Rewards Network Inc. Reports Fourth Quarter and Full Year Results

  
    
  
  
    
      Rewards Network Inc. (AMEX:IRN), a leading provider of marketing 
      services and frequent dining programs to the restaurant industry, today 
      reported its financial results for the fourth quarter and full year 
      ended December 31, 2007.
    
    
      Rewards Network reported total sales of $58.2 million for the fourth 
      quarter ended December 31, 2007, which were slightly down as compared to 
      the fourth quarter of the prior year. Rewards Network ended the fourth 
      quarter with a net Dining Credits Portfolio of $94.9 million, an 
      increase of 24.2% over the fourth quarter of 2006, and 9,542 merchants 
      in its Marketing Credits and Marketing Services Programs, an increase of 
      10.6% over the prior year period.
    
    
      The following table presents financial highlights of the Company’s 
      operations for the fourth quarter and full year ended December 31, 2007 
      (in millions, except per share amounts and merchant count).
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
          4Q'07
        
        
        
        
          4Q'06
        
        
        
        
          YTD'07
        
        
        
        
          YTD'06
        
      
      
        
          Sales
        
        
        
        
          $
        
        
          58.2
        
        
        
        
          $
        
        
          58.6
        
        
        
        
        
        
          $
        
        
          225.1
        
        
        
        
          $
        
        
          253.0
        
        
        
      
      
        
          Net revenue
        
        
        
        
          $
        
        
          16.9
        
        
        
        
          $
        
        
          17.1
        
        
        
        
        
        
          $
        
        
          64.5
        
        
        
        
          $
        
        
          81.4
        
        
        
      
      
        
          Operating expenses
        
        
        
        
          $
        
        
          16.5
        
        
        
        
          $
        
        
          46.9
        
        
        
        
        
        
          $
        
        
          56.4
        
        
        
        
          $
        
        
          106.1
        
        
        
      
      
        
          Net income (loss)
        
        
        
        
          $
        
        
          0.7
        
        
        
        
          $
        
        
          (19.2
        
        
          )
        
        
        
        
          $
        
        
          7.0
        
        
        
        
          $
        
        
          (15.2
        
        
          )
        
      
      
        
          Diluted EPS
        
        
        
        
          $
        
        
          0.02
        
        
        
        
          $
        
        
          (0.72
        
        
          )
        
        
        
        
          $
        
        
          0.26
        
        
        
        
          $
        
        
          (0.57
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Merchants
        
        
        
        
        
        
          9,542
        
        
        
        
        
        
          8,627
        
        
        
        
        
        
        
        
          9,542
        
        
        
        
        
        
          8,627
        
        
        
      
      
        
          Dining Credits Portfolio, Net of Reserves
        
        
        
        
          $
        
        
          94.9
        
        
        
        
          $
        
        
          76.4
        
        
        
        
        
        
          $
        
        
          94.9
        
        
        
        
          $
        
        
          76.4
        
        
        
      
    
    
      Fourth Quarter 2007 Results
    
    
      Sales for the fourth quarter of 2007 were slightly down when compared to 
      the fourth quarter of 2006, while total merchant count increased 10.6% 
      between the two periods. The lower sales volume on a per merchant basis 
      resulted from a decline in member activity in the quarter and actions 
      taken by the Company to adjust programs so that merchants can manage 
      their own cash flows more effectively. “We are 
      sensitive to the current economic issues facing restaurateurs and 
      members. We have worked to ensure that the cash flow impact of our 
      programs is in line with merchant expectations and means,” 
      said Chris Locke, CFO of Rewards Network. “We 
      believe that having more participating restaurants provides members with 
      more opportunities to engage in our programs and increase their 
      activity. We are also seeking to increase member activity through 
      comprehensive marketing programs designed to acquire new members as well 
      as provide further incentives to members to dine more frequently at 
      participating restaurants.”
    
    
      Net revenues for the fourth quarter of 2007 were consistent with the 
      fourth quarter of 2006. Net revenues were positively impacted by a $1.2 
      million decrease in member benefits, which was substantially offset by a 
      $1.1 million increase in the provisions for losses. Member benefits 
      expense for the fourth quarter of 2006 was impacted by a member bonus 
      program that did not recur in 2007. The provision for losses was higher 
      than the prior year due to continued growth in both Marketing Credits 
      merchant count and the Dining Credits portfolio. The Company’s 
      reserve methodology requires that we record a reserve on new Dining 
      Credits when they are purchased, which increases the provision for 
      losses. The provision increases as the Dining Credits portfolio grows. 
      In addition, the provision for losses for the fourth quarter of 2007 was 
      increased by approximately $796 thousand related to the RCR Loan Notes 
      program, which the Company discontinued effective January 2008 in order 
      to focus on its core Marketing Credits and Marketing Services programs.
    
    
      Operating expenses for the fourth quarter of 2007 declined 64.8% as 
      compared to the fourth quarter of 2006 largely due to litigation expense 
      related to the Bistro Executive lawsuit settlement in the prior period. 
      Excluding litigation and related expenses, operating expenses were $0.6 
      million higher than the prior period, due mostly to higher sales 
      commission and expense as compared to the prior period.
    
    
      Operating expenses in the quarter included a $1.6 million pre-tax 
      benefit arising from the reversal of litigation expense related to the 
      Bistro Executive settlement while operating expenses for the fourth 
      quarter of 2006 reflected a $29.4 million expense related to the 
      settlement. In aggregate, a total of $13.2 million of the $29.4 million 
      settlement expense originally recorded for this lawsuit in the fourth 
      quarter of 2006 was reversed during 2007.
    
    
      “After finalizing the Bistro Executive 
      settlement in the third quarter of 2007, we refined our cost estimate 
      and made the first payment of claims and legal fees in the fourth 
      quarter. In the end, the final liability in this case was significantly 
      lower than our original estimates. Absent the impact of the litigation 
      expense and adjustments, fourth quarter operating expenses increased 
      over the prior year due to investment in growing the size and improving 
      the productivity of our sales force,” Locke 
      said.
    
    
      Full Year 2007 Results
    
    
      Sales for 2007 totaled $225.1 million, 11.0% lower than the prior year. “We 
      began 2007 with approximately 8,300 merchants and ended the year with 
      approximately 9,500 merchants. Because our starting merchant count in 
      2007 was significantly lower than the beginning of 2006, the 
      year-over-year quarterly sales comparisons for the first three quarters 
      of 2007 were unfavorable. However, the year culminated in a fourth 
      quarter that was nearly identical to the prior year period, reflecting 
      the progress made in growing our merchant count. We expect the increased 
      number of merchants at year end to have a positive impact on sales in 
      2008,” said Locke.
    
    
      Net revenues for 2007 were $64.5 million, 20.7% lower than the prior 
      year. Net revenues were negatively impacted by a decrease in sales as 
      well as a $6.8 million increase in the provision for losses. “During 
      2006, our Dining Credits portfolio decreased as we sought to replace 
      less profitable and more risky merchants with those that met our new 
      credit, risk and profitability thresholds. The decreasing portfolio 
      resulted in a lower provision for losses in 2006. In 2007, we focused on 
      improving the productivity of our sales force. The improved productivity 
      of our sales force contributed to an increase in both our Marketing 
      Credits program merchant count and Dining Credits portfolio. As the 
      portfolio increased, our reserve expense increased as our reserve 
      methodology requires for a reserve to be created for new Dining Credits 
      when they are purchased,” said Locke.
    
    
      2007 operating expenses declined 46.9% as compared to 2006, including a 
      $13.2 million pre-tax benefit arising from the reversal of litigation 
      expenses related to the Bistro Executive lawsuit, while 2006 operating 
      expenses included $36.4 million of expenses related to this matter. 
      Excluding litigation and related expenses, 2007 operating expenses were 
      $115 thousand lower than the prior year despite a $2.6 million increase 
      in sales commissions and expenses. “During 
      2007, we invested in growing our sales force and improving its 
      productivity. Throughout the year, this investment contributed to a 
      steadily increasing merchant count in both product lines as well as in 
      the Dining Credits portfolio,” said Locke.
    
    
      Uses of Cash
    
    
      During 2007, the Company utilized $49.5 million in cash, cash 
      equivalents and short-term available for sale securities. The primary 
      uses of cash included:
    
    
      
        $27.3 million to grow the Dining Credits portfolio
      
      
        $14.1 million to purchase $15.0 million of our convertible subordinate 
        debentures
      
      
        $8.1 million to purchase information technology tools and for 
        development of new websites
      
      
        $9.3 million to satisfy the first payment of legal fees and settlement 
        payments related to the Bistro Executive lawsuit; the Company is 
        obligated to pay an additional $3.2 million related to this matter in 
        2008 and $3.1 million in 2009
      
    
    
      Conclusion
    
    
      “While we see that the economic challenges 
      facing restaurateurs during the fourth quarter of 2007 are continuing 
      into 2008, we believe that both our Marketing Services and Marketing 
      Credits Programs offer valuable services to restaurateurs in any 
      economic environment,” said Blake. “We 
      intend to continue to responsibly expand merchant count in both programs 
      and increase the opportunities for members to be engaged in our programs.”
    
    
      “The investment in our sales force and focus 
      on growing merchant count and the Dining Credits portfolio while 
      maintaining our credit and pricing policies have provided us with a 
      portfolio of restaurants that we believe is attractive to members and 
      that we intend to use as a platform for revenue and profitability growth 
      in 2008.” Concluded Blake, “We 
      believe the growth in our restaurant portfolio complements the 
      investment that we made in our new websites and positions us well to 
      drive increased engagement from our member base.”
    
    
      Webcast Information
    
    
      Management will host a conference call at 10:00 am Eastern Time on 
      Wednesday, March 12, 2008. Participants are invited to join a live 
      webcast of the call, which may be accessed by visiting the Investor 
      Relations section of the Rewards Network website at www.rewardsnetwork.com. 
      The webcast is also available at www.streetevents.com 
      and www.earnings.com. Participants 
      should log on at least 10 minutes prior to the webcast to register and 
      download any necessary software. If you are unable to participate during 
      the live webcast, a replay of the call will be archived on the Company's 
      website. Alternatively, a dial-in replay is available through April 11, 
      2008, by dialing 1-888-843-8996 or 1-630-652-3044, using the conference 
      ID number, 20861029.
    
    
      About Rewards Network
    
    
      Rewards Network (AMEX:IRN 
      - News), headquartered 
      in Chicago, Illinois, operates the leading frequent dining programs in 
      North America. Thousands of participating restaurants and other 
      merchants benefit from the Company’s 
      extensive email, internet and print marketing efforts; member 
      ratings/feedback and other business intelligence; and access to capital. 
      In conjunction with leading airline frequent flyer programs and other 
      affinity organizations, Rewards Network provides millions of members 
      with incentives to dine at participating restaurants, including airline 
      miles, college savings rewards, reward program points, and Cashback 
      RewardsSM savings. Additional details about 
      Rewards Network can be found at www.rewardsnetwork.com 
      or by calling 1-877-491-3463.
    
    
      Safe Harbor Statement
    
    
      Statements in this release that are not strictly historical are 
      "forward-looking" statements that are made pursuant to the safe harbor 
      provisions of the Private Securities Litigation Reform Act of 1995. 
      These statements are based on management's current expectation or 
      beliefs, and are subject to risks, trends and uncertainties. Actual 
      results, performance or achievements may differ materially from those 
      expressed or implied by the statements herein due to factors that 
      include, but are not limited to, the following: (i) our inability to 
      attract and retain merchants, (ii) our inability to obtain sufficient 
      cash and refinance the repurchase of our convertible subordinated 
      debentures, (iii) our dependence upon our relationships with payment 
      card issuers, transaction processors, presenters and aggregators, 
      (iv) changes to payment card association rules and practices, 
      (v) economic changes, (vi) our susceptibility to restaurant credit risk 
      and the risk that our allowance for losses related to restaurant credit 
      risk in connection with dining credits may prove inadequate, (vii) our 
      dependence on our relationships with airlines and other reward program 
      partners for a significant number of members, (viii) the concentration 
      of a significant amount of our rewards currency in one industry group, 
      the airline industry, (ix) our inability to attract and retain active 
      members, (x) the filing of class action lawsuits against us, (xi) 
      changes in our programs that affect the rate of rewards, (xii) our 
      inability to maintain an adequately-staffed sales force, (xiii) our 
      inability to maintain an appropriate balance between the number of 
      members and the number of participating merchants in each market, 
      (xiv) our minimum purchase obligations and performance requirements, 
      (xv) network interruptions, processing interruptions or processing 
      errors, (xvi) susceptibility to a changing regulatory environment, 
      (xvii) increased operating costs or loss of members due to privacy 
      concerns of our program partners, payment card processors and the 
      public, (xviii) the failure of our security measures, (xix) the loss of 
      key personnel, (xx) increasing competition, and (xxi) a shift toward 
      Marketing Services Program that may cause revenues to decline. A more 
      detailed description of the factors that, among others, should be 
      considered in evaluating our outlook can be found in the company's 
      annual report on Form 10-K for the year ended December 31, 2006, and 
      quarterly reports on Form 10-Q for the quarters ended September 30, 
      2007, June 30, 2007, and March 31, 2007, filed with the Securities and 
      Exchange Commission. We undertake no obligation to, and expressly 
      disclaim any such obligation to, update or revise any forward-looking 
      statements to reflect changed assumptions, the occurrence of anticipated 
      or unanticipated events, changes to future results over time or 
      otherwise, except as required by law.
    
    
      
        
           
        
        
           
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Rewards Network Inc. and Subsidiaries
          
          
            - unaudited-
          
          
            (amounts in thousands, except per share data, restaurants in 
            the program, average transaction amount and estimated months to 
            consume dining credits portfolio)
          
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Three Months Ended December 31,
        
        
          Year Ended December 31,
        
      
      
        
        
        
        
        
        
        
           
        
        
          2007
        
        
           
        
        
          %
        
        
           
        
        
           
        
        
          2006
        
        
           
        
        
          %
        
        
           
        
        
           
        
        
          2007
        
        
           
        
        
          %
        
        
           
        
        
           
        
        
          2006
        
        
           
        
        
          %
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Sales
        
        
          $58,189
        
        
        
        
          100.00
        
        
          %
        
        
          $58,639
        
        
        
        
          100.00
        
        
          %
        
        
          $225,107
        
        
        
        
          100.00
        
        
          %
        
        
          $252,986
        
        
        
        
          100.00
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Cost of sales
        
        
           
        
        
          29,390
        
        
        
        
          50.51
        
        
          %
        
        
           
        
        
          29,577
        
        
        
        
          50.44
        
        
          %
        
        
           
        
        
          112,829
        
        
        
        
          50.12
        
        
          %
        
        
           
        
        
          130,065
        
        
        
        
          51.41
        
        
          %
        
      
      
        
        
        
          Provision for losses
        
        
        
        
          2,876
        
        
        
        
          4.94
        
        
          %
        
        
        
        
          1,760
        
        
        
        
          3.00
        
        
          %
        
        
        
        
          10,896
        
        
        
        
          4.84
        
        
          %
        
        
        
        
          4,139
        
        
        
        
          1.64
        
        
          %
        
      
      
        
        
        
          Member benefits
        
        
           
        
        
          8,980
        
        
           
        
        
          15.43
        
        
          %
        
        
           
        
        
          10,209
        
        
           
        
        
          17.41
        
        
          %
        
        
           
        
        
          36,869
        
        
           
        
        
          16.38
        
        
          %
        
        
           
        
        
          37,420
        
        
           
        
        
          14.79
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net revenues
        
        
        
        
          16,943
        
        
        
        
          29.12
        
        
          %
        
        
        
        
          17,093
        
        
        
        
          29.15
        
        
          %
        
        
        
        
          64,513
        
        
        
        
          28.66
        
        
          %
        
        
        
        
          81,362
        
        
        
        
          32.16
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Membership fees and other income
        
        
           
        
        
          384
        
        
           
        
        
          0.66
        
        
          %
        
        
           
        
        
          511
        
        
           
        
        
          0.87
        
        
          %
        
        
           
        
        
          1,712
        
        
           
        
        
          0.76
        
        
          %
        
        
           
        
        
          2,135
        
        
           
        
        
          0.84
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Total operating revenues
        
        
           
        
        
          17,327
        
        
           
        
        
          29.78
        
        
          %
        
        
           
        
        
          17,604
        
        
           
        
        
          30.02
        
        
          %
        
        
           
        
        
          66,225
        
        
           
        
        
          29.42
        
        
          %
        
        
           
        
        
          83,497
        
        
           
        
        
          33.00
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Salaries and benefits
        
        
        
        
          5,054
        
        
        
        
          8.69
        
        
          %
        
        
        
        
          6,328
        
        
        
        
          10.79
        
        
          %
        
        
        
        
          20,393
        
        
        
        
          9.06
        
        
          %
        
        
        
        
          23,863
        
        
        
        
          9.43
        
        
          %
        
      
      
        
        
        
          Sales commission and expenses
        
        
        
        
          5,016
        
        
        
        
          8.62
        
        
          %
        
        
        
        
          4,115
        
        
        
        
          7.02
        
        
          %
        
        
        
        
          20,557
        
        
        
        
          9.13
        
        
          %
        
        
        
        
          17,953
        
        
        
        
          7.10
        
        
          %
        
      
      
        
        
        
          Professional fees
        
        
        
        
          901
        
        
        
        
          1.55
        
        
          %
        
        
        
        
          651
        
        
        
        
          1.11
        
        
          %
        
        
        
        
          2,618
        
        
        
        
          1.16
        
        
          %
        
        
        
        
          2,878
        
        
        
        
          1.14
        
        
          %
        
      
      
        
        
        
          Member and merchant marketing
        
        
        
        
          1,494
        
        
        
        
          2.57
        
        
          %
        
        
        
        
          1,198
        
        
        
        
          2.04
        
        
          %
        
        
        
        
          6,919
        
        
        
        
          3.07
        
        
          %
        
        
        
        
          4,998
        
        
        
        
          1.98
        
        
          %
        
      
      
        
        
        
          General and administrative
        
        
        
        
          5,657
        
        
        
        
          9.72
        
        
          %
        
        
        
        
          5,194
        
        
        
        
          8.86
        
        
          %
        
        
        
        
          19,121
        
        
        
        
          8.49
        
        
          %
        
        
        
        
          20,031
        
        
        
        
          7.92
        
        
          %
        
      
      
        
        
        
          Litigation and related (benefit) expenses
        
        
           
        
        
          (1,611
        
        
          )
        
        
          -2.77
        
        
          %
        
        
           
        
        
          29,424
        
        
           
        
        
          50.18
        
        
          %
        
        
           
        
        
          (13,242
        
        
          )
        
        
          -5.88
        
        
          %
        
        
           
        
        
          36,359
        
        
           
        
        
          14.37
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Total operating expenses
        
        
           
        
        
          16,511
        
        
           
        
        
          28.37
        
        
          %
        
        
           
        
        
          46,910
        
        
           
        
        
          80.00
        
        
          %
        
        
           
        
        
          56,366
        
        
           
        
        
          25.04
        
        
          %
        
        
           
        
        
          106,082
        
        
           
        
        
          41.93
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Operating income (loss)
        
        
        
        
          816
        
        
        
        
          1.40
        
        
          %
        
        
        
        
          (29,306
        
        
          )
        
        
          -49.98
        
        
          %
        
        
        
        
          9,859
        
        
        
        
          4.38
        
        
          %
        
        
        
        
          (22,585
        
        
          )
        
        
          -8.93
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other (expenses) income, net
        
        
           
        
        
          (137
        
        
          )
        
        
          -0.24
        
        
          %
        
        
           
        
        
          42
        
        
           
        
        
          0.07
        
        
          %
        
        
           
        
        
          360
        
        
           
        
        
          0.16
        
        
          %
        
        
           
        
        
          (204
        
        
          )
        
        
          -0.08
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Income (loss) before income tax (benefit) provision
        
        
        
        
          679
        
        
        
        
          1.17
        
        
          %
        
        
        
        
          (29,264
        
        
          )
        
        
          -49.91
        
        
          %
        
        
        
        
          10,219
        
        
        
        
          4.54
        
        
          %
        
        
        
        
          (22,789
        
        
          )
        
        
          -9.01
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax (benefit) provision
        
        
           
        
        
          (3
        
        
          )
        
        
          -0.00
        
        
          %
        
        
           
        
        
          (10,097
        
        
          )
        
        
          -17.22
        
        
          %
        
        
           
        
        
          3,254
        
        
           
        
        
          1.46
        
        
          %
        
        
           
        
        
          (7,634
        
        
          )
        
        
          -3.02
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Net income (loss)
        
        
           
        
        
          682
        
        
           
        
        
          1.17
        
        
          %
        
        
           
        
        
          (19,167
        
        
          )
        
        
          -32.69
        
        
          %
        
        
           
        
        
          6,965
        
        
           
        
        
          3.09
        
        
          %
        
        
           
        
        
          (15,155
        
        
          )
        
        
          -5.99
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings (loss) per share
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
          $0.03
        
        
        
        
        
        
        
        
          ($0.72
        
        
          )
        
        
        
        
          $0.26
        
        
        
        
        
        
        
        
          ($0.57
        
        
          )
        
        
        
      
      
        
        
        
          Diluted
        
        
          $0.02
        
        
        
        
        
        
        
        
          ($0.72
        
        
          )
        
        
        
        
          $0.26
        
        
        
        
        
        
        
        
          ($0.57
        
        
          )
        
        
        
      
      
        
          Weighted average number of common and common equivalent shares
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          27,052
        
        
        
        
        
        
        
        
          26,738
        
        
        
        
        
        
        
        
          26,990
        
        
        
        
        
        
        
        
          26,683
        
        
        
        
        
      
      
        
        
        
          Diluted
        
        
        
        
          27,313
        
        
        
        
        
        
        
        
          26,738
        
        
        
        
        
        
        
        
          27,163
        
        
        
        
        
        
        
        
          26,683
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          
            Rewards Network Inc. and Subsidiaries
          
          
            - unaudited- 
          
          
            (amounts in thousands, except per share data, restaurants in 
            the program, average transaction amount and estimated months to 
            consume dining credits portfolio)
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Three months endedDecember 31, 2007
        
        
        
        
          Three months endedDecember 31, 2006
        
      
      
        
        
        
          
            MarketingCreditsProgram
          
        
        
           
        
        
          
            MarketingServicesProgram
          
        
        
           
        
        
          Total
        
        
        
        
          
            MarketingCreditsProgram
          
        
        
           
        
        
          
            MarketingServicesProgram
          
        
        
           
        
        
          Total
        
      
      
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          Number of qualified transactions
        
        
          1,433
        
        
        
        
          749
        
        
        
        
          2,182
        
        
        
        
          1,567
        
        
        
        
          704
        
        
        
        
          2,271
        
      
      
        
          Average transaction amount
        
        
          $48.18
        
        
        
        
          $47.17
        
        
        
        
          $47.84
        
        
        
        
          $47.51
        
        
        
        
          $48.80
        
        
        
        
          $47.91
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Qualified transaction amounts
        
        
          $69,046
        
        
        
        
          $35,330
        
        
        
        
          $104,376
        
        
        
        
          $74,441
        
        
        
        
          $34,353
        
        
        
        
          $108,794
        
      
      
        
          Sales yield
        
        
          75.53%
        
        
        
        
          17.09%
        
        
        
        
          55.75%
        
        
        
        
          70.86%
        
        
        
        
          17.15%
        
        
        
        
          53.90%
        
      
      
        
          Sales
        
        
          $52,152
        
        
        
        
          $6,037
        
        
        
        
          $58,189
        
        
        
        
          $52,748
        
        
        
        
          $5,891
        
        
        
        
          $58,639
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of dining credits
        
        
          $29,002
        
        
        
        
          $0
        
        
        
        
          $29,002
        
        
        
        
          $29,261
        
        
        
        
          $0
        
        
        
        
          $29,261
        
      
      
        
          Processing fees
        
        
          243
        
        
           
        
        
          145
        
        
           
        
        
          388
        
        
        
        
          214
        
        
           
        
        
          102
        
        
           
        
        
          316
        
      
      
        
          Total cost of sales
        
        
          $29,245
        
        
           
        
        
          $145
        
        
           
        
        
          $29,390
        
        
        
        
          $29,475
        
        
           
        
        
          $102
        
        
           
        
        
          $29,577
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for losses
        
        
          $2,876
        
        
        
        
          $0
        
        
        
        
          $2,876
        
        
        
        
          $1,760
        
        
        
        
          $0
        
        
        
        
          $1,760
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Member benefits
        
        
          $6,157
        
        
        
        
          $2,823
        
        
        
        
          $8,980
        
        
        
        
          $7,078
        
        
        
        
          $3,131
        
        
        
        
          $10,209
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          Net revenues
        
        
          $13,874
        
        
           
        
        
          $3,069
        
        
           
        
        
          $16,943
        
        
        
        
          $14,435
        
        
           
        
        
          $2,658
        
        
           
        
        
          $17,093
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Year endedDecember 31, 2007
        
        
        
        
          Year endedDecember 31, 2006
        
      
      
        
        
        
          
            MarketingCreditsProgram
          
        
        
           
        
        
          
            MarketingServicesProgram
          
        
        
           
        
        
          Total
        
        
        
        
          
            MarketingCreditsProgram
          
        
        
           
        
        
          
            MarketingServicesProgram
          
        
        
           
        
        
          Total
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Number of qualified transactions
        
        
          5,704
        
        
        
        
          2,900
        
        
        
        
          8,604
        
        
        
        
          6,943
        
        
        
        
          2,695
        
        
        
        
          9,638
        
      
      
        
          Average transaction amount
        
        
          $47.66
        
        
        
        
          $47.99
        
        
        
        
          $47.77
        
        
        
        
          $47.57
        
        
        
        
          $48.56
        
        
        
        
          $47.85
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Qualified transaction amounts
        
        
          $271,879
        
        
        
        
          $139,172
        
        
        
        
          $411,051
        
        
        
        
          $330,269
        
        
        
        
          $130,880
        
        
        
        
          $461,149
        
      
      
        
          Sales yield
        
        
          73.98%
        
        
        
        
          17.23%
        
        
        
        
          54.76%
        
        
        
        
          69.96%
        
        
        
        
          16.76%
        
        
        
        
          54.86%
        
      
      
        
          Sales
        
        
          $201,133
        
        
        
        
          $23,974
        
        
        
        
          $225,107
        
        
        
        
          $231,046
        
        
        
        
          $21,940
        
        
        
        
          $252,986
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of dining credits
        
        
          $111,617
        
        
        
        
          $0
        
        
        
        
          $111,617
        
        
        
        
          $128,562
        
        
        
        
          $0
        
        
        
        
          $128,562
        
      
      
        
          Processing fees
        
        
          794
        
        
           
        
        
          418
        
        
           
        
        
          1,212
        
        
        
        
          1,076
        
        
           
        
        
          427
        
        
           
        
        
          1,503
        
      
      
        
          Total cost of sales
        
        
          $112,411
        
        
           
        
        
          $418
        
        
           
        
        
          $112,829
        
        
        
        
          $129,638
        
        
           
        
        
          $427
        
        
           
        
        
          $130,065
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for losses
        
        
          $10,896
        
        
        
        
          $0
        
        
        
        
          $10,896
        
        
        
        
          $4,139
        
        
        
        
          $0
        
        
        
        
          $4,139
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Member benefits
        
        
          $24,695
        
        
        
        
          $12,174
        
        
        
        
          $36,869
        
        
        
        
          $27,182
        
        
        
        
          $10,238
        
        
        
        
          $37,420
        
      
      
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          Net revenues
        
        
          $53,131
        
        
           
        
        
          $11,382
        
        
           
        
        
          $64,513
        
        
        
        
          $70,087
        
        
           
        
        
          $11,275
        
        
           
        
        
          $81,362
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
           
        
      
      
        
           
        
      
      
        
          
            Rewards Network Inc. and Subsidiaries
          
        
      
      
        
          
            - unaudited-
          
        
      
      
        
          
            (amounts in thousands, except per share data, restaurants in 
            the program, average transaction amount and estimated months to 
            consume dining credits portfolio)
          
        
      
      
        
           
        
      
      
        
          
            Definitions:
          
        
        
           
        
        
        
      
      
        
           
        
      
      
        
          Qualified transaction amounts:
        
        
        
        
          Represents the total dollar value of all member dining transactions 
          at participating merchants when a benefit is offered. Qualified 
          transaction amounts are divided by the number of qualified 
          transactions to arrive at the average transaction amount.
        
      
      
        
           
        
      
      
        
          Sales yield:
        
        
        
        
          Represents the percentage of qualified transaction amounts that 
          Rewards Network reports as revenue. The percentage is based on each 
          agreement between the merchant and Rewards Network.
        
      
      
        
           
        
      
      
        
          Cost of dining credits:
        
        
        
        
          
            Represents the amount of dining credits, at cost, redeemed by 
            members when transacting at participating merchants when a benefit 
            is offered. Under the Company's Marketing Services Program, no 
            dining credits are purchased by Rewards Network.
          
        
      
      
        
           
        
      
      
        
          Provision for losses:
        
        
        
        
          Represents the current period expense necessary to maintain an 
          appropriate reserve against the Company's dining credits portfolio. 
          No provision applies to the Marketing Services Program, as the 
          Company does not purchase dining credits under that program.
        
      
      
        
           
        
      
      
        
          Total member benefits:
        
        
        
        
          
            Represents the dollar value of benefits paid to members in 
            Cashback Rewards(SM) savings, airline 
            miles, or other benefit currencies, for dining at participating 
            merchants.
          
        
      
      
        
        
        
        
        
           
        
      
      
        
        
        
        
        
           
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selected Balance Sheet and Cash Flow Information
        
        
        
        
          December 31,
        
        
        
        
          December 31,
        
      
      
        
           
        
        
        
        
        
        
          2007
        
        
           
        
        
          2006
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $35,517
        
        
        
        
        
        
          $52,496
        
        
        
      
      
        
          Short-term available for sale securities
        
        
        
        
          $0.00
        
        
        
        
        
        
          $32,500
        
        
        
      
      
        
          Dining credits
        
        
        
        
          $116,137
        
        
        
        
        
        
          $88,576
        
        
        
      
      
        
          Allowance for doubtful dining credits accounts
        
        
        
        
          ($21,257
        
        
          )
        
        
        
        
          ($12,210
        
        
          )
        
      
      
        
          Goodwill
        
        
        
        
          $8,117
        
        
        
        
        
        
          $8,117
        
        
        
      
      
        
          Total assets
        
        
        
        
          $176,544
        
        
        
        
        
        
          $206,579
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Accounts payable - dining credits
        
        
        
        
          $7,080
        
        
        
        
        
        
          $6,801
        
        
        
      
      
        
          Litigation and related accruals (short and long-term)
        
        
        
        
          $6,110
        
        
        
        
        
        
          $28,650
        
        
        
      
      
        
          Convertible subordinated debentures
        
        
        
        
          $55,000
        
        
        
        
        
        
          $70,000
        
        
        
      
      
        
          Stockholders' equity
        
        
        
        
          $92,842
        
        
        
        
        
        
          $84,737
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Year ended
        
      
      
        
        
        
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
        
        
          2007
        
        
           
        
        
          2006
        
      
      
        
          Net cash (used in) provided by:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Operations
        
        
        
        
          ($27,611
        
        
          )
        
        
        
        
          $56,886
        
        
        
      
      
        
        
        
          Investing
        
        
        
        
          $24,434
        
        
        
        
        
        
          ($37,143
        
        
          )
        
      
      
        
        
        
          Financing
        
        
        
        
          ($13,874
        
        
          )
        
        
        
        
          $1,133
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Rewards Network Inc. and Subsidiaries
          
          
            - unaudited- 
          
          
            (amounts in thousands, except per share data, restaurants in 
            the program, average transaction amount and estimated months to 
            consume dining credits portfolio)
          
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
          Q4

          
            2007
          
        
        
           
        
        
          Q3

          
            2007
          
        
        
           
        
        
          Q2

          
            2007
          
        
        
           
        
        
          Q1

          
            2007
          
        
        
           
        
        
          Q4

          
            2006
          
        
      
      
        
          Sales Statistic Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program sales
        
        
        
        
          $52,152
        
        
        
        
        
        
          $51,267
        
        
        
        
        
        
          $50,580
        
        
        
        
        
        
          $ 47,134
        
        
        
        
        
        
          $ 52,737
        
        
        
      
      
        
          Marketing Services Program sales
        
        
        
        
          6,037
        
        
           
        
        
        
        
          5,913
        
        
           
        
        
        
        
          6,242
        
        
           
        
        
        
        
          5,782
        
        
           
        
        
        
        
          5,902
        
        
           
        
      
      
        
          Total sales
        
        
        
        
          $58,189
        
        
        
        
        
        
          $57,180
        
        
        
        
        
        
          $56,822
        
        
        
        
        
        
          $ 52,916
        
        
        
        
        
        
          $ 58,639
        
        
        
      
      
        
          
            Sequential Percentage Change
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program sales
        
        
        
        
          1.7
        
        
          %
        
        
        
        
          1.4
        
        
          %
        
        
        
        
          7.3
        
        
          %
        
        
        
        
          -10.6
        
        
          %
        
        
        
        
          -3.6
        
        
          %
        
      
      
        
          Marketing Services Program sales
        
        
        
        
          2.1
        
        
          %
        
        
        
        
          -5.3
        
        
          %
        
        
        
        
          8.0
        
        
          %
        
        
        
        
          -2.0
        
        
          %
        
        
        
        
          4.3
        
        
          %
        
      
      
        
          Total sales
        
        
        
        
          1.8
        
        
          %
        
        
        
        
          0.63
        
        
          %
        
        
        
        
          7.4
        
        
          %
        
        
        
        
          -9.8
        
        
          %
        
        
        
        
          -2.9
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Merchant Count Trends (period ending):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program merchants
        
        
        
        
          6,488
        
        
        
        
        
        
          6,188
        
        
        
        
        
        
          5,928
        
        
        
        
        
        
          5,707
        
        
        
        
        
        
          6,079
        
        
        
      
      
        
          Marketing Services Program merchants
        
        
        
        
          3,054
        
        
           
        
        
        
        
          3,045
        
        
           
        
        
        
        
          2,745
        
        
           
        
        
        
        
          2,629
        
        
           
        
        
        
        
          2,548
        
        
           
        
      
      
        
          Total merchants
        
        
        
        
          9,542
        
        
        
        
        
        
          9,233
        
        
        
        
        
        
          8,673
        
        
        
        
        
        
          8,336
        
        
        
        
        
        
          8,627
        
        
        
      
      
        
          
            Sequential Percentage Change
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program merchants
        
        
        
        
          4.8
        
        
          %
        
        
        
        
          4.4
        
        
          %
        
        
        
        
          3.9
        
        
          %
        
        
        
        
          -6.1
        
        
          %
        
        
        
        
          -3.3
        
        
          %
        
      
      
        
          Marketing Services Program merchants
        
        
        
        
          0.3
        
        
          %
        
        
        
        
          10.9
        
        
          %
        
        
        
        
          4.4
        
        
          %
        
        
        
        
          3.2
        
        
          %
        
        
        
        
          8.8
        
        
          %
        
      
      
        
          Total merchants
        
        
        
        
          3.3
        
        
          %
        
        
        
        
          6.5
        
        
          %
        
        
        
        
          4.0
        
        
          %
        
        
        
        
          -3.4
        
        
          %
        
        
        
        
          0.0
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Qualified Transaction Amounts Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program
        
        
        
        
          $69,046
        
        
        
        
        
        
          $67,786
        
        
        
        
        
        
          $ 68,872
        
        
        
        
        
        
          $ 66,175
        
        
        
        
        
        
          $ 74,441
        
        
        
      
      
        
          Marketing Services Program
        
        
        
        
          35,330
        
        
           
        
        
        
        
          34,349
        
        
           
        
        
        
        
          36,138
        
        
           
        
        
        
        
          33,355
        
        
           
        
        
        
        
          34,353
        
        
           
        
      
      
        
          Total qualified transaction amounts
        
        
        
        
          $104,376
        
        
        
        
        
        
          $102,135
        
        
        
        
        
        
          $105,010
        
        
        
        
        
        
          $ 99,530
        
        
        
        
        
        
          $ 108,794
        
        
        
      
      
        
          
            Sequential Percentage Change
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program
        
        
        
        
          1.9
        
        
          %
        
        
        
        
          -1.6
        
        
          %
        
        
        
        
          4.1
        
        
          %
        
        
        
        
          -11.1
        
        
          %
        
        
        
        
          -4.7
        
        
          %
        
      
      
        
          Marketing Services Program
        
        
        
        
          2.9
        
        
          %
        
        
        
        
          -5.0
        
        
          %
        
        
        
        
          8.3
        
        
          %
        
        
        
        
          -2.9
        
        
          %
        
        
        
        
          2.9
        
        
          %
        
      
      
        
          Total qualified transaction amounts
        
        
        
        
          2.2
        
        
          %
        
        
        
        
          -2.7
        
        
          %
        
        
        
        
          5.5
        
        
          %
        
        
        
        
          -8.5
        
        
          %
        
        
        
        
          -2.4
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Sales Yield Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing Credits Program sales yield
        
        
        
        
          75.5
        
        
          %
        
        
        
        
          75.6
        
        
          %
        
        
        
        
          73.4
        
        
          %
        
        
        
        
          71.2
        
        
          %
        
        
        
        
          70.8
        
        
          %
        
      
      
        
          Marketing Services Program sales yield
        
        
        
        
          17.1
        
        
          %
        
        
        
        
          17.2
        
        
          %
        
        
        
        
          17.3
        
        
          %
        
        
        
        
          17.3
        
        
          %
        
        
        
        
          17.2
        
        
          %
        
      
      
        
          Total sales yield
        
        
        
        
          55.8
        
        
          %
        
        
        
        
          56.0
        
        
          %
        
        
        
        
          54.1
        
        
          %
        
        
        
        
          53.2
        
        
          %
        
        
        
        
          53.9
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Member Activity Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Member accounts active last 12 months
        
        
        
        
          3,007
        
        
        
        
        
        
          3,016
        
        
        
        
        
        
          3,070
        
        
        
        
        
        
          3,179
        
        
        
        
        
        
          3,319
        
        
        
      
      
        
          Number of qualified transactions during quarter
        
        
        
        
          2,182
        
        
        
        
        
        
          2,167
        
        
        
        
        
        
          2,170
        
        
        
        
        
        
          2,085
        
        
        
        
        
        
          2,271
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of Dining Credits Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cost of dining credits
        
        
        
        
          $29,002
        
        
        
        
        
        
          $28,349
        
        
        
        
        
        
          $ 28,077
        
        
        
        
        
        
          $ 26,189
        
        
        
        
        
        
          $ 29,261
        
        
        
      
      
        
          Cost as % of Marketing Credits Program sales
        
        
        
        
          55.6
        
        
          %
        
        
        
        
          55.3
        
        
          %
        
        
        
        
          55.5
        
        
          %
        
        
        
        
          55.6
        
        
          %
        
        
        
        
          55.5
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Dining Credits Portfolio and Allowance Trends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Ending gross dining credits portfolio
        
        
        
        
          $116,137
        
        
        
        
        
        
          $ 112,418
        
        
        
        
        
        
          $ 104,910
        
        
        
        
        
        
          $ 94,071
        
        
        
        
        
        
          $ 88,576
        
        
        
      
      
        
          Ending net dining credits portfolio
        
        
        
        
          $ 94,880
        
        
        
        
        
        
          $ 91,692
        
        
        
        
        
        
          $ 87,171
        
        
        
        
        
        
          $ 79,283
        
        
        
        
        
        
          $ 76,366
        
        
        
      
      
        
          Net write-offs (recoveries) - gross write-offs less recoveries
        
        
        
        
          $1,631
        
        
        
        
        
        
          ($496
        
        
          )
        
        
        
        
          ($174
        
        
          )
        
        
        
        
          ($453
        
        
          )
        
        
        
        
          $1,287
        
        
        
      
      
        
          Ending allowance for dining credits losses
        
        
        
        
          $ 21,257
        
        
        
        
        
        
          $ 20,726
        
        
        
        
        
        
          $ 17,739
        
        
        
        
        
        
          $ 14,788
        
        
        
        
        
        
          $ 12,210
        
        
        
      
      
        
          Allowance as % of gross dining credits
        
        
        
        
          18.3
        
        
          %
        
        
        
        
          18.4
        
        
          %
        
        
        
        
          16.9
        
        
          %
        
        
        
        
          15.7
        
        
          %
        
        
        
        
          13.8
        
        
          %
        
      
      
        
          
            Estimated months to consume gross dining credits (a)
          
        
        
        
        
          12.0
        
        
        
        
        
        
          11.9
        
        
        
        
        
        
          11.2
        
        
        
        
        
        
          10.8
        
        
        
        
        
        
          9.1
        
        
        
      
      
        
          
            Estimated months to consume net dining credits (a)
          
        
        
        
        
          9.8
        
        
        
        
        
        
          9.7
        
        
        
        
        
        
          9.3
        
        
        
        
        
        
          9.1
        
        
        
        
        
        
          7.8
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            (a) Calculated as Ending Dining Credits Portfolio / (Quarterly 
            Cost of Dining Credits / 3)