Neustar announced recently the financial results for the fourth quarter of 2011 and year ended December 31,2011 .
You can read the press release after the jump :"Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, entertainment, advertising and marketing industries, today announced results for the quarter and year ended December 31, 2011 and provided guidance for 2012.
Summary of Consolidated Fourth Quarter Results Compared to Fourth Quarter of 2010
Revenue increased 27% to $174.2 million
Income from continuing operations totaled $18.7 million, or $0.26 per diluted share
Adjusted net income from continuing operations increased 7% to $37.0 million, representing a margin of 21%
Adjusted net income from continuing operations per diluted share increased 11% to $0.51
Summary of Consolidated 2011 Results Compared to 2010
Revenue increased 19% to $620.5 million
Income from continuing operations totaled $123.6 million, or $1.66 per diluted share
Adjusted net income from continuing operations increased 16% to $159.0 million, representing a margin of 26%
Adjusted net income from continuing operations per diluted share increased 18% to $2.13
Share repurchases totaled $324.3 million or 10.1 million shares
“Neustar made significant progress across the board in 2011, from our financial performance to implementing our strategies through both organic and inorganic successes,” said Lisa Hook, Neustar’s president and chief executive officer. “We continued to deliver strong revenue growth, margins and cash flow, while increasing our scale and strengthening our position as a neutral and trusted provider of services to an expanding number of customers and industries. Our actions in 2011 have enhanced our ability to generate profitability and shareholder value.”
Paul Lalljie, Neustar’s chief financial officer added, “Neustar’s acquisition of TARGUSinfo was the culmination of a successful year in which we delivered double-digit revenue growth with strong margins. We improved our capital structure by securing $600 million of low-cost debt and repurchasing 10.1 million shares of our common stock. Our 2012 guidance reflects our strong momentum and the ongoing integration of TARGUSinfo as we leverage our platforms to achieve long-term revenue growth.”
Business Outlook for 2012
Revenue to range from $810 million to $830 million
Adjusted net income from continuing operations to range from $178 million to $190 million
Adjusted net income from continuing operations per diluted share to range from $2.66 to $2.84
Discussion of Fourth Quarter and Full-Year 2011 Results
Fourth Quarter Revenue
Consolidated revenue totaled $174.2 million, a 27% increase from $136.9 million in the fourth quarter of 2010. This increase consisted of growth in Carrier Services and Enterprise Services and the addition of revenue from the Company’s Information Services business segment.
Carrier Services revenue totaled $113.3 million, a 14% increase from $99.7 million in 2010. This increase was primarily due to a $10.9 million increase in revenue under the Company's contracts to provide NPAC Services. Additionally, Order Management Services revenue increased $3.5 million due to greater customer usage and the addition of licensed order management services;
Enterprise Services revenue totaled $39.7 million, a 7% increase from $37.1 million in 2010. Registry Services increased $1.4 million due to the number of common short codes under management, and Internet Infrastructure Services revenue increased $1.2 million due to the expansion of DNS solutions, including IP geolocation services; and
Information Services generated revenue of $21.2 million from the date of acquisition through the end of the year.
Full-Year Revenue
Consolidated revenue totaled $620.5 million, a 19% increase from $520.9 million in 2010. This increase consisted of growth in Carrier Services and Enterprise Services and the addition of revenue from the Company’s Information Services business segment.
Carrier Services revenue totaled $447.9 million, a 14% increase from $391.8 million in 2010. This increase was primarily due to a $43.5 million increase in revenue under the Company's contracts to provide NPAC Services. Additionally, Order Management Services revenue increased $16.0 million due to greater customer usage and the addition of licensed order management services. These increases were partially offset by a decrease in revenue from customer requests for functionality improvements;
Enterprise Services revenue totaled $151.4 million, a 17% increase from $129.1 million in 2010. Internet Infrastructure Services increased $13.9 million due to the expansion of DNS solutions, including IP geolocation services. Registry Services increased $8.4 million due to the number of common short codes under management; and
Information Services generated revenues of $21.2 million from the date of acquisition through the end of the year.
Operating expense for the fourth quarter totaled $134.8 million, a 59% increase from $84.7 million in 2010.
This increase in operating expense was primarily driven by the impact of the Company’s two acquisitions completed in 2011. In particular, total personnel and personnel-related expense increased $26.9 million due primarily to a $5.0 million increase in stock-based compensation and additional costs associated with an increased number of employees resulting from acquisitions completed in 2011. Total contractor and professional fees increased $13.9 million, primarily due to acquisition-related costs and expenses associated with the Company’s tender offer. In addition, depreciation and amortization increased $8.2 million related to capital asset additions to support the Company’s expanded service offerings and acquired intangible assets.
Operating expense for 2011 totaled $411.4 million, a 31% increase from $315.1 million in 2010. This increase in operating expense was driven by the impact of the Company’s two acquisitions completed in 2011. In particular, total personnel and personnel-related expense increased $49.4 million due in part to a $10.4 million increase in stock-based compensation and increased costs associated with the addition of nearly 500 employees resulting from acquisitions completed in 2011. Total contractor and professional fees increased $22.5 million, primarily due to an increase in acquisition-related costs and expenses associated with the Company’s tender offer. In addition, depreciation and amortization increased $13.3 million related to capital asset additions to support the Company’s expanded service offerings and acquired intangible assets.
Cash, cash equivalents and investments totaled $135.3 million as of December 31, 2011, a decrease of $247.1 million from $382.4 million as of December 31, 2010. This decrease was primarily due to the acquisitions of TARGUSinfo and certain numbering solutions assets from Evolving Systems. In addition, the Company repurchased 10.1 million shares for a total of $324.3 million. These uses of cash were partially offset by proceeds from the Company’s $600 million senior secured term loan and cash generated from operations."