https://assets.capyfin.com/instruments/678fdc13234e27009c5d5aca.png avatar
Bread Financial
🇺🇸 NYSE:BFH
View Company
OverviewEarningsDividends
•
Sep 30, 2021

Bread Financial Q3 2021 Earnings Report

Alliance Data's results for the quarter ended September 30, 2021 were announced, showcasing considerable operating progress with improved net income and substantial increase in pre-tax pre-provision earnings.

Key Takeaways

Alliance Data reported a 5% increase in revenue to $1,099 million, a 65% increase in EBT to $291 million, and a net income of $224 million, or $4.47 per diluted share. Credit sales increased by 20%, supporting expectations for continued receivables growth. The company also expects to spin off its LoyaltyOne segment as Loyalty Ventures Inc. on November 5th.

Net income for the quarter was $224 million, or $4.47 per diluted share.

Credit sales increased by 20%, driving expectations for future receivables growth.

Strategic transformation continues with the anticipated spinoff of LoyaltyOne® segment as Loyalty Ventures Inc. on November 5th.

Alliance Data has a recent agreement with Sezzle which leverages Bread’s fintech payments platform for installment lending across Sezzle’s merchant network.

Total Revenue
$1.1B
Previous year: $1.05B
+4.6%
EPS
$4.47
Previous year: $3.45
+29.6%
Credit sales
$7.38B
Previous year: $6.15B
+20.0%
Net principal loss rate
3.9%
Previous year: 5.8%
-32.8%
Delinquency rate
3.8%
Previous year: 4.7%
-19.1%
Gross Profit
$484M
Previous year: $424M
+14.1%
Cash and Equivalents
$3.17B
Previous year: $3.08B
+3.0%
Total Assets
$22.3B
Previous year: $21.1B
+5.4%

Bread Financial

Bread Financial

Bread Financial Revenue by Segment

Forward Guidance

For full-year 2021, the company expects double-digit growth in credit sales, receivables at year-end to be in line with year-end 2020 levels, and a net loss rate in the high 4% range. Total revenue is anticipated to be down low-single-digits compared to 2020.

Positive Outlook

  • Credit sales are expected to increase at a double-digit growth rate.
  • Receivables growth momentum is expected to continue into 2022.
  • Net loss rate is expected in the high 4% range for the year.
  • Company is investing over $100 million in digital innovation and technology enhancements in 2021.
  • Company plans to continue to invest in digital innovation and technology enhancements in 2022.

Challenges Ahead

  • Receivables at year-end 2021 are projected to be in line with year-end 2020 levels.
  • Total revenue for the year is anticipated to be down low-single-digits compared to 2020.
  • Expect credit metrics and payment rates to continue to moderate into 2022 as stimulus programs wind down.
  • Monitor uncertainties in the market.
  • Company is partially driven by improved credit and collections efficiencies

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Bread Financial