TransUnion Announces Strong First Quarter 2021 Results
On April 27, 2021, TransUnion reported robust Q1 2021 results with revenue of $745 million, up 8% year-over-year. Net income surged to $128 million, a significant increase from $70 million in Q1 2020, resulting in diluted EPS of $0.67. Adjusted EBITDA grew 14% to $300 million, achieving a margin of 40.3%. The company raised its full-year guidance, expecting revenue between $2.949 billion and $2.992 billion, reflecting a 9-10% increase. Despite challenges from COVID-19, TransUnion is positioned for sustained growth through continued investments.
- Revenue increased by 8% year-over-year to $745 million.
- Net income rose significantly to $128 million, up from $70 million.
- Diluted EPS was $0.67, compared to $0.37 in the previous year.
- Adjusted EBITDA increased 14% to $300 million with a margin of 40.3%.
- Raised full-year revenue guidance to $2.949 to $2.992 billion.
- Some international revenues showed decreases, notably in Latin America and Africa.
- Ongoing uncertainty surrounding COVID-19 could impact future business results.
- Delivered strong growth with contributions from all three segments, driven by an accelerated economic recovery across most markets during the quarter and the benefit from ongoing business wins.
- Increased full year 2021 financial guidance to reflect first quarter out-performance and a more bullish view of the remainder of the year.
- Continuing to aggressively invest to position TransUnion for long-term sustained growth.
CHICAGO, April 27, 2021 (GLOBE NEWSWIRE) -- TransUnion (NYSE: TRU) (the “Company”) today announced financial results for the quarter ended March 31, 2021.
First Quarter 2021 Results
Revenue:
- Total revenue for the quarter was
$745 million , an increase of 8 percent (8 percent on a constant currency basis, 7 percent on an organic constant currency basis) compared with the first quarter of 2020.
Earnings:
- Net income attributable to TransUnion was
$128 million for the quarter, compared with$70 million for the first quarter of 2020. Diluted earnings per share was$0.67 , compared with$0.37 for the first quarter of 2020. - Adjusted Net Income was
$176 million for the quarter, compared with$141 million for the first quarter of 2020. Adjusted Diluted Earnings per Share for the quarter was$0.91 , compared with$0.73 for the first quarter of 2020. - Adjusted EBITDA was
$300 million for the quarter, an increase of 14 percent (13 percent on a constant currency basis, 14 percent on an organic constant currency basis) compared with the first quarter of 2020. Adjusted EBITDA margin was 40.3 percent, compared with 38.3 percent for the first quarter of 2020.
“TransUnion delivered a strong quarter driven by accelerating macroeconomic recovery across most of our markets as well as the benefits of our diversified portfolio and ongoing business wins,” said Chris Cartwright, President and CEO. “As a result, we out-performed our guidance and have raised our outlook for the remainder of the year to reflect the stronger underlying business conditions, particularly in the U.S., that have become more visible over the past several months.”
“As always, we remain focused on investing for long-term success and are benefiting from our Global Solutions and Global Operations as we continue to progress on-plan with Project Rise.”
First Quarter 2021 Segment Results
U.S. Markets:
U.S. Markets revenue was
- Financial Services revenue was
$263 million , an increase of 14 percent compared with the first quarter of 2020. - Emerging Verticals revenue, which includes Healthcare, Insurance and all other verticals, was
$205 million , an increase of 7 percent (4 percent on an organic basis) compared with the first quarter of 2020.
Adjusted EBITDA was
International:
International revenue was
- Canada revenue was
$30 million , an increase of 15 percent (9 percent on a constant currency basis) compared with the first quarter of 2020. - Latin America revenue was
$24 million , a decrease of 1 percent (an increase of 5 percent on a constant currency basis) compared with the first quarter of 2020. - United Kingdom revenue was
$50 million , an increase of 3 percent (a decrease of 5 percent on a constant currency basis) compared with the first quarter of 2020. - Africa revenue was
$14 million , a decrease of 4 percent (5 percent on a constant currency basis) compared with the first quarter of 2020. - India revenue was
$34 million , an increase of 10 percent (11 percent on a constant currency basis) compared with the first quarter of 2020. - Asia Pacific revenue was
$14 million , an increase of 6 percent (5 percent on a constant currency basis) compared with the first quarter of 2020.
Adjusted EBITDA was
Consumer Interactive:
Consumer Interactive revenue was
Adjusted EBITDA was
Liquidity and Capital Resources
Cash and cash equivalents were
Second Quarter and Full Year 2021 Outlook
Our guidance is based on a number of assumptions that are subject to change, many of which are outside of the control of the Company. The extent to which COVID-19 impacts our business and results of operations continues to be inherently uncertain and will depend on numerous evolving factors that we may not be able to accurately predict. There can be no assurance that the Company will achieve the results expressed by this guidance.
2021 Full Year Outlook:
GAAP Outlook: For 2021, revenue is expected to be between
Adjusted Outlook: For 2021, Adjusted EBITDA is expected to be between
2021 Second Quarter Outlook:
GAAP Outlook: For the second quarter of 2021, revenue is expected to be between
Adjusted Outlook: For the second quarter of 2021, Adjusted EBITDA is expected to be between
Earnings Webcast Details
In conjunction with this release, TransUnion will host a conference call and webcast today at 8:30 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session and the accompanying presentation materials may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.
About TransUnion
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.
A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.
http://www.transunion.com/business
Availability of Information on TransUnion’s Website
Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.
Non-GAAP Financial Measures
This earnings release presents constant currency growth rates assuming foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. This earnings release also presents organic constant currency growth rates, which assumes consistent foreign currency exchange rates between years and also eliminates the impact of our recent acquisitions. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates and the impacts of recent acquisitions.
This earnings release also presents Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Effective Tax Rate, Adjusted Net Income (Loss) and Adjusted Diluted Earnings per Share for all periods presented. These are important financial measures for the Company but are not financial measures as defined by GAAP. We present Adjusted EBITDA and Adjusted Net Income as supplemental measures of our operating performance because these measures eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. Adjusted EBITDA is also a measure frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours. Our board of directors and executive management team use Adjusted EBITDA as compensation measures. Under the credit agreement governing our Senior Secured Credit Facility, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to a ratio based on Adjusted EBITDA. These financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of GAAP. Other companies in our industry may define or calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, including operating income, operating margin, effective tax rate, net income (loss) attributable to the Company, earnings per share or cash provided by operating activities. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the attached Schedules.
We define Adjusted EBITDA as net income (loss) attributable to TransUnion plus net interest expense, plus (less) provision (benefit) for income taxes, plus depreciation and amortization, plus stock-based compensation, plus mergers, acquisitions, divestitures and business optimization-related expenses, plus certain accelerated technology investment expenses to migrate to the cloud, plus (less) certain other expenses (income). We define Adjusted Net Income as net income (loss) attributable to TransUnion plus stock-based compensation, plus mergers, acquisitions, divestitures and business optimization-related expenses, plus certain accelerated technology investment expenses, plus (less) certain other expenses (income), plus amortization of certain intangible assets, plus or minus the related changes in provision for income taxes. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted-average diluted shares outstanding. The above definitions apply to our calculations for the periods shown on Schedules 1 through 6.
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negative of these words and other similar expressions. Factors that could cause actual results to differ materially from those described in the forward-looking statements include: the effects of the COVID-19 pandemic; the duration of the COVID-19 pandemic and the timing of the recovery from the COVID-19 pandemic; the existence and prevalence of variants of the COVID-19 virus; macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets; our ability to provide competitive services and prices; our ability to retain or renew existing agreements with large or long-term customers; our ability to maintain the security and integrity of our data; our ability to deliver services timely without interruption; our ability to maintain our access to data sources; government regulation and changes in the regulatory environment; litigation or regulatory proceedings; regulatory oversight of “critical activities”; our ability to effectively manage our costs; economic and political stability in the United States and international markets where we operate; our ability to effectively develop and maintain strategic alliances and joint ventures; our ability to timely develop new services and the market’s willingness to adopt our new services; our ability to manage and expand our operations and keep up with rapidly changing technologies; our ability to make acquisitions, successfully integrate the operations of acquired businesses and realize the intended benefits of such acquisitions; our ability to protect and enforce our intellectual property, trade secrets and other forms of unpatented intellectual property; our ability to defend our intellectual property from infringement claims by third parties; the ability of our outside service providers and key vendors to fulfill their obligations to us; further consolidation in our end-customer markets; the increased availability of free or inexpensive consumer information; losses against which we do not insure; our ability to make timely payments of principal and interest on our indebtedness; our ability to satisfy covenants in the agreements governing our indebtedness; our ability to maintain our liquidity; share repurchase plans; our reliance on key management personnel; and other one-time events and other factors that can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on TransUnion’s website (www.transunion.com/tru) and on the Securities and Exchange Commission’s website (www.sec.gov). Many of these factors are beyond our control. The forward-looking statements contained in this earnings release speak only as of the date of this earnings release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this earnings release.
In addition to factors previously disclosed in TransUnion’s reports filed with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the recent business acquisitions; the effects of pending and future legislation; risks related to disruption of management time from ongoing business operations due to the recent business acquisitions; macroeconomic factors beyond TransUnion’s control; risks related to TransUnion’s indebtedness and other consequences associated with mergers, acquisitions and divestitures, and legislative and regulatory actions and reforms.
| For More Information | |
| E-mail: | Investor.Relations@transunion.com |
| Telephone: | 312.985.2860 |
TRANSUNION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(in millions, except per share data)
| March 31, 2021 | December 31, 2020 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 433.0 | $ | 493.0 | ||||||
| Trade accounts receivable, net of allowance of | 488.1 | 453.7 | ||||||||
| Other current assets | 202.3 | 159.5 | ||||||||
| Total current assets | 1,123.4 | 1,106.2 | ||||||||
| Property, plant and equipment, net of accumulated depreciation and amortization of | 215.0 | 223.2 | ||||||||
| Goodwill | 3,454.8 | 3,461.5 | ||||||||
| Other intangibles, net of accumulated amortization of | 2,242.7 | 2,284.6 | ||||||||
| Other assets | 251.7 | 236.1 | ||||||||
| Total assets | $ | 7,287.6 | $ | 7,311.6 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities: | ||||||||||
| Trade accounts payable | $ | 203.5 | $ | 193.2 | ||||||
| Short-term debt and current portion of long-term debt | 62.7 | 55.5 | ||||||||
| Other current liabilities | 364.0 | 415.8 | ||||||||
| Total current liabilities | 630.2 | 664.5 | ||||||||
| Long-term debt | 3,293.3 | 3,398.7 | ||||||||
| Deferred taxes | 407.8 | 396.8 | ||||||||
| Other liabilities | 193.2 | 215.5 | ||||||||
| Total liabilities | 4,524.5 | 4,675.5 | ||||||||
| Stockholders’ equity: | ||||||||||
| Common stock, | 2.0 | 2.0 | ||||||||
| Additional paid-in capital | 2,116.8 | 2,088.1 | ||||||||
| Treasury stock at cost; 5.5 million and 5.2 million shares at March 31, 2021 and December 31, 2020, respectively | (243.8 | ) | (215.2 | ) | ||||||
| Retained earnings | 1,050.8 | 937.4 | ||||||||
| Accumulated other comprehensive loss | (260.3 | ) | (272.1 | ) | ||||||
| Total TransUnion stockholders’ equity | 2,665.5 | 2,540.2 | ||||||||
| Noncontrolling interests | 97.6 | 95.9 | ||||||||
| Total stockholders’ equity | 2,763.1 | 2,636.1 | ||||||||
| Total liabilities and stockholders’ equity | $ | 7,287.6 | $ | 7,311.6 | ||||||
TRANSUNION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(in millions, except per share data)
| Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Revenue | $ | 745.3 | $ | 687.6 | ||||||
| Operating expenses | ||||||||||
| Cost of services (exclusive of depreciation and amortization below) | 243.2 | 225.1 | ||||||||
| Selling, general and administrative | 227.2 | 235.4 | ||||||||
| Depreciation and amortization | 94.3 | 90.3 | ||||||||
| Total operating expenses | 564.6 | 550.8 | ||||||||
| Operating income | 180.7 | 136.8 | ||||||||
| Non-operating income and (expense) | ||||||||||
| Interest expense | (25.8 | ) | (37.7 | ) | ||||||
| Interest income | 0.7 | 1.9 | ||||||||
| Earnings from equity method investments | 3.0 | 2.6 | ||||||||
| Other income and (expense), net | (0.4 | ) | (7.0 | ) | ||||||
| Total non-operating income and (expense) | (22.5 | ) | (40.2 | ) | ||||||
| Income before income taxes | 158.2 | 96.6 | ||||||||
| Provision for income taxes | (27.5 | ) | (22.3 | ) | ||||||
| Net income | 130.6 | 74.3 | ||||||||
| Less: net (income) loss attributable to the noncontrolling interests | (2.7 | ) | (4.1 | ) | ||||||
| Net income attributable to TransUnion | $ | 127.9 | $ | 70.2 | ||||||
| Weighted-average shares outstanding: | ||||||||||
| Basic | 190.9 | 189.2 | ||||||||
| Diluted | 192.5 | 192.2 | ||||||||
| Earnings per share: | ||||||||||
| Basic | $ | 0.67 | $ | 0.37 | ||||||
| Diluted | $ | 0.66 | $ | 0.37 | ||||||
As a result of displaying amounts in millions, rounding differences may exist in the table above.
TRANSUNION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 130.6 | $ | 74.3 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 94.3 | 90.3 | |||||||
| Net gain on investments in affiliated companies and assets of businesses held for sale | (0.5 | ) | (1.8 | ) | |||||
| Deferred taxes | 4.0 | (0.6 | ) | ||||||
| Stock-based compensation | 17.9 | 4.9 | |||||||
| Provision for losses on trade accounts receivable | 1.1 | 6.2 | |||||||
| Other | 0.5 | 1.3 | |||||||
| Changes in assets and liabilities: | |||||||||
| Trade accounts receivable | (35.3 | ) | (40.6 | ) | |||||
| Other current and long-term assets | (23.4 | ) | (0.5 | ) | |||||
| Trade accounts payable | 7.2 | 12.3 | |||||||
| Other current and long-term liabilities | (51.6 | ) | (20.3 | ) | |||||
| Cash provided by operating activities | 144.8 | 125.5 | |||||||
| Cash flows from investing activities: | |||||||||
| Capital expenditures | (43.2 | ) | (42.0 | ) | |||||
| Proceeds from sale/maturities of other investments | 1.5 | 19.4 | |||||||
| Purchases of other investments | (19.8 | ) | (0.2 | ) | |||||
| Purchases of convertible notes and investments in nonconsolidated affiliates | (10.0 | ) | (5.2 | ) | |||||
| Other | (0.4 | ) | 2.5 | ||||||
| Cash used in investing activities | (71.9 | ) | (25.5 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Repayments of debt | (99.6 | ) | (13.8 | ) | |||||
| Proceeds from issuance of common stock and exercise of stock options | 10.1 | 10.9 | |||||||
| Dividends to shareholders | (15.0 | ) | (14.7 | ) | |||||
| Employee taxes paid on restricted stock units recorded as treasury stock | (27.7 | ) | (32.1 | ) | |||||
| Cash used in financing activities | (132.2 | ) | (49.7 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (0.7 | ) | (18.7 | ) | |||||
| Net change in cash and cash equivalents | (60.0 | ) | 31.6 | ||||||
| Cash and cash equivalents, beginning of period | 493.0 | 274.1 | |||||||
| Cash and cash equivalents, end of period | $ | 433.0 | $ | 305.7 | |||||
As a result of displaying amounts in millions, rounding differences may exist in the table above.
SCHEDULE 1
TRANSUNION AND SUBSIDIARIES
Revenue and Adjusted EBITDA growth rates as Reported, CC, Inorganic, Organic and Organic CC (Unaudited)
| For the Three Months Ended March 31, 2021 compared with the Three Months Ended March 31, 2020 | ||||||||||||||||||||
| Reported | CC Growth(1) | Inorganic(2) | Organic Growth(3) | Organic CC Growth(4) | ||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Consolidated | 8.4 | % | 7.8 | % | 0.8 | % | 7.6 | % | 7.0 | % | ||||||||||
| U.S. Markets | 11.0 | % | 10.9 | % | 1.3 | % | 9.7 | % | 9.7 | % | ||||||||||
| Financial Services | 14.2 | % | 14.2 | % | — | % | 14.1 | % | 14.1 | % | ||||||||||
| Emerging Verticals | 7.1 | % | 7.0 | % | 2.8 | % | 4.3 | % | 4.3 | % | ||||||||||
| International | 5.4 | % | 2.9 | % | — | % | 5.4 | % | 2.9 | % | ||||||||||
| Canada | 14.7 | % | 8.5 | % | — | % | 14.7 | % | 8.5 | % | ||||||||||
| Latin America | (0.9 | ) | % | 4.9 | % | — | % | (0.9 | ) | % | 4.9 | % | ||||||||
| United Kingdom | 3.1 | % | (4.6 | ) | % | — | % | 3.1 | % | (4.6 | ) | % | ||||||||
| Africa | (4.2 | ) | % | (4.8 | ) | % | — | % | (4.2 | ) | % | (4.8 | ) | % | ||||||
| India | 10.2 | % | 11.0 | % | — | % | 10.2 | % | 11.0 | % | ||||||||||
| Asia Pacific | 5.8 | % | 5.0 | % | — | % | 5.8 | % | 5.0 | % | ||||||||||
| Consumer Interactive | 2.9 | % | 2.9 | % | — | % | 2.9 | % | 2.9 | % | ||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||
| Consolidated | 14.1 | % | 13.5 | % | (0.8 | ) | % | 14.9 | % | 14.3 | % | |||||||||
| U.S. Markets | 15.9 | % | 15.9 | % | (1.3 | ) | % | 17.2 | % | 17.2 | % | |||||||||
| International | 18.6 | % | 16.0 | % | — | % | 18.6 | % | 16.0 | % | ||||||||||
| Consumer Interactive | 2.0 | % | 2.0 | % | — | % | 2.0 | % | 2.0 | % | ||||||||||
| (1) | Constant Currency (“CC”) growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. |
| (2) | Inorganic growth rate represents growth attributable to the first twelve months of activity for recent business acquisitions. |
| (3) | Organic growth rate is the reported growth rate less the inorganic growth rate. |
| (4) | Organic CC growth rate is the CC growth rate less inorganic growth rate. |
SCHEDULE 2
TRANSUNION AND SUBSIDIARIES
Consolidated and Segment Revenue, Adjusted EBITDA, and Adjusted EBITDA Margins (Unaudited)
(dollars in millions)
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Revenue: | |||||||||
| U.S. Markets gross revenue | |||||||||
| Financial Services | $ | 263.1 | $ | 230.4 | |||||
| Emerging Verticals | 205.0 | 191.5 | |||||||
| Total U.S. Markets gross revenue | $ | 468.1 | $ | 421.9 | |||||
| International gross revenue | |||||||||
| Canada | $ | 30.4 | $ | 26.5 | |||||
| Latin America | 24.1 | 24.3 | |||||||
| United Kingdom | 50.3 | 48.8 | |||||||
| Africa | 13.7 | 14.3 | |||||||
| India | 34.0 | 30.8 | |||||||
| Asia Pacific | 13.8 | 13.0 | |||||||
| Total International gross revenue | $ | 166.3 | $ | 157.7 | |||||
| Consumer Interactive gross revenue | $ | 130.4 | $ | 126.7 | |||||
| Less: intersegment eliminations | |||||||||
| U.S. Markets | $ | (17.4 | ) | $ | (17.1 | ) | |||
| International | (1.4 | ) | (1.3 | ) | |||||
| Consumer Interactive | (0.5 | ) | (0.4 | ) | |||||
| Total intersegment eliminations | $ | (19.4 | ) | $ | (18.7 | ) | |||
| Total revenue, as reported | $ | 745.3 | $ | 687.6 | |||||
| Adjusted EBITDA: | |||||||||
| U.S. Markets | $ | 198.8 | $ | 171.5 | |||||
| International | 71.4 | 60.2 | |||||||
| Consumer Interactive | 58.5 | 57.4 | |||||||
| Corporate | (28.4 | ) | (25.8 | ) | |||||
| Consolidated Adjusted EBITDA | $ | 300.4 | $ | 263.4 | |||||
| Adjusted EBITDA margin: | |||||||||
| U.S. Markets | 42.5 | % | 40.7 | % | |||||
| International | 42.9 | % | 38.2 | % | |||||
| Consumer Interactive | 44.9 | % | 45.3 | % | |||||
| Consolidated | 40.3 | % | 38.3 | % | |||||
Segment Adjusted EBITDA margins are calculated using segment gross revenue and segment Adjusted EBITDA. Consolidated Adjusted EBITDA margin is calculated using total revenue as reported and consolidated Adjusted EBITDA.
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Reconciliation of net income attributable to TransUnion to consolidated Adjusted EBITDA: | |||||||||
| Net income attributable to TransUnion | $ | 127.9 | $ | 70.2 | |||||
| Net interest expense | 25.1 | 35.8 | |||||||
| Provision for income taxes | 27.5 | 22.3 | |||||||
| Depreciation and amortization | 94.3 | 90.3 | |||||||
| EBITDA | 274.8 | 218.5 | |||||||
| Adjustments to EBITDA: | |||||||||
| Stock-based compensation(1) | 16.3 | 2.3 | |||||||
| Mergers and acquisitions, divestitures and business optimization(2) | 1.8 | 4.3 | |||||||
| Accelerated technology investment(3) | 7.3 | 2.5 | |||||||
| Net other(4) | 0.1 | 35.7 | |||||||
| Total adjustments to EBITDA | 25.6 | 44.8 | |||||||
| Consolidated Adjusted EBITDA | $ | 300.4 | $ | 263.4 | |||||
| Net income attributable to TransUnion as a percentage of revenue | 17.2 | % | 10.2 | % | |||||
| Consolidated Adjusted EBITDA margin | 40.3 | % | 38.3 | % | |||||
As a result of displaying amounts in millions, rounding differences may exist in the tables above and footnotes below.
| (1) | Consisted of stock-based compensation and cash-settled stock-based compensation. |
| (2) | For the three months ended March 31, 2021, consisted of the following adjustments: For the three months ended March 31, 2020, consisted of the following adjustments: |
| (3) | Represents expenses associated with our accelerated technology investment. |
| (4) | For the three months ended March 31, 2021, consisted of the following adjustments: For the three months ended March 31, 2020, consisted of the following adjustments: |
SCHEDULE 3
TRANSUNION AND SUBSIDIARIES
Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)
(in millions, except per share data)
| Three Months Ended March 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Net income attributable to TransUnion | $ | 127.9 | $ | 70.2 | ||||||
| Weighted-average shares outstanding: | ||||||||||
| Basic | 190.9 | 189.2 | ||||||||
| Diluted | 192.5 | 192.2 | ||||||||
| Earnings per share: | ||||||||||
| Basic | $ | 0.67 | $ | 0.37 | ||||||
| Diluted | $ | 0.66 | $ | 0.37 | ||||||
| Reconciliation of net income attributable to TransUnion to Adjusted Net Income: | ||||||||||
| Net income attributable to TransUnion | $ | 127.9 | $ | 70.2 | ||||||
| Adjustments before income tax items: | ||||||||||
| Stock-based compensation(1) | 16.3 | 2.3 | ||||||||
| Mergers and acquisitions, divestitures and business optimization(2) | 1.8 | 4.3 | ||||||||
| Accelerated technology investment(3) | 7.3 | 2.5 | ||||||||
| Net other(4) | (0.2 | ) | 35.3 | |||||||
| Amortization of certain intangible assets(5) | 47.9 | 48.7 | ||||||||
| Total adjustments before income tax items | 73.1 | 93.1 | ||||||||
| Change in provision for income taxes per schedule 4 | (25.2 | ) | (22.6 | ) | ||||||
| Adjusted Net Income | $ | 175.8 | $ | 140.7 | ||||||
| Weighted-average shares outstanding(6): | ||||||||||
| Basic | 190.9 | 189.2 | ||||||||
| Diluted | 192.5 | 192.2 | ||||||||
| Adjusted Earnings per Share: | ||||||||||
| Basic | $ | 0.92 | $ | 0.74 | ||||||
| Diluted | $ | 0.91 | $ | 0.73 | ||||||
| Anti-dilutive weighted stock-based awards outstanding | 0.3 | 0.2 | ||||||||
As a result of displaying amounts in millions, rounding differences may exist in the table above and footnotes below.
| (1) | Consisted of stock-based compensation and cash-settled stock-based compensation. |
| (2) | For the three months ended March 31, 2021, consisted of the following adjustments: For the three months ended March 31, 2020, consisted of the following adjustments: |
| (3) | Represents expenses associated with our accelerated technology investment. |
| (4) | For the three months ended March 31, 2021, consisted of the following adjustments: For the three months ended March 31, 2020, consisted of the following adjustments: |
| (5) | Consisted of amortization of intangible assets from our 2012 change in control transaction and amortization of intangible assets established in business acquisitions after our 2012 change in control transaction. |
| (6) | As of March 31, 2021 and March 31, 2020, there were 0.3 million and 1.3 million contingently-issuable performance-based stock awards outstanding in each respective period that were excluded from the diluted earnings per share calculation because the contingencies had not been met. |
SCHEDULE 4
TRANSUNION AND SUBSIDIARIES
Effective Tax Rate and Adjusted Effective Tax Rate (Unaudited)
(dollars in millions)
| Three Months Ended March 31, | |||||||||
| 2021 | 2020 | ||||||||
| Income before income taxes | $ | 158.2 | $ | 96.6 | |||||
| Total adjustments before income tax items from schedule 3 | 73.1 | 93.1 | |||||||
| Noncontrolling interest portion of Adjusted Net Income adjustments | — | 0.1 | |||||||
| Adjusted income before income taxes | $ | 231.3 | $ | 189.8 | |||||
| (Provision) benefit for income taxes | $ | (27.5 | ) | $ | (22.3 | ) | |||
| Adjustments for income taxes: | |||||||||
| Tax effect of above adjustments(1) | (15.5 | ) | (19.2 | ) | |||||
| Eliminate impact of excess tax benefits for share compensation(2) | (5.8 | ) | (16.2 | ) | |||||
| Other(3) | (4.0 | ) | 12.9 | ||||||
| Total adjustments for income taxes | (25.2 | ) | (22.6 | ) | |||||
| Adjusted provision for income taxes | $ | (52.8 | ) | $ | (44.9 | ) | |||
| Effective tax rate | 17.4 | % | 23.1 | % | |||||
| Adjusted Effective Tax Rate | 22.8 | % | 23.6 | % | |||||
As a result of displaying amounts in millions, rounding differences may exist in the table above.
| (1) | Tax rates used to calculate the tax expense impact are based on the nature of each item. |
| (2) | Eliminates the impact of excess tax benefits for share compensation. |
| (3) | Eliminates impact of state and foreign tax rate changes on deferred taxes, valuation allowances on foreign net operating losses, capital losses and foreign tax credits and other discrete adjustments. |
SCHEDULE 5
TRANSUNION AND SUBSIDIARIES
Segment Depreciation and Amortization (Unaudited)
(in millions)
| Three Months Ended March 31, | |||||||
| 2021 | 2020 | ||||||
| U.S. Markets | $ | 56.1 | $ | 55.9 | |||
| International | 33.0 | 29.4 | |||||
| Consumer Interactive | 3.7 | 3.7 | |||||
| Corporate | 1.5 | 1.4 | |||||
| Total depreciation and amortization | $ | 94.3 | $ | 90.3 | |||
As a result of displaying amounts in millions, rounding differences may exist in the table above.
SCHEDULE 6
TRANSUNION AND SUBSIDIARIES
Reconciliation of Non-GAAP Guidance (Unaudited)
(in millions, except per share data)
| Three Months Ended June 30, 2021 | Twelve Months Ended December 31, 2021 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Guidance reconciliation of net income attributable to TransUnion to Adjusted EBITDA: | |||||||||||||||
| Net income attributable to TransUnion | $ | 112 | $ | 117 | $ | 425 | $ | 449 | |||||||
| Interest, taxes and depreciation and amortization | 151 | 153 | 592 | 599 | |||||||||||
| EBITDA | 263 | 270 | 1,017 | 1,048 | |||||||||||
| Stock-based compensation, mergers, acquisitions divestitures and business optimization-related expenses and other adjustments(1) | 34 | 34 | 141 | 141 | |||||||||||
| Adjusted EBITDA | $ | 296 | $ | 303 | $ | 1,157 | $ | 1,189 | |||||||
| Reconciliation of diluted earnings per share to Adjusted Diluted Earnings per Share: | |||||||||||||||
| Diluted earnings per share | $ | 0.58 | $ | 0.61 | $ | 2.20 | $ | 2.33 | |||||||
| Adjustments to diluted earnings per share(1) | 0.32 | 0.31 | 1.25 | 1.25 | |||||||||||
| Adjusted Diluted Earnings per Share | $ | 0.89 | $ | 0.92 | $ | 3.45 | $ | 3.58 | |||||||
As a result of displaying amounts in millions, rounding differences may exist in the table above.
| (1) | These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of our Earnings Release. |
FAQ
What were TransUnion's Q1 2021 revenue and earnings?
What is the guidance for TransUnion's 2021 revenue?
How much did TransUnion's diluted earnings per share increase in Q1 2021?
What is TransUnion's adjusted EBITDA for Q1 2021?
What are the expectations for TransUnion's Q2 2021 revenue?
