TransUnion Reports Fourth Quarter & Full Year 2012 Results

TransUnion Reports Fourth Quarter & Full Year 2012 Results 
CHICAGO, IL -- (Marketwire) -- 02/25/13 --  TransUnion today
announced results for the fourth quarter and fiscal year ended
December 31, 2012. This is a combined announcement that includes
consolidated financial statements for TransUnion Holding Company,
Inc. ("TransUnion Holding," and together with its consolidated
subsidiaries, the "Company") and TransUnion Corp., a direct 100%
owned subsidiary of TransUnion Holding(1). 
Fourth Quarter 2012 Highlights 


 
--  Total revenue for the fourth quarter increased 12.4%. Weakening
    foreign currencies accounted for a reduction in revenue of 0.4% and
    acquisitions accounted for an increase in revenue of 3.0%.
    --  Revenue in USIS Online Data Services increased 9.4%, driven by an
        increase in online credit report volumes in the financial services
        and reseller markets.
    --  Revenue in USIS Decision Services increased 15.1%, driven by
        strong performance in Financial Services and Healthcare insurance
        eligibility and patient payment estimation.
    --  Revenue in International emerging markets increased 22.6%, driven
        by increased volumes in all regions and the acquisitions of Crivo
        Sistemas em Informatica S.A. ("Crivo") in Brazil and Credit
        Reference Bureau (Holdings) Limited ("CRB") in Africa.
        --  Weakening foreign currencies accounted for a reduction in
            emerging markets revenue of 4.9%.
        --  Acquisitions accounted for an increase in emerging markets
            revenue of 23.4%.
    --  Revenue in the Interactive segment increased 23.1%, driven by an
        increase in the average number of subscribers in the indirect
        channel and an increase in the average revenue per subscriber in
        the direct channel.
--  Adjusted EBITDA(2) was $89.1 million, an increase of 2.9% compared to
    the prior year, while the Company continued to invest in new
    initiatives to drive long-term growth.

  
"Our positive momentum continued in the fourth quarter as we closed out
a strong fiscal 2012, highlighted by double-digit organic constant
currency revenue growth and high single-digit EBITDA growth. This
performance was driven by strong core business results, investment
s
in high growth verticals and markets, and positive macroeconomic
trends," said Bobby Mehta, the Company's former president and chief
executive officer. "As I transition into my new role of Board member,
strategic advisor and investor, my conviction regarding the future
prospects for TransUnion remains stronger than ever." 
The Company's new president and chief executive officer, Jim Peck
added, "The positive momentum we established in 2012 positions us for
continued success in 2013 and beyond. I am excited to lead TransUnion
through this next phase of growth and achievement."  
(1) Due to the acquisition of TransUnion Corp. by TransUnion Holding,
TransUnion Corp.'s financial statements are prepared on a Predecessor
and Successor basis. In this earnings release, we combine the
Predecessor and Successor results and compare the combined TransUnion
Holding and TransUnion Corp. results in 2012 with the TransUnion
Corp. results in 2011. TransUnion Holding and TransUnion Corp.
operate as one business, with one management team. Management
believes combining the earnings release of TransUnion Holding and
TransUnion Corp. provides the following benefits: enhances investors'
understanding of TransUnion Holding and TransUnion Corp. by enabling
investors to view the business as a whole, the same manner as
management views and operates the business; provides a more readable
presentation of required disclosures with less duplication, since a
substantial portion of the Company's disclosures apply to both
TransUnion Holding and TransUnion Corp; and creates time and cost
efficiencies through the preparation of one combined report instead
of two separate reports. 
 (2) See page 18 for a reconciliation of
Adjusted Operating Income & Adjusted EBITDA to their most directly
comparable GAAP measures, operating income and net income
attributable to the Company, respectively. 
Fourth Quarter 2012 Results 
The Company reported revenue of $284.4 million, an increase of 12.4%
compared to the fourth quarter of 2011. Weakening foreign currencies
accounted for a reduction in revenue of 0.4%. Acquisitions accounted
for an increase in revenue of 3.0%.  
Operating income of $43.4 million in the fourth quarter, compared to
$64.3 million in the prior year, was negatively impacted by a $22.2
million increase in depreciation and amortization, primarily
resulting 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 1.5% compared to the fourth quarter of
2011, while the Company continued to invest in new initiatives to
drive long-term growth.  
Non-operating expense was $46.5 million in the fourth quarter of 2012
compared to $33.5 million in the prior year due to an increase in
interest expense primarily related to the issuance of $600 million
and $400 million principal amount of senior unsecured PIK toggle
notes in the second quarter of 2012 and the fourth quarter of 2012,
respectively. Higher interest expense and the purchase accounting
depreciation and amortization resulted in a net loss attributable to
the Company of $8.2 million compared to net income of $16.3 million
in the fourth quarter of 2011.  
Segment Highlights 
U.S. Information Services (USIS) 
USIS revenue was $178.2 million, an increase of 9.0% percent compared
to the fourth quarter of 2011, with increases in all platforms due to
improved market conditions and strong performance in Financial
Services and Healthcare.  


 
--  Online Data Services revenue was $120.3 million, an increase of 9.4%,
    driven by an increase in core credit report volumes.
--  Credit Marketing Services revenue was $32.8 million, an increase of
    3.5%, due to greater demand for custom data sets and archive
    information, as customers increased their credit marketing programs.
--  Decision Services revenue was $25.1 million, an increase of 15.1%,
    driven by strong performance in Financial Services and Healthcare
    insurance eligibility and patient payment estimation.

  
Operating income of $41.2 million, compared to $47.0 million in the
prior year, was negatively impacted by $12.8 million of additional
depreciation and amortization, primarily resulting from purchase
accounting adjustments related to the 2012 Change of Control
Transaction. Excluding depreciation and amortization, USIS operating
income increased 11.2% compared to the fourth quarter of 2011.  
International 
International revenue was $60.4 million, an increase of 15.5%
compared to the fourth quarter of 2011. Weakening foreign currencies
accounted for a reduction in revenue of 1.9%. Acquisitions accounted
for an increase in revenue of 13.6%.  


 
--  Developed markets revenue was $23.0 million, an increase of 5.5%, due
    to higher volumes in Canada and Hong Kong, and an increase of 2.3% due
    to the impact of strengthening foreign currencies.
--  Emerging markets revenue was $37.4 million, an increase of 22.6%,
    driven by increased volumes in all regions and the acquisition of
    
Crivo and CRB. Weakening foreign currencies accounted for a reduction
    in revenue of 4.9%. Acquisitions accounted for an increase in revenue
    of 23.4%.

  
Operating income of $5.9 million, compared to $16.6 million in the
prior year, was negatively impacted by $7.8 million of additional
depreciation and amortization, primarily resulting from purchase
accounting adjustments related to the 2012 Change of Control
Transaction. Excluding depreciation and amortization, International
operating income declined 15.6% compared to the fourth quarter of
2011. The remaining decline is attributed to planned integration
costs, continued investment in growth and the negative impact of
foreign currency.  
Interactive 
Interactive revenue was $45.8 million, an increase of 23.1% compared
to the fourth quarter of 2011, driven by an increase in the average
number of subscribers in the indirect channel and an increase in the
average revenue per subscriber in the direct channel.  
Operating income of $17.2 million increased 2.4% compared the prior
year due to the increase in revenue and despite the negative impact
of $1.0 million from additional depreciation and amortization,
primarily resulting from purchase accounting adjustments related to
the 2012 Change of Control Transaction. Excluding depreciation and
amortization, Interactive operating income increased 7.9% compared to
the fourth quarter of 2011.  
Year-to-Date 2012 Results 
The Company reported revenue of $1,140.0 million for the full year of
2012, an increase of 11.3% compared to 2011. Weakening foreign
currencies accounted for a reduction in revenue of 1.3%. Acquisitions
accounted for an increase in revenue of 2.7%.  


 
--  Revenue for U.S. Information Services was $725.5 million, an increase
    of 9.9% compared to the full year of 2011.
--  Revenue for International was $234.4 million, an increase of 8.5%
    compared to the full year of 2011. Weakening foreign currencies
    accounted for a reduction in revenue of 6.2%. Acquisitions accounted
    for an increase in revenue of 10.5%.
--  Revenue for Interactive was $180.1 million, an increase of 21.9%
    compared to the full year of 2011.

  
Operating income of $141.0 million, compared to $252.7 million in the
full year of 2011, was impacted by $90.7 million of accelerated
stock-based compensation and related expenses resulting from the 2012
Change in Control Transaction. Adjusted Operating Income of $231.7
million, compared to $259.0 million in the prior year, was negatively
impacted by $58.9 million of additional depreciation and
amortization, primarily resulting from purchase accounting
adjustments related to the 2012 Change of Control Transaction.
Excluding depreciation and amortization, operating income decreased
15.6% and Adjusted Operating Income increased 9.2% compared to the
prior year.  
Non-operating expense was $202.2 million in 2012 compared to $185.6
million in the prior year. The full year of 2012 included $42.2
million of acquisition expenses primarily related to the 2012 Change
in Control Transaction and the abandoned initial public offering
process. The full year of 2011 included a $59.3 million loss on the
early extinguishment of debt. The expenses related to the 2012 Change
in Control Transaction included in operating and non-operating income
and the purchase accounting depreciation and amortization resulted in
a net loss attributable to TransUnion of $63.7 million compared to
net income of $40.8 million in the full year of 2011.  
Adjusted EBITDA was $385.5 million, an increase of 9.3% compared to
the full year of 2011, with a corresponding margin of 33.8% compared
to 34.5% in the prior year.  
Selected Liquidity Data 
Cash and cash equivalents was $154.3 million at December 31, 2012 and
$107.8 million at December 31, 2011. Cash provided by operating
activities of TransUnion Corp. in 2012 was $144.1 million. Other 2012
cash activity of TransUnion Corp. included: $69.2 million used for
cash capital expenditures; $11.6 million used for other investing
activities; $16.9 million used for financing activities; and $0.1
million provided from the effect of exchange rate changes on cash.  
Recent Developments 
Issuance of $400 Million 8.125%/8.875% Senior PIK Toggle Notes Due
2018 
On November 1, 2012, TransUnion Holding issued $400.0 million
principal amount of 8.125%/8.875% senior unsecured PIK toggle notes
due June 15, 2018, at an offering price of 99.5% in a private
placement to certain investors. The notes contain a registration
rights agreement that will require the Company to exchange the notes
for an equal amount of notes registered with the SEC. The indenture
governing these notes and the nonfinancial covenants are
substantially similar to the outstanding senior unsecured PIK toggle
notes. The proceeds were used to pay a $373.8 million dividend to
shareholders and to pay various costs associated with issuing the new
debt and obtaining consents from existing debt holders. In addition,
TransUnion LLC prepaid $10.0 million of the senior secured term loan
with cash on hand.  
Appointment of Chief Executive Officer 
On December 11, 2012 TransUnion announced that Jim Peck had been
named the chief executive officer (CEO) and president of the company,
effective December 31, 2012. Peck succeeds Bobby Mehta who, as
previously announced, will continue to serve on TransUnion's board
and serve as an advisor to the company. Peck, 49, comes to TransUnion
from Reed Elsevier where he has led the LexisNexis Risk division
since 2004, most recently serving as the CEO since October of 2008.  
Refinancing of Senior Secured Credit Facilities  
On February 4, 2013, the Company signed amendment No. 4 to its senior
secured credit facility, which will be effective March 1, 2013. The
amendment, among other things, lowered the floor on the term loan
from 1.50% to 1.25%, lowered the margin on the term loan from 4.00%
to 3.00%, extended the term loan maturity date one year to February
2019, delayed the first required excess cash payments until 2014, and
relaxed certain covenant requirements.  
Earnings Conference Call 
In conjunction with this release, TransUnion will host a conference
call today, February 25, 2013, at 8:00 a.m. (CT) via a live
teleconference to discuss the business trends supporting fourth
quarter and full year 2012 results. The discussion will be available
via replay on the Investor Relations page at TransUnion.com shortly
after the teleconference. This earnings release is also available on
that website. The teleconference dial-in information is: 
Domestic dial-in: 866-271-0675
 International dial-in: 617-213-8892 
Teleconference code: 18739415 
About TransUnion 
As a global leader in information and risk management, TransUnion
creates advantages for millions of people around the world by
gathering, analyzing and delivering information. For businesses,
TransUnion helps improve efficiency, manage risk, reduce costs and
increase revenue by delivering high quality data, and integrating
advanced analytics and enhanced decision-making capabilities. For
consumers, TransUnion provides the tools, resources and education to
help manage their credit health and achieve their financial goals.
Through these and other efforts, TransUnion is working to build
stronger economies worldwide. Founded in 1968 and headquartered in
Chic
ago, TransUnion reaches businesses and consumers in 33 countries
around the world. 
Forward-Looking Statements 
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Any statements made in this press 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 descriptions of our business plans
and strategies. These statements often include words such as
"anticipate," "expect," "suggest," "plan," "believe," "intend,"
"estimate," "target," "project," "forecast," "should," "could,"
"would," "may," "will" and other similar expressions. 
We base these forward-looking statements on our current expectations,
plans and assumptions that we have made in light of our experience in
the industry, as well as our perceptions of historical trends,
current conditions, expected future developments and other factors we
believe are appropriate under the circumstances and at the time such
statements were made. Although we believe that these forward-looking
statements are based on reasonable assumptions, you should be aware
that many factors could affect our actual financial results or
results of operations and could cause actual results to differ
materially from those expressed in the forward-looking statements.
Factors that may materially affect such forward-looking statements
include: macroeconomic and industry trends and adverse developments
in the debt, consumer credit and financial services markets; 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; changes in federal, state,
local or foreign tax law; litigation or regulatory proceedings; our
ability to effectively develop and maintain strategic alliances and
joint ventures; our ability to make acquisitions and integrate the
operations of other businesses; our ability to timely develop new
services; our ability to manage and expand our operations and keep up
with rapidly changing technologies; our ability to manage expansion
of our business into international markets; economic and political
stability in international markets where we operate; fluctuations in
exchange rates; our ability to effectively manage our costs; our
ability to provide competitive services and prices; 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; our ability to
protect our intellectual property; our ability to retain or renew
existing agreements with long-term customers; our ability to access
the capital markets; further consolidation in our end customer
markets; reliance on key management personnel; and other factors
described under "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" of
TransUnion Holding and TransUnion Corp.'s combined Annual Report on
Form 10-K for the year ended December 31, 2012. Many of these factors
are beyond our control. The forward-looking statements contained in
this press release speak only as of the date of this press release.
We undertake no obligation to publicly release the result of any
revisions to these forward-looking statements, to reflect events or
circumstances after the date of this press release or to reflect the
occurrence of unanticipated events.  


 
                                                                            
                                                                            
             TRANSUNION HOLDING COMPANY, INC. AND SUBSIDIARIES              
                         Consolidated Balance Sheet                         
                    (in millions, except per share data)                    
                                                                            
                                                               December 31, 
                                                                   2012     
                                                              ------------- 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents                                   $       154.3 
  Trade accounts receivable, net of allowance of $1.7                 163.6 
  Other current assets                                                 82.7 
                                                              ------------- 
Total current assets                                                  400.6 
                                                                            
Property, plant and equipment, net of accumulated                           
 depreciation and amortization of $26.4                               121.2 
Other marketable securities                                            11.4 
Goodwill                                                            1,804.2 
Other intangibles, net                                              1,911.6 
Other assets                                                          129.8 
                                                              ------------- 
Total assets                                                  $     4,378.8 
                                                              ============= 
                                                                            
Liabilities and stockholders' equity                                        
Current liabilities:                                                        
  Trade accounts payable                                      $        78.4 
  Current portion of long-term debt                                    10.6 
  Other current liabilities                                           129.3 
                                                              ------------- 
Total current liabilities                                             218.3 
                                                                            
Long-term debt                                                      2,670.3 
Other liabilities                                                     679.4 
                                                              ------------- 
Total liabilities                                                   3,568.0 
                                                                            
Redeemable noncontrolling interests                                    14.7 
                                                                            
Stockholders' equity:                                                       
  Common stock, $0.01 par value; 200.0 million shares                       
   authorized at December 31, 2012, 110.2 million shares                    
   issued and 110.1 million shares outstanding as of December               
   31, 2012                                                             1.1 
  Additional paid-in capital                                        1,109.4 
  Treasury stock at cost; 0.1 million shares at December 31,                
   2012                                                                (0.7)
  Retained earnings (accumulated deficit)                            (382.6)
  Accumulated other comprehensive income (loss)                       (24.4)
                                                              ------------- 
Total TransUnion Holding Company, Inc. stockholders' equity           702.8 
Noncontrolling interests                                               93.3 
                                                              ------------- 
Total stockholde
rs' equity                                            796.1 
                                                              ------------- 
Total liabilities and stockholders' equity                    $     4,378.8 
                                                              ============= 
                                                                            
                                                                            
             TRANSUNION HOLDING COMPANY, INC. AND SUBSIDIARIES              
                      Consolidated Statement of Income                      
                               (in millions)                                
                                                                            
                                                              From the Date 
                                                               of Inception 
                                                                 Through    
                                                               December 31, 
                                                                   2012     
                                                              ------------- 
Revenue                                                       $       767.0 
                                                                            
Operating expenses                                                          
  Cost of services (exclusive of depreciation and                           
   amortization below)                                                298.2 
  Selling, general and administrative                                 212.6 
  Depreciation and amortization                                       115.0 
                                                              ------------- 
Total operating expenses                                              625.8 
                                                                            
Operating income                                                      141.2 
                                                                            
Non-operating income and expense                                            
  Interest expense                                                   (125.0)
  Interest income                                                       0.8 
  Other income and (expense), net                                     (14.3)
                                                              ------------- 
Total non-operating income and expense                               (138.5)
                                                                            
Income from operations before income taxes                              2.7 
                                                                            
Provision for income taxes                                             (6.6)
                                                              ------------- 
Net loss                                                               (3.9)
Less: net income attributable to noncontrolling interests              (4.9)
                                                              ------------- 
Net loss attributable to TransUnion Holding Company, Inc.     $        (8.8)
                                                              ============= 
                                                                            
                                                                            
                                                                            
             TRANSUNION HOLDING COMPANY, INC. AND SUBSIDIARIES              
                    Consolidated Statement of Cash Flows                    
                               (in millions)                                
                                                                            
                                                              From the Date 
                                                               of Inception 
                                                                 Through    
                                                               December 31, 
                                                                   2012     
                                                              ------------- 
Cash flows from operating activities:                                       
  Net income (loss)                                           $        (3.9)
  Adjustments to reconcile net income (loss) to net cash                    
   provided by operating activities:                                        
    Depreciation and amortization                                     115.0 
    Equity in net income of affiliates, net of dividends                1.3 
    Deferred taxes                                                     (5.1)
    Amortization of senior notes purchase accounting fair                   
     value adjustment                                                 (10.8)
    Deferred financing fees                                             2.1 
    Stock-based compensation                                            2.7 
    Provision (reduction) for losses on trade accounts                      
     receivable                                                        (1.9)
    Other                                                               2.6 
    Changes in assets and liabilities:                                      
      Trade accounts receivable                                        (1.0)
      Other current and long-term assets                              (78.8)
      Trade accounts payable                                           (0.8)
      Other current and long-term liabilities                          25.6 
                                                              ------------- 
Cash provided by operating activities                                  47.0 
                                                                            
Cash flows from investing activities:                                       
  Capital expenditures for property and equipment                     (48.8)
  Investments in trading securities                                    (0.5)
  Acquisition of TransUnion Corp., net of cash acquired            (1,485.9)
  Other acquisitions and purchases of noncontrolling                        
   interests, net of cash acquired                                    (14.2)
  Acquisition related deposits                                          3.7 
  Other                                                                (1.4)
                                                              ------------- 
Cash used in investing activities                                  (1,547.1)
                                                                            
Cash flows from financing activities:                                       
  Proceeds from 9.625% notes                                          600.0 
  Proceeds from 8.125% notes                                          398.0 
  Repayments of debt                                                  (17.2)
  Debt financing fees                                                 (41.3)
  Proceeds from issuance of common stock                            1,097.3 
  Treasury stock purchases                                             (0.7)
  Dividends                                                          (373.8)
  Distributions to noncontrolling interests                            (7.2)
                                                              ------------- 
Cash provided by financing activities                               1,655.1 
Effect of exchange rate changes on cash and cash equivalents           (0.7)
                                                              ------------- 
Net change in cash and cash equivalents                               154.3 
Cash and cash equivalents, beginning of period                            - 
                  
                                            ------------- 
Cash and cash equivalents, end of period                      $       154.3 
                                                              ============= 
                                                                            
                                                                            
                     TRANSUNION CORP. AND SUBSIDIARIES                      
                        Consolidated Balance Sheets                         
                    (in millions, except per share data)                    
                                                                            
                                                 Successor     Predecessor  
                                                December 31,   December 31, 
                                                    2012           2011     
                                               -------------  ------------- 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents                    $       154.3  $       107.8 
  Trade accounts receivable, net of allowance                               
   of $1.7 and $1.2                                    163.6          139.4 
  Other current assets                                  58.7           55.4 
  Current assets of discontinued operations                -            0.1 
                                               -------------  ------------- 
Total current assets                                   376.6          302.7 
                                                                            
Property, plant and equipment, net of                                       
 accumulated depreciation and amortization of                               
 $26.4 and $342.3                                      121.2          109.0 
Other marketable securities                             11.4           10.3 
Goodwill                                             1,804.2          275.2 
Other intangibles, net                               1,911.6          230.8 
Other assets                                            95.7           77.8 
                                               -------------  ------------- 
Total assets                                   $     4,320.7  $     1,005.8 
                                               =============  ============= 
                                                                            
Liabilities and stockholders' equity                                        
Current liabilities:                                                        
  Trade accounts payable                       $        77.5  $        75.1 
  Current portion of long-term debt                     10.6           21.8 
  Other current liabilities                            107.0          100.2 
  Current liabilities of discontinued                                       
   operations                                              -            0.4 
                                               -------------  ------------- 
Total current liabilities                              195.1          197.5 
                                                                            
Long-term debt                                       1,672.3        1,579.4 
Other liabilities                                      667.4           53.3 
                                               -------------  ------------- 
Total liabilities                                    2,534.8        1,830.2 
                                               -------------  ------------- 
                                                                            
Redeemable noncontrolling interests                     14.7              - 
                                                                            
Stockholders' equity:                                                       
  Preferred stock, $0.01 par value; 0 shares                                
   authorized; no shares issued or outstanding             -              - 
  Common stock, $0.01 par value; one thousand                               
   shares authorized, one hundred and 29.8                                  
   million shares issued at December 31, 2012                               
   and December 31, 2011, respectively; one                                 
   hundred and 29.8 million shares outstanding                              
   as of December 31, 2012 and December 31,                                 
   2011, respectively                                      -            0.3 
  Additional paid-in capital                         1,687.2          893.9 
  Treasury stock at cost; 0 shares at December                              
   31, 2012 and less than 0.1 million shares                                
   at December 31, 2011                                    -           (0.2)
  Retained earnings (accumulated deficit)               15.1       (1,739.0)
  Accumulated other comprehensive income                                    
   (loss)                                              (24.4)          (3.6)
                                               -------------  ------------- 
Total TransUnion Corp. stockholders' equity          1,677.9         (848.6)
Noncontrolling interests                                93.3           24.2 
                                               -------------  ------------- 
Total stockholders' equity                           1,771.2         (824.4)
                                               -------------  ------------- 
Total liabilities and stockholders' equity     $     4,320.7  $     1,005.8 
                                               =============  ============= 
                                                                            
                                                                            
                     TRANSUNION CORP. AND SUBSIDIARIES                      
                     Consolidated Statements of Income                      
                               (in millions)                                
                                                                            
                        Successor                 Predecessor               
                      ------------  --------------------------------------- 
                      Eight Months  Four Months     Twelve        Twelve    
                          Ended        Ended     Months Ended  Months Ended 
                      December 31,   April 30,   December 31,  December 31, 
                          2012          2012         2011          2010     
                      ------------  -----------  ------------  ------------ 
Revenue               $      767.0  $     373.0  $    1,024.0  $      956.5 
                                                                            
Operating expenses                                                          
  Cost of services                                                          
   (exclusive of                                                            
   depreciation and                                                         
   amortization                                                             
   below)                    298.2        172.0         421.5         395.8 
  Selling, general                                                          
   and administrative        211.7        172.0         264.5         263.0 
  Depreciation and                                                          
   amortization              115.0         29.2          85.3          81.6 
                      ------------  -----------  ------------  ------------ 
Total operating                                                             
 expenses                    624.9        373.2         771.3         740.4 
                    
                                                        
Operating income                                                            
 (loss)                      142.1         (0.2)        252.7         216.1 
                                                                            
Non-operating income                                                        
 and expense                                                                
  Interest expense           (72.8)       (40.5)       (126.4)        (90.1)
  Interest income              0.8          0.6           0.7           1.0 
  Other income and                                                          
   (expense), net              2.1        (23.8)        (59.9)        (44.0)
                      ------------  -----------  ------------  ------------ 
Total non-operating                                                         
 income and expense          (69.9)       (63.7)       (185.6)       (133.1)
                                                                            
Income (loss) from                                                          
 continuing                                                                 
 operations before                                                          
 income taxes                 72.2        (63.9)         67.1          83.0 
                                                                            
(Provision) benefit                                                         
 for income taxes            (24.3)        11.5         (17.8)        (46.3)
                      ------------  -----------  ------------  ------------ 
                                                                            
Income (loss) from                                                          
 continuing                                                                 
 operations                   47.9        (52.4)         49.3          36.7 
                                                                            
Discontinued                                                                
 operations, net of                                                         
 tax                             -            -          (0.5)          8.2 
                      ------------  -----------  ------------  ------------ 
Net income (loss)             47.9        (52.4)         48.8          44.9 
Less: net income                                                            
 attributable to                                                            
 noncontrolling                                                             
 interests                    (4.9)        (2.5)         (8.0)         (8.3)
                      ------------  -----------  ------------  ------------ 
Net income (loss)                                                           
 attributable to                                                            
 TransUnion Corp.     $       43.0  $     (54.9) $       40.8  $       36.6 
                      ============  ===========  ============  ============ 
                                                                            
                                                                            
                     TRANSUNION CORP. AND SUBSIDIARIES                      
                   Consolidated Statements of Cash Flows                    
                               (in millions)                                
                                                                            
                        Successor                 Predecessor               
                      ------------  --------------------------------------- 
                      Eight Months  Four Months     Twelve        Twelve    
                          Ended        Ended     Months Ended  Months Ended 
                      December 31,   April 30,   December 31,  December 31, 
                          2012          2012         2011   
       2010     
                      ------------  -----------  ------------  ------------ 
Cash flows from                                                             
 operating                                                                  
 activities:                                                                
  Net income (loss)   $       47.9  $     (52.4) $       48.8  $       44.9 
  Less: income (loss)                                                       
   from discontinued                                                        
   operations, net of                                                       
   tax                           -            -          (0.5)          8.2 
                      ------------  -----------  ------------  ------------ 
  Income (loss) from                                                        
   continuing                                                               
   operations                 47.9        (52.4)         49.3          36.7 
  Adjustments to                                                            
   reconcile income                                                         
   (loss) from                                                              
   continuing                                                               
   operations to net                                                        
   cash provided by                                                         
   operating                                                                
   activities:                                                              
    Depreciation and                                                        
     amortization            115.0         29.2          85.3          81.6 
    Loss on early                                                           
     extinguishment                                                         
     of debt                     -            -          59.3          11.0 
    Stock-based                                                             
     compensation              2.3          2.0           4.6          28.7 
    Deferred                                                                
     financing fees              -          3.9           4.2          17.1 
    Provision                                                               
     (reduction) for                                                        
     losses on trade                                                        
     accounts                                                               
     receivable               (1.9)         3.1           1.9           1.5 
    Change in control                                                       
     transaction fees          0.4         20.9             -          27.7 
    Deferred taxes            11.8        (18.3)         (3.5)         12.7 
    Amortization of                                                         
     11.375% notes                                                          
     purchase                                                               
     accounting fair                                                        
     value adjustment        (10.8)           -             -             - 
    Equity in net                                                           
     income of                                                              
     affiliates, net                                                        
     of dividends              1.3         (3.7)         (3.4)         (3.5)
    Loss (gain) on                                                          
     sale or exchange                                                       
     of property                 -          0.1          (0.3)         (3.8)
    Other                      2.6         (0.7)          2.8          (0.5)
    Changes in assets                                                       
     and liabilities: 
                                                      
      Trade accounts                                                        
       receivable             (1.0)       (24.7)        (11.6)        (12.6)
      Other current                                                         
       and long-term                                                        
       assets                  2.8          1.5          (3.3)         (2.1)
      Trade accounts                                                        
       payable                (1.2)         1.6          14.9           9.0 
      Other current                                                         
       and long-term                                                        
       liabilities           (77.5)        89.9           4.3           1.1 
                      ------------  -----------  ------------  ------------ 
Cash provided by                                                            
 operating activities                                                       
 of continuing                                                              
 operations                   91.7         52.4         204.5         204.6 
Cash used in                                                                
 operating activities                                                       
 of discontinued                                                            
 operations                      -            -          (1.3)         (4.2)
                      ------------  -----------  ------------  ------------ 
Cash provided by                                                            
 operating activities         91.7         52.4         203.2         200.4 
                                                                            
Cash flows from                                                             
 investing                                                                  
 activities:                                                                
  Capital                                                                   
   expenditures for                                                         
   property and                                                             
   equipment                 (48.8)       (20.4)        (74.0)        (46.8)
  Investments in                                                            
   trading securities         (0.5)        (1.1)         (1.2)         (1.3)
  Proceeds from sale                                                        
   of trading                                                               
   securities                    -          1.1           9.9           1.3 
  Proceeds from sale                                                        
   and redemption of                                                        
   investments in                                                           
   available-for-sale                                                       
   securities                    -            -           0.2         114.4 
  Investments in                                                            
   held-to-maturity                                                         
   securities                    -            -          (6.3)            - 
  Proceeds from held-                                                       
   to-maturity                                                              
   securities                    -            -           6.3           4.9 
  Proceeds from sale                                                        
   of assets of                                                             
   discontinued                                                             
   operations                    -            -             -          10.6 
  Acquisitions and                                                          
   purchases of                                                             
   noncontrolling                                                           
   interests, net of                                                        
   cash acquired             (14.2)        (0.1)       (105.2)        (14.0)
  Acquisition related                                                       
   deposits                    3.7            -          (8.6)            - 
  Other                       (1.4)         0.9          (2.7)          1.3 
                      ------------  -----------  ------------  ------------ 
Cash (used in)                                                              
 provided by                                                                
 investing activities        (61.2)       (19.6)       (181.6)         70.4 
                                                                            
Cash flows from                                                             
 financing                                                                  
 activities:                                                                
  Proceeds from                                                             
   senior secured                                                           
   term loan                     -            -         950.0         950.0 
  Extinguishment of                                                         
   senior secured                                                           
   term loan                     -            -        (945.2)            - 
  Prepayment fee on                                                         
   early                                                                    
   extinguishment of                                                        
   senior secured                                                           
   term loan                     -            -          (9.5)            - 
                                                                            
                     TRANSUNION CORP. AND SUBSIDIARIES                      
             Consolidated Statements of Cash Flows - Continued              
                               (in millions)                                
                                                                            
                        Successor                 Predecessor               
                      ------------  --------------------------------------- 
                      Eight Months  Four Months     Twelve        Twelve    
                          Ended        Ended     Months Ended  Months Ended 
                      December 31,   April 30,   December 31,  December 31, 
                          2012          2012         2011          2010     
                      ------------  -----------  ------------  ------------ 
  Proceeds from                                                             
   issuance of                                                              
   11.375% notes                 -            -             -         645.0 
  Proceeds from RFC                                                         
   loan                          -            -             -          16.7 
  Proceeds from                                                             
   revolving line of                                                        
   credit                        -            -             -          15.0 
  Repayments of debt         (17.2)       (14.6)        (11.7)       (609.5)
  Treasury stock                                                            
   purchases                     -         (1.3)         (0.2)         (5.4)
  Distribution of                                                           
   merger                                                                   
   consideration                 -         (1.3)         (4.3)     (1,178.6)
  Debt financing fees            -         (6.1)        (11.3)        (85.5)
  Change in control     
                                                    
   transaction fees           (0.4)       (20.9)            -         (27.7)
  Distributions to                                                          
   noncontrolling                                                           
   interests                  (7.2)        (0.4)         (8.5)         (8.6)
  Dividends to                                                              
   TransUnion Holding        (27.9)           -             -             - 
  Stockholder                                                               
   contributions              80.8            -           0.3             - 
  Other                          -         (0.4)         (0.8)         (1.9)
                      ------------  -----------  ------------  ------------ 
Cash provided by                                                            
 (used in) financing                                                        
 activities                   28.1        (45.0)        (41.2)       (290.5)
Effect of exchange                                                          
 rate changes on cash                                                       
 and cash equivalents         (0.7)         0.8          (3.8)          1.8 
                      ------------  -----------  ------------  ------------ 
Net change in cash                                                          
 and cash equivalents         57.9        (11.4)        (23.4)        (17.9)
Cash and cash                                                               
 equivalents,                                                               
 beginning of period,                                                       
 including cash of                                                          
 discontinued                                                               
 operations of $11.6                                                        
 in 2010                      96.4        10
7.8         131.2         149.1 
                      ------------  -----------  ------------  ------------ 
Cash and cash                                                               
 equivalents, end of                                                        
 period               $      154.3  $      96.4  $      107.8  $      131.2 
                      ============  ===========  ============  ============ 

 
TRANSUNION HOLDING AND TRANSUNION CORP.
 Combined Results of
Operations 
TransUnion Holding's consolidated 2012 results include the
stand-alone results of TransUnion Holding from the date of inception
through December 31, 2012, and the consolidated results of TransUnion
Corp. and subsidiaries after April 30, 2012, the date of acquisition. 
As a result of the 2012 Change in Control Transaction, TransUnion
Corp.'s historical financial statements are presented on a Successor
and Predecessor basis. Periods prior to May 1, 2012, reflect the
financial position, results of operations, and changes in financial
position of TransUnion Corp. prior to the 2012 Change in Control
Transaction (the "Predecessor") and periods after April 30, 2012,
reflect the financial position, results of operations, and changes in
financial position of TransUnion Corp. after the 2012 Change in
Control Transaction (the "Successor").  
The
 2012 Change in Control Transaction was accounted for using the
acquisition method of accounting in accordance with Accounting
Standards Codification ("ASC") 805, Business Combinations. The
guidance prescribes that the basis of the assets acquired and
liabilities assumed be recorded at fair value to reflect the purchase
price. Periods after the 2012 Change in Control Transaction are not
comparable to prior periods primarily due to the additional
amortization of intangibles in the Successor period resulting from
the fair value adjustments of the assets acquired and liabilities
assumed and the additional interest on the notes issued in connection
with the transaction. In addition, the Predecessor incurred
significant stock-based compensation and acquisition costs related to
the 2012 Change in Control Transaction.  
We operate TransUnion Holding and TransUnion Corp. as one business
and to facilitate comparability with the prior years, we present
below the combination of TransUnion Holding consolidated results from
inception through December 31, 2012 and TransUnion Corp. Predecessor
consolidated results for the four months ended April 30, 2012
(combined results for the year 2012), and compared this to the
TransUnion Corp. consolidated results for 2011 and 2010. We present
the information in this format to assist readers in understanding and
assessing the trends and significant changes in our results of
operations on a comparable basis. We believe this presentation is
appropriate because it provides a more meaningful comparison and more
relevant analysis of our results of operations for 2012 compared to
2011 and 2010, than a presentation of separate historical results for
TransUnion Holding and TransUnion Corp. Predecessor and Successor
periods would provide. The following table sets forth our historical
results of operations for the periods indicated below: 


 
                                                                            
                                                                            
                                     Three Months Ended December 31,        
                               -------------------------------------------  
                                  2012        2011                          
                               ----------  ----------                       
                               TransUnion  TransUnion                 %     
(in millions)                    Holding      Corp.     $ Change   Change   
                               ----------  ----------  ---------  --------  
Revenue                        $    284.4  $    253.0  $    31.4      12.4% 
                                                                            
Operating expenses                                                          
  Cost of services (exclusive       
                                        
   of depreciation and                                                      
   amortization below)              112.1       103.0        9.1       8.8% 
  Selling, general and                                                      
   administrative                    86.0        65.0       21.0      32.3% 
  Depreciation and                                                          
   amortization                      42.9        20.7       22.2     107.2% 
                               ----------  ----------  ---------            
Total operating expenses            241.0       188.7       52.3      27.7% 
                                                                            
Operating income (loss)              43.4        64.3      (20.9)    (32.5)%
                                                                            
Non-operating income and                                                    
 expense                                                                    
  Interest expense                  (47.7)      (31.5)     (16.2)    (51.4)%
  Interest income                     0.2         0.2          -         -  
  Other income and (expense),                                               
   net                                1.0        (2.2)       3.2     145.5% 
                               ----------  ----------  ---------            
Total non-operating income and                                              
 expense                            (46.5)      (33.5)     (13.0)    (38.8)%
                                                                            
Income (loss) from continuing                                               
 operations before income                                                   
 taxes                               (3.1)       30.8      (33.9)   (110.1)%
(Provision) benefit for income                                              
 taxes                               (3.6)      (12.8)       9.2      71.9% 
                               ----------  ----------  ---------            
Income (loss) from continuing                                               
 operations                          (6.7)       18.0      (24.7)   (137.2)%
Discontinued operations, net                                                
 of tax                                 -           -          -         -  
                               ----------  ----------  ---------            
Net income (loss)                    (6.7)       18.0      (24.7)   (137.2)%
Less: net income attributable                                               
 to noncontrolling interests         (1.5)       (1.7)       0.2      11.8% 
                               ----------  ----------  ---------            
Net income (loss) attributable                                              
 to the Company                $     (8.2) $     16.3  $   (24.5)   (150.3)%
                               ==========  ==========  =========            

 
nm: not meaningful 


 
                                                                            
                                                                            
                                       Twelve Months Ended December 31,     
                                  ------------------------------------------
                                                    2012                    
                                  ----------------------------------------  
                                   TransUnion    TransUnion                 
                                  Holding Date      Corp.       Combined    
                                  of Inception   Predecessor     Twelve     
                                     Through     Four Months  Months Ended  
                                  December 31,   Ended April  December 31,  
(in millions)                         2012        30, 2012        2012      
                                  ------------  ------------  ------------  
Revenue                           $      767.0  $      373.0  $    1,140.0  
                                                                            
Operating expenses                                                          
  Cost of services (exclusive of                                            
   depreciation and amortization                                            
   below)                                298.2         172.0         470.2  
  Selling, general and                                                      
   administrative                        212.6         172.0         384.6  
  Depreciation and amortization          115.0          29.2         144.2  
                                  ------------  ------------  ------------  
Total operating expenses                 625.8         373.2         999.0  
                                                                            
Operating income (loss)                  141.2          (0.2)        141.0  
                                                                            
Non-operating income and expense                                        
    
  Interest expense                      (125.0)        (40.5)       (165.5) 
  Interest income                          0.8           0.6           1.4  
  Other income and (expense), net        (14.3)        (23.8)        (38.1) 
                                  ------------  ------------  ------------  
Total non-operating income and                                              
 expense                                (138.5)        (63.7)       (202.2) 
                                                                            
Income (loss) from continuing                                               
 operations before income taxes            2.7         (63.9)        (61.2) 
(Provision) benefit for income                                              
 taxes                                    (6.6)         11.5           4.9  
                                  ------------  ------------  ------------  
Income (loss) from continuing                                               
 operations                               (3.9)        (52.4)        (56.3) 
Discontinued operations, net of                                             
 tax                                         -             -             -  
                                  ------------  ------------  ------------  
Net income (loss)                         (3.9)        (52.4)        (56.3) 
Less: net income attributable to                                            
 noncontrolling interests                 (4.9)         (2.5)         (7.4) 
                                  ------------  ------------  ------------  
Net income (loss) attributable to                                           
 the Company                      $       (8.8) $      (54.9) $      (63.7) 
                                  ============  ============  ============  
 
                                                                    
                                                                    
                                  Twelve Months Ended December 31,  
                                 ---------------------------------  
                                     2011                           
                                 ------------                       
                                  TransUnion                        
                                     Corp.                          
                                  Predecessor                       
                                    Twelve                          
                                 Months Ended                       
                                 December 31,      $          %     
(in millions)                        2011        Change    Change   
                                 ------------  ---------  --------  
Revenue                               1,024.0  $   116.0      11.3% 
                                                                    
Operating expenses                                                  
  Cost of services (exclusive of                                    
   depreciation and amortization                                    
   below)                               421.5       48.7      11.6% 
  Selling, general and                                              
   administrative                       264.5      120.1      45.4% 
  Depreciation and amortization          85.3       58.9      69.1% 
                                 ------------  ---------            
Total operating expenses                771.3      227.7      29.5% 
                                                                    
Operating income (loss)                 252.7     (111.7)    (44.2)%
                                                                    
Non-operating income and expense                                    
  Interest expense                     (126.4)     (39.1)    (30.9)%
  Interest income                         0.7        0.7     100.0% 
  Other income and (expense), net       (59.9)      21.8      36.4% 
                                 ------------  ---------            
Total non-operating income and                                      
 expense                               (185.6)     (16.6)     (8.9)%
                                                                    
Income (loss) from continuing                                       
 operations before income taxes          67.1     (128.3)       nm  
(Provision) benefit for income                                      
 taxes                                  (17.8)      22.7        nm  
                                 ------------  ---------            
Income (loss) from continuing                                       
 operations                              49.3     (105.6)       nm  
Discontinued operations, net of                                     
 tax                                     (0.5)       0.5        nm  
                                 ------------  ---------            
Net income (loss)                        48.8     (105.1)       nm  
Less: net income attributable to                                    
 noncontrolling interests                (8.0)       0.6       7.5% 
                                 ------------  ---------            
Net income (loss) attributable to                                   
 the Company                     $       40.8  $  (104.5)       nm  
                                 ============  =========            
                                                                            
                                                                            
              TRANSUNION HOLDING AND TRANSUNION CORP. COMBINED              
                             Segment Information                            
                                  Unaudited                                 
                                                                            
                                       Three Months Ended December 31,      
                                    -------------------------------------   
                                                                     %      
(dollars in millions)                 2012      2011    $ Change   Change   
                                    --------  --------  --------  -------   
Revenue                                                                     
U.S. Information Services:                                                  
  Online Data Services              $  120.3  $  110.0  $   10.3      9.4%  
  Credit Marketing Services             32.8      31.7       1.1      3.5%  
  Decision Services                     25.1      21.8       3.3     15.1%  
                                    --------  --------  --------            
Total U.S. Information Services        178.2     163.5      14.7      9.0%  
                                                                            
International:                                                              
  Developed markets                     23.0      21.8       1.2      5.5%  
  Emerging markets                      37.4      30.5       6.9     22.6%  
                                    --------  --------  --------            
Total International                     60.4      52.3       8.1     15.5%  
                                                                            
Interactive                             45.8      37.2       8.6     23.1%  
                                                                            
                                    --------  --------  --------        
    
Total revenue                       $  284.4  $  253.0  $   31.4     12.4%  
                                    ========  ========  ========            
                                                                            
                                                                            
Operating Income(1)                                                         
U.S. Information Services           $   41.2  $   47.0  $   (5.8)   (12.3)% 
International                            5.9      16.6     (10.7)   (64.5)% 
Interactive                             17.2      16.8       0.4      2.4%  
Corporate                              (20.9)    (16.1)     (4.8)   (29.8)% 
                                    --------  --------  --------            
Total operating income              $   43.4  $   64.3  $  (20.9)   (32.5)% 
                                    ========  ========  ========            
                                                                            
Operating Margin                                                            
U.S. Information Services               23.1%     28.7%              (5.6)% 
International                            9.8%     31.7%             (21.9)% 
Interactive                             37.6%     45.2%              (7.6)% 
Total operating margin                  15.3%     25.4%             (10.1)% 
                                                                            
Adjusted Operating Income(2)                                                
U.S. Information Services           $   41.2  $   47.0  $   (5.8)   (12.3)% 
International                            5.9      16.6     (10.7)   (64.5)% 
Interactive                             17.2      16.8       0.4      2.4%  
Corporate                              (20.9)    (16.1)     (4.8)   (29.8)% 
                                    --------  --------  --------            
Total Adjusted Operating Income     $   43.4  $   64.3  $  (20.9)   (32.5)% 
                                    ========  ========  ========            
                                                                            
Adjusted Operating Margin                                                   
U.S. Information Services               23.1%     28.7%              (5.6)% 
International                            9.8%     31.7%             (21.9)% 
Interactive                             37.6%     45.2%              (7.6)% 
Total adjusted operating margin         15.3%     25.4%             (10.1)% 
                                                                            
 
                                                                          
                                                                          
                                      Twelve Months Ended December 31,    
                                   -------------------------------------  
                                                                    %     
(dollars in millions)                2012      2011    $ Change   Change  
                                   --------  --------  --------  -------  
Revenue                                                                   
U.S. Information Services:                                                
  Online Data Services             $  495.6  $  451.2  $   44.4      9.8% 
  Credit Marketing Services           132.3     127.1       5.2      4.1% 
  Decision Services                    97.6      81.8      15.8     19.3% 
                                   --------  --------  --------           
Total U.S. Information Services       725.5     660.1      65.4      9.9% 
                                                                          
International:                                                            
  Developed markets                    91.4      88.9       2.5      2.8% 
  Emerging markets                    143.0     127.2      15.8     12.4% 
                                   --------  --------  --------           
Total International                   234.4     216.1      18.3      8.5% 
                                                                          
Interactive                           180.1     147.8      32.3     21.9% 
                                                                          
                                   --------  --------  --------           
Total revenue                      $1,140.0  $1,024.0  $  116.0     11.3% 
                                   ========  ========  ========           
                                                                          
                                                                          
Operating Income(1)                                                       
U.S. Information Services          $  155.1  $  185.8  $  (30.7)   (16.5)%
International                          24.4      66.7     (42.3)   (63.4)%
Interactive                            61.7      56.5       5.2      9.2% 
Corporate                            (100.2)    (56.3)    (43.9)   (78.0)%
                                   --------  --------  --------           
Total operating income             $  141.0  $  252.7  $ (111.7)   (44.2)%
                                   ========  ========  ========           
                                                                          
Operating Margin                                                          
U.S. Information Services              21.4%     28.1%                nm  
International                          10.4%     30.9%                nm  
Interactive                            34.3%     38.2%                nm  
Total operating margin                 12.4%     24.7%                nm  
                                                                          
Adjusted Operating Income(2)                                              
U.S. Information Services          $  196.1  $  192.1  $    4.0      2.1% 
International                          38.8      66.7     (27.9)   (41.8)%
Interactive                            64.0      56.5       7.5     13.3% 
Corporate                             (67.2)    (56.3)    (10.9)   (19.4)%
                                   --------  --------  --------           
Total Adjusted Operating Income    $  231.7  $  259.0  $  (27.3)   (10.5)%
                                   ========  ========  ========           
                                                                          
Adjusted Operating Margin                                                 
U.S. Information Services              27.0%     29.1%              (2.1)%
International                          16.6%     30.9%             (14.3)%
Interactive                            35.5%     38.2%              (2.7)%
Total adjusted operating margin        20.3%     25.3%              (5.0)%

 
nm: not meaningful  


 
(1) For 2012, operating income included $90.7 million of accelerated stock- 
    based compensation and related expense recorded primarily byTransUnion  
    Corp.. Predecessor as a result of the 2012 Change in Control Transaction
    that were recorded in each segment and in Corporate as follows: USIS    
    $41.0 million; International $14.4 million; Interactive $2.3 million;   
    and Corporate $33.0 million. For 2012, operating income also included   
    additional depreciation and amortization as a result of the purchase    
    accounting fair value adjustments to the tangible and intangible assets 
    recorded in connection with the 2012 Change in Control Transaction. The 
    $58.9 million increase in depreciation and amortization, which is       
    primarily related to the purchase accounting fair value adjustment, was 
    recorded in each segment and in Corporate as follows: USIS $34.3        
    million; International $21.8 million; Interactive $2.2 million; and     
    Corporate $0.6 million. For 2011, operating income included a $3.6      
    million fee for the early termination of an outsourcing vendor contract 
    and a $2.7 million software impairment and related restructuring charge 
    due to a regulatory change requiring a software platform replacement.   
    Both of these expenses were recorded in our USIS segment.               
                                                                            
(2) See footnote 2 to the "Key Performance Measure" table for a discussion  
    about Adjusted Operating Income, why we use it, its limitations, and the
    reconciliation to its most directly comparable GAAP measure, operating  
    income.                                                                 
                                                                            
                                                                            
                                                                            
              TRANSUNION HOLDING AND TRANSUNION CORP. COMBINED              
 Key Fi
nancial Performance Measures and Reconciliation of Non GAAP Measures 
                                  Unaudited                                 
                                                                            
                                      Three Months Ended December,          
                               ------------------------------------------   
                                  2012        2011                          
                               TransUnion  TransUnion     $          %      
(dollars in millions)            Holding      Corp.     Change    Change    
                               ----------  ---------- ---------  --------   
Revenue                        $    284.4  $    253.0 $    31.4      12.4%  
                                                                            
Reconciliation of operating                                                 
 income to Adjusted Operating                                               
 Income:                                                                    
Operating income               $     43.4  $     64.3 $   (20.9)    (32.5)% 
Adjustments(1)                          -           -         -         -   
                               ----------  ---------- ---------             
Adjusted operating income(2)   $     43.4  $     64.3 $   (20.9)    (32.5)% 
                                                                            
Reconciliation of net income                                                
 (loss) attributable to the                                                 
 Company to Adjusted EBITDA:                                                
Net income (loss) attributable                                              
 to the Company                $     (8.2) $     16.3 $   (24.5)   (150.3)% 
Discontinued operations                 -           -         -         -   
                               ----------  ---------- ---------             
Net income (loss) from                                                      
 continuing operations                                                      
 attributable to the Company   $     (8.2) $     16.3 $   (24.5)   (150.3)% 
Net interest expense                 47.5        31.3      16.2      51.8%  
Income tax (benefit) provision        3.6        12.8      (9.2)    (71.9)% 
Depreciation and                                                            
 amortization(3)                     42.9        20.7      22.2     107.2%  
Stock-based compensation              1.5         1.1       0.4      36.4%  
Other (income) and expense(4)         1.8         4.4      (2.6)    (59.1)% 
Adjustments(1)                          -           -         -         -   
                               ----------  ---------- ---------             
Adjusted EBITDA(2)             $     89.1  $     86.6 $     2.5       2.9%  
                                                                            
Other metrics:                                                              
Cash provided by operating                                                  
 activities of continuing                                                   
 operations of TransUnion                                                   
 Corp.                         $     14.6  $     66.9 $   (52.3)     78.2%  
Capital expenditures(5)        $     22.6  $     17.6 $     5.0      28.4%  
 
                                   Twelve Months Ended September 30,      
                              ------------------------------------------  
                                             2011                         
                                 2012     TransUnion     $          %     
(dollars in millions)          Combined      Corp.     Change    Change   
                              ----------  ---------- ---------  --------  
Revenue                       $  1,140.0  $  1,024.0 $   116.0      11.3% 
                                                                          
Reconciliation of operating                                               
 income to Adjusted Operating                                             
 Income:                                                                  
Operating income              $    141.0  $    252.7 $  (111.7)    (44.2)%
Adjustments(1)                      90.7         6.3      84.4        nm  
                              ----------  ---------- ---------            
Adjusted operating income(2)  $    231.7  $    259.0 $   (27.3)    (10.5)%
                                                                          
Reconciliation of net income                                              
 (loss) attributable to the                                               
 Company to Adjusted EBITDA:                                              
Net income (loss) attributable                                            
 to the Company               $    (63.7) $     40.8 $  (104.5)       nm  
Discontinued operations                -         0.5      (0.5)   (100.0)%
                              ----------  ---------- ---------            
Net income (loss) from                                                    
 continuing operations                                                    
 attributable to the Company  $    (63.7) $     41.3 $  (105.0)       nm  
Net interest expense               164.1       125.7      38.4      30.5% 
Income tax (benefit) provision      (4.9)       17.8     (22.7)       nm  
Depreciation and                                                          
 amortization(3)                   144.2        85.3      58.9      69.1% 
Stock-based compensation             4.3         4.6      (0.3)     (6.5)%
Other (income) and expense(4)       50.8        71.8     (21.0)    (29.2)%
Adjustments(1)                      90.7         6.3      84.4        nm  
                              ----------  ---------- ---------            
Adjusted EBITDA(2)            $    385.5  $    352.8 $    32.7       9.3% 
                                                                          
Other metrics:                                                            
Cash provided by operating                                                
 activities of continuing                                                 
 operations of TransUnion                                                 
 Corp.                        $    144.1  $    204.5 $   (60.4)    (29.5)%
Capital expenditures(5)       $     69.2  $     74.0 $    (4.8)     (6.5)%

 
nm: not meaningful 


 
                                                                            
(1) For the twelve months ended December 31, 2012, adjustments included     
    $90.7 million of accelerated stock-based compensation and related       
    expense resulting from the 2012 Change in Control Transaction that were 
    recorded in each segment and Corporate as follows: USIS $41.0 million;  
    International $14.4 million; Interactive $2.3 million; and Corporate    
    $33.0 million. For the twelve months ended December 31, 2011,           
    adjustments included a $3.6 million outsourcing vendor contract early   
    termination fee and a $2.7 million software impairment and related      
    restructuring charge due to a regulatory change requiring a software    
    platform replacement. Both of these expenses were recorded in our USIS  
    segment.                                                                
                                                                            
(2) Adjusted Operating Income and Adjusted EBITDA are non-GAAP measures. We 
    present Adjusted Operating Income and Adjusted EBITDA as supplemental   
    measures of our operating performance because they eliminate the impact 
    of certain items that we do not consider indicative of our ongoing      
    operating performance. In addition to its use as a measure of our       
    operating performance, our board of directors and exe
cutive management  
    team focus on Adjusted EBITDA as a compensation measure. The annual     
    variable compensation for members of senior management is based in part 
    on Adjusted EBITDA. Adjusted Operating Income does not reflect certain  
    stock-based compensation and certain other income and expense. Adjusted 
    EBITDA does not reflect interest, income tax, depreciation,             
    amortization, stock-based compensation or certain other income and      
    expense. Other companies in our industry may calculate Adjusted         
    Operating Income and Adjusted EBITDA differently than we do, limiting   
    their usefulness as comparative measures. Because of these limitations, 
    Adjusted Operating Income and Adjusted EBITDA should not be considered  
    in isolation or as substitutes for performance measures calculated in   
    accordance with GAAP. Adjusted Operating Income and Adjusted EBITDA are 
    not measures of financial condition or profitability under GAAP and     
    should not be considered alternatives to cash flow from operating       
    activities, as measures of liquidity or as alternatives to operating    
    income or net income as indicators of operating performance. We believe 
    that the most directly comparable GAAP measure to Adjusted Operating    
    Income is operating income and the most directly comparable GAAP measure
    to Adjusted EBITDA is net income attributable to the Company. The       
    reconciliations of Adjusted Operating Income and Adjusted EBITDA to     
    their nearest GAAP measures are included in the table above.            
                                                                            
(3) For the twelve months ended December 31, 2012, operating income included
    additional depreciation and amortization as a result of the purchase    
    accounting fair value adjustments to the tangible and intangible assets 
    recorded in connection with the 2012 Change in Control Transaction.     
                                                                            
(4) Other income and expense above includes all amounts included on our     
    consolidated statement of income in other income and expense, net,      
    except for earnings from equity method investments and dividends        
    received from cost method investments. For the twelve months ended      
    December 31, 2012, other income and expense included  $42.2 million of  
    acquisition-related expenses, primarily related to the 2012 Change in   
    Control Transaction and the abandoned initial public offering process,  
    and $8.6 million of other income and expense. Of the $42.2 million of   
    acquisition-related expenses, $15.2 million was incurred by TransUnion  
    Holding and $27.0 million was incurred by TransUnion Corp. For the      
    twelve months ended December 31, 2011, other income and expense included
    a $59.3 million loss on the early extinguishment of debt consisting of a
    write-off of $49.8 million of previously unamortized deferred financing 
    fees and a prepayment premium of $9.5 million as a result of refinancing
    our senior secured credit facility in February 2011, and $12.5 million  
    of other income and expense.                                            
                                                                            
(5) Capital expenditures for the 2012 combined period consisted of $20.4    
    million for TransUnion Corp. Predecessor for the four months ended April
    30, 2012, and $48.8 million for TransUnion Corp. Successor for the eight
    months ended December 31, 2012.                                         

  
Contact
Evan Goad
TransUnion
E-mail investor.relations@transunion.com
Telephone 312 985 2860 
 
 
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