Delaware | 001-32548 | 52-2141938 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
Of incorporation) | File Number) | Identification No.) |
21575 Ridgetop Circle Sterling, Virginia | 20166 | |
(Address of principal executive offices) | (Zip Code) |
Exhibit Number | Description | |
99.1 | Earnings Release of Neustar, dated February 2, 2017. | |
NeuStar, Inc. | |||||
Date: | February 2, 2017 | By: | /s/ Paul S. Lalljie | ||
Name: Paul S. Lalljie | |||||
Title: Chief Financial Officer (Principal Financial and Accounting Officer and Duly Authorized Officer) |
Exhibit Number | Description | |
99.1 | Earnings Release of Neustar, dated February 2, 2017. |
• | Revenue increased 15% to $1,209.8 million |
• | Marketing Services revenue increased 58% to $269.1 million |
• | Security Services revenue increased 22% to $204.1 million |
• | Net income decreased 4% to $168.6 million, and on a per share basis decreased 3% to $3.04 |
• | Adjusted EBITDA increased 14% to $538.3 million, a margin of 44% |
• | Adjusted net income increased 17% to $315.6 million, and on a per share basis increased 18% to $5.69 |
• | Revenue increased 16% to $324.9 million |
• | Marketing Services revenue increased 65% to $84.2 million |
• | Security Services revenue increased 23% to $55.1 million |
• | Net income increased 36% to $46.1 million, and on a per share basis increased 32% to $0.82 |
• | Adjusted EBITDA increased 37% to $152.7 million, a margin of 47% |
• | Adjusted net income decreased 8% to $77.9 million, and on a per share basis decreased 10% to $1.38 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||
(unaudited) | (audited) | (unaudited) | |||||||||||||
Revenue | $ | 280,150 | $ | 324,903 | $ | 1,049,958 | $ | 1,209,847 | |||||||
Operating expense: | |||||||||||||||
Cost of revenue (excluding depreciation and amortization shown separately below) | 87,419 | 93,956 | 286,236 | 369,104 | |||||||||||
Sales and marketing | 59,705 | 55,128 | 206,292 | 215,563 | |||||||||||
Research and development | 7,217 | 9,309 | 25,677 | 28,159 | |||||||||||
General and administrative | 40,645 | 28,898 | 118,648 | 111,694 | |||||||||||
Depreciation and amortization | 33,057 | 37,069 | 122,691 | 164,081 | |||||||||||
Restructuring charges | 3,858 | 3,290 | 3,858 | 14,712 | |||||||||||
Separation costs | — | 8,159 | — | 14,512 | |||||||||||
231,901 | 235,809 | 763,402 | 917,825 | ||||||||||||
Income from operations | 48,249 | 89,094 | 286,556 | 292,022 | |||||||||||
Other (expense) income: | |||||||||||||||
Interest and other expense | (13,600 | ) | (13,934 | ) | (33,578 | ) | (68,915 | ) | |||||||
Interest income | 250 | 49 | 552 | 340 | |||||||||||
Income before income taxes | 34,899 | 75,209 | 253,530 | 223,447 | |||||||||||
Provision for income taxes | 991 | 29,090 | 78,068 | 54,801 | |||||||||||
Net income | $ | 33,908 | $ | 46,119 | $ | 175,462 | $ | 168,646 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.64 | $ | 0.84 | $ | 3.21 | $ | 3.10 | |||||||
Diluted | $ | 0.62 | $ | 0.82 | $ | 3.14 | $ | 3.04 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 53,159 | 54,695 | 54,643 | 54,413 | |||||||||||
Diluted | 54,689 | 56,265 | 55,904 | 55,516 |
December 31, | |||||||
2015 | 2016 | ||||||
(audited) | (unaudited) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 89,097 | $ | 45,773 | |||
Restricted cash | 2,363 | 2,283 | |||||
Accounts receivable, net | 167,593 | 207,595 | |||||
Unbilled receivables | 17,712 | 19,795 | |||||
Prepaid expenses and other current assets | 30,216 | 41,680 | |||||
Deferred costs | 6,676 | 11,469 | |||||
Income taxes receivable | 5,883 | 13,586 | |||||
Total current assets | 319,540 | 342,181 | |||||
Property and equipment, net | 147,764 | 145,821 | |||||
Goodwill | 1,186,983 | 1,168,982 | |||||
Intangible assets, net | 529,279 | 423,957 | |||||
Other assets, long-term | 18,681 | 17,771 | |||||
Total assets | $ | 2,202,247 | $ | 2,098,712 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 28,392 | $ | 21,095 | |||
Accrued expenses | 134,632 | 134,545 | |||||
Deferred revenue | 91,006 | 91,188 | |||||
Notes payable | 131,272 | 103,725 | |||||
Capital lease obligations | 4,791 | 1,457 | |||||
Other liabilities | 10,875 | 11,632 | |||||
Total current liabilities | 400,968 | 363,642 | |||||
Deferred revenue, long-term | 22,998 | 22,437 | |||||
Notes payable, long-term | 957,509 | 702,946 | |||||
Capital lease obligations, long-term | 1,831 | — | |||||
Deferred income tax liabilities, long-term | 38,701 | 35,088 | |||||
Other liabilities, long-term | 56,741 | 53,298 | |||||
Total liabilities | 1,478,748 | 1,177,411 | |||||
Total stockholders’ equity | 723,499 | 921,301 | |||||
Total liabilities and stockholders’ equity | $ | 2,202,247 | $ | 2,098,712 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2016 | 2015(1) | 2016 | ||||||||||||
(in thousands, except per share data) (unaudited) | |||||||||||||||
Revenue | $ | 280,150 | $ | 324,903 | $ | 1,049,958 | $ | 1,209,847 | |||||||
Net income | $ | 33,908 | $ | 46,119 | $ | 175,462 | $ | 168,646 | |||||||
Add: Stock-based compensation | 12,855 | 10,787 | 40,966 | 42,874 | |||||||||||
Add: Amortization of acquired intangible assets | 18,632 | 21,649 | 66,591 | 94,042 | |||||||||||
Add: Impairment of long-lived assets | — | — | — | 11,104 | |||||||||||
Add: Loss on debt modification and extinguishment(2) | 3,326 | — | 3,326 | 6,354 | |||||||||||
Add: Restructuring charges(3) | 3,858 | 3,290 | 3,858 | 14,712 | |||||||||||
Add: Acquisition and integration related costs(4) | 13,340 | 4 | 19,232 | 4,730 | |||||||||||
Add: Separation costs(5) | — | 8,159 | — | 14,512 | |||||||||||
Add: Merger-related costs(6) | — | 4,836 | — | 4,836 | |||||||||||
Less: Adjustment for provision for income taxes(7) | (1,437 | ) | (16,976 | ) | (39,984 | ) | (46,188 | ) | |||||||
Adjusted net income | $ | 84,482 | $ | 77,868 | $ | 269,451 | $ | 315,622 | |||||||
Adjusted net income margin (8) | 30 | % | 24 | % | 26 | % | 26 | % | |||||||
Adjusted net income per diluted share | $ | 1.54 | $ | 1.38 | $ | 4.82 | $ | 5.69 | |||||||
Weighted average common shares outstanding - diluted | 54,689 | 56,265 | 55,904 | 55,516 | |||||||||||
Net income | $ | 33,908 | $ | 46,119 | $ | 175,462 | $ | 168,646 | |||||||
Add: Provision for income taxes | 991 | 29,090 | 78,068 | 54,801 | |||||||||||
Add: Interest expense | 8,888 | 13,437 | 28,209 | 61,155 | |||||||||||
Add: Loss on debt modification and extinguishment(2) | 3,326 | — | 3,326 | 6,354 | |||||||||||
Add: Depreciation and amortization(9) | 33,057 | 37,069 | 122,691 | 152,977 | |||||||||||
Add: Impairment of long-lived assets | — | — | — | 11,104 | |||||||||||
Add: Non-cash other (income) and expense, net(10) | 1,473 | (11 | ) | 1,935 | 1,957 | ||||||||||
Add: Stock-based compensation | 12,855 | 10,787 | 40,966 | 42,874 | |||||||||||
Add: Restructuring charges(3) | 3,858 | 3,290 | 3,858 | 14,712 | |||||||||||
Add: Acquisition and integration related costs(4) | 13,340 | 4 | 19,232 | 4,730 | |||||||||||
Add: Separation costs(5) | — | 8,159 | — | 14,512 | |||||||||||
Add: Merger-related costs(6) | — | 4,836 | — | 4,836 | |||||||||||
Less: Interest income | (250 | ) | (49 | ) | (552 | ) | (340 | ) | |||||||
Adjusted EBITDA | $ | 111,446 | $ | 152,731 | $ | 473,195 | $ | 538,318 | |||||||
Adjusted EBITDA margin(11) | 40 | % | 47 | % | 45 | % | 44 | % |
(1) | The amounts expressed in this column are derived from the company’s audited consolidated financial statements for the year ended December 31, 2015. |
(2) | Amounts represent loss on debt modification and extinguishment related to the amendment of the company’s 2013 Credit Facilities on December 9, 2015 and the Amended 2013 Credit Facilities on September 28, 2016. |
(3) | Amounts represent restructuring charges related to the termination of certain employees. |
(4) | Amounts represent costs incurred by the company in connection with completed acquisitions and related integration activities. |
(5) | Amounts represent costs incurred by the company in connection with the formerly proposed separation into two independent publicly-traded companies. These costs include professional fees for outside advisory services including legal, finance, accounting and related services. |
(6) | Amounts represent costs incurred by the company in connection with the proposed merger pursuant to which Neustar will be acquired by a private investment group led by Golden Gate Capital. These costs include professional fees for outside advisory services including legal, finance, accounting and related services. |
(7) | Adjustments reflect the estimated impact of income taxes on the non-GAAP adjustments (stock-based compensation, amortization of acquired intangible assets, impairment of long-lived assets, loss on debt modification and extinguishment, restructuring charges, separation costs and tax deductible acquisition related costs, and integration related costs). The estimated impact of income taxes on these non-GAAP adjustments was determined using the effective tax rate for the applicable period, including all discrete tax items. Excluding all discrete tax items, our effective tax rate was approximately 35.4% and 36.5% for the three months ended December 31, 2015 and 2016, respectively, and 35.4% and 36.5% for the years ended December 31, 2015 and 2016, respectively. |
(8) | Adjusted net income margin is a measure of adjusted net income as a percentage of revenue. |
(9) | Amounts exclude impairment of long-lived assets. |
(10) | Amounts represent (gain)/loss on foreign currency transactions, (gain)/loss on asset disposals and non-cash (gain)/loss resulting from certain transactions. |
(11) | Adjusted EBITDA margin is a measure of adjusted EBITDA as a percentage of revenue. |
Investor Relations Contact: Dave Angelicchio (571) 434-3443 InvestorRelations@neustar.biz | Press Contact: Carolin Bachmann (415) 659-6466 PR@neustar.biz |
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