DNB
$123.62
Dun & Bradstreet
$.35
.28%
Earnings Details
3rd Quarter September 2016
Tuesday, November 01, 2016 4:15:30 PM
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Summary

Dun & Bradstreet Reaffirms

Dun & Bradstreet (DNB) reported 3rd Quarter September 2016 earnings of $1.79 per share on revenue of $412.8 million. The consensus earnings estimate was $1.75 per share on revenue of $423.8 million. Revenue grew 1.6% on a year-over-year basis.

The company said it continues to expect 2016 earnings of $7.11 to $7.47 per share on revenue of $1.73 billion to $1.76 billion. The current consensus earnings estimate is $7.40 per share on revenue of $1.72 billion for the year ending December 31, 2016.

Dun & Bradstreet Corp is a source of commercial information and insight on businesses.

Results
Reported Earnings
$1.79
Earnings Whisper
-
Consensus Estimate
$1.75
Reported Revenue
$412.8 Mil
Revenue Estimate
$423.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Dun & Bradstreet Reports Third Quarter 2016 Results and Reaffirms Guidance

Dun & Bradstreet (DNB) reported results for the third quarter ended September 30, 2016 of GAAP revenue up 2% year over year, after the effect of foreign exchange (up 3% before the effect of foreign exchange). As Adjusted and organic revenue both flat year over year, after the effect of foreign exchange (up 1% before the effect of foreign exchange).

"We are continuing to execute against our strategy and are leveraging our multi-channel go-to-market approach to drive adoption of our more modern, as-a-service offerings" said Bob Carrigan, CEO of Dun & Bradstreet. "We remain focused on providing our leading commercial data and analytics to our customers when and where they need them, while driving long-term, sustainable growth for the Company."

Quarter Ended
AFX
BFX
September 30,
% Change
% Change
(Amounts in millions, except per share data)
2016
2015
Fav (Unfav)
Fav (Unfav)
GAAP Revenue
$
412.8
$
406.2
2%
3%
As Adjusted Revenue
$
412.8
$
414.2
0%
1%
Organic Revenue
$
412.8
$
414.2
0%
1%
GAAP Operating Income(1)
$
96.8
$
85.0
14%
As Adjusted Operating Income
$
107.3
$
106.0
1%
GAAP Diluted Earnings (Loss) Per Share(2)
$
(0.80 )
$
1.62
N/M
As Adjusted Diluted Earnings (Loss) Per Share
$
1.79
$
1.84
(3)%
Year-To-Date
Sept 30,
Sept 30,
2016
2015
Net Cash Provided By Operating Activities - Continuing Operations
$
280.0
$
283.5
(GAAP)
Free Cash Flow
$
232.1
$
240.1
(1) Quarter ended September 30, 2015 includes the
writedown of $8 million in deferred revenue from acquisitions
completed in 2015.
(2) Quarter ended September 30, 2016 includes a $2.43
non-cash loss associated with the sale of operations in Benelux and
Latin America.

GAAP net income for the third quarter ended September 30, 2016 included a non-cash loss of $89.6 million associated with the conversion of our Latin America and Benelux operations into Worldwide Network partnerships. The non-cash loss was driven almost entirely by accumulated currency translation.

See attached Schedules 5 and 6 for a reconciliation of As Adjusted metrics to GAAP results, as well as the definitions of the non-GAAP financial measures that the Company uses to evaluate the business.

Deferred revenue for the Company as of September 30, 2016 was $580.5 million, flat year over year; Americas was $520.2 million, up 6% year over year and Non-Americas was $60.3 million, down 33% year over year. After adjusting for the effect of foreign exchange, dispositions of our Benelux and Latin America operations and the impacts of the write-down of deferred revenue due to purchase accounting, total Company deferred revenue was up 3%, Americas was up 4% and Non-Americas was down 4%, each as compared to last year.

Third Quarter 2016 Segment Results

Americas

GAAP revenue of $338.8 million, up 3% year over year both after and before the effect of foreign exchange; As Adjusted and organic revenue of $338.8 million, up 1% year over year both after and before the effect of foreign exchange;

GAAP operating income of $100.6 million, up 16% year over year; As Adjusted operating income of $107.2 million, up 6% year over year. GAAP operating income growth reflects the impact of $8 million in acquisition-related deferred revenue adjustments incurred in the third quarter of 2015.

Non-Americas

GAAP revenue, As Adjusted revenue, and organic revenue of $74.0 million, down 5% year over year after the effect of foreign exchange (up 2% before the effect of foreign exchange);

GAAP operating income of $20.0 million, down 12% year over year. As Adjusted operating income of $20.1 million, down 11% year over year.

See attached Schedules 3, 4, 5, and 6 for additional detail.

Full Year 2016 Guidance

Dun & Bradstreet today reaffirmed its financial guidance for the full year 2016:

As Adjusted organic revenue growth of 11/2% to 31/2%, before the effect of foreign exchange;

As Adjusted revenue growth of 4% to 6%, before the effect of foreign exchange;

-- As Adjusted operating income growth of 1% to 5%;

-- As Adjusted diluted EPS of (2%) to 3% versus prior year; and

Free cash flow of $255 million to $285 million, which excludes the impact of legacy tax matters and any potential regulatory fines associated with our China operations.

Dun & Bradstreet does not provide guidance on a GAAP basis because Dun & Bradstreet is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of: (i) non-core gains and charges, (ii) acquisition and divestiture-related fees; and (iii) purchase accounting fair value adjustments to deferred revenue. These items are uncertain and will depend on several factors, including industry conditions, and could be material to Dun & Bradstreet’s results computed in accordance with GAAP.

Use of Non-GAAP Financial Measures

In addition to reporting generally accepted accounting principles in the United States of America ("GAAP") results, the Company evaluates performance and reports on a total company basis and on a business segment level basis its results (such as revenue, operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) on an "As Adjusted" basis. The term "As Adjusted" refers to the following: the elimination of the effect on revenue due to purchase accounting fair value adjustments to deferred revenue; restructuring charges; other non-core gains and charges that are not in the normal course of our business (such as gains and losses on sales of businesses, impairment charges and material tax and legal settlements); acquisition and divestiture-related fees (such as costs for bankers, legal fees, diligence costs and retention payments); and acquisition-related intangible amortization expense. A recurring component of our "As Adjusted" basis is our restructuring charges, which we believe do not reflect our underlying business performance. Such charges are variable from period to period based upon actions identified and taken during each period. Additionally, our "As Adjusted" results exclude the results of Discontinued Operations.

We also isolate the effects of changes in foreign exchange rates on our revenue growth because we believe it is useful for investors to be able to compare revenue from one period to another, both after and before the effects of foreign exchange. The change in our operating performance attributable to foreign currency rates is determined by converting both our prior and current periods by a constant rate. As a result, we monitor our "As Adjusted" revenue growth both after and before the effects of foreign exchange.

We also analyze "As Adjusted" revenue growth on an organic basis because management believes this information provides important insight into the underlying/ongoing performance of the business. Organic revenue excludes: (1) revenue from acquired businesses for one year from the date of the acquisition and (2) net divested revenue which we define as the historical revenues from the divested businesses net of the annual ongoing future revenue streams resulting from the commercial arrangements entered into in connection with such divestitures.

We may from time to time use the term "sales", which we define as the value of committed customer contracts. This term is often referred to as "bookings" or "commitments" by other companies.

We also monitor free cash flow as a measure of our business. We define free cash flow as net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles. Free cash flow measures our available cash flow for potential debt repayment, acquisitions, stock repurchases, dividend payments and additions to cash, cash equivalents and short-term investments. We believe free cash flow to be relevant and useful to our investors as this measure is used by our management in evaluating the funding available after supporting our ongoing business operations and our portfolio of investments.

We also monitor deferred revenue after adjusting for the effect of foreign exchange, dispositions, acquisitions and the impacts of the write-down of deferred revenue due to purchase accounting.

We believe that the use of our non-GAAP financial measures provides useful supplemental information to our investors. Non-GAAP results are presented only as a supplement to the financial statements presented in accordance with GAAP. The non-GAAP financial information is provided to enhance the reader’s understanding of our underlying financial performance. These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of revenue, operating income, operating margin, net income, diluted EPS or net cash provided by operating activities as determined in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented and defined in Schedules 5 and 6 attached to this press release.

Third Quarter 2016 Teleconference

As previously announced, Dun & Bradstreet will review its third quarter 2016 results in a conference call with the investment community on Wednesday, November 2, 2016, at 8 a.m. ET. Live audio, as well as a replay of the conference call will be accessible on Dun & Bradstreet’s Investor Relations Web site at http://investor.dnb.com.

About Dun & Bradstreet(R)

Dun & Bradstreet (DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect our customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics. For more about Dun & Bradstreet, visit DNB.com Twitter: @DnBUS.

Forward-Looking and Cautionary Statements

We may from time-to-time make written or oral "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements contained in filings with the Securities and Exchange Commission, in reports to shareholders and in press releases and investor Web casts. These forward-looking statements include, without limitation, any statements related to financial guidance or strategic goals. These forward-looking statements can also be identified by the use of words like "anticipates," "aspirations," "believes," "commits," "continues," "estimates," "expects," "goals," "guidance," "intends," "plans," "projects," "strategy," "targets," "will" and other words of similar meaning. They can also be identified by the fact that they do not relate strictly to historical or current facts.

We cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements and whether to invest in, or remain invested in, our securities.

In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are identifying the following important factors that, individually or in the aggregate, could cause actual results to differ materially from those contained in any forward-looking statements made by us; any such statement is qualified by reference to the following cautionary factors: (i) reliance on third parties to support critical components of our business model; (ii) our ability to protect our information technology infrastructure against cyber-attack and unauthorized access; (iii) risks associated with potential violations of the Foreign Corrupt Practices Act and similar laws; (iv) customer demand for our products; (v) the successful implementation of our business strategy; (vi) the integrity and security of our global database and data centers; (vii) our ability to maintain the integrity of our brand and reputation; (viii) our ability to renew large contracts and the related revenue recognition and timing thereof; (ix) the impact of macro-economic challenges on our customers and vendors; (x) future laws or regulations with respect to the collection, compilation, storage, use, cross-border transfer and/or publication of information and adverse publicity or litigation concerning the commercial use of such information; (xi) our ability to acquire and successfully integrate other businesses, products and technologies; (xii) adherence by third-party members of our Dun & Bradstreet Worldwide Network, or other third parties who license and sell under the Dun & Bradstreet name, to our quality standards and to the renewal of their agreements with Dun & Bradstreet; (xiii) the effects of foreign and evolving economies, exchange rate fluctuations, legislative or regulatory requirements and the implementation or modification of fees or taxes to collect, compile, store, use, transfer cross-border and/or publish data; and (xiv) the other factors described under the headings "Risk Factors," "Management’s Discussion and Analysis," "Legal Proceedings" and elsewhere in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and the Company’s other reports or documents filed or furnished with the Securities and Exchange Commission.

It should be understood that it is not possible to predict or identify all risk factors. Consequently, the above list of important factors and the Risk Factors discussed in Item 1A. of our Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q should not be considered to be a complete discussion of all of our potential trends, risks and uncertainties. Except as otherwise required by federal securities laws, we do not undertake any obligation to update any forward-looking statement we may make from time-to-time.

The Dun & Bradstreet Corporation
Schedule 1
Consolidated Statement of Operations (unaudited) - GAAP
Results
Effects of
Effects of
Quarter Ended
AFX
Foreign
BFX
Year-To-Date
AFX
Foreign
BFX
September 30,
% Change
Exchange
% Change
September 30,
% Change
Exchange
% Change
Dollar amounts in millions, except per share data
2016
2015
Fav (Unfav)
Fav (Unfav)
Fav (Unfav)
2016
2015
Fav (Unfav)
Fav (Unfav)
Fav (Unfav)
Revenue:
Americas (1)
$
338.8
$
328.4
3%
0.0%
3%
$
974.9
$
912.2
7%
(0.2)%
7%
Non-Americas
74.0
77.8
(5)%
(6.8)%
2%
211.7
225.6
(6)%
(4.6)%
(2)%
Total Revenue (2)
$
412.8
$
406.2
2%
(1.3)%
3%
$
1,186.6
$
1,137.8
4%
(1.1)%
5%
Operating Income (Loss):
Americas (3)
$
100.6
$
86.4
16%
$
253.9
$
221.5
15%
Non-Americas (4)
20.0
22.8
(12)%
47.2
63.4
(26)%
Corporate and Other (5)
(23.8)
(24.2)
2%
(104.6)
(76.6)
(37)%
Total Operating Income (6)
96.8
85.0
14%
196.5
208.3
(6)%
Interest Income
0.4
0.3
63%
1.4
1.1
37%
Interest Expense
(13.2)
(13.8)
4%
(40.1)
(37.0)
(8)%
Other Income (Expense) - Net (9)
(92.2)
(9.2)
N/M
(91.9)
(7.4)
N/M
Non-Operating Income (Expense) - Net (10)
(105.0)
(22.7)
N/M
(130.6)
(43.3)
N/M
Income Before Provision for Income Taxes
(8.2)
62.3
N/M
65.9
165.0
(60)%
Less: Provision for Income Taxes (11)
19.8
3.1
N/M
45.0
36.5
(23)%
Equity in Net Income (Loss) of Affiliates
1.2
0.9
25%
2.9
2.9
(2)%
Net Income From Continuing Operations
(26.8)
60.1
N/M
23.8
131.4
(82)%
Less: Net (Income) Loss Attributable to the Noncontrolling Interest
(1.7)
(0.9)
(66)%
(3.5)
(3.1)
(11)%
Net Income From Continuing Operations Attributable to Dun &
(28.5)
59.2
N/M
20.3
128.3
(84)%
Bradstreet
Income from Discontinued Operations, Net of Income Taxes
-
(0.1)
N/M
-
2.1
N/M
Loss on Disposal of Business, Net of Tax Impact
(0.9)
(0.1)
N/M
(0.9)
(38.3)
98%
Income (Loss) from Discontinued Operations, Net of Income Taxes
(0.9)
(0.2)
N/M
(0.9)
(36.2)
98%
Net Income Attributable to Dun & Bradstreet (7)
$
(29.4)
$
59.0
N/M
$
19.4
$
92.1
(79)%
Basic Earnings (Loss) Per Share:
From Continuing Operations
$
(0.78)
$
1.64
N/M
$
0.56
$
3.56
(84)%
From Discontinued Operations
(0.02)
(0.01)
N/M
(0.03)
(1.01)
97%
Basic Earnings (Loss) Per Share of Common Stock
$
(0.80)
$
1.63
N/M
$
0.53
$
2.55
(79)%
Attributable to Dun & Bradstreet Common Shareholders
Diluted Earnings (Loss) Per Share:
From Continuing Operations
$
(0.78)
$
1.63
N/M
$
0.55
$
3.53
(84)%
From Discontinued Operations
(0.02)
(0.01)
N/M
(0.02)
(1.00)
98%
Diluted Earnings (Loss) Per Share of Common Stock
$
(0.80)
$
1.62
N/M
$
0.53
$
2.53
(79)%
Attributable to Dun & Bradstreet Common Shareholders (8)
Weighted Average Number of Shares Outstanding:
Basic
36.6
36.1
(1)%
36.4
36.1
(1)%
Diluted
36.6
36.4
(1)%
36.7
36.4
(1)%
Operating Margins (Calculated on Total Revenue)
Americas
29.7%
26.3%
26.0%
24.3%
Non-Americas
27.0%
29.3%
22.3%
28.1%
Total Company
23.5%
20.9%
16.6%
18.3%
Effective Tax Rate
(243.2)%
5.0%
68.4%
22.1%
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
See Schedule 6 (Notes to Schedules) for a reconciliation of each
of these As Adjusted metrics to the corresponding GAAP metrics.
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation
Schedule 2
Certain Selected As Adjusted
Metrics (unaudited)
Effects of
Effects of
Quarter Ended
AFX
Foreign
BFX
Year-To-Date
AFX
Foreign
BFX
September 30,
% Change
Exchange
% Change
September 30,
% Change
Exchange
% Change
Dollar amounts in millions, except per share data
2016
2015
Fav (Unfav)
Fav (Unfav)
Fav (Unfav)
2016
2015
Fav (Unfav)
Fav (Unfav)
Fav (Unfav)
Revenue:
Americas (1)
$
338.8
$
336.4
1%
0.0%
1%
$
978.0
$
927.0
6%
(0.2)%
6%
Non-Americas
74.0
77.8
(5)%
(6.8)%
2%
211.7
225.6
(6)%
(4.6)%
(2)%
Total Revenue (2)
$
412.8
$
414.2
0%
(1.3)%
1%
$
1,189.7
$
1,152.6
3%
(1.1)%
4%
Organic Revenue:
Total Revenue
$
412.8
$
414.2
N/M
N/M
1%
$
1,189.7
$
1,152.6
N/M
N/M
4%
Less:
Acquisitions
-
-
N/M
N/M
N/M
40.0
-
N/M
N/M
N/M
Net Divested
-
-
N/M
N/M
N/M
-
-
N/M
N/M
N/M
Organic Revenue
$
412.8
$
414.2
N/M
N/M
1%
$
1,149.7
$
1,152.6
N/M
N/M
1%
Operating Income (Loss):
Americas (3)
$
107.2
$
100.9
6%
$
277.7
$
249.6
11%
Non-Americas (4)
20.1
22.5
(11)%
47.6
63.1
(25)%
Corporate and Other (5)
(20.0)
(17.4)
(15)%
(57.5)
(49.8)
(16)%
Total Operating Income (6)
$
107.3
$
106.0
1%
$
267.8
$
262.9
2%
Net Income Attributable to Dun & Bradstreet (7)
$
66.2
$
66.9
(1)%
$
159.4
$
159.1
0%
Basic Earnings Per Share of Common Stock
$
1.81
$
1.85
(2)%
$
4.38
$
4.41
(1)%
Attributable to Dun & Bradstreet Common Shareholders
Diluted Earnings Per Share of Common Stock
$
1.79
$
1.84
(3)%
$
4.34
$
4.37
(1)%
Attributable to Dun & Bradstreet Common Shareholders (8)
Weighted Average Number of Shares Outstanding:
Basic
36.6
36.1
(1)%
36.4
36.1
(1)%
Diluted
37.0
36.4
(2)%
36.7
36.4
(1)%
Other Information:
Interest Income
$
0.4
$
0.3
63%
$
1.4
$
1.1
37%
Interest Expense
(13.2)
(13.8)
4%
(40.1)
(37.0)
(8)%
Other Income (Expense) - Net (9)
(0.8)
(0.7)
(13)%
(0.5)
1.0
N/M
Non-Operating Income (Expense) - Net (10)
$
(13.6)
$
(14.2)
5%
$
(39.2)
$
(34.9)
(12)%
Provision for Income Taxes (11)
$
27.0
$
24.9
(9)%
$
68.6
$
68.7
0%
Equity in Net Income (Loss) of Affiliates
$
1.2
$
0.9
25%
$
2.9
$
2.9
(2)%
Net (Income) Loss Attributable to the Noncontrolling Interest
$
(1.7)
$
(0.9)
(66)%
$
(3.5)
$
(3.1)
(11)%
Operating Margins (Calculated on Total Revenue)
Americas
31.6%
30.0%
28.4%
26.9%
Non-Americas
27.1%
28.8%
22.5%
28.0%
Total Company
26.0%
25.6%
22.5%
22.8%
Effective Tax Rate
28.9%
27.1%
30.0%
30.2%
AFX - After Effects of Foreign Exchange
BFX - Before
Effects of Foreign Exchange
N/M - Not Meaningful
See Schedule 6 (Notes to Schedules) for a reconciliation of each
of these As Adjusted metrics to the corresponding GAAP metrics.
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation
Schedule 3
Supplemental Revenue Detail (unaudited) - GAAP
Results
Quarter Ended
Effects of
Year-To-Date
Effects of
September 30,
AFX
Foreign
BFX
September 30,
AFX
Foreign
BFX
% Change
Exchange
% Change
% Change
Exchange
% Change
Amounts in millions
2016
2015
Fav/(Unfav)
Fav/(Unfav)
Fav/(Unfav)
2016
2015
Fav/(Unfav)
Fav/(Unfav)
Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit
$
132.3
$
132.7
0%
0.0%
0%
$
387.0
$
394.2
(2)%
(0.3)%
(2)%
Other Enterprise Risk Management
71.3
61.6
16%
(0.1)%
16%
178.4
134.9
32%
(0.5)%
33%
Total Americas Risk Management Solutions
203.6
194.3
5%
0.0%
5%
565.4
529.1
7%
(0.3)%
7%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
37.2
$
38.1
(2)%
0.0%
(2)%
$
107.5
$
103.8
4%
(0.1)%
4%
Advanced Marketing Solutions
98.0
96.0
2%
0.0%
2%
302.0
279.3
8%
(0.1)%
8%
Total Americas Sales and Marketing Solutions
135.2
134.1
1%
0.0%
1%
409.5
383.1
7%
(0.1)%
7%
Total Americas Revenue
$
338.8
$
328.4
3%
0.0%
3%
$
974.9
$
912.2
7%
(0.2)%
7%
Non-Americas:
Risk Management Solutions
Trade Credit
$
43.5
$
46.2
(6)%
(6.2)%
1%
$
125.9
$
135.7
(7)%
(4.3)%
(3)%
Other Enterprise Risk Management
16.8
14.9
12%
(8.0)%
20%
49.1
45.1
9%
(5.0)%
14%
Total Non-Americas Risk Management Solutions
60.3
61.1
(1)%
(6.6)%
5%
175.0
180.8
(3)%
(4.5)%
1%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
4.3
$
4.7
(8)%
(5.6)%
(2)%
$
11.8
$
13.0
(9)%
(4.7)%
(4)%
Advanced Marketing Solutions
9.4
12.0
(22)%
(8.7)%
(13)%
24.9
31.8
(22)%
(5.2)%
(16)%
Total Non-Americas Sales and Marketing Solutions
13.7
16.7
(18)%
(7.8)%
(10)%
36.7
44.8
(18)%
(5.0)%
(13)%
Total Non-Americas Revenue
$
74.0
$
77.8
(5)%
(6.8)%
2%
$
211.7
$
225.6
(6)%
(4.6)%
(2)%
Total Corporation:
Risk Management Solutions
Trade Credit
$
175.8
$
178.9
(2)%
(1.6)%
0%
$
512.9
$
529.9
(3)%
(1.3)%
(2)%
Other Enterprise Risk Management
88.1
76.5
15%
(1.6)%
17%
227.5
180.0
26%
(1.7)%
28%
Total Risk Management Solutions
263.9
255.4
3%
(1.6)%
5%
740.4
709.9
4%
(1.4)%
6%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
41.5
$
42.8
(3)%
(0.6)%
(2)%
$
119.3
$
116.8
2%
(0.7)%
3%
Advanced Marketing Solutions
107.4
108.0
(1)%
(1.0)%
0%
326.9
311.1
5%
(0.6)%
6%
Total Sales and Marketing Solutions
148.9
150.8
(1)%
(0.9)%
0%
446.2
427.9
4%
(0.6)%
5%
Total Revenue
$
412.8
$
406.2
2%
(1.3)%
3%
$
1,186.6
$
1,137.8
4%
(1.1)%
5%
Trade Credit Revenue:
Americas:
DNBi
$
95.7
$
97.6
(2)%
0.0%
(2)%
$
284.1
$
293.5
(3)%
(0.2)%
(3)%
Other Trade Credit
36.6
35.1
4%
0.1%
4%
102.9
100.7
2%
(0.4)%
2%
Total Americas Trade Credit Revenue
132.3
132.7
0%
0.0%
0%
387.0
394.2
(2)%
(0.3)%
(2)%
Non-Americas:
DNBi
$
6.1
$
6.2
(1)%
(7.2)%
7%
$
18.3
$
19.0
(3)%
(5.0)%
2%
Other Trade Credit
37.4
40.0
(6)%
(6.1)%
0%
107.6
116.7
(8)%
(4.2)%
(4)%
Total Non-Americas Trade Credit Revenue
43.5
46.2
(6)%
(6.2)%
1%
125.9
135.7
(7)%
(4.3)%
(3)%
Total Corporation:
DNBi
$
101.8
$
103.8
(2)%
(0.4)%
(1)%
$
302.4
$
312.5
(3)%
(0.5)%
(3)%
Other Trade Credit
74.0
75.1
(1)%
(3.2)%
2%
210.5
217.4
(3)%
(2.5)%
(1)%
Total Trade Credit Revenue
$
175.8
$
178.9
(2)%
(1.6)%
0%
$
512.9
$
529.9
(3)%
(1.3)%
(2)%
Total Revenue:
Americas:
Direct
$
302.8
$
294.4
3%
(0.1)%
3%
$
888.1
$
837.5
6%
(0.3)%
6%
Alliances & Partners
36.0
34.0
6%
0.4%
5%
86.8
74.7
16%
0.3%
16%
Total Americas Revenue
338.8
328.4
3%
0.0%
3%
974.9
912.2
7%
(0.2)%
7%
Non-Americas:
Direct
$
49.6
$
54.1
(8)%
(7.4)%
(1)%
$
143.7
$
157.2
(9)%
(5.3)%
(3)%
Alliances & Partners
24.4
23.7
3%
(5.6)%
9%
68.0
68.4
(1)%
(2.9)%
2%
Total Non-Americas Revenue
74.0
77.8
(5)%
(6.8)%
2%
211.7
225.6
(6)%
(4.6)%
(2)%
Total Corporation:
Direct
$
352.4
$
348.5
1%
(1.2)%
2%
$
1,031.8
$
994.7
4%
(1.1)%
5%
Alliances & Partners
60.4
57.7
5%
(2.0)%
7%
154.8
143.1
8%
(1.2)%
9%
Total Revenue
$
412.8
$
406.2
2%
(1.3)%
3%
$
1,186.6
$
1,137.8
4%
(1.1)%
5%
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation
Schedule 4
Supplemental Revenue Detail (unaudited) - As
Adjusted
Quarter Ended
Effects of
Year-To-Date
Effects of
September 30,
AFX
Foreign
BFX
September 30,
AFX
Foreign
BFX
% Change
Exchange
% Change
% Change
Exchange
% Change
Amounts in millions
2016
2015
Fav/(Unfav)
Fav/(Unfav)
Fav/(Unfav)
2016
2015
Fav/(Unfav)
Fav/(Unfav)
Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit
$
132.3
$
133.5
(1)%
0.0%
(1)%
$
387.3
$
395.6
(2)%
(0.3)%
(2)%
Other Enterprise Risk Management
71.3
67.0
6%
(0.1)%
7%
180.6
144.3
25%
(0.4)%
26%
Total Americas Risk Management Solutions
203.6
200.5
2%
0.0%
2%
567.9
539.9
5%
(0.3)%
5%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
37.2
$
39.5
(6)%
0.0%
(6)%
$
108.1
$
106.3
2%
(0.1)%
2%
Advanced Marketing Solutions
98.0
96.4
2%
0.0%
2%
302.0
280.8
8%
(0.1)%
8%
Total Americas Sales and Marketing Solutions
135.2
135.9
(1)%
(0.1)%
0%
410.1
387.1
6%
(0.1)%
6%
Total Americas Revenue
$
338.8
$
336.4
1%
0.0%
1%
$
978.0
$
927.0
6%
(0.2)%
6%
Non-Americas:
Risk Management Solutions
Trade Credit
$
43.5
$
46.2
(6)%
(6.2)%
1%
$
125.9
$
135.7
(7)%
(4.3)%
(3)%
Other Enterprise Risk Management
16.8
14.9
12%
(8.0)%
20%
49.1
45.1
9%
(5.0)%
14%
Total Non-Americas Risk Management Solutions
60.3
61.1
(1)%
(6.6)%
5%
175.0
180.8
(3)%
(4.5)%
1%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
4.3
$
4.7
(8)%
(5.6)%
(2)%
$
11.8
$
13.0
(9)%
(4.7)%
(4)%
Advanced Marketing Solutions
9.4
12.0
(22)%
(8.7)%
(13)%
24.9
31.8
(22)%
(5.2)%
(16)%
Total Non-Americas Sales and Marketing Solutions
13.7
16.7
(18)%
(7.8)%
(10)%
36.7
44.8
(18)%
(5.0)%
(13)%
Total Non-Americas Revenue
$
74.0
$
77.8
(5)%
(6.8)%
2%
$
211.7
$
225.6
(6)%
(4.6)%
(2)%
Total Corporation:
Risk Management Solutions
Trade Credit
$
175.8
$
179.7
(2)%
(1.6)%
(1)%
$
513.2
$
531.3
(3)%
(1.3)%
(2)%
Other Enterprise Risk Management
88.1
81.9
8%
(1.5)%
9%
229.7
189.4
21%
(1.6)%
23%
Total Risk Management Solutions
263.9
261.6
1%
(1.5)%
2%
742.9
720.7
3%
(1.4)%
4%
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
41.5
$
44.2
(6)%
(0.6)%
(5)%
$
119.9
$
119.3
1%
(0.6)%
1%
Advanced Marketing Solutions
107.4
108.4
(1)%
(1.0)%
0%
326.9
312.6
5%
(0.6)%
5%
Total Sales and Marketing Solutions
148.9
152.6
(2)%
(0.9)%
(2)%
446.8
431.9
3%
(0.6)%
4%
Total Revenue
$
412.8
$
414.2
0%
(1.3)%
1%
$
1,189.7
$
1,152.6
3%
(1.1)%
4%
Trade Credit Revenue:
Americas:
DNBi
$
95.7
$
97.9
(2)%
0.0%
(2)%
$
284.2
$
293.9
(3)%
(0.2)%
(3)%
Other Trade Credit
36.6
35.6
2%
0.1%
2%
103.1
101.7
1%
(0.4)%
2%
Total Americas Trade Credit Revenue
132.3
133.5
(1)%
0.0%
(1)%
387.3
395.6
(2)%
(0.3)%
(2)%
Non-Americas:
DNBi
$
6.1
$
6.2
(1)%
(7.2)%
7%
$
18.3
$
19.0
(3)%
(5.0)%
2%
Other Trade Credit
37.4
40.0
(6)%
(6.1)%
0%
107.6
116.7
(8)%
(4.2)%
(4)%
Total Non-Americas Trade Credit Revenue
43.5
46.2
(6)%
(6.2)%
1%
125.9
135.7
(7)%
(4.3)%
(3)%
Total Corporation:
DNBi
$
101.8
$
104.1
(2)%
(0.4)%
(2)%
$
302.5
$
312.9
(3)%
(0.5)%
(3)%
Other Trade Credit
74.0
75.6
(2)%
(3.2)%
1%
210.7
218.4
(4)%
(2.4)%
(1)%
Total Trade Credit Revenue
$
175.8
$
179.7
(2)%
(1.6)%
(1)%
$
513.2
$
531.3
(3)%
(1.3)%
(2)%
Total Revenue:
Americas:
Direct
$
302.8
$
302.1
0%
(0.1)%
0%
$
891.2
$
851.8
5%
(0.3)%
5%
Alliances & Partners
36.0
34.3
5%
0.4%
4%
86.8
75.2
15%
0.3%
15%
Total Americas Revenue
338.8
336.4
1%
0.0%
1%
978.0
927.0
6%
(0.2)%
6%
Non-Americas:
Direct
$
49.6
$
54.1
(8)%
(7.4)%
(1)%
$
143.7
$
157.2
(9)%
(5.3)%
(3)%
Alliances & Partners
24.4
23.7
3%
(5.6)%
9%
68.0
68.4
(1)%
(2.9)%
2%
Total Non-Americas Revenue
74.0
77.8
(5)%
(6.8)%
2%
211.7
225.6
(6)%
(4.6)%
(2)%
Total Corporation:
Direct
$
352.4
$
356.2
(1)%
(1.2)%
0%
$
1,034.9
$
1,009.0
3%
(1.1)%
4%
Alliances & Partners
60.4
58.0
4%
(2.0)%
6%
154.8
143.6
8%
(1.2)%
9%
Total Revenue
$
412.8
$
414.2
0%
(1.3)%
1%
$
1,189.7
$
1,152.6
3%
(1.1)%
4%
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation
Schedule 5
Supplemental Financial Data (unaudited)
Quarter Ended
Year-To-Date
September 30,
AFX
September 30,
AFX
% Change
% Change
Amounts in millions
2016
2015
Fav/(Unfav)
2016
2015
Fav/(Unfav)
Operating Costs (GAAP):
Operating Expenses
$
130 .7
$
132 .4
1 %
$
396 .1
$
399 .8
1 %
Selling and Administrative Expenses
164 .9
167 .2
1 %
524 .3
472 .0
(11 )%
Depreciation and Amortization
17 .2
16 .1
(7 )%
50 .9
42 .6
(20 )%
Restructuring Expense
3 .2
5 .5
42 %
18 .8
15 .1
(24 )%
Total Operating Costs (GAAP)
$
316 .0
$
321 .2
2 %
$
990 .1
$
929 .5
(7 )%
Capital Expenditures (GAAP)
$
2 .6
$
2 .0
(32 )%
$
12 .1
$
6 .8
(78 )%
Additions to Computer Software & Other Intangibles (GAAP)
$
12 .4
$
12 .0
(3 )%
$
35 .8
$
36 .6
2 %
Operating Costs (As Adjusted):
Operating Expenses
$
130 .7
$
132 .4
1 %
$
396 .1
$
399 .8
1 %
Selling and Administrative Expenses
163 .7
165 .8
1 %
493 .1
459 .0
(7 )%
Depreciation and Amortization
11 .1
10 .0
(12 )%
32 .7
30 .9
(6 )%
Restructuring Expense
-
-
N/M
-
-
N/M
Total Operating Costs (As Adjusted)
$
305 .5
$
308 .2
1 %
$
921 .9
$
889 .7
(4 )%
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Operating Expenses (GAAP):
$
130 .7
$
132 .4
$
396 .1
$
399 .8
None
-
-
-
-
Operating Expenses (As Adjusted)
$
130 .7
$
132 .4
$
396 .1
$
399 .8
Selling and Admin (GAAP)
$
164 .9
$
167 .2
$
524 .3
$
472 .0
Legal and Other Professional Fees and Shut-Down
(0 .4)
-
(1 .6)
(1 .2)
(Costs) Recoveries Related to Matters In China
Accrual for Legal Matters
-
-
(26 .0)
-
Acquisition/Divestiture Related Costs
(0 .8)
(1 .4)
(3 .6)
(11 .8)
Selling and Admin (As Adjusted)
$
163 .7
$
165 .8
$
493 .1
$
459 .0
Depreciation and Amortization (GAAP)
$
17 .2
$
16 .1
$
50 .9
$
42 .6
Amortization of Acquisition Related Intangibles
(6 .1)
(6 .1)
(18 .2)
(11 .7)
Depreciation and Amortization (As Adjusted)
$
11 .1
$
10 .0
$
32 .7
$
30 .9
Restructuring (GAAP)
$
3 .2
$
5 .5
$
18 .8
$
15 .1
Restructuring
(3 .2)
(5 .5)
(18 .8)
(15 .1)
Restructuring (As Adjusted)
$
-
$
-
$
-
$
-
Quarter Ended
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Amounts in millions
2016
2016
2016
2015
2015
2015
2015
Net Debt Position:
Cash and Cash Equivalents
$
327.3
$
379.1
$
365.7
$
365.7
$
293.9
$
137.8
$
355.2
Short-Term Debt
(20.0)
(20.0)
(20.0)
(20.0)
-
(300.5)
(300.8)
Long-Term Debt
(1,586.4)
(1,715.6)
(1,725.4)
(1,804.1)
(1,759.9)
(1,486.1)
(1,402.7)
Net Debt
$ (1,279.1)
$
(1,356.5)
$
(1,379.7)
$ (1,458.4)
$ (1,466.0)
$ (1,648.8)
$
(1,348.3)
Year-To-Date
Amounts in millions
Sep 30, 2016
Sep 30, 2015
% Change Fav/
(Unfav)
Free Cash Flow:
Net Cash Provided By Operating Activities - Continuing Operations
$
280.0
$
283.5
(1)%
(GAAP)
Less:
Capital Expenditures (GAAP)
12.1
6.8
(78)%
Additions to Computer Software & Other Intangibles (GAAP)
35.8
36.6
2%
Free Cash Flow
$
232.1
$
240.1
(3)%
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation
Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of
Non-GAAP Measures
(1)
The following table reconciles Americas Total Revenue included in
Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Americas Total Revenue (GAAP) (Schedule 1)
$
338.8
$
328.4
$
974.9
$
912.2
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(8.0 )
(3.1 )
(14.8 )
Americas Total Revenue (As Adjusted) (Schedule 2)
$
338.8
$
336.4
$
978.0
$
927.0
(2)
The following table reconciles Total Revenue included in Schedule 1
and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Total Revenue (GAAP) (Schedule 1)
$
412.8
$
406.2
$ 1,186.6
$ 1,137.8
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(8.0 )
(3.1 )
(14.8 )
Total Revenue (As Adjusted) (Schedule 2)
$
412.8
$
414.2
$ 1,189.7
$ 1,152.6
(3)
The following table reconciles Americas Operating Income included in
Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Americas Operating Income (GAAP) (Schedule 1)
$
100.6
$
86.4
$
253.9
$
221.5
Acquisition/Divestiture Related Costs
(0.5 )
(0.4 )
(2.5 )
(1.6 )
Amortization of Acquisition Related Intangibles
(6.1 )
(6.1 )
(18.2 )
(11.7 )
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(8.0 )
(3.1 )
(14.8 )
Americas Operating Income (As Adjusted) (Schedule 2)
$
107.2
$
100.9
$
277.7
$
249.6
(4)
The following table reconciles Non-Americas Operating Income
included in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Non-Americas Operating Income (GAAP) (Schedule 1)
$
20.0
$
22.8
$
47.2
$
63.4
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
-
0.5
(0.1 )
0.5
Related to Matters In China
Acquisition/Divestiture Related Costs
(0.1 )
(0.2 )
(0.3 )
(0.2 )
Non-Americas Operating Income (As Adjusted) (Schedule 2)
$
20.1
$
22.5
$
47.6
$
63.1
(5)
The following table reconciles Corporate and Other expenses included
in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Corporate and Other (GAAP) (Schedule 1)
$
(23.8 )
$
(24.2 )
$
(104.6 )
$
(76.6 )
Restructuring Charges
(3.2 )
(5.5 )
(18.8 )
(15.1 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
(0.4 )
(0.5 )
(1.5 )
(1.7 )
Related to Matters In China
Accrual for Legal Matters
-
-
(26.0 )
-
Acquisition/Divestiture Related Costs
(0.2 )
(0.8 )
(0.8 )
(10.0 )
Corporate and Other (As Adjusted) (Schedule 2)
$
(20.0 )
$
(17.4 )
$
(57.5 )
$
(49.8 )
(6)
The following table reconciles Total Operating Income included in
Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Total Operating Income (GAAP) Schedule 1)
$
96.8
$
85.0
$
196.5
$
208.3
Restructuring Charges
(3.2 )
(5.5 )
(18.8 )
(15.1 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
(0.4 )
-
(1.6 )
(1.2 )
Related to Matters In China
Accrual for Legal Matters
-
-
(26.0 )
-
Acquisition/Divestiture Related Costs
(0.8 )
(1.4 )
(3.6 )
(11.8 )
Amortization of Acquisition Related Intangibles
(6.1 )
(6.1 )
(18.2 )
(11.7 )
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(8.0 )
(3.1 )
(14.8 )
Total Operating Income (As Adjusted) (Schedule 2)
$
107.3
$
106.0
$
267.8
$
262.9
(7)
The following table reconciles Net Income Attributable to Dun &
Bradstreet included in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Net Income Attributable to Dun & Bradstreet (GAAP) (Schedule 1)
$
(29.4 )
$
59.0
$
19.4
$
92.1
Restructuring Charges
(2.1 )
(3.8 )
(12.2 )
(9.8 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
(0.3 )
0.3
(1.1 )
(0.5 )
Related to Matters In China
Accrual for Legal Matters
-
-
(22.0 )
-
Acquisition/Divestiture Related Costs
(0.6 )
(1.1 )
(2.4 )
(9.3 )
Amortization of Acquisition Related Intangibles
(3.8 )
(3.8 )
(11.3 )
(7.3 )
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(5.8 )
(2.2 )
(10.4 )
Effect of Legacy and Other Tax Matters
1.7
7.4
1.7
7.4
Gain (Loss) on Investment
-
(0.9 )
-
(0.9 )
Gain (Loss) on Sale of Businesses
(89.6 )
-
(89.6 )
-
After-Tax Impact
(94.7 )
(7.7 )
(139.1 )
(30.8 )
Income (Loss) From Discontinued Operations, Net of Income Taxes
(0.9 )
(0.2 )
(0.9 )
(36.2 )
Net Income Attributable to Dun & Bradstreet (As Adjusted) (Schedule
$
66.2
$
66.9
$
159.4
$
159.1
2)
(8)
The following table reconciles Diluted Earnings Per Share Of Common
Stock included in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
2016
2015
2016
2015
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders
$
(0.80 )
$
1.62
$
0.53
$
2.53
(GAAP) (Schedule 1)
Restructuring Charges
(0.06 )
(0.10 )
(0.33 )
(0.27 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
(0.01 )
0.01
(0.03 )
(0.01 )
Related to Matters In China
Accrual for Legal Matters
-
-
(0.60 )
-
Acquisition/Divestiture Related Costs
(0.01 )
(0.03 )
(0.06 )
(0.25 )
Amortization of Acquisition Related Intangibles
(0.10 )
(0.10 )
(0.31 )
(0.20 )
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(0.16 )
(0.06 )
(0.28 )
Effect of Legacy and Other Tax Matters
0.04
0.20
0.04
0.20
Gain (Loss) on Investment
-
(0.03 )
-
(0.03 )
Gain (Loss) on Sale of Businesses
(2.43 )
-
(2.44 )
-
Discontinued Operations
(0.02 )
(0.01 )
(0.02 )
(1.00 )
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders (As
$
1.79
$
1.84
$
4.34
$
4.37
Adjusted) (Schedule 2)
(9)
The following table reconciles Other Income (Expense)-Net included
in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Other Income (Expense)-Net (GAAP) (Schedule 1)
$
(92.2 )
$
(9.2 )
$
(91.9 )
$
(7.4 )
Effect of Legacy and Other Tax Matters
(1.7 )
(7.0 )
(1.7 )
(6.9 )
Gain (Loss) on Investment
-
(1.2 )
-
(1.2 )
Gain (Loss) on Sale of Businesses
(89.6 )
-
(89.6 )
-
Acquisition/Divestiture Related Costs
(0.1 )
(0.3 )
(0.1 )
(0.3 )
Other Income (Expense)-Net (As Adjusted) (Schedule 2)
$
(0.8 )
$
(0.7 )
$
(0.5 )
$
1.0
(10)
The following table reconciles Non-Operating Income (Expense)-Net
included in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Non-Operating Income (Expense) - Net (GAAP) (Schedule 1)
$ (105.0 )
$
(22.7 )
$
(130.6 )
$
(43.3 )
Effect of Legacy and Other Tax Matters
(1.7 )
(7.0 )
(1.7 )
(6.9 )
Gain (Loss) on Investment
-
(1.2 )
-
(1.2 )
Gain (Loss) on Sale of Businesses
(89.6 )
-
(89.6 )
-
Acquisition/Divestiture Related Costs
(0.1 )
(0.3 )
(0.1 )
(0.3 )
Non-Operating Income (Expense) - Net (As Adjusted) (Schedule 2)
$
(13.6 )
$
(14.2 )
$
(39.2 )
$
(34.9 )
(11)
The following table reconciles Provision for Income Taxes included
in Schedule 1 and Schedule 2:
Quarter Ended
Year-To-Date
September 30,
September 30,
Amounts in millions
2016
2015
2016
2015
Provision for Income Taxes (GAAP) (Schedule 1)
$
19.8
$
3.1
$
45.0
$
36.5
Restructuring Charges
(1.1 )
(1.7 )
(6.6 )
(5.3 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
(0.1 )
(0.3 )
(0.5 )
(0.7 )
Related to Matters In China
Accrual for Legal Matters
-
-
(4.0 )
-
Acquisition/Divestiture Related Costs
(0.3 )
(0.6 )
(1.3 )
(2.8 )
Amortization of Acquisition Related Intangibles
(2.3 )
(2.3 )
(6.9 )
(4.4 )
Acquisition Related Deferred Revenue Fair Value Adjustment
-
(2.2 )
(0.9 )
(4.4 )
Effect of Legacy and Other Tax Matters
(3.4 )
(14.4 )
(3.4 )
(14.3 )
Gain (Loss) on Investment
-
(0.3 )
-
(0.3 )
Provision for Income Taxes (As Adjusted) (Schedule 2)
$
27.0
$
24.9
$
68.6
$
68.7
The Dun & Bradstreet Corporation
Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of
Non-GAAP Measures
Quarter Ended September 30, 2016
Quarter Ended September 30, 2015
Amounts in millions
GAAP
Acquisition Related Deferred Revenue
As Adjusted
GAAP
Acquisition Related Deferred Revenue
As Adjusted
(Sched 3)
(Sched 4)
(Sched 3)
(Sched 4)
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit
$
132.3
$
-
$
132.3
$
132.7
$
0.8
$
133.5
Other Enterprise Risk Management
71.3
-
71.3
61.6
5.4
67.0
Total Americas Risk Management Solutions
203.6
-
203.6
194.3
6.2
200.5
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
37.2
$
-
$
37.2
$
38.1
$
1.4
$
39.5
Advanced Marketing Solutions
98.0
-
98.0
96.0
0.4
96.4
Total Americas Sales and Marketing Solutions
135.2
-
135.2
134.1
1.8
135.9
Total Americas Revenue
$
338.8
-
$
338.8
$
328.4
8.0
$
336.4
Non-Americas:
Risk Management Solutions
Trade Credit
$
43.5
$
-
$
43.5
$
46.2
$
-
$
46.2
Other Enterprise Risk Management
16.8
-
16.8
14.9
-
14.9
Total Non-Americas Risk Management Solutions
60.3
-
60.3
61.1
-
61.1
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
4.3
$
-
$
4.3
$
4.7
$
-
$
4.7
Advanced Marketing Solutions
9.4
-
9.4
12.0
-
12.0
Total Non-Americas Sales and Marketing Solutions
13.7
-
13.7
16.7
-
16.7
Total Non-Americas Revenue
$
74.0
$
-
$
74.0
$
77.8
$
-
$
77.8
Total Corporation:
Risk Management Solutions
Trade Credit
$
175.8
$
-
$
175.8
$
178.9
$
0.8
$
179.7
Other Enterprise Risk Management
88.1
-
88.1
76.5
5.4
81.9
Total Risk Management Solutions
263.9
-
263.9
255.4
6.2
261.6
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
41.5
$
-
$
41.5
$
42.8
$
1.4
$
44.2
Advanced Marketing Solutions
107.4
-
107.4
108.0
0.4
108.4
Total Sales and Marketing Solutions
148.9
-
148.9
150.8
1.8
152.6
Total Revenue
$
412.8
$
-
$
412.8
$
406.2
8.0
$
414.2
Trade Credit Revenue:
Americas:
DNBi
$
95.7
$
-
$
95.7
$
97.6
$
0.3
$
97.9
Other Trade Credit
36.6
-
36.6
35.1
0.5
35.6
Total Americas Trade Credit Revenue
132.3
-
132.3
132.7
0.8
133.5
Non-Americas:
DNBi
$
6.1
$
-
$
6.1
$
6.2
$
-
$
6.2
Other Trade Credit
37.4
-
37.4
40.0
-
40.0
Total Non-Americas Trade Credit Revenue
43.5
-
43.5
46.2
-
46.2
Total Corporation:
DNBi
$
101.8
$
-
$
101.8
$
103.8
$
0.3
$
104.1
Other Trade Credit
74.0
-
74.0
75.1
0.5
75.6
Total Trade Credit Revenue
$
175.8
$
-
$
175.8
$
178.9
$
0.8
$
179.7
Total Revenue:
Americas:
Direct
$
302.8
$
-
$
302.8
$
294.4
$
7.7
$
302.1
Alliances & Partners
36.0
-
36.0
34.0
0.3
34.3
Total Americas Revenue
338.8
-
338.8
328.4
8.0
336.4
Non-Americas:
Direct
$
49.6
$
-
$
49.6
$
54.1
$
-
$
54.1
Alliances & Partners
24.4
-
24.4
23.7
-
23.7
Total Non-Americas Revenue
74.0
-
74.0
77.8
-
77.8
Total Corporation:
Direct
$
352.4
$
-
$
352.4
$
348.5
$
7.7
$
356.2
Alliances & Partners
60.4
-
60.4
57.7
0.3
58.0
Total Revenue
$
412.8
$
-
$
412.8
$
406.2
8.0
$
414.2
The Dun & Bradstreet Corporation
Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of
Non-GAAP Measures
Year-To-Date September 30, 2016
Year-To-Date September 30, 2015
Amounts in millions
GAAP
Acquisition Related Deferred Revenue
As Adjusted
GAAP
Acquisition Related Deferred Revenue
As Adjusted
(Schedule 3)
(Schedule 4)
(Schedule 3)
(Schedule 4)
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit
$
387.0
$
0.3
$
387.3
$
394.2
$
1.4
$
395.6
Other Enterprise Risk Management
178.4
2.2
180.6
134.9
9.4
144.3
Total Americas Risk Management Solutions
565.4
2.5
567.9
529.1
10.8
539.9
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
107.5
$
0.6
$
108.1
$
103.8
$
2.5
$
106.3
Advanced Marketing Solutions
302.0
-
302.0
279.3
1.5
280.8
Total Americas Sales and Marketing Solutions
409.5
0.6
410.1
383.1
4.0
387.1
Total Americas Revenue
$
974.9
$
3.1
$
978.0
$
912.2
14.8
$
927.0
Non-Americas:
Risk Management Solutions
Trade Credit
$
125.9
$
-
$
125.9
$
135.7
$
-
$
135.7
Other Enterprise Risk Management
49.1
-
49.1
45.1
-
45.1
Total Non-Americas Risk Management Solutions
175.0
-
175.0
180.8
-
180.8
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
11.8
$
-
$
11.8
$
13.0
$
-
$
13.0
Advanced Marketing Solutions
24.9
-
24.9
31.8
-
31.8
Total Non-Americas Sales and Marketing Solutions
36.7
-
36.7
44.8
-
44.8
Total Non-Americas Revenue
$
211.7
$
-
$
211.7
$
225.6
$
-
$
225.6
Total Corporation:
Risk Management Solutions
Trade Credit
$
512.9
$
0.3
$
513.2
$
529.9
$
1.4
$
531.3
Other Enterprise Risk Management
227.5
2.2
229.7
180.0
9.4
189.4
Total Risk Management Solutions
740.4
2.5
742.9
709.9
10.8
720.7
Sales and Marketing Solutions
Traditional Prospecting Solutions
$
119.3
$
0.6
$
119.9
$
116.8
$
2.5
$
119.3
Advanced Marketing Solutions
326.9
-
326.9
311.1
1.5
312.6
Total Sales and Marketing Solutions
446.2
0.6
446.8
427.9
4.0
431.9
Total Revenue
$
1,186.6
$
3.1
$
1,189.7
$
1,137.8
14.8
$
1,152.6
Trade Credit Revenue:
Americas:
DNBi
$
284.1
$
0.1
$
284.2
$
293.5
$
0.4
$
293.9
Other Trade Credit
102.9
0.2
103.1
100.7
1.0
101.7
Total Americas Trade Credit Revenue
387.0
0.3
387.3
394.2
1.4
395.6
Non-Americas:
DNBi
$
18.3
$
-
$
18.3
$
19.0
$
-
$
19.0
Other Trade Credit
107.6
-
107.6
116.7
-
116.7
Total Non-Americas Trade Credit Revenue
125.9
-
125.9
135.7
-
135.7
Total Corporation:
DNBi
$
302.4
$
0.1
$
302.5
$
312.5
$
0.4
$
312.9
Other Trade Credit
210.5
0.2
210.7
217.4
1.0
218.4
Total Trade Credit Revenue
$
512.9
$
0.3
$
513.2
$
529.9
$
1.4
$
531.3
Total Revenue:
Americas:
Direct
$
888.1
$
3.1
$
891.2
$
837.5
$
14.3
$
851.8
Alliances & Partners
86.8
-
86.8
74.7
0.5
75.2
Total Americas Revenue
974.9
3.1
978.0
912.2
14.8
927.0
Non-Americas:
Direct
$
143.7
$
-
$
143.7
$
157.2
$
-
$
157.2
Alliances & Partners
68.0
-
68.0
68.4
-
68.4
Total Non-Americas Revenue
211.7
-
211.7
225.6
-
225.6
Total Corporation:
Direct
$
1,031.8
$
3.1
$
1,034.9
$
994.7
$
14.3
$
1,009.0
Alliances & Partners
154.8
-
154.8
143.1
0.5
143.6
Total Revenue
$
1,186.6
$
3.1
$
1,189.7
$
1,137.8
14.8
$
1,152.6
The Dun & Bradstreet Corporation
Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of
Non-GAAP Measures
N/M - Not Meaningful
The following defines the non-GAAP measures used to evaluate
performance:
In addition to reporting generally accepted accounting
principles in the United States of America ("GAAP") results, the
Company evaluates performance and reports on a total company basis
and on a business segment level basis its results (such as
revenue, operating income, operating income growth, operating
margin, net income, tax rate and diluted earnings per share) on an
"As Adjusted" basis. The term "As Adjusted" refers to the
following: the elimination of the effect on revenue due to
purchase accounting fair value adjustments to deferred revenue;
restructuring charges; other non-core gains and charges that are
not in the normal course of our business (such as gains and losses
on sales of businesses, impairment charges and material tax and
legal settlements); acquisition and divestiture-related fees (such
as costs for bankers, legal fees, diligence costs and retention
payments); and acquisition-related intangible amortization
expense. A recurring component of our "As Adjusted" basis is our
restructuring charges, which we believe do not reflect our
underlying business performance. Such charges are variable from
period to period based upon actions identified and taken during
each period. Additionally, our "As Adjusted" results exclude the
results of Discontinued Operations. Management reviews operating
results on an "As Adjusted" basis on a monthly basis and
establishes internal budgets and forecasts based upon such
measures. Management further establishes annual and long-term
compensation such as salaries, target cash bonuses and target
equity compensation amounts based on performance on an "As
Adjusted" basis and a significant percentage weight is placed upon
performance on an "As Adjusted" basis in determining whether
performance objectives have been achieved. Management believes
that by reflecting these adjustments to our GAAP financial
measures, business leaders are provided incentives to recommend
and execute actions that support our long-term growth strategy
rather than being influenced by the potential impact one of these
items can have in a particular period on their compensation. The
Company adjusts for these items because they do not reflect the
Company’s underlying business performance and they may have a
disproportionate positive or negative impact on the results of its
ongoing business operations. We believe that the use of our
non-GAAP financial measures provides useful supplemental
information to our investors.
We also isolate the effects of changes in foreign exchange
rates on our revenue growth because we believe it is useful for
investors to be able to compare revenue from one period to
another, both after and before the effects of foreign exchange.
The change in our operating performance attributable to foreign
currency rates is determined by converting both our prior and
current periods by a constant rate. As a result, we monitor our
"As Adjusted" revenue growth both after and before the effects of
foreign exchange.
We also analyze "As Adjusted" revenue growth on an organic
basis because management believes this information provides
important insight into the underlying/ongoing performance of the
business.
Organic revenue excludes; (1) revenue from acquired
businesses for one year from the date of the acquisition and (2)
net divested revenue which we define as the historical revenues
from the divested businesses net of the annual ongoing future
revenue streams resulting from the commercial arrangements entered
into in connection with such divestitures.
We may from time to time use the term "sales", which we define
as the value of committed customer contracts. This term is often
referred to as "bookings" or "commitments" by other companies.
We monitor free cash flow as a measure of our business. We
define free cash flow as net cash provided by operating activities
minus capital expenditures and additions to computer software and
other intangibles. Free cash flow measures our available cash flow
for potential debt repayment, acquisitions, stock repurchases,
dividend payments and additions to cash, cash equivalents and
short-term investments. We believe free cash flow to be relevant
and useful to our investors as this measure is used by our
management in evaluating the funding available after supporting
our ongoing business operations and our portfolio of investments.
Free cash flow should not be considered as a substitute measure
for, or superior to, net cash flows provided by operating
activities, investing activities or financing activities.
Therefore, we believe it is important to view free cash flow as a
complement to the consolidated statements of cash flows.
We also monitor deferred revenue after adjusting for the effect
of foreign exchange, dispositions, acquisitions and the impacts of
the write-down of deferred revenue due to purchase accounting.
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.

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SOURCE: Dun & Bradstreet

Dun & Bradstreet
Media:
Deborah McBride, 973.921.5714
mcbrided@dnb.com
or
Investors/Analysts:
Kathy Guinnessey, 973.921.5892
Kathy.Guinnessey@dnb.com