News and Events

Neustar Reports Results for First Quarter 2017

May 4, 2017

Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services, today announced results for the quarter ended March 31, 2017.

Neustar reported revenue of $293.2 million for the first quarter of 2017, with Information Services revenue of $164.9 million.  Marketing Services contributed $65.0 million in revenue from services that help customers promote their businesses and mitigate risk.  Security Services contributed $46.9 million in revenue from services that direct Internet traffic, resolve Internet queries, protect against DDoS attacks, and administer domain-name registries.  Data Services contributed $53.0 million in revenue from services that enable clients to process decisions and transactions in real time.  NPAC Services contributed $128.3 million in revenue.

Net income for the first quarter of 2017 totaled $45.4 million, or $0.80 per share.

Neustar ended the quarter with cash and cash equivalents of $47.0 million and outstanding debt under its credit facilities and senior notes of $751.6 million.  During the quarter, Neustar paid $77.4 million of principal under its term loan facility, including $50.0 million in voluntary prepayments of principal.

This press release is available on the company’s website under the Investor Relations tab.

NEUSTAR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

Three Months Ended
 March 31,

 

2016

 

2017

 

(unaudited)

Revenue

$

287,298

 

 

$

293,186

 

Operating expense:

 

 

 

Cost of revenue (excluding depreciation and amortization shown separately below)

91,351

 

 

87,916

 

Sales and marketing

55,323

 

 

56,557

 

Research and development

7,549

 

 

6,672

 

General and administrative

27,518

 

 

28,360

 

Depreciation and amortization

38,482

 

 

34,927

 

Restructuring charges

2,664

 

 

27

 

Separation costs

 

 

1,789

 

 

222,887

 

 

216,248

 

Income from operations

64,411

 

 

76,938

 

Other (expense) income:

 

 

 

Interest and other expense

(17,111

)

 

(12,271

)

Interest income

174

 

 

72

 

Income before income taxes

47,474

 

 

64,739

 

Provision for income taxes

16,099

 

 

19,296

 

Net income

$

31,375

 

 

$

45,443

 

Net income per common share:

 

 

 

Basic

$

0.58

 

 

$

0.82

 

Diluted

$

0.57

 

 

$

0.80

 

Weighted average common shares outstanding:

 

 

 

Basic

53,953

 

 

55,311

 

Diluted

54,940

 

 

57,022

 

NEUSTAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

December 31,
 2016

 

March 31,
 2017

 

(audited)

 

(unaudited)

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

45,773

 

 

$

47,048

 

Restricted cash

2,283

 

 

2,141

 

Accounts receivable, net

207,595

 

 

188,930

 

Unbilled receivables

19,795

 

 

15,618

 

Prepaid expenses and other current assets

41,680

 

 

35,867

 

Deferred costs

11,469

 

 

10,909

 

Income taxes receivable

13,586

 

 

612

 

Total current assets

342,181

 

 

301,125

 

Property and equipment, net

145,821

 

 

149,363

 

Goodwill

1,168,982

 

 

1,172,792

 

Intangible assets, net

423,957

 

 

405,429

 

Other assets, long-term

17,771

 

 

16,670

 

Total assets

$

2,098,712

 

 

$

2,045,379

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

21,095

 

 

$

22,569

 

Accrued expenses

134,545

 

 

97,959

 

Deferred revenue

91,188

 

 

96,035

 

Notes payable

103,725

 

 

89,219

 

Capital lease obligations

1,457

 

 

470

 

Other liabilities

11,632

 

 

9,306

 

Total current liabilities

363,642

 

 

315,558

 

Deferred revenue, long-term

22,437

 

 

22,850

 

Notes payable, long-term

702,946

 

 

642,750

 

Deferred income tax liabilities, long-term

35,088

 

 

41,131

 

Other liabilities, long-term

53,298

 

 

53,257

 

Total liabilities

1,177,411

 

 

1,075,546

 

Total stockholders’ equity

921,301

 

 

969,833

 

Total liabilities and stockholders’ equity

$

2,098,712

 

 

$

2,045,379