TransUnion reported revenue of $290.5 million, an increase of 3.5% compared to the first quarter of 2012. Operating income of $44.2 million in the first quarter, compared to $65.6 million in the prior year, was negatively impacted by a $23.4 million increase in depreciation and amortization, resulting primarily from purchase accounting adjustments to record tangible and intangibles assets at fair value due to the acquisition of TransUnion Corp. by TransUnion Holding on April 30, 2012 (the acquisition and related transactions being referred to herein as the “2012 Change in Control Transaction”). Excluding depreciation and amortization, operating income increased 2.3% compared to the first quarter of 2012, while the Company continued to invest in new initiatives to drive long-term growth.
Segment Highlights
U.S. Information Services (USIS)
USIS revenue was $183.7 million, an increase of 1.7% percent compared to the first quarter of 2012, with increases in Online Data Services and Decision Services due to improved market conditions and growth in Financial Services, Resellers and Healthcare.
- Online Data Services revenue was $127.1 million, an increase of 4.6%, driven by an increase in credit report volumes
- Credit Marketing Services revenue was $31.8 million, a decrease of 11.7%, due to a large one-time batch job in the first quarter of 2012
- Decision Services revenue was $24.8 million, an increase of 6.9%, driven by growth in Financial Services and Healthcare.
Operating income of $43.1 million, compared to $55.6 million in the prior year, was negatively impacted by $14.4 million of additional depreciation and amortization, resulting primarily from purchase accounting adjustments related to the 2012 Change of Control Transaction. Excluding depreciation and amortization, USIS operating income increased 2.6% compared to the first quarter of 2012 as the Company continued to invest in new initiatives to drive long-term growth.
International
International revenue was $55.7 million, a decrease of 1.6% compared to the first quarter of 2012. Weakening foreign currencies accounted for a decrease in revenue of 6.4%. Acquisitions accounted for an increase in revenue of 2.8%.
- Developed markets revenue was $22.0 million, a decrease of 1.8%, as growth in Hong Kong was offset by weakness in Canada. A weakening Canadian dollar accounted for a reduction in revenue of 0.4%.
- Emerging markets revenue was $33.7 million, a decrease of 1.5%, as constant currency growth in Africa, Latin America and Asia Pacific was offset by the impact of weakening foreign currencies. Weakening foreign currencies accounted for a reduction in revenue of 10.2%. Acquisitions accounted for an increase in revenue of 4.7%.
Operating income of $2.4 million, compared to $14.8 million in the prior year, was negatively impacted by $7.5 million of additional depreciation and amortization, resulting primarily from purchase accounting adjustments related to the 2012 Change of Control Transaction. Excluding depreciation and amortization, International operating income declined 28.2% compared to the first quarter of 2012. The remaining decline is attributable to planned integration costs of our Brazilian and South African acquisitions, continued investment in growth and the negative impact of foreign currency.
Interactive
Interactive revenue was $51.1 million, an increase of 18.0% compared to the first quarter of 2012, driven by an increase in the average number of subscribers and volumes in the indirect channel and higher average revenue per subscriber in the direct channel.
Operating income of $15.4 million increased 55.6% compared to the prior year due to the increase in revenue and despite the negative impact of $1.0 million from additional depreciation and amortization, resulting primarily from purchase accounting adjustments related to the 2012 Change of Control Transaction. Excluding depreciation and amortization, Interactive operating income increased 59.6% compared to the first quarter of 2012.
Source: TransUnion Press Release
