Green Dot Corporation (NYSE: GDOT), today reported financial results for the second quarter ended June 30, 2013.
For the second quarter of 2013, Green Dot reported a 4% year-over-year increase in non-GAAP total operating revenues 1 to $142.6 million and non-GAAP diluted earnings per share 1 of $0.33. GAAP results for the second quarter were $140.6 million in total operating revenues and $0.25 in diluted earnings per share.
Net cash provided by operating activities in the quarter more than doubled year-over-year to $62.6 million.
“We are pleased to deliver growth in revenues, adjusted EBITDA, and non-GAAP EPS in Q2. Additionally, we generated more than $60 million in operating cash flows. These solid financial results for this quarter combined with substantial distribution wins, the successful launch of our GoBank Mobile Bank Account product and our entry into new greenfield customer channels, like college campuses and check cashing stores, provides evidence that Green Dot Corporation has successfully navigated through the past year of uncertainty. Despite aggressive competition from large financial services companies and rigid self-imposed risk controls that materially reduced new customer enrollment, we believe Green Dot remains the clear leader in the prepaid space and is well positioned for the future," said Steve Streit, Green Dot's Chairman and Chief Executive Officer.GAAP financial results for the second quarter of 2013 compared to the second quarter of 2012:
- Total operating revenues on a generally accepted accounting principles (GAAP) basis increased 4% to $140.6 million for the second quarter of 2013 from $135.0 million for the second quarter of 2012
- GAAP net income increased 4% to $11.3 million for the second quarter of 2013 from $10.9 million for the second quarter of 2012
- GAAP basic and diluted earnings per common share were $0.26 and $0.25, respectively, for the second quarter of 2013 versus $0.26 and $0.25, respectively, for the second quarter of 2012
- Non-GAAP total operating revenues 1 increased 4% to $142.6 million for the second quarter of 2013 from $137.6 million for the second quarter of 2012
- Non-GAAP net income 1 increased 4% to $14.8 million for the second quarter of 2013 from $14.3 million for the second quarter of 2012
- Non-GAAP diluted earnings per share 1 was $0.33 for the second quarter of 2013 versus $0.32 for the second quarter of 2012
- EBITDA plus employee stock-based compensation expense and stock-based retailer incentive compensation expense (adjusted EBITDA 1) increased 10% to $29.6 million for the second quarter of 2013 from $27.0 million for the second quarter of 2012
- Number of cash transfers was 11.32 million for the second quarter of 2013, an increase of 1.18 million, or 12%, versus the second quarter of 2012
- Number of active cards at quarter end was 4.39 million, a decrease of 0.05 million, or 1%, versus the second quarter of 2012
- Gross dollar volume (GDV) was $4.4 billion for the second quarter of 2013, an increase of $445 million, or 11%, versus the second quarter of 2012
- Purchase volume was $3.2 billion for the second quarter of 2013, an increase of $305 million, or 10%, versus the second quarter of 2012
|Number of cash transfers||11.32||11.25||11.04||10.52||10.14||10.09|
|Number of active cards at quarter end||4.39||4.49||4.37||4.42||4.44||4.69|
|Gross dollar volume||$||4,425||$||5,072||$||4,279||$||4,070||$||3,980||$||4,823|
- Green Dot products are currently being rolled out to approximately 20,000 new retail locations. These new distribution outlets include The Home Depot, Kroger Convenience Stores, Save-a-Lot retail stores, Dollar General and the previously announced Dollar Tree.
- Green Dot and Green Dot Bank have launched a new initiative called Project Outreach whereby the company has made it a strategic priority to become a leading provider of prepaid cards and other types of bank accounts through the nation's best and largest Community Based Financial Service Centers (also known as check cashers). Green Dot has already signed distribution agreements with three of the largest and best known check cashing operations throughout the five boroughs of the greater New York City metro area, which ranks as the #1 check cashing market in the U.S.
- In June 2013, Green Dot announced the proposed transfer of the Walmart MoneyCard portfolio from GE Consumer Retail Bank to Green Dot Bank, which is subject to regulatory approval. Green Dot believes having Green Dot Bank become the bank issuer and insured depository for the MoneyCard program will mitigate a key business and regulatory risk of relying on a third party non-affiliated bank to provide these foundational services for the program while also creating certain financial efficiencies post transfer, if approved.
- GoBank was released to the general public over the July 4th holiday to strong reviews from various media outlets. The distribution/promotional pipeline for GoBank has expanded to now include 7-Eleven, Barnes and Noble college book stores, the UCLA main campus hub bookstore, and US Cellular, a large regional mobile carrier.