Good morning, and welcome to the Alliance Data Second Quarter 2014 Earnings Conference Call. At this time, all parties have been placed on a listen-only mode. Following today’s presentation, the floor will be opened for your questions. (Operator Instructions) In order to view the company’s presentation on their website, please remember to turn off the pop-up blocker on your computer. It is now my pleasure to introduce your host, Ms. Julie Prozeller of FTI Consulting. Ma’am, the floor is yours.

Thank you, operator. By now, you should have received a copy of the company’s second quarter 2014 earnings release. If you haven’t, please call FTI Consulting at 212-850-5721. On the call today, we have Ed Heffernan, President and Chief Executive Officer and Charles Horn, Chief Financial Officer of Alliance Data; and Bryan Kennedy, Executive Vice President and President of Epsilon and Alliance Data Company. Before we begin, let me remind you that some of the comments made on today’s call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and the uncertainties described in the company’s earnings release and other filings with the SEC. Alliance Data has no obligation to update the information presented on the call. Also on today’s call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. Reconciliation of those measures to GAAP will be posted on the Investor Relations website at www.alliancedata.com. With that, I’d like to turn the call over to Ed Heffernan. Ed?

Great. Thanks, Julie and good morning everyone. Joining me today is our always colourful CFO Charles Horn and Bryan Kennedy, our President of Epsilon. Charles is going to go first and talk about our operating results; Bryan will talk about Epsilon and in particular, the results of our new product Harmony and then I will wrap up with a discussion of our raised guidance and outlook for 2014 and how we see our jump-off for ’15. So Charles, take it away.

Thanks, Ed. During the first quarter earnings call, we discussed an expectation of growth acceleration as 2014 progressed. During the second quarter, we delivered on that expectation with over 20% growth in both revenue and core EPS. That is the trend we were talking about and that is the trend we expect to see continue during the remainder of 2014. For the second quarter of 2014 revenue increased 23% to $1.27 billion driven by double-digit organic growth and strong contribution from BrandLoyalty, which added 13% to revenue growth. Adjusted EBITDA, net increased 8% to $332 million with solid expense leveraging in both Epsilon and Private Label. However the growth rate was dampened our reserve build to Private Label due to the significant increase in credit card receivables. The related provision expense increased $39 million or 67% from the second quarter of 2013 despite a 20 basis point improvement in principal loss rates. EPS and core EPS increased 28% and 20% respectively, aided by an 8% decrease in diluted shares outstanding which dropped with the maturity of the convertible notes in May. There were still 2.7 million phantom shares in the diluted share count for the second quarter due to the average calculation. Starting in the third quarter, that impact will be gone and the diluted share count should be about 60 million shares. Let’s flip over to the next page and talk about LoyaltyOne. LoyaltyOne’s revenue increased 62% to $356 million for the second quarter of 2014, driven primarily by BrandLoyalty, which added $136 million to the top line. AIR MILES business continues to be hampered by weak Canadian currency which reduced its revenue by $14 million compared to the second quarter of 2013. On a constant currency basis, AIR MILES had a robust second quarter with revenue up 6%…

Okay. Thanks, Charles. For Epsilon, revenue increased 8% to $357 million for the second quarter of 2014, which is really driven by growth in our technology offerings. Technology revenue increased a very robust 14% year-over-year, which was really primarily due to the conversion of a number of earlier pipeline wins that rolled into revenue and began to contribute. Importantly, Harmony also made a nice contribution with email volumes up double-digit for the second quarter of 2014 which compares to a double-digit decrease last year for the same quarter. The success of the launch of Harmony has really effectively carved attrition. As Harmony’s cloud-based micro segment and multichannel market capabilities are beginning to get a great traction in the market. Reception has been extremely strong, and we’re pleased that with such I a short time in the market, Harmony can make such a nice impact on the results with our email volumes for the quarter. Looking forward we expect continued growth of Harmony in the back half of the year as we’ve got about a dozen clients on board today and a dozen that are actively in the process and a very nice pipeline ahead of us. So a tremendous progress on the harmony front. Turning to the agency. Revenue slowed just a bit during the second quarter of 2014, up 6% versus last year compared to a first quarter increase of 9% versus last year. We expect the on-boarding of new clients, including the announced relationship with FordDirect will aid the agency’s growth rates as the year progresses. Lastly, our data offering fell back just a bit during the second quarter, after a nice strong first quarter where data revenue increased 5% compared to the prior year. It dropped about 2% in the second quarter of 2014, which was due…

Thanks, Bryan. Private Label's revenue increased 16% to $557 million for the second quarter of 2014, representing the 10th consecutive quarter in double-digit revenue growth. Revenue growth was driven by a 17% increase in average card receivables, the majority of which was organic. Adjusted EBITDA, net increased 5% to $210 million for the second quarter of 2014. As expected, we saw operating expense leveraging during the second quarter. While revenue increased 16%, operating expenses increased a lesser 15% compared to the second quarter of 2013. This leveraging reversed the trend whereby expenses were growing at faster rate than revenue due to the need to add infrastructure and advance a substantial receivable growth expected in the back of 2014. We beefed-up [ph] staffing levels largely already in place, we expect continued expense leveraging as 2014 progresses. Conversely, the provision for loan loss expense increased 39 million or 67% compared to the second quarter of 2013. This increase is driven by receivables growth, not deteriorating credit quality. As you can see on the next page, credit quality actually improved during the second quarter of 2014. The bottom line is as long as card receivables are in high growth mode, the provision for loan loss expense will lead revenue growth, just have a dampening effect to adjusted EBITDA net. Turning to funding costs. We continued to see improvements as we replaced maturing tranches of debt with new less expensive funding. Our funding rate for the second quarter of 2014 was 1.5%, 30 basis points better than last year. Let’s go to the next page and look at some of the stats for Private Label. Total gross yields for the quarter compressed 30 basis points compared to the prior year as new programs continued to affect yields. We would expect some continued compression throughout…

Great, thanks, Charles. Thanks Bryan. I think if we could move to the page on 2014 updated guidance, I will give you a little color on where we’re seeing things. Obviously Q2 I think across-the-board came in a bit better than we had anticipated, which is good news. I think the quality of [inaudible] the earnings is very strong. Specifically you know you're dealing with a reserve build which is an expense in Q2 of this year where last year we actually had a reserve release. So not only were the results from a growth perspective very strong but it was against the tough comp from that perspective, also against a tough Canadian dollar comp as well. So overall I think very, very high quality earnings results and better across-the-board from what we had anticipated. So that gives us comfort as we move through the rest of the year. I know there were some rumblings or concerns when we posted Q1 and gave guidance for the rest of the year. Three months ago that it looked like there was some spec [ph] there, there was some risk in the back half, hopefully folks now see that things are going out quite nicely and in fact, things have moved up a bit and we’re seeing better results earlier than we had anticipated. So we feel very good about the year. I think it's comfortable that we've moved the guidance from its original 12.20 to 12.25 to now 12.35 a share which will give us a topline growth of 23% and core EPS growth of 23% as well. That also reflects a hit of roughly $0.17 from the Canadian dollar. So overall 20.20 is what we’re looking for. Within that you'll see the little note on the side of plus 9% organic,…

(Operator Instructions) Your first question comes from the line of Sanjay Sakhrani with KBW.

Thank you for all the numbers -- the color on the numbers. I guess stepping back and thinking about next year and I know you guys saved that for the next call. It seems to me like the EPS growth rate we’re seeing this year as very achievable if not beatable as we look out. Is that a fair statement? And I guess secondly, just thinking about free cash, you guys have repurchased I think $200 million worth of stock and there is still fair amount of free cash that’s been generated or will be generated throughout the year, how should we think about that excess over the remainder of the year?

Well, you know we want people to show up for the Q3 call, Sanjay. So I probably won't go too far out on a limb for the earnings growth rate. But I think clearly people can see the trends, we would expect ‘15 to be a strong year and just bear with us until we get to Q3,when we give official guidance in terms of free cash flow. Charles?

You can see we’ve been fairly active this year, Sanjay, again with the buyback program of about $200 million, with the BrandLoyalty 60% acquisition of about 300 million. I think you'll see us continue to support the buyback program as necessary over the course of the year. Obviously we are more active when we have pull back in our share price, which allows us to continue to look for acquisition opportunities whether it be aboard in Europe, something to flush out the Epsilon model little bit further. or even in the US I think some opportunities are coming to our attention that could make sense. But you know what, we like to deploy our free cash flow, we will find a way to do so during the course of the year. And so just expect us to continue to look at our main competencies which is buyback, M&A we will have a little bit of cash to support the growth of Private Label from a regulatory standpoint, and those would be the three usage.

I guess – there is a question on Harmony -- on Epsilon, in terms of Harmony, could you just talk about how much of a contribution you're expecting from the remainder of the year from the rollout and then how beneficial it could be next year?

Sure, Sanjay. I think as we grow through the back half of the year it’s obviously going to ramp. So if you think about Q2 Harmony contributed in the low single digits in terms of volume that we would push out the door by the time we get to the end of the year. That should be into the double-digit range and then as we roll into ‘15 you’d see I think better than 50% of our volume next year would come from Harmony and I think the natural follow-on question to that would be how much of that is clients that you're converting from old platform to new platform, how much of that is new clients? And the interesting thing that we’re seeing right now is the majority of the Harmony activity is coming from new clients, and that's a bit because our existing clients have been, just as Ed said until they saw us in production and in market [inaudible] excited about what Harmony brings to the cable but they have been slower to come versus new clients. So we should see some nice acceleration as we move out of this year and into next year as they jump on board.

Your next question comes from the line of Darrin Peller with Barclays. Darrin Peller – Barclays: Well, just to be clear, I mean the ramp up through the year into the fourth quarter, you did a good job I think laying out but really BrandLoyalty is the majority of that. But it also seems like I mean Ford is rolling out in a big way, Harmony as you mentioned multiple times it’s rolling up in a big way. So what kind of organic growth should we be looking at from an Epsilon standpoint? When you think about -- right now it’s growing, you’re saying high single digits but when we factor in Ford and Harmony, I mean for next year and the exit run rate we’re going to see in fourth quarter, is that the right way to look at this business to the growth rhythm? And secondly to that, just a little more on Harmony, just one [ph], I mean I think the overall opportunity for new clients, can you – Bryan, just give us a little more color on what this actually means for the business after the expenses you built out, what kind of is actually good for growth?

Darrin, I will take the first one. You do have a valid premise, for Q4 you could see low double-digit organic revenue growth as some of the ramp comes through that you talked about, going into ’15 we will keep it pretty conservative high single-digit organic revenue growth, that’s kind of the target we have for Epsilon. If you think about data enabled market in the US growing 6% to 7% which is the bulk of Epsilon, digital growing 20% per year which is a piece of Epsilon, that gets you more to the high single-digit number run rate number and that’s what we will look for in ’15.

Yes, I think just to chime in on that, Darrin, we've had a bit of an ankle wave that we’ve been dragging around for the last couple of years in terms of our existing email business, which has been healthy but not contributing to the growth. So – and I think of the Epsilon offering to the portfolio and they are going to cycle which is the point Ed made earlier. We've had one major engine which is the email engine which hasn’t really been contributing. Now you’ve got something back in the portfolio that has nice growth ahead of it, which kind of insulates us against risk as some of the other offerings will bounce around in terms of their growth rate. So what that can do long-term obviously we’re going to push hard and heavy. But I think more broadly if you think about Harmony, it's less about what can that one offering do for us from a revenue perspective and for us it’s more about how it becomes a part of these large enterprise relationships that we’re pushing for, which cover multiple channels, multiple offerings, which are on everything from data to database to our strategy and analytics and creative and then distribution. And in this case distribution is email. And so we see it as a good cross-sell, up-sell engine that should help to reinforce some of those enterprise relationships.

Yeah, the final piece I’d throw in there is – look, we've had a heck of a good run on the agency side with the auto vertical, huge wins, lots of big new auto platforms being built and with new car sales ripping along in the US the last few years, all helpful, I would say, Darrin, quite frankly the number that Charles gave you is sort of a hedge against sort of the auto sector of the business kind of slowing down a bit. So we would expect the digital – pure our digital side to pick up the slack there. If auto doesn’t slow then, sure you’ve got a little kiss to those numbers. Darrin Peller – Barclays: Yeah, now that’s helpful. I mean it just seems like between the strength you’ve seen in agency is now picking the email business from what was meeting on the headwind but a slower growth through a normalized growth rate environment, the rest [ph] are better, it seems like that business should set to accelerate beyond the even high single digits but that’s a fair point. Just one follow up and I will turn it back to the queue. On the Private Label side, I mean you guys mentioned ending the year at 25% growth, I guess end of your receivables growth, we imagine there's a fair number of deals coming down the pipe in terms of portfolio acquisitions that have to flow into that, can you give us a sense of the profile of these deals in terms of -- are they co-branding, or are they as profitable to the other one’s credit profile, and we look at sustainability of that kind of the growth rate for the receivables side of the business, then it has to get 18% organically the last couple of months, layering on these deals, I mean is this the kind of new growth for this business we should see for a while?

Well, again that’s a big -- the big question we thought when we signed the billion dollar vintage that boy, that was pretty exciting and maybe it was one and done, and we doubled it to 2 billion, this year it would be 2 billion. I think as you look into Q4, yeah inherent in those numbers are probably three very modest sized files, 100 million to $200 million type files that are pretty standard for us. So there is no big file that’s in that year-end number that we have. So think of it as you know – and includes probably three modest sized files that are out there and should be good growth and it’s on a go forward basis. It's going to be a combo of both Private Label and co-brand depending on what the clients want. But I would say going forward that if we could sustain a mid-teens file growth rate for years to come that would be very exciting for us, because then you're talking double-digit type financial return. So I think that would be our goal and right now based on the vintages obviously it's going better than that. But I would assume that most of the clients that you’re signing are going to be clients who have abandoned the program because it didn’t work in the past or clients who are brand-new to the scene and let’s about some major -- let's hope for big portfolio acquisition, we’re not really counting on that.

Your next question comes from the line of Dan Perlin with RBC Capital Markets.

Just got a couple. One, Charles, can you maybe tell us what you’re forecasting for the full year, that you have to absorb before the Ford switching cost [inaudible] in this quarter but my sense was it was somewhere 7 million, 8 million for the year and that obviously will be a duplicative expense, what will be the next? Can you just give us what that number would be?

That would be right. Yes, that’s a good range. It’s around 8 now.

Okay and then the margin profile of BrandLoyalty in the current quarter was a lot better than I would have anticipated given kind of the investment and the growth rate. Is that kind of the right run rate or with the hockey stick in the fourth quarter a bit, is there significant investment pool that needs to go into there and therefore the margin comes in a little bit or is this kind of where we should be thinking about going forward?

Think of this way, Dan, as this is the high fixed cost business, so it leverages the revenue growth very well. So if you look at Q1, revenue was little bit lower, ramped up in Q2, good expansion, now I expect it to pull back on revenue a little bit in Q3 and then ramp up in Q4. So for the year around 18-ish in terms of EBITDA margins, probably a little bit of a pullback in the margin in Q3, good expansion in Q4. So in Q4 it’s likely you could see EBITDA margins in the 20% range, so for the year expect it around 18 with fixed cost structure.

Yeah, if you look at overall LoyaltyOne, which consists of sort of the international business, there is the Canadian AIR MILES program, BrandLoyalty which is primarily Europe as well as some Asia, and the Brazilian coalition program, you’ve got Brazil which is running 40 plus percent topline but very little earnings at this point, because it’s in pure growth mode. You got BrandLoyalty which is running 20 plus organic top and bottom but that still means the margin as Charles said in the sort of high teens. And then you’ve got the traditional AIR MILES program which is growing 3%, 4% has mid to high 20s, high EBITDA margin. So you squish it altogether, to use the financial term, and what you’ve got there is a very nice double digits organic top line growth and double-digit organic bottom. So that’s sort of where we are after.

And I think Charles, you mentioned the tender share growth was a hundred basis points, is that a function of this built-out of this multi-tender database, or is this up and different?

This is just basically the basic blocking and tackling we’ve been doing. The multi-tender database really is still under development, something we’re looking to get closely done by the end of the year. That is an opportunity maybe in ’15 going forward but really will not be a contributor to ’14.

And then lastly as I was kind of looking back to some of my notes and we are thinking about vintages going into ’15 to get some line of sight, am I right to assume that you got about $500 million file that was from ‘13 vintage that you’re going to roll in, it looks like in the ’15, maybe back half of ’15, that’s not even in ‘14 numbers.

That’s correct.

Your next question comes from the line of Tulu Yunus with Nomura.

Just one question on clarifying the guidance for a second. So I think for the quarter you guys beat your published guidance by about $0.20 actually, and you’re raising the full year by 10, you know just trying to reconcile that it doesn't seem like there's anything in the report that suggests you’re actually lowering your back half view? Was it just that there’s just some conservatism baked in as sort of -- as your style or is there something else that we should be thinking about?

That's always the piece of it, Tulu but also you don’t always exactly know how things will sequence between quarters, going to back to what Ed said before, we had a little bit more coming to Q2 than we originally expected, which is just about Q3, Q4. But I’d say it's a combination of both. We always like to try to keep little conservatism in there, so we like to do the beating rates but sometimes you can’t exactly sequence your quarters exactly -- exactly right.

And then just on the credit trajectory, actually just a question there, so I think last quarter your outlook really was that the loss rate should be sort of flattish to down from those levels, looks like the DQ rates have done really quite well, beating seasonality and so forth. Can you just give us an update on your outlook for the charge-off rate?

We’re still expecting improvement in the loss rates, last year it was a 4.7% charge-off rate. This year we’re trending more toward a 4.5% loss rate and I think that pretty much stays on track.

I think for modeling purposes we've been saying this for the last year or so, I mean the good news or the bad news of declining charge-off rate and declining funding cost, we don't factor that in as we look into ‘15 and ’16. We assume this thing has straight bottom which is probably a good assumption in that the growth that we’re expecting is going to be coming purely out of just driving very large increases in the file from all the signings that we have in the tender share pickups from the core.

And then just lastly on Brazil, you know obviously tracking very nicely, I guess what is the – but your ownership kind of remains where it was, just what it is that you kind of need to see before you can sort of -- perhaps take that in and invest a little bit more into that business, I guess what type of collector counter you really are looking for – basically that’s it.

Yeah, it’s a fair question, I think it's a classic dilemma right of you know, would you like to own a majority of something that you hope will work well or a large minority piece where the owners are also the operators and have a huge incentive obviously for themselves and the associates to grow this thing profitably and quickly. And frankly I would prefer to own 37% of something where the ownership is as highly motivated as possible to make this the most valuable asset that they can, and if that means at some point down the road they would like a liquidity event we’d be more than happy to offer that but we are not aggressively pursuing that. We would prefer to build up the asset to be as valuable as it possibly can, and if that means we pay a little bit more down the road I think that's a good -- a good play.

Your next question comes from the line of Ashish Sabadra with Deutsche Bank.

Solid quarter, just had a couple of quick questions. The receivables growth of 20% in the third quarter, does that include a Coldwater creek receivables, are you planning to migrate those over and convert those over?

Yes, yes.

Can you just help us size how big that is remaining?

I’d say it’s still in the 250 million plus range, we will look to do obviously try to covert the cardholders into other programs and retain utility of those cardholders.

That's great, and so there's definitely an opportunity for you to convert those over to other programs, then that should help grow your receivables further, is that the right way to think about it?

That is correct.

Yeah I mean 20 would be sort of our base, hopefully there will be little better news coming up on that.

Definitely, and then the second question on the reserve build, so in this quarter, the provisions were higher than the charge-offs, and I believe the reserve build is associated with receivables growing so fast. So how should we think about the reserve built through the rest of the year, just wondering if you can just comment on the provisions for the rest of the year?

Let me look at my cheat sheet, I think you're basically going to be in a situation where you are on a solid reserve build Q3 and Q4 just based up on the growth rates we’re experiencing. So even though the loss rates aren’t expected to move, we said that’d be he stable for the remainder of 2014 with the sheer amount of growth we’re expecting to see you will be in a reserve build situation.

Yeah, it’s kind of like -- sometimes people ask could we flow through more, is there chance for margin expansion? The answer is it's a real simple thing, if we slow our growth you will see a flood of earnings coming through because your reserve build always front runs the earnings coming from the file. So it is one of those things where the reserve builds that we’re going through certainly dampen current period earnings but at the same time we would expect that -- the goal here is sort of long-term earnings generation and so we expect that the builds are good sign going forward but you’re just not going to see any margin till we start slowing.

And just quickly on the M&A pipeline usually you tend to do one or two tuck-in acquisition every year, I was just wondering when you look at the M&A pipeline both on the portfolio acquisition front as well as maybe some tuck in acquisitions, how do you look at the pipeline, and if you just could comment on your plans?

Yeah I mean on the M&A side, obviously in the card business we’re not – we don’t do a lot of it, we will do as we talked about some pretty modest size files that there's out there, 100 million, 200 million, we have one in ‘15 that’s coming on board, that’s about 500 million. So we’re not assuming that there's going to be a lot of M&A there which sort of leaves the other two large segments from an M&A perspective and clearly I certainly wanted to make sure our European adventure via BrandLoyalty was successful before we dip our toe any deeper into the water and needless to say we are more than happy with how that's going. So that gives us more confidence that maybe we beef up Europe a little bit more, at the same time that our clients are asking for a larger footprint in Europe as well as in Asia because these are global clients. So we need to be aware of that. At the same time it's always the question – do we build or buy in terms of beefing up digital assets. If prices are crazy we’re certainly not going to get involved in that, we prefer to build it. If there are opportunities where there are reasonable valuations and that means accretive to us, then we will buy. So that's about as close as I can get.

That’s a great segue into my last question, just on the synergies between BrandLoyalty and Epsilon business, can you talk about your plans fixed [ph] and Epsilon in Europe and Asia and maybe bring BrandLoyalty in the US, if you could just provide some color on that front?

Yeah, there is no question – I will take the first piece, Bryan can take the second -- there is no question that BrandLoyalty which exclusively is with the big supermarkets hypermarkets what everyone call them over in, primarily in Europe as well as some in Asia, we are already getting traction in Canada first, which would make sense, given our presence up there, as well as beginning to look at opportunities in the US. As part of this deal, we certainly wanted to use our relationships in North America to help the footprint of BrandLoyalty. I think what you'll find is that in Canada will be their first jump off and that will be sooner rather than later and in the US would be next.

I think from an Epsilon perspective just to give you some color, Epsilon today already has a nice healthy footprint across Europe and APAC but as a percent of revenue, that’s a fairly small piece of our business. We have been growing that -- originally many of those relationships were centered around our email offering, and as our multinational clients grow – we are growing with them by adding personnel and adding services in all of those locations which enables us to broaden what we do internationally beyond email to database and data etc. So that’s something that’s going to be critical for Epsilon going forward is to continue strengthening those international offices so we can grow with our global clients.

Your final question comes from the line of Andrew Jeffrey with SunTrust. Andrew Jeffrey – SunTrust: Hey Ed, I think your comments on Epsilon are particularly telling vis-a-vis the strategic positioning of business, Harmony from a long-term sort of cross sell synergy perspective, this is clearly critical. Could you elaborate a little bit on a competitive basis when you look at the broadening of the revenue base from whom do you think Epsilon is taking share and who do you see in the market as your primary competition?

Yeah I will take a stab at it but I won’t do a justice of – I will let Bryan finish up. But there is a large chunk of the growth in Epsilon that is coming from not dissimilar to what we talked about in the card business as well, it is coming from a shift of dollars away from your much more traditional channels of marketing, your brand advertising everything else, when we’re looking at especially in the midmarket space which we've never really had much traction, because this stuff is expensive. But what we’re finding is people are going to pony up the bucks to get a solution that will provide them with using all types of data to get good insights into their customer base, they are taking money out of those traditional channels. So I would say Andrew, to answer your question it’s less about against whom we compete, it’s more about a shift that’s taking place out of traditional spend and into data-driven sort of targeted marketing and loyalty, that’s the biggest. But now I will let Bryan hit the –

Yes I think Ed is right. I mean so we see a little bit more in the category of market expansion than stealing market share. I mean indirectly for sure if you’ve got for example Ed talked earlier about the food vertical, quick serve and casual dining and retail, I mean you are seeing in those clients a shift in spend which is basically away from general advertising into these data-driven forms of marketing and in that regard I guess you’re indirectly stealing share from traditional advertising agencies, you would have supporting those channels. But really it's we think of it more as new spend in these data-driven categories and in particular loyalty which Ed emphasized earlier which is a lot of runway to it, and it’s a big driver of the growth in our technology business. And beyond that you see competitors in the categories that we cover, which would range from data companies to database, marketing services companies to agencies and Epsilon’s emphasis and our market position is about integrating all those services together in one end to end platform. We think that's a winning formula because our clients are looking for somebody who can insulate them from all the complexity in the marketplace and we believe we’re one if not the only one of the companies that has the broadest reach across all of those channels and categories. So it's a good position for us to take, and that’s helping to drive growth. Andrew Jeffrey – SunTrust: The Precima business is a relatively new business, I haven't heard you talk a lot about that. Can you talk about the opportunities for growth sort of on that I guess more of a bespoke or one off or closed loop kind of offering, is that something we’re going to be hearing more of in terms of loyalty’s long term growth?

Yeah, I think it is the natural growth -- outgrowth of the AIR MILES business itself, in the sense of what Precima does is it gets a lot deeper into the behaviors and spending patterns of the existing clients. And so you're really getting down into for example at a grocer, the individual SKUs and trying to figure out how we should do product placement, to who we should be offering the big promotions to, how we should be tearing those promotions. Again think of it as adding another level of detail for those clients enough clients can either be a part of the coalition or outside of the coalition itself. So some clients don't want that level of detail, those who do Precima is the solution. So yeah i would say given the trend in the amount of information people want I would say Precima is a legitimate new growth vehicle for the LoyaltyOne segment. Andrew Jeffrey – SunTrust: Great, thank you very much.

Thank you everyone. Bye.

Thank you ladies and gentlemen. This concludes today’s Alliance Data second quarter 2014 earnings conference call. You may now disconnect.