NEUSTAR INC

CIK:0001265888|SEC Filings

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 297,938	$ 297,565	$ 591,124	$ 584,863
Operating expense:
Cost of revenue (excluding depreciation and amortization shown separately below)	87,322	90,237	175,238	181,588
Sales and marketing	53,971	54,288	110,528	109,611
Research and development	7,604	5,260	14,276	12,809
General and administrative	27,111	27,238	55,471	54,756
Depreciation and amortization	35,452	38,829	70,379	77,311
Restructuring charges	8,012	6,129	8,039	8,793
Separation costs	0	4,218	1,789	4,218
Total operating expense	219,472	226,199	435,720	449,086
Income from operations	78,466	71,366	155,404	135,777
Other (expense) income:
Interest and other expense	(10,630)	(15,691)	(22,901)	(32,802)
Interest income	74	67	146	241
Income before income taxes	67,910	55,742	132,649	103,216
Provision for income taxes	22,991	17,621	42,287	33,720
Net income	$ 44,919	$ 38,121	$ 90,362	$ 69,496
Net income per common share:
Basic (usd per share)	$ 0.80	$ 0.70	$ 1.63	$ 1.28
Diluted (usd per share)	$ 0.79	$ 0.69	$ 1.58	$ 1.26
Weighted average common shares outstanding:
Basic (in shares)	55,865	54,458	55,589	54,205
Diluted (in shares)	57,029	55,082	57,019	54,980

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Net income	$ 90,362	$ 69,496
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,379	77,311
Stock-based compensation	20,063	20,474
Amortization of deferred financing costs and original issue discount on debt	5,640	8,890
Tax benefit from equity awards	0	(260)
Deferred income taxes	(2,993)	1,237
Provision for doubtful accounts	3,600	3,600
Changes in operating assets and liabilities:
Accounts receivable	16,882	(12,459)
Unbilled receivables	3,945	3,012
Prepaid expenses and other current assets	7,378	(7,630)
Deferred costs	1,684	(3,018)
Income taxes	36,207	8,526
Other assets	222	3,051
Other liabilities	469	(842)
Accounts payable and accrued expenses	(27,448)	(44,538)
Deferred revenue	(407)	(2,545)
Net cash provided by operating activities	225,983	124,305
Investing activities:
Purchases of property and equipment	(29,092)	(23,366)
Businesses acquired, net of cash acquired	0	12
Net cash used in investing activities	(29,092)	(23,354)
Financing activities:
Decrease in restricted cash	144	73
Payments under notes payable obligations	(139,878)	(126,731)
Principal repayments on capital lease obligations	(1,336)	(2,774)
Proceeds from issuance of stock	6,161	432
Tax benefit from equity awards	0	260
Repurchase of restricted stock awards and common stock	(12,539)	(10,762)
Net cash used in financing activities	(147,448)	(139,502)
Effect of foreign exchange rates on cash and cash equivalents	(393)	111
Net (decrease) increase in cash and cash equivalents	49,050	(38,440)
Cash and cash equivalents at beginning of period	45,773	89,097
Cash and cash equivalents at end of period	$ 94,823	$ 50,657

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 94,823	$ 45,773
Restricted cash	2,139	2,283
Accounts receivable, net of allowance for doubtful accounts of $6,572 and $7,823, respectively	186,869	207,595
Unbilled receivables	15,865	19,795
Prepaid expenses and other current assets	36,718	41,680
Deferred costs	10,500	11,469
Income taxes receivable	0	13,586
Total current assets	346,914	342,181
Property and equipment, net	151,810	145,821
Goodwill	1,173,203	1,168,982
Intangible assets, net	384,931	423,957
Other assets, long-term	16,881	17,771
Total assets	2,073,739	2,098,712
Current liabilities:
Accounts payable	22,185	21,095
Accrued expenses	104,200	134,545
Deferred revenue	100,583	91,188
Notes payable	74,555	103,725
Capital lease obligations	121	1,457
Income taxes payable	22,621	0
Other liabilities	14,116	11,632
Total current liabilities	338,381	363,642
Deferred revenue, long-term	23,582	22,437
Notes payable, long-term	597,196	702,946
Deferred income tax liabilities, long-term	34,554	35,088
Other liabilities, long-term	51,694	53,298
Total liabilities	1,045,407	1,177,411
Commitments and contingencies	0	0
Stockholders’ equity:
Preferred stock, $0.001 par value; 100,000,000 shares authorized; no shares issued and outstanding as of December 31, 2016 and June 30, 2017	0	0
Additional paid-in capital	800,784	771,450
Treasury stock, 27,239,571 and 27,707,439 shares at December 31, 2016 and June 30, 2017, respectively, at cost	(949,232)	(933,581)
Accumulated other comprehensive (loss) income	1,199	(1,785)
Retained earnings	1,175,497	1,085,135
Total stockholders’ equity	1,028,332	921,301
Total liabilities and stockholders’ equity	2,073,739	2,098,712
Class A common stock
Stockholders’ equity:
Common stock, par value $0.001	84	82
Class B common stock
Stockholders’ equity:
Common stock, par value $0.001	$ 0	$ 0