Blackhawk Network Q4 Profit Declines, Revenues Miss View - Quick Facts

(RTTNews) - Blackhawk Network Holdings Inc. (HAWK, HAWKB) reported fourth-quarter net income of $42.72 million or $0.77 per share, down from $49.27 million or $0.92 per share last year.

The decline in net income was driven primarily by Cardpool's non-cash contingent consideration credit from the year-ago period that did not repeat in the latest quarter, amortization of intangibles and interest expense related to the late 2013 acquisitions of InteliSpend as well as Retailo, and the acquisition of Parago in October 2014.

Adjusted earnings for the latest quarter were $1.16 per share, compared to $0.83 per share in the year-ago period. Excluding the impact of the reduction in cash taxes payable, adjusted earnings per share increased 15 percent to $0.93.

On average, 12 analysts polled by Thomson Reuters estimated earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total operating revenues for the quarter rose 26 percent to $658.88 million from $521.18 million last year. Analysts estimated revenues of $665.05 million for the quarter.

The increase in revenues was due to a 20 percent increase in commissions and fees driven primarily by higher closed loop gift card sales, a 59 percent increase in program, interchange, marketing and other fees due to strong open loop gift card sales in the U.S. and the acquisition of InteliSpend in October 2013, and a 44 percent increase in product sales primarily due to growth at Cardpool.

The company said it will provide additional details on its 2014 financial results during a conference call scheduled for 8 a.m. Eastern Time on February 26, 2015. The company will provide a 2015 financial outlook during its investor conference webcast that follows the earnings call.