- Increases Quarterly Dividend
Dun & Bradstreet (NYSE: DNB) reported results for the fourth
quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Highlights
Quarter Ended AFX
BFX December 31, % Change %
Change (Amounts in millions, except per share data)
2017
2016
Fav (Unfav) Fav (Unfav) GAAP Revenue $ 527.0 $ 517.1
2% 1% As Adjusted Revenue $ 528.3 $ 517.1 2% 1% Organic Revenue $
512.9 $ 510.3 0% GAAP Operating Income $ 170.4 $ 162.7 5% As
Adjusted Operating Income $ 191.9 $ 180.7 6% GAAP Diluted
Earnings (Loss) Per Share(1) $ 0.70 $ 2.10 (67)% As Adjusted
Diluted Earnings (Loss) Per Share $ 3.22 $ 2.99 8% (1)
Quarter ended December 31, 2017 GAAP Diluted Earnings per share
includes a $2.12 non-cash charge related to the impact of the 2017
Tax Cuts and Jobs Act.
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, 2017 was
$684.4 million, up 9% year over year; Americas was $604.5 million,
up 7% year over year and Non-Americas was $79.9 million, up 25%
year over year. After adjusting for the effect of foreign exchange
and acquisitions and dispositions, total Company deferred revenue
was up 3%, with each of Americas and Non-Americas deferred revenue
up 3% as compared to last year.
Fourth Quarter 2017 Segment Results
Americas
- GAAP revenue of $448.1 million, up 2%
year over year after the effect of foreign exchange (up 1% before
the effect of foreign exchange); As Adjusted revenue of $449.4
million, up 2% year over year both after and before the effect of
foreign exchange;
- GAAP operating income of $185.6
million, up 6% year over year; As Adjusted operating income of
$196.9 million, up 5% year over year.
Non-Americas
- GAAP revenue and As Adjusted revenue of
$78.9 million, each up 4% year over year after the effect of
foreign exchange (down 1% before the effect of foreign
exchange);
- GAAP operating income of $21.2 million,
up 74% year over year. As Adjusted operating income of $21.5
million, up 47% year over year.
See attached Schedules 3, 4, 5, and 6 for additional detail.
Full Year 2017 Highlights
Full Year Ended AFX
BFX December 31, % Change %
Change (Amounts in millions, except per share data)
2017 2016 Fav (Unfav)
Fav (Unfav) GAAP Revenue $ 1,742.5 $ 1,703.7 2% 2% As
Adjusted Revenue $ 1,750.5 $ 1,706.8 3% 3% Organic Revenue $
1,689.1 $ 1,674.7 1% GAAP Operating Income $ 382.9 $ 359.2
7% As Adjusted Operating Income $ 462.5 $ 448.5 3% GAAP
Diluted Earnings (Loss) Per Share $ 3.79 $ 2.65 43% As Adjusted
Diluted Earnings (Loss) Per Share $ 7.36 $ 7.35 0%
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 2017 Segment Results
Americas
- GAAP revenue of $1,448.2 million, up 2%
year over year both after and before the effect of foreign
exchange; As Adjusted revenue of $1,456.2 million, up 3% year over
year both after and before the effect of foreign exchange;
- GAAP operating income of $419.1
million, down 2% year over year; As Adjusted operating income of
$468.5 million, up 1% year over year.
Non-Americas
- GAAP revenue and As Adjusted revenue of
$294.3 million, each up 2% year over year after the effect of
foreign exchange (up 3% before the effect of foreign
exchange);
- GAAP operating income of $84.0 million,
up 41% year over year. As Adjusted operating income of $85.1
million, up 37% 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 $0.5225 per share, up from the
Company’s prior quarterly dividend of $0.5025 per share. This
quarterly cash dividend is payable on March 9, 2018, to
shareholders of record as of the close of business on February 22,
2018.
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, 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 5 and 6 attached to this press
release.
Fourth Quarter 2017 Teleconference
As previously announced, Dun & Bradstreet will review its
fourth quarter and full year 2017 results in a conference call with
the investment community on Tuesday, February 13, 2018, 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 databases 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, publication and/or sale 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, publish and/or sell
data; and (xiv) 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 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 Ended AFX
Foreign BFX December 31, % Change
Exchange % Change December 31, % Change
Exchange % Change Dollar amounts in millions, except
per share data
2017 2016
Fav (Unfav) Fav (Unfav) Fav (Unfav)
2017 2016 Fav (Unfav)
Fav (Unfav) Fav (Unfav) Revenue:
Americas
(1) $ 448.1 $ 441.2 2 % 0.1 % 1 % $ 1,448.2 $
1,416.1 2 % 0.0 % 2 % Non-Americas 78.9 75.9 4 % 5.3 % (1 )% 294.3
287.6 2 % (0.2 )% 3 %
Total
Revenue (2) $ 527.0 $ 517.1 2 % 0.9 % 1 % $
1,742.5 $ 1,703.7 2 % 0.0 % 2 %
Operating
Income (Loss): Americas
(3) $ 185.6 $ 175.6 6 % $
419.1 $ 429.5 (2 )% Non-Americas
(4) 21.2 12.2 74 % 84.0
59.4 41 % Corporate and Other
(5) (36.4 ) (25.1 ) (45 )%
(120.2 ) (129.7 ) 7 %
Total
Operating Income (6) 170.4 162.7 5 % 382.9 359.2 7 %
Interest Income 0.4 0.4 17 % 1.6 1.8 (12 )% Interest Expense (14.8
) (13.0 ) (14 )% (59.7 ) (53.1 ) (12 )% Other Income (Expense) -
Net
(9) (1.2 ) (12.4 ) 90 % (2.1 ) (104.3 ) 98 %
Non-Operating Income (Expense) - Net
(10) (15.6 ) (25.0 ) 38 % (60.2 ) (155.6 ) 61 %
Income (Loss) Before Provision for
Income Taxes 154.8 137.7 12 % 322.7 203.6 58 % Less: Provision for
Income Taxes
(11) 128.6 54.9 N/M 179.7 99.9 (80 )% Equity in
Net Income (Loss) of Affiliates (0.4 ) (0.1 ) N/M 2.8 2.8 2 %
Net Income (Loss) From
Continuing Operations 25.8 82.7 (69 )% 145.8 106.5 37 % Less: Net
(Income) Loss Attributable to the Noncontrolling Interest
(12) 0.4 (1.5 ) N/M (4.1 ) (5.0 ) 18 %
Net Income (Loss) From Continuing Operations
Attributable to Dun & Bradstreet 26.2 81.2 (68 )% 141.7 101.5
40 % Income from Discontinued Operations, Net of Income Taxes - -
N/M - - N/M Loss on Disposal of Business, Net of Tax Impact - (3.2
) N/M (0.8 ) (4.1 ) 82 % Income (Loss)
from Discontinued Operations, Net of Income Taxes - (3.2 ) N/M (0.8
) (4.1 ) 82 %
Net Income
(Loss) Attributable to Dun & Bradstreet (7) $ 26.2 $
78.0 (66 )% $ 140.9 $ 97.4 45 %
Basic Earnings (Loss) Per Share: From Continuing
Operations $ 0.71 $ 2.21 (68 )% $ 3.84 $ 2.78 38 %
From
Discontinued Operations - (0.09 ) N/M (0.02 ) (0.11 ) 82 %
Basic Earnings (Loss) Per Share of
Common Stock
Attributable to Dun & Bradstreet
Common Shareholders
$ 0.71 $ 2.12 (67 )% $ 3.82 $ 2.67 43 %
Diluted Earnings (Loss) Per Share: From Continuing
Operations $ 0.70 $ 2.19 (68 )% $ 3.81 $ 2.76 38 %
From
Discontinued Operations - (0.09 ) N/M (0.02 ) (0.11 ) 82 %
Diluted Earnings (Loss) Per Share of
Common Stock
Attributable to Dun & Bradstreet
Common Shareholders (8)
$ 0.70 $ 2.10 (67 )% $ 3.79 $ 2.65 43 %
Weighted Average Number of
Shares Outstanding: Basic 37.0 36.8
0 % 36.9 36.5 (1 )%
Diluted 37.3 37.1 0 %
37.2 36.8 (1 )%
Operating Margins
(Calculated on Total Revenue) Americas 41.4 % 39.8 %
28.9 % 30.3 % Non-Americas 26.9 % 16.0 % 28.5 % 20.6 % Total
Company 32.3 % 31.5 % 22.0 % 21.1 %
Effective Tax Rate 83.1 % 39.8 % 55.7 %
49.0 %
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 Ended
AFX Foreign BFX December 31, %
Change Exchange % Change December 31, %
Change Exchange % Change Dollar amounts in
millions, except per share data
2017
2016 Fav (Unfav) Fav (Unfav) Fav
(Unfav) 2017 2016 Fav
(Unfav) Fav (Unfav) Fav (Unfav)
Revenue: Americas
(1) $ 449.4 $ 441.2 2 % 0.1
% 2 % $ 1,456.2 $ 1,419.2 3 % 0.0 % 3 % Non-Americas 78.9 75.9 4 %
5.3 % (1 )% 294.3 287.6 2 % (0.2 )% 3 %
Total Revenue (2) $ 528.3 $ 517.1 2 %
0.9 % 1 % $ 1,750.5 $ 1,706.8 3 % 0.0 % 3 %
Organic Revenue:** Total Revenue $ 528.3 $ 517.1 1 %
$ 1,750.5 $ 1,706.8 3 % Less: Acquisitions 15.1 - N/M 57.7 - N/M
Net Divested 0.3 6.8 N/M 3.7 32.1 N/M
Organic Revenue $ 512.9 $ 510.3 0 % $
1,689.1 $ 1,674.7 1 %
Operating
Income (Loss): Americas
(3) $ 196.9 $ 187.3 5 % $
468.5 $ 465.0 1 % Non-Americas
(4) 21.5 14.6 47 % 85.1 62.2
37 % Corporate and Other
(5) (26.5 ) (21.2 ) (26 )% (91.1 )
(78.7 ) (16 )%
Total
Operating Income (6) $ 191.9 $ 180.7 6 % $ 462.5
$ 448.5 3 %
Net Income Attributable
to Dun & Bradstreet (7) $ 120.0 $ 110.8 8 % $
273.7 $ 270.2 1 %
Basic Earnings Per Share
of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders
$ 3.24 $ 3.01 8 % $ 7.41 $ 7.41 0 %
Diluted Earnings Per Share of Common Stock
Attributable to Dun & Bradstreet
Common Shareholders (8)
$ 3.22 $ 2.99 8 % $ 7.36 $ 7.35 0 %
Weighted Average Number of Shares Outstanding:
Basic 37.0 36.8 0 % 36.9
36.5 (1 )%
Diluted 37.3
37.1 0 % 37.2 36.8 (1 )%
Other
Information:
Interest Income $ 0.4 $ 0.4 17 % $ 1.6 $ 1.8 (12 )% Interest
Expense (14.8 ) (13.0 ) (14 )% (59.7 ) (53.1 ) (12 )% Other Income
(Expense) - Net
(9) (1.2 ) (0.2 ) N/M (1.4 ) (0.7 ) (79 )%
Non-Operating Income (Expense) - Net
(10) $ (15.6 ) $ (12.8 ) (21 )% $ (59.5 ) $ (52.0 ) (14 )%
Provision for Income Taxes
(11) $ 54.6 $ 55.5
2 % $ 126.3 $ 124.1 (2 )% Equity in Net
Income (Loss) of Affiliates $ (0.4 ) $ (0.1 ) N/M $ 2.8 $
2.8 2 % Net (Income) Loss Attributable to the
Noncontrolling Interest
(12) $ (1.3 ) $ (1.5 ) 13 % $ (5.8 )
$ (5.0 ) (16 )%
Operating Margins (Calculated on Total
Revenue) Americas 43.8 % 42.4 % 32.2 % 32.8 %
Non-Americas 27.2 % 19.3 % 28.9 % 21.6 % Total Company 36.3
% 35.0 % 26.4 % 26.3 % Effective Tax
Rate 31.0 % 33.1 % 31.4 % 31.3 %
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 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
Ended Effects of December 31, AFX
Foreign BFX December 31, AFX
Foreign BFX % Change Exchange
% Change % Change Exchange %
Change Amounts in millions
2017
2016 Fav/(Unfav) Fav/(Unfav)
Fav/(Unfav) 2017 2016
Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 130.2 $
131.5 (1 )% 0.2 % (1 )% $ 503.0 $ 518.5 (3 )% 0.1 % (3 )% Other
Enterprise Risk Management 77.8 78.5 (1 )% 0.1 % (1
)% 272.9 256.9 6 % 0.0 % 6 % Total Americas Risk
Management Solutions 208.0 210.0 (1 )% 0.1 % (1 )% 775.9 775.4 0 %
0.1 % 0 % Sales and Marketing Solutions Sales Acceleration $
84.3 $ 77.7 9 % 0.1 % 8 % $ 288.4 $ 263.3 10 % 0.0 % 10 % Advanced
Marketing Solutions 155.8 153.5 2 % 0.1 % 1 %
383.9 377.4 2 % 0.0 % 2 % Total Americas Sales and Marketing
Solutions 240.1 231.2 4 % 0.1 % 4 % 672.3 640.7 5 % 0.0 % 5 %
Total Americas Revenue $ 448.1 $ 441.2
2 % 0.1 % 1 % $ 1,448.2 $ 1,416.1 2 % 0.0 % 2 %
Non-Americas: Risk Management Solutions Trade Credit $ 43.8
$ 43.5 1 % 3.8 % (3 )% $ 170.5 $ 169.4 1 % (1.7 )% 2 % Other
Enterprise Risk Management 18.2 17.9 2 % 8.3 % (6 )%
63.4 67.0 (5 )% 4.0 % (9 )% Total Non-Americas Risk
Management Solutions 62.0 61.4 1 % 5.2 % (4 )% 233.9 236.4 (1 )%
0.1 % (1 )% Sales and Marketing Solutions Sales Acceleration
$ 7.5 $ 6.1 24 % 5.8 % 18 % $ 27.7 $ 19.9 39 % 0.8 % 38 % Advanced
Marketing Solutions 9.4 8.4 12 % 5.6 % 6 %
32.7 31.3 5 % (3.0 )% 8 % Total Non-Americas Sales and
Marketing Solutions 16.9 14.5 17 % 5.7 % 11 % 60.4 51.2 18 % (1.8
)% 20 % Total Non-Americas Revenue $
78.9 $ 75.9 4 % 5.3 % (1 )% $ 294.3 $ 287.6 2 % (0.2 )% 3 %
Total Corporation: Risk Management Solutions Trade Credit $
174.0 $ 175.0 (1 )% 1.1 % (2 )% $ 673.5 $ 687.9 (2 )% (0.3 )% (2 )%
Other Enterprise Risk Management 96.0 96.4 0 % 1.6 %
(2 )% 336.3 323.9 4 % 0.9 % 3 % Total Risk Management
Solutions 270.0 271.4 (1 )% 1.3 % (2 )% 1,009.8 1,011.8 0 % 0.1 % 0
% Sales and Marketing Solutions Sales Acceleration $ 91.8 $
83.8 10 % 0.5 % 9 % $ 316.1 $ 283.2 12 % 0.1 % 11 % Advanced
Marketing Solutions 165.2 161.9 2 % 0.3 % 2 %
416.6 408.7 2 % (0.2 )% 2 % Total Sales and Marketing
Solutions 257.0 245.7 5 % 0.4 % 4 % 732.7 691.9 6 % (0.1 )% 6 %
Total Revenue $ 527.0 $ 517.1 2 % 0.9 %
1 % $ 1,742.5 $ 1,703.7 2 % 0.0 % 2 %
Trade Credit
Revenue: Americas: D&B Credit Suite $ 95.3 $ 96.4 (1
)% 0.2 % (1 )% $ 376.4 $ 380.5 (1 )% 0.1 % (1 )% Other Trade Credit
34.9 35.1 (1 )% 0.1 % (1 )% 126.6 138.0
(8 )% 0.0 % (8 )% Total Americas Trade Credit Revenue 130.2 131.5
(1 )% 0.2 % (1 )% 503.0 518.5 (3 )% 0.1 % (3 )%
Non-Americas: D&B Credit Suite $ 5.6 $ 5.4 3 % 5.1 % (2
)% $ 19.9 $ 23.7 (16 )% (1.6 )% (15 )% Other Trade Credit
38.2 38.1 1 % 3.6 % (3 )% 150.6 145.7 3 % (1.7
)% 5 % Total Non-Americas Trade Credit Revenue 43.8 43.5 1 % 3.8 %
(3 )% 170.5 169.4 1 % (1.7 )% 2 %
Total Corporation:
D&B Credit Suite $ 100.9 $ 101.8 (1 )% 0.4 % (1 )% $ 396.3 $
404.2 (2 )% (0.1 )% (2 )% Other Trade Credit 73.1
73.2 0 % 1.9 % (2 )% 277.2 283.7 (2 )% (0.7 )% (2 )%
Total Trade Credit Revenue $ 174.0 $ 175.0 (1 )% 1.1 % (2 )% $
673.5 $ 687.9 (2 )% (0.3 )% (2 )%
D&B Hoovers
Suite Americas $ 42.6 $ 33.9 26 % 0.1 % 26 % $ 165.5 $ 136.1 22
% 0.0 % 22 % Non-Americas 5.3 0.6 N/M N/M N/M
16.0 3.1 N/M N/M N/M Total Corporation $ 47.9 $ 34.5 39 %
1.1 % 38 % $ 181.5 $ 139.2 30 % 0.4 % 30 %
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 Ended Effects of December 31,
AFX Foreign BFX December 31, AFX
Foreign BFX % Change Exchange
% Change % Change Exchange %
Change Amounts in millions
2017
2016 Fav/(Unfav) Fav/(Unfav)
Fav/(Unfav) 2017 2016
Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
Geographic and Customer Solution Set Revenue:
Americas: Risk Management Solutions Trade Credit $ 130.2 $
131.5 (1 )% 0.2 % (1 )% $ 503.0 $ 518.8 (3 )% 0.1 % (3 )% Other
Enterprise Risk Management 77.8 78.5 (1 )% 0.1 % (1
)% 272.9 259.1 5 % 0.0 % 5 % Total Americas Risk
Management Solutions 208.0 210.0 (1 )% 0.1 % (1 )% 775.9 777.9 0 %
0.1 % 0 % Sales and Marketing Solutions Sales Acceleration $
85.6 $ 77.7 10 % 0.1 % 10 % $ 296.4 $ 263.9 12 % 0.0 % 12 %
Advanced Marketing Solutions 155.8 153.5 2 % 0.1 % 1
% 383.9 377.4 2 % 0.0 % 2 % Total Americas Sales and
Marketing Solutions 241.4 231.2 4 % 0.1 % 4 % 680.3 641.3 6 % 0.0 %
6 % Total Americas Revenue $ 449.4 $
441.2 2 % 0.1 % 2 % $ 1,456.2 $ 1,419.2 3 % 0.0 % 3 %
Non-Americas: Risk Management Solutions Trade Credit $ 43.8
$ 43.5 1 % 3.8 % (3 )% $ 170.5 $ 169.4 1 % (1.7 )% 2 % Other
Enterprise Risk Management 18.2 17.9 2 % 8.3 % (6 )%
63.4 67.0 (5 )% 4.0 % (9 )% Total Non-Americas Risk
Management Solutions 62.0 61.4 1 % 5.2 % (4 )% 233.9 236.4 (1 )%
0.1 % (1 )% Sales and Marketing Solutions Sales Acceleration
$ 7.5 $ 6.1 24 % 5.8 % 18 % $ 27.7 $ 19.9 39 % 0.7 % 38 % Advanced
Marketing Solutions 9.4 8.4 12 % 5.6 % 6 %
32.7 31.3 5 % (3.0 )% 8 % Total Non-Americas Sales and
Marketing Solutions 16.9 14.5 17 % 5.7 % 11 % 60.4 51.2 18 % (1.8
)% 20 % Total Non-Americas Revenue $
78.9 $ 75.9 4 % 5.3 % (1 )% $ 294.3 $ 287.6 2 % (0.2 )% 3 %
Total Corporation: Risk Management Solutions Trade Credit $
174.0 $ 175.0 (1 )% 1.1 % (2 )% $ 673.5 $ 688.2 (2 )% (0.3 )% (2 )%
Other Enterprise Risk Management 96.0 96.4 0 % 1.6 %
(2 )% 336.3 326.1 3 % 0.9 % 2 % Total Risk Management
Solutions 270.0 271.4 (1 )% 1.3 % (2 )% 1,009.8 1,014.3 0 % 0.1 % 0
% Sales and Marketing Solutions Sales Acceleration $ 93.1 $
83.8 11 % 0.5 % 11 % $ 324.1 $ 283.8 14 % 0.1 % 14 % Advanced
Marketing Solutions 165.2 161.9 2 % 0.3 % 2 %
416.6 408.7 2 % (0.2 )% 2 % Total Sales and Marketing
Solutions 258.3 245.7 5 % 0.4 % 5 % 740.7 692.5 7 % (0.1 )% 7 %
Total Revenue $ 528.3 $ 517.1 2 % 0.9 %
1 % $ 1,750.5 $ 1,706.8 3 % 0.0 % 3 %
Trade Credit
Revenue: Americas: D&B Credit Suite $ 95.3 $ 96.4 (1
)% 0.2 % (1 )% $ 376.4 $ 380.6 (1 )% 0.1 % (1 )% Other Trade Credit
34.9 35.1 (1 )% 0.1 % (1 )% 126.6 138.2
(8 )% 0.0 % (8 )% Total Americas Trade Credit Revenue 130.2 131.5
(1 )% 0.2 % (1 )% 503.0 518.8 (3 )% 0.1 % (3 )%
Non-Americas: D&B Credit Suite $ 5.6 $ 5.4 3 % 5.1 % (2
)% $ 19.9 $ 23.7 (16 )% (1.6 )% (15 )% Other Trade Credit
38.2 38.1 1 % 3.6 % (3 )% 150.6 145.7 3 % (1.7
)% 5 % Total Non-Americas Trade Credit Revenue 43.8 43.5 1 % 3.8 %
(3 )% 170.5 169.4 1 % (1.7 )% 2 %
Total Corporation:
D&B Credit Suite $ 100.9 $ 101.8 (1 )% 0.4 % (1 )% $ 396.3 $
404.3 (2 )% (0.1 )% (2 )% Other Trade Credit 73.1
73.2 0 % 1.9 % (2 )% 277.2 283.9 (2 )% (0.7 )% (2 )%
Total Trade Credit Revenue $ 174.0 $ 175.0 (1 )% 1.1 % (2 )% $
673.5 $ 688.2 (2 )% (0.3 )% (2 )%
D&B Hoovers
Suite Americas $ 43.9 $ 33.9 29 % 0.1 % 29 % $ 173.5 $ 136.1 27
% 0.0 % 27 % Non-Americas 5.3 0.6 N/M N/M N/M
16.0 3.1 N/M N/M N/M Total Corporation $ 49.2 $ 34.5 42 %
1.1 % 41 % $ 189.5 $ 139.2 36 % 0.3 % 36 %
* 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 Ended
December 31, AFX December 31, AFX
% Change % Change Amounts in millions
2017 2016
Fav/(Unfav) 2017 2016
Fav/(Unfav) Operating Costs (GAAP): Operating
Expenses $ 150.4 $ 146.5 (3 )% $ 574.7 $ 542.6 (6 )% Selling and
Administrative Expenses 175.1 186.9 6 % 673.1 711.2 5 %
Depreciation and Amortization 21.3 17.7 (21 )% 79.7 68.6 (16 )%
Restructuring Expense 9.8 3.3 N/M
32.1 22.1 (46 )% Total Operating
Costs (GAAP) $ 356.6 $ 354.4 (1 )% $ 1,359.6 $
1,344.5 (1 )%
Capital Expenditures (GAAP) $
1.7 $ 2.3 25 % $ 8.4 $ 14.4 42 %
Additions to Computer Software & Other Intangibles
(GAAP) $ 11.5 $ 10.0 (16 )% $ 53.7 $ 45.8
(17 )%
Operating Costs (As Adjusted):
Operating Expenses $ 150.4 $ 146.5 (3 )% $ 574.7 $ 542.6 (6 )%
Selling and Administrative Expenses 172.5 178.2 3 % 665.1 671.3 1 %
Depreciation and Amortization 13.5 11.7 (17 )% 48.2 44.4 (9 )%
Restructuring Expense - - N/M -
- N/M Total Operating Costs (As
Adjusted) $ 336.4 $ 336.4 0 % $ 1,288.0 $
1,258.3 (2 )%
Quarter Ended Full
Year Ended December 31, December 31,
Amounts in millions
2017
2016 2017 2016
Operating Expenses (GAAP): $ 150.4 $
146.5 $ 574.7 $ 542.6 None - - -
-
Operating Expenses (As
Adjusted) $ 150.4 $ 146.5
$ 574.7 $ 542.6
Selling and Admin (GAAP) $ 175.1
$ 186.9 $ 673.1 $ 711.2
Legal and Other Professional Fees and Shut-Down
(Costs) Recoveries Related to Matters In
China
(0.1 ) (0.4 ) (0.2 ) (2.0 ) Decrease (Increase) of Accrual for
Legal Matters - - 8.0 (26.0 ) Impairment of Certain Intangible
Assets in China - (2.4 ) - (2.4 ) Acquisition/Divestiture Related
Costs (2.5 ) (5.9 ) (15.8 ) (9.5 )
Selling and Admin (As Adjusted) $ 172.5
$ 178.2 $ 665.1 $
671.3 Depreciation and Amortization
(GAAP) $ 21.3 $ 17.7 $
79.7 $ 68.6 Amortization of Acquisition
Related Intangibles (7.8 ) (6.0 ) (31.5 ) (24.2 )
Depreciation and Amortization (As Adjusted)
$ 13.5 $ 11.7 $
48.2 $ 44.4
Restructuring (GAAP) $ 9.8 $ 3.3
$ 32.1 $ 22.1 Restructuring (9.8 ) (3.3
) (32.1 ) (22.1 )
Restructuring (As
Adjusted) $ - $ -
$ - $ -
Quarter Ended Amounts in millions
Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar
31, 2017 Dec 31, 2016 Net Debt Position:
Cash and Cash Equivalents $ 442.4 $ 431.0 $ 400.2 $ 375.4 $ 352.6
Short-Term Debt (32.5 ) (30.0 ) (27.5 ) (22.5 ) (22.5 ) Long-Term
Debt (1,645.6 ) (1,651.6 ) (1,673.0 )
(1,684.7 ) (1,594.5 ) Net Debt $ (1,235.7 ) $
(1,250.6 ) $ (1,300.3 ) $ (1,331.8 ) $ (1,264.4 )
Full Year Ended
% Change
Amounts in millions
Dec 31, 2017
Dec 31, 2016
Fav/
(Unfav)
Free Cash Flow: Net Cash Provided By Operating
Activities - Continuing Operations (GAAP) $ 286.5 $ 322.7 (11 )%
Less: Capital Expenditures (GAAP) 8.4 14.4 42 % Additions to
Computer Software & Other Intangibles (GAAP) 53.7 45.8 (17 )%
Free Cash Flow $ 224.4 $ 262.5 (15 )%
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, 4, and 5
(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 Ended December 31, December
31, Amounts in millions
2017 2016
2017 2016 Americas Total Revenue
(GAAP) (Schedule 1) $ 448.1 $ 441.2 $ 1,448.2 $ 1,416.1 Acquisition
Related Deferred Revenue Fair Value Adjustment (1.3 ) - (8.0 ) (3.1
) Americas Total Revenue (As Adjusted)
(Schedule 2) $ 449.4 $ 441.2 $ 1,456.2 $
1,419.2
(2) The following table reconciles
Total Revenue included in Schedule 1 and Schedule 2:
Quarter
Ended Full Year Ended December 31, December
31, Amounts in millions
2017 2016
2017 2016 Total Revenue (GAAP)
(Schedule 1) $ 527.0 $ 517.1 $ 1,742.5 $ 1,703.7 Acquisition
Related Deferred Revenue Fair Value Adjustment (1.3 ) - (8.0 ) (3.1
) Total Revenue (As Adjusted) (Schedule
2) $ 528.3 $ 517.1 $ 1,750.5 $ 1,706.8
(3) The following table reconciles Americas Operating
Income included in Schedule 1 and Schedule 2:
Quarter
Ended Full Year Ended December 31, December
31, Amounts in millions
2017 2016
2017 2016 Americas Operating
Income (GAAP) (Schedule 1) $ 185.6 $ 175.6 $ 419.1 $ 429.5
Acquisition/Divestiture Related Costs (2.5 ) (5.7 ) (10.8 ) (8.2 )
Amortization of Acquisition Related Intangibles (7.5 ) (6.0 ) (30.6
) (24.2 ) Acquisition Related Deferred Revenue Fair Value
Adjustment (1.3 ) - (8.0 ) (3.1 )
Americas Operating Income (As Adjusted) (Schedule 2) $ 196.9
$ 187.3 $ 468.5 $ 465.0
(4) The
following table reconciles Non-Americas Operating Income included
in Schedule 1 and Schedule 2:
Quarter Ended Full Year
Ended December 31, December 31, Amounts in
millions
2017 2016 2017
2016 Non-Americas Operating Income (GAAP)
(Schedule 1) $ 21.2 $ 12.2 $ 84.0 $ 59.4 Legal and Other
Professional Fees and Shut-Down (Costs) Recoveries Related to
Matters In China - - - (0.1 ) Acquisition/Divestiture Related Costs
- - (0.2 ) (0.3 ) Amortization of Acquisition Related Intangibles
(0.3 ) - (0.9 ) - Impairment of Certain Intangible Assets in China
- (2.4 ) - (2.4 ) Non-Americas
Operating Income (As Adjusted) (Schedule 2) $ 21.5 $ 14.6
$ 85.1 $ 62.2
(5) The following
table reconciles Corporate and Other expenses included in Schedule
1 and Schedule 2:
Quarter Ended Full Year Ended
December 31, December 31, Amounts in millions
2017 2016 2017
2016 Corporate and Other (GAAP) (Schedule 1) $ (36.4
) $ (25.1 ) $ (120.2 ) $ (129.7 ) Restructuring Charges (9.8
) (3.3 ) (32.1 ) (22.1 ) Legal and Other Professional Fees and
Shut-Down (Costs) Recoveries Related to Matters In China (0.1 )
(0.4 ) (0.2 ) (1.9 ) Decrease (Increase) of Accrual for Legal
Matters - - 8.0 (26.0 ) Acquisition/Divestiture Related Costs -
(0.2 ) (4.8 ) (1.0 ) Corporate
and Other (As Adjusted) (Schedule 2) $ (26.5 ) $ (21.2 ) $ (91.1 )
$ (78.7 )
(6) The following table reconciles Total
Operating Income included in Schedule 1 and Schedule 2:
Quarter
Ended Full Year Ended December 31, December
31, Amounts in millions
2017 2016
2017 2016 Total Operating Income
(GAAP) Schedule 1) $ 170.4 $ 162.7 $ 382.9 $ 359.2
Restructuring Charges (9.8 ) (3.3 ) (32.1 )
(22.1 ) Legal and Other Professional Fees and Shut-Down (Costs)
Recoveries Related to Matters In China (0.1 ) (0.4 ) (0.2 ) (2.0 )
Decrease (Increase) of Accrual for Legal Matters - - 8.0 (26.0 )
Acquisition/Divestiture Related Costs (2.5 ) (5.9 ) (15.8 ) (9.5 )
Amortization of Acquisition Related Intangibles (7.8 ) (6.0 ) (31.5
) (24.2 ) Acquisition Related Deferred Revenue Fair Value
Adjustment (1.3 ) - (8.0 ) (3.1 ) Impairment of Certain Intangible
Assets in China - (2.4 ) - (2.4 ) Total
Operating Income (As Adjusted) (Schedule 2) $ 191.9 $ 180.7
$ 462.5 $ 448.5
(7) The
following table reconciles Net Income Attributable to Dun &
Bradstreet included in Schedule 1 and Schedule 2:
Quarter
Ended Full Year Ended December 31, December
31, Amounts in millions
2017 2016
2017 2016 Net Income (Loss)
Attributable to Dun & Bradstreet (GAAP) (Schedule 1) $ 26.2 $
78.0 $ 140.9 $ 97.4 Restructuring Charges (6.7 ) (2.2 )
(21.2 ) (14.4 ) Legal and Other Professional Fees and Shut-Down
(Costs) Recoveries Related to Matters In China (0.1 ) (0.2 ) (0.1 )
(1.3 ) Decrease (Increase) of Accrual for Legal Matters - (0.6 )
7.9 (22.6 ) Acquisition/Divestiture Related Costs (2.4 ) (5.6 )
(13.8 ) (8.0 ) Amortization of Acquisition Related Intangibles (4.8
) (3.8 ) (19.8 ) (15.1 ) Acquisition Related Deferred Revenue Fair
Value Adjustment (0.9 ) 0.1 (5.5 ) (2.1 ) Impairment of Certain
Intangible Assets in China - (2.4 ) - (2.4 ) Effect of Legacy and
Other Tax Matters - - - 1.7 Gain (Loss) on Investment - (6.7 ) -
(6.7 ) Gain (Loss) on Sale of Businesses 0.1 (8.2 ) (0.5 ) (97.8 )
Impact of the 2017 Tax Cuts and Jobs Act (79.0 ) - (79.0 ) -
After-Tax Impact (93.8 ) (29.6 ) (132.0 )
(168.7 ) Income (Loss) From Discontinued Operations, Net of
Income Taxes - (3.2 ) (0.8 ) (4.1 ) Net
Income Attributable to Dun & Bradstreet (As Adjusted) (Schedule
2) $ 120.0 $ 110.8 $ 273.7 $ 270.2
(8) The following table reconciles Diluted Earnings
Per Share Of Common Stock included in Schedule 1 and Schedule 2:
Quarter Ended Full Year Ended December 31,
December 31, 2017
2016 2017 2016 Diluted
EPS Attributable to Dun & Bradstreet Common Shareholders (GAAP)
(Schedule 1) $ 0.70 $ 2.10 $ 3.79 $ 2.65 Restructuring
Charges (0.18 ) (0.06 ) (0.57 ) (0.39 ) Legal and Other
Professional Fees and Shut-Down (Costs) Recoveries Related to
Matters In China - (0.01 ) - (0.04 ) Decrease (Increase) of Accrual
for Legal Matters - (0.02 ) 0.21 (0.61 ) Acquisition/Divestiture
Related Costs (0.07 ) (0.15 ) (0.37 ) (0.22 ) Amortization of
Acquisition Related Intangibles (0.13 ) (0.10 ) (0.53 ) (0.41 )
Acquisition Related Deferred Revenue Fair Value Adjustment (0.02 )
- (0.15 ) (0.06 ) Impairment of Certain Intangible Assets in China
- (0.06 ) - (0.06 ) Effect of Legacy and Other Tax Matters - - -
0.04 Gain (Loss) on Investment - (0.18 ) - (0.18 ) Gain (Loss) on
Sale of Businesses - (0.22 ) (0.01 ) (2.66 ) Impact of the 2017 Tax
Cuts and Jobs Act (2.12 ) - (2.13 ) - Discontinued Operations -
(0.09 ) (0.02 ) (0.11 ) Diluted EPS
Attributable to Dun & Bradstreet Common Shareholders (As
Adjusted) (Schedule 2) $ 3.22 $ 2.99 $ 7.36 $
7.35
(9) The following table reconciles
Other Income (Expense)-Net included in Schedule 1 and Schedule 2:
Quarter Ended Full Year Ended December 31,
December 31, Amounts in millions
2017
2016 2017 2016 Other
Income (Expense)-Net (GAAP) (Schedule 1) $ (1.2 ) $ (12.4 ) $ (2.1
) $ (104.3 ) Effect of Legacy and Other Tax Matters - - - (1.7 )
Gain (Loss) on Investment - (6.7 ) - (6.7 ) Gain (Loss) on Sale of
Businesses - (5.5 ) (0.7 ) (95.1 ) Acquisition/Divestiture Related
Costs - - - (0.1 ) Other Income
(Expense)-Net (As Adjusted) (Schedule 2) $ (1.2 ) $ (0.2 ) $ (1.4 )
$ (0.7 )
(10) The following table reconciles
Non-Operating Income (Expense)-Net included in Schedule 1 and
Schedule 2:
Quarter Ended Full Year Ended December
31, December 31, Amounts in millions
2017
2016 2017 2016
Non-Operating Income (Expense) - Net (GAAP) (Schedule 1) $ (15.6 )
$ (25.0 ) $ (60.2 ) $ (155.6 ) Effect of Legacy and Other Tax
Matters - - - (1.7 ) Gain (Loss) on Investment - (6.7 ) - (6.7 )
Gain (Loss) on Sale of Businesses - (5.5 ) (0.7 ) (95.1 )
Acquisition/Divestiture Related Costs - - - (0.1 )
Non-Operating Income (Expense) - Net (As Adjusted)
(Schedule 2) $ (15.6 ) $ (12.8 ) $ (59.5 ) $ (52.0 )
(11) The following table reconciles Provision for Income
Taxes included in Schedule 1 and Schedule 2:
Quarter Ended
Full Year Ended December 31, December 31,
Amounts in millions
2017 2016
2017 2016 Provision for Income Taxes
(GAAP) (Schedule 1) $ 128.6 $ 54.9 $ 179.7 $ 99.9
Restructuring Charges (3.1 ) (1.1 ) (10.9 ) (7.7 ) Legal and Other
Professional Fees and Shut-Down (Costs) Recoveries Related to
Matters In China - (0.2 ) (0.1 ) (0.7 ) Decrease (Increase) of
Accrual for Legal Matters - 0.6 0.1 (3.4 ) Acquisition/Divestiture
Related Costs (0.1 ) (0.3 ) (2.0 ) (1.6 ) Amortization of
Acquisition Related Intangibles (3.0 ) (2.2 ) (11.7 ) (9.1 )
Acquisition Related Deferred Revenue Fair Value Adjustment (0.4 )
(0.1 ) (2.5 ) (1.0 ) Effect of Legacy and Other Tax Matters - - -
(3.4 ) Gain (Loss) on Sale of Businesses (0.1 ) 2.7 (0.2 ) 2.7
Impact of the 2017 Tax Cuts and Jobs Act 80.7 - 80.7 -
Provision for Income Taxes (As Adjusted)
(Schedule 2) $ 54.6 $ 55.5 $ 126.3 $ 124.1
(12) The following table reconciles Net
(Income) Loss Attributable to the Noncontrolling Interest included
in Schedule 1 and Schedule 2:
Quarter Ended Full Year
Ended December 31, December 31, Amounts in
millions
2017 2016 2017
2016 Net (Income) Loss Attributable to the
Noncontrolling Interest (GAAP) (Schedule 1) $ 0.4 $ (1.5 ) $ (4.1 )
$ (5.0 ) Impact of the 2017 Tax Cuts and Jobs Act 1.7 - 1.7 -
Net (Income) Loss Attributable to the
Noncontrolling Interest (As Adjusted) (Schedule 2) $ (1.3 ) $ (1.5
) $ (5.8 ) $ (5.0 )
The Dun & Bradstreet
Corporation
Schedule 6
Notes to Schedules 1, 2, 3, 4, and 5
(unaudited) and Definitions of Non-GAAP Measures
Quarter Ended December 31, 2017 Quarter Ended
December 31, 2016 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 $ 130.2 $ -
$ 130.2 $ 131.5 $ - $ 131.5 Other Enterprise Risk Management
77.8 - 77.8 78.5 - 78.5 Total
Americas Risk Management Solutions 208.0 - 208.0 210.0 - 210.0
Sales and Marketing Solutions Sales Acceleration $ 84.3 $
1.3 $ 85.6 $ 77.7 $ - $ 77.7 Advanced Marketing Solutions
155.8 - 155.8 153.5 - 153.5
Total Americas Sales and Marketing Solutions 240.1 1.3 241.4 231.2
- 231.2 Total Americas
Revenue $ 448.1 $ 1.3 $ 449.4 $ 441.2 $ - $ 441.2
Non-Americas: Risk Management Solutions Trade Credit $ 43.8
$ - $ 43.8 $ 43.5 $ - $ 43.5 Other Enterprise Risk Management
18.2 - 18.2 17.9 - 17.9
Total Non-Americas Risk Management Solutions 62.0 - 62.0 61.4 -
61.4 Sales and Marketing Solutions Sales Acceleration $ 7.5
$ - $ 7.5 $ 6.1 $ - $ 6.1 Advanced Marketing Solutions 9.4
- 9.4 8.4 - 8.4 Total
Non-Americas Sales and Marketing Solutions 16.9 - 16.9 14.5 - 14.5
Total Non-Americas
Revenue $ 78.9 $ - $ 78.9 $ 75.9 $ - $ 75.9
Total
Corporation: Risk Management Solutions Trade Credit $ 174.0 $ -
$ 174.0 $ 175.0 $ - $ 175.0 Other Enterprise Risk Management
96.0 - 96.0 96.4 - 96.4 Total
Risk Management Solutions 270.0 - 270.0 271.4 - 271.4 Sales
and Marketing Solutions Sales Acceleration $ 91.8 $ 1.3 $ 93.1 $
83.8 $ - $ 83.8 Advanced Marketing Solutions 165.2 -
165.2 161.9 - 161.9 Total Sales and
Marketing Solutions 257.0 1.3 258.3 245.7 - 245.7
Total Revenue $ 527.0 $ 1.3 $ 528.3 $
517.1 $ - $ 517.1
Trade Credit Revenue:
Americas: D&B Credit Suite $ 95.3 $ - $ 95.3 $ 96.4 $ -
$ 96.4 Other Trade Credit 34.9 - 34.9
35.1 - 35.1 Total Americas Trade Credit Revenue 130.2
- 130.2 131.5 - 131.5
Non-Americas: D&B Credit
Suite $ 5.6 $ - $ 5.6 $ 5.4 $ - $ 5.4 Other Trade Credit
38.2 - 38.2 38.1 - 38.1 Total
Non-Americas Trade Credit Revenue 43.8 - 43.8 43.5 - 43.5
Total Corporation: D&B Credit Suite $ 100.9 $ - $ 100.9
$ 101.8 $ - $ 101.8 Other Trade Credit 73.1 -
73.1 73.2 - 73.2 Total Trade Credit Revenue $
174.0 $ - $ 174.0 $ 175.0 $ - $ 175.0
D&B Hoovers
Suite Americas $ 42.6 $ 1.3 $ 43.9 $ 33.9 $ - $ 33.9
Non-Americas 5.3 - 5.3 0.6 -
0.6 Total Corporation $ 47.9 $ 1.3 $ 49.2 $ 34.5 $ - $ 34.5
* 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, 4, and 5
(unaudited) and Definitions of Non-GAAP Measures
Full Year Ended December 31, 2017 Full Year
Ended December 31, 2016 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 $ 503.0 $ -
$ 503.0 $ 518.5 $ 0.3 $ 518.8 Other Enterprise Risk Management
272.9 - 272.9 256.9 2.2
259.1 Total Americas Risk Management Solutions 775.9 - 775.9 775.4
2.5 777.9 Sales and Marketing Solutions Sales Acceleration $
288.4 $ 8.0 $ 296.4 $ 263.3 $ 0.6 $ 263.9 Advanced Marketing
Solutions 383.9 - 383.9 377.4 -
377.4 Total Americas Sales and Marketing Solutions 672.3 8.0
680.3 640.7 0.6 641.3
Total Americas Revenue $ 1,448.2 $ 8.0 $ 1,456.2 $ 1,416.1 3.1 $
1,419.2
Non-Americas: Risk Management Solutions Trade
Credit $ 170.5 $ - $ 170.5 $ 169.4 $ - $ 169.4 Other Enterprise
Risk Management 63.4 - 63.4 67.0
- 67.0 Total Non-Americas Risk Management Solutions 233.9 -
233.9 236.4 - 236.4 Sales and Marketing Solutions Sales
Acceleration $ 27.7 $ - $ 27.7 $ 19.9 $ - $ 19.9 Advanced Marketing
Solutions 32.7 - 32.7 31.3 -
31.3 Total Non-Americas Sales and Marketing Solutions 60.4 -
60.4 51.2 - 51.2 Total
Non-Americas Revenue $ 294.3 $ - $ 294.3 $ 287.6 $ - $ 287.6
Total Corporation: Risk Management Solutions Trade Credit $
673.5 $ - $ 673.5 $ 687.9 $ 0.3 $ 688.2 Other Enterprise Risk
Management 336.3 - 336.3 323.9
2.2 326.1 Total Risk Management Solutions 1,009.8 - 1,009.8
1,011.8 2.5 1,014.3 Sales and Marketing Solutions Sales
Acceleration $ 316.1 $ 8.0 $ 324.1 $ 283.2 $ 0.6 $ 283.8 Advanced
Marketing Solutions 416.6 - 416.6 408.7
- 408.7 Total Sales and Marketing Solutions 732.7 8.0
740.7 691.9 0.6 692.5
Total Revenue $ 1,742.5 $ 8.0 $ 1,750.5 $ 1,703.7 3.1 $
1,706.8
Trade Credit Revenue: Americas:
D&B Credit Suite $ 376.4 $ - $ 376.4 $ 380.5 $ 0.1 $ 380.6
Other Trade Credit 126.6 - 126.6 138.0
0.2 138.2 Total Americas Trade Credit Revenue 503.0 -
503.0 518.5 0.3 518.8
Non-Americas: D&B Credit
Suite $ 19.9 $ - $ 19.9 $ 23.7 $ - $ 23.7 Other Trade Credit
150.6 - 150.6 145.7 - 145.7
Total Non-Americas Trade Credit Revenue 170.5 - 170.5 169.4 - 169.4
Total Corporation: D&B Credit Suite $ 396.3 $ - $
396.3 $ 404.2 $ 0.1 $ 404.3 Other Trade Credit 277.2
- 277.2 283.7 0.2 283.9 Total Trade
Credit Revenue $ 673.5 $ - $ 673.5 $ 687.9 $ 0.3 $ 688.2
D&B Hoovers Suite Americas $ 165.5 $ 8.0 $ 173.5 $ 136.1
$ - $ 136.1 Non-Americas 16.0 - 16.0
3.1 - 3.1 Total Corporation $ 181.5 $ 8.0 $ 189.5 $
139.2 $ - $ 139.2
* 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, 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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version on businesswire.com: http://www.businesswire.com/news/home/20180212006119/en/
Dun & BradstreetMedia:Emile Lee,
973-921-5525LeeE@dnb.comorInvestors/Analysts:Kathy Guinnessey,
973-921-5892Kathy.Guinnessey@dnb.com
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