October 23, 2014 2:17 PM ET

IT Services

Company Overview of Blackhawk Network Holdings, Inc.

Company Overview

Blackhawk Network Holdings, Inc. provides various prepaid products and payment services. It distributes digital media and e-commerce, dining, electronics, entertainment, fashion, gasoline, home improvement, and travel closed loop gift cards; and single-use non-reloadable gift cards. The company also distributes prepaid handsets; and a range of prepaid wireless or cellular cards that are used to load airtime onto the prepaid handsets. In addition, it provides various prepaid financial services products, including general purpose reloadable (GPR) cards comprising Green Dot and NetSpend branded cards, as well as PayPower; and Reloadit, a GPR reload network product that allows consumers to reloa...

6220 Stoneridge Mall Road

Pleasanton, CA 94588

United States

Founded in 2001

1,316 Employees

Phone:

925-226-9990

Fax:

925-226-9083

Key Executives for Blackhawk Network Holdings, Inc.

Chairman and Chief Executive Officer
Age: 64
Total Annual Compensation: $751.9K
President
Age: 47
Total Annual Compensation: $438.8K
Chief Financial Officer
Age: 59
Total Annual Compensation: $366.7K
Group Vice President
Age: 51
Total Annual Compensation: $286.8K
Senior Vice President of Products and Marketing
Age: 45
Total Annual Compensation: $256.7K
Compensation as of Fiscal Year 2013.

Blackhawk Network Holdings, Inc. Key Developments

Blackhawk Network Holdings, Inc. Announces Management Changes

Blackhawk Network Holdings, Inc. appointed Richard H. Bard and Jane J. Thompson as directors. Mr. Bard will serve as a Class III director with a term expiring at the 2016 annual meeting of stockholders. Ms. Thompson will serve as a Class I director with a term expiring at the 2017 annual meeting of stockholders. The board of directors accepted the resignation of Douglas J. Mackenzie as a member of the Audit Committee of the board of directors, effective October 6, 2014, and appointed Mr. Bard, as a member of the Audit Committee to replace Mr. Mackenzie on that same date. Mr. Mackenzie remains a member of the board of directors, a member of the Conflicts Committee and a member of the Nominating and Corporate Governance Committee.

Blackhawk Network Holdings, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 6, 2014; Provides Effective Tax Rate Guidance for the Fourth Quarter of 2014; Revises Earnings Guidance for the Full Year 2014

Blackhawk Network Holdings, Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 6, 2014. For the third quarter, the company reported total operating revenues of $269,027,000 compared to $205,996,000 for the same period a year ago. Operating income was $1,663,000 compared to $3,734,000 last year. Income before income tax expense was $765,000 compared to $3,793,000 last year. Net income attributable to the company $555,000 or $0.01 per diluted share compared to $2,355,000 or $0.04 per basic and diluted share last year. Adjusted operating revenues were $130,428,000 compared to $100,635,000 last year. EBITDA was $12,128,000 compared to $10,046,000 last year. Adjusted EBITDA was $14,714,000 compared to $11,477,000 last year. Adjusted income before income tax was $7,436,000 compared to $6,430,000 last year. Adjusted net income attributable available to common shareholders was $4,681,000 compared to $53,074,000 last year. Adjusted diluted earnings per share were $0.09 compared to $0.08 per share last year. This increase in revenue was due to a 28% increase in commissions and fees driven primarily by higher closed loop gift card sales, a 73% increase in program, interchange, marketing and other fees due to strong open loop gift card sales in the U.S., issuing bank contract amendments and the acquisition of InteliSpend, and a 4% increase in product sales. The decline in net income was driven primarily by intangibles asset amortization expense and interest expense related to the InteliSpend and Retailo acquisitions. Capital expenditures were $7.7 million up 24% from last year. For the nine months, the company reported total operating revenues of $786,086,000 compared to $616,908,000 for the same period a year ago. Operating income was $6,391,000 compared to $9,413,000 last year. Income before income tax expense was $4,436,000 compared to $9,845,000 last year. Net income attributable to the company was $2,830,000 or $0.05 per basic and diluted share compared to $4,832,000 or $0.09 per basic and diluted share last year. Net cash used in operating activities was $63,409,000 compared to $537,589,000 last year. Expenditures for property, equipment and technology and intangible assets were $25,960,000 compared to $21,349,000 last year. Adjusted operating revenues were $385,963,000 compared to $297,412,000 last year. EBITDA was $38,544,000 compared to $26,376,000 last year. Adjusted EBITDA was $48,225,000 compared to $37,361,000 last year. Adjusted income before income tax was $28,319,000 compared to $23,114,000 last year. Adjusted net income attributable available to common shareholders was $17,619,000 compared to $14,391,000 last year. Adjusted diluted earnings per share were $0.33 compared to $0.28 per share last year. Net cash flow used in operating activities was $463,409,000 compared to $537,589,000 a year ago. Adjusted net cash from operating activities was $7,536,000 compared to $1,130,000 last year. Expenditures for property, equipment and technology amounted to $25,960,000 compared to $21,349,000 a year ago. CapEx was $26.0 million, up 22% from a year ago. The company expects full year 2014 CapEx, excluding the Parago acquisition, in the range of $35 million to $37 million or around 5.3% of adjusted operating revenues, down from 5.6% in 2013. The company expects to finish the year within its previous guidance range for adjusted operating revenues of $670 million to $690 million. Now this guidance excludes the acquisitions of Parago and CardLab, which should add another $20 million to $25 million revenues, resulting in total revenues in the range of $690 million to $715 million. The expects adjusted net income to be high end of its previously stated annual guidance range of $64 million to $67 million or $1.19 to $1.24 per diluted share. The company expects total 2014 earnings to be in the range of $1.54 to $1.59 per share. The company expects year 2014 tax rate on adjusted income before income taxes to be just under 39%. The company expects fourth quarter 2014 tax rate to be just under 39%.

Blackhawk Network Holdings, Inc. to Report Q3, 2014 Results on Oct 08, 2014

Blackhawk Network Holdings, Inc. announced that they will report Q3, 2014 results at 8:30 AM, US Eastern Standard Time on Oct 08, 2014

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
September 25, 2014
Parago, Inc.
Merger/Acquisition
September 15, 2014
CardLab, Inc.
Spin-Off/Split-Off
February 20, 2014
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