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Earnings Disclosure

Q1 2013 Vantiv Inc. Earnings Conference Call

Monday, May 6, 2013 5:00 p.m. ET  

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Vantiv Reports First Quarter 2013 Results

Vantiv Reports First Quarter 2013 Results

Net Revenue Grew 17% to $272.9 Million as Transactions Increased 18% to 4.0 Billion
Adjusted EBITDA Margin Expanded Approximately 160 Basis Points
Pro Forma Adjusted Net Income Increased 59% to $67.4 Million
Pro Forma Adjusted Net Income per Share Increased 55% to $0.31
  

CINCINNATI, May 6, 2013 - Vantiv, Inc. (NYSE: VNTV) ("Vantiv" or "the Company") today announced financial results for the first quarter ended March 31, 2013.  Revenue increased 15% to $498.0 million in the first quarter as compared to $432.8 million in the prior year period.  Net revenue increased 17% to $272.9 million in the first quarter as compared to $232.6 million in the prior year period.  Transaction growth was 18% for the first quarter, which was primarily due to transaction growth in the Merchant Services segment of 23%.  On a GAAP basis, net income attributable to Vantiv, Inc. was $26.1 million or $0.18 per diluted share during the first quarter, compared with a loss of ($18.4) million, or ($0.38) per diluted share, in the prior year period.  Pro forma adjusted net income increased 59% in the first quarter to $67.4 million as compared to $42.4 million in the prior year period. Pro forma adjusted net income per share increased 55% to $0.31 for the first quarter as compared to $0.20 in the prior year period.  (See Schedule 2 for pro forma adjusted net income and Schedule 6 for GAAP net income reconciliation to pro forma adjusted net income.)  

Vantiv's scale and efficiency continued to support superior profitability as shown by the Company's first quarter adjusted EBITDA margin of 45.9%, which reflected approximately 160 basis points in margin expansion over the prior year period.  (See Schedule 7 for reconciliation from GAAP net income to adjusted EBITDA.)

"I am pleased to report another strong quarter that demonstrates our continued focus on execution and ability to win market share," said Charles Drucker, president and chief executive officer at Vantiv. "Our strong financial performance is a testament to our dedicated employees, our commitment to execution, and our focus on our clients.  Looking forward, we will continue to generate above market growth by broadening distribution within our traditional business as well as expanding through technology into high-growth segments and verticals, like ecommerce and PayFac(TM)."

Merchant Services
Net revenue increased 22% to $191.6 million in the first quarter as compared to $157.5 million in the prior year period, primarily due to a 23% increase in transactions, including the recent acquisition of Litle & Co. ("Litle").  Litle continued to generate superior growth during the first quarter with a 39% increase in sales volume year-over-year, due primarily to strong new sales and organic growth.  Consistent with the prior three quarters, net revenue per transaction declined as compared to the prior year period due principally to the addition of a large national processing contract in the second quarter of 2012.  Excluding the impact of this contract, net revenue per transaction increased year-over-year, due primarily to beneficial changes in the Company's customer mix and increased ecommerce net revenue. Sales and marketing expenses increased to $70.2 million in the first quarter from $66.7 million in the prior period.

Financial Institution Services
Net revenue increased 8% to $81.3 million in the first quarter as compared to $75.1 million in the prior year period.  Sales and marketing expenses fell by 4% in the first quarter to $5.8 million from $6.1 million in the prior year period.

Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss first quarter 2013 financial results and an update to its prior guidance for the remainder of 2013 today at 5:00 PM ET. Hosting the call will be Charles Drucker, president and chief executive officer and Mark Heimbouch, chief financial officer. The conference call can be accessed live over the phone by dialing (888) 218-8170, or for international callers (913) 312-9321, and referencing conference code 8007675.  A replay will be available approximately two hours after the call concludes and can be accessed by dialing (888) 203-1112, or for international callers (719) 457-0820, and entering replay pass code 8007675.  The replay will be available through Monday, May 20, 2013.  The call will be webcast live from the Company's investor relations website at http://investors.vantiv.com.

**** EARNINGS SCHEDULES ATTACHED / ACCESSIBLE AT THE LINK AT THE END OF THIS RELEASE / EMAIL

Contacts
Investors
Nathan Rozof, CFA
Senior Vice President, Investor Relations
(866) 254-4811
(513) 900-4811
IR@vantiv.com

Media
Andrew Ciafardini
Director of Public Relations
(513) 900-5308
Andrew.Ciafardini@vantiv.com

About Vantiv, Inc.
Vantiv, Inc. (NYSE: VNTV) is a leading, integrated payment processor differentiated by a single, proprietary technology platform. Vantiv offers a comprehensive suite of traditional and innovative payment processing and technology solutions to merchants and financial institutions of all sizes in the U.S., enabling them to address their payment processing needs through a single provider. We build strong relationships with our customers, helping them become more efficient, more secure and more successful. Vantiv is the third largest merchant acquirer and the largest PIN debit acquirer based on number of transactions in the U.S. The company's growth strategy includes expanding further into high growth payment segments, such as ecommerce, payment facilitation (PayFac(TM)), mobile, prepaid and information solutions, and attractive industry verticals, such as petroleum, business-to-business, government, healthcare, gaming and education. For more information, visit www.vantiv.com.

Non-GAAP and Pro Forma Financial Measures
This earnings release presents non-GAAP and pro forma financial information including net revenue, adjusted EBITDA, pro forma adjusted net income, and pro forma adjusted net income per share information.  These are important financial performance measures for the Company, but are not financial measures as defined by GAAP.  The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.  The Company uses these non-GAAP and pro forma financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.  Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules.

Net revenue is revenue, less network fees and other costs. Pro forma adjusted net income includes adjustments to exclude amortization of intangible assets acquired in business combinations and customer portfolio and related asset acquisitions, share-based compensation, transition costs associated with our separation from Fifth Third Bank, integration costs incurred in connection with acquisitions, cash tax adjustments, and conversion of non-controlling interests into shares of Class A common stock. (See Schedule 6 for a reconciliation from GAAP net income to pro forma adjusted net income.)

Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements including any statements regarding guidance and statements of a general economic or industry specific nature. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements contained in this release are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual future performance or results and cause them to differ materially from those anticipated in the forward-looking statements. Certain of these factors and other risk factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission and include, but are not limited to: (i) the ability to keep pace with rapid developments and change in our industry and provide new services to our clients; (ii) competition within our industry; (iii) disclosure of unauthorized data and security breaches that expose us to liability, litigation and reputational damage; (iv) failures of our systems or systems of our third party providers; (v) our inability to expand our market share in existing markets or expand into new markets; (vi) our ability to identify acquisition, joint venture and partnership candidates and finance or integrate businesses, services or technologies that we acquire; (vii) failure to comply with applicable requirements of Visa, MasterCard or other payment networks; (viii) changes in payment network rules or standards; (ix) our ability to pass fee increases along to merchants; (x) termination of sponsorship or clearing services provided to us; (xi) increased attrition of our merchants, independent sales organizations, or ISOs, or referral partners; (xii) inability to successfully renew or renegotiate agreements with our clients or ISOs; (xiii) reductions in overall consumer, business and government spending; (xiv) fraud by merchants or others; (xv) a decline in the use of credit, debit or prepaid cards; (xvi) consolidation in the banking and retail industries; and (xvii) the effects of governmental regulation, changes in laws and outcomes of future litigation or investigations.  Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements.

Any forward-looking statement made by us in this release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

**** EARNINGS SCHEDULES ATTACHED / ACCESSIBLE AT THE LINK AT THE END OF THIS EMAIL

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