Market Overview

Dun & Bradstreet Reports Second Quarter 2018 Results

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Dun & Bradstreet (NYSE:DNB) today reported results for the second
quarter ended June 30, 2018.

Second Quarter 2018 Highlights

  • Revenue:
    • GAAP revenue of $439.6 million, up 8% year over year both after
      and before the effect of foreign exchange.
    • As Adjusted revenue of $394.4 million, down 3% year over year
      after the effect of foreign exchange (down 4% before the effect of
      foreign exchange).
    • Organic revenue decreased 4% year over year. As previously
      mentioned, timing shifts related to several large contracts
      impacted growth by 3%.
  • Operating Income:
    • GAAP operating income of $112.2 million, up 46% year over year.
    • As Adjusted operating income of $80.4 million, down 11% year over
      year. The decline in operating income was due to the timing shifts
      of several large contracts referenced above.
  • Diluted Earnings per Share ("EPS"):
    • GAAP diluted EPS of $2.50 compared to $1.22 for the second quarter
      of 2017.
    • As Adjusted diluted EPS of $1.40, flat year over year.

GAAP results are based on Accounting Standards Codification ASC 606,
Revenue from Contracts with Customers ("ASC 606") basis for 2018 and on
Accounting Standards Codification ASC 605, Revenue Recognition ("ASC
605") basis for 2017. As Adjusted and organic numbers on ASC 605 basis
for both periods.

See attached Schedules 4 and 5 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 June 30, 2018 was $592.1 million
(based on ASC 606 standards). Under ASC 605 standards, deferred revenue
as of June 30, 2018 was $645.3 million, flat year over year; Americas
was $571.9 million, flat year over year and Non-Americas was $73.4
million, flat year over year. After adjusting for the effect of foreign
exchange and acquisitions and dispositions, total Company deferred
revenue (based on ASC 605 standards) was down 1%, Americas was flat and
Non-Americas was down 3%, each as compared to June 30, 2017.

Second Quarter 2018 Segment Results

Americas

  • GAAP revenue of $367.9 million was up 10% year over year both after
    and before the effect of foreign exchange; As Adjusted revenue of
    $320.9 million was down 5% year over year both after and before the
    effect of foreign exchange;
  • GAAP operating income of $126.3 million was up 62% year over year; As
    Adjusted operating income of $80.7 million was down 12% year over year.

Non-Americas

  • GAAP revenue of $71.7 million was down 1% year over year after the
    effect of foreign exchange (down 4% before the effect of foreign
    exchange); As Adjusted revenue of $73.5 million was up 3% year over
    year after the effect of foreign exchange (down 1% before the effect
    of foreign exchange);
  • GAAP operating income of $18.4 million was down 9% year over year; As
    Adjusted operating income of $20.7 million was up 3% year over year.

See attached Schedules 4 and 5 for additional detail. Additional
financial information can be found within the Company's posted financial
model, available at http://investor.dnb.com/financial-information/financial-model.

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 impact of ASC
606; 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, effect of significant changes in tax laws and material tax and
legal settlements); acquisition and divestiture-related fees (such as
costs for bankers, legal fees, diligence costs, retention payments, and
contingent consideration adjustments); and acquisition-related
intangible amortization expense. A recurring component excluded from our
"As Adjusted" results 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
the estimated revenue contribution from acquired businesses for one year
from the date of the acquisition and 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
annual 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, share 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 4 and 5 attached to this press
release.

Second Quarter 2018 Teleconference Update

Dun & Bradstreet also announced today that it entered into a definitive
agreement to be acquired by an affiliate of CC Capital. A copy of that
press release can be found on Dun & Bradstreet's Investor Relations
website at http://investor.dnb.com.
In light of the announced transaction, the earnings conference call
scheduled for Thursday, August 9, 2018 at 8 a.m. ET. will no longer take
place.

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

About Dun & Bradstreet

Dun & Bradstreet helps companies around the world improve their business
performance. The global leader in commercial data and analytics, we
glean insight from data to enable our customers to connect with the
prospects, suppliers, clients and partners that matter most. Since 1841,
companies of every size rely on Dun & Bradstreet to help them manage
risk and reveal opportunity.

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) risks
and uncertainties related to the proposed merger as contemplated by that
certain Agreement and Plan of Merger entered into by the Company on
August 8, 2018 (the "Merger"), including, but not limited to, the
occurrence of any event, change or other circumstance that could give
rise to the termination of the merger agreement; the failure of the
parties to satisfy conditions to completion of the proposed Merger,
including the failure of the Company's stockholders to approve the
proposed Merger or the failure of the parties to obtain required
regulatory approvals; the risk that regulatory or other approvals are
delayed or are subject to terms and conditions that are not anticipated;
(ii) reliance on third parties to support critical components of our
business model; (iii) our ability to protect our information technology
infrastructure against cyber attack and unauthorized access; (iv) risks
associated with potential violations of the Foreign Corrupt Practices
Act and similar laws; (v) customer demand for our products; (vi) risks
associated with recent changes in our executive management team and
Board of Directors; (vii) the integrity and security of our global
databases and data centers; (viii) our ability to maintain the integrity
of our brand and reputation; (ix) our ability to renew large contracts
and the related revenue recognition and timing thereof; (x) the impact
of macro-economic challenges on our customers and vendors; (xi) future
laws or regulations with respect to the collection, compilation,
storage, use, cross-border transfer, publication and/or sale of
information and adverse publicity or litigation concerning the
commercial use of such information; (xii) our ability to acquire and
successfully integrate other businesses, products and technologies;
(xiii) 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; (xiv) 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, publish
and/or sell data; (xv) the impact of the announcement of, or failure to
complete, the proposed merger on our relationships with employees,
customers, suppliers, vendors and other business partners; and potential
or actual litigation; and (xvi) the other factors described under the
headings "Risk Factors," "Management's Discussion and Analysis of
Financial Condition and Results of Operations," "Legal Proceedings" and
elsewhere in this Quarterly Report on Form 10-Q, our Annual Report on
Form 10-K, our other 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.

Additional Information and Where to Find It

We will file with the SEC and mail to our stockholders a proxy statement
in connection with the proposed merger. We urge investors and security
holders to read the proxy statement when it becomes available because it
will contain important information regarding the proposed merger. You
may obtain a free copy of the proxy statement (when available) and other
related documents filed by the Company with the SEC at the SEC's website
at www.sec.gov.
You also may obtain the proxy statement (when it is available) and other
documents filed by us with the SEC relating to the proposed merger for
free by accessing our website at www.dnb.com
by clicking on the link for "Investor Relations", then clicking on the
link for "Financial Information" and selecting "Annual Reports and
Proxies."

Participants in the Solicitation

The Company and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the Company's
stockholders in connection with the proposed merger. Information
regarding the interests of these directors and executive officers in the
proposed merger will be included in the proxy statement when it is filed
with the SEC. You may find additional information about the Company's
directors and executive officers in our proxy statement for its 2018
Annual Meeting of Stockholders, which was filed with the SEC on March
27, 2018. You can obtain free copies of these documents from the Company
using the contact information above.

               
The Dun & Bradstreet Corporation Schedule 1
Consolidated Statement of Operations (unaudited) - GAAP Results
(ASC 606)
     
 
Effects of Effects of
Quarter Ended AFX Foreign BFX Year-To-Date AFX Foreign BFX
June 30, % Change Exchange % Change June 30, % Change Exchange % Change
Dollar amounts in millions, except per share data 2018 2017 Fav (Unfav) Fav (Unfav) Fav (Unfav) 2018 2017 Fav (Unfav) Fav (Unfav) Fav (Unfav)
 
Revenue:
 
Americas (1) $ 367.9 $ 333.6 10 % 0.1 % 10 % $ 713.6 $ 648.1 10 % 0.1 % 10 %
Non-Americas (2) 71.7 72.1 (1 )% 3.8 % (4 )% 144.2 139.1 4 % 5.2 % (1 )%
         
Total Revenue (3) $ 439.6   $ 405.7   8 % 0.8 % 8 % $ 857.8   $ 787.2   9 % 1.0 % 8 %
 
Operating Income (Loss):
 
Americas (4) $ 126.3 $ 77.8 62 % $ 232.7 $ 135.4 72 %
Non-Americas (5) 18.4 20.2 (9 )% 38.8 38.4 1 %
 
Corporate and Other (6) (32.5 ) (21.3 ) (53 )% (64.6 ) (55.8 ) (16 )%
         
Total Operating Income (7) 112.2 76.7 46 % 206.9 118.0 75 %
 
Interest Income 0.3 0.4 (6 )% 1.1 0.8 51 %
Interest Expense (13.2 ) (15.1 ) 12 % (27.3 ) (29.7 ) 8 %
Other Income (Expense) - Net (10) 1.2 1.5 (14 )% 0.7 (0.7 ) N/M
         
Non-Operating Income (Expense) - Net (11) (11.7 ) (13.2 ) 12 % (25.5 ) (29.6 ) 14 %
         
Income (Loss) Before Provision for Income Taxes 100.5 63.5 58 % 181.4 88.4 N/M
 
Less: Provision for Income Taxes (12) 6.3 18.7 66 % 22.2 26.9 17 %
Equity in Net Income (Loss) of Affiliates 0.5 1.9 (72 )% 1.1 2.7 (60 )%
         
Net Income (Loss) From Continuing Operations 94.7 46.7 N/M 160.3 64.2 N/M
 
Less: Net (Income) Loss Attributable to the Noncontrolling Interest (1.7 ) (1.6 ) (7 )% (3.4 ) (2.8 ) (22 )%
         
Net Income (Loss) From Continuing Operations Attributable to Dun &
Bradstreet
93.0 45.1 N/M 156.9 61.4 N/M
 
Loss on Disposal of Business, Net of Tax Impact - - N/M - (0.8 ) N/M
       
Income (Loss) from Discontinued Operations, Net of Income Taxes - - N/M - (0.8 ) N/M
         
Net Income (Loss) Attributable to Dun & Bradstreet (8) $ 93.0   $ 45.1   N/M $ 156.9   $ 60.6   N/M
 
Basic Earnings (Loss) Per Share:
From Continuing Operations $ 2.51 $ 1.22 N/M $ 4.23 $ 1.66 N/M
From Discontinued Operations - - N/M - (0.02 ) N/M
       
Basic Earnings (Loss) Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders

$ 2.51   $ 1.22   N/M $ 4.23   $ 1.64   N/M
 
Diluted Earnings (Loss) Per Share:
From Continuing Operations $ 2.50 $ 1.22 N/M $ 4.21 $ 1.65 N/M
From Discontinued Operations - - N/M - (0.02 ) N/M
       
Diluted Earnings (Loss) Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders (9)

$ 2.50   $ 1.22   N/M $ 4.21   $ 1.63   N/M
         
Weighted Average Number of Shares Outstanding:
Basic   37.1     36.9   0 %   37.1     36.9   0 %
Diluted   37.2     37.1   0 %   37.3     37.1   0 %
 
 
Operating Margins (Calculated on Total Revenue)
 
Americas 34.3 % 23.3 % 32.6 % 20.9 %
Non-Americas 25.6 % 27.9 % 26.9 % 27.6 %
Total Company   25.5 %   18.9 %   24.1 %   15.0 %
 
Effective Tax Rate   6.3 %   29.4 %   12.3 %   30.4 %
 
 
AFX - After Effects of Foreign Exchange BFX - Before Effects of
Foreign Exchange N/M - Not Meaningful
* The Company has adopted Accounting Standards Codification ASC 606,
Revenue from Contracts with Customers ("ASC 606") for 2018 using
the modified retrospective transition method. As required by the new
standard, the Company will report its financial results under both
ASC 606
and the previous standard ASC 605, Revenue Recognition ("ASC 605")
for the 2018 transition year. As such 2018 GAAP results are presented
on an ASC 606 basis and 2017 is presented on an ASC 605 basis.
 
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) - (ASC
605
)

   
         
Effects of Effects of
Quarter Ended AFX Foreign BFX Year-To-Date AFX Foreign BFX
June 30, % Change Exchange % Change June 30, % Change Exchange % Change
Dollar amounts in millions, except per share data 2018 2017 Fav (Unfav) Fav (Unfav) Fav (Unfav) 2018 2017 Fav (Unfav) Fav (Unfav) Fav (Unfav)
 
Revenue:
 
Americas (1) $ 320.9 $ 336.8 (5 )% 0.1 % (5 )% $ 632.4 $ 653.1 (3 )% 0.1 % (3 )%
Non-Americas (2) 73.5 71.6 3 % 3.9 % (1 )% 146.7 139.1 5 % 5.2 % 0 %
         
Total Revenue (3) $ 394.4   $ 408.4   (3 )% 0.7 % (4 )% $ 779.1   $ 792.2   (2 )% 1.0 % (3 )%
 
 
Organic Revenue:
Total Revenue $ 394.4 $ 408.4 (4 )% $ 779.1 $ 792.2 (3 )%
Less:
Net Divested - 1.2 N/M - 2.0 N/M
         
Organic Revenue $ 394.4   $ 407.2   (4 )% $ 779.1   $ 790.2   (2 )%
 
 
Operating Income (Loss):
 
Americas (4) $ 80.7 $ 91.5 (12 )% $ 152.3 $ 161.8 (6 )%
Non-Americas (5) 20.7 20.2 3 % 41.9 38.9 8 %
 
Corporate and Other (6) (21.0 ) (21.2 ) 1 % (41.9 ) (42.6 ) 2 %
         
Total Operating Income (7) $ 80.4   $ 90.5   (11 )% $ 152.3   $ 158.1   (4 )%
 
 
Net Income Attributable to Dun & Bradstreet (8) $ 52.0   $ 51.9   0 % $ 98.1   $ 87.1   13 %
 
 
Basic Earnings Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders

$ 1.40   $ 1.41   (1 )% $ 2.64   $ 2.36   12 %
 
Diluted Earnings Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders (9)

$ 1.40   $ 1.40   0 % $ 2.63   $ 2.35   12 %
 
Weighted Average Number of Shares Outstanding:
Basic   37.1     36.9   0 %   37.1     36.9   0 %
Diluted   37.2     37.1   0 %   37.3     37.1   0 %
 
 

Other Information:

 
Interest Income $ 0.3 $ 0.4 (6 )% $ 1.1 $ 0.8 51 %
Interest Expense (13.2 ) (15.1 ) 12 % (27.3 ) (29.7 ) 8 %
Other Income (Expense) - Net (10) 1.2 1.5 (14 )% 0.7 - N/M
       
Non-Operating Income (Expense) - Net (11) $ (11.7 ) $ (13.2 ) 12 % $ (25.5 ) $ (28.9 ) 12 %
 
Provision for Income Taxes (12) $ 15.5   $ 25.7   39 % $ 26.4   $ 42.0   37 %
 
Equity in Net Income (Loss) of Affiliates $ 0.5   $ 1.9   (72 )% $ 1.1   $ 2.7   (60 )%
 
Net (Income) Loss Attributable to the Noncontrolling Interest $ (1.7 ) $ (1.6 ) (7 )% $ (3.4 ) $ (2.8 ) (22 )%
 
 
Operating Margins (Calculated on Total Revenue)
 
Americas 25.1 % 27.2 % 24.1 % 24.8 %
Non-Americas 28.2 % 28.1 % 28.6 % 28.0 %
Total Company   20.4 %   22.2 %   19.5 %   20.0 %
 
Effective Tax Rate   22.6 %   33.2 %   20.8 %   32.5 %
 
 
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.
 
See Schedule 5 (Notes to Schedules) for a reconciliation of each
of these As Adjusted metrics to the corresponding GAAP metrics
and the relevant definitions.
                     
The Dun & Bradstreet Corporation Schedule 3

Supplemental Revenue Detail (unaudited) - As Adjusted (ASC605)

   
 
 
Quarter Ended Effects of Year-To-Date Effects of
June 30, AFX Foreign BFX June 30, AFX Foreign BFX
% Change Exchange % Change % Change Exchange % Change
Amounts in millions 2018 2017 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav) 2018 2017 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
 
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit $ 122.8 $ 122.0 1 % 0.1 % 1 % $ 239.6 $ 246.2 (3 )% 0.2 % (3 )%
Other Enterprise Risk Management   60.3   61.3 (2 )% 0.0 % (2 )%   118.7   119.1 0 % 0.0 % 0 %
Total Americas Risk Management Solutions 183.1 183.3 0 % 0.1 % 0 % 358.3 365.3 (2 )% 0.1 % (2 )%
 
Sales and Marketing Solutions
Sales Acceleration $ 66.9 $ 69.3 (3 )% 0.0 % (3 )% $ 135.8 $ 140.4 (3 )% 0.0 % (3 )%
Advanced Marketing Solutions   70.9   84.2 (16 )% 0.0 % (16 )%   138.3   147.4 (6 )% 0.0 % (6 )%
Total Americas Sales and Marketing Solutions 137.8 153.5 (10 )% 0.0 % (10 )% 274.1 287.8 (5 )% 0.0 % (5 )%
       
Total Americas Revenue (1) $ 320.9 $ 336.8 (5 )% 0.1 % (5 )% $ 632.4 $ 653.1 (3 )% 0.1 % (3 )%
 
Non-Americas:
Risk Management Solutions
Trade Credit $ 41.4 $ 41.5 0 % 3.3 % (3 )% $ 81.6 $ 82.4 (1 )% 4.9 % (6 )%
Other Enterprise Risk Management   19.6   15.8 24 % 5.8 % 18 %   37.6   29.3 28 % 6.1 % 22 %
Total Non-Americas Risk Management Solutions 61.0 57.3 7 % 4.0 % 3 % 119.2 111.7 7 % 5.3 % 1 %
 
Sales and Marketing Solutions
Sales Acceleration $ 6.1 $ 8.0 (25 )% 4.1 % (29 )% $ 12.6 $ 13.3 (6 )% 6.0 % (12 )%
Advanced Marketing Solutions   6.4   6.3 2 % 1.8 % 0 %   14.9   14.1 6 % 4.0 % 2 %
Total Non-Americas Sales and Marketing Solutions 12.5 14.3 (13 )% 3.2 % (17 )% 27.5 27.4 0 % 5.0 % (5 )%
       
Total Non-Americas Revenue (2) $ 73.5 $ 71.6 3 % 3.9 % (1 )% $ 146.7 $ 139.1 5 % 5.2 % 0 %
 
Total Corporation:
Risk Management Solutions
Trade Credit $ 164.2 $ 163.5 0 % 1.0 % 0 % $ 321.2 $ 328.6 (2 )% 1.4 % (4 )%
Other Enterprise Risk Management   79.9   77.1 4 % 1.1 % 2 %   156.3   148.4 5 % 1.2 % 4 %
Total Risk Management Solutions 244.1 240.6 1 % 1.0 % 0 % 477.5 477.0 0 % 1.3 % (1 )%
 
Sales and Marketing Solutions
Sales Acceleration $ 73.0 $ 77.3 (6 )% 0.5 % (6 )% $ 148.4 $ 153.7 (3 )% 0.6 % (4 )%
Advanced Marketing Solutions   77.3   90.5 (15 )% 0.2 % (15 )%   153.2   161.5 (5 )% 0.4 % (6 )%
Total Sales and Marketing Solutions 150.3 167.8 (10 )% 0.3 % (11 )% 301.6 315.2 (4 )% 0.5 % (5 )%
       
Total Revenue (3) $ 394.4 $ 408.4 (3 )% 0.7 % (4 )% $ 779.1 $ 792.2 (2 )% 1.0 % (3 )%
 
Trade Credit Revenue:
Americas:
D&B Credit Suite $ 94.5 $ 93.2 1 % 0.1 % 1 % $ 186.4 $ 187.3 (1 )% 0.2 % (1 )%
Other Trade Credit   28.3   28.8 (1 )% 0.1 % (2 )%   53.2   58.9 (10 )% 0.2 % (10 )%
Total Americas Trade Credit Revenue 122.8 122.0 1 % 0.1 % 1 % 239.6 246.2 (3 )% 0.2 % (3 )%
 
Non-Americas:
D&B Credit Suite $ 7.0 $ 4.4 61 % 7.6 % 53 % $ 13.5 $ 8.1 67 % 11.0 % 56 %
Other Trade Credit   34.4   37.1 (7 )% 2.8 % (10 )%   68.1   74.3 (8 )% 4.2 % (13 )%
Total Non-Americas Trade Credit Revenue 41.4 41.5 0 % 3.3 % (3 )% 81.6 82.4 (1 )% 4.9 % (6 )%
 
Total Corporation:
D&B Credit Suite $ 101.5 $ 97.6 4 % 0.4 % 4 % $ 199.9 $ 195.4 2 % 0.6 % 2 %
Other Trade Credit   62.7   65.9 (5 )% 1.7 % (6 )%   121.3   133.2 (9 )% 2.5 % (11 )%
Total Trade Credit Revenue $ 164.2 $ 163.5 0 % 1.0 % 0 % $ 321.2 $ 328.6 (2 )% 1.4 % (4 )%
 
D&B Hoovers Suite
Americas $ 40.9 $ 42.3 (3 )% 0.0 % (3 )% $ 81.8 $ 86.3 (5 )% 0.0 % (5 )%
Non-Americas   3.7   3.7 (3 )% 7.5 % (10 )%   8.0   6.6 19 % 9.9 % 9 %
Total Corporation $ 44.6 $ 46.0 (3 )% 0.7 % (4 )% $ 89.8 $ 92.9 (3 )% 0.7 % (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.
 
See Schedule 5 (Notes to Schedules) for a reconciliation of the
total segment As Adjusted metrics to the corresponding GAAP metrics.
 
 
The Dun & Bradstreet Corporation Schedule 4
Supplemental Financial Data (unaudited)      
          Quarter Ended   Year-To-Date
June 30, AFX June 30, AFX
  % Change % Change
Amounts in millions 2018 2017 Fav/(Unfav) 2018 2017 Fav/(Unfav)
 

Operating Costs GAAP (ASC 606)

Operating Expenses $ 139.0 $ 139.4 0 % $ 278.2 $ 281.0 1 %
Selling and Administrative Expenses 155.2 162.7 5 % 307.4 333.4 8 %
Depreciation and Amortization 22.7 19.4 (17 )% 43.8 38.3 (14 )%
Restructuring Expense   10.5     7.5   (40 )%   21.5     16.5   (30 )%
 
Total Operating Costs (GAAP) $ 327.4   $ 329.0   0 % $ 650.9   $ 669.2   3 %
 
Capital Expenditures (GAAP) $ 0.8   $ 3.0   75 % $ 1.8   $ 5.8   70 %
 
Additions to Computer Software & Other Intangibles (GAAP) $ 13.5   $ 14.8   8 % $ 27.4   $ 27.5   0 %
 
 
Quarter Ended Year-To-Date
June 30, AFX June 30, AFX
% Change % Change
Amounts in millions   2018     2017   Fav/(Unfav)   2018     2017   Fav/(Unfav)
 

Operating Costs As Adjusted (ASC 605)

Operating Expenses $ 139.0 $ 139.4 0 % $ 278.2 $ 281.0 1 %
Selling and Administrative Expenses 160.1 167.1 4 % 320.4 330.5 3 %
Depreciation and Amortization 14.9 11.4 (31 )% 28.2 22.6 (24 )%
Restructuring Expense   -     -   N/M   -     -   N/M
 
Total Operating Costs (As Adjusted) $ 314.0   $ 317.9   1 % $ 626.8   $ 634.1   1 %
 
 
 
 
Quarter Ended Year-To-Date
June 30, June 30,

Reconciliation of GAAP to As Adjusted (ASC
605
)

 
Amounts in millions   2018     2017     2018     2017  
 
Operating Expenses (GAAP): $ 139.0 $ 139.4 $ 278.2 $ 281.0
None - - - -
       
Operating Expenses (As Adjusted) $ 139.0   $ 139.4   $ 278.2   $ 281.0  
 
Selling and Admin (GAAP) $ 155.2 $ 162.7 $ 307.4 $ 333.4
Impact of ASC 606 6.0 - 15.2 -
Legal and Other Professional Fees and Shut-Down

(Costs) Recoveries Related to Matters In China

(0.6 ) 0.2 (0.7 ) (0.1 )
Acquisition/Divestiture Related Costs (0.5 ) (3.8 ) (1.5 ) (10.8 )
Accrual for Legal Matters - 8.0 - 8.0
       
Selling and Admin (As Adjusted) $ 160.1   $ 167.1   $ 320.4   $ 330.5  
 
Depreciation and Amortization (GAAP) $ 22.7 $ 19.4 $ 43.8 $ 38.3
Amortization of Acquisition Related Intangibles (7.8 ) (8.0 ) (15.6 ) (15.7 )
       
Depreciation and Amortization (As Adjusted) $ 14.9   $ 11.4   $ 28.2   $ 22.6  
 
Restructuring (GAAP) $ 10.5 $ 7.5 $ 21.5 $ 16.5
Restructuring (10.5 ) (7.5 ) (21.5 ) (16.5 )
       
Restructuring (As Adjusted) $ -   $ -   $ -   $ -  
 

Supplemental Financial Data (unaudited) - (ASC
606
)

 
Quarter Ended
 
Amounts in millions Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
 
Net Debt Position:
Cash and Cash Equivalents $ 199.5 $ 188.1 $ 442.4 $ 431.0 $ 400.2 $ 375.4
Short-Term Debt (26.3 ) (35.0 ) (32.5 ) (30.0 ) (27.5 ) (22.5 )
Long-Term Debt   (1,310.5 )   (1,293.9 )   (1,645.6 )   (1,651.6 )   (1,673.0 )   (1,684.7 )
 
Net Debt $ (1,137.3 ) $ (1,140.8 ) $ (1,235.7 ) $ (1,250.6 ) $ (1,300.3 ) $ (1,331.8 )
 
 
Year-To-Date
 
Amounts in millions   Jun 30, 2018 Jun 30, 2017 % Change Fav/

(Unfav)

 
Free Cash Flow:
Net Cash Provided By Operating Activities - Continuing Operations
(GAAP)
$ 173.3 $ 176.5 (2 )%
Less:
Capital Expenditures (GAAP) 1.8 5.8 70 %
Additions to Computer Software & Other Intangibles (GAAP) 27.4 27.5 0 %
   
Free Cash Flow $ 144.1   $ 143.2   1 %
 
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.
 
See Schedule 5 (Notes to Schedules) for a reconciliation of each
of these As Adjusted metrics to the corresponding GAAP metrics and
the relevant definitions.
 
The Dun & Bradstreet Corporation Schedule 5
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
Schedules 1, 2, and 3:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Americas Total Revenue (GAAP) (Schedule 1) $ 367.9 $ 333.6 $ 713.6 $ 648.1
Impact of ASC 606 47.0 - 81.2 -
Acquisition Related Deferred Revenue Fair Value Adjustment - (3.2 ) - (5.0 )
       
Americas Total Revenue (As Adjusted) (Schedules 2 and 3) $ 320.9   $ 336.8   $ 632.4   $ 653.1  
 
(2) The following table reconciles Non-Americas Total Revenue included
in Schedules 1, 2 and 3:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Non-Americas Total Revenue (GAAP) (Schedule 1) $ 71.7 $ 72.1 $ 144.2 $ 139.1
Impact of ASC 606 (1.8 ) - (2.5 ) -
Acquisition Related Deferred Revenue Fair Value Adjustment - 0.5 - -
       
Non-Americas Total Revenue (As Adjusted) (Schedules 2 and 3) $ 73.5   $ 71.6   $ 146.7   $ 139.1  
 
(3) The following table reconciles Total Revenue included in Schedules
1, 2, and 3:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Total Revenue (GAAP) (Schedule 1) $ 439.6 $ 405.7 $ 857.8 $ 787.2
Impact of ASC 606 45.2 - 78.7 -
Acquisition Related Deferred Revenue Fair Value Adjustment - (2.7 ) - (5.0 )
       
Total Revenue (As Adjusted) (Schedules 2 and 3) $ 394.4   $ 408.4   $ 779.1   $ 792.2  
 
(4) The following table reconciles Americas Operating Income included in
Schedule 1 and Schedule 2:
 
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Americas Operating Income (GAAP) (Schedule 1) $ 126.3 $ 77.8 $ 232.7 $ 135.4
 
Impact of ASC 606 53.3 - 96.5 -
Acquisition/Divestiture Related Costs (0.1 ) (2.8 ) (1.0 ) (6.0 )
Amortization of Acquisition Related Intangibles (7.6 ) (7.7 ) (15.1 ) (15.4 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (3.2 ) - (5.0 )
       
Americas Operating Income (As Adjusted) (Schedule 2) $ 80.7   $ 91.5   $ 152.3   $ 161.8  
 
(5) The following table reconciles Non-Americas Operating Income
included in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Non-Americas Operating Income (GAAP) (Schedule 1) $ 18.4 $ 20.2 $ 38.8 $ 38.4
 
Impact of ASC 606 (2.1 ) - (2.6 ) -
Acquisition/Divestiture Related Costs - (0.2 ) - (0.2 )
Acquisition Related Deferred Revenue Fair Value Adjustment - 0.5 - -
Amortization of Acquisition Related Intangibles (0.2 ) (0.3 ) (0.5 ) (0.3 )
       
Non-Americas Operating Income (As Adjusted) (Schedule 2) $ 20.7   $ 20.2   $ 41.9   $ 38.9  
 
(6) The following table reconciles Corporate and Other expenses included
in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Corporate and Other (GAAP) (Schedule 1) $ (32.5 ) $ (21.3 ) $ (64.6 ) $ (55.8 )
 
Restructuring Charges (10.5 ) (7.5 ) (21.5 ) (16.5 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China
(0.6 ) 0.2 (0.7 ) (0.1 )
Decrease (Increase) of Accrual for Legal Matters - 8.0 - 8.0
Acquisition/Divestiture Related Costs (0.4 ) (0.8 ) (0.5 ) (4.6 )
       
 
Corporate and Other (As Adjusted) (Schedule 2) $ (21.0 ) $ (21.2 ) $ (41.9 ) $ (42.6 )
 
(7) The following table reconciles Total Operating Income included in
Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Total Operating Income (GAAP) (Schedule 1) $ 112.2 $ 76.7 $ 206.9 $ 118.0
 
Impact of ASC 606 51.2 - 93.9 -
Restructuring Charges (10.5 ) (7.5 ) (21.5 ) (16.5 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China
(0.6 ) 0.2 (0.7 ) (0.1 )
Decrease (Increase) of Accrual for Legal Matters - 8.0 - 8.0
Acquisition/Divestiture Related Costs (0.5 ) (3.8 ) (1.5 ) (10.8 )
Amortization of Acquisition Related Intangibles (7.8 ) (8.0 ) (15.6 ) (15.7 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (2.7 ) - (5.0 )
       
Total Operating Income (As Adjusted) (Schedule 2) $ 80.4   $ 90.5   $ 152.3   $ 158.1  
 
(8) The following table reconciles Net Income Attributable to Dun &
Bradstreet included in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Net Income (Loss) Attributable to Dun & Bradstreet (GAAP) (Schedule
1)
$ 93.0 $ 45.1 $ 156.9 $ 60.6
 
Impact of ASC 606 39.7 - 72.7 -
Restructuring Charges (7.9 ) (4.7 ) (16.3 ) (10.7 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China
(0.5 ) 0.2 (0.6 ) -
Decrease (Increase) of Accrual for Legal Matters - 7.9 - 7.9
Acquisition/Divestiture Related Costs (0.3 ) (3.4 ) (1.1 ) (8.9 )
Amortization of Acquisition Related Intangibles (5.9 ) (5.0 ) (11.8 ) (10.0 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (1.8 ) - (3.4 )
Gain (Loss) on Sale of Businesses - - - (0.6 )
Impact of the 2017 Tax Cuts and Jobs Act 2.4 - 2.4 -
Impact of Accounting Method Change 13.5 - 13.5 -
       
After-Tax Impact 41.0 (6.8 ) 58.8 (25.7 )
 
Income (Loss) From Discontinued Operations, Net of Income Taxes - - - (0.8 )
       
Net Income Attributable to Dun & Bradstreet (As Adjusted) (Schedule
2)
$ 52.0   $ 51.9   $ 98.1   $ 87.1  
 
(9) The following table reconciles Diluted Earnings Per Share Of Common
Stock included in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
    2018 2017 2018 2017
 
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders
(GAAP) (Schedule 1)
$ 2.50 $ 1.22 $ 4.21 $ 1.63
 
Impact of ASC 606 1.07 - 1.95 -
Restructuring Charges (0.21 ) (0.12 ) (0.44 ) (0.29 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China
(0.01 ) - (0.01 ) -
Decrease (Increase) of Accrual for Legal Matters - 0.21 - 0.21
Acquisition/Divestiture Related Costs (0.01 ) (0.09 ) (0.03 ) (0.24 )
Amortization of Acquisition Related Intangibles (0.16 ) (0.13 ) (0.32 ) (0.27 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (0.05 ) - (0.09 )
Gain (Loss) on Sale of Businesses - - - (0.02 )
Impact of the 2017 Tax Cuts and Jobs Act 0.06 - 0.07 -
Impact of Accounting Method Change 0.36 - 0.36 -
Discontinued Operations - - - (0.02 )
       
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders (As
Adjusted) (Schedule 2)
$ 1.40   $ 1.40   $ 2.63   $ 2.35  
 
 
(10) The following table reconciles Other Income (Expense)-Net included
in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Other Income (Expense)-Net (GAAP) (Schedule 1) $ 1.2 $ 1.5 $ 0.7 $ (0.7 )
Gain (Loss) on Sale of Businesses - - - (0.7 )
       
Other Income (Expense)-Net (As Adjusted) (Schedule 2) $ 1.2   $ 1.5   $ 0.7   $ -  
 
 
(11) The following table reconciles Non-Operating Income (Expense)-Net
included in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Non-Operating Income (Expense) - Net (GAAP) (Schedule 1) $ (11.7 ) $ (13.2 ) $ (25.5 ) $ (29.6 )
Gain (Loss) on Sale of Businesses - - - (0.7 )
       
Non-Operating Income (Expense) - Net (As Adjusted) (Schedule 2) $ (11.7 ) $ (13.2 ) $ (25.5 ) $ (28.9 )
 
(12) The following table reconciles Provision for Income Taxes included
in Schedule 1 and Schedule 2:
Quarter Ended Year-To-Date
June 30, June 30,
Amounts in millions 2018 2017 2018 2017
 
Provision for Income Taxes (GAAP) (Schedule 1) $ 6.3 $ 18.7 $ 22.2 $ 26.9
 
Impact of ASC 606 11.5 - 21.2 -
Restructuring Charges (2.6 ) (2.8 ) (5.2 ) (5.8 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China
(0.1 ) - (0.1 ) (0.1 )
Decrease (Increase) of Accrual for Legal Matters - 0.1 - 0.1
Acquisition/Divestiture Related Costs (0.2 ) (0.4 ) (0.4 ) (1.9 )
Amortization of Acquisition Related Intangibles (1.9 ) (3.0 ) (3.8 ) (5.7 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (0.9 ) - (1.6 )
Gain (Loss) on Sale of Businesses - - - (0.1 )
Impact of the 2017 Tax Cuts and Jobs Act (2.4 ) - (2.4 ) -
Impact of Accounting Method Change (13.5 ) - (13.5 ) -
       
Provision for Income Taxes (As Adjusted) (Schedule 2) $ 15.5   $ 25.7   $ 26.4   $ 42.0  
 
The Dun & Bradstreet Corporation       Schedule 5
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 impact of ASC 606; 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, effect of significant changes in tax laws, and
material tax and legal settlements); acquisition and
divestiture-related fees (such as costs for bankers, legal, due
diligence, retention payments, and contingent consideration
adjustments); and acquisition-related intangible amortization
expense. A recurring component excluded from our "As Adjusted"
results 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 the estimated revenue
contribution from acquired businesses for one year from the date
of the acquisition and 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 annual 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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