8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported):

December 17, 2018

ALLIANCE DATA SYSTEMS CORPORATION

(Exact Name of Registrant as Specified in Charter)

DELAWARE	001-15749	31-1429215
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

7500 DALLAS PARKWAY, SUITE 700

PLANO, TEXAS 75024

(Address and Zip Code of Principal Executive Offices)

(214) 494-3000

(Registrant’s Telephone Number, including Area Code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

[     ]	Written communications pursuant to Rule 425 under the Securities Act
[     ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[     ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
[     ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    [  ]

Item 7.01 Regulation FD Disclosure.

On December 17, 2018, Alliance Data Systems Corporation issued a press release providing an update on its Card Services segment. A copy of this press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Document Description
99.1	Press release dated December 17, 2018 providing an update for the Card Services segment.

The information contained in this report (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Alliance Data Systems Corporation
Date: December 17, 2018	By:	/s/ Charles L. Horn
		Charles L. Horn
		Executive Vice President and
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Contact:	Investors/Analysts
	Tiffany Louder
	Alliance Data
	214-494-3048
	Tiffany.Louder@AllianceData.com
	Media
	Annabelle Baxter
	Alliance Data
	214-494-3818
	Annabelle.Baxter@AllianceData.com

ALLIANCE DATA PROVIDES CARD SERVICES

PERFORMANCE UPDATE FOR NOVEMBER 2018

Plano, TX, December 17, 2018 – Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today provided an update on its Card Services segment.

In conjunction with the release of the Company’s Master Trust Monthly Noteholder’s Statement, the Company is releasing similar metrics for the overall total managed portfolio. The Master Trust data represents a subset of the Company’s total managed portfolio, and the Company believes the information presented below provides a more complete view of the Card Services segment.

	For the month ended November 30, 2018			For the eleven months ended November 30, 2018
	(dollars in thousands)
Average receivables (1)	$	16,687,784		$	17,411,499
Year over year change in average receivables (1)		(6	)%		9	%
Net charge-offs	$	76,064		$	989,498
Net charge-offs as a percentage of average receivables (2)(3)		5.5	%		6.2	%
Active clients - average receivables (4)	$	16,678,586		$	16,008,100
Year over year change in active clients - average receivables (4)		8	%		16	%

(1)	Consistent with the Company’s commentary during its third quarter earnings call on October 18, 2018, non- strategic clients (primarily liquidating, in bankruptcy or due to merger or acquisition of the portfolio) have been removed from average receivables. Note that these portfolios are included in the prior year comparative average receivables and constituted approximately $2.3 billion of the portfolio at November 30, 2017. These excluded portfolios represent 100% of non-core files identified and no further adjustments are expected at this time.
(2)	Compares to 5.8% and 6.0% for the month and eleven months ended November 30, 2017, respectively.
(3)	Results are consistent with the net charge-off guidance as provided in the Company's second quarter earnings release issued July 19, 2018.  We are maintaining our expectations of a mid-5 percent range in the fourth quarter, and approximately 6 percent for the full year 2018. Although the delinquency rate continues to be slightly elevated due to minor noise, an improving recovery rate mitigates the impact to net principal loss rates.
(4)	Excludes non-strategic clients, which are primarily liquidating, in bankruptcy or due to merger or acquisition of the portfolio. Double-digit active growth is expected throughout 2019. As the non-core portfolios approach their anniversaries, reported average receivables growth will increase and eventually converge to the active clients – average receivables growth in late 2019.

	As of November 30, 2018				As of November 30, 2017
	(dollars in thousands)
30 days + delinquencies - principal		$	934,395		$	877,430
Period ended receivables - principal		$	16,423,947		$	17,542,738
Delinquency rate (3)			5.7	%		5.0	%

Alliance Data Systems Corporation

December 17, 2018

About Alliance Data

Alliance Data^® (NYSE: ADS) is a leading global provider of data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and emerging technologies. An S&P 500, FORTUNE 500 and FORTUNE 100 Best Companies to Work For company headquartered in Plano, Texas, Alliance Data consists of three businesses that together employ approximately 20,000 associates at more than 100 locations worldwide.

Alliance Data’s card services business is a provider of market-leading private label, co-brand, and business credit card programs. Epsilon^® is a leading provider of multichannel, data-driven technologies and marketing services, and also includes Conversant^®, a leader in personalized digital marketing. LoyaltyOne^® owns and operates the AIR MILES^® Reward Program, Canada’s most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.

Follow Alliance Data on Twitter, Facebook, LinkedIn, Instagram and YouTube.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our expected operating results, future economic conditions including currency exchange rates and the guidance we give with respect to our anticipated financial performance.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K.

Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

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