/industry_news en info@loyalty360.org Copyright 2010 2010-03-12T17:16:24+00:00 http://www.loyalty360.org/association_news/article/motorola_and_five_leading_emergency_communications_equipment_manufacturers_ http://www.loyalty360.org/association_news/article/motorola_and_five_leading_emergency_communications_equipment_manufacturers_#When:14:51:51Z The Enterprise Mobility Solutions business of Motorola, Inc. (NYSE: MOT) today announced the successful completion of Project 25 (P25) interoperability testing using Project 25 Inter-RF Subsystem Interface (P25 ISSI) gateways to communicate between a Motorola ASTRO® 25 system and P25 systems from five other leading mission critical communications manufacturers, including PlantCML-EADS, Etherstack, Harris Corporation, PowerTrunk and Raytheon Company. These six industry leaders demonstrated another new milestone in interoperability with the successful testing of interoperable communications between the Motorola ISSI.1 Network Gateway and ISSI Gateways from the five other manufacturers.Test conducted on Motorola ASTRO(R) 25 System with an ISSI.1 Network Gateway connected to other manufacturers' P25 systems SCHAUMBURG, Ill., March 10 -- The Enterprise Mobility Solutions business of Motorola, Inc. (NYSE: MOT) today announced the successful completion of Project 25 (P25) interoperability testing using Project 25 Inter-RF Subsystem Interface (P25 ISSI) gateways to communicate between a Motorola ASTRO® 25 system and P25 systems from five other leading mission critical communications manufacturers, including PlantCML-EADS, Etherstack, Harris Corporation, PowerTrunk and Raytheon Company. These six industry leaders demonstrated another new milestone in interoperability with the successful testing of interoperable communications between the Motorola ISSI.1 Network Gateway and ISSI Gateways from the five other manufacturers. The testing occurred over the past several weeks using a Motorola ASTRO 25 system connected over an ISSI interface to Project 25 systems from each of the other five leading manufacturers of public safety equipment. Each system was tested separately and successful P25 ISSI wireline interoperability was achieved using each manufacturer's P25 ISSI gateway. "This latest testing is another example of P25 manufacturers continuing to work together to advance interoperability for public safety, enabling first responders to communicate in emergency situations," said Bob Schassler, senior vice president, Motorola Worldwide Radio Solutions. "Motorola supports the Project 25 standard and we are dedicated to enhancing interoperability through the ISSI interface in the public safety environment. This testing highlights our commitment to working with other P25 manufacturers to provide our customers with the confidence that the ISSI standard will allow multiple P25 systems to interoperate to support emergency communications for all public safety agencies." The interoperability testing using ISSI gateways marks the fifth major multi-manufacturer P25 interoperability event in the past nine months. The previous four events hosted by various manufacturers tested the P25 Phase 1 CAI to the formal U.S. Department of Homeland Security P25 Compliance Assessment Program (CAP). "The latest tests demonstrated that the ISSI.1 Network Gateway is an easy and cost-effective way to connect P25 systems and implement end-to-end digital interconnectivity to meet the needs of P25 system users who need to interoperate," Schassler added. "Motorola will continue to work with P25 manufacturers and the user community in 2010 and beyond to advance interoperability for first responders." About MotorolaMotorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to high-definition video and mobile devices, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $22 billion in 2009. For more information, please visit http://www.motorola.com. Media Contact:Steve GoreckiMotorola, Inc.+ 1 847-538-0368steve.gorecki@motorola.com Association News 2010-03-11T14:51:51+00:00 http://www.loyalty360.org/association_news/article/lights_camera_action_vesdia_goes_to_the_movies http://www.loyalty360.org/association_news/article/lights_camera_action_vesdia_goes_to_the_movies#When:14:47:40Z Vesdia Corporation, the single largest provider of multi-channel merchant networks and shopping incentive services, announced today that AMC Theatres® (AMC) is the company’s exclusive movie exhibition partner. Now avid movie fans can see award-winning films, current features and IMAX® movies and earn additional rewards using Vesdia-operated credit or debit cards associated with programs such as Hawaiian Airlines, SunTrust, Citizens Bank and more. Cardholders who love the large soda, bucket of popcorn and candy can earn up to triple the rewards in their desired reward currency, such as airline miles, cash back or points for all AMC box office or concessions purchases and for AMC gift cards purchases at www.AMCEntertainment.com. AMC Theatres® Partners with Vesdia to Offer Movie Fans Greater Rewards for Tickets and Concessions ATLANTA -- Vesdia Corporation, the single largest provider of multi-channel merchant networks and shopping incentive services, announced today that AMC Theatres® (AMC) is the company’s exclusive movie exhibition partner. Now avid movie fans can see award-winning films, current features and IMAX® movies and earn additional rewards using Vesdia-operated credit or debit cards associated with programs such as Hawaiian Airlines, SunTrust, Citizens Bank and more. Cardholders who love the large soda, bucket of popcorn and candy can earn up to triple the rewards in their desired reward currency, such as airline miles, cash back or points for all AMC box office or concessions purchases and for AMC gift cards purchases at www.AMCEntertainment.com. "Vesdia has earned a reputation for running effective partnership marketing programs that deliver strong results for merchants. A partnership with Vesdia is about driving incremental revenue, continual marketing exposure and increased loyalty for each merchant partner and we are committed to doing just that for AMC Theatres," said Peter Davis, president of Vesdia. “The cardholders are the true winners here, with access to an extremely valuable earning opportunity through this one-of-a-kind partnership with AMC. We will continue to add category-leading multi-channel merchants to our rewards network.” Vesdia partnership marketing programs offer merchants the ability to reach valuable consumers in targeted loyalty programs through a pay-for-performance model that delivers measurable results versus traditional advertising activities. Merchants who join Vesdia’s network can extend pay-for-performance marketing from an online presence to their brick-and-mortar and/or catalog sales channels. “We are confident this partnership will drive Vesdia’s 60 million cardholders to choose AMC Theatres over other options when they want to see a movie. These consumers are predisposed to be loyal, and we are able to provide them a rich reward in their preferred reward currency, elevating the program’s impact, our incremental revenue and, most importantly, goodwill for the AMC brand,” said Scott Wall, vice president of national sales, AMC Theatres. “We are confident this strategic partnership will yield significant, measurable results, increasing consumer spend at our box offices and concessions.” About Vesdia Vesdia Corporation is the single largest provider of partnership marketing and multi-channel merchant network services. Through its leading merchant-funded rewards programs and patent-protected technology, Vesdia offers a full array of loyalty solutions to financial institutions, affinity groups and merchants enabling customers to earn more meaningful rewards faster. For more information, visit www.vesdia.com. About AMC Entertainment Inc. Headquartered in Kansas City, Mo., AMC Entertainment Inc. is a leading theatrical exhibition and entertainment company. With a history of industry leadership and innovation dating back to 1920, the company today serves hundreds of millions of guests annually through interests in 299 theatres with 4,528 screens in five countries. www.AMCEntertainment.com. Contact: Trevelino/Keller Communication GroupCarrie Crabill, 404-214-0722 x102ccrabill@trevelinokeller.com Association News, Loyalty Today 2010-03-11T14:47:40+00:00 http://www.loyalty360.org/association_news/article/visa_extends_fifa-themed_marketing_campaign_to_global_audience http://www.loyalty360.org/association_news/article/visa_extends_fifa-themed_marketing_campaign_to_global_audience#When:15:21:02Z Visa Inc., a FIFA partner and the preferred card of the 2010 FIFA World Cup™, today announced an extension of its first-ever global FIFA-themed marketing campaign – Go Fans. The global campaign, which originally debuted in Latin America in 2009, includes television, print and out-of-home advertisements, usage promotions, experiential offers for cardholders and merchant discounts. Go Fans was developed to connect with football fans worldwide to drive preference for and usage of Visa products, promote Visa’s association with the 2010 FIFA World Cup South Africa™ and reinforce the ways in which Visa enhances the fan’s FIFA World Cup™ experience. Today, 78 markets throughout the world are activating Visa FIFA-themed marketing programs with over 200 clients. Utilizing the flexibility of the More people go with Visa campaign, advertising creative from the Go Fans campaign will be customized and will appear in 30 markets around the world to strengthen the campaign’s relevance in those regions. In addition to Go Fans, customized advertising extensions of the campaign will utilize Go Football and Go [Country] (e.g. Go Brazil) taglines. Visa Inc., a FIFA partner and the preferred card of the 2010 FIFA World Cup™, today announced an extension of its first-ever global FIFA-themed marketing campaign – Go Fans. The global campaign, which originally debuted in Latin America in 2009, includes television, print and out-of-home advertisements, usage promotions, experiential offers for cardholders and merchant discounts. Go Fans was developed to connect with football fans worldwide to drive preference for and usage of Visa products, promote Visa’s association with the 2010 FIFA World Cup South Africa™ and reinforce the ways in which Visa enhances the fan’s FIFA World Cup™ experience. Today, 78 markets throughout the world are activating Visa FIFA-themed marketing programs with over 200 clients. Utilizing the flexibility of the More people go with Visa campaign, advertising creative from the Go Fans campaign will be customized and will appear in 30 markets around the world to strengthen the campaign’s relevance in those regions. In addition to Go Fans, customized advertising extensions of the campaign will utilize Go Football and Go [Country] (e.g. Go Brazil) taglines. SAN FRANCISCO -- Visa Inc., a FIFA partner and the preferred card of the 2010 FIFA World Cup™, today announced an extension of its first-ever global FIFA-themed marketing campaign – Go Fans. The global campaign, which originally debuted in Latin America in 2009, includes television, print and out-of-home advertisements, usage promotions, experiential offers for cardholders and merchant discounts. Go Fans was developed to connect with football fans worldwide to drive preference for and usage of Visa products, promote Visa’s association with the 2010 FIFA World Cup South Africa™ and reinforce the ways in which Visa enhances the fan’s FIFA World Cup™ experience. Today, 78 markets throughout the world are activating Visa FIFA-themed marketing programs with over 200 clients. Utilizing the flexibility of the More people go with Visa campaign, advertising creative from the Go Fans campaign will be customized and will appear in 30 markets around the world to strengthen the campaign’s relevance in those regions. In addition to Go Fans, customized advertising extensions of the campaign will utilize Go Football and Go [Country] (e.g. Go Brazil) taglines. “Football fans are unlike any other sports fans in the world. We’ve created a campaign that captures these fans’ inspirational passion for the game, taps into their nationalistic pride and reminds them how Visa can help enhance their experience,“ said Antonio Lucio, Chief Marketing Officer of Visa Inc. “Building off Visa’s legacy of creating integrated marketing campaigns in support of global sporting events, our platform enables us to reinforce the ways that Visa enhances the fan’s World Cup experience while also advancing our own business and that of our clients.” The Go Fans campaign celebrates the common love that all fans have for football and creative executions featuring the colors of the national flags of each of the 32 qualifying countries, symbolize the expression of each fan’s true colors and love of country. The campaign reinforces the ways that Visa enables fans to express their true colors in support of their teams by offering an easier way to pay, their Visa card. Television Advertising & Customization Localized versions of Visa’s “Anthem” commercial, which debuted the week of March 1 in Hong Kong, Japan, South Korea and Taiwan, shows footage of fans throughout the world expressing an array of emotions while viewing football matches. The creative execution is overlaid with the colors of individual national flags and follows the natural progression of anticipation, tension, joy and heartache displayed by football fans during a match. The spot illustrates how fans are divided by their passion for their favorite teams but united in a shared love of football. The soundtrack to “Anthem” is an original composition written by South African natives Nonkululeko and Philisiwe Moya entitled “Stand as One, Unite,” and is performed by the Agape Children’s Choir. First documented in the critically acclaimed film “We Are Together,” the Agape Children’s Choir is made up of children from the Agape Orphanage in Durban, South Africa who find hope in song. In February, Visa made a donation of $150,000 USD to benefit the Agape Children’s Choir and assist with the children’s school fees, education costs and the orphanage’s administrative costs. “Anthem” was directed by Jake Scott, the son of Ridley Scott, whose previous work includes the iconic music video “Fake Plastic Trees” for Radiohead, as well as two full-length feature films including the forthcoming “Welcome to the Rileys,” starring Kristen Stewart and James Gandolfini. Cardholder Experiences & Usage Promotions A core component of Visa’s FIFA sponsorship is developing cardholder programs internationally to enhance the fan’s football experience through once-in-a-lifetime experiences and usage promotions. For the 2010 FIFA World Cup South Africa™, Visa has created the “Go 2010 Football Experience” to provide fans with unique access and once-in-a-lifetime experiences which include a pre-match Stadium Tour, viewing the team warm-up by the pitch, and a half-time pitch-side tour. More than 500 “Go 2010 Football Experiences” have been offered to Visa cardholders worldwide. Visa has also introduced customizable usage promotions in core markets that provide Visa cardholders with the chance to win tickets to the 2010 FIFA World Cup South Africa™ every time they use their Visa cards. FIFA World Cup Sponsorship Activation In the lead up to the FIFA World Cup, Visa provides financial institutions and merchant partners throughout the world with FIFA-themed creative and marketing materials to enhance their card-marketing efforts, help drive business and achieve corporate brand objectives. Visa is one of six global FIFA partners with exclusive global category rights through 2014, and is the preferred card for the 2010 FIFA World Cup™. In recognition of Visa’s sponsorship of the 2010 FIFA World Cup South Africa™, Visa credit, debit and prepaid cards are the only payment cards accepted, along with cash, at all FIFA stadiums and the Onsite Stadium Merchandise Booths. The partnership provides Visa with global rights in the Financial Services product category to all FIFA World Cup™ activities that may be activated by financial institution clients and merchant partners. Visa’s FIFA sponsorship includes the rights to the 2010 FIFA World Cup South Africa™, the FIFA Women’s World Cup Germany 2011™ and the 2014 FIFA World Cup Brazil™. Visa cardholders are reminded to contact their issuing banks before leaving for South Africa to alert them of their travel plans and purchases in another country. This will ensure their banks will not temporarily freeze their accounts as an anti-fraud measure. Cardholders should also ask about daily withdrawal limits, ATM fees and emergency phone numbers. Travelers to the 2010 FIFA World Cup South Africa™ who do not have a Visa card should contact their banks or go to www.visa.com/globalgateway for additional information on how to obtain a Visa card in their country. Editors Note To view and download Go Fans creative, Visa FIFA-themed images and assets, visit www.thenewsmarket.com/visa or www.visa.com/fifamediakit. About Visa Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com Forward-Looking Statements This press release contains forward-looking statements. These statements may be identified by the use of words such as "will," "believes," "anticipates," "intends," "estimates," "expects," "projects," "plans" or similar expressions. Such forward-looking statements include, without limitation, statements about future operations, prospects, plans and objectives of management and events or developments that we expect or anticipate will occur. The forward-looking statements reflect Visa's current views and assumptions and are subject to risks and uncertainties, which may cause actual and future results and trends to differ materially from the forward-looking statements, including but not limited to Visa's ability to achieve its strategic objectives; general market conditions; uncertainties inherent in operating internationally; and the impact of law and regulations. Many of these factors are beyond Visa's ability to control or predict. Given these factors, you should not place undue reliance on the forward-looking statements. Visa Inc.Nancy Panter, 650-432-1454Mobile: 415-244-9857npanter@visa.comorFleishman-HillardDianna Mangiantini, 415-318-4182dianna.mangiantini@fleishman.com Visa Inc.Nancy Panter, 650-432-1454Mobile: 415-244-9857npanter@visa.comorFleishman-HillardDianna Mangiantini, 415-318-4182dianna.mangiantini@fleishman.com Association News 2010-03-10T15:21:02+00:00 http://www.loyalty360.org/association_news/article/allegiance_inc._awarded_highest_crm_magazine_service_award_for_enterprise_f http://www.loyalty360.org/association_news/article/allegiance_inc._awarded_highest_crm_magazine_service_award_for_enterprise_f#When:15:09:36Z Allegiance, Inc., a leading provider of voice-of-the-customer (VOC) and feedback management solutions, today announced that it has received the 2010 Service Leader Award for Enterprise Feedback Management (EFM) by CRM Magazine , the industry’s leading publication. This marks the second year in a row that Allegiance has been chosen for the highest award, which is determined through an extensive three-month process and proprietary rating formula that involves industry analysts, financial and corporate information, product and functionality assessments, and scores reflecting customer satisfaction. Allegiance was recognized as leading the competition in its ability toAllegiance Wins Top Service Leader for EFM Second Year in a Row SALT LAKE CITY -- Allegiance, Inc., a leading provider of voice-of-the-customer (VOC) and feedback management solutions, today announced that it has received the 2010 Service Leader Award for Enterprise Feedback Management (EFM) by CRM Magazine, the industry’s leading publication. This marks the second year in a row that Allegiance has been chosen for the highest award, which is determined through an extensive three-month process and proprietary rating formula that involves industry analysts, financial and corporate information, product and functionality assessments, and scores reflecting customer satisfaction. Allegiance was recognized as leading the competition in its ability to perform surveys and collect feedback from multiple channels, including e-mail, Web, phone, print, Interactive Voice Response (IVR), and social media. In addition, with the acquisition of Inquisite’s online survey software, Allegiance raised its already high score in the category of depth of functionality from the prior year. Esteban Kolsky, principal and founder of customer service consultancy ThinkJar, stated: “Not only does Allegiance do survey management well, but it provides its users with benchmarks so they can see how they stack up to like-minded companies.” “Everyone at Allegiance is thrilled to again receive this honor. We are especially proud of the fact that Allegiance was recognized for working with customers to solve their greatest challenges and yield measurable results,” said Adam Edmunds, Allegiance CEO. “We will continue to look for ways to expand our services and improve our products to meet the demands of our growing customer base.” CRM magazine's sixth annual CRM Service Awards honor the vendors, consultants, and end-user companies focused on high-quality customer experiences through the sophisticated integration of people, processes, and technologies. With this year's awards, CRM has expanded its scope to a record eight categories. In each, the magazine named one Service Winner, denoting the highest score compared to its peers. The 2010 CRM Service Awards will be presented at the CRM Evolution 2010 Conference at the Marriott Marquis in New York later this year. An expanded version of the results have been published in the March 2010 issue of CRM magazine-available in print and in digital NXTBook format. The awards package was unveiled online on March 1, 2010, here. About Allegiance, Inc. Allegiance, Inc. offers next generation Voice of the Customer (VOC) and feedback management software to help organizations grow customer and employee loyalty and engagement. The Allegiance Engage Software platform facilitates survey creation and gathers responses and unsolicited comments in real-time into a centralized online system, saving time, effort and money. Allegiance solutions measure customer and employee engagement, revealing precise actions to grow engagement and increase revenue. Allegiance Enterprise Feedback Management (EFM), predictive analytics, and professional services combine to help businesses capitalize on engagement. In 2009, Allegiance was ranked 58th on the list of the 500 fastest growing, privately held companies in the U.S. by Inc. Magazine. For more information about Allegiance, visit http://www.allegiance.com. To register for the Allegiance Engage Summit 2010, visit http://engagesummit.com. About CRM magazine CRM magazine is the leading publication of the customer relationship management industry, covering sales, marketing, customer service, and strategy. The magazine also administers and hosts the annual CRM Evolution conference. Each of these properties is designed to serve customer-centric business initiatives, and leaders who recognize CRM as a key strategy for creating enhanced customer value in any industry. For more information about the magazine, its editorial calendar, or CRM in general, please visit us on the Web; at our blog, or on Twitter at @CRM and @destinationCRM. The destinationCRM Web site (which is updated daily) and the monthly magazine are properties of CRM Media, a division of Information Today, Inc. Media ContactsAllegiance, Inc.Chris Cottle801-617-8034chris.cottle@allegiance.comorChereskin CommunicationsValerie Chereskin760-942-3116valerie@chereskincomm.com Association News 2010-03-10T15:09:36+00:00 http://www.loyalty360.org/association_news/article/tsys_champions_prepaid_development_in_brazil_and_india http://www.loyalty360.org/association_news/article/tsys_champions_prepaid_development_in_brazil_and_india#When:15:02:50Z As patron and founder member of the Prepaid International Forum (PIF), TSYS today reported the increasing momentum of the PIF Brazil and India chapters following the successful engagement of members from both chapters via live video conference, marking the first formal exchange on prepaid best practices, legislation and business models between Brazil and India. Launched in April 2009, the PIF Brazil chapter brings together a diverse member base including payment schemes, issuers, law firms, consultants and distributors, whose key objective is to work together in order to actively develop the prepaid market. The PIF India chapter, launched in August 2009, also has a broad member base drawn from public sector, private sector and multinational banks in addition to global and national payment schemes.Exchange of Knowledge and Best Practices to Drive Prepaid Growth SAO PAULO & MUMBAI, India, Mar 03, 2010 -- As patron and founder member of the Prepaid International Forum (PIF), TSYS today reported the increasing momentum of the PIF Brazil and India chapters following the successful engagement of members from both chapters via live video conference, marking the first formal exchange on prepaid best practices, legislation and business models between Brazil and India.Launched in April 2009, the PIF Brazil chapter brings together a diverse member base including payment schemes, issuers, law firms, consultants and distributors, whose key objective is to work together in order to actively develop the prepaid market. The PIF India chapter, launched in August 2009, also has a broad member base drawn from public sector, private sector and multinational banks in addition to global and national payment schemes.During the 60-minute video conference, members of both chapters engaged in an interactive dialogue with questions and answers posed by both chapters. Brazil and India are rapidly developing markets with large populations(1) and both chapters agreed that prepaid has a major role to play in serving the unbanked and underbanked."It is anticipated that the mobile phone will play an important role in the Indian payment market. With just 150 million mobile subscribers in 2007, there was a jump to 250 million subscribers in 2008 and more than 500 million subscribers in 2009 with mobile adoption continuing to grow. The mobile phone system works well because around 95% of subscribers are prepaid and users are now experienced with the concept of prepaid," said Amit Sethi, managing director of India and South Asia, TSYS; vice chairman, PIF India.Participants also discussed the enormous potential for prepaid to facilitate "social inclusion" in both countries. Prepaid offers a secure, low cost medium for governments to distribute social benefits such as 'Bolsa Familia' in Brazil or public distribution of funds and essentials, and government benefits like pensions and disaster reliefs, scholarships and education subsidies in India. Under the patronage of TSYS, both PIF chapters are working to build customer awareness, drive the adoption of prepaid, identify the business case for prepaid and help understand how to create robust and profitable business models, developing strategies to mitigate risk and adverse publicity, and realizing the mobile and contactless opportunity."The exchange of knowledge and best practices between two relatively similar economies can be seen as the first step to driving prepaid market growth for the benefit of all stakeholders. Despite some differences, Brazil and India face very similar challenges and opportunities," said Antonio Jorge (AJ) de Castro Bueno, business development director for Brazil, TSYS; vice chairman, PIF Brazil.TSYS is a market leader in prepaid processing and has more than 10 years experience of providing prepaid processing solutions in a licensing and processing capacity. TSYS' global footprint extends to more than 300 clients across 75 countries and is supported by more than 7,600 team members.About PIFPrepaid International Forum (PIF) is a global not-for-profit trade association established to represent all parties participating on a commercial basis in the prepaid economy. It acts as principal point of liaison between the prepaid economy and government agencies, regulators, consumer bodies and the media.Since its establishment in June 2007, the Prepaid International Forum has grown rapidly and now has a global membership of over fifty issuers, vendors and programme managers involved in the prepaid industry. In late 2007, PIF established an Australia & New Zealand Chapter, reflecting a rapid growth and interest in prepaid payment facilities in the two countries. PIF Brazil launched in April 2009 and PIF India launched in August 2009.For more information, contact Diane Brocklebank, Head of Member Relations, Prepaid International Forum, +44 (0) 20 3008 8423 or log on http://www.prepaidforum.org.About TSYSTSYS (TSS 15.02, -0.02, -0.13%)  is one of the world's largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, debt management, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information contact news@tsys.com or log on to http://www.tsys.com. TSYS routinely posts all important information on its website.(1) Brazil 198 million, 1.16 bn India, CIA World Fact book Association News 2010-03-10T15:02:50+00:00 http://www.loyalty360.org/association_news/article/groupe_aeroplan_inc._reports_2009_year-end_and_fourth_quarter_results http://www.loyalty360.org/association_news/article/groupe_aeroplan_inc._reports_2009_year-end_and_fourth_quarter_results#When:14:41:17Z Global leader in loyalty management demonstrates resiliency during recessionary times Groupe Aeroplan Inc., today reported its 2009 year-end and fourth quarter results. 2009 Operating Highlights Consolidated gross billings in line with management's guidance Further enhancement of coalition programs in Canada and the UK: Added a number of new retail and travel partners to the Aeroplan program and expanded Sobeys partnership in British Columbia Launched multi-year partnership with Homebase, the UK's largest home improvement retailer and redemption offering with Expedia.co.uk, the UK's largest online travel agent Increased engagement with Sainsbury's through 'coupon at till' scheme and greater Nectar incentives Execution of international expansion plans including the acquisition of loyalty marketing services provider Carlson Marketing and the launch of Nectar Italia "Our 2009 results, which are in line with our guidance, highlighted the resiliency of our business model," said Rupert Duchesne, President and Chief Executive Officer. "During one of the toughest economic periods in recent history, Groupe Aeroplan had a remarkable performance. In addition to navigating through the recession, we continued to focus on strategic and operational execution and enhance our position for future growth. Over the last twelve months, we have successfully transformed the business to become a global leader in loyalty management with a substantially diversified revenue base and geographical reach into many G20 countries." "In 2010, we plan to invest in our core businesses, complete the strategic integration of Carlson Marketing and leverage our capabilities across the company," added Duchesne. "At the same time, we will continue to look at greenfield projects similar to Nectar Italia, the expansion of LMG Insight and Communication, small tuck-in acquisitions and minority investments in frequent flyer programs. These initiatives give us the opportunity to earn significant returns for our shareholders for a relatively small investment."MONTREAL, Mar 4, 2010 -- Global leader in loyalty management demonstrates resiliency during recessionary times Groupe Aeroplan Inc. (the "Corporation") (TSX: AER | Quote | Chart | News | PowerRating), today reported its 2009 year-end and fourth quarter results. 2009 Operating Highlights Consolidated gross billings in line with management's guidance Further enhancement of coalition programs in Canada and the UK: Added a number of new retail and travel partners to the Aeroplan program and expanded Sobeys partnership in British Columbia Launched multi-year partnership with Homebase, the UK's largest home improvement retailer and redemption offering with Expedia.co.uk, the UK's largest online travel agent Increased engagement with Sainsbury's through 'coupon at till' scheme and greater Nectar incentives Execution of international expansion plans including the acquisition of loyalty marketing services provider Carlson Marketing and the launch of Nectar Italia "Our 2009 results, which are in line with our guidance, highlighted the resiliency of our business model," said Rupert Duchesne, President and Chief Executive Officer. "During one of the toughest economic periods in recent history, Groupe Aeroplan had a remarkable performance. In addition to navigating through the recession, we continued to focus on strategic and operational execution and enhance our position for future growth. Over the last twelve months, we have successfully transformed the business to become a global leader in loyalty management with a substantially diversified revenue base and geographical reach into many G20 countries." "In 2010, we plan to invest in our core businesses, complete the strategic integration of Carlson Marketing and leverage our capabilities across the company," added Duchesne. "At the same time, we will continue to look at greenfield projects similar to Nectar Italia, the expansion of LMG Insight and Communication, small tuck-in acquisitions and minority investments in frequent flyer programs. These initiatives give us the opportunity to earn significant returns for our shareholders for a relatively small investment." "During 2009, despite the volatile credit markets, we were able to successfully renegotiate our bank facilities and access debt capital markets," said David Adams, Executive Vice President and Chief Financial Officer. "We continued our refinancing strategy in 2010 with the issuance of two additional instruments: Series 1 Preferred Shares and Series 3 Secured Notes. As a result, we have successfully laddered our debt maturities and significantly reduced refinancing risk, allowing us greater financial flexibility, reducing our exposure to rising interest rates and enabling us to focus on building on our existing leadership advantage in loyalty and fund the initiatives required to appropriately position us for future growth. In addition, we have a solid balance sheet, managed conservatively to deal with any unforeseen eventualities." 2009 Consolidated Financial Highlights Gross Billings of $1,363.0 million Revenue of $1,436.8 million Operating income of $163.8 million Net earnings of $89.3 million Cash flows from operations of $288.5 million Adjusted EBITDA of $281.6 million* Adjusted net earnings of $181.8 million* Free Cash Flow of $165.0 million* Financial Performance (compared to 2008 and fourth quarter of 2008) Gross BillingsConsolidated Gross Billings for 2009 amounted to $1,363.0 million, compared to $1,420.5 generated during 2008, representing a decrease of 4.1%. During the fourth quarter of 2009, Gross Billings amounted to $363.0 million, compared to $364.4 million for the corresponding quarter of 2008, for a decrease of 0.4%. RevenueRevenue for 2009 amounted to $1,436.8 million, compared to $1,458.2 million for 2008, for a reduction of 1.5%. Revenue for the fourth quarter of 2009 amounted to $424.9 million, compared to $430.3 million during the corresponding period of 2008, for a reduction of 1.3%. Operating IncomeOperating income for 2009, before amortization of accumulation partners' contracts and technology, amounted to $244.0 million, compared to $306.9 million for 2008, representing a decrease of 20.5%. During the fourth quarter of 2009, operating income before amortization of accumulation partners' contracts and technology, amounted to $65.2 million, compared to $105.2 million for the corresponding quarter of 2008, representing a decrease of 38.0%. Net EarningsNet earnings for 2009 amounted to $89.3 million, compared to a net loss for 2008 of $965.2 million, after the recognition during the fourth quarter of an impairment charge of $1,160.7 million. During the fourth quarter of 2009, net earnings amounted to $20.5 million, compared to a net loss of $1,073.8 million for the comparative period of 2008. Cash flows from operationsCash flows from operations generated during the 2009 year amounted to $288.5 million, compared to $323.1 million generated during the 2008 year, for a reduction of 10.7%. During the fourth quarter, cash flows from operations reached $107.5 million, compared to $65.4 million generated during the corresponding quarter of 2008, for an increase of 64.4%. LiquidityAt the end of 2009, the Corporation had $609.8 million of cash and cash equivalents, $4.2 million of restricted cash and $14.4 million of short-term investments, for a total of $628.4 million, including the Aeroplan Canada redemption reserve of $400.0 million. Adjusted EBITDA* and Free Cash Flow*Adjusted EBITDA for the year ended December 31, 2009, amounted to $281.6 million, which represents 20.7% of Gross Billings, compared to $319.2 million generated during the prior year or 22.5 % of Gross Billings.Adjusted EBITDA for the fourth quarter of 2009, amounted to $69.6 million, compared to $80.6 million for the fourth quarter of 2008, or 19.2% and 22.1% of Gross Billings, respectively.Free Cash Flow for the year amounted to $165.0 million, compared to $177.5 million for 2008, for a decrease of 7.0%. During the quarter Free Cash Flow generated amounted to $79.2 million, compared to $42.5 million for the fourth quarter of 2008. * See Non-GAAP measures below. Outlook for 2010 For 2010, excluding the effect of currency fluctuations, Groupe Aeroplan anticipates modest organic growth in Gross Billings in its legacy businesses, and with the acquisition of Carlson Marketing, in consolidated Adjusted EBITDA as well. However, Free Cash Flow levels are expected to be reduced, as a result of investments required to support future growth and the effect of non-recurring favourable items, which occurred in 2009. In Aeroplan Canada, the Average Cost of Rewards per Aeroplan Mile Redeemed is not expected to exceed 0.95 cents on an annual basis throughout 2010, with gross margin remaining relatively stable. Gross Billings from Carlson Marketing are expected to approximate US$600 million, with Adjusted EBITDA in the 6% to 8% range, before one time transition costs, which are estimated at US$15 million. The successful transition of the technology solutions in the US, out of the vendor's platforms, represents both, the biggest opportunity and risk associated to Carlson Marketing's 2010 performance. These costs could increase by up to US$2 million per month, should the transition be delayed from the original timetable. Groupe Aeroplan's portion of the funding requirements for the launch of the Nectar Italia program, which will affect consolidated Adjusted EBITDA, is expected to be in the range of (euro)15 million over 2010. Nectar Italia is expected to generate annual Gross Billings in the range of (euro)60 million to (euro)80 million within three years. The current income tax rate is anticipated to approximate 30% in Canada, and there is an expectation that no significant cash income taxes will be incurred in the rest of the Corporation's foreign operations. The outlook provided constitutes forward-looking statements within the meaning of applicable securities laws and should be read in conjunction with the section below entitled "Caution Concerning Forward-Looking Statements". Corporate Developments DividendsThe Corporation also announced today that the Board of Directors declared a quarterly dividend of $0.125 per common share, payable on March 31, 2010 to shareholders of record at the close of business on March 17, 2010.In addition, the Board declared an initial quarterly dividend for the period from January 20, 2010 to March 31, 2010 in the amount of $0.31164 per Cumulative Rate Reset Preferred Share, Series 1, payable on March 31, 2010 to the holders of record at the close of business on March 17, 2010. Executive appointmentsOn March 1, 2010, the Corporation announced the addition of a renowned loyalty thought leader to its executive management team with the appointment of Rick Ferguson, the former Editorial Director of the loyalty publication COLLOQUY. Ferguson, in his new role as Vice President, Knowledge Development, will assume overall direction for the dissemination of loyalty marketing thought-leadership, research and best practices. Senior Secured Notes OfferingOn January 26, 2010, Groupe Aeroplan issued Senior Secured Notes Series 3 in the principal amount of $200.0 million. These notes bear interest at 6.95%, payable semi-annually in arrears, mature on January 26, 2017, and are secured by substantially all the present and future assets of Groupe Aeroplan and certain of its subsidiaries. The proceeds from the notes issued were used to repay a portion of the term facility. Issuance of Preferred SharesOn January 20, 2010 and January 26, 2010, pursuant to a prospectus supplement dated January 13, 2010, Groupe Aeroplan issued a total of 6,900,000 Preferred Shares Series 1 with a 6.5% annual cumulative, quarterly dividend subject to a rate reset on March 31, 2015 and every five years thereafter at a rate equal to the 5-year Government of Canada bond yield plus 3.75%, for total cash consideration of $167.3 million, net of issue costs of $5.2 million. The Preferred Shares, Series 1 will be redeemable by Groupe Aeroplan Inc. on March 31, 2015, and every five years thereafter in accordance with their terms. Recent Developments Partnerships ASK - Nectar UKOn March 2, 2010, Nectar announced that it was revamping its rewards with the addition of a number of big brand household names joining the program this year. The first of these new partnerships is with ASK, a nationwide chain of 120 contemporary Italian restaurants. Nestlé - Aeroplan CanadaOn February 25, 2010, Aeroplan announced the signing of a multi-year agreement with Nestlé in Canada that will enable members to earn Aeroplan Miles on more than 60 Nestlé and Nestlé Purina PetCare products starting March 1, 2010. Octopus Travel - Air Miles Middle EastOn January 26, 2010, Air Miles Middle East announced Octopus Travel as its first online partner across the region to offer its members the chance to earn Air Miles when booking online from a portfolio of over 30,000 hotels worldwide. Avis and Hertz - Aeroplan CanadaOn December 22, 2009, Aeroplan announced the renewal of multi-year agreements with its car rental partners of choice - Avis and Hertz, which will enable members to continue to earn and redeem Aeroplan Miles on all car rentals across North America and Europe. Brussels Airlines - Aeroplan CanadaOn December 9, 2009, Aeroplan announced the addition of Brussels Airlines to its growing roster of 33 travel partners flying to more than 1,000 destinations worldwide. MSC Cruises - Aeroplan CanadaOn December 7, 2009, Aeroplan and MSC Cruises announced a new partnership by which Aeroplan Members can earn miles on select cruises offered throughout the Mediterranean, Northern Europe, Transatlantic, the Caribbean, New England and Canada in addition to transatlantic and positioning cruises. Corporate Social Responsibility Relief Efforts in ChileOn March 2, 2010, Aeroplan announced a donation of 1 million Aeroplan Miles to the Canadian Red Cross to support the emergency relief efforts in the aftermath of the massive earthquake in Southern Chile. Aeroplan also invited its members who wish to support the Chilean community to donate their Aeroplan Miles online at http://www.aeroplan.com. In addition, Groupe Aeroplan will match employee donations from all its business units around the world until March 15, 2010. New Global Environmental PartnerOn January 18, 2010, the Corporation announced a new strategic partnership with Offsetters, the first Official Supplier of Carbon Offsets to Olympic Games and Official Carbon Offset provider to the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC). Offsetters will provide high quality carbon offsets for Groupe Aeroplan's total global carbon footprint and for member-driven programs and initiatives such as Aeroplan Canada's offset program. In 2009, Aeroplan Members redeemed more than 32 million miles for carbon offsets, equivalent to reducing 14,000 tonnes of greenhouse gas emissions or removing 2,545 cars from the road.Offsetters will also help the Corporation expand its environmental commitment beyond Canada. Relief Efforts in HaitiOn January 14, 2010, Aeroplan announced a donation of 1 million Aeroplan Miles to the Canadian Red Cross to support the emergency relief efforts in the aftermath of the earthquake in Haiti. An additional 1 million miles was given to Aeroplan's Beyond Miles partner Médecins Sans Frontières who run both a maternity and a surgical hospital in Haiti. Aeroplan also invited its members to donate their Aeroplan Miles to either of these Canadian emergency relief organizations. To date more than 7 million miles have been donated.In addition, Groupe Aeroplan employees from around the world have united to show their support for the Red Cross's relief aid in Haiti and, together with Groupe Aeroplan's dollar for dollar match, made a significant contribution to the Red Cross. Aeroplan Match DaysOn December 10, 2009, Aeroplan announced that its members donated more than 6 million miles as part of "Aeroplan Match Days" with the following Aeroplan Beyond Miles partners: Médecins Sans Frontières, Schools Without Borders, the Stephen Lewis Foundation and Veterinarians Without Borders. Aeroplan matched member donations to bring the total amount to 12 million miles that have gone directly to these Canadian charities. This is equivalent to approximately 100 international flights, 800 hotel stays or 2,400 daily car rentals.In 2009, Aeroplan Members donated more than 30 million Aeroplan Miles to the Beyond Miles program. Non-GAAP Measures In order to provide a better understanding of the results, the following terms are used: Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA adjusted for certain factors particular to the business, such as changes in deferred revenue and Future Redemption Costs ("Adjusted EBITDA"), is used by management to evaluate performance, and to measure compliance with debt covenants. Management believes Adjusted EBITDA assists investors in comparing the Corporation's performance on a consistent basis without regard to depreciation and amortization, which are non-cash in nature and can vary significantly depending on accounting methods and non-operating factors such as historical cost. Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to operating income or net income in measuring performance, and is not comparable to similar measures used by other issuers. For a reconciliation to GAAP, please refer to the SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW included in the attached schedule. Adjusted EBITDA should not be used as an exclusive measure of cash flow because it does not account for the impact of working capital growth, capital expenditures, debt repayments and other sources and uses of cash, which are disclosed in the statements of cash flows. Adjusted Net Earnings Net earnings in accordance with GAAP adjusted for Amortization of Accumulation Partners' contracts and technology; Change in deferred revenue, Change in Future Redemption Costs and the income tax effect thereon calculated at the effective income tax rate as reflected in the statement of operations, provides a measurement of profitability calculated on a basis consistent with Adjusted EBITDA. Adjusted Net Earnings is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, and is not comparable to similar measures used by other issuers. For a reconciliation to GAAP, please refer to the SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW included in the attached schedule. Standardized Free Cash Flow ("Free Cash Flow") Free Cash Flow is a non-GAAP measure recommended by the CICA in order to provide a consistent and comparable measurement of free cash flow across entities of cash generated from operations and is used as an indicator of financial strength and performance. Free Cash Flow is defined as cash flows from operating activities, as reported in accordance with GAAP, less adjustments for: total capital expenditures as reported in accordance with GAAP; and dividends, when stipulated, unless deducted in arriving at cash flows from operating activities. For a reconciliation to cash flows from operations please refer to the SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW included in the attached schedule. EBITDA and Free Cash Flow are non-GAAP measurements recommended by the CICA in accordance with the draft recommendations provided in their February 2008 publication, Improved Communications with Non-GAAP Financial Measures - General Principles and Guidance for Reporting EBITDA and Free Cash Flow. Quarterly Investor Conference Call/Audio Webcast Groupe Aeroplan Inc. will hold an analyst call at 1:00 p.m. ET on Thursday March 4, 2010 to discuss its 2009 year-end and fourth quarter results. The call may be accessed by dialing toll free: 1- 888-231-8191 or 647-427-7450 for the Toronto area. The call will be simultaneously audio webcast at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2949540. An archive of the audio webcast will be available at: http://www.groupeaeroplan.com/pages/invEvents.php for ninety days following the original broadcast. The audited consolidated financial statements, the MD&A and a financial highlights presentation will be accessible on the investor relations website at http://www.groupeaeroplan.com under Financial Results. About Groupe Aeroplan Inc. Groupe Aeroplan Inc. a global leader in loyalty management, owns Aeroplan, Canada's premier coalition loyalty program, Carlson Marketing, an international loyalty marketing services, engagement and events provider headquartered in the U.S., as well as Nectar, the United Kingdom's leading coalition loyalty program. In the Gulf Region, Groupe Aeroplan holds a 60% interest in the Air Miles Middle East programs in the United Arab Emirates, Qatar and Bahrain. Groupe Aeroplan also operates LMG Insight & Communication, a customer-driven insight and data analytics business offering international services to retailers and their suppliers, and it has a majority 75% ownership position in Nectar Italia, the first independent loyalty coalition program uniting leading retailers in Italy. For more information about Groupe Aeroplan, please visit http://www.groupeaeroplan.com. Caution Concerning Forward-Looking Statements Certain statements in this news release may contain forward-looking statements. Forward-looking statements are included in this news release. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, risks related to the business and the industry, Air Canada liquidity issues, dependency on top accumulation partners and clients, conflicts of interest, Air Canada or travel industry disruptions, airlines industry changes and increased airline costs, retail market/economic downturn, greater than expected redemptions for rewards, industry competition, integration of Carlson Marketing, supply and capacity costs, unfunded future redemption costs, failure to safeguard databases and consumer privacy, consumer privacy legislation, changes to loyalty programs, seasonal nature of the business, other factors and prior performance, regulatory matters, legal proceedings, reliance on key personnel, labour relations, pension liability, technological disruptions and inability to use third party software, failure to protect intellectual property rights, interest rate and currency fluctuations, leverage and restrictive covenants in current and future indebtedness, dilution of shareholders, uncertainty of dividend payments, level of indebtedness-refinancing risk, managing growth, credit ratings, as well as the other factors identified throughout the MD&A. The forward-looking statements contained herein represent Groupe Aeroplan's expectations as of March 3, 2010, and are subject to change after that date. However, Groupe Aeroplan disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations. << SUMMARY OF CONSOLIDATED OPERATING RESULTS AND RECONCILIATION OF EBITDA, ADJUSTED EBITDA, ADJUSTED NET EARNINGS AND FREE CASH FLOW ------------------------------------------------------------------------- ------------------------------------------------------------------------- (in thousands, except share/unit and Year per share/per unit over year information) % change ---------------------------------------------------- ---------------------------------------------------- 2009 2008 over over 2009 2008 2007 (g) 2008 2007 ---------------------------------------------------- $ $ $ ------------------------------------------------------------------------- Gross Billings from the sale of GALUs 1,363,010 1,420,548 952,165 (4.1) 49.2 ------------------------------------------------------------------------- GALUs revenue 1,352,527 1,377,736 848,665 (1.8) 62.3 Other revenue 84,312 80,493 57,750 4.7 39.4 ------------------------------------------------------------------------- Total revenue 1,436,839 1,458,229 906,415 (1.5) 60.9 Cost of rewards (893,415) (859,082) (540,061) 4.0 59.1 ------------------------------------------------------------------------- Gross margin 543,424 599,147 366,354 (9.3) 63.5 Selling, general and administrative expenses (280,134) (271,591) (164,841) 3.1 64.8 Depreciation and amortization (19,280) (20,636) (11,804) (6.6) 74.8 ------------------------------------------------------------------------- Operating income before amortization of Accumulation Partners' contracts and technology 244,010 306,920 189,709 (20.5) 61.8 ------------------------------------------------------------------------- Depreciation and amortization 19,280 20,636 11,804 (6.6) 74.8 ------------------------------------------------------------------------- EBITDA (a) 263,290 327,556 201,513 (19.6) 62.5 ------------------------------------------------------------------------- Adjustments: Change in deferred revenue Gross Billings from the sale of GALUs 1,363,010 1,420,548 952,165 GALUs revenue (1,352,527) (1,377,736) (848,665) Change in Future Redemption Costs (b) 7,861 (51,202) (52,916) (Change in Net GALUs outstanding x Average Cost of Rewards per GALUs for the period) ------------------------------------------------------------------------- Subtotal of Adjustments 18,344 (8,390) 50,584 ------------------------------------------------------------------------- Adjusted EBITDA (a) 281,634 319,166 251,737 (11.8) 26.8 ------------------------------------------------------------------------- Net earnings (loss) in accordance with GAAP 89,275 (965,210) (4,819) Weighted average number of shares (units) 199,443,084 199,392,420 190,023,236 (e) Earnings (loss) per share (unit) 0.45 (4.84) (0.03) ------------------------------------------------------------------------- Net earnings (loss) in accordance with GAAP 89,275 (965,210) (4,819) Amortization of Accumulation Partners' contracts and technology 80,246 87,838 - Subtotal of Adjustments (from above) 18,344 (8,390) 50,584 Effective tax rate (c) -33.1% -0.38% - Tax on adjustments at the effective rate (6,077) 32 - ------------------------------------------------------------------------- Adjusted net earnings (d) 181,788 274,970 (h) 45,765 Adjusted net earnings per share (unit) 0.91 1.38 (h) 0.24 ------------------------------------------------------------------------- Net earnings (loss) 89,275 195,490 (h) (4,819) Earnings (loss) per share (unit) 0.45 0.98 (h) (0.03) ------------------------------------------------------------------------- Cash flow from operations 288,489 323,079 308,245 Maintenance Capital Expenditures (23,469) (22,558) (16,325) Dividends/ distributions (99,988) (122,981) (173,000) (f) ------------------------------------------------------------------------- Free cash flow (d) 165,032 177,540 118,920 (7.0) 49.3 ------------------------------------------------------------------------- Total assets 5,217,992 5,017,720 6,118,340 Total long-term liabilities 1,618,201 1,428,503 1,579,297 Total dividends/ distributions declared 99,988 108,983 168,000 (f) Total dividends per share/ distributions declared per unit 0.50 0.55 0.84 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (a) A non-GAAP measurement, excluding the effect of the "Foreign Exchange" line of the Statement of Operations, as it reflects the impact of the currency swap. (b) The per unit cost derived from this calculation is retroactively applied to all prior periods with the effect of revaluing the Future Redemption Cost liability on the basis of the latest available average unit cost. (c) Effective tax rate calculated as follows: income tax expense per the statement of operations/earnings before income taxes for the period. (d) A non-GAAP measurement. (e) Represents the weighted average number of units of the Fund. (f) Distributions paid and declared in 2007 are those of the Partnership. (g) Has been derived by adding the results of the Partnership prior to March 14, 2007 to the results of the Fund for the year. (h) Excluding impairment charge. SUMMARY OF QUARTERLY RESULTS >> This section includes sequential quarterly data for the eight quarters ended December 31, 2009. << ------------------------------------------------------------------------- ------------------------------------------------------------------------- (in thousands, except per share amounts) 2009 ------------------------------------------------------------------------- Q4 Q3 Q2 Q1 $ $ $ $ ------------------------------------------------------------------------- Gross Billings 363,048 335,882 337,832 326,248 ------------------------------------------------------------------------- GALUs revenue 401,202 303,181 312,400 335,744 Other revenue 23,650 19,467 21,115 20,080 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total revenue 424,852 322,648 333,515 355,824 Cost of rewards (277,331) (187,994) (201,728) (226,362) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gross margin 147,521 134,654 131,787 129,462 Selling, general and administrative expenses (77,606) (67,761) (68,626) (66,141) Depreciation and amortization (4,722) (4,494) (5,127) (4,937) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating income before amortization of Accumulation Partners' contracts and technology 65,193 62,399 58,034 58,384 Amortization of Accumulation Partners' contracts and technology (19,967) (20,079) (20,485) (19,715) ------------------------------------------------------------------------- Operating income 45,226 42,320 37,549 38,669 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (loss) 20,545 18,756 26,746 23,228 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted EBITDA (a) 69,553 76,706 70,564 65,228 (d) ------------------------------------------------------------------------- Adjusted net earnings (a) 40,319 45,405 52,254 44,551 ------------------------------------------------------------------------- Net earnings 20,545 18,756 26,746 23,228 Earnings per share/unit 0.10 0.09 0.13 0.12 ------------------------------------------------------------------------- Free cash flow (a) 79,168 44,014 90,841 (48,991) ------------------------------------------------------------------------- Earnings per share (unit), in accordance with GAAP - Groupe Aeroplan/Fund 0.10 0.09 0.13 0.12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (in thousands, except per share amounts) 2008 ------------------------------------------------------------------------- Q4 Q3 Q2 Q1 $ $ $ $ ------------------------------------------------------------------------- Gross Billings 364,437 355,603 357,858 342,650 ------------------------------------------------------------------------- GALUs revenue 409,552 313,319 317,579 337,286 Other revenue 20,780 21,635 19,149 18,929 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total revenue 430,332 334,954 336,728 356,215 Cost of rewards (252,229) (191,033) (192,593) (223,227) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gross margin 178,103 143,921 144,135 132,988 Selling, general and administrative expenses (66,426) (71,027) (69,627) (64,511) Depreciation and amortization (6,494) (4,472) (4,998) (4,672) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating income before amortization of Accumulation Partners' contracts and technology 105,183 68,422 69,510 63,805 Amortization of Accumulation Partners' contracts and technology (19,836) (22,636) (22,688) (22,678) ------------------------------------------------------------------------- Operating income 85,347 45,786 46,822 41,127 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (loss) (1,073,752)(b) 34,956 31,454 42,132 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted EBITDA (a) 80,559 (d) 79,366 (d) 81,856 (d) 73,267 (d) ------------------------------------------------------------------------- Adjusted net earnings (a) 84,661 (c) 63,229 60,822 69,971 ------------------------------------------------------------------------- Net earnings 86,948 (c) 34,956 31,454 42,132 Earnings per share/unit 0.44 (c) 0.18 0.16 0.21 ------------------------------------------------------------------------- Free cash flow (a) 42,492 115,868 43,636 (24,456) ------------------------------------------------------------------------- Earnings per share (unit), in accordance with GAAP - Groupe Aeroplan/Fund (5.39) 0.18 0.16 0.21 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (a) A non-GAAP measurement. (b) Includes impairment charge. (c) Excludes impairment charge. (d) A non-GAAP measurement, excluding the effect of the "Foreign Exchange" line of the Statement of Operations, as it reflects the impact of the currency swap. >> SOURCE: GROUPE AEROPLAN INC. Media: Michele Meier, (514) 205-7028, michele.meier@aeroplan.com; JoAnne Hayes, (416) 352-3706, joanne.hayes@aeroplan.com; Analysts: Trish Moran, (416) 352-3728, trish.moran@aeroplan.com For full details on AerCap Holdings (AER) AER. AerCap Holdings (AER) has Short Term PowerRatings at TradingMarkets. Details on AerCap Holdings (AER) Short Term PowerRatings is available at This Link. For full details on (GAPFF) GAPFF. (GAPFF) has Short Term PowerRatings at TradingMarkets. Details on (GAPFF) Short Term PowerRatings is available at This Link. Association News 2010-03-10T14:41:17+00:00 http://www.loyalty360.org/association_news/article/physicians_mutual_expands_acxiom_agreement_unifies_customer_and_prospect_ma http://www.loyalty360.org/association_news/article/physicians_mutual_expands_acxiom_agreement_unifies_customer_and_prospect_ma#When:14:15:36Z National health and life insurer Physicians Mutual is increasing its emphasis on customer acquisition through added consumer insights from its long-term marketing database provider, Acxiom(R) Corporation . Under a new multi-year agreement, Acxiom will continue managing Physicians Mutual's customer marketing database and will also begin managing the company's customer prospect database. The insurer's new combined marketing universe will be enhanced with Acxiom's InfoBase-X(R), the largest collection of U.S. consumer information available in one source. This will establish a unique platform to create deeper insights into existing customers to use in formulating strategies for new customer acquisition.Deeper Customer Insight Means Better Picture of Prospects LITTLE ROCK, Ark., Mar 04, 2010 -- National health and life insurer Physicians Mutual is increasing its emphasis on customer acquisition through added consumer insights from its long-term marketing database provider, Acxiom(R) Corporation . Under a new multi-year agreement, Acxiom will continue managing Physicians Mutual's customer marketing database and will also begin managing the company's customer prospect database. The insurer's new combined marketing universe will be enhanced with Acxiom's InfoBase-X(R), the largest collection of U.S. consumer information available in one source. This will establish a unique platform to create deeper insights into existing customers to use in formulating strategies for new customer acquisition. "This agreement will create a unified marketing database environment that will help us better understand and respond to our customers' preferences and expectations," said Rob Reed, Physicians Mutual's executive vice president and chief operating officer. Holly Marr, vice president of Acxiom's insurance practice, sees the expanded agreement as a natural extension of a relationship spanning more than two decades. "Physicians Mutual will be positioned for true multichannel capabilities as they broaden and tailor their approach in a highly competitive market," she said. "Effective customer engagement is essential to growing the top line, and knowing your best customers and how that translates into attracting new customers is the first step in that process." About Physicians Mutual Physicians Mutual Insurance Company and Physicians Life Insurance Company, a member of the Physicians Mutual family, provide a full portfolio of health and life insurance products, as well as financial products. The companies have total assets exceeding $2.7 billion. Both Physicians Mutual and Physicians Life consistently receive high grades from independent insurance analysts. They have an A.M. Best rating of "A (Excellent)," based on financial strength. TheStreet.com Rating gives Physicians Mutual an "A+ (Excellent)" and Physicians Life an "A- (Excellent)" based on financial security. Founded in 1902, Physicians Mutual headquarters are in Omaha, Nebraska. About Acxiom A global leader in interactive marketing services and infrastructure management, Acxiom connects clients with their customers through deep customer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Our secure, high-performance technology services deliver consistent value and reliability. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, and serves clients around the world from locations in the United States, Europe, Middle East and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com. Acxiom and InfoBase-X are trademarks of Acxiom Corporation. SOURCE: Acxiom  Acxiom Public Relations  Jonathan Portis, 501-252-0582  jonathan.portis@acxiom.com  GACXM    Copyright Business Wire 2010   Association News 2010-03-05T14:15:36+00:00 http://www.loyalty360.org/association_news/article/american_airlines_expands_aadvantage_eshopping_mall_enabling_aadvantage_mem http://www.loyalty360.org/association_news/article/american_airlines_expands_aadvantage_eshopping_mall_enabling_aadvantage_mem#When:16:26:21Z American Airlines announced today that AAdvantage® members can earn more miles than ever before with the newly enhanced AAdvantage eShoppingSM mall. Leading retailers have joined together with the AAdvantage eShopping mall to offer more ways to earn miles. The ability to purchase gift cards, as well as access to special deals and optimized shopping features, are among the enhancements. Additionally, for the first time, AAdvantage members can earn miles with participating AAdvantage eShopping retailers in actual “brick-and-mortar” stores – not just online.AAdvantage eShopping Customers Can Now Enjoy New Custom Features FORT WORTH, Texas – American Airlines announced today that AAdvantage® members can earn more miles than ever before with the newly enhanced AAdvantage eShoppingSM mall. Leading retailers have joined together with the AAdvantage eShopping mall to offer more ways to earn miles. The ability to purchase gift cards, as well as access to special deals and optimized shopping features, are among the enhancements. Additionally, for the first time, AAdvantage members can earn miles with participating AAdvantage eShopping retailers in actual “brick-and-mortar” stores – not just online. Members can rack up extra miles by using a registered credit or debit card on purchases with participating AAdvantage eShopping retailers on the Web site, at retail stores or through retail catalogs. Sunglass Hut, Jos. A. Bank, Sally Beauty and Golfsmith are just a few of the retailers offering AAdvantage miles when shopping at retail stores. And, now through March 8, members can earn three miles per dollar spent at Jos. A. Bank retail stores – a 50 percent increase from the base offer. To browse a complete list of participating retailers visit http://www.aa.com/eshopping <http://www.aa.com/eshopping> . “We are happy to provide AAdvantage members with as many opportunities as possible to collect miles and discover savings,” said Rob Friedman, American’s President – AAdvantage Marketing Programs.  “The site’s new look and features are designed with savvy AAdvantage shoppers in mind, allowing them to personalize and prioritize their purchases all in one place.” New shopping features on the eShopping site include: ·        Online deals and coupons ·        A powerful product search engine ·        Intuitive product comparison options ·        An estimated-mileage earning calculator New, customizable account features on the eShopping site include: ·        The ability to view shopping activity and mile-earning history ·        An easy-access area of the site where customers can save favorite retailers ·        The option to register any credit or debit card for convenient, in-store earning ·        Reminders for special occasions, such as birthdays, anniversaries and holidays ·        Tools to help manage promotional messages and deal notifications For further information on AAdvantage eShopping mall features and offers, please visit http://www.aa.com/eshopping <http://www.aa.com/eshopping> . If you’re not already an AAdvantage member, it’s easy and free to enroll in the program. Just visit http://www.aa.com/enroll <http://www.aa.com/enroll> . About the AAdvantage Program The AAdvantage program was the first frequent flyer program. Established in 1981, the program now has more than 62 million members. Members can earn miles at more than 1,000 participating companies, which include more than 30 hotel chains representing more than 60 brands, more than 20 airlines, eight car-rental companies, 10 financial companies, and over 350 brand name retailers. In addition, members can earn miles when making purchases with one of more than 100 affinity card products in over 40 countries. In 2009, AAdvantage members redeemed more than 150 billion miles to claim more than 6.9 million awards for flights, upgrades and car rentals. For more information and a listing of AAdvantage program participating companies, visit http://www.aa.com/aadvantage <http://www.aa.com/aadvantage> .   About American Airlines American Airlines, American Eagle and AmericanConnection® serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning Web site, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in more than 130 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle,   AmericanConnection, AA.com, We know why you fly and AAdvantage are registered trademarks of American Airlines, Inc. (NYSE: AMR) AmericanAirlines® We know why you fly® Current AMR Corp. releases can be accessed on the Internet. The address is http://www.aa.com   Association News 2010-03-04T16:26:21+00:00 http://www.loyalty360.org/association_news/article/groupe_aeroplan_lands_loyalty_thought_leader http://www.loyalty360.org/association_news/article/groupe_aeroplan_lands_loyalty_thought_leader#When:16:04:09Z Groupe Aeroplan Inc.announced the addition of a renowned loyalty thought leader to its executive management team with the appointment of Rick Ferguson, the former Editorial Director of the loyalty publication COLLOQUY. Effective immediately, Ferguson, in his new role as Vice President, Knowledge Development, will assume overall direction for the dissemination of loyalty marketing thought-leadership, research and best practices.MONTREAL, March 1  - Groupe Aeroplan Inc. (TSX: AER), today announced the addition of a renowned loyalty thought leader to its executive management team with the appointment of Rick Ferguson, the former Editorial Director of the loyalty publication COLLOQUY. Effective immediately, Ferguson, in his new role as Vice President, Knowledge Development, will assume overall direction for the dissemination of loyalty marketing thought-leadership, research and best practices. "We're thrilled that Rick has chosen to join us," commented Rupert Duchesne, Groupe Aeroplan's President and Chief Executive Officer. "Our commercial partners and clients look to Groupe Aeroplan for thought leadership, and with Rick's outstanding track record, I am confident that he will help us cement our position as the global leader in loyalty management." Recognized as a leading expert in customer loyalty by the Wall Street Journal, the New York Times, the Globe and Mail, USA Today, the Guardian UK, Forbes.com and MSNBC, Mr. Ferguson has published numerous articles and white papers describing best practices in customer loyalty and has pioneered research describing the characteristics of word-of-mouth advocates. He has taught loyalty-marketing workshops around the globe and has served as a featured or keynote speaker at customer loyalty conferences in Canada, China, Malaysia, Singapore, South Africa, the UK and the US. "I am excited to be joining Groupe Aeroplan at a time when the company is solidifying its position on the world stage," Mr. Ferguson commented. "With their recent acquisition of Carlson Marketing as well as the launch of Nectar Italia, Groupe Aeroplan is poised to extend their success as operators of both coalition and proprietary loyalty and reward programs." About Groupe Aeroplan Inc. Groupe Aeroplan Inc. is the global leader in loyalty management. Groupe Aeroplan owns Aeroplan, Canada's premier coalition loyalty program, Carlson Marketing, an international loyalty marketing services, engagement and events provider headquartered in the U.S., as well as Nectar, the United Kingdom's leading coalition loyalty program. In the Gulf Region, Groupe Aeroplan holds a 60% interest in the Air Miles Middle East programs in the United Arab Emirates, Qatar and Bahrain. Groupe Aeroplan also operates LMG Insight & Communication, a customer-driven insight and data analytics business offering international services to retailers and their suppliers, and it has a majority 75% ownership position in Nectar Italia, the first independent loyalty coalition program uniting leading retailers in Italy. For more information about Groupe Aeroplan, please visit www.groupeaeroplan.com. For further information: Media: Michèle Meier, (514) 205-7028, michele.meier@groupeaeroplan.com; JoAnne Hayes, (416) 352-3706, joanne.hayes@aeroplan.com; Analysts: Trish Moran, (416) 352-3728, trish.moran@groupeaeroplan.com   Association News 2010-03-03T16:04:09+00:00 http://www.loyalty360.org/association_news/article/loyalty360_stands_by_its_members_to_launch_upgraded_website_may_2010 http://www.loyalty360.org/association_news/article/loyalty360_stands_by_its_members_to_launch_upgraded_website_may_2010#When:14:37:00Z In fulfilling its mission to actively listen to and engage its members, Loyalty 360 is overhauling its website to include the more robust features and functionality its members need and want.  The Cincinnati-based loyalty marketing association has selected Digital Peabody/Unleaded Software to create the new website which is scheduled to launch in May 2010.Cincinnati, OH - March 3rd -  In fulfilling its mission to actively listen to and engage its members, Loyalty 360 is overhauling its website to include the more robust features and functionality its members need and want.  The Cincinnati-based loyalty marketing association has selected Digital Peabody/Unleaded Software to create the new website which is scheduled to launch in May 2010.  “We’ve heard what our members want in terms of design and functionality, and armed with their input we are working with Digital Peabody to create a site that will be unmatched in the industry,” says Mark Johnson, CEO of Loyalty 360.  “Digital Peabody has a demonstrated ability to produce stunning web design and superior website functionality for communities and clients worldwide, and we thrilled to be partnering with them to take our site to the next level.” “It takes more than sound coding to make it in the digital sphere,” says Lauren Engel, Business Strategist and founder of Digital Peabody, a member of the Unleaded Group and Unleaded Software. “It takes strategic intelligence. With Unleaded’s approach of balancing design sensibility and customized advanced functionality, Loyalty 360 will have the leading website in its space. In terms of engagement, no other website will compare to this site when it premiers in the near future.” The new design will be constructed with best practices including: CSS syntax (variables, mixins, operations, and nested rules) Javascript coding Quality validation rules (HTML, tags, links, scripts) Data collections and database structure Expression Engine settings, modules and extensions Open X configuration Because one key function of Loyalty 360 is to quantify marketing results, the organization recognized the need to include precision metrics into its own web presence—a move that satisfies members’ needs to value and evaluate marketing response to services and products they represent. The enhanced site will include an interactive job board, optimization, development of membership tiers and communities/councils, podcasts, user ratings and “other cutting edge interactive technologies, and an overall heightened user experience.  Says Johnson, “Loyalty360 has long been the leader in the loyalty marketing sector on the ground. We recognize that the next frontier of loyalty is cyberspace and we intend to out-perform any other player in the Internet on behalf of our loyal members and their clients.” About Loyalty 360 Loyalty 360 – The Loyalty Marketer’s Association (www.loyalty360.org) is the only organization that addresses the full spectrum of both customer and employee loyalty issues.  An unbiased, market driven clearinghouse and think-tank for loyalty and engagement opportunities, insights, and responses, Loyalty 360 is the source business leaders trust for industry metrics, market driven research, actionable case studies, and networking opportunities.  About Digital Peabody Digital Peabody, a member of the Unleaded Group and Unleaded Software (www.unleadedsoftware.com), is based in Denver, Colorado. The firm has a demonstrated ability to produce stunning web design and superior website functionality for communities and clients worldwide.   Association News 2010-03-03T14:37:00+00:00