TNS, Inc. (NYSE: TNS), a leading provider of business-critical, cost-effective data communications services for transaction-oriented applications, today reported its third quarter 2012 results.
Henry H. Graham, Jr., CEO, commented, “Third quarter 2012 results were in line with our reduced outlook, with revenues down 2% and adjusted earnings per share growing 4% in constant currency from the third quarter last year. We continued to manage the challenges in our core businesses, including consolidation in the Telecommunication and Financial Services Divisions and softer global demand for dial-up transaction volumes in Payments, through careful cost containment and maximizing cash returns. We continued to reinvest this cash into our growth initiatives, which performed well in the period, as we evolve our business model toward mobile applications, gateway services and roaming and clearing. Overall, we are on track to meet our revised expectations for the year and have narrowed our outlook to the upper end of the previous range. For 2013, we will continue to transform our business toward growth and preliminarily expect to achieve earnings growth in constant dollars through stable revenue generation and the expansion of operating leverage as we transition our product mix to higher margin services, continue to manage costs, and reduce interest expense.”
Third Quarter 2012 Results
Total revenue for the third quarter of 2012 decreased 3.9% to $137.2 million from third quarter 2011 revenue of $142.7 million. On a constant dollar basis, revenues for the third quarter of 2012 decreased 2.3% to $139.5 million.
Third quarter 2012 GAAP net income was $3.0 million, or $0.12 per share, compared to GAAP net income of $1.6 million, or $0.06 per share, for the third quarter 2011. Included in GAAP net income for the third quarter of 2012 was a pre-tax charge of $2.8 million, or $0.09 per share, for severance.
Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) for the third quarter of 2012 decreased 5.2% to $34.5 million, or 25.1% of revenue, from $36.4 million, or 25.5% of revenue, for the third quarter of 2011. On a constant dollar basis, adjusted EBITDA for the third quarter of 2012 was $35.5 million, or 25.5% of revenue.