Fourth quarters of 2011 and 2010 included in the results are a pre-tax gain of $4.8m and a pre-tax charge of $1.8m, respectively, due to changes in the fair value of contingent consideration related to the acquisition of Cequint.
TNS CEO Henry Graham said fourth quarter revenue and adjusted earnings were solid, with revenue within the bank’s expectations and adjusted earnings at the upper end of our outlook range excluding the gain on foreign exchange revaluation.
‘"Our three divisions performed as expected overall, with Telecommunication Services Division year-over-year growth driven by identity and verification, roaming and clearing and Cequint. International revenue growth in our Payments and Financial Services Divisions continued to partially offset North American revenue decreases", said Graham.
"Our four key growth areas together, which include our TNSPay services suite, verification, roaming and clearing services, and our mobile applications, accounted for 11% of 2011 revenue. We believe these initiatives will continue to grow at an accelerated rate and become 13% – 14% of our total revenue in 2012."
Earnings before interest, taxes, depreciation, and amortization (EBITDA) before stock compensation expense for the fourth quarter of 2011 increased 7.3% to $38.6m, or 27.5% of revenue, from $36.0m, or 26.7% of revenue, during the same period last year.
Adjusted earnings of the firm rose 12.7% to $16.9m, or $0.68 per share, for the fourth quarter of 2011 compared to adjusted earnings of $15.0m, or $0.59 per share, for the fourth quarter of 2010.
