TransUnion on Tuesday announced results for the first quarter ended March 31, a combined announcement that includes consolidated financial statements for TransUnion Holding Company Inc. and TransUnion Corp., a direct 100% owned subsidiary of TransUnion Holding.

First Quarter 2013 Highlights
        --  Total revenue for the first quarter increased 3.5%. Weakening foreign currencies accounted for a decrease in revenue of 1.3% and acquisitions accounted for an increase in revenue of 0.6%.           
        --  Revenue in USIS Online Data Services increased 4.6%, driven by an increase in online credit report volumes in the financial services and reseller markets.
        --  Revenue in USIS Decision Services increased 6.9%, driven by growth in Financial Services and Healthcare.
        --  Revenue in International emerging markets declined 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 decrease in emerging markets revenue of 10.2%.
        --  Acquisitions accounted for an increase in emerging markets revenue of 4.7%.      

"In the first quarter we generated organic constant currency growth, versus a particularly strong first quarter of 2012, while continuing to invest in long-term growth initiatives," said Jim Peck, the company's president and chief executive officer. "In my first quarter at TransUnion, I've found a company abundant with potential. We will further unlock this potential by continuing to identify, pursue and invest in organic growth initiatives that will drive long-term growth and value creation."

First Quarter 2013 Results

The company reported revenue of $290.5 million, an increase of 3.5% compared to the first quarter of 2012. Weakening foreign currencies accounted for a decrease in revenue of 1.3%. Acquisitions accounted for an increase in revenue of 0.6%.

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.

Non-operating expense was $50.1 million in the first quarter of 2013 compared to $41.7 million in the prior year due to an increase in interest expense related primarily to the issuance of $600 million and $400 million principal amount of senior unsecured PIK toggle notes in the first and fourth quarters of 2012, respectively.

Higher interest expense and the purchase accounting depreciation and amortization contributed to the net loss attributable to the company of $6.3 million compared to net income of $1.7 million in the first quarter of 2012.

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 of11.7%, 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.
    
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%.

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.

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