• TransUnion New Logo400x300TransUnion second Quarter 2015 revenue was $379 million, an increase of 16 percent (18 percent on a constant currency basis) compared with the second quarter of 2014. Acquisitions accounted for a 1.6 percent increase in revenue.
  • Adjusted EBITDA of $135 million, an increase of 16 percent compared with the second quarter of 2014 TransUnion completed its initial public offering on June 30, 2015 and listed common shares on the New York Stock Exchange under the symbol “TRU”
  • Subsequent to quarter-close, on July 15, 2015, redeemed the $600 million 9.625% senior notes and $400 million 8.125% senior notes with proceeds from the IPO and new $350 million term loan CHICAGO, July 28, 2015 –

The net loss attributable to TransUnion was $3 million compared with net income attributable to TransUnion of $18 million in the second quarter of 2014.  Diluted earnings per share was $(0.02) compared with $0.12 in the second quarter of 2014. Adjusted Net Income was $40 million, an increase of 29 percent compared with the second quarter of 2014. Adjusted Diluted Earnings per Share was $0.27 compared with $0.21 in the second quarter of 2014. Adjusted EBITDA was $135 million, an increase of 16 percent compared with the second quarter of 2014, due primarily to the increase in revenue, offset by investments in key strategic growth initiatives to continue driving long-term future growth. Adjusted EBITDA margin was 35.6 percent, an increase of 10 basis points compared with the second quarter of 2014.

“The second quarter was an exciting time for TransUnion as we successfully completed our IPO and also delivered another quarter of broad-based, double-digit revenue and Adjusted EBITDA growth, while continuing to execute on our growth strategy,” said Jim Peck, TransUnion’s president and chief executive officer. “These results are a testament to the hard work and talent of our associates around the world and I want to thank each of them. We would also like to welcome our new shareholders. You can expect our team to continue to build on its accomplishments with a focus on being a leading and diversified risk and information solutions provider and creating long-term shareholder value.”

TransUnion Q2 2015 ResultsSegment Highlights U.S. Information Services (USIS):  Total Revenue was $239 million, an increase of 14 percent compared with the second quarter of 2014, driven by robust revenue growth across all platforms. Incremental revenue from acquisitions accounted for a 2.1 percent increase in USIS revenue.

Online Data Services revenue was $159 million, an increase of 12 percent, driven primarily by an increase in credit report volumes and strong double-digit growth in TLO.

Marketing Services revenue was $35 million, an increase of 10 percent, due primarily to an increase in demand for custom data sets and archive information and revenue from recent acquisitions.

Decision Services revenue was $44 million, an increase of 28 percent, due primarily to revenue growth in healthcare, financial services and insurance markets and revenue from acquisitions. Operating income was $44 million, an increase of 59 percent compared with the second quarter of 2014. Adjusted Operating Income was $84 million, an increase of 11 percent compared with the second quarter of 2014. The increase in Adjusted Operating Income was due primarily to the increase in revenue along with savings from the initiative to transform our technology platform, partially offset by investments in key strategic growth initiatives and additional depreciation and amortization.

International:  Revenue was $68 million, an increase of 6 percent (19 percent on a constant currency basis) compared with the second quarter of 2014, driven by double-digit local currency revenue growth in both developed and emerging markets, offset by the impact of foreign exchange rates. Incremental revenue from the consolidation of CIBIL accounted for a 1.6 percent increase in International revenue. Developed markets revenue was $24 million, an increase of 3 percent (12 percent on a constant currency basis) compared with the second quarter of 2014.

Emerging markets revenue was $44 million, an increase of 7 percent (23 percent on a constant currency basis) compared with the second quarter of 2014. Operating income was $2 million, a decrease of 60 percent compared with the second quarter of 2014. Adjusted Operating Income was $17 million, approximately in line with the second quarter of 2014. The increase in revenue was offset primarily by investments in key strategic growth initiatives, along with additional depreciation and amortization. Excluding the impact of foreign exchange rates, Adjusted Operating Income increased 11 percent.

Consumer Interactive: Revenue was $76 million, an increase of 31 percent compared with the second quarter of 2014, driven by an increase in revenue from both the direct and indirect channels. Operating income was $28 million, an increase of 50 percent compared with the second quarter of 2014. Adjusted Operating Income was $29 million, an increase of 43 percent compared with the second quarter of 2014. The increase in Adjusted Operating Income was driven primarily by the increase in revenue, partially offset by an increase in advertising.

Liquidity and Capital Resources: Cash and cash equivalents were $758 million at June 30, 2015 and $78 million at December 31, 2014. As a result of the IPO, TransUnion received net proceeds of approximately $715 million on June 30, 2015 and used $62 million of the proceeds to prepay outstanding borrowings under the existing revolving credit facility, as well as accrued interest and other costs associated with the new credit facility.

TransUnion also entered into a new credit facility effective June 30, 2015, which provided for a new $350 million Term Loan A and a new $210 million revolving credit facility, which replaced the previous $190 million facility. On July 15, 2015, TransUnion used the net proceeds from the IPO and new Term Loan A to redeem the $600 million 9.625% senior notes and $400 million 8.125% senior notes, including accrued and unpaid interest plus a call premium. The remainder of the net proceeds was used to pay other costs related to the transaction. For the six months ended June 30, 2015, cash provided by operating activities was $117 million compared with $46 million for the same period in 2014. Cash used in investing activities was $77 million compared with $121 million for the same period in 2014. Capital expenditures were $68 million compared with $74 million for the same period in 2014, due to a decrease in spending to upgrade our corporate headquarters facility. Total capital expenditures are expected to be lower in 2015 than 2014 as a percentage of revenue as the improvements to our corporate headquarters are completed. Cash provided by financing activities was $642 million compared $58 million for the same period in 2014. This increase was primarily due to the net IPO proceeds of approximately $715 million, partially offset by debt repayments.

Financial Outlook: For full year 2015, revenue is expected to be approximately $1.455 billion, or up approximately 11.5 percent compared with the full year of 2014. Adjusted EBITDA is expected to be approximately $510 million, an increase of approximately 12 percent compared with the full year of 2014. These growth rates include approximately 2 points of negative impact from foreign exchange rates.

Source:  TransUnion Earnings Report