DUN & BRADSTREET CORP/NW - FORM 8-K - EX-99.1 - PRESS RELEASE - October 25, 2012

Attached files

file filename
8-K - FORM 8-K - DUN & BRADSTREET CORP/NWd426496d8k.htm

 

 

           LOGO

 

Exhibit 99.1

 

LOGO

 

Contacts:      
Patricia Colpitts (Media)    Roger Sachs, CFA (Investors/Analysts)   
colpittsp@dnb.com    sachsr@dnb.com   
512.578.8016    973.921.5914   

D&B Announces Third Quarter 2012 Results and Reaffirms

Full Year 2012 Guidance

 

•  

Diluted EPS Before Non-Core Gains and Charges Up 24% From the Prior Year Similar Period; GAAP Diluted EPS Up 48%;

 

•  

Core Revenue Up 2% Before the Effect of Foreign Exchange (Up 1% After the Effect of Foreign Exchange);

 

•  

Total Revenue on a GAAP Basis Down 5% Before the Effect of Foreign Exchange (Down 6% After the Effect of Foreign Exchange);

 

•  

Announces Manny Conti has been named President, North America;

 

•  

Announces Byron Vielehr has been named President, International and Global Operations.

Short Hills, NJ – October 25, 2012 – D&B (NYSE: DNB), the world’s leading source of commercial information and insight on businesses, today reported results for the third quarter ended September 30, 2012.

“D&B had a solid third quarter despite a difficult environment, and we remain on track to meet our full year guidance,” stated Sara Mathew, Chairman and Chief Executive Officer. With 2012 mostly behind us, the management rotation between Byron and Manny is designed to get us ready for 2013. Both leaders have a deep understanding of our business and will play a critical role in driving value for our customers, shareholders and team members. Please join me in congratulating Manny and Byron on their new responsibilities.”

 

 

 

 

           LOGO

 

Third Quarter 2012 Results

Diluted earnings per share before non-core gains and charges for the quarter ended September 30, 2012 were $1.76, up 24% from $1.42 in the prior year similar period.

On a GAAP basis, diluted earnings per share for the quarter ended September 30, 2012 were $1.76, up 48% from $1.19 in the prior year similar period.

See attached Schedule 3 for a reconciliation of diluted earnings per share before non-core gains and charges to earnings per share on a GAAP basis, as well as the definitions of the non-GAAP financial measures that the Company uses to evaluate the business.

Core revenue for the third quarter of 2012 was $413.2 million, up 2% before the effect of foreign exchange (up 1% after the effect of foreign exchange), as compared to the prior year similar period.

Core revenue results for the third quarter of 2012 reflect the following by solution set:

 

  •  

Risk Management Solutions revenue of $265.8 million, down 1% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period;

 

  •  

Sales & Marketing Solutions revenue of $117.5 million, up 11% before the effect of foreign exchange (up 10% after the effect of foreign exchange), as compared to the prior year similar period; and

 

  •  

Internet Solutions revenue of $29.9 million, down 2% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period.

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

Total revenue for the third quarter of 2012 was $413.2 million, down 5% before the effect of foreign exchange (down 6% after the effect of foreign exchange), as compared to the prior year similar period. Total revenue for the third quarter of 2011 included the results from businesses that were divested or shut down. Deferred revenue was $543.4 million, down 2% from the prior year similar period.

 

 

Page 2 of 12

 

 

           LOGO

 

See attached Schedule 3 for additional detail.

Operating income before non-core gains and charges for the third quarter of 2012 was $127.9 million, up 8% from the prior year similar period, primarily due to reengineering savings as well as the effects of recent business divestitures. On a GAAP basis, operating income for the third quarter of 2012 was $109.7 million, up 9% from the prior year similar period.

See attached Schedule 3 for additional detail.

Net income attributable to D&B before non-core gains and charges for the third quarter of 2012 was $79.4 million, up 14% from the prior year similar period. On a GAAP basis, net income attributable to D&B for the third quarter of 2012 was $79.6 million, up 36% from the prior year similar period.

See attached Schedule 3 for additional detail.

Free cash flow for the first nine months of 2012, excluding the impact of legacy tax matters, was $255.2 million, including approximately $34 million related to MaxCV, compared with $230.9 million and $32 million, respectively, in the prior year similar period. The Company defines free cash flow as net cash provided by operating activities less capital expenditures and additions to computer software and other intangibles. On a GAAP basis, net cash provided by operating activities for the first nine months of 2012 was $307.1 million, compared with $271.2 million in the prior year similar period.

See attached Schedule 4 for additional detail.

Share repurchases during the third quarter of 2012 under the Company’s discretionary repurchase program totaled $36.0 million (approximately 0.4 million shares), while there were no repurchases made to offset the dilutive effect of shares issued under employee benefit plans.

 

 

Page 3 of 12

 

 

           LOGO

 

The Company ended the third quarter of 2012 with $137.0 million of cash and cash equivalents and total gross debt of $1,024.1 million.

Third Quarter 2012 Segment Results

North America

Core revenue for the third quarter of 2012 was $308.3 million, up 1% both before and after the effect of foreign exchange, as compared to the prior year similar period.

North America core revenue results for the third quarter of 2012 reflect the following:

 

  •  

Risk Management Solutions revenue of $178.8 million, down 2% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period;

 

  •  

Sales & Marketing Solutions revenue of $100.5 million, up 10% both before and after the effect of foreign exchange, as compared to the prior year similar period; and

 

  •  

Internet Solutions revenue of $29.0 million, down 3% both before and after the effect of foreign exchange, as compared to the prior year similar period.

See attached Schedules 4, 5 and 6 for additional details.

Total revenue for the third quarter of 2012 was $308.3 million, up 1% before the effect of foreign exchange (flat after the effect of foreign exchange), as compared to the prior year similar period. Total revenue for the third quarter of 2011 included the results of AllBusiness and Purisma that were divested.

Operating income for the third quarter of 2012 was $117.3 million, up 5% from the prior year similar period, primarily due to higher total revenue and reengineering savings.

 

 

Page 4 of 12

 

 

           LOGO

 

Asia Pacific

Core revenue for the third quarter of 2012 was $44.8 million, up 9% before the effect of foreign exchange (up 4% after the effect of foreign exchange), as compared to the prior year similar period.

Asia Pacific core revenue results for the third quarter of 2012 reflect the following:

 

  •  

Risk Management Solutions revenue of $38.1 million, up 3% before the effect of foreign exchange (down 2% after the effect of foreign exchange), as compared to the prior year similar period;

 

  •  

Sales & Marketing Solutions revenue of $6.5 million, up 73% before the effect of foreign exchange (up 58% after the effect of foreign exchange), as compared to the prior year similar period; and

 

  •  

Internet Solutions revenue of $0.2 million, down 3% before the effect of foreign exchange (down 18% after the effect of foreign exchange), as compared to the prior year similar period.

Total revenue for the third quarter of 2012 was $44.8 million, down 34% before the effect of foreign exchange (down 36% after the effect of foreign exchange), as compared to the prior year similar period. Total revenue for the third quarter of 2011 included the results from our market research business in China and the domestic portion of our Japanese operations that were divested, as well as our Roadway operations in China that were shut down.

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

Operating income before non-core gains and charges for the third quarter of 2012 was $6.4 million, up 29% from the prior year similar period, primarily due to the positive impact from the restructuring of our Japan operation where we exited the domestic Japanese market and retained the high margin cross border business.

On a GAAP basis, operating income for the third quarter of 2012 was $5.1 million, up 1% from the prior year similar period.

See attached Schedule 3 for additional detail.

 

 

Page 5 of 12

 

 

           LOGO

 

Europe & Other International Markets

Core and total revenue for the third quarter of 2012 was $60.1 million, up 3% before the effect of foreign exchange (down 4% after the effect of foreign exchange), as compared to the prior year similar period.

Europe & Other International Markets core and total revenue results for the third quarter of 2012 reflect the following:

 

  •  

Risk Management Solutions revenue of $48.9 million, up 4% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period;

 

  •  

Sales & Marketing Solutions revenue of $10.5 million, down 5% before the effect of foreign exchange (down 10% after the effect of foreign exchange), as compared to prior year similar period; and

 

  •  

Internet Solutions revenue of $0.7 million, up 5% before the effect of foreign exchange (up 1% after the effect of foreign exchange), as compared to the prior year similar period.

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

Operating income for the third quarter of 2012 was $17.3 million, up 12% from the prior year similar period, primarily related to savings from our reengineering efforts, partially offset by the negative impact of foreign exchange.

MaxCV

In February 2010, D&B announced a Strategic Technology Investment program aimed at strengthening its leading position in commercial data and improving its current technology platform to meet the emerging needs of customers. We refer to this program as “MaxCV.”

In the third quarter of 2012, the Company incurred $6.7 million of total pre-tax expenses (or $0.11 per diluted share) on MaxCV, which is included in the Non-Core Gains and Charges noted below, and $6.1 million of capital expenditures and additions to computer software and other intangibles related to MaxCV.

For the full year 2012, the Company anticipates spending approximately $60 million on MaxCV.

 

 

Page 6 of 12

 

 

           LOGO

 

See attached Schedule 3 for additional detail.

Non-Core Gains and Charges

During the third quarters of 2012 and 2011, the Company recorded:

 

  •  

A net pre-tax, non-core charge of $33.6 million in the third quarter of 2012, and a net pre-tax, non-core charge of $25.8 million in the third quarter of 2011; and

 

  •  

A net after-tax, non-core gain of $0.2 million in the third quarter of 2012, and a net after-tax, non-core charge of $11.6 million in the third quarter of 2011.

See attached Schedule 3 for additional explanations and details of these charges.

D&B’s restructuring charges may be viewed as recurring as they are part of its Financial Flexibility initiatives. In addition to reporting GAAP results, the Company reports results before restructuring charges and other non-core gains and charges 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. For additional information, see the section titled “Use of Non-GAAP Financial Measures” below.

D&B Announces Changes to Global Leadership Team, Effective January 1, 2013

Manny Conti has been named President, North America. Mr. Conti joined D&B in June 2003 and has held various roles of increasing responsibility. These positions included: Leader of Corporate Strategy, Vice President of Small Business Solutions in North America, President of Europe, Latin America and Partnerships, Chief Administrative Officer and President, International.

Byron Vielehr has been named President, International and Global Operations.   Mr. Vielehr joined D&B in July 2005 and has held various roles of increasing responsibility. These positions included: Chief Information Officer and Leader, Technology, Chief Quality Officer, President, Integration Solutions, President, Global Risk & Analytics and President, North America.

 

 

Page 7 of 12

 

 

           LOGO

 

Full Year 2012 Guidance

D&B today reaffirmed its financial guidance for the full year 2012:

 

  •  

Core revenue growth of 0% to 3%, before the effect of foreign exchange;

 

  •  

Operating income growth of 4% to 7%, before non-core gains and charges;

 

  •  

Diluted EPS growth at the high-end of our range of 8% to 11%, before non-core gains and charges; and

 

  •  

Free cash flow of $275 million to $305 million, excluding the impact of legacy tax matters and any regulatory fees and fines associated with our China operations, and including expenses related to MaxCV.

The impact of MaxCV has been excluded from our operating income and diluted EPS guidance and included in our free cash flow guidance.

D&B does not provide guidance on a GAAP basis because D&B is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of non-core gains and charges, such as restructuring charges and legacy tax matters, which are a component of the most comparable financial measures calculated in accordance with GAAP. Non-core gains and charges are uncertain and will depend on several factors, including industry conditions, and could be material to D&B’s results computed in accordance with GAAP.

Use of Non-GAAP Financial Measures

D&B reports non-GAAP financial measures in this press release and the schedules attached. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – How We Manage Our Business” in the Company’s Annual Report on Form 10-K for the year ending December 31, 2011, filed February 29, 2012 with the SEC, for a discussion of how the Company defines these measures, why it uses them and why it believes they provide useful information to investors. Additionally, these measures are defined in Schedule 3 attached to this press release.

 

 

Page 8 of 12

 

 

           LOGO

 

Third Quarter 2012 Teleconference

As previously announced, D&B will review its third quarter financial results in a conference call with the investment community on Friday, October 26, 2012, at 8 a.m. ET. Live audio, as well as a replay of the conference call will be accessible on D&B’s Investor Relations Web site at http://investor.dnb.com.

**************

About Dun & Bradstreet® (D&B)

Dun & Bradstreet (NYSE:DNB) is the world’s leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence® for 171 years. D&B’s global commercial database contains more than 215 million business records. The database is enhanced by D&B’s proprietary DUNSRight® Quality Process, which provides our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions.

D&B provides solution sets that meet a diverse set of customer needs globally. Customers use D&B Risk Management SolutionsTM to mitigate credit and supplier risk, increase cash flow and drive increased profitability; D&B Sales & Marketing SolutionsTM to increase revenue from new and existing customers; and D&B Internet SolutionsTM to convert prospects into clients faster by enabling business professionals to research companies, executives and industries, over the web. For more information, please visit www.dnb.com.

Forward-Looking and Cautionary Statements

This press release, including, in particular, the section titled “Full Year 2012 Guidance,” contains projections of future results and other forward-looking statements that involve a number of trends, risks and uncertainties, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

The following important factors could cause actual results to differ materially from those projected in such forward-looking statements.

 

  •  

D&B relies significantly on third parties to support critical components of its business model in a continuous and high-quality manner, including third party data providers, strategic third party members in its D&B Worldwide Network, and third parties with whom it has significant outsourcing arrangements.

 

  •  

D&B’s ability to implement and derive the benefits of its Strategic Technology Investment program announced in February 2010 and to maintain sufficient investment in our technology infrastructure thereafter.

 

 

Page 9 of 12

 

 

           LOGO

 

  •  

Any consequences of the investigations of our China operations and risks associated with potential violations of the Foreign Corrupt Practices Act.

 

  •  

Demand for D&B’s products is subject to intense competition, changes in customer preferences and economic conditions which impact customer behavior.

 

  •  

D&B’s solutions and brand image are dependent upon the integrity and security of its global database and the continued availability thereof through the Internet and by other means, as well as our ability to protect key assets, such as our data centers.

 

  •  

D&B’s ability to secure its information technology infrastructure from cyber attack and unauthorized access.

 

  •  

D&B’s ability to maintain the integrity of its brand and reputation, which it believes are key assets and competitive advantages.

 

  •  

D&B’s ability to renew large contracts, the related revenue recognition and the timing thereof, or a shift in product mix, may impact its results of operations from period to period.

 

  •  

As a result of the macro-economic challenges currently affecting the global economy, D&B’s customers or vendors may experience problems with their earnings, cash flow, or both. This may cause its customers to delay, cancel or significantly decrease their purchases from D&B and impact their ability to pay amounts owed to D&B. In addition, D&B’s vendors may substantially increase their prices without notice. Such behavior may materially, adversely affect D&B’s earnings and cash flow. In addition, if economic conditions in the United States and other key markets deteriorate further or do not show improvement, D&B may experience material adverse impacts to its business, operating results and/or access to credit markets.

 

  •  

D&B’s results are subject to the effects of foreign economies, exchange rate fluctuations, legislative or regulatory requirements, such as the adoption of new or changes in accounting policies and practices, including pronouncements by the Financial Accounting Standards Board or other standard-setting bodies, and the implementation or modification of fees or taxes that it must pay to acquire, use, and/or redistribute data. Future laws or regulations with respect to the collection, compilation, use and/or publication of information and adverse publicity or litigation concerning the commercial use of such information, or changes in the rules governing the operation of the Internet, could have a material adverse effect on D&B’s business and financial results.

 

 

Page 10 of 12

 

 

           LOGO

 

  •  

D&B’s ability to acquire and successfully integrate other complementary businesses, products and technologies into its existing business, without significant disruption to its existing business or to its financial results.

 

  •  

The continued adherence by third party members of the D&B Worldwide Network, or other third parties who license and sell under the D&B name, to D&B’s quality standards, its brand and communication standards and to the terms and conditions of its commercial services arrangements.

 

  •  

The profitability of D&B’s international businesses depends on its ability to identify and execute on various initiatives, such as successfully managing its D&B Worldwide Network, complying with the Foreign Corrupt Practices Act and other anti-bribery and anti-corruption laws in all jurisdictions, and its ability to identify and contend with various challenges present in foreign markets, such as local competition and the availability of public records at no cost, or the adoption of new laws or regulations governing the collection, compilation, use and/or publication of information, particularly in emerging markets.

 

  •  

D&B’s future success requires that it attract and retain qualified personnel, including members of its sales force and technology teams, in regions throughout the world.

 

  •  

D&B’s ability to successfully implement its growth strategy requires that it successfully reduce its expense base through its Financial Flexibility initiatives, and reallocate certain of the expense-base reductions into initiatives that produce desired revenue growth.

 

  •  

D&B is involved in various legal proceedings, the outcomes of which are unknown and uncertain with respect to the impact on D&B’s cash flow and profitability. See the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and notes to the financial statements included therewith, for a more detailed description of these matters.

 

  •  

D&B’s ability to repurchase shares is subject to market conditions, including trading volume in its stock, and its ability to repurchase shares in accordance with applicable securities laws.

 

  •  

D&B’s projection for free cash flow is dependent upon its ability to generate revenue, its collection processes, customer payment patterns, the timing and volume of stock option exercises and the amount and timing of payments related to the tax and other matters and legal proceedings in which it is involved, as referenced above and as more fully described in the Company’s filings with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and notes to the financial statements included therewith.

 

 

Page 11 of 12

 

 

           LOGO

 

For a more detailed discussion of the trends, risks and uncertainties that may affect D&B’s operating and financial results and its ability to achieve the financial objectives discussed in this press release, readers should review the Company’s filings with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are available on its Web site at www.dnb.com and on the SEC’s Web site at www.sec.gov. D&B cautions that the foregoing list of important factors is not complete and except as otherwise required by federal securities laws does not undertake any obligation to update any forward-looking statement.

 

 

Page 12 of 12

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

   2012     2011     Fav (Unfav)     Fav (Unfav)     Fav (Unfav)     2012     2011     Fav (Unfav)     Fav (Unfav)     Fav (Unfav)  

Revenue:

                    

North America

   $ 308.3      $ 304.7        1 %      0 %      1 %    $ 872.8      $ 879.2        (1 %)      0 %      (1 %) 

Asia Pacific

     44.8        43.2        4 %      (5 %)      9 %      133.2        122.1        9 %      (3 %)      12 % 

Europe and Other International Markets

     60.1        62.9        (4 %)      (7 %)      3 %      175.8        179.0        (2 %)      (5 %)      3 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

International

     104.9        106.1        (1 %)      (6 %)      5 %      309.0        301.1        3 %      (3 %)      6 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Core Revenue

   $ 413.2      $ 410.8        1 %      (1 %)      2 %    $ 1,181.8      $ 1,180.3        0 %      (1 %)      1 % 

Divested and Other Business (1)

     —          28.6        N/M        N/M        N/M        18.1        79.5        (77 %)      1 %      (78 %) 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Revenue

   $ 413.2      $ 439.4        (6 %)      (1 %)      (5 %)    $ 1,199.9      $ 1,259.8        (5 %)      (1 %)      (4 %) 
 

 

 

    

 

 

          

 

 

    

 

 

        

Operating Income (Loss):

                    

North America

   $ 117.3      $ 112.1        5 %        $ 323.0      $ 324.0        0 %     

Asia Pacific (2)

     5.1        5.0        1 %          (0.4 )      10.7        N/M       

Europe and Other International Markets

     17.3        15.4        12 %          46.1        36.2        27 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

International

     22.4        20.4        10 %          45.7        46.9        (3 %)     

Corporate and Other (3)

     (30.0 )      (31.8 )      6 %          (95.3 )      (91.2 )      (5 %)     
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Operating Income

     109.7        100.7        9 %          273.4        279.7        (2 %)     

Interest Income

     0.2        0.4        (52 %)          0.5        1.3        (60 %)     

Interest Expense

     (9.5 )      (9.1 )      (4 %)          (27.8 )      (27.4 )      (1 %)     

Other Income (Expense) - Net (4)

     (15.4 )      (8.9 )      (73 %)          (8.8 )      (20.5 )      57 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Non-Operating Income (Expense) - Net

     (24.7 )      (17.6 )      (40 %)          (36.1 )      (46.6 )      23 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Income Before Provision for Income Taxes

     85.0        83.1        2 %          237.3        233.1        2 %     

Less: Provision for Income Taxes

     4.8        24.7        81 %          37.3        68.4        46 %     

Equity in Net Income (Loss) of Affiliates

     0.5        0.4        (7 %)          1.3        1.1        8 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income

     80.7        58.8        37 %          201.3        165.8        21 %     

Less: Net (Income) Loss Attributable to the Noncontrolling Interest (5)

     (1.1 )      (0.4 )      N/M            (1.8 )      1.0        N/M       
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income Attributable to D&B (6)

     79.6        58.4        36 %          199.5        166.8        20 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Less: Allocation to Participating Securities

     0.0        (0.1 )      79 %          (0.1 )      (0.2 )      72 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income Attributable to D&B Common Shareholders

     79.6        58.3        36 %          199.4        166.6        20 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Basic Earnings Per Share of Common Stock Attributable to D&B Common Shareholders

   $ 1.77      $ 1.19        49 %        $ 4.29      $ 3.38        27 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Diluted Earnings Per Share of Common Stock Attributable to D&B Common Shareholders (7)

   $ 1.76      $ 1.19        48 %        $ 4.26      $ 3.36        27 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Weighted Average Number of Shares Outstanding:

                    

Basic

     44.8        48.9        8 %          46.4        49.2        6 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Diluted

     45.2        49.1        8 %          46.8        49.6        6 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

AFX - After Effects of Foreign Exchange

BFX - Before Effects of Foreign Exchange

N/M - Not Meaningful

See Schedule 3 (Notes to Schedules), which is an integral part of the consolidated statement of operations.

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

Consolidated Statement of Operations (unaudited) - Before Non-Core Gains and Charges

 

    Quarter Ended
September 30,		     AFX
% Change		     Effects of
Foreign
Exchange		     BFX
% Change		     Year-To-Date
September 30,		     AFX
% Change		     Effects of
Foreign
Exchange		     BFX
% Change		  

Dollar amounts in millions, except per share data

   2012     2011     Fav (Unfav)     Fav (Unfav)     Fav (Unfav)     2012     2011     Fav (Unfav)     Fav (Unfav)     Fav (Unfav)  

Revenue:

                    

North America

   $ 308.3      $ 304.7        1 %      0 %      1 %    $ 872.8      $ 879.2        (1 %)      0 %      (1 %) 

Asia Pacific

     44.8        43.2        4 %      (5 %)      9 %      133.2        122.1        9 %      (3 %)      12 % 

Europe and Other International Markets

     60.1        62.9        (4 %)      (7 %)      3 %      175.8        179.0        (2 %)      (5 %)      3 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

International

     104.9        106.1        (1 %)      (6 %)      5 %      309.0        301.1        3 %      (3 %)      6 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Core Revenue

   $ 413.2      $ 410.8        1 %      (1 %)      2 %    $ 1,181.8      $ 1,180.3        0 %      (1 %)      1 % 

Divested and Other Business (1)

     —          28.6        N/M        N/M        N/M        18.1        79.5        (77 %)      1 %      (78 %) 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Revenue

   $ 413.2      $ 439.4        (6 %)      (1 %)      (5 %)    $ 1,199.9      $ 1,259.8        (5 %)      (1 %)      (4 %) 
 

 

 

    

 

 

          

 

 

    

 

 

        

Operating Income (Loss):

                    

North America

   $ 117.3      $ 112.1        5 %        $ 323.0      $ 324.0        0 %     

Asia Pacific (2)

     6.4        5.0        29 %          14.3        10.7        34 %     

Europe and Other International Markets

     17.3        15.4        12 %          46.1        36.2        27 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

International

     23.7        20.4        16 %          60.4        46.9        29 %     

Corporate and Other (3)

     (13.1 )      (14.0 )      7 %          (35.5 )      (40.6 )      13 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Operating Income

     127.9        118.5        8 %          347.9        330.3        5 %     

Interest Income

     0.2        0.4        (52 %)          0.5        1.3        (60 %)     

Interest Expense

     (9.5 )      (9.1 )      (4 %)          (27.8 )      (27.4 )      (1 %)     

Other Income (Expense) - Net (4)

     0.0        (0.9 )      99 %          0.2        (1.7 )      N/M       
 

 

 

    

 

 

          

 

 

    

 

 

        

Non-Operating Income (Expense) - Net

     (9.3 )      (9.6 )      3 %          (27.1 )      (27.8 )      3 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Income Before Provision for Income Taxes

     118.6        108.9        9 %          320.8        302.5        6 %     

Less: Provision for Income Taxes

     38.6        38.9        1 %          105.3        103.0        (2 %)     

Equity in Net Income (Loss) of Affiliates

     0.5        0.4        (7 %)          1.3        1.1        8 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income

     80.5        70.4        14 %          216.8        200.6        8 %     

Less: Net (Income) Loss Attributable to the Noncontrolling Interest (5)

     (1.1 )      (0.4 )      N/M            (1.7 )      1.0        N/M       
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income Attributable to D&B (5)

     79.4        70.0        14 %          215.1        201.6        7 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Less: Allocation to Participating Securities

     0.0        (0.1 )      82 %          0.0        (0.3 )      75 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Net Income Attributable to D&B Common Shareholders (6)

     79.4        69.9        14 %          215.1        201.3        7 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Basic Earnings Per Share of Common Stock Attributable to D&B Common Shareholders

   $ 1.77      $ 1.43        24 %        $ 4.63      $ 4.09        13 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Diluted Earnings Per Share of Common Stock Attributable to D&B Common Shareholders (7)

   $ 1.76      $ 1.42        24 %        $ 4.60      $ 4.06        13 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Weighted Average Number of Shares Outstanding:

                    

Basic

     44.8        48.9        8 %          46.4        49.2        6 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Diluted

     45.2        49.1        8 %          46.8        49.6        6 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

AFX - After Effects of Foreign Exchange

BFX - Before Effects of Foreign Exchange

N/M - Not Meaningful

See Schedule 3 (Notes to Schedules), which is an integral part of the consolidated statement of operations.

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

Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP Measures

 

(1) The following table reconciles Divested and Other Business included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		      Year-To-Date
September 30,		  

Amounts in millions

    2012      2011      2012      2011  

Divested and Other Business:

            

Purisma

    $ —         $ 1.4       $ —         $ 3.1   

AllBusiness

      —           0.9         —           3.1   

Small Supply Management Company in North America

      —           —           —           1.1   

Domestic Portion of Japan Operations

      —           15.9         12.7         45.4   

Market Research Business in China

      —           4.7         —           11.3   

Roadway China

      —           5.7         5.4         15.5   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Divested and Other Business

    $ —         $ 28.6       $ 18.1       $ 79.5   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2) The following table reconciles Asia Pacific Operating Income included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		      Year-To-Date
September 30,		  

Amounts in millions

    2012     2011      2012     2011  

Asia Pacific Operating Income - GAAP Results (Schedule 1)

    $ 5.1      $ 5.0       $ (0.4 )    $ 10.7   

Legal Fees and Other Shut-Down Costs Associated with Matters in China

      (1.3 )      —           (1.8 )      —     

Impairments Related to Matters in China

      —          —           (12.9 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Asia Pacific Operating Income - Before Non-Core Gains and Charges (Schedule 2)

    $ 6.4      $ 5.0       $ 14.3      $ 10.7   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

(3) The following table reconciles Corporate and Other expenses included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  

Amounts in millions

    2012     2011     2012     2011  

Corporate and Other - GAAP Results (Schedule 1)

    $ (30.0 )    $ (31.8 )    $ (95.3 )    $ (91.2 ) 

Restructuring Charges

      (4.8 )      (5.3 )      (23.2 )      (18.0 ) 

MaxCV

      (6.7 )      (12.5 )      (25.6 )      (32.6 ) 

Legal Fees and Other Shut-Down Costs Associated with Matters in China

      (5.4 )      —          (11.0 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Corporate and Other - Before Non-Core Gains and Charges (Schedule 2)

    $ (13.1 )    $ (14.0 )    $ (35.5 )    $ (40.6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(4) The following table reconciles Other Income (Expense)-Net included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  

Amounts in millions

    2012     2011     2012     2011  

Other Income (Expense)-Net - GAAP Results (Schedule 1)

    $ (15.4 )    $ (8.9 )    $ (8.8 )    $ (20.5 ) 

Effect of Legacy Tax Matters

      (15.4 )      0.3        (15.0 )      (7.4 ) 

Gain (Loss) on Sale of Businesses

      —          —          6.0        —     

Gain (Loss) on Investment

      —          (8.3 )      —          (11.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Other Income (Expense)-Net - Before Non-Core Gains and Charges (Schedule 2)

    $ —        $ (0.9 )    $ 0.2      $ (1.7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  

Amounts in millions

    2012     2011     2012     2011  

Total Pre-Tax Impacts:

         

Restructuring Charges

    $ (4.8 )    $ (5.3 )    $ (23.2 )    $ (18.0 ) 

MaxCV

      (6.7 )      (12.5 )      (25.6 )      (32.6 ) 

Legal Fees and Other Shut-Down Costs Associated with Matters in China

      (6.7 )      —          (12.8 )      —     

Impairments Related to Matters in China

      —          —          (12.9 )      —     

Effect of Legacy Tax Matters

      (15.4 )      0.3        (15.0 )      (7.4 ) 

Gain (Loss) on Sale of Businesses

      —          —          6.0        —     

Gain (Loss) on Investment

      —          (8.3 )      —          (11.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Pre-Tax Impacts

    $ (33.6 )    $ (25.8 )    $ (83.5 )    $ (69.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The Dun & Bradstreet Corporation   Schedule 3

Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP Measures

 

(5) The following table reconciles Net Income (Loss) Attributable to the Noncontrolling Interest Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  

Amounts in millions

    2012     2011     2012     2011  

Net Income (Loss) Attributable to the Noncontrolling Interest - GAAP Results (Schedule 1)

    $ (1.1 )    $ (0.4 )    $ (1.8 )    $ 1.0   

Minority Share of Gain on Sale of Business

      —          —          (0.9 )      —     

Impairments Related to Matters in China

      —          —          0.8        —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Income (Loss) Attributable to the Noncontrolling Interest - Before Non-Core Gains and Charges (Schedule 2)

    $ (1.1 )    $ (0.4 )    $ (1.7 )    $ 1.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(6) The following table reconciles Net Income Attributable to D&B included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  

Amounts in millions

    2012     2011     2012     2011  

Net Income Attributable to D&B - GAAP Results (Schedule 1)

    $ 79.6      $ 58.4      $ 199.5      $ 166.8   

Restructuring Charges

      (3.0 )      (3.6 )      (14.7 )      (11.8 ) 

MaxCV

      (5.1 )      (9.2 )      (18.3 )      (25.2 ) 

Legal Fees and Other Shut-Down Costs Associated with Matters in China

      (4.7 )      —          (8.6 )      —     

Impairments Related to Matters in China

      —          —          (12.1 )      —     

Gain (Loss) on Investment

      —          (7.3 )      —          (11.1 ) 

Effect of Legacy Tax Matters

      13.0        —          13.0        4.8   

Gain (Loss) on Sale of Businesses

      —          —          11.1        —     

Minority Share of Gain on Sale of Business

      —          —          (0.9 )      —     

Tax Benefit on a Loss on the Tax Basis of a Legal Entity

      —          8.5        14.9        8.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

After-Tax Impact

      0.2        (11.6 )      (15.6 )      (34.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Income Attributable to D&B - Before Non-Core Gains and Charges (Schedule 2)

    $ 79.4      $ 70.0      $ 215.1      $ 201.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(7) The following table reconciles Diluted Earnings Per Share Attributable to D&B included in Schedule 1 and Schedule 2:

 

     Quarter Ended
September 30,		     Year-To-Date
September 30,		  
     2012     2011     2012     2011  

Diluted EPS Attributable to D&B - GAAP Results (Schedule 1)

    $ 1.76      $ 1.19      $ 4.26      $ 3.36   

Restructuring Charges

      (0.07 )      (0.07 )      (0.32 )      (0.24 ) 

MaxCV

      (0.11 )      (0.19 )      (0.39 )      (0.51 ) 

Legal Fees and Other Shut-Down Costs Associated with Matters in China

      (0.11 )      —          (0.19 )      —     

Impairments Related to Matters in China

      —          —          (0.26 )      —     

Gain (Loss) on Investment

      —          (0.14 )      —          (0.22 ) 

Minority Share of Gain on Sale of Business

      —          —          (0.02 )      —     

Effect of Legacy Tax Matters

      0.29        —          0.28        0.10   

Gain (Loss) on Sale of Businesses

      —          —          0.24        —     

Tax Benefit on a Loss on the Tax Basis of a Legal Entity

      —          0.17        0.32        0.17   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted EPS Attributable to D&B - Before Non-Core Gains and Charges (Schedule 2)

    $ 1.76      $ 1.42      $ 4.60      $ 4.06   
  

 

 

    

 

 

    

 

 

    

 

 

  

N/M - Not Meaningful

The following defines the non-GAAP measures used to evaluate performance:

 

* Total revenue excluding the revenue of divested and shut-down businesses is referred to as “core revenue.” Core revenue includes the revenue from acquired businesses from the date of acquisition
* Core revenue growth, excluding the effects of foreign exchange, is referred to as “core revenue growth before the effects of foreign exchange.” We also separately, from time to time, analyze core revenue growth before the effects of foreign exchange among two components, “organic core revenue growth” and “core revenue growth from acquisitions”
* Results (such as operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) exclude Restructuring Charges (whether recurring or non-recurring) and certain other items that we consider do not reflect our underlying business performance. We refer to these Restructuring Charges and other items as “non-core gains and (charges)”
* Net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles is referred to as “free cash flow”

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 GAAP Financial Data (unaudited)   

 

    Quarter
Ended
September 30,		           Effects of           Year-To-Date
September 30,		           Effects of        
      AFX     Foreign     BFX       AFX     Foreign     BFX  
      % Change     Exchange     % Change       % Change     Exchange     % Change  

Amounts in millions

   2012     2011     Fav/(Unfav)     Fav/(Unfav)     Fav/(Unfav)     2012     2011     Fav/(Unfav)     Fav/(Unfav)     Fav/(Unfav)  

Geographic and Customer Solution Set Revenue:

                    

North America:

                    

Risk Management Solutions

   $ 178.8      $ 183.5        (3 )%      (1 )%      (2 )%    $ 518.5      $ 539.8        (4 )%      0 %      (4 )% 

Sales & Marketing Solutions

     100.5        91.6        10 %      0 %      10 %      267.3        253.1        6 %      0 %      6 % 

Internet Solutions

     29.0        29.6        (3 )%      0 %      (3 )%      87.0        86.3        1 %      0 %      1 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Subtotal Core Revenue

     308.3        304.7        1 %      0 %      1 %      872.8        879.2        (1 )%      0 %      (1 )% 

Divested and Other Business 1

     —          2.3        N/M        N/M        N/M        —          7.3        N/M        N/M        N/M   
 

 

 

    

 

 

          

 

 

    

 

 

        

Total North America Revenue

     308.3        307.0        0 %      (1 )%      1 %      872.8        886.5        (2 )%      0 %      (2 )% 

Asia Pacific:

                    

Risk Management Solutions

   $ 38.1      $ 38.9        (2 )%      (5 )%      3 %    $ 112.2      $ 108.0        4 %      (2 )%      6 % 

Sales & Marketing Solutions

     6.5        4.1        58 %      (15 )%      73 %      20.5        13.4        53 %      (10 )%      63 % 

Internet Solutions

     0.2        0.2        (18 )%      (15 )%      (3 )%      0.5        0.7        (12 )%      (11 )%      (1 )% 
 

 

 

    

 

 

          

 

 

    

 

 

        

Subtotal Core Revenue

     44.8        43.2        4 %      (5 )%      9 %      133.2        122.1        9 %      (3 )%      12 % 

Divested and Other Business 1

     —          26.3        N/M        N/M        N/M        18.1        72.2        (75 )%      1 %      (76 )% 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Asia Pacific Revenue

     44.8        69.5        (36 )%      (2 )%      (34 )%      151.3        194.3        (22 )%      0 %      (22 )% 

Europe and Other International Markets:

                    

Risk Management Solutions

   $ 48.9      $ 50.6        (3 )%      (7 )%      4 %    $ 145.1      $ 147.8        (2 )%      (5 )%      3 % 

Sales & Marketing Solutions

     10.5        11.6        (10 )%      (5 )%      (5 )%      28.7        29.4        (2 )%      (3 )%      1 % 

Internet Solutions

     0.7        0.7        1 %      (4 )%      5 %      2.0        1.8        9 %      (3 )%      12 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Subtotal Core Revenue

     60.1        62.9        (4 )%      (7 )%      3 %      175.8        179.0        (2 )%      (5 )%      3 % 

Divested and Other Business 1

     —          —          0 %      0 %      0 %      —          —          0 %      0 %      0 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Europe and Other International Markets Revenue

     60.1        62.9        (4 )%      (7 )%      3 %      175.8        179.0        (2 )%      (5 )%      3 % 

International

                    

Risk Management Solutions

   $ 87.0      $ 89.5        (3 )%      (7 )%      4 %    $ 257.3      $ 255.8        1 %      (3 )%      4 % 

Sales & Marketing Solutions

     17.0        15.7        8 %      (7 )%      15 %      49.2        42.8        15 %      (5 )%      20 % 

Internet Solutions

     0.9        0.9        (4 )%      (7 )%      3 %      2.5        2.5        3 %      (5 )%      8 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Subtotal Core Revenue

     104.9        106.1        (1 )%      (6 )%      5 %      309.0        301.1        3 %      (3 )%      6 % 

Divested and Other Business 1

     —          26.3        N/M        N/M        N/M        18.1        72.2        (75 )%      1 %      (76 )% 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total International Revenue

     104.9        132.4        (21 )%      (4 )%      (17 )%      327.1        373.3        (12 )%      (1 )%      (11 )% 

Total Corporation:

                    

Risk Management Solutions

   $ 265.8      $ 273.0        (3 )%      (2 )%      (1 )%    $ 775.8      $ 795.6        (3 )%      (2 )%      (1 )% 

Sales & Marketing Solutions

     117.5        107.3        10 %      (1 )%      11 %      316.5        295.9        7 %      (1 )%      8 % 

Internet Solutions

     29.9        30.5        (3 )%      (1 )%      (2 )%      89.5        88.8        1 %      0 %      1 % 
 

 

 

    

 

 

          

 

 

    

 

 

        

Subtotal Core Revenue

     413.2        410.8        1 %      (1 )%      2 %      1,181.8        1,180.3        0 %      (1 )%      1 % 

Divested and Other Business 1

     —          28.6        N/M        N/M        N/M        18.1        79.5        (77 )%      1 %      (78 )% 
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Corporation Revenue

     413.2        439.4        (6 )%      (1 )%      (5 )%      1,199.9        1,259.8        (5 )%      (1 )%      (4 )% 
 

 

 

    

 

 

          

 

 

    

 

 

        

Operating Costs:

                    

Operating Expenses

   $ 124.2      $ 150.2        17 %        $ 395.2      $ 431.1        8 %     

Selling and Administrative Expenses

     154.5        162.6        5 %          448.2        470.4        5 %     

Depreciation and Amortization

     20.0        20.6        3 %          59.9        60.6        1 %     

Restructuring Expense

     4.8        5.3        8 %          23.2        18.0        (29 )%     
 

 

 

    

 

 

          

 

 

    

 

 

        

Total Operating Costs 2

   $ 303.5      $ 338.7        10 %        $ 926.5      $ 980.1        6 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Capital Expenditures 3

   $ 1.0      $ 1.0        0 %        $ 2.1      $ 3.0        30 %     
 

 

 

    

 

 

          

 

 

    

 

 

        

Additions to Computer Software & Other Intangibles 3

   $ 16.7      $ 12.7        (32 )%        $ 49.8      $ 29.7        (68 )%     
 

 

 

    

 

 

          

 

 

    

 

 

        

 

     Quarter Ended  

Amounts in millions

   Sep 30, 2012     Jun 30, 2012     Mar 31, 2012     Dec 31, 2011     Sep 30, 2011     Jun 30, 2011     Mar 31, 2011  

Net Debt Position:

              

Cash and Cash Equivalents

   $ 137.0      $ 118.6      $ 117.7      $ 84.4      $ 89.5      $ 83.1      $ 83.6   

Short-Term Debt

     (400.2 )      (400.6 )      (1.0 )      (1.1 )      (188.6 )      (160.9 )      (2.1 ) 

Long-Term Debt

     (623.9 )      (613.0 )      (841.8 )      (963.9 )      (704.6 )      (700.6 )      (888.6 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Debt

   $ (887.1 )    $ (895.0 )    $ (725.1 )    $ (880.6 )    $ (803.7 )    $ (778.4 )    $ (807.1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Dun & Bradstreet Corporation      Schedule 4   
Supplemental GAAP Financial Data (unaudited)   

 

     Year-To-Date  

Amounts in millions

    Sep 30, 2012      Sep 30, 2011      % Change
Fav/(Unfav)		  

Free Cash Flow:

         

Net Cash Provided By Operating Activities (GAAP Results)

    $ 307.1       $ 271.2         13 % 

Less:

         

Capital Expenditures (GAAP Results) 3

      2.1         3.0         30 % 

Additions to Computer Software & Other Intangibles (GAAP Results) 3

      49.8         29.7         (68 )% 
  

 

 

     

 

 

     

Free Cash Flow

    $ 255.2       $ 238.5         7 % 

Legacy Tax Matters (Refund) Payment

      —           (7.6 )       N/M   
  

 

 

     

 

 

     

Free Cash Flow Excluding Legacy Tax Matters

    $ 255.2       $ 230.9         11 % 
  

 

 

     

 

 

     
     Year-To-Date  

Amounts in millions

    Sep 30, 2012      Sep 30, 2011      % Change
Fav/(Unfav)		  

Net Cash Provided By Operating Activities excluding Legacy Tax Matters:

         

Net Cash Provided By Operating Activities (GAAP Results)

    $ 307.1       $ 271.2         13 % 

Legacy Tax Matters (Refund) Payment

      —           (7.6 )       N/M   
  

 

 

     

 

 

     

Net Cash Provided By Operating Activities Excluding Legacy Tax Matters

    $ 307.1       $ 263.6         17 % 
  

 

 

     

 

 

     

Notes:

 

         Quarter Ended
September  30,		      Year-To-Date
September 30,		  
         2012      2011      2012      2011  
1  

Divested and Other Business:

            
 

North America:

            
 

Risk Management Solutions

    $ 0.0       $ 0.0       $ 0.0       $ 1.1   
 

Sales & Marketing Solutions

      0.0         1.4         0.0         3.1   
 

Internet Solutions

      0.0         0.9         0.0         3.1   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Divested and Other Business

    $ 0.0       $ 2.3       $ 0.0       $ 7.3   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Asia Pacific:

            
 

Risk Management Solutions

    $ 0.0       $ 10.1       $ 8.7       $ 27.3   
 

Sales & Marketing Solutions

      0.0         16.2         9.4         44.9   
 

Internet Solutions

      0.0         0.0         0.0         0.0   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Divested and Other Business

    $ 0.0       $ 26.3       $ 18.1       $ 72.2   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Europe and Other International Markets:

            
 

Risk Management Solutions

    $ 0.0       $ 0.0       $ 0.0       $ 0.0   
 

Sales & Marketing Solutions

      0.0         0.0         0.0         0.0   
 

Internet Solutions

      0.0         0.0         0.0         0.0   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Divested and Other Business

    $ 0.0       $ 0.0       $ 0.0       $ 0.0   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Corporation:

            
 

Risk Management Solutions

    $ 0.0       $ 10.1       $ 8.7       $ 28.4   
 

Sales & Marketing Solutions

      0.0         17.6         9.4         48.0   
 

Internet Solutions

      0.0         0.9         0.0         3.1   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Divested and Other Business

    $ 0.0       $ 28.6       $ 18.1       $ 79.5   
    

 

 

     

 

 

     

 

 

     

 

 

  
2  

MaxCV:

            
 

Operating Expenses

    $ 6.6       $ 9.6       $ 26.8       $ 27.9   
 

Selling and Administrative Expenses

      0.0         2.0         (1.8 )       2.4   
 

Depreciation and Amortization

      0.1         0.9         0.6         2.3   
    

 

 

     

 

 

     

 

 

     

 

 

  
 

Total Operating Costs

    $ 6.7       $ 12.5       $ 25.6       $ 32.6   
    

 

 

     

 

 

     

 

 

     

 

 

  
3  

MaxCV:

            
 

Capital Expenditures

    $ 0.0       $ 0.0       $ 0.0       $ 0.9   
 

Additions to Computer Software & Other Intangibles

    $ 6.1       $ 4.3       $ 22.4       $ 9.7   

AFX - After Effects of Foreign Exchange

BFX - Before Effects of Foreign Exchange

N/M - Not Meaningful

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
GAAP Revenue Reconciliation and Detail (unaudited)   

 

    Quarter Ended
September 30, 2012 vs. 2011		     Year-To-Date
September 30, 2012 vs. 2011		  
    AFX
% Change
Fav/
(Unfav)		     Effects of
Foreign
Exchange		     BFX
% Change
Fav/
(Unfav)		     Traditional/VAPs as a
% of Total Customer
Solution  Sets/Core		     AFX
% Change
Fav/
(Unfav)		     Effects of
Foreign
Exchange		     BFX
% Change
Fav/
(Unfav)		     Traditional/VAPs as a
% of Total Customer
Solution  Sets/Core		  
          2012
%  Product
Line/
Core		     2011
%  Product
Line/
Core		           2012
%  Product
Line/
Core		     2011
%  Product
Line/
Core		  

Revenue:

                            

North America:

                            

Risk Management Solutions:

                            

Traditional

     (2 )%      0 %      (2 )%      68 %      39 %      68 %      41 %      (3 )%      0 %      (3 )%      70 %      42 %      69 %      42 % 

VAPs

     1 %      0 %      1 %      24 %      14 %      23 %      14 %      (6 )%      0 %      (6 )%      22 %      13 %      23 %      14 % 

Supply Management Solutions

     (14 )%      0 %      (14 )%      8 %      5 %      9 %      5 %      (9 )%      0 %      (9 )%      8 %      5 %      8 %      5 % 

Total Risk Management Solutions

     (3 )%      (1 )%      (2 )%        58 %        60 %      (4 )%      0 %      (4 )%        60 %        61 % 

Sales & Marketing Solutions:

                            

Traditional

     (4 )%      0 %      (4 )%      26 %      9 %      29 %      9 %      (11 )%      0 %      (11 )%      24 %      7 %      28 %      8 % 

VAPs

     16 %      0 %      16 %      74 %      24 %      71 %      21 %      12 %      0 %      12 %      76 %      23 %      72 %      21 % 

Total Sales & Marketing Solutions

     10 %      0 %      10 %        33 %        30 %      6 %      0 %      6 %        30 %        29 % 

Internet Solutions

     (3 )%      0 %      (3 )%        9 %        10 %      1 %      0 %      1 %        10 %        10 % 

Core Revenue

     1 %      0 %      1 %              (1 )%      0 %      (1 )%         

Divested and Other Business

     N/M        N/M        N/M                N/M        N/M        N/M           

Total North America

     0 %      (1 )%      1 %              (2 )%      0 %      (2 )%         

Asia Pacific:

                            

Risk Management Solutions:

                            

Traditional

     (5 )%      (4 )%      (1 )%      91 %      77 %      94 %      84 %      3 %      (2 )%      5 %      90 %      76 %      91 %      81 % 

VAPs

     46 %      (2 )%      48 %      9 %      8 %      6 %      6 %      15 %      0 %      15 %      10 %      8 %      9 %      7 % 

Supply Management Solutions

     0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 %      0 % 

Total Risk Management Solutions

     (2 )%      (5 )%      3 %        85 %        90 %      4 %      (2 )%      6 %        84 %        88 % 

Sales & Marketing Solutions:

                            

Traditional

     47 %      (19 )%      66 %      63 %      9 %      68 %      7 %      37 %      (12 )%      49 %      66 %      10 %      73 %      8 % 

VAPs

     80 %      (7 )%      87 %      37 %      6 %      32 %      3 %      96 %      (4 )%      100 %      34 %      6 %      27 %      3 % 

Total Sales & Marketing Solutions

     58 %      (15 )%      73 %        15 %        10 %      53 %      (10 )%      63 %        16 %        11 % 

Internet Solutions

     (18 )%      (15 )%      (3 )%        0 %        0 %      (12 )%      (11 )%      (1 )%        0 %        1 % 

Core Revenue

     4 %      (5 )%      9 %              9 %      (3 )%      12 %         

Divested and Other Business

     N/M        N/M        N/M                (75 )%      1 %      (76 )%         

Total Asia Pacific

     (36 )%      (2 )%      (34 )%              (22 )%      0 %      (22 )%         

Europe and Other International Markets:

                            

Risk Management Solutions:

                            

Traditional

     (6 )%      (8 )%      2 %      81 %      66 %      83 %      67 %      (5 )%      (5 )%      0 %      80 %      66 %      82 %      68 % 

VAPs

     7 %      (7 )%      14 %      17 %      14 %      15 %      12 %      10 %      (4 )%      14 %      18 %      15 %      16 %      13 % 

Supply Management Solutions

     16 %      (19 )%      35 %      2 %      2 %      2 %      1 %      29 %      (15 )%      44 %      2 %      2 %      2 %      1 % 

Total Risk Management Solutions

     (3 )%      (7 )%      4 %        82 %        80 %      (2 )%      (5 )%      3 %        83 %        82 % 

Sales & Marketing Solutions:

                            

Traditional

     (20 )%      (4 )%      (16 )%      64 %      11 %      72 %      14 %      (6 )%      (3 )%      (3 )%      63 %      10 %      66 %      11 % 

VAPs

     17 %      (9 )%      26 %      36 %      6 %      28 %      5 %      5 %      (5 )%      10 %      37 %      6 %      34 %      6 % 

Total Sales & Marketing Solutions

     (10 )%      (5 )%      (5 )%        17 %        19 %      (2 )%      (3 )%      1 %        16 %        17 % 

Internet Solutions

     1 %      (4 )%      5 %        1 %        1 %      9 %      (3 )%      12 %        1 %        1 % 

Core Revenue

     (4 )%      (7 )%      3 %              (2 )%      (5 )%      3 %         

Divested and Other Business

     0 %      0 %      0 %              0 %      0 %      0 %         

Total Europe and Other International Markets

     (4 )%      (7 )%      3 %              (2 )%      (5 )%      3 %         

International:

                            

Risk Management Solutions:

                            

Traditional

     (5 )%      (6 )%      1 %      85 %      71 %      88 %      74 %      (1 )%      (3 )%      2 %      85 %      70 %      86 %      73 % 

VAPs

     16 %      (7 )%      23 %      13 %      11 %      11 %      9 %      11 %      (3 )%      14 %      14 %      12 %      13 %      11 % 

Supply Management Solutions

     16 %      (19 )%      35 %      2 %      1 %      1 %      1 %      29 %      (15 )%      44 %      1 %      1 %      1 %      1 % 

Total Risk Management Solutions

     (3 )%      (7 )%      4 %        83 %        84 %      1 %      (3 )%      4 %        83 %        85 % 

Sales & Marketing Solutions:

                            

Traditional

     (3 )%      (7 )%      4 %      64 %      10 %      71 %      11 %      8 %      (6 )%      14 %      64 %      10 %      68 %      10 % 

VAPs

     36 %      (8 )%      44 %      36 %      6 %      29 %      4 %      29 %      (5 )%      34 %      36 %      6 %      32 %      4 % 

Total Sales & Marketing Solutions

     8 %      (7 )%      15 %        16 %        15 %      15 %      (5 )%      20 %        16 %        14 % 

Internet Solutions

     (4 )%      (7 )%      3 %        1 %        1 %      3 %      (5 )%      8 %        1 %        1 % 

Core Revenue

     (1 )%      (6 )%      5 %              3 %      (3 )%      6 %         

Divested and Other Business

     N/M        N/M        N/M                (75 )%      1 %      (76 )%         

Total International

     (21 )%      (4 )%      (17 )%              (12 )%      (1 )%      (11 )%         

Total Corporation:

                            

Risk Management Solutions:

                            

Traditional

     (3 )%      (2 )%      (1 )%      74 %      48 %      74 %      50 %      (2 )%      (1 )%      (1 )%      75 %      49 %      75 %      50 % 

VAPs

     4 %      (1 )%      5 %      21 %      13 %      20 %      13 %      (2 )%      0 %      (2 )%      19 %      13 %      19 %      13 % 

Supply Management Solutions

     (13 )%      (1 )%      (12 )%      5 %      4 %      6 %      4 %      (7 )%      0 %      (7 )%      6 %      4 %      6 %      4 % 

Total Risk Management Solutions

     (3 )%      (2 )%      (1 )%        65 %        67 %      (3 )%      (2 )%      (1 )%        66 %        67 % 

Sales & Marketing Solutions:

                            

Traditional

     (4 )%      (2 )%      (2 )%      31 %      9 %      36 %      9 %      (5 )%      (1 )%      (4 )%      30 %      8 %      34 %      9 % 

VAPs

     17 %      0 %      17 %      69 %      19 %      64 %      17 %      13 %      (1 )%      14 %      70 %      19 %      66 %      16 % 

Total Sales & Marketing Solutions

     10 %      (1 )%      11 %        28 %        26 %      7 %      (1 )%      8 %        27 %        25 % 

Internet Solutions

     (3 )%      (1 )%      (2 )%        7 %        7 %      1 %      0 %      1 %        7 %        8 % 

Core Revenue

     1 %      (1 )%      2 %              0 %      (1 )%      1 %         

Divested and Other Business

     N/M        N/M        N/M                (77 )%      1 %      (78 )%         

Total Revenue

     (6 )%      (1 )%      (5 )%              (5 )%      (1 )%      (4 )%         

AFX - After Effects of Foreign Exchange

BFX - Before Effects of Foreign Exchange

N/M - Not Meaningful

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

 

     Quarter Ended  

% of Core Product Line

    Sep 30,
2012		     Jun 30,
2012		     Mar 31,
2012		     Dec 31,
2011		     Sep 30,
2011		     Jun 30,
2011		     Mar 31,
2011		     Dec 31,
2010		  

North America Risk Management Solutions

                 

Subscription 1

      68 %      72 %      73 %      66 %      69 %      72 %      72 %      67 % 

Non-Subscription 1

      32 %      28 %      27 %      34 %      31 %      28 %      28 %      33 % 

North America Risk Management Solutions

                 

DNBi 2

      60 %      63 %      63 %      57 %      59 %      61 %      60 %      57 % 

Non-DNBi 2

      40 %      37 %      37 %      43 %      41 %      39 %      40 %      43 % 

Notes:

 

1 We define Subscription and Non-Subscription revenue as follows:

 

  •  

Subscription revenue represents contracts that allow customers unlimited use within predefined ranges, subject to certain conditions. In these instances, we recognize revenue ratably over the term of the contract, which is generally one year.

 

  •  

Non-Subscription revenue represents all other revenue streams.

 

2 We define DNBi and Non-DNBi revenue as follows:

 

  •  

DNBi, is our interactive, customizable online application that offers our customers real time access to our most complete and up-to-date global DUNSRight information, comprehensive monitoring and portfolio analysis.

 

  •  

Non-DNBi revenue represents all other revenue streams.

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.

DUN & BRADSTREET CORP/NW Reports

Also read