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TNS, Inc. – TNS – Announces Third Quarter 2012 Financial Results

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TNS, Inc. (NYSE: TNS), a leading provider of business-critical, cost-effective data communications services for transaction-oriented applications, reported its third quarter 2012 results.

  • Q3 Revenues of $137.2 Million; GAAP Net Income of $0.12 per Share
  • Q3 Adjusted Earnings of $0.61 per Share
  • 2012 Outlook Narrowed to Upper End of Previous Range

Henry H. Graham, Jr., CEO, commented, “Third quarter 2012 results were in line with our reduced outlook, with revenues down 2% and adjusted earnings per share growing 4% in constant currency from the third quarter last year. We continued to manage the challenges in our core businesses, including consolidation in the Telecommunication and Financial Services Divisions and softer global demand for dial-up transaction volumes in Payments, through careful cost containment and maximizing cash returns. We continued to reinvest this cash into our growth initiatives, which performed well in the period, as we evolve our business model toward mobile applications, gateway services and roaming and clearing. Overall, we are on track to meet our revised expectations for the year and have narrowed our outlook to the upper end of the previous range. For 2013, we will continue to transform our business toward growth and preliminarily expect to achieve earnings growth in constant dollars through stable revenue generation and the expansion of operating leverage as we transition our product mix to higher margin services, continue to manage costs, and reduce interest expense.”

TNS – Third Quarter 2012 Results

Total revenue for the third quarter of 2012 decreased 3.9% to $137.2 million from third quarter 2011 revenue of $142.7 million. On a constant dollar basis, revenues for the third quarter of 2012 decreased 2.3% to $139.5 million.

Third quarter 2012 GAAP net income was $3.0 million, or $0.12 per share, compared to GAAP net income of $1.6 million, or $0.06 per share, for the third quarter 2011. Included in GAAP net income for the third quarter of 2012 was a pre-tax charge of $2.8 million, or $0.09 per share, for severance.

Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) for the third quarter of 2012 decreased 5.2% to $34.5 million, or 25.1% of revenue, from $36.4 million, or 25.5% of revenue, for the third quarter of 2011. On a constant dollar basis, adjusted EBITDA for the third quarter of 2012 was $35.5 million, or 25.5% of revenue.

About Transaction Network Services – TNS

Transaction Network Services (TNS) is a leading global provider of data communications and interoperability solutions.

TNS offers a broad range of networks and innovative value-added services which enable transactions and the exchange of information in diverse industries such as retail, banking, payment processing, telecommunications and the financial markets.

Founded in 1990 in the United States, TNS has grown steadily and now provides services in over 40 countries across the Americas, Europe and the Asia Pacific region, with our reach extending to many more. TNS has designed and implemented multiple data networks which support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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