Alliance Data 3Q Profit Drops 29 Pct As Sales Fall

DALLAS (AP) — Marketer Alliance Data Systems Corp. said Wednesday its third-quarter profit fell 29 percent as sales fell and it was hurt by unfavorable foreign exchange rates, especially the strength of the Canadian dollar in comparison to the U.S. dollar.

The shares dropped in aftermarket trading.

The Dallas-based marketing company earned $45.8 million, or 83 cents per share, in the quarter ended Sept. 30. That is down from the $64.8 million, or 93 cents per share, it earned a year earlier.

Adjusted profit was $1.44 per share, beating a $1.34 per share consensus estimate of analysts polled by Thomson Reuters. The company said the adjusted profit excluded changes in the exchange rate for the Canadian dollar. Net income was hurt when Canadian dollars were translated into U.S. dollars.

Alliance is the parent company of LoyaltyOne, which owns and operates a Canadian loyalty program called the Air Miles Reward Program.

Revenue fell 5 percent to $483.2 million from $511.2 million. Analysts had expected $500.2 million.