Rewards Network Hits a Road Bump
Following the departure of other executives, Chicago-based Rewards Network lost its CEO yesterday and is projecting a net loss for the first quarter. The news follows a weak fourth quarter wherein operating revenues and sales dropped 8% driven by declines in restaurant merchant count, dining transactions and the average dining transaction amount. CEO and president George Wiedemann said the Company’s 2004 performance was less than satisfactory. He resigned yesterday. Rewards Network promptly named Ronald Blake as the new president, CEO and director. Blake was chairman and CEO of Willis Stein Telecom Acquisition and previously worked for Ameritech. The Company expects to report a net loss, in the range of $0.16 to $0.22 per share, for the first quarter. Rewards Network says the loss is the result of lower-than-expected revenues; a higher-than-expected provision for losses; and severance costs for executives. For the fourth quarter Rewards Network posted operating revenues of $22.6 million on $82.0 million in sales. As of year-end 2004, Rewards Network had 3.8 million active member accounts, 10,514 restaurants and 11,321 hotels participating in its rewards programs. For complete details on the Rewards Network fourth quarter performance, visit CardData ([www.carddata.com][1]).
REWARDS NETWORK HISTORICAL
Sales Restaurants Transactions
2002: $271.8mm 9,681 2,349,000
2003: $320.1mm 10,836 2,746,000
2004: $320.6mm 10,514 2,641,000
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com