY • Three ways we make a difference • Growing our community impact • Our organizational carbon footprint • A force of volunteers • How we have helped reduce our carbon footprint • Holiday Charity Drive • Sustainable purchasing • Walk So Kids Can Talk • Our paper policy • Alexandra Park Community Centre • FSC • CommunityOne Day • Purchasing green energy • Motionball® • Our Work at Home Program • Princess Margaret Weekend to End Women’s Cancers • Energy efficiency • Moving forward for our communities • What is LEED®? • Our LEED® EB:O&M journey 34 AWARDS ENABLING ASSOCIATES TO LIVE MORE SUSTAINABLE LIVES • Living sustainability 36 ABOUT US • A greener fleet • We enrich relationships • The fairest of them all • Healthy and delicious dishes 38 GRI CONTENT INDEX • Our GRI application level MAKING A DIFFERENCE ONE ACTION AT A TIME • Looking ahead 42 FAST FACTS • LoyaltyOne • AIR MILES INTRODUCTION Welcome to our 2012 Accountability Report In 2012, we celebrated our 20th anniversary for the AIR MILES® Reward Program, continued our sustainability efforts, and deepened the focus on our communities. It’s been a great year and we’ve seen countless displays of how we’ve turned our passion into purpose to make a difference in our communities and beyond.
    [Show full text]
  • Loyaltyone, Points Optimum and Everything in Between
    CoverApr11.indd 1 16/03/11 3:36 PM a weekly experience TASTES CHANGE. STYLE IS FOREVER. Fashion & Beauty. Home Décor. Entertaining. Make a date with all things aspirational and inspirational in the newly redesigned Globe Style every Saturday, in paper and online. To include yourself in the good company that this magazine keeps, call 1.800.387.9012, email [email protected], or visit globelink.ca/style ST.19095.GlobeAndMail.Ad.indd 1 16/03/11 4:57 PM CONTENTS April 2011 • volume 22, issue 6 4 EDITORIAL The importance of being there 8 UPFRONT Skittles gets touchy online, Dove encourages tweeting and dancing 12 CREATIVE Adidas gets in the game with its biggest global campaign 14 DECONSTRUCTED Molson goes premium with M, but how classy is it? 27 15 YOUTH REPORT Strategy teams with DECODE to explore how teens are communicating online, and which brands are getting in on the action 27 WHO Cynthia Dyson keeps BC Hydro connected 29 BIZ Spin Master makes a new play for 34 toy wars domination 34 MEDIA Top youth brands micro-target teens 29 via values and fandom 38 FORUM ON THE COVER The world is always watching to see what Adidas will come Tony Chapman advocates a new ad world up with next. Whether it’s street parties order, Ed Lee ponders a post-social demo or Star Wars, the youth brand has clearly cornered the market on cool. So when 40 SHOPPER MARKETING FORUM Adidas revealed its new global campaign created by Sid Lee that leverages sports A look back at who delivered insights stars and celebrities (see p.
    [Show full text]
  • Issued 25 January 2016
    Issued 25 January 2016 How Do I Reward Thee? Let Me Count the Ways Dear Traveler There are many methods to love your best customers; IdeaWorksCompany explores seven of them. Contents Your local shopkeeper lives loyalty every day .................................................................................... 4 It all began with traditional frequent flier programs .......................................................................... 5 Loyalty is increased through a wide array of solutions ..................................................................... 6 Good service and value are pre-conditions for sustaining loyalty ................................................ 15 Disclosure to Readers of this Report IdeaWorksCompany makes every effort to ensure the quality of the information in this report. Before relying on the information, you should obtain any appropriate professional advice relevant to your particular circumstances. IdeaWorksCompany cannot guarantee, and assumes no legal liability or responsibility for, the accuracy, currency or completeness of the information. The views expressed in the report are the views of the author, and do not represent the official view of Switchfly. Issued by IdeaWorksCompany.com LLC Shorewood, Wisconsin, USA www.IdeaWorksCompany.com The free distribution of this report is made possible through the sponsorship of Switchfly. Seven Ways of Loyalty IdeaWorksCompany.com LLC © 2016 Page 1 About Jay Sorensen, Writer of the Report Jay Sorensen‘s research and reports have made him a leading authority on frequent flier programs and the ancillary revenue movement. He is a regular keynote speaker at the annual MEGA Event, spoke at IATA Passenger Services Symposiums in Abu Dhabi and Singapore, and has testified to the US Congress on ancillary revenue issues. His published works are relied upon by airline executives throughout the world and include first-ever guides on the topics of ancillary revenue and loyalty marketing.
    [Show full text]
  • Reimagining Loyalty Programs an Interview with Bryan Pearson, Loyalty Marketing Pioneer
    Podcast Reimagining Loyalty Programs An Interview with Bryan Pearson, Loyalty Marketing Pioneer the company – or to the program? That question has dogged the loyalty Bryan Pearson: business ever since the advent of frequent fl ier programs in the 1980s which were designed as “barriers to exit” - a way to discourage people Bryan Pearson is the from switching airlines. And that is largely how most loyalty programs former CEO of LoyaltyOne, operate today, driving repeat sales through “this for that” reward which runs the Air Miles schemes. The term loyalty is really a misnomer, mistaken for what it program in Canada, and actually means: sacrifi cing a bit of margin to win repeat business. In a best-selling author and other words, a promotional ploy. speaker on the subject of Most people admit these programs do little to make them feel more loyalty marketing. loyal – especially since most are merely variations on the “earn and burn” concept. They see them as “savings” programs, not “loyalty” programs. The benefi t to the loyalty program operator Welcome to the Customer First Thinking podcast, Episode 12. My is easy to see – the capability to track and infl uence individual name is Stephen Shaw, the host of this podcast. In this episode we buying behaviour; for members, however, the program experience interview Bryan Pearson, the former CEO of LoyaltyOne and a is purely transactional. Nothing about it makes them feel special or true pioneer in loyalty marketing. appreciated – more a contractual commitment than an expression of gratitude for their business. Canadians do love their loyalty programs.
    [Show full text]
  • 2014 Annual Report Letter to Stockholders | 10-K $
    2014 ANNUAL REPORT LETTER TO STOCKHOLDERS | 10-K $ ADJUSTED EBITDA,NET $ 14% INCRRREAEAEASEE 5.3B REVENUE $122 23% INCREASE CORE EARNINGS PER SHARE 26%266% INCREASEE 15,0005 + EMPLOYEES 25% INCREASESE DEAR STOCKHOLDERS: LOOKING BACK 2014 was, first and foremost, a year about LoyaltyOne®, which operates the AIR MILES® growth. We added $1 billion to revenue, Reward Program in Canada and BrandLoyalty, representing a 23% increase over last year. had an overall solid year. Revenue was up 9% Most notably, our organic growth was about and adjusted EBITDA up 10% on a constant 11%, or 4 times 2014 U.S. GDP growth, and currency basis and including the pro forma above our long-term target of 3 times U.S. 2013 results for BrandLoyalty. On a reported GDP. In addition, we augmented our growth by basis, revenue and adjusted EBITDA were expanding our international footprint with the up 53% and 36%, respectively. BrandLoyalty addition of a majority interest in Netherlands- exceeded expectations, growing its revenue based BrandLoyalty, and our digital product and adjusted EBITDA at the fastest clip of any offering with the addition of Conversant. This of our businesses during the year. Notably, balanced growth was not at the expense of BrandLoyalty’s new client partnerships profitability, however, as we increased core further strengthened its position as the loyalty EPS by 26%1. powerhouse in Europe, while also expanding During the year, high-performing teams across into the key markets of Russia and China. all our businesses were laser-focused on Our Canadian AIR MILES Reward Program, leveraging rich data into measurable results however, came in lower than anticipated with for our clients through loyalty platforms suited its key metric, AIR MILES reward miles issued, for a broad spectrum of vertical markets.
    [Show full text]
  • The 2015 Loyalty Census BIG NUMBERS, BIG HURDLES
    01 Loyalty Census FEBRUARY 2015 February 2015 The 2015 Loyalty Census BIG NUMBERS, BIG HURDLES y, COLLOQUY Research Director WWW.COLLOQUY.COM 1 02 Loyalty Census FEBRUARY 2015 TABLE OF CONTENTS [01] OVERVIEW [03] PART 1: THE BIG PICTURE [05] U.S. INFOGRAPHIC [06] PART 2: CENSUS BY SECTOR Breakdowns by Industry [13] PART 3: RESULTS FOR CANADA Growth in Every Single Category [15] CANADA INFOGRAPHIC [16] PART 4: TAKEAWAYS From the 2015 COLLOQUY Loyalty Census [18] APPENDIX: METHODOLOGY [19] ABOUT THE AUTHOR [19] ABOUT COLLOQUY WWW.COLLOQUY.COM 01 Loyalty Census FEBRUARY 2015 The 2015 COLLOQUY Loyalty Census Big Numbers, Big Hurdles Everyone seems to want an invitation to the party, but it turns out more than half of them stand in the corner and refuse to mingle once they get there. Americans are still signing up for loyalty programs in droves – memberships jumped 25.5%, to 3.3 billion, from 2012 to 2014 – but more than half of them don’t even bother to participate in those memberships, much less become loyal, engaged and enthusiastic program members. Indeed, the size of the membership COLLOQUY took the tempera- base isn’t the best indicator of ture of the loyalty-marketing success; in fact, programs whose landscape for the first time in members aren’t engaged, no 2000 to quantify the size of the matter how many there are, waste industry and break it down by resources – of both the loyalty sector. Those results created a operators and their valuable benchmark for the industry and customers. On the other hand, inspired us to take on much more engaged and devoted loyalty ambitious analyses in 2006, 2008, members form lasting and prof- 2010 and 2012.
    [Show full text]
  • Rewards-Supply Aggregate Planning in the Management of Loyalty Reward Programs - a Stochastic Linear Programming Approach
    Rewards-Supply Aggregate Planning in the Management of Loyalty Reward Programs - A Stochastic Linear Programming Approach YUHENG CAO, B.I.B., M.Sc. A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management Sprott School of Business Carleton University Ottawa, Ontario, Canada September 2011 ©2011YuhengCao All Rights Reserved Library and Archives Bibliotheque et 1*1 Canada Archives Canada Published Heritage Direction du Branch Patrimoine de I'edition 395 Wellington Street 395, rue Wellington OttawaONK1A0N4 Ottawa ON K1A 0N4 Canada Canada Your Tile Votre reference ISBN: 978-0-494-83243-1 Our file Notre reference ISBN: 978-0-494-83243-1 NOTICE: AVIS: The author has granted a non­ L'auteur a accorde une licence non exclusive exclusive license allowing Library and permettant a la Bibliotheque et Archives Archives Canada to reproduce, Canada de reproduire, publier, archiver, publish, archive, preserve, conserve, sauvegarder, conserver, transmettre au public communicate to the public by par telecommunication ou par I'lnternet, preter, telecommunication or on the Internet, distribuer et vendre des theses partout dans le loan, distribute and sell theses monde, a des fins commerciales ou autres, sur worldwide, for commercial or non­ support microforme, papier, electronique et/ou commercial purposes, in microform, autres formats. paper, electronic and/or any other formats. The author retains copyright L'auteur conserve la propriete du droit d'auteur ownership and moral rights in this et des droits moraux qui protege cette these. Ni thesis. Neither the thesis nor la these ni des extraits substantiels de celle-ci substantial extracts from it may be ne doivent etre imprimes ou autrement printed or otherwise reproduced reproduits sans son autorisation.
    [Show full text]
  • Aimia Sells Air Miles Trademarks for Canada to Diversified Royalty Corp
    Aimia Inc. Aimia sells Air Miles Trademarks for Canada to Diversified Royalty Corp. for total consideration of up to $67 million MONTREAL, Aug. 25, 2017 /CNW Telbec/ - Aimia Inc. (TSX: AIM), the data-driven marketing and loyalty analytics company, announced today that it has sold the Air Miles Trademarks for Canada to Diversified Royalty Corp. (TSX: DIV). Aimia transfers the Air Miles Trademarks, license and royalty agreements for Canada to Diversified Royalty Corp. for a cash consideration of approximately $53.75 million. An additional contingent consideration, up to a maximum of approximately $13.75 million, may be paid within the next three years, based on the performance of the program. Aimia expects to pay cash taxes related to the sale of these trademarks in 2018 of between $13 million and $16 million. Annual license fee revenue generated from the trademarks being sold has historically represented approximately $8.5 million on average. The Air Miles Trademarks for Canada are used under license and exclusive right by LoyaltyOne, Inc. "This transaction is part of our plan to simplify our business. We continue to evaluate and consider further disposals of non-core investments and assets to strengthen our balance sheet," said David Johnston, Group Chief Executive, Aimia. About Aimia Aimia Inc. (TSX: AIM) is a data-driven marketing and loyalty analytics company. We provide our clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both our clients and consumers. With about 2,300 employees across 15 countries, Aimia partners with groups of companies (coalitions) and individual companies to help generate, collect and analyze customer data and build actionable insights.
    [Show full text]
  • Loyalty and Rewards
    A SPECIAL ADVERTISING FEATURE BY MEDIAPLANET LOYALTY & REWARDS SECRETS OF THE JET SET “Word Travels” co-host Julia Dimon shares her expertise as a seasoned travel rewards collector 4TIPS Spread the word Keep em’ coming FOR COLLECTING The research The science POINTS—AND behind consumer behind loyalty and MAKING THE MOST OF THEM opinion branding PHOTO: PRIVATE A FREE NIGHT HOW LONG DID IT TAKE YOU TO IS CLOSER THAN EARN YOUR LAST REWARD? YOU THINK. With over 6,500 locations, rewards are right around the corner. NO, REALLY. Really. Earn points for free nights, air travel, gift cards and more. Or, earn Aeroplan® Miles for award travel. Join for free at WyndhamRewards.com/Star Points or miles are earned for qualifying stays at participating properties. As of May 2011, Travelodge® hotels in Canada do not participate in Wyndham Rewards. © 2011 Travel Rewards, Inc. Visit wyndhamrewards.com for program Terms & Conditions and Privacy Policy. ®Aeroplan is a registered trademark of Aeroplan Canada Inc. 2 · JUNE 2011 A SPECIAL ADVERTISING FEATURE BY MEDIAPLANET CHALLENGES TIP 1 GIVE YOUR WE RECOMMEND REWARDS PROVIDER Rewarding FEEDBACK research Why consumers SO THEY CAN love to spread the SERVE YOU word—good and BETTER bad. PAGE 4 “Word-of-mouth is a powerful force, epsecially today when we have so many choices... We value what we hear from those we trust.” Treating you right p. 9 What should customers expect from their rewards company? Cut back on cards p. 10 How smartphones are ringing in the future of rewards collection. Who doesn’t love a perk? These days, it’s the norm for most retailers to award hard-earned points in exchange for hard-earned dollars.
    [Show full text]