Rewards network posts positive results
Rewards Network, a provider of marketing services and frequent dining programs to the restaurant industry, today reported its financial results for the year and fourth quarter ended December 31, 2008.
Rewards Network reported total sales of $244.9 million and net revenues of $74.2 million for 2008, an increase of 8.8% and 15.0%, respectively as compared to 2007. Rewards Network ended 2008 with 9,888 merchants, a 3.6% increase over the prior year.
Operating expenses decreased in 2008 as compared to 2007, excluding the favorable impact of litigation expense adjustments. During 2008, the Company generated $32.4 million of cash from operations and also funded approximately $140 million of new dining credits.
The net dining credits usage period declined to 7.5 months at the end of 2008, as compared to 9.8 months at the end of 2007 as the Company sought to increase cash flow and manage the risk profile of the dining credits portfolio. The Company ended 2008 free of debt, with $9.0 million of cash on hand and $25.0 million available under its revolving line of credit.