http://affiniongroupmedia.com/index.php/affinion/ir/C16/ en jonathan.carpenter@dvl.com Copyright 2010 2010-01-14T22:14:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_second_quarter_ended_june_30_2/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_second_quarter_ended_june_30_2/#When:22:26:00Z Adjusted EBITDA of $65.4 Million, Makes $25 Million Debt Prepayment, Its Eighth Voluntary Prepayment, And Refines Its 2007 Adjusted EBITDA Guideance NORWALK, Connecticut - August 13, 2007 - Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the three and six month periods ended June 30, 2007. On October 17, 2005, Affinion Group Inc. completed the acquisition (the "Transactions" ) of the marketing services division (the "Predecessor" ) of Cendant Corporation ("Cendant" ) pursuant to a purchase agreement dated July 26, 2005, as amended. Substantially all of the assets and liabilities of the Predecessor were acquired by Affinion in the Transactions. The information presented below is a comparison of the unaudited consolidated results of operations for the three and six month periods ended June 30, 2007 to the unaudited consolidated results of operations for the three and six month periods ended June 30, 2006. Purchase accounting adjustments made in 2005 as a result of the Transactions had a significant impact on Affinion's results of operations for the three and six month periods ended June 30, 2007 and 2006. For example, because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions were less than they otherwise would have been, with the majority of the impact of the purchase accounting adjustments recognized in 2005 and 2006 and declining in future periods. The effect of purchase accounting adjustments in Affinion's results of operations for the three and six month periods ended June 30, 2007 as compared to the three and six month periods ended June 30, 2006 was to increase net revenues by $59.7 million and $137.5 million, respectively, and to increase Segment EBITDA by $38.5 million and $89.0 million, respectively. Results for the Three and Six Month Periods Ended June 30, 2007 Net revenues for the three and six month periods ended June 30, 2007 were $333.3 million and $653.8 million, respectively, compared to $264.3 million and $510.2 million, respectively, for the three and six month periods ended June 30, 2006. The increase in net revenues was primarily attributable to an increase of $59.7 million and $137.5 million for the three and six month periods ended June 30, 2007, respectively, as compared to the comparable three and six month periods of the prior year principally due to the decline in the impact of the non-cash reduction in deferred revenue recorded in purchase accounting as part of the Transactions. Net revenues excluding the impact of the Transactions increased $9.3 million and $6.1 million for the three and six month periods ended June 30, 2007, respectively. The increase in revenue was primarily the result of higher revenues in International products and Insurance and package products, partially offset by lower Loyalty products and Membership products revenue. International products revenue increased primarily due to new retail and other retail program introductions, growth in the package business and a favorable currency impact, while Insurance and package products revenue increased primarily due to lower cost of insurance. Loyalty products revenue decreased due to the absence in 2007 of royalty revenue from patent licenses and the impact of contract terminations, while the decrease in Membership products revenue was the result of a change in certain deal structures. Segment EBITDA for the three and six month periods ended June 30, 2007 was $62.9 million and $115.0 million, respectively, compared to $16.5 million and $24.0 million for the three and six month periods ended June 30, 2006, respectively. Segment EBITDA for the three and six month periods ended June 30, 2007 included a positive variance of $38.5 million and $89.0 million, respectively, of non-cash purchase accounting adjustments, primarily due to the decrease in the impact of the deferred revenue reduction. Segment EBITDA excluding the impact of the Transactions increased $7.9 million and $2.0 million for the three and six month periods ended June 30, 2007, respectively, due to the increase in revenues excluding the impact of the Transactions and reduced marketing and commissions and operating costs, partially offset by an increase in general and administrative expenses, primarily due to higher costs associated with a dividend paid to equity holders in the first quarter of 2007 and Sarbanes-Oxley compliance costs and higher other general expenses. Adjusted EBITDA (as defined by Note (a) of Table 7) for the three month period ended June 30, 2007 was $65.4 million compared to $57.1 million for the three month period ended June 30, 2006. Selected Liquidity Data As part of the financing for the Transactions, Affinion (a) issued $270.0 million principal amount of 10 1/8% senior notes maturing on October 15, 2013 ($266.4 million net of discount), (b) entered into new senior secured credit facilities consisting of a term loan facility in the principal amount of $860.0 million and a revolving credit facility in an aggregate amount of up to $100.0 million, and (c) entered into a senior subordinated bridge loan facility in the principal amount of $383.6 million. On April 26, 2006, $349.5 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from a private offering of $355.5 million aggregate principal amount of 11 1/2% senior subordinated notes maturing on October 15, 2015. Subsequently, on May 3, 2006, the remaining $34.1 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from another private offering of $34.0 million aggregate principal amount of 10 1/8% senior notes maturing on October 15, 2013. The senior notes were issued as additional notes under the indenture dated as of October 17, 2005. At June 30, 2007, Affinion had $302.2 million outstanding under the senior notes (net of discounts and premiums), $705.0 million outstanding under the term loan facility, $351.1 million outstanding under the senior subordinated notes (net of discount), and $98.5 million available under the revolving credit facility (after giving effect to the issuance of $1.5 million of letters of credit). In addition, at June 30, 2007, Affinion had $30.8 million of unrestricted cash on hand. Voluntary Debt Prepayment On August 13, 2007, Affinion made a voluntary prepayment of $25.0 million principal amount under the term loan facility. This was Affinion's eighth voluntary prepayment. Since October 17, 2005, including this prepayment, Affinion has prepaid $180.0 million, or approximately 20.9%, of the term loan. Guidance Affinion refines its full year 2007 adjusted EBITDA guidance to the high end of the range, to $280-$285 million from $275-$285 million. Call-In Information Affinion will hold an informational call to discuss the results for the three and six month periods ended June 30, 2007 at 11:00 am. (EDT) on Tuesday, August 14, 2007. The conference call will be broadcast live and can be accessed by dialing 1-800-295-3991 (domestic) or 1-617-614-3924 (international) and entering passcode 15899097. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com A telephonic replay of the call will be available through midnight August 17, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 90964763. About Affinion We are a leading global provider of comprehensive marketing services and loyalty programs to many of the largest and most respected companies in the world. We partner with these leading companies to develop customized marketing programs that provide valuable products and services to their end customers using our creative design and product development capabilities. These products and services enable our marketing partners to strengthen their customer relationships, as well as generate significant incremental revenue, generally in the form of commission payments paid by us. We have substantial expertise in deploying various types of media, such as direct mail and the Internet, and bundling unique benefits to offer valuable products and services to the end customers of our marketing partners on a highly targeted basis. We provide credit monitoring and identity-theft resolution, accidental death and dismemberment insurance ("AD&D" ), discount travel services, loyalty programs, various checking account and credit card enhancement services and other products and services. We believe we are a market leader in each of our product areas and that our portfolio of products and services is the broadest in the industry. Our scale, combined with our nearly 35 years of experience, unique proprietary database, proven marketing techniques and strong marketing partner relationships, position us to perform well and grow in a variety of market conditions. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2007 and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Item 1A. Risk Factors" in Affinion's Annual Report on Form 10-K for the year ended December 31, 2006 and the other periodic reports filed by Affinion with the SEC from time to time. (1)Average Members and Average Basic Insured for the period are each calculated by determining the average members or insureds, as applicable, for each month (adding the number of members or insureds, as applicable, at the beginning of the month with the number of members or insureds, as applicable, at the end of the month and dividing that total by two) for each of the months in the period and then averaging that result for the period (i.e. quarter or year-to-date). A member's or insured's, as applicable, count is removed in the period in which the member or insured, as applicable, has cancelled. (2)Annualized Net Revenue Per Average Member and Annualized Net Revenue Per Supplemental Insured are each calculated by taking the revenues as reported for the period (i.e. quarter or year-to-date) and dividing it by the average members or insureds, as applicable, for the period. Quarterly periods are then multiplied by four to annualize this amount for comparative purposes. Upon cancellation of a member or an insured, as applicable, the member's or insured's, as applicable, revenues, are no longer recognized in the calculation. (3)Includes 2,220,000 and 2,046,000 average members for the three months ended June 30, 2007 and 2006, respectively, and 2,188,000 and 1,973,000 average members for the six months ended June 30, 2007 and 2006, respectively, related to wholesale programs historically offered under retail arrangements. (4)Includes International Operations New Retail Average Members. Purchase accounting adjustments made in the Transactions had a significant impact on the Company's consolidated results of operations in 2007. These entries, which are non-cash in nature, increased net revenues by $59.7 million and $137.5 million and income from operations by $68.3 million and $143.8 million for the three and six month periods ended June 30, 2007. Because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions are less than they otherwise would have been, and such impact will decline in future periods. Also, the Company recorded a liability in purchase accounting for the fair value of servicing the Company's members existing at the date of the Transactions for which no revenue will be recognized in the future. Because the liability recorded in purchase accounting is used to offset future servicing costs for such members, the Company's operating costs are lower for periods following the Transactions than they otherwise would have been. Also, because prepaid commissions were reduced in purchase accounting, marketing and commissions expense for periods following the Transactions are less than they otherwise would have been. The effect of these and other purchase accounting adjustments on the Company's consolidated results of operations for the three and six month periods ended June 30, 2007 was to increase net revenues by $59.7 million and $137.5 million, respectively, marketing and commissions expense by $15.4 million and $33.1 million, respectively, and operating costs by $8.9 million and $23.1 million, respectively. Additionally, the Company recorded $29.8 million and $54.8 million less depreciation and amortization expense for the three and six months ended June 30, 2007, respectively, which positively affected results of operations. (a)Segment EBITDA consists of income from operations before depreciation and amortization. Segment EBITDA is the measure management uses to evaluate segment performance and we present Segment EBITDA to enhance your understanding of our operating performance. We use Segment EBITDA as one criterion for evaluating our performance relative to that of our peers. We believe that Segment EBITDA is an operating performance measure, and not a liquidity measure, that provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. Adjusted EBITDA is defined as Segment EBITDA further adjusted to exclude non-cash and unusual items and other adjustments permitted in our debt agreements to test the permissibility of certain types of transactions, including debt incurrence. We believe that the inclusion of the adjustments to Segment EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain non-cash items and unusual items. However, Segment EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP, and our Segment EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our Segment EBITDA and Adjusted EBITDA as alternatives to operating or net income determined in accordance with U.S. GAAP, as indicators of our operating performance or as alternatives to cash flows from operating activities determined in accordance with U.S. GAAP, or as indicators of cash flows, or as a measure of liquidity. (b)Effect of the Transactions, reorganizations and non-recurring revenues and gains - eliminates the effects of the Transactions, prior business reorganizations and non-recurring revenues and gains. For the three and six month periods ended June 30, 2007 and 2006, the amounts relate entirely to the effect of the Transactions. See Table 5 for additional information regarding the effect of the Transactions. (c)Certain legal costs&#45represents legal costs for certain litigation matters. (d)Net cost savings&#45represents the elimination of costs associated with severance incurred in 2006 and 2007. (e)Goodwill impairment&#45represents the 2006 goodwill impairment charge related to the goodwill ascribed to the Loyalty products business. (f)Other, net&#45represents: (i) net changes in other reserves in 2006 and 2007, (ii) the elimination of stock-based compensation expense and (iii) consulting fees paid to Apollo in 2006 and 2007. (g)The interest coverage ratio is defined in our senior secured credit facility (Adjusted EBITDA, as defined, to interest expense, as defined). The calculation presented is annualized. The interest coverage ratio must be greater than 1.50 to 1.0 at June 30, 2007. (h)The consolidated leverage ratio is defined in our senior secured credit facility (total debt, as defined, to Adjusted EBITDA, as defined). The consolidated leverage ratio must be less than 6.75 to 1.0 at June 30, 2007. Inverstor Relations 2007-08-13T22:26:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_the_qu/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_the_qu/#When:16:09:01Z NORWALK, Conn. - Aug. 3, 2007 - Affinion Group, Inc. will hold an informational call to discuss the results for the second quarter ended June 30, 2007 at 11:00 a.m. (EST) on Tuesday, Aug. 14, 2007. The conference call will be broadcast live and can be accessed by dialing 1-800-295-3991 (domestic) or 1-617-614-3924 (international) and entering passcode 15899097. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com. The company plans to issue a news release regarding its financial results after the market closes on Aug. 13, 2007. A telephonic replay of the call will be available through midnight Aug. 17, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 90964763. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on our travel fulfillment business, termination or expiration of one or more agreements with our affinity partners or a reduction of the marketing of our services by one or more of our affinity partners, the outcome of numerous legal actions, our substantial leverage, costs of developing our own stand-alone systems and transitioning to an independent company, restrictions contained in our debt agreements and our inability to compete effectively. Inverstor Relations 2007-08-03T16:09:01-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_quarter_ended_march_31_2007/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_quarter_ended_march_31_2007/#When:17:00:00Z ADJUSTED EBITDA OF $61.4 MILLION, MAKES $25 MILLION DEBT PREPAYMENT, ITS SEVENTH VOLUNTARY PREPAYMENT, AND REAFFIRMS ITS 2007 ADJUSTED EBITDA GUIDANCE NORWALK, Connecticut - May 14, 2007 - Affinion Group, Inc. ("Affinion" or the "Company"), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the quarter ended March 31, 2007. On October 17, 2005, Affinion Group Inc. completed the acquisition (the “Transactions") of the marketing services division (the “Predecessor") of Cendant Corporation ("Cendant") pursuant to a purchase agreement dated July 26, 2005, as amended. Substantially all of the assets and liabilities of the Predecessor were acquired by Affinion in the Transactions. The information presented below is a comparison of the unaudited consolidated results of operations for the quarter ended March 31, 2007 to the unaudited consolidated results of operations for the quarter ended March 31, 2006. Purchase accounting adjustments made in 2005 as a result of the Transactions had a significant impact on Affinion’s results of operations for the quarters ended March 31, 2007 and 2006. For example, because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions were less than they otherwise would have been, with the majority of the impact of the purchase accounting adjustment recognized in 2005 and 2006 and declining in future periods. The effect of purchase accounting adjustments in Affinion’s results of operations for the quarter ended March 31, 2007 as compared to the quarter ended March 31, 2006 was to increase net revenues by $77.8 million and to increase Segment EBITDA by $50.5 million. Results for the Quarter Ended March 31, 2007 Net revenues for the quarter ended March 31, 2007 were $320.5 million compared to $245.9 million for the quarter ended March 31, 2006. The increase in net revenues was primarily attributable to an increase of $77.8 million for the quarter ended March 31, 2007 as compared to the comparable quarter of the prior year principally due to decline in the impact of the non-cash reduction in deferred revenue recorded in purchase accounting as part of the Transactions. Net revenues excluding the impact of the Transactions decreased $3.2 million primarily due to lower Membership segment revenue resulting from a change in certain deal structures, and lower Loyalty segment revenue primarily due to lower royalty revenue from patent licenses and the termination of a contract during the fourth quarter of 2006. These declines were partially offset by increased International segment revenue to new retail and other retail program introductions and a favorable currency impact. Segment EBITDA for the quarter ended March 31, 2007 was $52.1 million compared to $7.5 million for the quarter ended March 31, 2006. Segment EBITDA for the quarter ended March 31, 2007 included a positive variance of $50.5 million of non-cash purchase accounting adjustments, primarily due to the decrease in the effect of the deferred revenue reduction. Segment EBITDA excluding the impact of the Transactions decreased $5.9 million due to the decline in revenues excluding the impact of the Transactions and an increase in general and administrative expenses, primarily due to higher costs associated with a dividend paid to equity holders and Sarbanes-Oxley compliance costs. These negative impacts on Segment EBITDA were partially offset by lower operating costs primarily due to lower product and servicing costs in our Membership business. Adjusted EBITDA (as defined by Note (a) of Table 7) for the three months ended March 31, 2007 was $61.4 million compared to $61.1 million for the three months ended March 31, 2006. Selected Liquidity Data As part of the financing for the Transactions, Affinion (a) issued $270.0 million principal amount of 10 1/8% senior notes maturing on October 15, 2013 ($266.4 million net of discount), (b) entered into new senior secured credit facilities consisting of a term loan facility in the principal amount of $860.0 million and a revolving credit facility in an aggregate amount of up to $100.0 million, and (c) entered into a senior subordinated bridge loan facility in the principal amount of $383.6 million. On April 26, 2006, $349.5 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from a private offering of $355.5 million aggregate principal amount of 11 1/2% senior subordinated notes maturing on October 15, 2015. Subsequently, on May 3, 2006, the remaining $34.1 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from another private offering of $34.0 million aggregate principal amount of 10 1/8% senior notes maturing on October 15, 2013. The senior notes were issued as additional notes under the indenture dated as of October 17, 2005. At March 31, 2007, Affinion had $302.1 million outstanding under the senior notes (net of discounts and premiums), $730.0 million outstanding under the term loan facility, $351.0 million outstanding under the senior subordinated notes (net of discount), and $98.5 million available under the revolving credit facility (after giving effect to the issuance of $1.5 million of letters of credit). In addition, at March 31, 2007, Affinion had $40.2 million of unrestricted cash on hand. Voluntary Debt Prepayment On May 14, 2007, Affinion made a voluntary prepayment of $25.0 million principal amount under the term loan facility. This was Affinion's seventh voluntary prepayment. Since October 17, 2005, including this prepayment, Affinion has prepaid $155.0 million, or approximately 18.0%, of the term loan. Guidance Affinion reaffirmed its full year 2007 adjusted EBITDA to be within the range of $275-$285 million. Call-In Information Affinion will hold an informational call to discuss the results for the quarter ended March 31, 2007 at 11:00 am. (EDT) on Tuesday, May 15, 2007. The conference call will be broadcast live and can be accessed by dialing 1-866-770-7125 (domestic) or 1-617-213-8066 (international) and entering passcode 17210329. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com A telephonic replay of the call will be available through midnight May 18, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 71303177. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through more than 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2007 and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Item 1A. Risk Factors" in Affinion's Annual Report on Form 10-K for the year ended December 31, 2006 and the other periodic reports filed by Affinion with the SEC from time to time. Inverstor Relations 2007-05-15T17:00:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_information_call_for_quarter_ended_march_31_2007/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_information_call_for_quarter_ended_march_31_2007/#When:23:04:00Z AFFINION GROUP, INC. TO HOLD INFORMATIONAL CALL TO DISCUSS RESULTS FOR THE QUARTER ENDED MARCH 31, 2007 NORWALK, Connecticut - May 8, 2007 - Affinion Group, Inc. will hold an informational call to discuss the results for the quarter ended March 31, 2007 at 11:00 a.m. (EST) on Tuesday, May 15, 2007. The conference call will be broadcast live and can be accessed by dialing 1-866-770-7125 (domestic) or 1-617-213-8066 (international) and entering passcode 17210329. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com. The company plans to issue a news release regarding its financial results after the market closes on May 14, 2007. A telephonic replay of the call will be available through midnight May 18, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 71303177. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on our travel fulfillment business, termination or expiration of one or more agreements with our affinity partners or a reduction of the marketing of our services by one or more of our affinity partners, the outcome of numerous legal actions, our substantial leverage, costs of developing our own stand-alone systems and transitioning to an independent company, restrictions contained in our debt agreements and our inability to compete effectively.  Inverstor Relations 2007-05-08T23:04:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_year_ended_december_31_20061/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_year_ended_december_31_20061/#When:22:37:00Z ADJUSTED EBITDA OF $264.0 MILLION, MAKES $25 MILLION DEBT PREPAYMENT, ITS SIXTH VOLUNTARY PREPAYMENT, AND REAFFIRMS ITS 2007 ADJUSTED EBITDA GUIDANCE NORWALK, Connecticut - March 22, 2007 - Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the year ended December 31, 2006. On October 17, 2005, Affinion Group Inc., completed the acquisition (the "Transactions" ) of the marketing services division (the "Predecessor Company" ) of Cendant Corporation ("Cendant" ) pursuant to a purchase agreement dated July 26, 2005, as amended. Substantially all of the assets and liabilities of the Predecessor Company were acquired by Affinion in the Transactions. The information presented below is a comparison of the audited consolidated results of operations of Affinion for the year ended December 31, 2006 to the unaudited pro forma consolidated results of operations of the Company for the year ended December 31, 2005. Purchase accounting adjustments made in 2005 as a result of the Transactions had a significant impact on Affinion's results of operations for the year ended December 31, 2006. For example, because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions were less than they otherwise would have been. The effect of purchase accounting adjustments in Affinion's results of operations for the year ended December 31, 2006 as compared to the year ended December 31, 2005 was to reduce net revenues by $73.6 million and to reduce Segment EBITDA by $51.0 million. Results for the Year Ended December 31, 2006 Net revenues for the year ended December 31, 2006, were $1,137.7 million compared to $1,198.7 million for the year ended December 31, 2005. The decrease in net revenues was primarily attributable to a decrease of $73.6 million for the year ended December 31, 2006 as compared to the prior year principally due to a non-cash reduction in deferred revenue recorded in purchase accounting as part of the Transactions. Segment EBITDA for the year ended December 31, 2006 was $108.3 million compared to $121.8 million for the year ended December 31, 2005. Segment EBITDA for the year ended December 31, 2006 included a $15.5 million non-cash goodwill impairment charge related to our Loyalty business and a negative variance of $51.0 million of non-cash purchase accounting adjustments, primarily the effect of the deferred revenue reduction. These negatives were partially offset by a $53.0 million improvement in Segment EBITDA, excluding the impact of the Transactions and the goodwill impairment charge. The improvement in Segment EBITDA was primarily due to lower operating costs from reduced product and service costs from servicing a lower member base, lower cost of insurance and lower general and administrative costs from lower litigation settlement costs and the absence of overhead charges from Cendant. Adjusted EBITDA (as defined by Note (a) of Table 7) for the year ended December 31, 2006 was $264.0 million compared to $257.2 million for the year ended December 31, 2005 on a pro forma basis. Selected Liquidity Data As part of the financing for the Transactions, Affinion (a) issued $270 million principal amount of 10 1/8% senior notes maturing on October 15, 2013 ($266.4 million net of discount), (b) entered into new senior secured credit facilities consisting of a term loan facility in the principal amount of $860 million and a revolving credit facility in an aggregate amount of up to $100 million, and (c) entered into a senior subordinated bridge loan facility in the principal amount of $383.6 million. On April 26, 2006, $349.5 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from a private offering of $355.5 million aggregate principal amount of 11 1/2% senior subordinated notes maturing on October 15, 2015. Subsequently, on May 3, 2006, the remaining $34.1 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from another private offering of $34.0 million aggregate principal amount of 10 1/8% senior notes maturing on October 15, 2013. The senior notes were issued as additional notes under the indenture dated as of October 17, 2005. At December 31, 2006, Affinion had $302.0 million outstanding under the senior notes (net of discounts and premiums), $755 million outstanding under the term loan facility, $350.8 million outstanding under the senior subordinated notes (net of discount), and $98.5 million available under the revolving credit facility (after giving effect to the issuance of $1.5 million of letters of credit). In addition, at December 31, 2006, Affinion had $84.3 million in unrestricted cash on hand (including cash used for the voluntary debt prepayment described below). Voluntary Debt Prepayment On March 22, 2007, Affinion used available cash on hand to prepay on a voluntary basis $25 million principal amount under the term loan facility. This was Affinion's sixth voluntary prepayment. Since October 17, 2005, including this prepayment, Affinion has prepaid $130 million, or approximately 15.1%, of the term loan. Guidance Affinion reaffirmed its full year 2007 adjusted EBITDA to be within the range of $275-$285 million. Call-In Information Affinion will hold an informational call to discuss the results for the year ended December 31, 2006 at 11:00 am. (EDT) on Friday, March 23, 2007. The conference call will be broadcast live and can be accessed by dialing 1-800-259-0251 (domestic) or 1-617-614-3671 (international) and entering passcode 79044977. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com A telephonic replay of the call will be available through midnight March 30, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 41304387. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through more than 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2007 and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Risk Factors" in Affinion's Registration Statement on Form S-4 (file no. 333-133895) declared effective by the Securities and Exchange Commission on August 11, 2006 and the periodic reports filed by Affinion with the SEC from time to time. Purchase accounting adjustments made in the Transactions had a significant impact on the Company's consolidated results of operations in 2006. These entries, which are non-cash in nature, reduced 2006 net revenues by $73.6 million as compared to pro forma 2005 net revenues and reduced 2006 income (loss) from operations by $44.6 million as compared to pro forma 2005 income (loss) from operations. Since deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions have been and will be less than they otherwise would have been. Also, the Company recorded a liability in purchase accounting for the fair value of servicing the Company's members existing at the date of the Transactions for which no revenue will be recognized in the future. Since the liability recorded in purchase accounting will be used to offset future servicing costs for such members, the Company's operating costs have been and will be lower for periods following the Transactions than they otherwise would have been. Also, because prepaid commissions were reduced in purchase accounting, marketing and commissions expense for periods following the Transactions have been and will be less than they otherwise would have been. The effect of these and other purchase accounting adjustments on the Company's historical consolidated results of operations for the year ended December 31, 2006 was to reduce net revenues by $73.6 million as compared to 2005 pro forma net revenues, reduce marketing and commissions expense by $21.9 million as compared to 2005 pro forma marketing and commissions expense, and reduce operating costs expense by $8.0 million as compared to 2005 pro forma operating costs. (a)Segment EBITDA consists of income from operations before depreciation and amortization. Segment EBITDA is the measure management uses to evaluate segment performance and we present segment EBITDA to enhance your understanding of our operating performance. We use Segment EBITDA as one criterion for evaluating our performance relative to that of our peers. We believe that Segment EBITDA is an operating performance measure, and not a liquidity measure, that provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. Adjusted EBITDA is defined as Segment EBITDA further adjusted to exclude non-cash and unusual items and other adjustments permitted in our debt agreements to test the permissibility of certain types of transactions, including debt incurrence. We believe that the inclusion of the adjustments to Segment EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain non-cash items and unusual items. However, Segment EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP, and our Segment EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our Segment EBITDA and Adjusted EBITDA as alternatives to operating or net income determined in accordance with U.S. GAAP, as indicators of our operating performance or as alternatives to cash flows from operating activities determined in accordance with U.S. GAAP, or as indicators of cash flows, or as a measure of liquidity. (b)Effect of the Transactions, reorganizations and non-recurring revenue and gains - eliminates the effects of the Transactions, prior business reorganizations and non-recurring revenue and gains. For the years ended December 31, 2006 and 2005, the amounts primarily relate to the effect of the Transactions. See Table 5 for additional information regarding the effect of the Transactions. (c)Certain legal costs-represents legal costs for certain litigation matters. (d)Net cost savings-represents: (i) the elimination of general corporate overhead allocations from Cendant and historical long-term incentive compensation charges, and certain incremental stand-alone costs, (ii) the inclusion of anticipated cost savings from the 2005 reorganization and (iii) the elimination of costs associated with facilities closure and severance incurred in 2005 and 2006. (e)Other, net-represents: (i) net changes in other reserves in 2005, (ii) changing the Predecessor's historical accounting policy for insurance program marketing costs to our policy of expensing such costs as incurred, (iii) changes in contractual arrangements between us and Cendant as if such contractual terms were in place for all periods presented, (iv) the 2006 goodwill impairment charge related to the goodwill ascribed to the Loyalty business, (v) consulting fees paid to Apollo in 2006 and (vi) the elimination of certain non-recurring costs. (f)The interest coverage ratio is defined in our senior secured credit facility (Adjusted EBITDA, as defined, to interest expense, as defined). The interest coverage ratio must be greater than 1.45 to 1.0 at December 31, 2006. (g)The consolidated leverage ratio is defined in our senior secured credit facility (total debt, as defined, to Adjusted EBITDA, as defined). The consolidated leverage ratio must be less than 7.25 to 1.0 at December 31, 2006. Inverstor Relations 2007-03-23T22:37:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_year_e/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_year_e/#When:22:39:00Z Affinion Group, Inc. will hold an informational call to discuss the results for the year ended December 31, 2006 at 11:00 a.m. (EST) on Friday, March 23, 2007. NORWALK, Connecticut - March 16, 2007 - Affinion Group, Inc. will hold an informational call to discuss the results for the year ended December 31, 2006 at 11:00 a.m. (EST) on Friday, March 23, 2007. The conference call will be broadcast live and can be accessed by dialing 1-800-259-0251 (domestic) or 1-617-614-3671 (international) and entering passcode 79044977. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com. The company plans to issue a news release regarding its financial results after the market closes on March 22, 2007. A telephonic replay of the call will be available through midnight March 30, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 41304387. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on our travel fulfillment business, termination or expiration of one or more agreements with our affinity partners or a reduction of the marketing of our services by one or more of our affinity partners, the outcome of numerous legal actions, our substantial leverage, costs of developing our own stand-alone systems and transitioning to an independent company, restrictions contained in our debt agreements and our inability to compete effectively. Inverstor Relations 2007-03-21T22:39:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_year_e/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_to_hold_informational_call_to_discuss_results_for_year_e/#When:21:15:00Z Affinion Group, Inc. will hold an informational call to discuss the results for the year ended December 31, 2006 at 11:00 a.m. (EST) on Friday, March 23, 2007. NORWALK, Connecticut - March 16, 2007 - Affinion Group, Inc. will hold an informational call to discuss the results for the year ended December 31, 2006 at 11:00 a.m. (EST) on Friday, March 23, 2007. The conference call will be broadcast live and can be accessed by dialing 1-800-259-0251 (domestic) or 1-617-614-3671 (international) and entering passcode 79044977. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com. The company plans to issue a news release regarding its financial results after the market closes on March 22, 2007. A telephonic replay of the call will be available through midnight March 30, 2007 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 41304387. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 5,200 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on our travel fulfillment business, termination or expiration of one or more agreements with our affinity partners or a reduction of the marketing of our services by one or more of our affinity partners, the outcome of numerous legal actions, our substantial leverage, costs of developing our own stand-alone systems and transitioning to an independent company, restrictions contained in our debt agreements and our inability to compete effectively. Inverstor Relations 2007-03-21T21:15:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_pricing_of_its_parents_proposed_term_loan_faci/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_pricing_of_its_parents_proposed_term_loan_faci/#When:17:56:00Z Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced that its parent, Affinion Group Holdings, Inc. ("Holdings" ), has increased the size of and priced its five-year senior unsecured term loan facility (the "Holdings Loan Agreement" ) with Deutsche Bank Trust Company Americas ("Deutsche Bank" ), Bank of America, N.A., and certain other banks as the initial lenders, with Deutsche Bank Securities Inc. and Banc of America Securities LLC ("BAS" ) as the joint lead arrangers and book-running managers, Deutsche Bank as administrative agent, and BAS as syndication agent. NORWALK, Connecticut - Jan. 24, 2007 - Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced that its parent, Affinion Group Holdings, Inc. ("Holdings" ), has increased the size of and priced its five-year senior unsecured term loan facility (the "Holdings Loan Agreement" ) with Deutsche Bank Trust Company Americas ("Deutsche Bank" ), Bank of America, N.A., and certain other banks as the initial lenders, with Deutsche Bank Securities Inc. and Banc of America Securities LLC ("BAS" ) as the joint lead arrangers and book-running managers, Deutsche Bank as administrative agent, and BAS as syndication agent. The principal amount of the Holdings Loan Agreement was increased from the proposed $300 million principal amount to $350 million principal amount. Loans under the Holdings Loan Agreement will initially accrue cash interest at the rate of six month LIBOR plus 6.25%, but the interest rate is subject to additional increases over time and further increases if, in lieu of paying cash interest, the interest is paid by adding such interest to the principal amount of the loans. The closing of the Holdings Loan Agreement is expected to occur on or about January 31, 2007, subject to the satisfaction of certain conditions. Holdings intends to use the proceeds from the Holdings Loan Agreement to redeem approximately $106 million liquidation preference of its preferred stock and to pay a dividend to its stockholders. Affinion and its subsidiaries will not be a party to the Holdings Loan Agreement. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 4,500 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, the entry into the Holdings Loan Agreement and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Risk Factors" in Affinion's Registration Statement on Form S-4 (file no. 333-133895) declared effective by the Securities and Exchange Commission on August 11, 2006. Forward-looking statements speak only as of the date on which they are made. Affinion disclaims any obligation to update publicly its forward-looking statements, whether as a result of new information, future events or otherwise. Inverstor Relations 2007-01-24T17:56:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_confirms_2006_adjusted_ebitda_guidance1/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_confirms_2006_adjusted_ebitda_guidance1/#When:21:42:00Z AFFINION GROUP, INC. CONFIRMS 2006 ADJUSTED EBITDA GUIDANCE, ANNOUNCES 2007 ADJUSTED EBITDA GUIDANCE AND ANNOUNCES ITS PARENT'S PROPOSED $300 MILLION SENIOR UNSECURED TERM LOAN FACILITY Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today confirmed that its 2006 adjusted EBITDA is expected to be within the previously announced range of $260 million to $265 million. In addition, Affinion projects its 2007 adjusted EBITDA to be within the range of $275 million to $285 million. NORWALK, Connecticut - January 19, 2007 - Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today confirmed that its 2006 adjusted EBITDA is expected to be within the previously announced range of $260 million to $265 million. In addition, Affinion projects its 2007 adjusted EBITDA to be within the range of $275 million to $285 million. Affinion also announced today that its parent, Affinion Group Holdings, Inc. ("Holdings" ) intends, subject to certain conditions, to enter into a five-year $300 million aggregate principal amount senior unsecured term loan facility (the "Holdings Loan Agreement" ) with Deutsche Bank Trust Company Americas ("Deutsche Bank" ), Bank of America, N.A., and certain other banks as the initial lenders, with Deutsche Bank Securities Inc. and Banc of America Securities LLC ("BAS" ) as the joint lead arrangers and book-running managers, Deutsche Bank as administrative agent, and BAS as syndication agent. Holdings intends to redeem certain of its preferred stock and to use the net proceeds from the Holdings Loan Agreement to pay a dividend to its stockholders. Affinion and its subsidiaries will not be a party to the Holdings Loan Agreement. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 4,500 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2006 and 2007, the entry into the Holdings Loan Agreement and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Risk Factors" in Affinion's Registration Statement on Form S-4 (file no. 333-133895) declared effective by the Securities and Exchange Commission on August 11, 2006. Forward-looking statements speak only as of the date on which they are made. Affinion disclaims any obligation to update publicly its forward-looking statements, whether as a result of new information, future events or otherwise. Inverstor Relations 2007-01-19T21:42:00-06:00 http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_third_quarter_ended_september/ http://affiniongroupmedia.com/index.php/affinion/display_blog/affinion_group_inc_announces_results_for_the_third_quarter_ended_september/#When:12:54:00Z ADJUSTED EBITDA OF $82.3 MILLION AND MAKES FIFTH VOLUNTARY DEBT PREPAYMENT Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the three and nine month periods ended September 30, 2006. NORWALK, Connecticut - November 13, 2006 - Affinion Group, Inc. ("Affinion" or the "Company" ), a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the three and nine month periods ended September 30, 2006. On October 17, 2005, Affinion Group Holdings, Inc., the parent of Affinion, completed the acquisition (the "Transactions" ) of the marketing services division (the "Predecessor Company" ) of Cendant Corporation ("Cendant" ) pursuant to a purchase agreement dated July 26, 2005, as amended. Substantially all of the assets and liabilities of the Predecessor Company were acquired by Affinion in the Transactions. The information presented below is a comparison of the unaudited consolidated results of operations of Affinion for the three and nine month periods ended September 30, 2006 to the combined results of operations of the Predecessor Company for the three and nine month periods ended September 30, 2005. Purchase accounting adjustments made in 2005 as a result of the Transactions had a significant impact on Affinion's results of operations for the three and nine month periods ended September 30, 2006. For example, because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions were less than they otherwise would have been. The effect of purchase accounting adjustments in Affinion's results of operations for the three and nine month periods ended September 30, 2006 was to reduce net revenues by $50.4 million and $203.7 million, respectively, and to reduce income from operations by $126.0 million and $406.8 million, respectively. Results for the Three and Nine Month Periods Ended September 30, 2006 Net revenues for the three and nine month periods ended September 30, 2006, were $291.4 million and $801.6 million, respectively, compared to $340.7 million and $1,011.9 million, respectively, for the three and nine month periods ended September 30, 2005. The decrease in net revenues was primarily attributable to a decrease of $50.4 million and $203.7 million for the three and nine month periods ended September 30, 2006, respectively, principally due to non-cash reductions in deferred revenue recorded in purchase accounting as part of the Transactions. Income (loss) from operations for the three and nine months periods ended September 30, 2006 was $(61.7) million and $(245.9) million, respectively, compared to $50.2 million and $103.8 million, respectively, for the three and nine month periods ended September 30, 2005. The decrease in income from operations for the three and nine month periods ended September 30, 2006 was primarily due to $126.0 million and $406.8 million of non-cash purchase accounting adjustments, including incremental depreciation and amortization expense of $97.9 million and $288.3 million, respectively. Adjusted EBITDA (as defined by Note (a) of Table 7) for the third quarter of 2006 was $82.3 million compared to $77.9 million for the third quarter of 2005. Select Liquidity Data As part of the financing for the Transactions, Affinion (a) issued $270 million principal amount of 10 1/8% senior notes due 2013 ($266.4 million net of discount), (b) entered into new senior secured credit facilities consisting of a term loan facility in the principal amount of $860 million and a revolving credit facility in an aggregate amount of up to $100 million, and (c) entered into a senior subordinated bridge loan facility in the principal amount of $383.6 million. On April 26, 2006, $349.5 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from a private offering of $355.5 million aggregate principal amount of 11 1/2% senior subordinated notes maturing on October 15, 2015. Subsequently, on May 3, 2006, the remaining $34.1 million of principal borrowings under the senior subordinated bridge loan facility were repaid using the proceeds from another private offering of $34.0 million aggregate principal amount of 10 1/8% senior notes maturing on October 15, 2013. The senior notes were issued as additional notes under the indenture dated as of October 17, 2005. At September 30, 2006, Affinion had $302.0 million outstanding under the senior notes (net of discounts and premiums), $780 million outstanding under the term loan facility, $350.7 million outstanding under the senior subordinated notes (net of discount), and $98.5 million available under the revolving credit facility (after giving effect to the issuance of $1.5 million of letters of credit). In addition, at September 30, 2006, Affinion had $111.3 million in unrestricted cash on hand (including cash used for the voluntary debt prepayment described below). Voluntary Debt Prepayment On November 13, 2006, Affinion used available cash on hand to prepay on a voluntary basis $25 million principal amount under the term loan facility. This was Affinion's fifth voluntary prepayment. Since October 17, 2005, including this prepayment, Affinion has prepaid $105 million, or approximately 12.2%, of the term loan. Guidance Affinion projects its full year adjusted EBITDA to be within the range of $260 million to $265 million. This compares to a pro forma 2005 adjusted EBITDA of $257.2 million. Call-In Information Affinion will hold an informational call to discuss the results for the three month period ended September 30, 2006 at 10:00 am. (EST) on Tuesday, November 14, 2006. The conference call will be broadcast live and can be accessed by dialing 1-866-713-8395 (domestic) or 1-617-597-5309 (international) and entering passcode 91620125. Interested parties should call at least ten (10) minutes prior to the call to register. The company will also provide an on-line Web simulcast of its conference call. The Web simulcast will be available on-line by visiting http://www.affiniongroup.com A telephonic replay of the call will be available through midnight November 21, 2006 by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international) and entering passcode 18739148. About Affinion Affinion is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers, with over 30 years of experience. Affinion currently offers its programs and services worldwide through over 4,500 affinity partners. Affinion's diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion markets to consumers using direct mail, online marketing, in-branch marketing, telemarketing and other marketing methods. Affinion also has a loyalty solutions operation which manages points-based loyalty programs. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2006 and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution affinity partners, industry trends, the effects of a decline in travel on Affinion's travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, the outcome of numerous legal actions, its substantial leverage, costs of developing its own stand-alone systems and transitioning to an independent company, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption "Risk Factors" in Affinion's Registration Statement on Form S-4 (file no. 333-133895) declared effective by the Securities and Exchange Commission on August 11, 2006. Purchase accounting adjustments made in the Transactions had a significant impact on the Company's consolidated results of operations in 2006. These entries, which are non-cash in nature, reduced net revenues by $50.4 million and $203.7 million and income from operations by $126.0 million and $406.8 million for the three and nine month periods ended September 30, 2006, respectively. Because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions will be less than they otherwise would have been. Also, the Company recorded a liability in purchase accounting for the fair value of servicing the Company's members existing at the date of the Transactions for which no revenue will be recognized in the future. Because the liability recorded in purchase accounting will be used to offset future servicing costs for such members, the Company's operating costs will be lower for periods following the Transactions than they otherwise would have been. Similarly, because prepaid commissions were reduced in purchase accounting, marketing and commissions expense for periods following the Transactions will be less than they otherwise would have been. The effect of these and other purchase accounting adjustments on the Company's consolidated results of operations for the three and nine months ended September 30, 2006 was to reduce net revenues by $50.4 million and $203.7 million respectively, marketing and commissions expense by $13.9 million and $53.8 million, respectively, and operating costs expense by $8.0 million and $34.1 million, respectively. Marketing and commissions expense also decreased approximately $2.8 million and $7.4 million, respectively, related to the amortization of capitalized insurance contract rights and list fees whose fair value is now included in other intangibles, net. Amortization of existing insurance contract rights and list fees as of the consummation of the Transactions is reflected as amortization expense for 2006. Additionally, the Company recorded $97.9 million and $288.3 million, respectively, incremental depreciation and amortization expense which negatively affected results of operations. Inverstor Relations 2006-11-13T12:54:00-06:00