Vantiv, Inc. (NYSE: VNTV) ("Vantiv" or the "company") today announced financial results for the first quarter ended March 31, 2015. Revenue increased 31% to $705.6 million in the first quarter as compared to $537.6 million in the prior year period. Net revenue increased 30% to $374.5 million in the first quarter as compared to $288.5 million in the prior year period, primarily due to strong growth in our Merchant Services segment. On a GAAP basis, net income attributable to Vantiv, Inc. was $19.0 million or $0.13 per diluted share in the first quarter as compared to $28.1 million or $0.18 per diluted share in the prior year period. Pro forma adjusted net income increased 15% to $89.4 million in the first quarter as compared to $77.6 million in the prior year period. Pro forma adjusted net income per share increased 15% to $0.45 in the first quarter as compared to $0.39 in the prior year period. (See Schedule 2 for pro forma adjusted net income and Schedule 6 for GAAP net income reconciliation to pro forma adjusted net income.)
"We delivered strong results for the first quarter of 2015," said Charles Drucker, president and chief executive officer at Vantiv. "Our results reflect the successful execution of our strategy, which is to build on our core strengths while expanding into high growth channels and verticals. By focusing on these priorities, we continue to consistently grow at above market rates and win market share."
Merchant Services net revenue increased 42% to $290.7 million in the first quarter as compared to $205.3 million in the prior year period, primarily due to a 33% increase in transactions and a 6% increase in net revenue per transaction. Our prior acquisition of Mercury Payment Systems contributed 32 percentage points of net revenue growth in the first quarter. Sales and marketing expenses increased 54% to $110.2 million in the first quarter as compared to $71.8 million in the prior year period, primarily due to impacts from the Mercury acquisition.
Financial Institution Services
Financial Institution Services net revenue increased 1% to $83.8 million in the first quarter as compared to $83.2 million in the prior year period as a 5% increase in transactions was partially offset by lower net revenue per transaction. Sales and marketing expenses decreased 12% to $5.9 million in the first quarter as compared to $6.7 million in the prior year period.
Second Quarter Financial Outlook
Based on the current level of transaction trends and new business activity, net revenue for the second quarter of 2015 is expected to be $405 to $410 million, representing growth of 22% to 24% above the prior year period. Pro forma adjusted net income per share for the second quarter of 2015 is expected to be $0.53 to $0.55, an increase of 13% to 17% above the prior year period. GAAP net income per share attributable to Vantiv, Inc. is expected to be $0.23 to $0.25 for the second quarter of 2015.
Earnings Conference Call and Audio Webcast
The company will host a conference call to discuss the first quarter 2015 financial results today at 8:00 a.m. EDT. The conference call can be accessed live over the phone by dialing (888) 211-4439, or for international callers (913) 312-1381, and referencing conference code 2226766. A replay will be available approximately two hours after the call concludes and can be accessed by dialing (888) 203-1112, or for international callers (719) 457-0820, and entering replay passcode 2226766. The replay will be available through Thursday, May 14, 2015. The call will also be webcast live from the company's investor relations website at http://investors.vantiv.com. Following completion of the call, a recorded replay of the webcast will be available on the website.
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