Green Dot Corporation (NYSE: GDOT), a leading prepaid financial services company, today reported financial results for the second quarter ended June 30, 2012.
For the second quarter of 2012, Green Dot reported a 17% year-over-year increase in non-GAAP total operating revenues 1 to $139.3 million and non-GAAP diluted earnings per share 1 of $0.35. GAAP results for the second quarter were $136.7 million in revenues and $0.27 in diluted earnings per share.
“The core business performed well during the quarter, and our strategy to enter new distribution channels and develop new financial products for new segments of customers is beginning to take shape. Initiatives underway to vertically integrate the card issuing and transaction processing functions remain on track, and we reached a milestone on the product development front with the first beta release of our new mobile-centric checking account offering. Although our growth was strong over the first half of 2012 and some notable new business wins could potentially provide meaningful tailwinds over the longer-term, we are lowering our guidance for the remainder of the year given that we now see a greater level of uncertainty going forward in our business as the prepaid marketplace continues to evolve,” said Steve Streit, Green Dot's Chairman and Chief Executive Officer.
GAAP financial results for the second quarter of 2012 compared to the second quarter of 2011:
- Total operating revenues on a generally accepted accounting principles (GAAP) basis increased 19% to $136.7 million for the second quarter of 2012 from $115.0 million for the second quarter of 2011
- GAAP net income was $11.9 million for the second quarter of 2012 and versus $12.1 million for the second quarter of 2011
- GAAP basic and diluted earnings per common share were $0.28 and $0.27, respectively, for the second quarter of 2012 versus $0.29 and $0.27, respectively, for the second quarter of 2011
- Non-GAAP total operating revenues 1 increased 17% to $139.3 million for the second quarter of 2012 from $119.4 million for the second quarter of 2011
- Non-GAAP net income 1 was $15.3 million for the second quarter of 2012 versus $16.3 million for the second quarter of 2011
- Non-GAAP diluted earnings per share 1 was $0.35 for the second quarter of 2012 versus $0.37 for the second quarter of 2011
- EBITDA plus employee stock-based compensation expense and stock-based retailer incentive compensation expense (adjusted EBITDA 1) was $28.7 million for the second quarter of 2012 versus $29.1 million for the second quarter of 2011
- Number of general purpose reloadable (GPR) debit cards activated was 1.98 million for the second quarter of 2012, an increase of 0.16 million, or 9%, over the second quarter of 2011. Excluding the discontinued TurboTax program in both periods, the increase was 18% over the second quarter of 2011
- Number of cash transfers was 10.14 million for the second quarter of 2012, an increase of 1.86 million, or 22%, over the second quarter of 2011
- Number of active cards at quarter end was 4.44 million, an increase of 0.34 million, or 8%, over the second quarter of 2011. Excluding the discontinued TurboTax program in both periods, the increase was 16% over the second quarter of 2011
- Gross dollar volume (GDV) was $4.0 billion for the second quarter of 2012, an increase of $0.3 billion, or 10%, over the second quarter of 2011. Excluding the discontinued TurboTax program in both periods, the increase was 24% over the second quarter of 2011
- Purchase volume was $2.9 billion for the second quarter of 2012, an increase of $0.4 billion, or 16%, over the second quarter of 2011
|Q2 2012||Q1 2012||Q4 2011||Q3 2011||Q2 2011||Q1 2011|
|Number of GPR cards activated||1.98||2.23||1.98||1.96||1.82||2.21|
|Number of cash transfers||10.14||10.09||9.14||8.87||8.28||7.98|
|Number of active cards at quarter end||4.44||4.69||4.20||4.15||4.10||4.28|
|Gross dollar volume||$||3,980||$||4,823||$||3,771||$||4,109||$||3,632||$||4,609|
- Green Dot has entered into a long term, exclusive partnership with a leading provider of financial services for the higher education channel. The partnership calls for Green Dot Bank to serve as issuer and Green Dot Corporation to serve as program manager to provide accounts to students for refund disbursements and for their general banking needs.
- Green Dot has entered into a multi-year agreement with UniRush LLC for Green Dot Bank to be the exclusive issuer of the retail version of the Visa Prepaid RushCard and for Green Dot Corporation to co-manage the portfolio with UniRush. The RushCard will be a key component of Green Dot's new, segmented retail merchandising solution that the Company is calling “Category of the Stars”, which also features leading brands synonymous with mass market purchasers, older Americans, and sports enthusiasts.
- Green Dot has initiated the first phase of beta testing for its new mobile-centric checking account product. Assuming all goes well, current plans call for a broader beta rollout to occur before the end of the year, followed by increasingly broad rollouts in subsequent months. Green Dot believes this new checking account product has the potential to be a meaningful contributor to its business over time because the market for disgruntled checking account users looking for an alternative would seem to be robust and because the Company believes that the usage and retention behavior on these accounts would be more akin to a checking account model than a prepaid card model.
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