- Achieves all Guidance Metrics
- Increases Quarterly Dividend
Dun & Bradstreet (NYSE:DNB) reported results for the fourth
quarter and full year ended December 31, 2016. For the fourth
quarter of 2016, GAAP revenue increased 4% year over year, after
the effect of foreign exchange (up 5% before the effect of foreign
exchange); As Adjusted revenue increased 4% year over year and
organic revenue increased 5% year over year, each before the effect
of foreign exchange. For full year 2016, GAAP revenue increased 4%
year over year, after the effect of foreign exchange (up 5% before
the effect of foreign exchange); As Adjusted revenue increased 4%
year over year and organic revenue increased 2% year over year,
each before the effect of foreign exchange.
“I’m proud of our team’s performance in the fourth quarter,”
said Bob Carrigan, Chairman and CEO of Dun & Bradstreet. “We
finished 2016 on a strong note, driving revenue growth and
achieving all of our full year guidance metrics. As we enter 2017,
we remain focused on executing our growth strategy and delivering
increasing value to our customers across all of our lines of
business.”
Fourth Quarter 2016 Highlights
Quarter Ended
AFX BFX December 31, % Change %
Change (Amounts in millions, except per share data)
2016
2015 Fav (Unfav) Fav (Unfav) GAAP Revenue $
517.1 $ 499.3 4% 5% As Adjusted Revenue $ 517.1 $ 504.4 2% 4%
Organic Revenue $ 512.4 $ 495.4 5% GAAP Operating Income $
162.7 $ 128.7 26% As Adjusted Operating Income $ 180.7 $ 174.4 4%
GAAP Diluted Earnings (Loss) Per Share $ 2.10 $ 2.11 0% As
Adjusted Diluted Earnings (Loss) Per Share $ 2.99 $ 2.87 4%
See attached Schedules 5 and 6 for a reconciliation of As
Adjusted metrics to GAAP results, as well as the definitions of the
non-GAAP financial measures that the Company uses to evaluate the
business.
Deferred revenue for the Company as of December 31, 2016 was
$628.1 million, down 3% year over year; Americas was $564.0
million, up 3% year over year and Non-Americas was $64.1 million,
down 37% year over year. After adjusting for the effect of foreign
exchange, dispositions of our Benelux and Latin America operations
and the impacts of the write-down of deferred revenue due to
purchase accounting, total Company deferred revenue was up 2%,
Americas was up 3% and Non-Americas was down 2%, each as compared
to last year.
Fourth Quarter 2016 Segment Results
Americas
- GAAP revenue of $441.2 million, up 6%
year over year both after and before the effect of foreign
exchange; As Adjusted revenue of $441.2 million, up 5% year over
year after the effect of foreign exchange (up 4% before the effect
of foreign exchange);
- GAAP operating income of $175.6
million, up 19% year over year; As Adjusted operating income of
$187.3 million, up 7% year over year.
Non-Americas
- GAAP revenue and As Adjusted revenue of
$75.9 million, each down 8% year over year after the effect of
foreign exchange (flat before the effect of foreign exchange);
- GAAP operating income of $12.2 million,
down 38% year over year. As Adjusted operating income of $14.6
million, down 25% year over year.
See attached Schedules 3, 4, 5, and 6 for additional detail.
Full Year 2016 Highlights
Full Year
AFX BFX December 31, % Change %
Change (Amounts in millions, except per share data)
2016
2015 Fav (Unfav) Fav (Unfav) GAAP Revenue $
1,703.7 $ 1,637.1 4% 5% As Adjusted Revenue $ 1,706.8 $ 1,657.0 3%
4% Organic Revenue $ 1,641.8 $ 1,624.7 2% GAAP Operating
Income $ 359.2 $ 337.0 7% As Adjusted Operating Income $ 448.5 $
437.3 3% GAAP Diluted Earnings (Loss) Per Share(1) $ 2.65 $
4.64 (43%) As Adjusted Diluted Earnings (Loss) Per Share $ 7.35 $
7.25 1%
Year-To-Date
Dec 31, 2016
Dec 31, 2015
Net Cash Provided By Operating Activities - Continuing Operations
(GAAP) $ 322.7 $ 336.8 Free Cash Flow $ 262.5 $ 272.0 (1)
GAAP diluted earnings per share includes a non-cash loss of
$2.66 for full year 2016 related to the sale of operations in
Benelux and Latin America.
See attached Schedules 5 and 6 for a reconciliation of As
Adjusted metrics to GAAP results, as well as the definitions of the
non-GAAP financial measures that the Company uses to evaluate the
business.
Full Year 2016 Segment Results
Americas
- GAAP revenue of $1,416.1 million, up 7%
year over year both after and before the effect of foreign
exchange; As Adjusted revenue of $1,419.2 million, up 5% year over
year both after and before the effect of foreign exchange;
- GAAP operating income of $429.5
million, up 16% year over year; As Adjusted operating income of
$465.0 million, up 10% year over year.
Non-Americas
- GAAP revenue and As Adjusted revenue of
$287.6 million, each down 7% year over year after the effect of
foreign exchange (down 1% before the effect of foreign
exchange);
- GAAP operating income of $59.4 million,
down 28% year over year. As Adjusted operating income of $62.2
million, down 25% year over year.
See attached Schedules 3, 4, 5, and 6 for additional detail.
Dividend Increase
Dun & Bradstreet today announced that it has declared an
increased quarterly cash dividend of $0.5025 per share, up from the
Company’s prior quarterly dividend of $0.4825 per share. This
quarterly cash dividend is payable on March 10, 2017, to
shareholders of record as of the close of business on February 23,
2017.
Use of Non-GAAP Financial Measures
In addition to reporting generally accepted accounting
principles in the United States of America (“GAAP”) results, the
Company evaluates performance and reports on a total company basis
and on a business segment level basis its results (such as revenue,
operating income, operating income growth, operating margin, net
income, tax rate and diluted earnings per share) on an “As
Adjusted” basis. The term “As Adjusted” refers to the following:
the elimination of the effect on revenue due to purchase accounting
fair value adjustments to deferred revenue; restructuring charges;
other non-core gains and charges that are not in the normal course
of our business (such as gains and losses on sales of businesses,
impairment charges and material tax and legal settlements);
acquisition and divestiture-related fees (such as costs for
bankers, legal fees, diligence costs, retention payments, and
contingent consideration adjustments); and acquisition-related
intangible amortization expense. A recurring component of our “As
Adjusted” basis is our restructuring charges, which we believe do
not reflect our underlying business performance. Such charges are
variable from period to period based upon actions identified and
taken during each period. Additionally, our “As Adjusted” results
exclude the results of Discontinued Operations.
We also isolate the effects of changes in foreign exchange rates
on our revenue growth because we believe it is useful for investors
to be able to compare revenue from one period to another, both
after and before the effects of foreign exchange. The change in our
operating performance attributable to foreign currency rates is
determined by converting both our prior and current periods by a
constant rate. As a result, we monitor our “As Adjusted” revenue
growth both after and before the effects of foreign exchange.
We also analyze “As Adjusted” revenue growth on an organic basis
because management believes this information provides important
insight into the underlying/ongoing performance of the business.
Organic revenue excludes revenue 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 5 and 6 attached to this press
release.
Fourth Quarter 2016 Teleconference
As previously announced, Dun & Bradstreet will review its
fourth quarter and full year 2016 results and its 2017 outlook in a
conference call with the investment community on Thursday, February
9, 2017, at 8 a.m. ET. Live audio, as well as a replay of the
conference call will be accessible on Dun & Bradstreet's
Investor Relations Web site at http://investor.dnb.com.
**************
About Dun & Bradstreet®
Dun & Bradstreet (NYSE: DNB) grows the most valuable
relationships in business. By uncovering truth and meaning from
data, we connect our customers with the prospects, suppliers,
clients and partners that matter most, and have since 1841. Nearly
ninety percent of the Fortune 500, and companies of every size
around the world, rely on our data, insights and analytics. For
more about Dun & Bradstreet, visit DNB.com. Twitter: @DnBUS
Forward-Looking and Cautionary Statements
We may from time-to-time make written or oral “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including statements contained in filings with
the Securities and Exchange Commission, in reports to shareholders
and in press releases and investor Web casts. These forward-looking
statements include, without limitation, any statements related to
financial guidance or strategic goals. These forward-looking
statements can also be identified by the use of words like
“anticipates,” “aspirations,” “believes,” “commits,” “continues,”
“estimates,” “expects,” “goals,” “guidance,” “intends,” “plans,”
“projects,” “strategy,” “targets,” “will” and other words of
similar meaning. They can also be identified by the fact that they
do not relate strictly to historical or current facts.
We cannot guarantee that any forward-looking statement will be
realized. Achievement of future results is subject to risks,
uncertainties and inaccurate assumptions. Should known or unknown
risks or uncertainties materialize, or should underlying
assumptions prove inaccurate, actual results could vary materially
from those anticipated, estimated or projected. Investors should
bear this in mind as they consider forward-looking statements and
whether to invest in, or remain invested in, our securities.
In connection with the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, we are identifying the
following important factors that, individually or in the aggregate,
could cause actual results to differ materially from those
contained in any forward-looking statements made by us; any such
statement is qualified by reference to the following cautionary
factors: (i) reliance on third parties to support critical
components of our business model; (ii) our ability to protect our
information technology infrastructure against cyber-attack and
unauthorized access; (iii) risks associated with potential
violations of the Foreign Corrupt Practices Act and similar laws;
(iv) customer demand for our products; (v) the successful
implementation of our business strategy; (vi) the integrity and
security of our global database and data centers; (vii) our ability
to maintain the integrity of our brand and reputation; (viii) our
ability to renew large contracts and the related revenue
recognition and timing thereof; (ix) the impact of macro-economic
challenges on our customers and vendors; (x) future laws or
regulations with respect to the collection, compilation, storage,
use, cross-border transfer and/or publication of information and
adverse publicity or litigation concerning the commercial use of
such information; (xi) our ability to acquire and successfully
integrate other businesses, products and technologies; (xii)
adherence by third-party members of our Dun & Bradstreet
Worldwide Network, or other third parties who license and sell
under the Dun & Bradstreet name, to our quality standards and
to the renewal of their agreements with Dun & Bradstreet;
(xiii) the effects of foreign and evolving economies, exchange rate
fluctuations, legislative or regulatory requirements and the
implementation or modification of fees or taxes to collect,
compile, store, use, transfer cross-border and/or publish data; and
(xiv) the other factors described under the headings “Risk
Factors,” “Management’s Discussion and Analysis,” “Legal
Proceedings” and elsewhere in our Annual Report on Form 10-K, our
Quarterly Reports on Form 10-Q and the Company’s other reports or
documents filed or furnished with the Securities and Exchange
Commission.
It should be understood that it is not possible to predict or
identify all risk factors. Consequently, the above list of
important factors and the Risk Factors discussed in Item 1A. of our
Annual Report on Form 10-K and in our Quarterly Reports on Form
10-Q should not be considered to be a complete discussion of all of
our potential trends, risks and uncertainties. Except as otherwise
required by federal securities laws, we do not undertake any
obligation to update any forward-looking statement we may make from
time-to-time.
The Dun & Bradstreet Corporation
Schedule 1
Consolidated Statement of Operations
(unaudited) - GAAP Results
Effects of Effects of Quarter Ended
AFX Foreign BFX Full Year AFX
Foreign BFX December 31, % Change
Exchange % Change December 31, % Change
Exchange % Change Dollar amounts in millions, except
per share data
2016 2015 Fav (Unfav) Fav
(Unfav) Fav (Unfav) 2016 2015 Fav
(Unfav) Fav (Unfav) Fav (Unfav)
Revenue: Americas
(1) $ 441.2 $ 416.9 6% 0.0%
6% $ 1,416.1 $ 1,329.1 7% (0.1)% 7% Non-Americas 75.9
82.4 (8)% (7.8)% 0% 287.6 308.0 (7)% (5.4)% (1)%
Total Revenue (2) $ 517.1 $ 499.3
4%
(1.3)% 5% $ 1,703.7 $ 1,637.1 4% (1.2)% 5%
Operating
Income (Loss): Americas
(3) $ 175.6 $ 147.8 19% $
429.5 $ 369.3 16% Non-Americas
(4) 12.2 19.7
(38)%
59.4 83.1 (28)% Corporate and Other
(5) (25.1)
(38.8) 35% (129.7) (115.4) (12)%
Total Operating Income (6) 162.7 128.7 26% 359.2 337.0 7%
Interest Income 0.4 0.5 (28)% 1.8 1.6 15% Interest Expense
(13.0) (14.0) 7% (53.1) (51.0) (4)% Other Income (Expense) - Net
(9) (12.4) (0.2) N/M (104.3)
(7.6) N/M Non-Operating Income (Expense) - Net
(10)
(25.0) (13.7) (83)% (155.6) (57.0) N/M
Income Before Provision for Income Taxes 137.7 115.0 20%
203.6 280.0 (27)% Less: Provision for Income Taxes
(11) 54.9 37.7 (45)% 99.9 74.2 (35)% Equity in Net Income
(Loss) of Affiliates (0.1) (0.2) 54% 2.8
2.7 4% Net Income From Continuing Operations 82.7
77.1 7% 106.5 208.5 (49)% Less: Net (Income) Loss
Attributable to the Noncontrolling Interest (1.5)
(1.2) (32)% (5.0) (4.3) (16)% Net Income From
Continuing Operations Attributable to Dun & Bradstreet 81.2
75.9 7% 101.5 204.2 (50)% Income from Discontinued
Operations, Net of Income Taxes - - 0% - 2.1 N/M Loss on Disposal
of Business, Net of Tax Impact (3.2) 0.8 N/M (4.1) (37.5) 89%
Income (Loss) from Discontinued
Operations, Net of Income Taxes (3.2) 0.8 N/M
(4.1) (35.4) 88%
Net Income Attributable to Dun
& Bradstreet (7) $ 78.0 $ 76.7 2% $ 97.4 $ 168.8 (42)%
Basic Earnings (Loss) Per Share: From Continuing
Operations $ 2.21 $ 2.10 5% $ 2.78 $ 5.66 (51)%
From
Discontinued Operations (0.09) 0.02 N/M
(0.11) (0.98) 89%
Basic Earnings (Loss) Per Share
of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders
$ 2.12 $ 2.12 0% $ 2.67 $ 4.68 (43)%
Diluted Earnings
(Loss) Per Share: From Continuing Operations $ 2.19 $
2.08 5% $ 2.76 $ 5.61 (51)%
From Discontinued Operations
(0.09) 0.03 N/M (0.11) (0.97) 89%
Diluted Earnings (Loss) Per Share of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders (8)
$ 2.10 $ 2.11 0% $ 2.65 $ 4.64 (43)%
Weighted Average
Number of Shares Outstanding: Basic 36.8
36.2 (2)% 36.5 36.1 (1)%
Diluted 37.1
36.4 (2)% 36.8 36.4 (1)%
Operating Margins (Calculated on Total Revenue)
Americas 39.8% 35.5% 30.3% 27.8% Non-Americas 16.0% 23.8% 20.6%
27.0% Total Company 31.5% 25.8% 21.1%
20.6% Effective Tax Rate 39.8% 32.7%
49.0% 26.5%
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.
The Dun & Bradstreet
Corporation Schedule 2
Certain Selected As Adjusted* Metrics (unaudited)
Effects of Effects of Quarter Ended
AFX Foreign BFX Full Year AFX
Foreign BFX December 31, % Change
Exchange % Change December 31, % Change
Exchange % Change Dollar amounts in millions, except
per share data
2016 2015 Fav (Unfav) Fav
(Unfav) Fav (Unfav) 2016 2015 Fav
(Unfav) Fav (Unfav) Fav (Unfav)
Revenue: Americas
(1) $ 441.2 $ 422.0
5%
0.1%
4%
$ 1,419.2 $ 1,349.0
5%
(0.1)%
5%
Non-Americas 75.9 82.4 (8)% (7.8)%
0%
287.6 308.0 (7)% (5.4)% (1)%
Total Revenue
(2) $ 517.1 $ 504.4
2%
(1.3)%
4%
$ 1,706.8 $ 1,657.0
3%
(1.1)%
4%
Organic Revenue:** Total Revenue $ 517.1 $
504.4
4%
$ 1,706.8 $ 1,657.0
4%
Less: Acquisitions - - N/M 40.0 - N/M Net Divested 4.7
9.0 N/M 25.0 32.3 N/M
Organic
Revenue $ 512.4 $ 495.4
5%
$ 1,641.8 $ 1,624.7
2%
Operating Income (Loss): Americas
(3) $ 187.3 $ 174.6
7%
$ 465.0 $ 424.2
10%
Non-Americas
(4) 14.6 19.6
(25)%
62.2 82.7 (25)% Corporate and Other
(5) (21.2)
(19.8) (6)% (78.7) (69.6) (13)%
Total Operating Income (6) $ 180.7 $ 174.4
4%
$ 448.5 $ 437.3
3%
Net Income Attributable to Dun & Bradstreet
(7) $ 110.8 $ 104.8
6%
$ 270.2 $ 263.9
2%
Basic Earnings Per Share of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders
$ 3.01 $ 2.90
4%
$ 7.41 $ 7.31
1%
Diluted Earnings Per Share of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders (8)
$ 2.99 $ 2.87
4%
$ 7.35 $ 7.25
1%
Weighted Average Number of Shares Outstanding:
Basic 36.8 36.2 (2)% 36.5 36.1
(1)%
Diluted 37.1 36.4
(2)%
36.8 36.4 (1)%
Other
Information:
Interest Income $ 0.4 $ 0.5 (28)% $ 1.8 $ 1.6
15%
Interest Expense (13.0) (14.0)
7%
(53.1) (51.0) (4)% Other Income (Expense) - Net
(9)
(0.2) (0.2) (34)% (0.7) 0.8 N/M
Non-Operating Income (Expense) - Net
(10) $ (12.8) $ (13.7)
6%
$ (52.0) $ (48.6) (7)% Provision for Income Taxes
(11) $ 55.5 $ 54.5 (2)% $ 124.1 $ 123.2
(1)%
Operating Margins (Calculated on Total Revenue)
Americas
42.4%
41.4%
32.8%
31.4%
Non-Americas
19.3%
23.8%
21.6%
26.9%
Total Company
35.0%
34.6%
26.3%
26.4%
Effective Tax Rate
33.1%
33.9%
31.3%
31.7%
AFX - After Effects of Foreign
Exchange
BFX - Before Effects of Foreign
Exchange
N/M - Not Meaningful
See Schedule 6 (Notes to Schedules) for
a reconciliation of each of these As Adjusted metrics to the
corresponding GAAP metrics.
* As Adjusted includes the effect of
divesting our operations in Benelux and Latin America
** See Schedule 6 (Notes to Schedules)
for definition of Organic Revenue
The Dun & Bradstreet Corporation
Schedule 3
Supplemental Revenue Detail (unaudited)
- GAAP Results
Quarter Ended Effects of Full
Year Effects of December 31, AFX
Foreign BFX December 31, AFX
Foreign BFX % Change Exchange %
Change % Change Exchange % Change Amounts
in millions
2016 2015 Fav/(Unfav)
Fav/(Unfav) Fav/(Unfav) 2016 2015
Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 131.5 $
136.5 (4)%
0.1%
(4)% $ 518.5 $ 530.7 (2)% (0.2)% (2)% Other Enterprise Risk
Management 78.5 67.8
16%
0.0%
16%
256.9 202.7
27%
(0.3)%
27%
Total Americas Risk Management Solutions 210.0 204.3
3%
0.1%
3%
775.4 733.4
6%
(0.2)%
6%
Sales and Marketing Solutions Traditional Prospecting
Solutions $ 39.8 $ 43.4 (9)%
0.0%
(9)% $ 147.3 $ 147.2
0%
(0.1)%
0%
Advanced Marketing Solutions 191.4 169.2
13%
0.0%
13%
493.4 448.5
10%
(0.1)%
10%
Total Americas Sales and Marketing Solutions 231.2 212.6
9%
0.0%
9%
640.7 595.7
8%
(0.1)%
8%
Total Americas Revenue $ 441.2 $ 416.9
6%
0.0%
6%
$ 1,416.1 $ 1,329.1
7%
(0.1)%
7%
Non-Americas: Risk Management Solutions Trade Credit
$ 43.5 $ 45.8 (5)% (7.5)%
2%
$ 169.4 $ 181.5 (7)% (5.2)% (1)% Other Enterprise Risk Management
17.9 18.3 (2)% (6.8)%
5%
67.0 63.4
6%
(5.5)%
11%
Total Non-Americas Risk Management Solutions 61.4 64.1 (4)% (7.3)%
3%
236.4 244.9 (3)% (5.2)%
2%
Sales and Marketing Solutions Traditional Prospecting
Solutions $ 4.8 $ 5.4 (10)% (4.2)% (6)% $ 16.6 $ 18.4 (9)% (4.5)%
(5)% Advanced Marketing Solutions 9.7 12.9 (25)%
(11.7)% (13)% 34.6 44.7 (23)% (7.1)% (16)% Total
Non-Americas Sales and Marketing Solutions 14.5 18.3
(21)% (9.5)% (11)% 51.2 63.1 (19)% (6.3)% (13)%
Total Non-Americas Revenue $ 75.9 $ 82.4 (8)% (7.8)%
0%
$ 287.6 $ 308.0 (7)% (5.4)% (1)%
Total Corporation:
Risk Management Solutions Trade Credit $ 175.0 $ 182.3 (4)% (1.8)%
(2)% $ 687.9 $ 712.2 (3)% (1.4)% (2)% Other Enterprise Risk
Management 96.4 86.1
12%
(1.5)%
14%
323.9 266.1
22%
(1.6)%
23%
Total Risk Management Solutions 271.4 268.4
1%
(1.7)%
3%
1,011.8 978.3
3%
(1.5)%
5%
Sales and Marketing Solutions Traditional Prospecting
Solutions $ 44.6 $ 48.8 (9)% (0.5)% (8)% $ 163.9 $ 165.6 (1)%
(0.6)%
0%
Advanced Marketing Solutions 201.1 182.1
10%
(0.8)%
11%
528.0 493.2
7%
(0.7)%
8%
Total Sales and Marketing Solutions 245.7 230.9
6%
(0.7)%
7%
691.9 658.8
5%
(0.7)%
6%
Total Revenue $ 517.1 $ 499.3
4%
(1.3)%
5%
$ 1,703.7 $ 1,637.1
4%
(1.2)%
5%
Trade Credit Revenue: Americas: DNBi $ 96.4 $
97.5 (1)%
0.0%
(1)% $ 380.5 $ 391.0 (3)% (0.2)% (3)% Other Trade Credit
35.1 39.0 (10)%
0.2%
(10)%
138.0 139.7 (1)% (0.2)% (1)% Total Americas Trade
Credit Revenue 131.5 136.5 (4)%
0.1%
(4)% 518.5 530.7 (2)% (0.2)% (2)%
Non-Americas: DNBi
$ 5.4 $ 6.2 (14)% (9.9)% (4)% $ 23.7 $ 25.2 (6)% (6.2)%
0%
Other Trade Credit 38.1 39.6 (4)% (7.1)%
3%
145.7 156.3 (7)% (5.0)% (2)% Total Non-Americas Trade
Credit Revenue 43.5 45.8 (5)% (7.5)%
2%
169.4 181.5 (7)% (5.2)% (1)%
Total Corporation: DNBi
$ 101.8 $ 103.7 (2)% (0.6)% (1)% $ 404.2 $ 416.2 (3)% (0.5)% (2)%
Other Trade Credit 73.2 78.6 (7)% (3.5)% (3)%
283.7 296.0 (4)% (2.7)% (1)% Total Trade Credit Revenue $
175.0 $ 182.3 (4)% (1.8)% (2)% $ 687.9 $ 712.2 (3)% (1.4)% (2)%
Total Revenue:
Americas: Direct $ 394.4 $ 379.2
4%
0.0%
4%
$ 1,282.5 $ 1,216.7
5%
(0.2)%
6%
Alliances & Partners 46.8 37.7
24%
0.5%
24%
133.6 112.4
19%
0.4%
18%
Total Americas Revenue 441.2 416.9
6%
0.0%
6%
1,416.1 1,329.1
7%
(0.1)%
7%
Non-Americas: Direct $ 47.7 $ 57.0 (16)% (8.7)% (8)%
$ 191.4 $ 214.2 (11)% (6.2)% (4)% Alliances & Partners
28.2 25.4
11%
(5.8)%
17%
96.2 93.8
2%
(3.7)%
6%
Total Non-Americas Revenue 75.9 82.4 (8)% (7.8)%
0%
287.6 308.0 (7)% (5.4)% (1)%
Total Corporation:
Direct $ 442.1 $ 436.2 1 % (1.1)%
2%
$ 1,473.9 $ 1,430.9
3%
(1.1)%
4%
Alliances & Partners 75.0 63.1 19 % (2.1)%
21%
229.8 206.2
11%
(1.5)%
13%
Total Revenue $ 517.1 $ 499.3
4%
(1.3)%
5%
$ 1,703.7 $ 1,637.1
4%
(1.2)%
5%
This financial information should be
read in conjunction with the consolidated financial statements and
related notes of The Dun & Bradstreet Corporation contained in
filings with the Securities and Exchange Commission.
The Dun & Bradstreet
Corporation Schedule 4
Supplemental Revenue Detail (unaudited)
- As Adjusted*
Quarter Ended Effects of Full
Year Effects of December 31, AFX
Foreign BFX December 31, AFX
Foreign BFX % Change Exchange %
Change % Change Exchange % Change Amounts
in millions
2016 2015 Fav/(Unfav)
Fav/(Unfav) Fav/(Unfav) 2016 2015
Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 131.5 $
137.0 (4)% 0.1% (4)% $ 518.8 $ 532.6 (3)% (0.2)% (2)% Other
Enterprise Risk Management 78.5 71.3 10% 0.0% 10%
259.1 215.6 20% (0.3)% 20% Total Americas Risk
Management Solutions 210.0 208.3 1% 0.1% 1% 777.9 748.2 4% (0.2)%
4% Sales and Marketing Solutions Traditional Prospecting
Solutions $ 39.8 $ 44.3 (10)% 0.0% (10)% $ 147.9 $ 150.6 (2)%
(0.1)% (2)% Advanced Marketing Solutions 191.4 169.4
13% 0.0% 13% 493.4 450.2 10% (0.1)% 10% Total
Americas Sales and Marketing Solutions 231.2 213.7 8%
0.0% 8% 641.3 600.8 7% (0.1)% 7% Total
Americas Revenue $ 441.2 $ 422.0 5% 0.1% 4% $ 1,419.2 $ 1,349.0 5%
(0.1)% 5%
Non-Americas: Risk Management Solutions
Trade Credit $ 43.5 $ 45.8 (5)% (7.5)% 2% $ 169.4 $ 181.5 (7)%
(5.2)% (1)% Other Enterprise Risk Management 17.9
18.3 (2)% (6.8)% 5% 67.0 63.4 6% (5.5)% 11% Total
Non-Americas Risk Management Solutions 61.4 64.1 (4)% (7.3)% 3%
236.4 244.9 (3)% (5.2)% 2% Sales and Marketing Solutions
Traditional Prospecting Solutions $ 4.8 $ 5.4 (10)% (4.2)% (6)% $
16.6 $ 18.4 (9)% (4.5)% (5)% Advanced Marketing Solutions
9.7 12.9 (25)% (11.7)% (13)% 34.6 44.7 (23)%
(7.1)% (16)% Total Non-Americas Sales and Marketing Solutions
14.5 18.3 (21)% (9.5)% (11)% 51.2 63.1
(19)% (6.3)% (13)% Total Non-Americas Revenue $ 75.9 $ 82.4
(8)% (7.8)% 0% $ 287.6 $ 308.0 (7)% (5.4)% (1)%
Total
Corporation: Risk Management Solutions Trade Credit $ 175.0 $
182.8 (4)% (1.8)% (2)% $ 688.2 $ 714.1 (4)% (1.4)% (2)% Other
Enterprise Risk Management 96.4 89.6 8% (1.4)% 9%
326.1 279.0 17% (1.5)% 18% Total Risk Management
Solutions 271.4 272.4 0% (1.7)% 1% 1,014.3 993.1 2% (1.4)% 4%
Sales and Marketing Solutions Traditional Prospecting
Solutions $ 44.6 $ 49.7 (10)% (0.5)% (10)% $ 164.5 $ 169.0 (3)%
(0.6)% (2)% Advanced Marketing Solutions 201.1 182.3
10% (0.8)% 11% 528.0 494.9 7% (0.7)% 7% Total Sales
and Marketing Solutions 245.7 232.0 6% (0.7)% 7%
692.5 663.9 4% (0.7)% 5% Total Revenue $ 517.1
$ 504.4 2% (1.3)% 4% $ 1,706.8 $ 1,657.0 3% (1.1)% 4%
Trade Credit Revenue: Americas: DNBi $ 96.4 $ 97.6
(1)% 0.0% (1)% $ 380.6 $ 391.5 (3)% (0.2)% (3)% Other Trade Credit
35.1 39.4 (11)% 0.2% (11)% 138.2 141.1
(2)% (0.2)% (2)% Total Americas Trade Credit Revenue 131.5 137.0
(4)% 0.1% (4)% 518.8 532.6 (3)% (0.2)% (2)%
Non-Americas: DNBi $ 5.4 $ 6.2 (14)% (9.9)% (4)% $ 23.7 $
25.2 (6)% (6.2)% 0% Other Trade Credit 38.1 39.6 (4)%
(7.1)% 3% 145.7 156.3 (7)% (5.0)% (2)% Total
Non-Americas Trade Credit Revenue 43.5 45.8 (5)% (7.5)% 2% 169.4
181.5 (7)% (5.2)% (1)%
Total Corporation: DNBi $
101.8 $ 103.8 (2)% (0.6)% (1)% $ 404.3 $ 416.7 (3)% (0.5)% (2)%
Other Trade Credit 73.2 79.0 (7)% (3.4)% (4)%
283.9 297.4 (5)% (2.7)% (2)% Total Trade Credit Revenue $
175.0 $ 182.8 (4)% (1.8)% (2)% $ 688.2 $ 714.1 (4)% (1.4)% (2)%
Total Revenue: Americas: Direct $ 394.4 $
384.3 3% 0.0% 3% $ 1,285.6 $ 1,236.1 4% (0.2)% 4% Alliances &
Partners 46.8 37.7 24% 0.5% 24% 133.6
112.9 18% 0.4% 18% Total Americas Revenue 441.2 422.0 5% 0.1% 4%
1,419.2 1,349.0 5% (0.1)% 5%
Non-Americas: Direct $
47.7 $ 57.0 (16)% (8.7)% (8)% $ 191.4 $ 214.2 (11)% (6.2)% (4)%
Alliances & Partners 28.2 25.4 11% (5.8)% 17%
96.2 93.8 2% (3.7)% 6% Total Non-Americas Revenue
75.9 82.4 (8)% (7.8)% 0% 287.6 308.0 (7)% (5.4)% (1)%
Total Corporation: Direct $ 442.1 $ 441.3 0% (1.1)% 1% $
1,477.0 $ 1,450.3 2% (1.1)% 3% Alliances & Partners 75.0
63.1 19% (2.1)% 21% 229.8 206.7 11% (1.5)% 13%
Total Revenue $ 517.1 $ 504.4 2% (1.3)% 4% $ 1,706.8 $ 1,657.0 3%
(1.1)% 4%
* As Adjusted includes the effect of
divesting our operations in Benelux and Latin America
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 6 (Notes to Schedules) for
a reconciliation of each of these As Adjusted metrics to the
corresponding GAAP metrics.
The Dun & Bradstreet Corporation Schedule
5 Supplemental Financial Data (unaudited)
Quarter Ended Full Year December 31,
AFX December 31, AFX % Change %
Change Amounts in millions
2016 2015
Fav/(Unfav) 2016 2015 Fav/(Unfav)
Operating Costs (GAAP): Operating Expenses $ 146.5 $
144.9 (1)% $ 542.6 $ 544.7 0% Selling and Administrative Expenses
186.9 192.4 3% 711.2 664.4 (7)% Depreciation and Amortization 17.7
16.1 (9)% 68.6 58.7 (17)% Restructuring Expense 3.3
17.2 81% 22.1 32.3 32%
Total Operating Costs (GAAP) $ 354.4 $ 370.6
4% $ 1,344.5 $ 1,300.1 (3)%
Capital
Expenditures (GAAP) $ 2.3 $ 6.0 62% $ 14.4
$ 12.8 (12)%
Additions to Computer Software &
Other Intangibles (GAAP) $ 10.0 $ 15.4 35% $ 45.8
$ 52.0 12%
Operating Costs (As
Adjusted): Operating Expenses $ 146.5 $ 142.6 (3)% $ 542.6 $
542.4 0% Selling and Administrative Expenses 178.2 177.4 0% 671.3
636.4 (5)% Depreciation and Amortization 11.7 10.0 (15)% 44.4 40.9
(8)% Restructuring Expense - - N/M
- - N/M Total Operating Costs
(As Adjusted) $ 336.4 $ 330.0 (2)% $ 1,258.3 $
1,219.7 (3)%
Quarter
Ended Full Year December 31, December 31,
Amounts in millions
2016 2015 2016
2015 Operating Expenses (GAAP): $
146.5 $ 144.9 $ 542.6 $
544.7 Impaired Asset - Data Management and Back Office
Infrastructure - (2.2 ) - (2.2 ) Impaired Assets - Parsippany, NJ
Building - (0.1 ) - (0.1
)
Operating Expenses (As Adjusted) $
146.5 $ 142.6 $
542.6 $ 542.4 Selling
and Admin (GAAP) $ 186.9 $ 192.4
$ 711.2 $ 664.4 Legal and Other
Professional Fees and Shut-Down
(Costs) Recoveries Related to Matters In
China
(0.4 ) (0.4 ) (2.0 ) (1.6 ) Accrual for Legal Matters - - (26.0 ) -
Impairment for China (2.4 ) - (2.4 ) - Acquisition/Divestiture
Related Costs (5.9 ) (10.1 ) (9.5 ) (21.9 ) Impaired Asset - Data
Management and Back Office Infrastructure -
(4.5 ) - (4.5 )
Selling and Admin
(As Adjusted) $ 178.2 $
177.4 $ 671.3 $
636.4 Depreciation and Amortization
(GAAP) $ 17.7 $ 16.1 $
68.6 $ 58.7 Amortization of Acquisition
Related Intangibles (6.0 ) (6.1 ) (24.2 )
(17.8 )
Depreciation and Amortization (As
Adjusted) $ 11.7 $ 10.0
$ 44.4 $ 40.9
Restructuring (GAAP) $ 3.3 $
17.2 $ 22.1 $ 32.3 Restructuring
(3.3 ) (17.2 ) (22.1 ) (32.3 )
Restructuring (As Adjusted) $ -
$ - $ - $ -
Quarter Ended Amounts in
millions
Dec 31, 2016 Sep 30, 2016 Jun 30,
2016 Mar 31, 2016 Dec 31, 2015 Net Debt
Position: Cash and Cash Equivalents $ 352.6 $ 327.3 $ 379.1 $
365.7 $ 365.7 Short-Term Debt (22.5 ) (20.0 ) (20.0) (20.0 ) (20.0
) Long-Term Debt (1,594.5 ) (1,586.4 )
(1,715.6) (1,725.4 ) (1,797.0 ) Net Debt $
(1,264.4 ) $ (1,279.1 ) $ (1,356.5) $ (1,379.7 ) $ (1,451.3 )
Full Year
Amounts in millions
Dec 31, 2016 Dec 31, 2015
% Change Fav/
(Unfav)
Free Cash Flow: Net Cash Provided By Operating
Activities - Continuing Operations (GAAP) $ 322.7 $ 336.8 (4 )%
Less: Capital Expenditures (GAAP) 14.4 12.8 (12 )% Additions to
Computer Software & Other Intangibles (GAAP) 45.8
52.0 12 % Free Cash Flow $ 262.5 $ 272.0 (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 6 (Notes to Schedules) for
a reconciliation of each of these As Adjusted metrics to the
corresponding GAAP metrics.
The Dun & Bradstreet Corporation Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of
Non-GAAP Measures (1 ) The
following table reconciles Americas Total Revenue included in
Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31, Amounts in millions
2016 2015 2016 2015 Americas
Total Revenue (GAAP) (Schedule 1) $ 441.2 $ 416.9 $ 1,416.1 $
1,329.1 Acquisition Related Deferred Revenue Fair Value Adjustment
- (5.1 ) (3.1 ) (19.9 )
Americas Total Revenue (As Adjusted) (Schedule 2) $ 441.2 $
422.0 $ 1,419.2 $ 1,349.0
(2
) The following table reconciles Total Revenue included in
Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31, Amounts in millions
2016 2015 2016 2015 Total
Revenue (GAAP) (Schedule 1) $ 517.1 $ 499.3 $ 1,703.7 $ 1,637.1
Acquisition Related Deferred Revenue Fair Value Adjustment -
(5.1 ) (3.1 ) (19.9 ) Total
Revenue (As Adjusted) (Schedule 2) $ 517.1 $ 504.4 $
1,706.8 $ 1,657.0
(3 ) The
following table reconciles Americas Operating Income included in
Schedule 1 and Schedule 2:
Quarter Ended Full
Year December 31, December 31, Amounts in
millions
2016 2015 2016 2015
Americas Operating Income (GAAP) (Schedule 1) $ 175.6 $ 147.8 $
429.5 $ 369.3 Acquisition/Divestiture Related Costs (5.7 )
(8.8 ) (8.2 ) (10.4 ) Amortization of Acquisition Related
Intangibles (6.0 ) (6.1 ) (24.2 ) (17.8 ) Acquisition Related
Deferred Revenue Fair Value Adjustment - (5.1 ) (3.1 ) (19.9 )
Impaired Asset - Data Management and Back Office Infrastructure -
(6.7 ) - (6.7 ) Impaired Assets - Parsippany, NJ Building -
(0.1 ) - (0.1 ) Americas
Operating Income (As Adjusted) (Schedule 2) $ 187.3 $ 174.6
$ 465.0 $ 424.2
(4 ) The
following table reconciles Non-Americas Operating Income included
in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31, Amounts in millions
2016 2015 2016 2015 Non-Americas
Operating Income (GAAP) (Schedule 1) $ 12.2 $ 19.7 $ 59.4 $ 83.1
Legal and Other Professional Fees and Shut-Down (Costs)
Recoveries Related to Matters In China - 0.1 (0.1 ) 0.6
Acquisition/Divestiture Related Costs - - (0.3 ) (0.2 ) Impairment
of Certain Intangible Assets in China (2.4 ) -
(2.4 ) - Non-Americas Operating Income
(As Adjusted) (Schedule 2) $ 14.6 $ 19.6 $ 62.2
$ 82.7
(5 ) The following table
reconciles Corporate and Other expenses included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year December
31, December 31, Amounts in millions
2016
2015 2016 2015 Corporate and Other
(GAAP) (Schedule 1) $ (25.1 ) $ (38.8 ) $ (129.7 ) $ (115.4 )
Restructuring Charges (3.3 ) (17.2 ) (22.1 ) (32.3 ) Legal
and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China (0.4 ) (0.5 ) (1.9 ) (2.2 ) Accrual for
Legal Matters - - (26.0 ) - Acquisition/Divestiture Related Costs
(0.2 ) (1.3 ) (1.0 ) (11.3 )
Corporate and Other (As Adjusted) (Schedule 2) $ (21.2 ) $ (19.8 )
$ (78.7 ) $ (69.6 )
(6 ) The following table
reconciles Total Operating Income included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year December
31, December 31, Amounts in millions
2016
2015 2016 2015 Total Operating Income
(GAAP) Schedule 1) $ 162.7 $ 128.7 $ 359.2 $ 337.0
Restructuring Charges (3.3 ) (17.2 ) (22.1 )
(32.3 ) Legal and Other Professional Fees and Shut-Down (Costs)
Recoveries Related to Matters In China (0.4 ) (0.4 ) (2.0 ) (1.6 )
Accrual for Legal Matters - - (26.0 ) - Acquisition/Divestiture
Related Costs (5.9 ) (10.1 ) (9.5 ) (21.9 ) Amortization of
Acquisition Related Intangibles (6.0 ) (6.1 ) (24.2 ) (17.8 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (5.1 )
(3.1 ) (19.9 ) Impaired Asset - Data Management and Back Office
Infrastructure - (6.7 ) - (6.7 ) Impaired Assets - Parsippany, NJ
Building - (0.1 ) - (0.1 ) Impairment of Certain Intangible Assets
in China (2.4 ) - (2.4 ) -
Total Operating Income (As Adjusted) (Schedule 2) $
180.7 $ 174.4 $ 448.5 $ 437.3
(7 ) The following table reconciles Net Income
Attributable to Dun & Bradstreet included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year December
31, December 31, Amounts in millions
2016
2015 2016 2015 Net Income Attributable
to Dun & Bradstreet (GAAP) (Schedule 1) $ 78.0 $ 76.7 $ 97.4 $
168.8 Restructuring Charges (2.2 ) (10.8 ) (14.4 ) (20.6 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries
Related to Matters In China (0.2 ) (0.3 ) (1.3 ) (0.8 ) Accrual for
Legal Matters (0.6 ) - (22.6 ) - Acquisition/Divestiture Related
Costs (5.6 ) (9.1 ) (8.0 ) (18.4 ) Amortization of Acquisition
Related Intangibles (3.8 ) (3.7 ) (15.1 ) (11.0 ) Acquisition
Related Deferred Revenue Fair Value Adjustment 0.1 (3.2 ) (2.1 )
(13.6 ) Impaired Asset - Data Management and Back Office
Infrastructure - (4.7 ) - (4.7 ) Impairment of Certain Intangible
Assets in China (2.4 ) - (2.4 ) - Effect of Legacy and Other Tax
Matters - - 1.7 7.4 Gain (Loss) on Investment (6.7 ) - (6.7 ) (0.9
) Gain (Loss) on Sale of Businesses (8.2 ) - (97.8 ) - Tax Impact
on Repatriation of Foreign Earnings - 2.9
- 2.9 After-Tax Impact
(29.6 ) (28.9 ) (168.7 ) (59.7 ) Income (Loss) From
Discontinued Operations, Net of Income Taxes (3.2 )
0.8 (4.1 ) (35.4 ) Net Income
Attributable to Dun & Bradstreet (As Adjusted) (Schedule 2) $
110.8 $ 104.8 $ 270.2 $ 263.9
(8 ) The following table reconciles Diluted Earnings
Per Share Of Common Stock included in Schedule 1 and Schedule 2:
Quarter Ended Full Year December 31,
December 31, 2016 2015 2016 2015
Diluted EPS Attributable to Dun & Bradstreet Common
Shareholders (GAAP) (Schedule 1) $ 2.10 $ 2.11 $ 2.65 $ 4.64
Restructuring Charges
(0.06
) (0.29 ) (0.39 ) (0.57 ) Legal and Other Professional Fees and
Shut-Down (Costs) Recoveries Related to Matters In China (0.01 )
(0.01 ) (0.04 ) (0.02 ) Accrual for Legal Matters (0.02 ) - (0.61 )
- Acquisition/Divestiture Related Costs (0.15 ) (0.25 ) (0.22 )
(0.51 ) Amortization of Acquisition Related Intangibles (0.10 )
(0.10 ) (0.41 ) (0.30 ) Acquisition Related Deferred Revenue Fair
Value Adjustment - (0.09 ) (0.06 ) (0.38 ) Impaired Asset - Data
Management and Back Office Infrastructure - (0.13 ) - (0.13 )
Impairment of Certain Intangible Assets in China (0.06 ) - (0.06 )
- Effect of Legacy and Other Tax Matters - - 0.04 0.21 Gain (Loss)
on Investment (0.18 ) - (0.18 ) (0.02 ) Gain (Loss) on Sale of
Businesses (0.22 ) - (2.66 ) - Tax Impact on Repatriation of
Foreign Earnings - 0.08 - 0.08 Discontinued Operations (0.09
) 0.03 (0.11 ) (0.97 ) Diluted
EPS Attributable to Dun & Bradstreet Common Shareholders (As
Adjusted) (Schedule 2) $ 2.99 $ 2.87 $ 7.35 $
7.25
(9 ) The following table
reconciles Other Income (Expense)-Net included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year December
31, December 31, Amounts in millions
2016
2015 2016 2015 Other Income
(Expense)-Net (GAAP) (Schedule 1) $ (12.4 ) $ (0.2 ) $ (104.3 ) $
(7.6 ) Effect of Legacy and Other Tax Matters - - (1.7 ) (6.9 )
Gain (Loss) on Investment (6.7 ) - (6.7 ) (1.2 ) Gain (Loss) on
Sale of Businesses (5.5 ) - (95.1 ) - Acquisition/Divestiture
Related Costs - - (0.1 )
(0.3 ) Other Income (Expense)-Net (As Adjusted) (Schedule 2)
$ (0.2 ) $ (0.2 ) $ (0.7 ) $ 0.8
(10
) The following table reconciles Non-Operating Income
(Expense)-Net included in Schedule 1 and Schedule 2:
Quarter
Ended Full Year December 31, December 31,
Amounts in millions
2016 2015 2016 2015
Non-Operating Income (Expense) - Net (GAAP) (Schedule 1) $ (25.0 )
$ (13.7 ) $ (155.6 ) $ (57.0 ) Effect of Legacy and Other Tax
Matters - - (1.7 ) (6.9 ) Gain (Loss) on Investment (6.7 ) - (6.7 )
(1.2 ) Gain (Loss) on Sale of Businesses (5.5 ) - (95.1 ) -
Acquisition/Divestiture Related Costs - -
(0.1 ) (0.3 ) Non-Operating Income
(Expense) - Net (As Adjusted) (Schedule 2) $ (12.8 ) $ (13.7 ) $
(52.0 ) $ (48.6 )
(11 ) The following table
reconciles Provision for Income Taxes included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year December
31, December 31, Amounts in millions
2016
2015 2016 2015 Provision for Income
Taxes (GAAP) (Schedule 1) $ 54.9 $ 37.7 $ 99.9 $ 74.2
Restructuring Charges (1.1 ) (6.4 ) (7.7 ) (11.7 ) Legal and Other
Professional Fees and Shut-Down (Costs) Recoveries Related to
Matters In China (0.2 ) (0.1 ) (0.7 ) (0.8 ) Accrual for Legal
Matters 0.6 - (3.4 ) - Acquisition/Divestiture Related Costs (0.3 )
(1.0 ) (1.6 ) (3.8 ) Amortization of Acquisition Related
Intangibles (2.2 ) (2.4 ) (9.1 ) (6.8 ) Acquisition Related
Deferred Revenue Fair Value Adjustment (0.1 ) (1.9 ) (1.0 ) (6.3 )
Impaired Asset - Data Management and Back Office Infrastructure -
(2.0 ) - (2.0 ) Impaired Assets - Parsippany, NJ Building - (0.1 )
- (0.1 ) Effect of Legacy and Other Tax Matters - - (3.4 ) (14.3 )
Gain (Loss) on Investment - - - (0.3 ) Gain (Loss) on Sale of
Businesses 2.7 - 2.7 - Tax Impact on Repatriation of Foreign
Earnings - (2.9 ) - (2.9
) Provision for Income Taxes (As Adjusted) (Schedule 2) $
55.5 $ 54.5 $ 124.1 $ 123.2
The Dun &
Bradstreet Corporation Schedule 6 Notes to Schedules
1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
Quarter Ended December 31, 2016 Quarter Ended
December 31, 2015 Amounts in millions
GAAP (Sched 3)
Acquisition Related
Deferred Revenue
As Adjusted* (Sched 4)
GAAP (Sched 3)
Acquisition Related
Deferred Revenue
As Adjusted* (Sched 4)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 131.5 $ -
$ 131.5 $ 136.5 $ 0.5 $ 137.0 Other Enterprise Risk Management
78.5 - 78.5 67.8 3.5 71.3
Total Americas Risk Management Solutions 210.0 - 210.0 204.3 4.0
208.3 Sales and Marketing Solutions Traditional Prospecting
Solutions $ 39.8 $ - $ 39.8 $ 43.4 $ 0.9 $ 44.3 Advanced Marketing
Solutions 191.4 - 191.4 169.2
0.2 169.4 Total Americas Sales and Marketing Solutions 231.2
- 231.2 212.6 1.1 213.7
Total Americas Revenue $ 441.2 - $ 441.2 $ 416.9 5.1 $ 422.0
Non-Americas: Risk Management Solutions Trade Credit $ 43.5
$ - $ 43.5 $ 45.8 $ - $ 45.8 Other Enterprise Risk Management
17.9 - 17.9 18.3 - 18.3
Total Non-Americas Risk Management Solutions 61.4 - 61.4 64.1 -
64.1 Sales and Marketing Solutions Traditional Prospecting
Solutions $ 4.8 $ - $ 4.8 $ 5.4 $ - $ 5.4 Advanced Marketing
Solutions 9.7 - 9.7 12.9 -
12.9 Total Non-Americas Sales and Marketing Solutions 14.5 -
14.5 18.3 - 18.3 Total
Non-Americas Revenue $ 75.9 $ - $ 75.9 $ 82.4 $ - $ 82.4
Total Corporation: Risk Management Solutions Trade Credit $
175.0 $ - $ 175.0 $ 182.3 $ 0.5 $ 182.8 Other Enterprise Risk
Management 96.4 - 96.4 86.1 3.5
89.6 Total Risk Management Solutions 271.4 - 271.4 268.4 4.0
272.4 Sales and Marketing Solutions Traditional Prospecting
Solutions $ 44.6 $ - $ 44.6 $ 48.8 $ 0.9 $ 49.7 Advanced Marketing
Solutions 201.1 - 201.1 182.1
0.2 182.3 Total Sales and Marketing Solutions 245.7 - 245.7
230.9 1.1 232.0 Total
Revenue $ 517.1 $ - $ 517.1 $ 499.3 5.1 $ 504.4
Trade Credit Revenue: Americas: DNBi $ 96.4 $ - $
96.4 $ 97.5 $ 0.1 $ 97.6 Other Trade Credit 35.1 -
35.1 39.0 0.4 39.4 Total Americas Trade
Credit Revenue 131.5 - 131.5 136.5 0.5 137.0
Non-Americas: DNBi $ 5.4 $ - $ 5.4 $ 6.2 $ - $ 6.2 Other
Trade Credit 38.1 - 38.1 39.6 -
39.6 Total Non-Americas Trade Credit Revenue 43.5 - 43.5
45.8 - 45.8
Total Corporation: DNBi $ 101.8 $ - $
101.8 $ 103.7 $ 0.1 $ 103.8 Other Trade Credit 73.2 -
73.2 78.6 0.4 79.0 Total Trade Credit
Revenue $ 175.0 $ - $ 175.0 $ 182.3 $ 0.5 $ 182.8
Total
Revenue: Americas: Direct $ 394.4 $ - $ 394.4 $ 379.2 $
5.1 $ 384.3 Alliances & Partners 46.8 -
46.8 37.7 - 37.7 Total Americas Revenue 441.2
- 441.2 416.9 5.1 422.0
Non-Americas: Direct $ 47.7 $
- $ 47.7 $ 57.0 $ - $ 57.0 Alliances & Partners 28.2
- 28.2 25.4 - 25.4 Total
Non-Americas Revenue 75.9 - 75.9 82.4 - 82.4
Total
Corporation: Direct $ 442.1 $ - $ 442.1 $ 436.2 $ 5.1 $ 441.3
Alliances & Partners 75.0 - 75.0
63.1 - 63.1 Total Revenue $ 517.1 $ - $ 517.1 $ 499.3
5.1 $ 504.4
* As Adjusted includes the effect of divesting our operations
in Benelux and Latin America
The Dun &
Bradstreet Corporation Schedule 6 Notes to Schedules
1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
Full Year December 31, 2016 Full Year December 31,
2015 Amounts in millions
GAAP (Sched 3)
Acquisition Related
Deferred Revenue
As Adjusted* (Sched 4)
GAAP (Sched 3)
Acquisition Related
Deferred Revenue
As Adjusted* (Sched 4)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 518.5 $
0.3 $ 518.8 $ 530.7 $ 1.9 $ 532.6 Other Enterprise Risk Management
256.9 2.2 259.1 202.7 12.9
215.6 Total Americas Risk Management Solutions 775.4 2.5
777.9 733.4 14.8 748.2 Sales and Marketing Solutions
Traditional Prospecting Solutions $ 147.3 $ 0.6 $ 147.9 $ 147.2 $
3.4 $ 150.6 Advanced Marketing Solutions 493.4 -
493.4 448.5 1.7 450.2 Total Americas
Sales and Marketing Solutions 640.7 0.6 641.3 595.7 5.1 600.8
Total Americas Revenue $
1,416.1 $ 3.1 $ 1,419.2 $ 1,329.1 19.9 $ 1,349.0
Non-Americas: Risk Management Solutions Trade Credit $ 169.4
$ - $ 169.4 $ 181.5 $ - $ 181.5 Other Enterprise Risk Management
67.0 - 67.0 63.4 - 63.4
Total Non-Americas Risk Management Solutions 236.4 - 236.4 244.9 -
244.9 Sales and Marketing Solutions Traditional Prospecting
Solutions $ 16.6 $ - $ 16.6 $ 18.4 $ - $ 18.4 Advanced Marketing
Solutions 34.6 - 34.6 44.7 -
44.7 Total Non-Americas Sales and Marketing Solutions 51.2 -
51.2 63.1 - 63.1 Total
Non-Americas Revenue $ 287.6 $ - $ 287.6 $ 308.0 $ - $ 308.0
Total Corporation: Risk Management Solutions Trade Credit $
687.9 $ 0.3 $ 688.2 $ 712.2 $ 1.9 $ 714.1 Other Enterprise Risk
Management 323.9 2.2 326.1 266.1
12.9 279.0 Total Risk Management Solutions 1,011.8 2.5
1,014.3 978.3 14.8 993.1 Sales and Marketing Solutions
Traditional Prospecting Solutions $ 163.9 $ 0.6 $ 164.5 $ 165.6 $
3.4 $ 169.0 Advanced Marketing Solutions 528.0 -
528.0 493.2 1.7 494.9 Total Sales and
Marketing Solutions 691.9 0.6 692.5 658.8 5.1 663.9
Total Revenue $ 1,703.7 $ 3.1 $ 1,706.8
$ 1,637.1 19.9 $ 1,657.0
Trade Credit Revenue:
Americas: DNBi $ 380.5 $ 0.1 $ 380.6 $ 391.0 $ 0.5 $ 391.5
Other Trade Credit 138.0 0.2 138.2
139.7 1.4 141.1 Total Americas Trade Credit Revenue
518.5 0.3 518.8 530.7 1.9 532.6
Non-Americas: DNBi $
23.7 $ - $ 23.7 $ 25.2 $ - $ 25.2 Other Trade Credit 145.7
- 145.7 156.3 - 156.3 Total
Non-Americas Trade Credit Revenue 169.4 - 169.4 181.5 - 181.5
Total Corporation: DNBi $ 404.2 $ 0.1 $ 404.3 $ 416.2
$ 0.5 $ 416.7 Other Trade Credit 283.7 0.2
283.9 296.0 1.4 297.4 Total Trade Credit
Revenue $ 687.9 $ 0.3 $ 688.2 $ 712.2 $ 1.9 $ 714.1
Total
Revenue: Americas: Direct $ 1,282.5 $ 3.1 $ 1,285.6 $
1,216.7 $ 19.4 $ 1,236.1 Alliances & Partners 133.6
- 133.6 112.4 0.5 112.9 Total
Americas Revenue 1,416.1 3.1 1,419.2 1,329.1 19.9 1,349.0
Non-Americas: Direct $ 191.4 $ - $ 191.4 $ 214.2 $ - $ 214.2
Alliances & Partners 96.2 - 96.2
93.8 - 93.8 Total Non-Americas Revenue 287.6 - 287.6
308.0 - 308.0
Total Corporation: Direct $ 1,473.9 $
3.1 $ 1,477.0 $ 1,430.9 $ 19.4 $ 1,450.3 Alliances & Partners
229.8 - 229.8 206.2 0.5
206.7 Total Revenue $ 1,703.7 $ 3.1 $ 1,706.8 $ 1,637.1 19.9
$ 1,657.0
* As Adjusted includes the effect of
divesting our operations in Benelux and Latin America
The Dun & Bradstreet Corporation
Schedule 6 Notes to Schedules 1, 2, 3, and 4 (unaudited)
and Definitions of Non-GAAP Measures N/M - Not
Meaningful The following defines the non-GAAP
measures used to evaluate performance:
In addition to reporting generally
accepted accounting principles in the United States of America
(“GAAP”) results, the Company evaluates performance and reports on
a total company basis and on a business segment level basis its
results (such as revenue, operating income, operating income
growth, operating margin, net income, tax rate and diluted earnings
per share) on an “As Adjusted” basis. The term “As Adjusted” refers
to the following: the elimination of the effect on revenue due to
purchase accounting fair value adjustments to deferred revenue;
restructuring charges; other non-core gains and charges that are
not in the normal course of our business (such as gains and losses
on sales of businesses, impairment charges and material tax and
legal settlements); acquisition and divestiture-related fees (such
as costs for bankers, legal fees, diligence costs, retention
payments, and contingent consideration adjustments); and
acquisition-related intangible amortization expense. A recurring
component of our “As Adjusted” basis is our restructuring charges,
which we believe do not reflect our underlying business
performance. Such charges are variable from period to period based
upon actions identified and taken during each period. Additionally,
our “As Adjusted” results exclude the results of Discontinued
Operations. Management reviews operating results on an “As
Adjusted” basis on a monthly basis and establishes internal budgets
and forecasts based upon such measures. Management further
establishes annual and long-term compensation such as salaries,
target cash bonuses and target equity compensation amounts based on
performance on an “As Adjusted” basis and a significant percentage
weight is placed upon performance on an “As Adjusted” basis in
determining whether performance objectives have been achieved.
Management believes that by reflecting these adjustments to our
GAAP financial measures, business leaders are provided incentives
to recommend and execute actions that support our long-term growth
strategy rather than being influenced by the potential impact one
of these items can have in a particular period on their
compensation. The Company adjusts for these items because they do
not reflect the Company’s underlying business performance and they
may have a disproportionate positive or negative impact on the
results of its ongoing business operations. We believe that the use
of our non-GAAP financial measures provides useful supplemental
information to our investors.
We also isolate the effects of changes
in foreign exchange rates on our revenue growth because we believe
it is useful for investors to be able to compare revenue from one
period to another, both after and before the effects of foreign
exchange. The change in our operating performance attributable to
foreign currency rates is determined by converting both our prior
and current periods by a constant rate. As a result, we monitor our
“As Adjusted” revenue growth both after and before the effects of
foreign exchange.
We also analyze “As Adjusted” revenue
growth on an organic basis because management believes this
information provides important insight into the underlying/ongoing
performance of the business. Organic revenue excludes
revenue 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170208006197/en/
Dun & BradstreetMedia:Deborah McBride,
973-921-5714mcbrided@dnb.comorInvestors/Analysts:Kathy Guinnessey,
973-921-5892Kathy.Guinnessey@dnb.com
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