News Column

Neustar Posts Results for Fourth Quarter and Full-Year 2013

February 3, 2014

Neustar, Inc. , a neutral provider of real-time information services and analytics, announced results for the quarter and year ended December 31, 2013 and provided guidance for 2014. In a release on January 29 , the Company noted that results for 2013 compared to 2012 include: -Revenue increased 8 percent to $902.0 million -Non-NPAC revenue increased 10 percent to $464.6 million -Net income increased 4 percent to $162.8 million , or $2.46 per share, an increase of 7 percent -Adjusted net income increased 13 percent to $233.5 million , or $3.53 per share, an increase of 16 percent Results for Fourth Quarter 2013 Compared to Fourth Quarter 2012 -Revenue increased 11 percent to $237.6 million -Non-NPAC revenue increased 15 percent to $128.3 million -Net income increased 1 percent to $38.1 million , or $0.59 per share, an increase of 5 percent -Adjusted net income increased 19 percent to $60.2 million , or $0.94 per share, an increase of 25 percent "We made significant progress on our 2013 priorities. We delivered strong financial results, made investments to further our strategic objectives and aligned our organization to be client focused," said Lisa Hook , Neustar's President and Chief Executive Officer. "We will continue to build on this progress, and remain confident in our prospects for growth and profitability in 2014 as we execute our strategy." Paul Lalljie , Neustar's Chief Financial Officer added, "Our full- year and fourth quarter results continue to demonstrate our strong business fundamentals. We generated double-digit revenue and adjusted net income growth in the fourth quarter, and we continued to generate strong free cash flow. In addition, we reduced our annual interest expense by $10 million through refinancing our outstanding debt and we bought back $285 million of our stock. In 2014, we will continue to focus on revenue growth, profits, and share repurchases." Neustar's Business Outlook excludes the impact of contemplated share repurchases. -Revenue to range from $945 million to $970 million or growth of 5 percent to 8 percent -Adjusted net income to range from $233 million to $243 million or flat to growth of 4 percent -Adjusted net income per share is expected to range from $3.64 to $3.80 , representing growth of 3 percent to 8 percent Revenue for the year totaled $902.0 million , an 8 percent increase from $831.4 million in 2012. This increase was due to stronger demand for our Marketing Services and Data Services and an increase in NPAC fixed-fee revenue in Data Registries. Operating expense for 2013 totaled $612.7 million , a 10 percent increase from $554.7 million in 2012. This increase was driven by investments to support business growth. In particular, personnel and personnel-related expense increased $24.5 million driven by stock- based compensation expense and increased headcount. In addition, professional fees increased to pursue new business opportunities and advertising and marketing costs increased to promote awareness of the company's services. The Company also noted, revenue for the fourth quarter totaled $237.6 million , an 11 percent increase from $214.2 million in 2012. This increase was due to stronger demand for our Marketing Services and Data Services and an increase in NPAC fixed-fee revenue in Data Registries. Operating expense for the fourth quarter totaled $174.3 million , a 20 percent increase from $144.9 million in 2012. The increase was primarily driven by the addition of $12.0 million in operating expenses associated with inorganic opportunities in 2013. Excluding these expenses, operating expense for the fourth quarter would have increased 12 percent. In particular, personnel and personnel- related expense increased as a result of higher headcount to support the expansion of the company's operations and an increase in stock- based compensation. In addition, professional fees increased to pursue new business opportunities. As of December 31, 2013 , cash, cash equivalents and investments totaled $223.3 million , a decrease of $120.6 million from $343.9 million as of December 31, 2012 . This decrease primarily reflects share repurchases of $285.3 million and $105.4 million for acquired platforms, offset by the generation of $287.9 million from operations. As of December 31, 2013 , the company's outstanding debt under its term facility and 4.5 percent senior notes was $616.3 million . Neustar, Inc. is a trusted, neutral provider of real-time information and analytics to the communications services, financial services, retail, and media and advertising sectors. More information: neustar.biz ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Professional Services Close - Up


Story Tools