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TheStreet Open House

NetSpend Holdings, Inc. Reports Fourth Quarter 2010 Results

AUSTIN, Texas, Feb. 24, 2011 (GLOBE NEWSWIRE) -- NetSpend Holdings, Inc. ("NetSpend") (Nasdaq:NTSP) today announced financial results for the quarter ended December 31, 2010.

Q4 2010 Highlights:

  • GPR card revenues up 22% and total revenues up 18% to $70.2 million in Q4 2010 as compared to $59.4 million in Q4 2009
  • GAAP net income up 80% to $6.3 million in Q4 2010 as compared to $3.5 million in Q4 2009
  • Fully Diluted Earnings Per Share up 75% in Q4 2010 to $0.07 as compared to Q4 2009 earnings per share of $0.04
  • Adjusted EBITDA 1 up 38% in Q4 2010 to $15.7 million as compared to $11.4 in Q4 2009
  • Adjusted Net Income 1 Per Share up 100% in Q4 2010 of $0.10 as compared to $0.05 in Q4 2009

Key Business Metrics for the Quarter Ended December 31, 2010:

  • Number of active cards of 2.1 million as of December 31, 2010 as compared to 1.9 million active cards as of December 31, 2009
  • Percentage of active cards with direct deposit of 34.2% as of December 31, 2010 as compared to 27.6% as of December 31, 2009
  • Gross Dollar Volume (GDV) of $2.5 billion during Q4 2010 as compared to $2.0 billion during Q4 2009

"2010 was just a great year for NetSpend and we could not be more pleased to announce fourth quarter results that continue to demonstrate performance," said Dan Henry, chief executive officer of NetSpend. "We also could not be more excited to announce our strategic alliances with First Acceptance Corporation and The General Automotive Services, Inc., two of the leading auto insurers of the underbanked. These agreements further solidify the position NetSpend has established in the non-standard auto insurance vertical."

Fiscal Fourth Quarter 2010 Results

GPR card revenues, which exclude gift card revenues, increased 22% compared to the same quarter of 2009. Total revenues were $70.2 million for the quarter ended December 31, 2010, an increase of approximately 18% over the $59.4 million of revenues recorded in the same quarter of 2009. This increase was due primarily to the increase in the average number of active cards of approximately 12%, offset in part by the decline in gift card related revenue due to NetSpend's decision in 2008 to cease marketing gift cards. Gift card revenue declined approximately $1.8 million to $0.8 million in the fourth quarter of 2010.

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