This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Neustar Reports Results For Second Quarter 2012

Stocks in this article: NSR

About Neustar, Inc.

Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, entertainment and marketing industries throughout the world. Neustar applies its advanced, secure technologies in routing, addressing and authentication to its customers’ data to help them identify new revenue opportunities and network efficiencies, and institute cybersecurity and fraud protection measures. More information is available at www.neustar.biz.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the Company’s expectations, beliefs and business results in the future, such as guidance regarding its 2012 results. The Company has attempted, whenever possible, to identify these forward-looking statements using words such as “may,” “will,” “should,” “projects,” “estimates,” “expects,” “plans,” “intends,” “anticipates,” “believes” and variations of these words and similar expressions. Similarly, statements herein that describe the Company’s business strategy, prospects, opportunities, outlooks, objectives, plans, intentions or goals are also forward-looking statements. The Company cannot assure you that its expectations will be achieved or that any deviations will not be material. Forward-looking statements are subject to many assumptions, risks and uncertainties that may cause future results to differ materially from those anticipated. These potential risks and uncertainties include, among others, the risks and uncertainties arising from the difficulties with the integration process or the realization of the benefits of the TARGUSinfo acquisition; general economic conditions in the regions and industries in which the Company operates; the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as disruptions to the Company’s operations, modifications to or terminations of its material contracts, its ability to successfully identify and complete acquisitions, integrate and support the operations of businesses the Company acquires, increasing competition, market acceptance of its existing services, its ability to successfully develop and market new services, the uncertainty of whether new services will achieve market acceptance or result in any revenue, and business, regulatory and statutory changes in the communications industry. More information about potential factors that could affect the Company’s business and financial results is included in its filings with the Securities and Exchange Commission, including, without limitation, the Company’s most recent Annual Report on Form 10-K and subsequent periodic and current reports. All forward-looking statements are based on information available to the Company on the date of this press release, and the Company undertakes no obligation to update any of the forward-looking statements after the date of this press release.

       
NEUSTAR, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
 
Three Months Ended Six Months Ended
June 30, June 30,
2011   2012   2011   2012  
(unaudited)
Revenue:
Carrier Services $ 110,834 $ 126,347 $ 220,449 $ 250,720
Enterprise Services 36,849 42,089 73,329 81,574
Information Services   38,026     73,750  
Total revenue 147,683 206,462 293,778 406,044
Operating expense:

Cost of revenue (excluding depreciation and

amortization shown separately below)

31,417 46,127 62,469 91,025
Sales and marketing 26,267 41,073 51,206 79,426
Research and development 3,441 8,096 7,437 15,820
General and administrative 21,949 20,091 42,164 41,084
Depreciation and amortization 9,386 22,713 18,532 45,419
Restructuring (recoveries) charges (12 ) 2   420   524  
92,448   138,102   182,228   273,298  
Income from operations 55,235 68,360 111,550 132,746
Other (expense) income:
Interest and other expense (126 ) (8,404 ) (473 ) (16,597 )
Interest and other income 930   110   1,133   339  
Income from continuing operations before income taxes 56,039 60,066 112,210 116,488
Provision for income taxes, continuing operations 22,423   21,474   45,129   43,934  
Income from continuing operations 33,616 38,592 67,081 72,554
(Loss) income from discontinued operations, net of tax (1,261 )   37,249    
Net income $ 32,355   $ 38,592   $ 104,330   $ 72,554  
 
Basic net income (loss) per common share:
Continuing operations $ 0.46 $ 0.58 $ 0.91 $ 1.08
Discontinued operations (0.02 )   0.50    
Basic net income per common share $ 0.44   $ 0.58   $ 1.41   $ 1.08  
 
Diluted net income (loss) per common share:
Continuing operations $ 0.45 $ 0.57 $ 0.89 $ 1.06
Discontinued operations (0.02 )   0.50    
Diluted net income per common share $ 0.43   $ 0.57   $ 1.39   $ 1.06  
 
Weighted average common shares outstanding:
Basic 73,807   66,917   73,872   67,060  
Diluted 75,015   67,887   75,129   68,132  
 
 
NEUSTAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
   
December 31, June 30,
2011   2012  
(audited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 122,237 $ 224,635
Restricted cash 10,251 10,247
Short-term investments 10,545 10,381
Accounts receivable, net 106,274 127,210
Unbilled receivables 5,551 8,439
Notes receivable 2,786 2,870
Prepaid expenses and other current assets 30,166 19,091
Deferred costs 8,174 7,764
Income taxes receivable 38,687
Deferred tax assets 6,264   7,738  
Total current assets 340,935 418,375
 
Long-term investments 2,506
Property and equipment, net 100,102 108,651
Goodwill 573,307 573,307
Intangible assets, net 338,768 313,625
Notes receivable, long-term 3,748 2,291
Deferred costs, long-term 701 831
Other assets, long-term 22,767   20,942  
Total assets $ 1,382,834   $ 1,438,022  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,385 $ 3,569
Accrued expenses 79,334 61,156
Income taxes payable 6,126
Deferred revenue 41,080 47,597
Note payable 4,856 59,336
Capital lease obligations 3,065 3,094
Accrued restructuring reserve 4,361 1,287
Other liabilities 5,317   3,660  
Total current liabilities 145,398 185,825
 
Deferred revenue, long-term 10,363 10,392
Note payable, long-term 584,809 527,892
Capital lease obligations, long-term 1,918 1,011
Deferred tax liability, long-term 121,237 120,222
Other liabilities, long-term 16,475   18,375  
Total liabilities 880,200 863,717
 
Stockholders' equity:
Common stock 83 85
Additional paid-in capital 436,598 493,790
Treasury stock (495,790 ) (553,909 )
Accumulated other comprehensive loss (758 ) (716 )
Retained earnings 562,501   635,055  
Total stockholders' equity 502,634   574,305  
Total liabilities and stockholders' equity $ 1,382,834   $ 1,438,022  
 
       
NEUSTAR, INC.
SEGMENT REVENUE AND CONTRIBUTION
(in thousands)
 
Three Months Ended Six Months Ended
June 30, June 30,
2011 2012 2011 2012
(unaudited)
Revenue: (1)
Carrier Services $ 110,834 $ 126,347 $ 220,449 $ 250,720
Enterprise Services 36,849 42,089 73,329 81,574
Information Services 38,026 73,750
Total revenue $ 147,683 $ 206,462 $ 293,778 $ 406,044
 
Segment contribution: (2)
Carrier Services $ 97,570 $ 110,438 $ 194,149 $ 218,884
Enterprise Services 15,418 18,866 31,069 35,597
Information Services 16,991 35,005
Total segment contribution $ 112,988 $ 146,295 $ 225,218 $ 289,486
 

(1) Carrier Services:

  • Numbering Services
  • Order Management Services
  • IP Services

Enterprise Services:

  • Internet Infrastructure Services
  • Registry Services

Information Services:

  • Identification Services
  • Verification & Analytics Services
  • Local Search & Licensed Data Services
(2)   Segment contribution excludes certain unallocated costs within the following expense classifications: cost of revenue, sales and marketing, research and development, and general and administrative. In addition, depreciation and amortization and restructuring charges are excluded from segment contribution. Such unallocated costs totaled $57.8 million and $77.9 million for the three months ended June 30, 2011 and 2012, respectively, and totaled $113.7 million and $156.7 million for the six months ended June 30, 2011 and 2012, respectively.

Reconciliation of Non-GAAP Financial Measures

In this press release and in other public statements, Neustar presents certain non-GAAP financial data. To place these data in an appropriate context, the following is a reconciliation of income from continuing operations to adjusted net income from continuing operations for the three and six months ended June 30, 2011 and 2012 and the year ending December 31, 2012.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,908.70 +103.90 0.58%
S&P 500 2,074.84 +4.19 0.20%
NASDAQ 4,776.60 +11.22 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs