TransUnion (NYSE:TRU) (the “Company”) today announced financial
results for the quarter ended June 30, 2017.
Total revenue was $475 million, an increase of
12 percent (11 percent on a constant currency basis) compared with
the second quarter of 2016. Acquisitions accounted for a 1 percent
increase in revenue. Net income attributable to TransUnion was $65
million compared with $17 million in the second quarter of 2016.
Diluted earnings per share was $0.34 compared with $0.09 in the
second quarter of 2016.
Adjusted EBITDA was $186 million, an increase of
17 percent (16 percent on a constant currency basis) compared with
the second quarter of 2016. Adjusted EBITDA margin was 39.2
percent, an increase of 170 basis points compared with the second
quarter of 2016. Adjusted Diluted Earnings per Share was $0.47, an
increase of 26 percent compared with the second quarter of
2016.
“TransUnion delivered another strong quarter,
highlighted by double-digit revenue, Adjusted EBITDA and Adjusted
EPS growth while continuing to expand Adjusted EBITDA margin,” said
Jim Peck, TransUnion's president and chief executive officer.
“We continue to see broad-based, innovation-driven growth across
the company, and we are making strategic investments for future
growth. Given our performance in the first half, we feel confident
about the rest of the year and our long-term outlook.”
“We also announced today that, effective August
18, Al Hamood, our CFO for nearly 10 years, is leaving to pursue
other opportunities. Al has done an outstanding job in his tenure
at TransUnion and has been a great friend and partner to me as
we’ve transformed the company. I want to thank Al for all of his
contributions and wish him well in his new endeavor,” Peck
said.
“We’re very excited to announce that Todd Cello
has been named our new CFO. Todd has been with TransUnion for
almost 20 years and has been the CFO of both our USIS and
International segments as well as VP, Strategic and Financial
Planning through our changes in ownership. Todd has distinguished
himself as a strong, thoughtful leader with highly valuable
operating and corporate experience. Through our succession planning
process we have been preparing Todd for this role. I have no doubt
he will continue to do an excellent job,” Peck concluded.
Second Quarter 2017 Segment Results
U.S. Information Services (USIS)
USIS revenue was $298 million, an increase of 16
percent compared with the second quarter of 2016.
- Online Data Services revenue was $191 million, an increase of
13 percent over the prior year.
- Marketing Services revenue was $46 million, an increase of 23
percent over the prior year.
- Decision Services revenue was $61 million, an increase of 20
percent over the prior year.
Operating income was $84 million, an increase of
102 percent compared with the second quarter of 2016. Adjusted
Operating Income was $110 million, an increase of 26 percent
compared with the second quarter of 2016.
International
International revenue was $87 million, an
increase of 13 percent (10 percent on a constant currency basis)
compared with the second quarter of 2016.
- Developed markets revenue was $31 million, an increase of 11
percent (15 percent on a constant currency basis) over the prior
year.
- Emerging markets revenue was $56 million, an increase of 13
percent (8 percent on a constant currency basis) over the prior
year.
Operating income was $13 million, an increase of
56 percent compared with the second quarter of 2016. Adjusted
Operating Income was $27 million, an increase of 12 percent (11
percent on a constant currency basis) compared with the second
quarter of 2016.
Consumer Interactive
Consumer Interactive revenue was $105 million, a
decrease of 1 percent compared with the second quarter of 2016.
Operating income was $50 million, an increase of
14 percent compared with the second quarter of 2016. Adjusted
Operating Income was $51 million, an increase of 13 percent
compared with the second quarter of 2016.
Liquidity and Capital Resources
Cash and cash equivalents were at $142 million
June 30, 2017 and $182 million at December 31, 2016. Total debt,
including the current portion of long-term debt, remained
relatively flat at $2.4 billion at June 30, 2017 compared with
December 31, 2016.
For the six months ended June 30, 2017, cash
provided by operating activities increased to $174 million compared
with $150 million for the same period in 2016 due primarily to the
increase in operating performance. Cash used in investing
activities was $105 million compared with $323 million for the same
period in 2016 due primarily to a decrease in cash used for
acquisitions and an increase in investment proceeds. Capital
expenditures were $58 million compared with $55 million for the
same period in 2016. Cash used in financing activities was $110
million compared with a source of cash of $181 million for the same
period in 2016. The change was primarily due to lower borrowings
and the purchase of treasury stock in 2017 compared with the same
period in 2016.
2017 Full Year Outlook
For the full year of 2017, we are raising our
revenue, Adjusted EBITDA and Adjusted Diluted Earnings per Share
guidance as follows. Consolidated revenue is expected to be between
$1.87 billion and $1.88 billion, an increase of 9 to 10 percent on
a constant currency basis. Adjusted EBITDA is expected to be
between $730 million and $740 million, an increase of 15 to 16
percent. Adjusted Diluted Earnings per Share is expected to be
between $1.79 and $1.82, an increase of 19 to 21 percent.
Consistent with our previous full year guidance,
the full year revenue guidance includes approximately 1 percent
growth from acquisitions, with no significant impact on revenue and
Adjusted EBITDA from foreign exchange rates.
2017 Third Quarter Outlook
For the third quarter of 2017, consolidated
revenue is expected to be between $470 million and $475 million, an
increase of 7 to 8 percent on a constant currency basis compared
with the third quarter of 2016. Adjusted EBITDA is expected to be
between $185 million and $189 million, an increase of 11 to 14
percent. Adjusted Diluted Earnings per Share is expected to be
between $0.45 and $0.46, an increase of 21 to 24 percent.
The third quarter revenue guidance has no
significant impact from acquisitions, with no significant impact on
revenue and Adjusted EBITDA from foreign exchange rates.
Earnings Webcast Details
In conjunction with this release, TransUnion
will host a conference call and webcast today at 8:00 a.m. Central
Time to discuss the business results for the quarter and certain
forward-looking information. This session may be accessed at
www.transunion.com/tru. A replay of the call will also be available
at this website following the conclusion of the call.
Chief Financial Officer
TransitionOn July 21, 2017, Samuel A. Hamood, Executive
Vice President and Chief Financial Officer, tendered his
resignation from all positions with TransUnion and its
subsidiaries, effective as of August 18, 2017. Also on July 21,
2017, the Board of Directors accepted Mr. Hamood’s resignation and
appointed Todd M. Cello to succeed Mr. Hamood as Executive Vice
President and Chief Financial Officer, effective as of August 18,
2017. Mr. Cello joined TransUnion in 1997 as a staff accountant and
has served in a number of roles within the company’s Finance
function, including as the chief financial officer of our USIS
segment from 2005 through 2008, and as our Vice President –
Strategic and Financial Planning from 2009 through 2015, before
taking on his current role in 2015 as the chief financial officer
of our International segment. Please see our Form 8-K filed with
the SEC on July 25, 2017 for additional details.
About TransUnion
TransUnion is a leading global risk and
information solutions provider to businesses and consumers. The
Company provides consumer reports, risk scores, analytical services
and decisioning capabilities to businesses. Businesses embed its
solutions into their process workflows to acquire new customers,
assess consumer ability to pay for services, identify cross-selling
opportunities, measure and manage debt portfolio risk, collect
debt, verify consumer identities and investigate potential fraud.
Consumers use its solutions to view their credit profiles and
access analytical tools that help them understand and manage their
personal information and take precautions against identity theft.
www.transunion.com
Availability of Information on TransUnion’s
Website
Investors and others should note that TransUnion
routinely announces material information to investors and the
marketplace using SEC filings, press releases, public conference
calls, webcasts and the TransUnion Investor Relations website.
While not all of the information that the Company posts to the
TransUnion Investor Relations website is of a material nature, some
information could be deemed to be material. Accordingly, the
Company encourages investors, the media, and others interested in
TransUnion to review the information that it shares on
www.transunion.com/tru.
Non-GAAP Financial Measures
This earnings release presents certain growth
rates on Schedule 1 assuming foreign currency exchange rates are
consistent between years. This allows financial results to be
evaluated without the impact of fluctuations in foreign currency
exchange rates. This earnings release also presents Adjusted
EBITDA, Adjusted EBITDA Margin, segment Adjusted Operating Income,
segment Adjusted Operating Margin, Adjusted Effective Tax Rate,
Adjusted Net Income (Loss) and Adjusted Diluted Earnings per Share.
These are important financial measures for the Company but are not
financial measures as defined by GAAP. We present these financial
measures as supplemental measures of our operating performance
because we believe they provide meaningful information regarding
our performance and provide a basis to compare operating results
between periods. We present Adjusted Operating Income, Adjusted
EBITDA and Adjusted Net Income as supplemental measures of our
operating performance because these measures eliminate the impact
of certain items that we do not consider indicative of our cash
operations and ongoing operating performance. Also, Adjusted EBITDA
is a measure frequently used by securities analysts, investors and
other interested parties in their evaluation of the operating
performance of companies similar to ours. In addition, our board of
directors and executive management team use Adjusted EBITDA as a
compensation measure. Furthermore, under the credit agreement
governing our senior secured credit facility, our ability to engage
in activities such as incurring additional indebtedness, making
investments and paying dividends is tied to a ratio based on
Adjusted EBITDA. These financial measures should be reviewed in
conjunction with the relevant GAAP financial measures and are not
presented as alternative measures of GAAP. Other companies in our
industry may define or calculate these measures differently than we
do, limiting their usefulness as comparative measures. Because of
these limitations, these non-GAAP financial measures should not be
considered in isolation or as substitutes for performance measures
calculated in accordance with GAAP, including operating income,
operating margin, effective tax rate, net income (loss)
attributable to the Company, earnings per share or cash provided by
operating activities. Reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
are presented in the attached Schedules.
Adjusted EBITDA is defined as net income (loss)
attributable to TransUnion plus net interest expense, plus (less)
provision (benefit) for income taxes, plus depreciation and
amortization, plus stock-based compensation, plus mergers and
acquisitions, divestitures and business optimization expenses, plus
technology transformation expenses, plus (less) certain other
expenses (income). Adjusted Operating Income is defined as
operating income plus stock-based compensation, plus mergers and
acquisitions, divestitures and business optimization expenses, plus
technology transformation expenses, plus (less) certain other
expenses (income), plus amortization of certain intangible assets.
Adjusted Effective Tax Rate is defined as adjusted provision for
income taxes divided by adjusted income before income taxes.
Adjusted Net Income is defined as net income (loss) attributable to
TransUnion plus stock-based compensation, plus mergers and
acquisitions, divestitures and business optimization expenses, plus
technology transformation expenses, plus (less) certain other
expenses (income), plus amortization of certain intangible assets,
plus or minus changes in provision for income taxes. Adjusted
Earnings per Share is defined as Adjusted Net Income divided by
weighted-average shares outstanding.
Forward-Looking Statements
This earnings release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on the current
beliefs and expectations of TransUnion’s management and are subject
to significant risks and uncertainties. Actual results may differ
materially from those described in the forward-looking statements.
Any statements made in this earnings release that are not
statements of historical fact, including statements about our
beliefs and expectations, are forward-looking statements. These
statements often include words such as “anticipate,” “expect,”
“suggest,” “plan,” “believe,” “intend,” “estimate,” “target,”
“project,” “should,” “could,” “would,” “may,” “will,” “forecast,”
“outlook,” “potential,” “continues,” “seeks,” “predicts,” or the
negative of these words and other similar expressions. Factors that
could cause actual results to differ materially from those
described in the forward-looking statements include macroeconomic
and industry trends and adverse developments in the debt, consumer
credit and financial services markets; our ability to provide
competitive services and prices; our ability to retain or renew
existing agreements with large or long-term customers; our ability
to maintain the security and integrity of our data; our ability to
deliver services timely without interruption; our ability to
maintain our access to data sources; government regulation and
changes in the regulatory environment; litigation or regulatory
proceedings; regulatory oversight of “critical activities”; our
ability to effectively manage our costs; economic and political
stability in the United States and international markets where we
operate; our ability to effectively develop and maintain strategic
alliances and joint ventures; our ability to timely develop new
services and the market’s willingness to adopt our new services;
our ability to manage and expand our operations and keep up with
rapidly changing technologies; our ability to make acquisitions and
integrate the operations of acquired businesses; our ability to
protect and enforce our intellectual property, trade secrets and
other forms of unpatented intellectual property; our ability to
defend our intellectual property from infringement claims by third
parties; the ability of our outside service providers and key
vendors to fulfill their obligations to us; further consolidation
in our end-customer markets; the increased availability of free or
inexpensive consumer information; losses against which we do not
insure; our ability to make timely payments of principal and
interest on our indebtedness; our ability to satisfy covenants in
the agreements governing our indebtedness; our ability to maintain
our liquidity; share repurchase plans; our reliance on key
management personnel; our controlling stockholders; and other
one-time events and other factors that can be found in our Annual
Report on Form 10-K for the year ended December 31, 2016, and any
subsequent Quarterly Report on Form 10-Q or Current Report on Form
8-K, which are filed with the Securities and Exchange Commission
and are available on TransUnion’s website (www.transunion.com/tru)
and on the Securities and Exchange Commission’s website
(www.sec.gov). Many of these factors are beyond our control. The
forward-looking statements contained in this earnings release speak
only as of the date of this earnings release. We undertake no
obligation to publicly release the result of any revisions to these
forward-looking statements to reflect the impact of events or
circumstances that may arise after the date of this earnings
release.
|
TRANSUNION AND SUBSIDIARIES |
Consolidated Balance Sheets |
(in millions, except per share data) |
|
|
June 30, 2017 |
|
December 31,2016 |
|
Unaudited |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
142.0 |
|
|
$ |
182.2 |
|
Trade
accounts receivable, net of allowance of $7.3 and $6.2 |
290.7 |
|
|
277.9 |
|
Other
current assets |
117.6 |
|
|
89.9 |
|
Total current
assets |
550.3 |
|
|
550.0 |
|
Property, plant and
equipment, net of accumulated depreciation and amortization of
$267.0 and $235.6 |
185.4 |
|
|
197.5 |
|
Goodwill, net |
2,199.3 |
|
|
2,173.9 |
|
Other intangibles, net
of accumulated amortization of $901.9 and $815.8 |
1,709.1 |
|
|
1,762.3 |
|
Other assets |
112.5 |
|
|
97.5 |
|
Total assets |
$ |
4,756.6 |
|
|
$ |
4,781.2 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Trade
accounts payable |
$ |
120.5 |
|
|
$ |
114.2 |
|
Short-term debt and current portion of long-term debt |
100.1 |
|
|
50.4 |
|
Other
current liabilities |
173.6 |
|
|
208.7 |
|
Total current
liabilities |
394.2 |
|
|
373.3 |
|
Long-term debt |
2,297.3 |
|
|
2,325.2 |
|
Deferred taxes |
564.9 |
|
|
579.0 |
|
Other liabilities |
29.9 |
|
|
30.7 |
|
Total liabilities |
3,286.3 |
|
|
3,308.2 |
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.01 par value; 1.0 billion shares authorized at June 30,
2017 and December 31, 2016, 186.1 million and 183.9 million shares
issued at June 30, 2017 and December 31, 2016, respectively,
and 181.9 million shares and 183.2 million shares outstanding
as of June 30, 2017 and December 31, 2016, respectively |
1.9 |
|
|
1.8 |
|
Additional paid-in capital |
1,835.4 |
|
|
1,844.9 |
|
Treasury
stock at cost; 4.2 million and 0.7 million shares at June 30,
2017 and December 31, 2016, respectively |
(138.8 |
) |
|
(5.3 |
) |
Accumulated deficit |
(176.5 |
) |
|
(303.8 |
) |
Accumulated other comprehensive loss |
(151.1 |
) |
|
(174.8 |
) |
Total TransUnion
stockholders’ equity |
1,370.9 |
|
|
1,362.8 |
|
Noncontrolling
interests |
99.4 |
|
|
110.2 |
|
Total stockholders’
equity |
1,470.3 |
|
|
1,473.0 |
|
Total liabilities and
stockholders’ equity |
$ |
4,756.6 |
|
|
$ |
4,781.2 |
|
TRANSUNION AND SUBSIDIARIES |
Consolidated Statements of Income
(Unaudited) |
(in millions, except per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
$ |
474.8 |
|
|
$ |
425.7 |
|
|
$ |
929.7 |
|
|
$ |
831.4 |
|
Operating
expenses |
|
|
|
|
|
|
|
Cost of
services (exclusive of depreciation and amortization below) |
151.9 |
|
|
143.8 |
|
|
303.0 |
|
|
292.9 |
|
Selling,
general and administrative |
149.2 |
|
|
144.4 |
|
|
293.8 |
|
|
276.6 |
|
Depreciation and amortization |
58.2 |
|
|
74.0 |
|
|
116.3 |
|
|
146.5 |
|
Total operating
expenses |
359.3 |
|
|
362.2 |
|
|
713.1 |
|
|
716.0 |
|
Operating
income |
115.5 |
|
|
63.5 |
|
|
216.6 |
|
|
115.4 |
|
Non-operating
income and (expense) |
|
|
|
|
|
|
|
Interest
expense |
(22.6 |
) |
|
(21.3 |
) |
|
(44.1 |
) |
|
(41.7 |
) |
Interest
income |
1.4 |
|
|
1.1 |
|
|
2.7 |
|
|
1.9 |
|
Earnings
from equity method investments |
2.0 |
|
|
2.0 |
|
|
3.7 |
|
|
3.9 |
|
Other
income and (expense), net |
(4.2 |
) |
|
(9.3 |
) |
|
(10.8 |
) |
|
(16.9 |
) |
Total
non-operating income and (expense) |
(23.4 |
) |
|
(27.5 |
) |
|
(48.5 |
) |
|
(52.8 |
) |
Income before
income taxes |
92.1 |
|
|
36.0 |
|
|
168.1 |
|
|
62.6 |
|
Provision for
income taxes |
(24.8 |
) |
|
(16.3 |
) |
|
(36.3 |
) |
|
(28.3 |
) |
Net
income |
67.3 |
|
|
19.7 |
|
|
131.8 |
|
|
34.3 |
|
Less: net
income attributable to the noncontrolling interests |
(2.4 |
) |
|
(2.4 |
) |
|
(4.5 |
) |
|
(4.4 |
) |
Net income
attributable to TransUnion |
$ |
64.9 |
|
|
$ |
17.3 |
|
|
$ |
127.3 |
|
|
$ |
29.9 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.36 |
|
|
$ |
0.09 |
|
|
$ |
0.70 |
|
|
$ |
0.16 |
|
Diluted |
$ |
0.34 |
|
|
$ |
0.09 |
|
|
$ |
0.67 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
Basic |
181.9 |
|
|
182.5 |
|
|
182.3 |
|
|
182.4 |
|
Diluted |
189.3 |
|
|
184.4 |
|
|
189.8 |
|
|
184.2 |
|
TRANSUNION AND SUBSIDIARIES |
Consolidated Statements of Cash Flows
(Unaudited) |
(in millions) |
|
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
Net
income |
$ |
131.8 |
|
|
$ |
34.3 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
116.3 |
|
|
146.5 |
|
Net loss
on refinancing transaction |
5.0 |
|
|
— |
|
Amortization and loss on fair value of hedge instrument |
0.3 |
|
|
1.2 |
|
Equity in
net income of affiliates, net of dividends |
(3.2 |
) |
|
1.7 |
|
Deferred
taxes |
(18.3 |
) |
|
(4.1 |
) |
Amortization of discount and deferred financing fees |
1.3 |
|
|
1.5 |
|
Stock-based compensation |
15.9 |
|
|
8.9 |
|
Provision
for losses on trade accounts receivable |
1.8 |
|
|
1.8 |
|
Other |
(3.9 |
) |
|
0.9 |
|
Changes
in assets and liabilities: |
|
|
|
Trade
accounts receivable |
(11.4 |
) |
|
(22.9 |
) |
Other
current and long-term assets |
(42.2 |
) |
|
(28.6 |
) |
Trade
accounts payable |
3.5 |
|
|
2.2 |
|
Other
current and long-term liabilities |
(22.7 |
) |
|
6.1 |
|
Cash provided by
operating activities |
174.2 |
|
|
149.5 |
|
Cash flows from
investing activities: |
|
|
|
Capital
expenditures |
(58.0 |
) |
|
(54.9 |
) |
Proceeds
from sale of trading securities |
2.5 |
|
|
0.9 |
|
Purchases
of trading securities |
(1.5 |
) |
|
(1.2 |
) |
Proceeds
from sale of other investments |
46.9 |
|
|
19.7 |
|
Purchases
of other investments |
(36.0 |
) |
|
(17.3 |
) |
Acquisitions and purchases of noncontrolling interests, net of cash
acquired |
(58.7 |
) |
|
(270.6 |
) |
Other |
0.3 |
|
|
— |
|
Cash used in investing
activities |
(104.5 |
) |
|
(323.4 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds
from senior secured term loan B |
— |
|
|
150.0 |
|
Proceeds
from senior secured term loan A |
— |
|
|
55.0 |
|
Proceeds
from senior secured revolving line of credit |
105.0 |
|
|
145.0 |
|
Payments
of senior secured revolving line of credit |
(60.0 |
) |
|
(145.0 |
) |
Repayments of debt |
(24.9 |
) |
|
(23.8 |
) |
Debt
financing fees |
(5.0 |
) |
|
(3.4 |
) |
Proceeds
from issuance of common stock and exercise of stock options |
16.3 |
|
|
2.3 |
|
Treasury
stock purchased |
(133.5 |
) |
|
— |
|
Excess
tax benefit |
— |
|
|
2.2 |
|
Distributions to noncontrolling interests |
(0.3 |
) |
|
(1.0 |
) |
Payment
of contingent obligation |
(7.8 |
) |
|
(0.3 |
) |
Cash (used in)
provided by financing activities |
(110.2 |
) |
|
181.0 |
|
Effect of exchange rate
changes on cash and cash equivalents |
0.3 |
|
|
1.0 |
|
Net change in cash and
cash equivalents |
(40.2 |
) |
|
8.1 |
|
Cash and cash
equivalents, beginning of period |
182.2 |
|
|
133.2 |
|
Cash and cash
equivalents, end of period |
$ |
142.0 |
|
|
$ |
141.3 |
|
SCHEDULE 1 |
TRANSUNION AND SUBSIDIARIES |
As Reported and Constant Currency Growth Rates
- Unaudited |
|
|
|
Three Months Ended June 30, 2017 Percent
Change |
|
Six Months Ended June 30, 2017 Percent Change |
Consolidated: |
|
|
|
|
Revenue as
reported |
|
11.5 |
% |
|
11.8 |
% |
Revenue constant
currency |
|
11.1 |
% |
|
11.1 |
% |
|
|
|
|
|
|
|
Operating income |
|
81.9 |
% |
|
87.6 |
% |
Operating income
constant currency |
|
82.1 |
% |
|
87.4 |
% |
Adjusted Operating
Income |
|
24.0 |
% |
|
26.9 |
% |
Adjusted Operating
Income constant currency |
|
23.8 |
% |
|
26.3 |
% |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
16.7 |
% |
|
18.9 |
% |
Adjusted EBITDA
constant currency |
|
16.5 |
% |
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
International
Consolidated |
|
|
|
|
|
|
Revenue as
reported |
|
12.5 |
% |
|
17.4 |
% |
Revenue constant
currency |
|
10.2 |
% |
|
13.0 |
% |
|
|
|
|
|
|
|
Operating income |
|
56.0 |
% |
|
63.6 |
% |
Operating income
constant currency |
|
57.6 |
% |
|
62.0 |
% |
Adjusted Operating
Income |
|
11.8 |
% |
|
24.4 |
% |
Adjusted Operating
Income constant currency |
|
10.6 |
% |
|
21.0 |
% |
|
|
|
|
|
|
|
Developed Markets |
|
|
|
|
|
|
Revenue as
reported |
|
11.4 |
% |
|
15.6 |
% |
Revenue constant
currency |
|
14.7 |
% |
|
16.0 |
% |
|
|
|
|
|
|
|
Emerging Markets |
|
|
|
|
|
|
Revenue as
reported |
|
13.2 |
% |
|
18.3 |
% |
Revenue constant
currency |
|
7.7 |
% |
|
11.3 |
% |
|
Constant
currency percentage changes assume foreign currency exchange rates
are consistent between years. This allows financial results to be
evaluated without the impact of fluctuations in foreign currency
exchange rates. |
SCHEDULE 2 |
TRANSUNION AND SUBSIDIARIES |
EBITDA, Adjusted EBITDA, EBITDA Margin and
Adjusted EBITDA Margin - Unaudited |
(dollars in millions) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
$ |
474.8 |
|
|
$ |
425.7 |
|
|
$ |
929.7 |
|
|
$ |
831.4 |
|
|
|
|
|
|
|
|
|
Reconciliation of net
income attributable to TransUnion to Adjusted EBITDA: |
|
|
|
|
|
|
|
Net income attributable
to TransUnion |
$ |
64.9 |
|
|
$ |
17.3 |
|
|
$ |
127.3 |
|
|
$ |
29.9 |
|
Net interest
expense |
21.3 |
|
|
20.2 |
|
|
41.5 |
|
|
39.8 |
|
Provision for income
taxes |
24.8 |
|
|
16.3 |
|
|
36.3 |
|
|
28.3 |
|
Depreciation and
amortization |
58.2 |
|
|
74.0 |
|
|
116.3 |
|
|
146.5 |
|
EBITDA |
169.2 |
|
|
127.8 |
|
|
321.3 |
|
|
244.4 |
|
Adjustments to
EBITDA: |
|
|
|
|
|
|
|
Stock-based
compensation(1) |
11.6 |
|
|
10.4 |
|
|
24.8 |
|
|
15.7 |
|
Mergers and
acquisitions, divestitures and business optimization(2) |
4.3 |
|
|
7.6 |
|
|
6.9 |
|
|
13.1 |
|
Technology
transformation(3) |
— |
|
|
11.3 |
|
|
— |
|
|
23.3 |
|
Other(4) |
0.9 |
|
|
2.3 |
|
|
4.8 |
|
|
4.3 |
|
Total adjustments to
EBITDA |
16.9 |
|
|
31.7 |
|
|
36.4 |
|
|
56.4 |
|
Adjusted EBITDA |
$ |
186.1 |
|
|
$ |
159.5 |
|
|
$ |
357.7 |
|
|
$ |
300.9 |
|
|
|
|
|
|
|
|
|
EBITDA margin |
35.6 |
% |
|
30.0 |
% |
|
34.6 |
% |
|
29.4 |
% |
Adjusted EBITDA
Margin |
39.2 |
% |
|
37.5 |
% |
|
38.5 |
% |
|
36.2 |
% |
As a result of displaying amounts in millions, rounding
differences may exist in the table above.
(1) Consisted of stock-based compensation and cash-settled
stock-based compensation.
(2) For the three months ended June 30, 2017,
consisted of the following adjustments to operating income: a $0.5
million loss on the divestitures of a small business operation and
a $(0.1) million reduction in contingent consideration expense from
previous acquisitions. For the three months ended June 30, 2017,
consisted of the following adjustments to non-operating income and
expense: $3.9 million of acquisition expenses. For six months ended
June 30, 2017, consisted of the following adjustments to operating
income: a $0.5 million loss on the divestitures of a small business
operation and a $(0.2) million reduction in contingent
consideration expense from previous acquisitions. For the six
months ended June 30, 2017, consisted of the following adjustments
to non-operating income and expense: $6.5 million of acquisition
expenses and $0.1 million of miscellaneous.
For the three months ended June 30, 2016,
consisted of the following adjustments to operating income: a
$(0.1) million adjustment to contingent consideration expense from
previous acquisitions and a $(0.2) million adjustment to business
optimization expenses. For the three months ended June 30, 2016,
consisted of the following adjustments to non-operating income and
expense: $7.9 million of acquisition expenses. For the six months
ended June 30, 2016, consisted of the following adjustments to
operating income: a $0.1 million loss on the divestitures of two
small business operations and a $(0.5) million adjustment to
business optimization expenses. For the six months ended June 30,
2016, consisted of the following adjustments to non-operating
income and expense: $13.5 million of acquisition expenses.
(3) Represented costs associated with a project to transform our
technology infrastructure.
(4) For the three months ended June 30, 2017,
consisted of the following adjustments to non-operating income and
expense: $0.5 million of fees incurred in connection with a
secondary offering of shares of TransUnion common stock by certain
of our stockholders; $0.5 million of loan fees; a $0.2 million
mark-to-market loss related to ineffectiveness of our interest rate
hedge; $(0.2) million of currency remeasurement of our foreign
operations and $(0.1) million of miscellaneous. For the six months
ended June 30, 2017, consisted of the following adjustments to
non-operating income and expense: $5.0 million of fees related to
the refinancing of our senior secured credit facility; $0.9 million
of fees incurred in connection with secondary offerings of shares
of TransUnion common stock by certain of our stockholders; $0.8
million of loan fees; a $0.1 million mark-to-market loss
related to ineffectiveness of our interest rate hedge; $(1.6)
million of currency remeasurement of our foreign operations and
$(0.4) million of miscellaneous.
For the three months ended June 30, 2016,
consisted of the following adjustments to operating income: a $0.3
million charge for certain legal and regulatory matters. For the
three months ended June 30, 2016, consisted of the following
adjustments to non-operating income and expense: $0.9 million of
fees incurred in connection with the filing of a registration
statement and a secondary offering of shares of TransUnion common
stock by certain of our stockholders; $0.5 million of loan fees;
$0.3 million of currency remeasurement of our foreign operations
and a $0.3 million mark-to-market loss related to ineffectiveness
of our interest rate hedge. For the six months ended June 30, 2016,
consisted of the following adjustments to operating income: a $0.3
million charge for certain legal and regulatory matters. For the
six months ended June 30, 2016, consisted of the following
adjustments to non-operating income and expense: $1.9 million of
fees incurred in connection with the filing of registration
statements and secondary offerings of shares of TransUnion common
stock by certain of our stockholders; a $1.0 million mark-to-market
loss related to ineffectiveness of our interest rate hedge; $0.8
million of loan fees and $0.3 million of currency remeasurement of
our foreign operations.
|
SCHEDULE 3 |
TRANSUNION AND SUBSIDIARIES |
Adjusted Net Income and Adjusted Earnings Per
Share - Unaudited |
(in millions, except per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net income attributable
to TransUnion |
$ |
64.9 |
|
|
$ |
17.3 |
|
|
$ |
127.3 |
|
|
$ |
29.9 |
|
Adjustments before
income tax items: |
|
|
|
|
|
|
|
Stock-based compensation(1) |
11.6 |
|
|
10.4 |
|
|
24.8 |
|
|
15.7 |
|
Mergers
and acquisitions, divestitures and business optimization(2) |
4.3 |
|
|
7.6 |
|
|
6.9 |
|
|
13.1 |
|
Technology transformation(3) |
— |
|
|
11.3 |
|
|
— |
|
|
23.3 |
|
Other(4) |
0.6 |
|
|
1.8 |
|
|
4.4 |
|
|
3.5 |
|
Amortization of certain intangible assets (5) |
33.6 |
|
|
44.7 |
|
|
67.1 |
|
|
89.0 |
|
Total adjustments
before income tax items |
50.1 |
|
|
75.8 |
|
|
103.1 |
|
|
144.6 |
|
Change in
provision for income taxes per schedule 4 |
(26.8 |
) |
|
(24.7 |
) |
|
(62.0 |
) |
|
(47.9 |
) |
Adjusted Net
Income |
$ |
88.3 |
|
|
$ |
68.4 |
|
|
$ |
168.4 |
|
|
$ |
126.5 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
Share: |
|
|
|
|
|
|
|
Basic |
$ |
0.49 |
|
|
$ |
0.37 |
|
|
$ |
0.92 |
|
|
$ |
0.69 |
|
Diluted(6) |
$ |
0.47 |
|
|
$ |
0.37 |
|
|
$ |
0.89 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
181.9 |
|
|
182.5 |
|
|
182.3 |
|
|
182.4 |
|
Diluted(6) |
189.3 |
|
|
184.4 |
|
|
189.8 |
|
|
184.2 |
|
As a result of displaying amounts in millions, rounding
differences may exist in the table above.
(1) Consisted of stock-based compensation and cash-settled
stock-based compensation.
(2) For the three months ended June 30, 2017,
consisted of the following adjustments to operating income: a $0.5
million loss on the divestitures of a small business operation and
a $(0.1) million reduction in contingent consideration expense from
previous acquisitions. For the three months ended June 30, 2017,
consisted of the following adjustments to non-operating income and
expense: $3.9 million of acquisition expenses. For six months ended
June 30, 2017, consisted of the following adjustments to operating
income: a $0.5 million loss on the divestitures of a small business
operation and a $(0.2) million reduction in contingent
consideration expense from previous acquisitions. For the six
months ended June 30, 2017, consisted of the following adjustments
to non-operating income and expense: $6.5 million of acquisition
expenses and $0.1 million of miscellaneous.
For the three months ended June 30, 2016,
consisted of the following adjustments to operating income: a
$(0.1) million adjustment to contingent consideration expense from
previous acquisitions and a $(0.2) million adjustment to business
optimization expenses. For the three months ended June 30, 2016,
consisted of the following adjustments to non-operating income and
expense: $7.9 million of acquisition expenses. For the six months
ended June 30, 2016, consisted of the following adjustments to
operating income: a $0.1 million loss on the divestitures of two
small business operations and a $(0.5) million adjustment to
business optimization expenses. For the six months ended June 30,
2016, consisted of the following adjustments to non-operating
income and expense: $13.5 million of acquisition expenses.
(3) Represented costs associated with a project to transform our
technology infrastructure.
(4) For the three months ended June 30, 2017,
consisted of the following adjustments to non-operating income and
expense: $0.5 million of fees incurred in connection with a
secondary offering of shares of TransUnion common stock by certain
of our stockholders; a $0.2 million mark-to-market loss related to
ineffectiveness of our interest rate hedge; $(0.2) million of
currency remeasurement of our foreign operations and $0.1 million
of miscellaneous. For the six months ended June 30, 2017, consisted
of the following adjustments to non-operating income and expense:
$5.0 million of fees related to the refinancing of our senior
secured credit facility; $0.9 million of fees incurred in
connection with secondary offerings of shares of TransUnion common
stock by certain of our stockholders; a $0.1 million mark-to-market
loss related to ineffectiveness of our interest rate hedge; and
$(1.6) million of currency remeasurement of our foreign
operations.
For the three months ended June 30, 2016,
consisted of the following adjustments to operating income: a $0.3
million charge for certain legal and regulatory matters. For the
three months ended June 30, 2016, consisted of the following
adjustments to non-operating income and expense: $0.3 million of
currency remeasurement of our foreign operations; a $0.3 million
mark-to-market loss related to ineffectiveness of our interest rate
hedge; and $0.9 million of fees incurred in connection with the
filing of a registration statement and a secondary offering of
shares of TransUnion common stock be certain of our stockholders.
For the six months ended June 30, 2016, consisted of the following
adjustments to operating income: a $0.3 million charge for certain
legal and regulatory matters. For the six months ended June 30,
2016, consisted of the following adjustments to non-operating
income and expense: $0.3 million of currency remeasurement of our
foreign operations; a $1.0 million mark-to-market loss related to
ineffectiveness of our interest rate hedge; and $1.9 million of
fees incurred in connections with the filing of registration
statements and secondary offerings of shares of TransUnion common
stock by certain of our stockholders.
(5) Consisted of amortization of intangible
assets from our 2012 change in control and amortization of
intangible assets established in business acquisitions after our
2012 change in control.
(6) For the three and six months ended June 30,
2017, there were zero and less than 0.1 million anti-dilutive
weighted stock-based awards outstanding, respectively. In addition,
there were no contingently issuable stock-based awards outstanding
that were excluded from the diluted earnings per share calculation
because the contingencies had not been met. For the three and six
months ended June 30, 2016, there were less than 0.1
million anti-dilutive stock-based awards outstanding. In addition,
there were 6.5 million contingently issuable stock-based awards
outstanding that were excluded from the diluted earnings per share
calculation because the market conditions had not been met.
|
SCHEDULE 4 |
TRANSUNION AND SUBSIDIARIES |
Effective Tax Rate and Adjusted Effective Tax
Rate - Unaudited |
(dollars in millions) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Income before income
taxes |
$ |
92.1 |
|
|
$ |
36.0 |
|
|
$ |
168.1 |
|
|
$ |
62.6 |
|
Total adjustments before income taxes per Schedule 3 |
50.1 |
|
|
75.8 |
|
|
103.1 |
|
|
144.6 |
|
Adjusted income before
income taxes |
$ |
142.3 |
|
|
$ |
111.8 |
|
|
$ |
271.2 |
|
|
$ |
207.2 |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
(24.8 |
) |
|
(16.3 |
) |
|
$ |
(36.3 |
) |
|
(28.3 |
) |
Adjustments for income
taxes: |
|
|
|
|
|
|
|
Tax
effect of above adjustments(1) |
(16.7 |
) |
|
(27.0 |
) |
|
(34.6 |
) |
|
(51.8 |
) |
Eliminate
impact of adjustments for unremitted foreign earnings(2) |
— |
|
|
— |
|
|
(4.3 |
) |
|
— |
|
Eliminate
impact of excess tax benefits for share compensation(3) |
(11.4 |
) |
|
— |
|
|
(23.0 |
) |
|
— |
|
Other(4) |
1.3 |
|
|
2.3 |
|
|
— |
|
|
3.9 |
|
Total adjustments for
income taxes |
(26.8 |
) |
|
(24.7 |
) |
|
(62.0 |
) |
|
(47.9 |
) |
Adjusted provision for
income taxes |
$ |
(51.7 |
) |
|
$ |
(41.1 |
) |
|
$ |
(98.3 |
) |
|
$ |
(76.2 |
) |
|
|
|
|
|
|
|
|
Effective tax rate |
27.0 |
% |
|
45.3 |
% |
|
21.6 |
% |
|
45.2 |
% |
Adjusted Effective Tax
Rate |
36.3 |
% |
|
36.7 |
% |
|
36.2 |
% |
|
36.8 |
% |
As a result of displaying amounts in millions, rounding
differences may exist in the table above.
(1) Tax rates used to calculate the tax expense impact are based
on the nature of each item.
(2) Eliminates impact of certain adjustments related to our
deferred tax liability for unremitted earnings.
(3) Eliminates the impact of excess tax benefits for share
compensation resulting from adoption of ASU 2016-09, Compensation -
Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting.
(4) Eliminates the impact of state tax rate changes on deferred
taxes, valuation allowances on foreign net operating losses, and
valuation allowances on capital losses and other discrete
adjustments.
|
SCHEDULE 5 |
TRANSUNION AND SUBSIDIARIES |
Adjusted Operating Income, Operating Margin
and Adjusted Operating Margin - Unaudited |
(dollars in millions) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
Online
Data Services |
$ |
190.6 |
|
|
$ |
168.1 |
|
|
$ |
373.0 |
|
|
$ |
329.2 |
|
Marketing
Services |
46.5 |
|
|
37.9 |
|
|
88.5 |
|
|
74.9 |
|
Decision
Services |
60.8 |
|
|
50.7 |
|
|
118.6 |
|
|
99.8 |
|
Total USIS |
297.9 |
|
|
256.8 |
|
|
580.1 |
|
|
503.8 |
|
Developed
Markets |
31.0 |
|
|
27.8 |
|
|
59.0 |
|
|
51.0 |
|
Emerging
Markets |
56.3 |
|
|
49.8 |
|
|
111.7 |
|
|
94.4 |
|
Total
International |
87.3 |
|
|
77.6 |
|
|
170.7 |
|
|
145.4 |
|
Consumer
Interactive |
105.4 |
|
|
106.5 |
|
|
210.3 |
|
|
212.6 |
|
Total revenue,
gross |
$ |
490.6 |
|
|
$ |
440.9 |
|
|
$ |
961.1 |
|
|
$ |
861.8 |
|
|
|
|
|
|
|
|
|
Intersegment revenue
eliminations: |
|
|
|
|
|
|
|
USIS
Online |
(14.7 |
) |
|
(14.2 |
) |
|
(29.1 |
) |
|
(28.4 |
) |
International Developed Markets |
(1.1 |
) |
|
(0.9 |
) |
|
(2.1 |
) |
|
(1.6 |
) |
International Emerging Markets |
— |
|
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
Consumer
Interactive |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total intersegment
revenue eliminations |
(15.8 |
) |
|
(15.2 |
) |
|
(31.4 |
) |
|
(30.3 |
) |
Total revenue as
reported |
$ |
474.8 |
|
|
$ |
425.7 |
|
|
$ |
929.7 |
|
|
$ |
831.4 |
|
|
|
|
|
|
|
|
|
Gross operating income
by segment: |
|
|
|
|
|
|
|
USIS operating
income |
$ |
83.7 |
|
|
$ |
41.4 |
|
|
$ |
156.0 |
|
|
$ |
71.6 |
|
International operating
income |
12.6 |
|
|
8.1 |
|
|
21.5 |
|
|
13.1 |
|
Consumer Interactive
operating income |
49.7 |
|
|
43.6 |
|
|
97.7 |
|
|
84.0 |
|
Corporate operating
loss |
(30.5 |
) |
|
(29.5 |
) |
|
(58.6 |
) |
|
(53.3 |
) |
Total operating
income |
$ |
115.5 |
|
|
$ |
63.5 |
|
|
$ |
216.6 |
|
|
$ |
115.4 |
|
|
|
|
|
|
|
|
|
Intersegment operating
income eliminations: |
|
|
|
|
|
|
|
USIS |
$ |
(14.3 |
) |
|
$ |
(13.8 |
) |
|
$ |
(28.4 |
) |
|
$ |
(27.7 |
) |
International |
(0.8 |
) |
|
(0.7 |
) |
|
(1.6 |
) |
|
(1.4 |
) |
Consumer
Interactive |
15.1 |
|
|
14.6 |
|
|
30.0 |
|
|
29.1 |
|
Corporate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total eliminations |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Reconciliation of
operating income to Adjusted Operating Income: |
|
|
|
|
|
|
|
USIS operating
income |
$ |
83.7 |
|
|
$ |
41.4 |
|
|
$ |
156.0 |
|
|
$ |
71.6 |
|
Stock-based compensation(1) |
3.8 |
|
|
3.0 |
|
|
7.9 |
|
|
5.5 |
|
Mergers
and acquisitions, divestitures and business optimization(2) |
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
— |
|
Technology transformation(3) |
— |
|
|
10.0 |
|
|
— |
|
|
21.0 |
|
Amortization of certain intangible assets(5) |
22.8 |
|
|
33.3 |
|
|
45.6 |
|
|
66.6 |
|
Adjusted USIS Operating
Income |
110.3 |
|
|
87.6 |
|
|
209.3 |
|
|
164.7 |
|
|
|
|
|
|
|
|
|
International operating
income |
12.6 |
|
|
8.1 |
|
|
21.5 |
|
|
13.1 |
|
Stock-based compensation(1) |
4.3 |
|
|
4.9 |
|
|
9.8 |
|
|
6.0 |
|
Mergers
and acquisitions, divestitures and business optimization(2) |
0.5 |
|
|
— |
|
|
0.5 |
|
|
0.2 |
|
Technology transformation(3) |
— |
|
|
1.3 |
|
|
— |
|
|
2.4 |
|
Amortization of certain intangible assets(5) |
9.5 |
|
|
9.9 |
|
|
19.0 |
|
|
19.3 |
|
Adjusted International
Operating Income |
27.0 |
|
|
24.1 |
|
|
50.9 |
|
|
40.9 |
|
|
|
|
|
|
|
|
|
Consumer Interactive
operating income |
49.7 |
|
|
43.6 |
|
|
97.7 |
|
|
84.0 |
|
Stock-based compensation(1) |
0.4 |
|
|
0.3 |
|
|
0.9 |
|
|
0.5 |
|
Amortization of certain intangible assets(5) |
1.3 |
|
|
1.5 |
|
|
2.5 |
|
|
3.1 |
|
Adjusted Consumer
Interactive Operating Income |
51.4 |
|
|
45.4 |
|
|
101.0 |
|
|
87.6 |
|
|
|
|
|
|
|
|
|
Corporate operating
loss |
(30.5 |
) |
|
(29.5 |
) |
|
(58.6 |
) |
|
(53.3 |
) |
Stock-based compensation(1) |
3.1 |
|
|
2.3 |
|
|
6.2 |
|
|
3.7 |
|
Mergers
and acquisitions, divestitures and business optimization(2) |
— |
|
|
(0.2 |
) |
|
— |
|
|
(0.5 |
) |
Other(4) |
— |
|
|
0.3 |
|
|
— |
|
|
0.3 |
|
Adjusted Corporate
Operating Income |
(27.4 |
) |
|
(27.1 |
) |
|
(52.5 |
) |
|
(49.8 |
) |
|
|
|
|
|
|
|
|
Total operating
income |
115.5 |
|
|
63.5 |
|
|
216.6 |
|
|
115.4 |
|
Stock-based compensation(1) |
11.6 |
|
|
10.4 |
|
|
24.8 |
|
|
15.7 |
|
Mergers
and acquisitions, divestitures and business optimization(2) |
0.5 |
|
|
(0.3 |
) |
|
0.3 |
|
|
(0.4 |
) |
Technology transformation(3) |
— |
|
|
11.3 |
|
|
— |
|
|
23.3 |
|
Other(4) |
— |
|
|
0.3 |
|
|
— |
|
|
0.3 |
|
Amortization of certain intangible assets(5) |
33.6 |
|
|
44.7 |
|
|
67.1 |
|
|
89.0 |
|
Total operating income
adjustments |
45.7 |
|
|
66.5 |
|
|
92.2 |
|
|
127.9 |
|
Total Adjusted
Operating Income |
$ |
161.2 |
|
|
$ |
130.0 |
|
|
$ |
308.7 |
|
|
$ |
243.4 |
|
|
|
|
|
|
|
|
|
Operating
margin(6): |
|
|
|
|
|
|
|
USIS |
28.1 |
% |
|
16.1 |
% |
|
26.9 |
% |
|
14.2 |
% |
International |
14.4 |
% |
|
10.4 |
% |
|
12.6 |
% |
|
9.0 |
% |
Consumer
Interactive |
47.2 |
% |
|
40.9 |
% |
|
46.4 |
% |
|
39.5 |
% |
Total operating
margin |
24.3 |
% |
|
14.9 |
% |
|
23.3 |
% |
|
13.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Margin(6): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USIS |
37.0 |
% |
|
34.1 |
% |
|
36.1 |
% |
|
32.7 |
% |
International |
30.9 |
% |
|
31.1 |
% |
|
29.8 |
% |
|
28.1 |
% |
Consumer
Interactive |
48.8 |
% |
|
42.6 |
% |
|
48.0 |
% |
|
41.2 |
% |
Total Adjusted
Operating Margin |
34.0 |
% |
|
30.5 |
% |
|
33.2 |
% |
|
29.3 |
% |
As a result of displaying amounts in millions, rounding
differences may exist in the table above.
(1) Consisted of stock-based compensation and cash-settled
stock-based compensation.
(2) For the three months ended June 30, 2017, consisted of the
following adjustments to operating income: a $0.5 million loss on
the divestitures of a small business operation (International) and
a $(0.1) million reduction in contingent consideration expense from
previous acquisitions (USIS). For the six months ended June 30,
2017, consisted of the following adjustments to operating income: a
$0.5 million loss on the divestitures of a small business operation
(International) and a $(0.2) million reduction in contingent
consideration expense from previous acquisitions (USIS).
For the three months ended June 30, 2016,
consisted of the following adjustments to operating income: a
$(0.1) million adjustment to contingent consideration expense from
previous acquisitions (USIS); and a $(0.2) million adjustment to
business optimization expenses (Corporate). For the six months
ended June 30, 2016, consisted of the following adjustments to
operating income: a $0.2 million loss on divestitures of two small
business operations (International); and a $(0.5) million
adjustment to business optimization expenses (Corporate).
(3) Represented costs associated with a project to transform our
technology infrastructure.
(4) For the three and six months ended June 30, 2016, consisted
of a $0.3 million charge for certain legal and regulatory matters
for both periods (Corporate).
(5) Consisted of amortization of intangible assets from our 2012
change in control transaction and amortization intangible assets
established in business acquisitions after our 2012 change in
control.
(6) Segment operating margins and Adjusted Operating Margins are
calculated using segment gross revenue and operating income.
Consolidated operating margin and Adjusted Operating Margin is
calculated using as reported revenue and operating income.
|
SCHEDULE 6 |
TRANSUNION AND SUBSIDIARIES |
Segment Depreciation and Amortization -
Unaudited |
(dollars in millions) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Depreciation and
amortization: |
|
|
|
|
|
|
|
USIS |
$ |
39.4 |
|
|
$ |
54.4 |
|
|
$ |
78.7 |
|
|
$ |
108.3 |
|
International |
14.8 |
|
|
15.1 |
|
|
29.6 |
|
|
29.0 |
|
Consumer
Interactive |
2.7 |
|
|
3.2 |
|
|
5.3 |
|
|
6.5 |
|
Corporate |
1.3 |
|
|
1.3 |
|
|
2.6 |
|
|
2.6 |
|
Total depreciation and
amortization |
$ |
58.2 |
|
|
$ |
74.0 |
|
|
$ |
116.3 |
|
|
$ |
146.5 |
|
As a result of displaying amounts in millions, rounding
differences may exist in the table above.
For More Information
E-mail: Investor.Relations@transunion.com
Telephone: 312.985.2860
TransUnion (NYSE:TRU)
Historical Stock Chart
From Mar 2024 to Apr 2024
TransUnion (NYSE:TRU)
Historical Stock Chart
From Apr 2023 to Apr 2024