NetSpend Holdings, Inc. Reports Third Quarter Financial Results
Net income was $4.4 million for the quarter ended September 30, 2012, compared to net income of $8.3 million for the quarter ended September 30, 2011. NetSpend’s net income for the quarter ended September 30, 2012 includes an aggregate of $16.9 million of net interest expense, income tax expense, depreciation and amortization and other losses, which includes pre-tax litigation related losses of $10.3 million. Net income for the quarter ended September 30, 2012 also includes approximately $2.8 million in stock-based compensation expense. For the quarter ended September 30, 2011, the comparable amount of net interest expense, income tax expense and depreciation and amortization and other losses was $10.1 million. Net income for the quarter ended September 30, 2011 also includes approximately $2.9 million in stock-based compensation expense.
NetSpend reported that it now expects full year 2012 revenue to be between $348 and $352 million, its adjusted EBITDA to fall between $95 and $97 million and its adjusted net income per diluted share to be between $0.56 and $0.58.
The foregoing expectations reflect the following assumptions:
- An effective tax rate of approximately 40%;
- Non-cash equity compensation of between approximately $10.5 and $11.5 million;
- Cash outlays for capital expenditures for the full year of between approximately $13 and $14 million;
- An effective cost of debt capital of approximately 3.5%; and
- Diluted shares outstanding for the full year of approximately 84 million.
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