|
--Core Revenue Up 1% Both Before and After the Effect of Foreign Exchange;
--Total Revenue on a GAAP Basis Flat Both Before and After the Effect of Foreign Exchange;
--Announces the Shut Down of Shanghai Roadway D&B Marketing Services Co. Ltd.
D&B (DNB), the world’s leading source of commercial information
and insight on businesses, today reported results for the first quarter
ended March 31, 2012.
"Our first quarter results were below expectations, due to unexpected
weakness in North America partially offset by strong performance in
International. Weakness in North America Risk Management Solutions
coupled with the situation in China has necessitated a reduction to our
full year revenue and free cash flow guidance. Despite the disappointing
top line, we are leveraging our flexible business model to ensure we
deliver our prior operating income and EPS commitments. Of note, our
technology transformation remains on track and once completed, it will
become the foundation to drive sustainable top line growth," stated Sara
Mathew, D&B’s Chairman and Chief Executive Officer.
First Quarter 2012 Results
Diluted earnings per share before non-core gains and charges for
the quarter ended March 31, 2012 were $1.35, up 5% from $1.29 in the
prior year similar period.
On a GAAP basis, diluted earnings per share for the quarter ended March
31, 2012 were $1.32, up 32% from $1.00 in the prior year similar period.
See attached Schedule 3 for a reconciliation of diluted earnings per
share before non-core gains and charges to earnings per share on a GAAP
basis, as well as the definitions of the non-GAAP financial measures
that the Company uses to evaluate the business.
Core revenue for the first quarter of 2012 was $390.1 million, up
1% from the prior year similar period both before and after the effect
of foreign exchange. Deferred revenue was $631.0 million, down 2% from
the prior year similar period.
Core revenue results for the first quarter of 2012 reflect the following
by solution set:
--
Risk Management Solutions revenue of $253.0 million, down 2% both
before and after the effect of foreign exchange, as compared to the
prior year similar period;
--
Sales & Marketing Solutions revenue of $107.0 million, up 8% both
before and after the effect of foreign exchange, as compared to the
prior year similar period; and
--
Internet Solutions revenue of $30.1 million, up 5% both before and
after the effect of foreign exchange, as compared to the prior year
similar period.
See attached Schedules 4, 5 and 6 for additional detail.
Total revenue for the first quarter of 2012 was $402.8 million,
flat both before and after the effect of foreign exchange from the prior
year similar period. Total revenue for the first quarter of 2012
included the results of the domestic portion of our Japanese operations
that was divested during the first quarter of 2012. Total revenue for
the first quarter of 2011 included the results from Purisma, AllBusiness
and a small supply management company in North America, as well as our
market research business in China and the domestic portion of our
Japanese operations that were recently divested.
Operating income before non-core gains and charges for the first
quarter of 2012 was $106.0 million, up 3% from the prior year similar
period, primarily due to reengineering savings. On a GAAP basis,
operating income was $74.4 million, down 17% from the prior year similar
period, primarily due to impairment charges related to the shut down of
our Shanghai Roadway D&B Marketing Services Co. Ltd. in China.
See attached Schedule 3 for additional detail.
Net income attributable to D&B before non-core gains and
charges for the first quarter of 2012 was $65.2 million, up 1% from the
prior year similar period. On a GAAP basis, net income attributable to
D&B for the first quarter of 2012 was $63.4 million, up 27% from the
prior year similar period.
See attached Schedule 3 for additional detail.
Free cash flow for the first three months of 2012, excluding the
impact of legacy tax matters, was $152.0 million, including
approximately $9 million related to MaxCV, compared with $118.8 million
and $9 million, respectively, in the prior year similar period. The
Company defines free cash flow as net cash provided by operating
activities less capital expenditures and additions to computer software
and other intangibles. On a GAAP basis, net cash provided by operating
activities for the first three months of 2012 was $167.3 million,
compared with $135.9 million in the prior year similar period.
See attached Schedule 4 for additional detail.
Share Repurchases
During the first quarter of 2012 there were no repurchases under the
Company’s discretionary repurchase program and no repurchases made to
offset the dilutive effect of shares issued under employee benefit plans.
D&B remains committed to repurchasing between $150 million and $175
million during 2012 under the Company’s discretionary repurchase
program, as well as to repurchase shares to offset the dilutive effect
of shares issued under our employee benefit plans.
The Company ended the first quarter of 2012 with $117.7 million of cash
and cash equivalents and total gross debt of $842.8 million.
First Quarter 2012 Segment Results
As a reminder, during the first quarter of 2011, D&B realigned its
geographic reporting segments into the following three classifications:
i) North America, ii) Asia Pacific and iii) Europe & Other International
Markets.
Simultaneously with the sale of the domestic portion of our Japanese
operations to Tokyo Shoko Research, LTD. ("TSR"), our local joint
venture partner, D&B entered in commercial agreements to provide TSR
with global data for local Japanese customers and we became the
exclusive distributor of TSR data to our Worldwide Network partners.
While we will continue to manage our businesses through these three
geographic segments, as of January 1, 2012, our Asia Pacific
partnerships were reclassified out of our Europe and Other International
Markets into our Asia Pacific segment (which now primarily consists of
our operations in Australia, China, India and Asia Pacific Partnerships).
Schedule 7 depicts the effect this reclassification had on our segments
for 2011, that is the basis for which we provide 2012 revenue guidance.
North America
Core revenue for the first quarter of 2012 was $285.5 million,
down 1% both before and after the effect of foreign exchange, as
compared to the prior year similar period.
North America core revenue results for the first quarter of 2012 reflect
the following:
--
Risk Management Solutions revenue of $170.2 million, down 5% both
before and after the effect of foreign exchange, as compared to the
prior year similar period;
--
Sales & Marketing Solutions revenue of $86.1 million, up 5% both
before and after the effect of foreign exchange, as compared to the
prior year similar period; and
--
Internet Solutions revenue of $29.2 million, up 5% both before and
after the effect of foreign exchange, as compared to the prior year
similar period.
See attached Schedules 4, 5 and 6 for additional details.
Total revenue for the first quarter of 2012 was $285.5 million,
down 2% both before and after the effect of foreign exchange, as
compared to the prior year similar period. Total revenue for the first
quarter of 2011 included the results of AllBusiness, Purisma and a small
supply management company, that were recently divested.
Operating income for the first quarter of 2012 was $102.5
million, down 4% from the prior year similar period, due to lower
revenue and increased investment.
Asia Pacific
Core revenue for the first quarter of 2012 was $47.2 million, up
15% before the effect of foreign exchange (up 16% after the effect of
foreign exchange), as compared to the prior year similar period.
Asia Pacific core revenue results for the first quarter of 2012 reflect
the following:
--
Risk Management Solutions revenue of $35.1 million, up 7% before the
effect of foreign exchange (up 9% after the effect of foreign
exchange), as compared to the prior year similar period;
--
Sales & Marketing Solutions revenue of $11.9 million, up 44% both
before and after the effect of foreign exchange, as compared to the
prior year similar period; and
--
Internet Solutions revenue of $0.2 million, down 6% before the effect
of foreign exchange (down 14% after the effect of foreign exchange),
as compared to the prior year similar period.
Total revenue for the first quarter of 2012 was $59.9 million, up
4% before the effect of foreign exchange (up 7% after the effect of
foreign exchange), as compared to the prior year similar period. Total
revenue for the first quarter of 2012 included the results of the
domestic portion of our Japanese operations that was divested during the
first quarter 2012. Total revenue for the first quarter of 2011 included
the results from our market research business in China and the domestic
portion of our Japanese operations that were recently divested.
See attached Schedules 4, 5 and 6 for additional detail.
Operating income before non-core gains and charges for the first
quarter of 2012 was $1.8 million, compared to a $1.8 million loss in the
prior year similar period. The increase was primarily due to higher
revenue and lower costs as a result of the divestiture of our market
research business in China. On a GAAP basis, for the first quarter of
2012 we had an operating loss of $11.1 million, compared to a $1.8
million loss in the prior year similar period, due to impairment charges
in the current year related to the shut down of our Shanghai Roadway D&B
Marketing Services Co. Ltd. in China.
See attached Schedule 3 for additional detail.
Europe & Other International Markets
Core and total revenue for the first quarter of 2012 was $57.4
million, up 3% before the effect of foreign exchange (up 2% after the
effect of foreign exchange), as compared to the prior year similar
period.
Europe & Other International Markets core and total revenue results for
the first quarter of 2012 reflect the following:
--
Risk Management Solutions revenue of $47.7 million, up 3% before the
effect of foreign exchange (up 2% after the effect of foreign
exchange), as compared to the prior year similar period;
--
Sales & Marketing Solutions revenue of $9.0 million, up 2% before the
effect of foreign exchange (flat after the effect of foreign
exchange), as compared to prior year similar period; and
--
Internet Solutions revenue of $0.7 million, up 23% before the effect
of foreign exchange (up 21% after the effect of foreign exchange), as
compared to the prior year similar period.
See attached Schedules 4, 5 and 6 for additional detail.
Operating income for the first quarter of 2012 was $14.2 million,
up 29% from the prior year similar period. The increase was primarily
related to increased revenue and the timing of investment activity.
MaxCV
In February 2010, D&B announced a Strategic Technology Investment
program aimed at strengthening its leading position in commercial data
and improving its current technology platform to meet the emerging needs
of customers. We refer to this program as "MaxCV."
In the first quarter of 2012, the Company incurred $8.4 million of total
pre-tax expenses (or $0.13 per diluted share) on MaxCV, which is
included in the Non-Core Gains and Charges noted below, and $7.5 million
of capital expenditures and additions to computer software and other
intangibles related to MaxCV.
For the full year 2012, the Company anticipates spending approximately
$60 million on MaxCV.
See attached Schedule 3 for additional detail.
Update on the Investigation Related to China Operations
On March 18, 2012, D&B announced we had temporarily suspended our
Shanghai Roadway D&B Marketing Services Co. Ltd. ("Roadway") operations
in China, pending an investigation into allegations that certain data
collection practices may have violated local Chinese consumer data
privacy laws. In addition, we have been reviewing certain allegations
that we may have violated the Foreign Corrupt Practices Act and certain
other laws in our China operations. As previously reported, we are
cooperating with the local Chinese investigation and have voluntarily
reported this matter to the Securities and Exchange Commission and the
United States Department of Justice and we are cooperating with both
agencies in our investigation.
In connection with the ongoing investigation as well as the time and
cost to resolve these issues, we subsequently decided to permanently
cease the operations of Roadway and we have begun the process of
shutting down that business. However, we remain committed to our growth
strategy in China and will continue to operate our other
business-to-business Sales & Marketing and Risk Management businesses in
that region.
D&B acquired Roadway’s operations in 2009 and for full year 2011,
Roadway generated approximately $22 million in revenue and $2 million of
operating income.
Schedule 7 depicts the effect the shut down had on our core revenue for
2011 and the first quarter of 2012, that is the basis for which we
provide 2012 revenue guidance.
Non-Core Charges Related to Matter in China
During the first quarter of 2012, we incurred a $12.9 million impairment
charge related to the shut down of Shanghai Roadway D&B Marketing
Services Co. Ltd.
For the full year 2012, we currently expect to incur non-core charges
related to the shut down of Shanghai Roadway D&B Marketing Services Co.
Ltd., as well as legal, audit and other professional services associated
with the investigations in China, that combined equal approximately $25
million. These charges do not include the above impairment charge or any
potential regulatory fees or fines associated with our China operations.
Non-Core Gains and Charges
During the first quarters of 2012 and 2011, the Company recorded:
--
A net pre-tax, non-core charge of $25.5 million (including the $12.9
million impairment charge related to the shut down of Shanghai Roadway
D&B Marketing Service Co. Ltd.) in the first quarter of 2012, and a
net pre-tax, non-core charge of $17.1 million in the first quarter of
2011; and
--
A net after-tax, non-core charge of $1.8 million in the first quarter
of 2012, and a net after-tax, non-core charge of $14.6 million in the
first quarter of 2011.
See attached Schedule 3 for additional explanations and details of these
charges.
D&B’s restructuring charges may be viewed as recurring as
they are part of its Financial Flexibility initiatives. In addition to
reporting GAAP results, the Company reports results before restructuring
charges and other non-core gains and charges because they do not reflect
the Company’s underlying business performance and they may have a
disproportionate positive or negative impact on the results of its
ongoing business operations. For additional information, see the section
titled "Use of Non-GAAP Financial Measures" below.
Full Year 2012 Guidance
D&B today revised its financial guidance for the full year 2012:
--
Core revenue growth of 0% to 3%, before the effect of foreign
exchange, compared with original growth of 3% to 5%, before the effect
of foreign exchange;
--
Operating income growth of 4% to 7%, before non-core gains and charges;
--
Diluted EPS growth of 8% to 11%, before non-core gains and charges; and
--
Free cash flow of $275 million to $305 million, excluding the impact
of legacy tax matters and any regulatory fees and fines associated
with our China operations, and including MaxCV, compared with original
guidance of Free cash flow of $310 million to $340 million, which
excluded the impact of legacy tax matters but included MaxCV.
The impact of MaxCV has been excluded from our operating income and
diluted EPS guidance and included in our free cash flow guidance.
D&B does not provide guidance on a GAAP basis because D&B is unable to
predict, with reasonable certainty, the future movement of foreign
exchange rates or the future impact of non-core gains and charges, such
as restructuring charges and legacy tax matters, which are a component
of the most comparable financial measures calculated in accordance with
GAAP. Non-core gains and charges are uncertain and will depend on
several factors, including industry conditions, and could be material to
D&B’s results computed in accordance with GAAP.
Use of Non-GAAP Financial Measures
D&B reports non-GAAP financial measures in this press release and the
schedules attached. See "Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations -- How We Manage Our
Business" in the Company’s Annual Report on Form 10-K for the year
ending December 31, 2011, filed February 29, 2012 with the SEC, for a
discussion of how the Company defines these measures, why it uses them
and why it believes they provide useful information to investors.
Additionally, these measures are defined in Schedule 3 attached to this
press release.
First Quarter 2012 Teleconference
As previously announced, D&B will review its first quarter financial
results in a conference call with the investment community on Tuesday,
May 8, 2012, at 8 a.m. ET. Live audio as well as a replay of the
conference call, will be accessible on D&B’s Investor Relations Web site
at http://investor.dnb.com.
About Dun & Bradstreet(R) (D&B)
Dun & Bradstreet (DNB) is the world’s leading source of commercial
information and insight on businesses, enabling companies to Decide with
Confidence(R) for 170 years. D&B’s global commercial database
contains more than 205 million business records. The database is
enhanced by D&B’s proprietary DUNSRight(R) Quality Process,
which provides our customers with quality business information. This
quality information is the foundation of our global solutions that
customers rely on to make critical business decisions.
D&B provides solution sets that meet a diverse set of customer needs
globally. Customers use D&B Risk Management Solutions(TM)
to mitigate credit and supplier risk, increase cash flow and drive
increased profitability; D&B Sales & Marketing Solutions(TM)
to increase revenue from new and existing customers; and D&B Internet
Solutions(TM)to convert prospects into clients faster by
enabling business professionals to research companies, executives and
industries, over the web. For more information, please visit www.dnb.com.
Forward-Looking and Cautionary Statements
This press release, including, in particular, the section titled "Full
Year 2012 Guidance," contains projections of future results and other
forward-looking statements that involve a number of trends, risks and
uncertainties, and are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
The following important factors could cause actual results to differ
materially from those projected in such forward-looking statements.
--
D&B relies significantly on third parties to support critical
components of its business model in a continuous and high-quality
manner, including third party data providers, strategic third party
members in its D&B Worldwide Network, and third parties with whom it
has significant outsourcing arrangements.
--
D&B’s ability to implement and derive the benefits of its Strategic
Technology Investment program announced in February 2010 and to
maintain sufficient investment in our technology infrastructure
thereafter.
--
Any consequences of the investigation of our China operations and
risks associated with potential violations of the Foreign Corrupt
Practices Act.
--
Demand for D&B’s products is subject to intense competition, changes
in customer preferences and economic conditions which impact customer
behavior.
--
D&B’s solutions and brand image are dependent upon the integrity and
security of its global database and the continued availability thereof
through the Internet and by other means, as well as our ability to
protect key assets, such as our data centers.
--
D&B’s ability to maintain the integrity of its brand and reputation,
which it believes are key assets and competitive advantages.
--
D&B’s ability to renew large contracts, the related revenue
recognition and the timing thereof, or a shift in product mix, may
impact its results of operations from period to period.
--
As a result of the macro-economic challenges currently affecting the
global economy, D&B’s customers or vendors may experience cash flow
problems. This may cause its customers to delay, cancel or
significantly decrease their purchases from D&B and impact their
ability to pay amounts owed to D&B. In addition, D&B’s vendors may
substantially increase their prices without notice. Such behavior may
adversely affect D&B’s earnings and cash flow. In addition, if
economic conditions in the United States and other key markets
deteriorate further or do not show improvement, D&B may experience
material adverse impacts to its business, operating results and/or
access to credit markets.
--
D&B’s results are subject to the effects of foreign economies,
exchange rate fluctuations, legislative or regulatory requirements,
such as the adoption of new or changes in accounting policies and
practices, including pronouncements by the Financial Accounting
Standards Board or other standard-setting bodies, and the
implementation or modification of fees or taxes that it must pay to
acquire, use, and/or redistribute data. Future laws or regulations
with respect to the collection, compilation, use and/or publication of
information and adverse publicity or litigation concerning the
commercial use of such information, or changes in the rules governing
the operation of the Internet could have material adverse effect on
D&B’s business and financial results.
--
D&B’s ability to introduce new solutions or services having more
breadth and depth of data which allow customers more flexible use of
D&B data through web services and third party solutions, in a seamless
way and without disruption to existing solutions, such as DNBi.
--
D&B’s ability to acquire and successfully integrate other
complementary businesses, products and technologies into its existing
business, without significant disruption to its existing business or
to its financial results.
--
The continued adherence by third party members of the D&B Worldwide
Network, or other third parties who license and sell under the D&B
name, to D&B’s quality standards, its brand and communication
standards and to the terms and conditions of its commercial services
arrangements.
--
D&B’s future success requires that it attract and retain qualified
personnel, including members of its sales force and technology teams,
in regions throughout the world.
--
The profitability of our segments outside of North America depends on
our ability to identify and execute on various initiatives, such as
the continued implementation of subscription plan pricing, such as
DNBi, and successfully managing our D&B Worldwide Network, and our
ability to identify and contend with various challenges present in
foreign markets, such as local competition and the availability of
public records at no cost, or the adoption of new laws or regulations
governing the collection, compilation, use and/or publication of
information, particularly in emerging markets.
--
D&B’s ability to successfully implement its growth strategy requires
that it successfully reduce its expense base through its Financial
Flexibility initiatives, and reallocate certain of the expense-base
reductions into initiatives that produce desired revenue growth.
--
D&B is involved in various legal proceedings, the outcomes of which
are unknown and uncertain with respect to the impact on D&B’s cash
flow and profitability. See the Company’s most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q and notes to the
financial statements included therewith, for a more detailed
description of these matters.
--
D&B’s ability to repurchase shares is subject to market conditions,
including trading volume in its stock, and its ability to repurchase
shares in accordance with applicable securities laws.
--
D&B’s projection for free cash flow is dependent upon its ability to
generate revenue, its collection processes, customer payment patterns,
the timing and volume of stock option exercises and the amount and
timing of payments related to the tax and other matters and legal
proceedings in which it is involved, as referenced above and as more
fully described in the Company’s filings with the SEC, including its
most recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q and notes to the financial statements included therewith.
For a more detailed discussion of the trends, risks and uncertainties
that may affect D&B’s operating and financial results and its ability to
achieve the financial objectives discussed in this press release,
readers should review the Company’s filings with the SEC, including its
most recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. Copies of the Company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q are available on its Web site at www.dnb.com
and on the SEC’s Web site at www.sec.gov.
D&B cautions that the foregoing list of important factors is not
complete and except as otherwise required by federal securities laws
does not undertake any obligation to update any forward-looking
statement.
The Dun & Bradstreet Corporation Schedule 1
Consolidated Statement of Operations (unaudited) - GAAP
Results
----------------------------------------------------------------------------------------------------
Effects of
Quarter Ended AFX Foreign BFX
March 31, % Change Exchange % Change
--------------------------
Dollar amounts in millions, except per share data 2012 2011 Fav (Unfav) Fav (Unfav) Fav (Unfav)
-------------------------------------------------------------- ------------ ------------ ------------ ------------ ------------
Revenue:
North America $ 285.5 $ 288.5 (1 %) 0 % (1 %)
Asia Pacific 47.2 40.6 16 % 1 % 15 %
Europe and Other International Markets 57.4 56.3 2 % (1 %) 3 %
----- -----
International 104.6 96.9 8 % 0 % 8 %
Core Revenue $ 390.1 $ 385.4 1 % 0 % 1 %
Divested Business (1) 12.7 18.2 (30 %) 4 % (34 %)
Total Revenue $ 402.8 $ 403.6 0 % 0 % 0 %
-------------------------------------------------------------- -- ----- -- ----- ----- ----- ----- -----
Operating Income (Loss):
North America $ 102.5 $ 106.9 (4 %)
Asia Pacific (2) (11.1 ) (1.8 ) N/M
Europe and Other International Markets 14.2 11.0 29 %
----- -----
International 3.1 9.2 (66 %)
Corporate and Other (3) (31.2 ) (26.8 ) (16 %)
Total Operating Income 74.4 89.3 (17 %)
Interest Income 0.1 0.4 (66 %)
Interest Expense (9.1 ) (9.2 ) 1 %
Other Income (Expense) - Net (4) 6.6 (3.3 ) N/M
Non-Operating Income (Expense) - Net (2.4 ) (12.1 ) 80 %
Income Before Provision for Income Taxes 72.0 77.2 (7 %)
Less: Provision for Income Taxes 8.3 29.1 72 %
Equity in Net Income (Loss) of Affiliates 0.4 0.2 61 %
Net Income 64.1 48.3 33 %
Less: Net (Income) Loss Attributable to the Noncontrolling (0.7 ) 1.6 N/M
Interest (5)
Net Income Attributable to D&B (6) 63.4 49.9 27 %
-------------------------------------------------------------- ----- -----
Less: Allocation to Participating Securities 0.0 (0.1 ) 57 %
Net Income Attributable to D&B Common Shareholders 63.4 49.8 27 %
-------------------------------------------------------------- ----- -----
Basic Earnings Per Share of Common Stock Attributable to D&B $ 1.33 $ 1.00 33 %
Common Shareholders
-------------------------------------------------------------- -- ----- -- -----
Diluted Earnings Per Share of Common Stock Attributable to D&B $ 1.32 $ 1.00 32 %
Common Shareholders (7)
-------------------------------------------------------------- -- ----- -- -----
Weighted Average Number of Shares Outstanding:
Basic 47.7 49.5 4 %
-------------------------------------------------------------- ----- -----
Diluted 48.1 50.0 4 %
-------------------------------------------------------------- ----- ----- ----- -----
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
See Schedule 3 (Notes to Schedules), which is an integral part of
the consolidated statement of operations.
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The
Dun & Bradstreet Corporation contained in filings with the
Securities and Exchange Commission.
The Dun & Bradstreet Corporation Schedule 2
Consolidated Statement of Operations (unaudited) - Before
Non-Core Gains and Charges
-----------------------------------------------------------------------------------------------------------------
Effects of
Quarter Ended AFX Foreign BFX
March 31, % Change Exchange % Change
------------------------------
Dollar amounts in millions, except per share data 2012 2011 Fav (Unfav) Fav (Unfav) Fav (Unfav)
----------------------------------------------------------------------- -------------- -------------- ------------ ------------ ------------
Revenue:
North America $ 285.5 $ 288.5 (1 %) 0 % (1 %)
Asia Pacific 47.2 40.6 16 % 1 % 15 %
Europe and Other International Markets 57.4 56.3 2 % (1 %) 3 %
----- -----
International 104.6 96.9 8 % 0 % 8 %
Core Revenue $ 390.1 $ 385.4 1 % 0 % 1 %
Divested Business (1) 12.7 18.2 (30 %) 4 % (34 %)
Total Revenue $ 402.8 $ 403.6 0 % 0 % 0 %
----------------------------------------------------------------------- --- ----- --- ----- ----- ----- ----- -----
Operating Income (Loss):
North America $ 102.5 $ 106.9 (4 %)
Asia Pacific (2) 1.8 (1.8 ) N/M
Europe and Other International Markets 14.2 11.0 29 %
----- -----
International 16.0 9.2 74 %
Corporate and Other (3) (12.5 ) (12.7 ) 1 %
Total Operating Income 106.0 103.4 3 %
Interest Income 0.1 0.4 (66 %)
Interest Expense (9.1 ) (9.2 ) 1 %
Other Income (Expense) - Net (4) 0.5 (0.3 ) N/M
Non-Operating Income (Expense) - Net (8.5 ) (9.1 ) 7 %
Income Before Provision for Income Taxes 97.5 94.3 3 %
Less: Provision for Income Taxes 32.1 31.6 (2 %)
Equity in Net Income (Loss) of Affiliates 0.4 0.2 61 %
Net Income 65.8 62.9 5 %
Less: Net (Income) Loss Attributable to the Noncontrolling Interest (5) (0.6 ) 1.6 N/M
Net Income Attributable to D&B (6) 65.2 64.5 1 %
----------------------------------------------------------------------- ----- -----
Less: Allocation to Participating Securities 0.0 (0.1 ) 64 %
Net Income Attributable to D&B Common Shareholders 65.2 64.4 1 %
----------------------------------------------------------------------- ----- -----
Basic Earnings Per Share of Common Stock Attributable to D&B $ 1.37 $ 1.30 5 %
Common Shareholders
----------------------------------------------------------------------- --- ----- --- -----
Diluted Earnings Per Share of Common Stock Attributable to D&B $ 1.35 $ 1.29 5 %
Common Shareholders (7)
----------------------------------------------------------------------- --- ----- --- -----
Weighted Average Number of Shares Outstanding:
Basic 47.7 49.5 4 %
----------------------------------------------------------------------- ----- -----
Diluted 48.1 50.0 4 %
----------------------------------------------------------------------- ----- ----- ----- -----
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
See Schedule 3 (Notes to Schedules), which is an integral part of
the consolidated statement of operations.
This financial information should be read in conjunction with the
consolidated financial statements and related notes of The
Dun & Bradstreet Corporation contained in filings with the
Securities and Exchange Commission.
The Dun & Bradstreet Corporation Schedule 3
Notes to Schedules 1 and 2 (unaudited) and Definitions of
Non-GAAP Measures
(1 ) The following table reconciles Divested Business included in
Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Divested Business:
Purisma $ - $ 0.7
AllBusiness - 1.1
Small Supply Management Company in North America - 0.9
Domestic Portion of Japan Operations 12.7 12.3
Market Research Business in China - 3.2
----- -----
Total Divested Business $ 12.7 $ 18.2
----- ----- -- -----
(2 ) The following table reconciles Asia Pacific Operating Income
included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Asia Pacific Operating Income - GAAP Results (Schedule 1) $ (11.1 ) $ (1.8 )
Impairments Related to Matters in China (12.9 ) -
----- - -----
Asia Pacific Operating Income - Before Non-Core Gains and Charges $ 1.8 $ (1.8 )
(Schedule 2)
----- ----- -- ----- --
(3 ) The following table reconciles Corporate and Other expenses included
in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Corporate and Other - GAAP Results (Schedule 1) $ (31.2 ) $ (26.8 )
Restructuring Charges (9.1 ) (4.2 )
Strategic Technology Investment (8.4 ) (9.9 )
Legal fees Associated with Matters in China (1.2 ) -
----- - -----
Corporate and Other - Before Non-Core Gains and Charges (Schedule 2) $ (12.5 ) $ (12.7 )
----- ----- - -- ----- --
(4 ) The following table reconciles Other Income (Expense)-Net included
in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Other Income (Expense)-Net - GAAP Results (Schedule 1) $ 6.6 $ (3.3 )
Effect of Legacy Tax Matters 0.1 0.2
Gain (Loss) on Sale of Businesses 6.0 -
Gain (Loss) on Investment - (3.2 )
Other Income (Expense)-Net - Before Non-Core Gains and Charges (Schedule $ 0.5 $ (0.3 )
2)
----- ----- -- ----- --
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Total Pre-Tax Impacts:
Restructuring Charges $ (9.1 ) $ (4.2 )
Strategic Technology Investment (8.4 ) (9.9 )
Legal fees Associated with Matters in China (1.2 ) -
Impairments Related to Matters in China (12.9 ) -
Effect of Legacy Tax Matters 0.1 0.2
Gain (Loss) on Sale of Businesses 6.0 -
Gain (Loss) on Investment - (3.2 )
Total Pre-Tax Impacts $ (25.5 ) $ (17.1 )
----- ----- - -- ----- --
(5 ) The following table reconciles Net Income (Loss) Attributable to the
Noncontrolling Interest Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Net Income (Loss) Attributable to the Noncontrolling Interest - GAAP $ (0.7 ) $ 1.6
Results (Schedule 1)
Minority Share of Gain on Sale of Business (0.9 ) -
Impairments Related to Matters in China 0.8 -
Net Income (Loss) Attributable to the Noncontrolling Interest - $ (0.6 ) $ 1.6
Before Non-Core Gains and Charges (Schedule 2)
----- ----- - -- -----
(6 ) The following table reconciles Net Income Attributable to D&B
included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
Amounts in millions 2012 2011
-------------------------------------------------------------------------------------- -------------- ------------
Net Income Attributable to D&B - GAAP Results (Schedule 1) $ 63.4 $ 49.9
Restructuring Charges (5.7 ) (2.7 )
Strategic Technology Investment (6.1 ) (8.0 )
Legal fees Associated with Matters in China (0.7 ) -
Impairments Related to Matters in China (12.1 ) -
Gain (Loss) on Investment - (3.9 )
Gain (Loss) on Sale of Businesses 8.8 -
Minority Share of Gain on Sale of Business (0.9 ) -
Tax Benefit on a Loss on the Tax Basis of a Legal Entity 14.9 -
After-Tax Impact (1.8 ) (14.6 )
Net Income Attributable to D&B - Before Non-Core Gains and Charges $ 65.2 $ 64.5
(Schedule 2)
----- ----- -- -----
(7 ) The following table reconciles Diluted Earnings Per Share
Attributable to D&B included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
----------------------------
2012 2011
-------------- ------------
Diluted EPS Attributable to D&B - GAAP Results (Schedule 1) $ 1.32 $ 1.00
Restructuring Charges (0.12 ) (0.05 )
Strategic Technology Investment (0.13 ) (0.16 )
Legal fees Associated with Matters in China (0.01 ) -
Impairments Related to Matters in China (0.24 ) -
Gain (Loss) on Investment - (0.08 )
Minority Share of Gain on Sale of Business (0.02 ) -
Gain (Loss) on Sale of Businesses 0.18 -
Tax Benefit on a Loss on the Tax Basis of a Legal Entity 0.31 -
Diluted EPS Attributable to D&B - Before Non-Core Gains and Charges $ 1.35 $ 1.29
(Schedule 2)
----- ----- -- -----
N/M - Not Meaningful
The following defines the non-GAAP measures used to evaluate
performance:
*Total revenue excluding the revenue of divested businesses is
referred to as "core revenue." Core revenue includes the revenue
from acquired businesses from the date of acquisition
*Core revenue growth, excluding the effects of foreign
exchange, is referred to as "core revenue growth before the
effects of foreign exchange." We also separately, from time to
time, analyze core revenue growth before the effects of foreign
exchange among two components, "organic core revenue growth" and
"core revenue growth from acquisitions"
*Results (such as operating income, operating income growth,
operating margin, net income, tax rate and diluted earnings per
share) exclude Restructuring Charges (whether recurring or
non-recurring) and certain other items that we consider do not
reflect our underlying business performance. We refer to these
Restructuring Charges and other items as "non-core gains and
(charges)"
* Net cash provided by operating activities minus capital
expenditures and additions to computer software and other
intangibles is referred to as "free cash flow"
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun
& Bradstreet Corporation contained in filings with the Securities
and Exchange Commission.
The Dun & Bradstreet Corporation Schedule 4
Supplemental GAAP Financial Data (unaudited)
Quarter Ended Effects of
March 31, AFX Foreign BFX
------------------------------------
% Change Exchange % Change
Amounts in millions 2012 2011 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
---------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Geographic and Customer Solution Set Revenue:
North America:
Risk Management Solutions $ 170.2 $ 178.7 (5 )% 0 % (5 )%
Sales & Marketing Solutions 86.1 81.8 5 % 0 % 5 %
Internet Solutions 29.2 28.0 5 % 0 % 5 %
------ ------
Subtotal Core Revenue 285.5 288.5 (1 )% 0 % (1 )%
Divested Business (1) - 2.7 (100 )% 0 % (100 )%
Total North America Revenue 285.5 291.2 (2 )% 0 % (2 )%
Asia Pacific:
Risk Management Solutions $ 35.1 $ 32.2 9 % 2 % 7 %
Sales & Marketing Solutions 11.9 8.2 44 % 0 % 44 %
Internet Solutions 0.2 0.2 (14 )% (8 )% (6 )%
------ ------
Subtotal Core Revenue 47.2 40.6 16 % 1 % 15 %
Divested Business (1) 12.7 15.5 (18 )% 4 % (22 )%
Total Asia Pacific Revenue 59.9 56.1 7 % 3 % 4 %
Europe and Other International Markets:
Risk Management Solutions $ 47.7 $ 46.7 2 % (1 )% 3 %
Sales & Marketing Solutions 9.0 9.0 0 % (2 )% 2 %
Internet Solutions 0.7 0.6 21 % (2 )% 23 %
------ ------
Subtotal Core Revenue 57.4 56.3 2 % (1 )% 3 %
Divested Business (1) - - 0 % 0 % 0 %
Total Europe and Other International Markets Revenue 57.4 56.3 2 % (1 )% 3 %
International
Risk Management Solutions $ 82.8 $ 78.9 5 % 0 % 5 %
Sales & Marketing Solutions 20.9 17.2 21 % (1 )% 22 %
Internet Solutions 0.9 0.8 11 % (4 )% 15 %
------ ------
Subtotal Core Revenue 104.6 96.9 8 % 0 % 8 %
Divested Business (1) 12.7 15.5 (18 )% 4 % (22 )%
Total International Revenue 117.3 112.4 4 % 0 % 4 %
Total Corporation:
Risk Management Solutions $ 253.0 $ 257.6 (2 )% 0 % (2 )%
Sales & Marketing Solutions 107.0 99.0 8 % 0 % 8 %
Internet Solutions 30.1 28.8 5 % 0 % 5 %
------ ------
Subtotal Core Revenue 390.1 385.4 1 % 0 % 1 %
Divested Business (1) 12.7 18.2 (30 )% 4 % (34 )%
Total Corporation Revenue 402.8 403.6 0 % 0 % 0 %
------ ------ ------ ---- ------ ---- ------ ----
Operating Costs:
Operating Expenses $ 144.6 $ 137.2 (5 )%
Selling and Administrative Expenses 154.5 153.5 (1 )%
Depreciation and Amortization 20.2 19.4 (4 )%
Restructuring Expense 9.1 4.2 N/M
------ ------
Total Operating Costs(2) $ 328.4 $ 314.3 (5 )%
---- ------ ---- ------
Capital Expenditures(3) $ 0.5 $ 1.3 61 %
---- ------ ---- ------
Additions to Computer Software & Other Intangibles(3) $ 14.8 $ 8.2 (81 )%
---- ------ ---- ------ ------ ----
Quarter Ended
---------------------------------------------------------------------------------------------
Amounts in millions Mar 31, 2012 Dec 31, 2011 Sep 30, 2011 Jun 30, 2011 Mar 31, 2011
------------------------------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
Net Debt Position:
Cash and Cash Equivalents $ 117.7 $ 84.4 $ 89.5 $ 83.1 $ 83.6
Short-Term Debt (1.0 ) (1.1 ) (188.6 ) (160.9 ) (2.1 )
Long-Term Debt (841.8 ) (963.9 ) (704.6 ) (700.6 ) (888.6 )
------ ---- ------ ---- ------ ---- ------ ---- ------ ----
Net Debt $ (725.1 ) $ (880.6 ) $ (803.7 ) $ (778.4 ) $ (807.1 )
---- ------ ---- ---- ------ ---- ---- ------ ---- ---- ------ ---- ---- ------ ----
Year-To-Date
-------------------------------------------------------
% Change
Amounts in millions Mar 31, 2012 Mar 31, 2011 Fav/(Unfav)
------------------------------------------------------- ----------------- ----------------- -----------------
Free Cash Flow:
Net Cash Provided By Operating Activities (GAAP Results) $ 167.3 $ 135.9 23 %
Less:
Capital Expenditures (GAAP Results)(3) 0.5 1.3 61 %
Additions to Computer Software & Other Intangibles (GAAP Results)(3) 14.8 8.2 (81 )%
------ ------
Free Cash Flow $ 152.0 $ 126.4 20 %
Legacy Tax Matters (Refund) Payment - (7.6 ) N/M
------ ------ ----
Free Cash Flow Excluding Legacy Tax Matters $ 152.0 $ 118.8 28 %
---- ------ ---- ------ ------ ----
Year-To-Date
---------------------------------------------------
% Change
Amounts in millions Mar 31, 2012 Mar 31, 2011 Fav/(Unfav)
---------------------------------------------------------------------------------------------- ------------- ----------------- -----------------
Net Cash Provided By Operating Activities excluding Legacy Tax
Matters:
Net Cash Provided By Operating Activities (GAAP Results) $ 167.3 $ 135.9 23 %
Legacy Tax Matters (Refund) Payment - (7.6 ) N/M
------ ------ ----
Net Cash Provided By Operating Activities Excluding Legacy Tax $ 167.3 $ 128.3 30 %
Matters
---- ------ ---- ------ ------ ----
Notes:
Quarter Ended
March 31,
-------------
2012 2011
----- -----
1 Divested Business:
North America:
Risk Management Solutions $0.0 $0.9
Sales & Marketing Solutions 0.0 0.7
Internet Solutions 0.0 1.1
----- -----
Total Divested Business $0.0 $2.7
----- -----
Asia Pacific:
Risk Management Solutions $8.7 $8.0
Sales & Marketing Solutions 4.0 7.5
Internet Solutions 0.0 0.0
----- -----
Total Divested Business $12.7 $15.5
----- -----
Europe and Other International Markets:
Risk Management Solutions $0.0 $0.0
Sales & Marketing Solutions 0.0 0.0
Internet Solutions 0.0 0.0
----- -----
Total Divested Business $0.0 $0.0
----- -----
Total Corporation:
Risk Management Solutions $8.7 $8.9
Sales & Marketing Solutions 4.0 8.2
Internet Solutions 0.0 1.1
----- -----
Total Divested Business $12.7 $18.2
----- -----
2 Strategic Technology Investment:
Operating Expenses $9.6 $8.0
Selling and Administrative Expenses (1.6) 1.3
Depreciation and Amortization 0.4 0.6
----- -----
Total Operating Costs $8.4 $9.9
----- -----
3 Strategic Technology Investment:
Capital Expenditures $0.0 $0.7
Additions to Computer Software & Other Intangibles $7.5 $2.7
----- -----
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the
Securities and Exchange Commission.
The Dun & Bradstreet Corporation Schedule 5
GAAP Revenue Reconciliation and Detail (unaudited)
Quarter Ended March 31, 2012 vs. 2011
----------------------------------------------------------------------------------------
Traditional/VAPs as a
AFX Effects of BFX % of Total Customer Solution Sets/Core
-----------------------------------------------
% Change Foreign % Change 2012 2011
Fav/(Unfav) Exchange Fav/(Unfav) % Product Line/Core % Product Line/Core
----------- ---------- ----------- -------------------- ------------------------
Revenue:
-----------------------------------------------
North America:
Risk Management Solutions:
Traditional (3)% 0% (3)% 72% 43% 70% 44%
VAPs (11)% 0% (11)% 20% 12% 22% 13%
Supply Management Solutions (7)% 0% (7)% 8% 5% 8% 5%
Total Risk Management Solutions (5)% 0% (5)% 60% 62%
Sales & Marketing Solutions:
Traditional (6)% 0% (6)% 26% 8% 29% 8%
VAPs 10% 0% 10% 74% 22% 71% 20%
Total Sales & Marketing Solutions 5% 0% 5% 30% 28%
Internet Solutions 5% 0% 5% 10% 10%
Core Revenue (1)% 0% (1)%
Divested Business (100)% 0% (100)%
Total North America (2)% 0% (2)%
Asia Pacific:
Risk Management Solutions:
Traditional 14% 2% 12% 91% 68% 87% 70%
VAPs (20)% 1% (21)% 9% 7% 13% 10%
Supply Management Solutions 0% 0% 0% 0% 0% 0% 0%
Total Risk Management Solutions 9% 2% 7% 75% 80%
Sales & Marketing Solutions:
Traditional 33% (1)% 34% 81% 20% 88% 18%
VAPs N/M N/M N/M 19% 5% 12% 2%
Total Sales & Marketing Solutions 44% 0% 44% 25% 20%
Internet Solutions (14)% (8)% (6)% 0% 0%
Core Revenue 16% 1% 15%
Divested Business (18)% 4% (22)%
Total Asia Pacific 7% 3% 4%
Europe and Other International Markets:
Risk Management Solutions:
Traditional (2)% (1)% (1)% 79% 66% 82% 68%
VAPs 18% (1)% 19% 19% 16% 16% 14%
Supply Management Solutions 65% (6)% 71% 2% 1% 2% 1%
Total Risk Management Solutions 2% (1)% 3% 83% 83%
Sales & Marketing Solutions:
Traditional (4)% (1)% (3)% 63% 10% 67% 11%
VAPs 9% (1)% 10% 37% 6% 33% 5%
Total Sales & Marketing Solutions 0% (2)% 2% 16% 16%
Internet Solutions 21% (2)% 23% 1% 1%
Core Revenue 2% (1)% 3%
Divested Business 0% 0% 0%
Total Europe and Other International Markets 2% (1)% 3%
International:
Risk Management Solutions:
Traditional 5% 0% 5% 84% 66% 84% 69%
VAPs 5% 0% 5% 15% 12% 15% 12%
Supply Management Solutions 65% (6)% 71% 1% 1% 1% 0%
Total Risk Management Solutions 5% 0% 5% 79% 81%
Sales & Marketing Solutions:
Traditional 17% 0% 17% 73% 15% 77% 14%
VAPs 37% 0% 37% 27% 5% 23% 4%
Total Sales & Marketing Solutions 21% (1)% 22% 20% 18%
Internet Solutions 11% (4)% 15% 1% 1%
Core Revenue 8% 0% 8%
Divested Business (18)% 4% (22)%
Total International 4% 0% 4%
Total Corporation:
Risk Management Solutions:
Traditional 0% 0% 0% 76% 49% 75% 50%
VAPs (8)% 0% (8)% 19% 12% 20% 13%
Supply Management Solutions (4)% 0% (4)% 5% 4% 5% 4%
Total Risk Management Solutions (2)% 0% (2)% 65% 67%
Sales & Marketing Solutions:
Traditional 2% (1)% 3% 35% 9% 37% 10%
VAPs 11% 0% 11% 65% 18% 63% 16%
Total Sales & Marketing Solutions 8% 0% 8% 27% 26%
Internet Solutions 5% 0% 5% 8% 7%
Core Revenue 1% 0% 1%
Divested Business (30)% 4% (34)%
Total Revenue 0% 0% 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 6
Quarter Ended
-----------------------------------------------------------------------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
% of Core Product Line 2012 2011 2011 2011 2011 2010 2010 2010 2010 2009
----------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
North America Risk Management Solutions
Subscription (1) 73% 66% 69% 72% 72% 67% 69% 72% 72% 69%
Non-Subscription (1) 27% 34% 31% 28% 28% 33% 31% 28% 28% 31%
North America Risk Management Solutions
DNBi (2) 63% 57% 59% 61% 60% 57% 59% 60% 59% 54%
Non-DNBi (2) 37% 43% 41% 39% 40% 43% 41% 40% 41% 46%
Notes:
1 We define Subscription and Non-Subscription revenue as follows:
- Subscription revenue represents contracts that allow customers
unlimited use within predefined ranges, subject to certain
conditions. In these instances, we recognize revenue ratably over
the term of the contract, which is generally one year.
- Non-Subscription revenue represents all other revenue streams.
2 We define DNBi and Non-DNBi revenue as follows:
- DNBi, is our interactive, customizable online application that
offers our customers real time access to our most complete and
up-to-date global DUNSRight information, comprehensive monitoring
and portfolio analysis.
- Non-DNBi revenue represents all other revenue streams.
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the
Securities and Exchange Commission.
The Dun & Bradstreet Corporation Schedule 7
Effect of Divested Businesses on Total Revenue
Amounts in Millions
Quarter Ended March 31, 2011 Quarter Ended June 30, 2011 Quarter Ended September 30, 2011 Quarter Ended December 31, 2011 Full Year Ended December 31, 2011
----------------------------------------- ---------------------------------------- ----------------------------------------- ---------------------------------------- -----------------------------------------
Divested Divested Divested Divested Divested
and and and and and
Total Segment Shut-Down Core Total Segment Shut-Down Core Total Segment Shut-Down Core Total Segment Shut-Down Core Total Segment Shut-Down Core
Revenue Change Businesses* Revenue Revenue Change Businesses* Revenue Revenue Change Businesses* Revenue Revenue Change Businesses* Revenue Revenue Change Businesses* Revenue
------- -------- ----------- ------- ------- ------- ----------- ------- ------- -------- ----------- ------- ------- ------- ----------- ------- ------- -------- ----------- -------
North America:
Risk Management Solutions 179.6 - 0.9 178.7 177.8 - 0.2 177.6 183.5 - - 183.5 189.9 - - 189.9 730.8 - 1.1 729.7
Sales & Marketing Solutions 82.5 - 0.7 81.8 80.7 - 1.0 79.7 92.9 - 1.4 91.5 139.9 - 0.6 139.3 396.0 - 3.7 392.3
Internet Solutions 29.1 - 1.1 28.0 29.8 - 1.1 28.7 30.6 - 0.9 29.7 30.5 - 0.8 29.7 120.0 - 3.9 116.1
------- ------- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- -------
Total North America 291.2 - 2.7 288.5 288.3 - 2.3 286.0 307.0 - 2.3 304.7 360.3 - 1.4 358.9 1,246.8 - 8.7 1,238.1
Asia Pacific:
Risk Management Solutions 37.2 3.0 8.0 32.2 44.0 2.1 9.2 36.9 47.2 1.8 10.1 38.9 45.9 2.0 10.1 37.8 174.3 8.9 37.4 145.8
Sales & Marketing Solutions 15.7 - 11.6 4.1 22.3 - 17.1 5.2 20.3 - 16.2 4.1 25.8 - 19.8 6.0 84.1 - 64.7 19.4
Internet Solutions 0.2 - - 0.2 0.3 - - 0.3 0.2 - - 0.2 0.3 - 0.1 0.2 1.0 - 0.1 0.9
------- ------- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- -------
Total Asia Pacific 53.1 3.0 19.6 36.5 66.6 2.1 26.3 42.4 67.7 1.8 26.3 43.2 72.0 2.0 30.0 44.0 259.4 8.9 102.2 166.1
Europe and Other International Markets:
Risk Management Solutions 49.7 (3.0 ) - 46.7 52.6 (2.1 ) - 50.5 52.4 (1.8 ) - 50.6 54.5 (2.0 ) - 52.5 209.2 (8.9 ) - 200.3
Sales & Marketing Solutions 9.0 - - 9.0 8.8 - - 8.8 11.6 - - 11.6 11.4 - - 11.4 40.8 - - 40.8
Internet Solutions 0.6 - - 0.6 0.5 - - 0.5 0.7 - - 0.7 0.5 - - 0.5 2.3 - - 2.3
------- ------- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- -------
Total Europe and Other International Markets 59.3 (3.0 ) - 56.3 61.9 (2.1 ) - 59.8 64.7 (1.8 ) - 62.9 66.4 (2.0 ) - 64.4 252.3 (8.9 ) - 243.4
Total International:
Risk Management Solutions 86.9 - 8.0 78.9 96.6 - 9.2 87.4 99.6 - 10.1 89.5 100.4 - 10.1 90.3 383.5 - 37.4 346.1
Sales & Marketing Solutions 24.7 - 11.6 13.1 31.1 - 17.1 14.0 31.9 - 16.2 15.7 37.2 - 19.8 17.4 124.9 - 64.7 60.2
Internet Solutions 0.8 - - 0.8 0.8 - - 0.8 0.9 - - 0.9 0.8 - 0.1 0.7 3.3 - 0.1 3.2
------- ------- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- -------
Total International 112.4 - 19.6 92.8 128.5 - 26.3 102.2 132.4 - 26.3 106.1 138.4 - 30.0 108.4 511.7 - 102.2 409.5
Total Corporation:
Risk Management Solutions 266.5 - 8.9 257.6 274.4 - 9.4 265.0 283.1 - 10.1 273.0 290.3 - 10.1 280.2 1,114.3 - 38.5 1,075.8
Sales & Marketing Solutions 107.2 - 12.3 94.9 111.8 - 18.1 93.7 124.8 - 17.6 107.2 177.1 - 20.4 156.7 520.9 - 68.4 452.5
Internet Solutions 29.9 - 1.1 28.8 30.6 - 1.1 29.5 31.5 - 0.9 30.6 31.3 - 0.9 30.4 123.3 - 4.0 119.3
------- ------- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- ------- ------- ---- ----------- -------
Total Corporation Revenue 403.6 - 22.3 381.3 416.8 - 28.6 388.2 439.4 - 28.6 410.8 498.7 - 31.4 467.3 1,758.5 - 110.9 1,647.6
======= ======= =========== ======= ======= ==== =========== ======= ======= ==== =========== ======= ======= ==== =========== ======= ======= ==== =========== =======
* Divested Businesses Reflected in our Guidance in February:
North America
- Purisma 0.7 1.0 1.4 0.6 3.7
- Small supply management consulting business 0.9 0.2 - - 1.1
Asia Pacific
- Market research business in China which consisted of two joint 3.2 3.4 4.7 4.7 16.0
ventures
- Domestic portion of our Japan operations 12.3 17.2 15.9 18.8 64.2
Divested Revenue Reflected in our Guidance in February 17.1 21.8 22.0 24.1 85.0
=========== =========== =========== =========== ===========
* Revised Divested and Shut-Down Businesses Revenue for Revised
Guidance:
North America
- AllBusiness 1.1 1.1 0.9 0.8 3.9
Asia Pacific
- Roadway China 4.1 5.7 5.7 6.5 22.0
Total Revised Divested and Shut-Down Businesses Revenue 22.3 28.6 28.6 31.4 110.9
=========== =========== =========== =========== ===========
Quarter Ended March 31, 2012
------------------------------------------
Divested
and
Total Segment Shut-Down Core
Revenue Change Businesses* Revenue
------- ------- ----------- -------
North America:
Risk Management Solutions 170.3 - - 170.3
Sales & Marketing Solutions 86.1 - - 86.1
Internet Solutions 29.1 - - 29.1
------- ------- ----------- -------
Total North America 285.5 - - 285.5
Asia Pacific:
Risk Management Solutions 43.8 - 8.7 35.1
Sales & Marketing Solutions 15.9 - 9.4 6.5
Internet Solutions 0.2 - - 0.2
------- ------- ----------- -------
Total Asia Pacific 59.9 - 18.1 41.8
Europe and Other International Markets:
Risk Management Solutions 47.7 - - 47.7
Sales & Marketing Solutions 9.0 - - 9.0
Internet Solutions 0.7 - - 0.7
------- ------- ----------- -------
Total Europe and Other International Markets 57.4 - - 57.4
Total International:
Risk Management Solutions 91.5 - 8.7 82.8
Sales & Marketing Solutions 24.9 - 9.4 15.5
Internet Solutions 0.9 - - 0.9
------- ------- ----------- -------
Total International 117.3 - 18.1 99.2
Total Corporation:
Risk Management Solutions 261.8 - 8.7 253.1
Sales & Marketing Solutions 111.0 - 9.4 101.6
Internet Solutions 30.0 - - 30.0
------- ------- ----------- -------
Total Corporation Revenue 402.8 - 18.1 384.7
======= ======= =========== =======
* Revised Divested and Shut-Down Businesses Revenue for Revised
Guidance:
Asia Pacific
- Domestic portion of our Japan operations 12.7
- Roadway China 5.4
Total Revised Divested and Shut-Down Businesses Revenue 18.1
===========
This financial information should be read in conjunction with
the consolidated financial statements and related notes of The Dun &
Bradstreet Corporation contained in filings with the
Securities and Exchange Commission.
SOURCE: D&B
D&B
Patricia Colpitts (Media)
512-578-8016
pcolpitts@dnb.com
or
Roger Sachs, CFA (Investors/Analysts)
973-921-5914
sachsr@dnb.com
| 
