Delaware (State or Other Jurisdiction of Incorporation or Organization) | ||
001-35882 | 43-2099257 | |
(Commission File Number) | (I.R.S. Employer Identification No.) | |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 |
BLACKHAWK NETWORK HOLDINGS, INC. | |||||
Date: February 27, 2018 | By: | /s/ Charles O. Garner | |||
Name: | Charles O. Garner | ||||
Title: | Chief Financial Officer | ||||
(Principal Financial Officer and Duly Authorized Signatory) |
Exhibit No. | Description | |
99.1 |
GAAP Results | Q4'17 | Q4'16 | FY'17 | FY'16 | |||||||||
$ in millions except per share amounts | |||||||||||||
Operating Revenues | $942.0 | $780.6 | $2,231.6 | $1,899.8 | |||||||||
Net Income (Loss) | ($128.2 | ) | $24.7 | ($155.8 | ) | $4.7 | |||||||
Diluted Earnings (Loss) per Share | ($2.28 | ) | $0.43 | ($2.77 | ) | $0.08 |
Non-GAAP Results | Q4'17 | Q4'16 | FY'17 | FY'16 | |
$ in millions except per share amounts | |||||
Adjusted Operating Revenues | $423.2 | $352.0 | $1,079.7 | $889.3 | |
Adjusted EBITDA | $143.9 | $107.3 | $224.9 | $189.2 | |
Adjusted Net Income | $76.5 | $57.1 | $94.9 | $82.0 | |
Adjusted Diluted Earnings per Share | $1.32 | $1.00 | $1.64 | $1.43 |
• | Operating revenues totaled $942.0 million, an increase of $161.4 million from $780.6 million for the quarter ended December 31, 2016. This increase was due to a 23% increase in operating revenues from the U.S. Retail segment driven by the addition of Target as a distribution partner and the acquisition of CashStar; a 17% increase in operating revenues from the international segment which includes the acquisition of Grass Roots in late 2016; and an 18% increase in operating revenues from the incentives and rewards segment primarily due to growth in Achievers and the loyalty business. |
• | Net loss totaled $128.2 million compared to net income of $24.7 million for the quarter ended December 31, 2016. The decline was driven primarily by a $125.1 million non-cash write-down of the Company's deferred tax asset resulting from tax reform and a $68.5 million non-cash goodwill impairment charge related to the Incentives and Cardpool businesses, partially offset by top line growth in each of the Company's three operating segments. |
• | Loss per diluted share was $2.28 compared to earnings per diluted share of $0.43 for the quarter ended December 31, 2016. Diluted shares outstanding decreased 1.5% to 56.1 million following the Company's 1.2 million share repurchase in October 2017. |
• | Adjusted operating revenues totaled $423.2 million, an increase of 20% from $352.0 million for the quarter ended December 31, 2016. The increase was driven by growth in all three of the Company's operating segments as described in the GAAP financial results section above. |
• | Adjusted EBITDA totaled $143.9 million, an increase of 34% from $107.3 million for the quarter ended December 31, 2016. |
• | Adjusted net income totaled $76.5 million, an increase of 34% from $57.1 million for the quarter ended December 31, 2016. |
• | Adjusted diluted EPS was $1.32, an increase of 32% from $1.00 for the quarter ended December 31, 2016. |
• | Adjusting operating revenues for distribution commissions paid and other compensation to retail distribution partners and business clients is useful to understanding the Company's operating margin; |
• | Adjusting operating revenues for marketing revenue and other pass-through revenues, which has offsetting expense, is useful for understanding the Company's operating margin; |
• | EBITDA and Adjusted EBITDA are widely used by investors and securities analysts to measure a company’s operating performance without regard to items that can vary substantially from company to company and from period to period depending upon their financing, accounting and tax methods, the book value of their assets, their capital structures and the method by which their assets were acquired; |
• | Adjusted EBITDA margin provides a measure of operating efficiency based on Adjusted operating revenues and without regard to items that can vary substantially from company to company and from period to period depending upon their financing, accounting and tax methods, the book value of their assets, their capital structures and the method by which their assets were acquired; |
• | in a business combination, a company records an adjustment to reduce the carrying values of deferred revenue and deferred expenses to their fair values and reduces the company’s revenues and expenses from what it would have recorded otherwise, and as such the Company does not believe is indicative of its core operating performance; |
• | non-cash equity grants made to employees and distribution partners at a certain price and point in time do not necessarily reflect how the Company's business is performing at any particular time and the related expenses are not key measures of the Company's core operating performance; |
• | the net gain on the transaction to transition our program-managed GPR business to another program manager, the gain on the sale of our member interest in Visa Europe, legal and accounting costs incurred in conjunction with the sale of Grass Roots Meetings and Events and other non-recurring gains / (losses) related to our acquisitions is not reflective of our core operating performance; |
• | asset impairment charges related to the write-down of technology assets as part of our post-acquisition integration efforts are not key measures of the Company's core operating performance; |
• | non-cash goodwill impairment charges related to our Cardpool and BES businesses is not an indicator of the Company's core operating performance; |
• | intangible asset amortization expenses can vary substantially from company to company and from period to period depending upon the applicable financing and accounting methods, the fair value and average expected life of the |
• | non-cash fair value adjustments to contingent business acquisition liability do not directly reflect how the Company is performing at any particular time and the related expense adjustment amounts are not key measures of the Company's core operating performance; |
• | reduction in income taxes payable from the step-up in tax basis of our assets resulting from the Section 336(e) election due to our Spin-Off and the Safeway Merger and reduction in income taxes payable from amortization of goodwill and other intangibles or utilization of net operating loss carryforwards from business acquisitions represent significant tax savings that are useful for understanding the Company's overall operating results; and |
• | reduction in income taxes payable resulting from the tax deductibility of stock-based compensation is useful for understanding the Company's overall operating results. The Company generally realizes these tax deductions when restricted stock vest, an option is exercised, and, in the case of warrants, after the warrant is exercised but amortized over remaining service period, and such timing differs from the GAAP treatment of expense recognition |
INVESTORS/ANALYSTS: |
Patrick Cronin |
(925) 226-9939 |
patrick.cronin@bhnetwork.com |
BLACKHAWK NETWORK HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
16 Weeks Ended | 16 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
OPERATING REVENUES: | |||||||||||||||
Commissions and fees | $ | 661,291 | $ | 565,062 | $ | 1,468,867 | $ | 1,315,755 | |||||||
Program and other fees | 173,468 | 128,599 | 477,884 | 336,317 | |||||||||||
Marketing | 49,387 | 42,200 | 102,841 | 94,298 | |||||||||||
Product sales | 57,819 | 44,689 | 182,014 | 153,408 | |||||||||||
Total operating revenues | 941,965 | 780,550 | 2,231,606 | 1,899,778 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Partner distribution expense | 462,672 | 391,393 | 1,040,306 | 933,142 | |||||||||||
Processing and services | 144,828 | 128,634 | 448,657 | 355,268 | |||||||||||
Sales and marketing | 130,765 | 108,623 | 329,983 | 274,799 | |||||||||||
Costs of products sold | 52,611 | 40,104 | 170,493 | 143,267 | |||||||||||
General and administrative | 34,911 | 31,601 | 113,621 | 99,428 | |||||||||||
Transition and acquisition | 5,776 | 7,305 | 7,797 | 11,465 | |||||||||||
Amortization of acquisition intangibles | 22,217 | 21,527 | 62,794 | 57,060 | |||||||||||
Change in fair value of contingent consideration | (9,840 | ) | — | (14,937 | ) | 2,100 | |||||||||
Goodwill impairment | 68,500 | — | 77,500 | — | |||||||||||
Total operating expenses | 912,440 | 729,187 | 2,236,214 | 1,876,529 | |||||||||||
OPERATING INCOME (LOSS) | 29,525 | 51,363 | (4,608 | ) | 23,249 | ||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest income and other income (expense), net | (2,524 | ) | (3,707 | ) | (390 | ) | (449 | ) | |||||||
Interest expense | (10,724 | ) | (7,996 | ) | (32,092 | ) | (21,864 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) | 16,277 | 39,660 | (37,090 | ) | 936 | ||||||||||
INCOME TAX EXPENSE (BENEFIT) | 144,024 | 14,782 | 117,800 | (4,102 | ) | ||||||||||
NET INCOME (LOSS) BEFORE ALLOCATION TO NON-CONTROLLING INTERESTS | (127,747 | ) | 24,878 | (154,890 | ) | 5,038 | |||||||||
Income attributable to non-controlling interests, net of tax | (418 | ) | (228 | ) | (878 | ) | (380 | ) | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO BLACKHAWK NETWORK HOLDINGS, INC. | $ | (128,165 | ) | $ | 24,650 | $ | (155,768 | ) | $ | 4,658 | |||||
EARNINGS (LOSS) PER SHARE: | |||||||||||||||
Basic | $ | (2.28 | ) | $ | 0.44 | $ | (2.77 | ) | $ | 0.08 | |||||
Diluted | $ | (2.28 | ) | $ | 0.43 | $ | (2.77 | ) | $ | 0.08 | |||||
Weighted average shares outstanding—basic | 56,126 | 55,474 | 56,287 | 55,734 | |||||||||||
Weighted average shares outstanding—diluted | 56,126 | 56,966 | 56,287 | 57,260 |
BLACKHAWK NETWORK HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
Year-end 2017 | Year-end 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,096,195 | $ | 1,008,125 | |||
Restricted cash | 135,345 | 10,793 | |||||
Settlement receivables, net | 1,038,347 | 641,691 | |||||
Accounts receivable, net | 184,994 | 262,672 | |||||
Other current assets | 165,374 | 131,375 | |||||
Total current assets | 2,620,255 | 2,054,656 | |||||
Property, equipment and technology, net | 172,607 | 172,381 | |||||
Intangible assets, net | 431,681 | 350,185 | |||||
Goodwill | 563,405 | 570,398 | |||||
Deferred income taxes | 236,496 | 362,302 | |||||
Other assets | 115,236 | 85,856 | |||||
TOTAL ASSETS | $ | 4,139,680 | $ | 3,595,778 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Settlement payables | $ | 2,074,673 | $ | 1,626,827 | |||
Consumer and customer deposits | 252,822 | 173,344 | |||||
Accounts payable and accrued operating expenses | 156,182 | 153,885 | |||||
Deferred revenue | 179,684 | 150,582 | |||||
Note payable, current portion | 10,662 | 9,856 | |||||
Notes payable to Safeway | 3,941 | 3,163 | |||||
Other current liabilities | 102,823 | 51,176 | |||||
Total current liabilities | 2,780,787 | 2,168,833 | |||||
Deferred income taxes | 28,083 | 27,887 | |||||
Note payable | 202,441 | 137,984 | |||||
Convertible notes payable | 441,655 | 429,026 | |||||
Other liabilities | 16,747 | 39,653 | |||||
Total liabilities | 3,469,713 | 2,803,383 | |||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 56 | 56 | |||||
Additional paid-in capital | 649,546 | 608,568 | |||||
Treasury stock | (40,023 | ) | — | ||||
Accumulated other comprehensive loss | (16,049 | ) | (48,877 | ) | |||
Retained earnings | 72,571 | 228,451 | |||||
Total Blackhawk Network Holdings, Inc. equity | 666,101 | 788,198 | |||||
Non-controlling interests | 3,866 | 4,197 | |||||
Total stockholders’ equity | 669,967 | 792,395 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,139,680 | $ | 3,595,778 |
BLACKHAWK NETWORK HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
52 Weeks Ended | 52 Weeks Ended | ||||||
December 30, 2017 | December 31, 2016 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income (loss) before allocation to non-controlling interests | $ | (154,890 | ) | $ | 5,038 | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Depreciation and amortization of property, equipment and technology | 55,419 | 48,379 | |||||
Goodwill impairment | 77,500 | — | |||||
Amortization of intangibles | 67,912 | 62,045 | |||||
Amortization of deferred program and contract costs | 30,584 | 29,015 | |||||
Amortization of deferred financing costs and debt discount | 13,837 | 6,506 | |||||
Employee stock-based compensation expense | 32,708 | 32,592 | |||||
Change in fair value of contingent consideration | (14,937 | ) | 2,100 | ||||
Loss on property, equipment and technology disposal / write-down | 6,802 | 9,838 | |||||
Deferred income taxes | 110,276 | (8,899 | ) | ||||
Other | (1,805 | ) | 5,093 | ||||
Changes in operating assets and liabilities: | |||||||
Settlement receivables | (350,138 | ) | 6,076 | ||||
Settlement payables | 411,248 | 19,907 | |||||
Accounts receivable, current and long-term | 44,857 | (13,012 | ) | ||||
Other current assets | (14,914 | ) | (13,891 | ) | |||
Other assets | (40,490 | ) | (24,690 | ) | |||
Restricted cash related to operating activities | (56,279 | ) | — | ||||
Consumer and customer deposits | 46,931 | 13,772 | |||||
Accounts payable and accrued operating expenses | 8,703 | (14,835 | ) | ||||
Deferred revenue | 31,458 | 33,362 | |||||
Other current and long-term liabilities | 35,422 | (21,707 | ) | ||||
Income taxes, net | 5,297 | 8,542 | |||||
Net cash provided by operating activities | 345,501 | 185,231 | |||||
INVESTING ACTIVITIES: | |||||||
Expenditures for property, equipment and technology | (64,599 | ) | (52,332 | ) | |||
Business acquisitions, net of cash acquired | (168,995 | ) | (220,605 | ) | |||
Proceeds from divestiture of business, net of cash sold | 13,779 | — | |||||
Investments in unconsolidated entities | (6,201 | ) | (10,541 | ) | |||
Change in restricted cash | (59,838 | ) | (7,691 | ) | |||
Other | (3,244 | ) | 1,408 | ||||
Net cash used in investing activities | (289,098 | ) | (289,761 | ) | |||
Continued on next page |
BLACKHAWK NETWORK HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
52 Weeks Ended | 52 Weeks Ended | ||||||
December 30, 2017 | December 31, 2016 | ||||||
FINANCING ACTIVITIES: | |||||||
Payments for acquisition liability | (5,503 | ) | — | ||||
Proceeds from issuance of note payable | 75,000 | 250,000 | |||||
Repayment of note payable | (10,000 | ) | (463,750 | ) | |||
Payments of financing costs | (1,025 | ) | (16,544 | ) | |||
Borrowings under revolving bank line of credit | 3,011,270 | 2,985,490 | |||||
Repayments on revolving bank line of credit | (3,011,270 | ) | (2,985,490 | ) | |||
Repayments on notes payable to Safeway | (253 | ) | (890 | ) | |||
Repayment of debt assumed in business acquisitions | (8,585 | ) | (8,964 | ) | |||
Proceeds from convertible debt | — | 500,000 | |||||
Payments for note hedges | — | (75,750 | ) | ||||
Proceeds from warrants | — | 47,000 | |||||
Proceeds from issuance of common stock from exercise of employee stock options and employee stock purchase plans | 16,782 | 10,302 | |||||
Other stock-based compensation related | (10,551 | ) | (2,284 | ) | |||
Repurchase of common stock | (40,023 | ) | (34,843 | ) | |||
Other | (343 | ) | (156 | ) | |||
Net cash provided by financing activities | 15,499 | 204,121 | |||||
Effect of exchange rate changes on cash and cash equivalents | 16,168 | (6,042 | ) | ||||
Increase in cash and cash equivalents | 88,070 | 93,549 | |||||
Cash and cash equivalents—beginning of year | 1,008,125 | 914,576 | |||||
Cash and cash equivalents—end of year | $ | 1,096,195 | $ | 1,008,125 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Cash payments during the year for: | |||||||
Interest paid (net of amounts capitalized) | $ | 18,008 | $ | 12,756 | |||
Income taxes paid (refunds received) | $ | 2,587 | $ | (2,854 | ) | ||
Spin-Off income taxes paid (refunds received) funded by (remitted to) Safeway | $ | (253 | ) | $ | (890 | ) | |
Noncash investing and financing activities: | |||||||
Financing of business acquisition with contingent consideration | $ | 1,640 | $ | 21,652 | |||
Forgiveness of notes receivable and accrued interest as part of business acquisition and divestiture | $ | 973 | $ | 5,445 | |||
Intangible assets recognized for the issuance of fully vested warrants | $ | 20,000 | $ | — | |||
Conversion of income tax payable and deferred taxes to (from) additional paid-in capital | $ | (91 | ) | $ | — |
TABLE 1: OTHER OPERATIONAL DATA | |||||||||||||||
16 Weeks Ended | 16 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
Transaction dollar volume | $ | 8,614,618 | $ | 6,947,031 | $ | 19,397,056 | $ | 16,717,834 | |||||||
Prepaid and processing revenues | $ | 834,759 | $ | 693,661 | $ | 1,946,751 | $ | 1,652,072 | |||||||
Prepaid and processing revenues as a % of transaction dollar volume | 9.7 | % | 10 | % | 10 | % | 9.9 | % | |||||||
Partner distribution expense as a % of prepaid and processing revenues | 55.4 | % | 56.4 | % | 53.4 | % | 56.5 | % |
TABLE 2: RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
16 Weeks Ended | 16 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
Prepaid and processing revenues: | |||||||||||||||
Commissions and fees | $ | 661,291 | $ | 565,062 | $ | 1,468,867 | $ | 1,315,755 | |||||||
Program and other fees | 173,468 | 128,599 | 477,884 | 336,317 | |||||||||||
Total prepaid and processing revenues | $ | 834,759 | $ | 693,661 | $ | 1,946,751 | $ | 1,652,072 | |||||||
Adjusted operating revenues: | |||||||||||||||
Total operating revenues | $ | 941,965 | $ | 780,550 | $ | 2,231,606 | $ | 1,899,778 | |||||||
Revenue adjustments from purchase accounting | 1,104 | 5,055 | 5,558 | 16,930 | |||||||||||
Marketing and other pass-through revenues | (57,220 | ) | (42,200 | ) | (117,189 | ) | (94,298 | ) | |||||||
Partner distribution expense | (462,672 | ) | (391,393 | ) | (1,040,306 | ) | (933,142 | ) | |||||||
Adjusted operating revenues | $ | 423,177 | $ | 352,012 | $ | 1,079,669 | $ | 889,268 | |||||||
Adjusted EBITDA: | |||||||||||||||
Net income (loss) before allocation to non-controlling interests | $ | (127,747 | ) | $ | 24,878 | $ | (154,890 | ) | $ | 5,038 | |||||
Interest and other (income) expense, net | 2,524 | 3,707 | 390 | 449 | |||||||||||
Interest expense | 10,724 | 7,996 | 32,092 | 21,864 | |||||||||||
Income tax expense (benefit) | 144,024 | 14,782 | 117,800 | (4,102 | ) | ||||||||||
Depreciation and amortization | 41,397 | 38,340 | 123,331 | 110,424 | |||||||||||
EBITDA | 70,922 | 89,703 | 118,723 | 133,673 | |||||||||||
Adjustments to EBITDA: | |||||||||||||||
Employee stock-based compensation | 8,148 | 7,727 | 32,708 | 32,592 | |||||||||||
Acquisition-related employee compensation expense | (110 | ) | (155 | ) | 438 | 465 | |||||||||
Goodwill impairment | 68,500 | — | 77,500 | — | |||||||||||
Revenue adjustments from purchase accounting, net | 1,048 | 4,510 | 5,257 | 15,624 | |||||||||||
Other (gain)/losses, net | 5,189 | 5,500 | 5,189 | 4,746 | |||||||||||
Change in fair value of contingent consideration | (9,840 | ) | — | (14,937 | ) | 2,100 | |||||||||
Adjusted EBITDA | $ | 143,857 | $ | 107,285 | $ | 224,878 | $ | 189,200 | |||||||
Adjusted EBITDA margin: | |||||||||||||||
Total operating revenues | $ | 941,965 | $ | 780,550 | $ | 2,231,606 | $ | 1,899,778 | |||||||
Operating income (loss) | 29,525 | 51,363 | (4,608 | ) | 23,249 | ||||||||||
Operating margin | 3.1 | % | 6.6 | % | (0.2 | )% | 1.2 | % | |||||||
Adjusted operating revenues | $ | 423,177 | $ | 352,012 | $ | 1,079,669 | $ | 889,268 | |||||||
Adjusted EBITDA | 143,857 | 107,285 | 224,878 | 189,200 | |||||||||||
Adjusted EBITDA margin | 34.0 | % | 30.5 | % | 20.8 | % | 21.3 | % | |||||||
Adjusted net income: | |||||||||||||||
Income (loss) before income tax expense | $ | 16,277 | $ | 39,660 | $ | (37,090 | ) | $ | 936 | ||||||
Employee stock-based compensation expense | 8,148 | 7,727 | 32,708 | 32,592 | |||||||||||
Acquisition-related employee compensation expense | (110 | ) | (155 | ) | 438 | 465 | |||||||||
Goodwill impairment | 68,500 | — | 77,500 | — | |||||||||||
Revenue adjustments from purchase accounting, net | 1,048 | 4,510 | 5,257 | 15,624 | |||||||||||
Other (gains)/losses, net | 6,025 | 7,875 | 6,025 | 5,177 | |||||||||||
Change in fair value of contingent consideration | (9,840 | ) | — | (14,937 | ) | 2,100 | |||||||||
Amortization of intangibles | 23,496 | 23,057 | 67,912 | 62,045 | |||||||||||
Adjusted income before income tax expense | 113,544 | 82,674 | 137,813 | 118,939 | |||||||||||
Income tax expense (benefit) | 144,024 | 14,782 | 117,800 | (4,102 | ) | ||||||||||
Tax expense (benefit) on adjustments | (107,424 | ) | 10,586 | (75,726 | ) | 40,691 | |||||||||
Adjusted income tax expense | 36,600 | 25,368 | 42,074 | 36,589 | |||||||||||
Adjusted net income before allocation to non-controlling interests | 76,944 | 57,306 | 95,739 | 82,350 | |||||||||||
Net loss (income) attributable to non-controlling interests, net of tax | (418 | ) | (228 | ) | (878 | ) | (380 | ) | |||||||
Adjusted net income attributable to Blackhawk Network Holdings, Inc. | $ | 76,526 | $ | 57,078 | $ | 94,861 | $ | 81,970 |
TABLE 2: RECONCILIATION OF NON-GAAP MEASURES (continued) | |||||||||||||||
16 Weeks Ended | 16 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
Adjusted diluted earnings per share: | |||||||||||||||
Net income (loss) attributable to Blackhawk Network Holdings, Inc. | $ | (128,165 | ) | $ | 24,650 | $ | (155,768 | ) | $ | 4,658 | |||||
Distributed and undistributed earnings allocated to participating securities | — | (13 | ) | — | (28 | ) | |||||||||
Net income (loss) available for common shareholders | $ | (128,165 | ) | $ | 24,637 | $ | (155,768 | ) | $ | 4,630 | |||||
Diluted weighted average shares outstanding | 56,126 | 56,966 | 56,287 | 57,260 | |||||||||||
Diluted earnings (loss) per share | $ | (2.28 | ) | $ | 0.43 | $ | (2.77 | ) | $ | 0.08 | |||||
Adjusted net income attributable to Blackhawk Network Holdings, Inc. | $ | 76,526 | $ | 57,078 | $ | 94,861 | $ | 81,970 | |||||||
Adjusted distributed and undistributed earnings allocated to participating securities | — | (51 | ) | — | (108 | ) | |||||||||
Adjusted net income available for common shareholders | $ | 76,526 | $ | 57,027 | $ | 94,861 | $ | 81,862 | |||||||
Diluted weighted average shares outstanding | 56,126 | 56,966 | 56,287 | 57,260 | |||||||||||
Increase in common share equivalents | 1,656 | — | 1,707 | — | |||||||||||
Adjusted diluted weighted average shares outstanding | 57,782 | 56,966 | 57,994 | 57,260 | |||||||||||
Adjusted diluted earnings per share | $ | 1.32 | $ | 1.00 | $ | 1.64 | $ | 1.43 | |||||||
Reduction in income taxes payable: | |||||||||||||||
Reduction in income taxes payable resulting from amortization of spin-off tax basis step-up | 9,547 | 9,424 | 29,338 | 29,191 | |||||||||||
Reduction in cash taxes payable from amortization of acquisition intangibles and utilization of acquired NOLs | 15,705 | 1,301 | 22,110 | 13,907 | |||||||||||
Reduction in cash taxes payable from deductible stock-based compensation and convertible debt | 3,683 | 3,793 | 20,619 | 15,196 | |||||||||||
Reduction in income taxes payable | $ | 28,935 | $ | 14,518 | $ | 72,067 | $ | 58,294 | |||||||
Adjusted diluted weighted average shares outstanding | 57,782 | 56,966 | 57,994 | 57,260 | |||||||||||
Reduction in income taxes payable per share | $ | 0.50 | $ | 0.25 | $ | 1.24 | $ | 1.02 |