Dun & Bradstreet Reports 2016 Results

  • Achieves all Guidance Metrics
  • Increases Quarterly Dividend

SHORT HILLS, N.J.--()--Dun & Bradstreet (NYSE:DNB) reported results for the fourth quarter and full year ended December 31, 2016. For the fourth quarter of 2016, GAAP revenue increased 4% year over year, after the effect of foreign exchange (up 5% before the effect of foreign exchange); As Adjusted revenue increased 4% year over year and organic revenue increased 5% year over year, each before the effect of foreign exchange. For full year 2016, GAAP revenue increased 4% year over year, after the effect of foreign exchange (up 5% before the effect of foreign exchange); As Adjusted revenue increased 4% year over year and organic revenue increased 2% year over year, each before the effect of foreign exchange.

“I’m proud of our team’s performance in the fourth quarter,” said Bob Carrigan, Chairman and CEO of Dun & Bradstreet. “We finished 2016 on a strong note, driving revenue growth and achieving all of our full year guidance metrics. As we enter 2017, we remain focused on executing our growth strategy and delivering increasing value to our customers across all of our lines of business.”

Fourth Quarter 2016 Highlights

 

           
Quarter Ended AFX BFX
December 31, % Change % Change
(Amounts in millions, except per share data) 2016 2015 Fav (Unfav) Fav (Unfav)
GAAP Revenue $ 517.1 $ 499.3 4% 5%
As Adjusted Revenue $ 517.1 $ 504.4 2% 4%
Organic Revenue $ 512.4 $ 495.4 5%
 
GAAP Operating Income $ 162.7 $ 128.7 26%
As Adjusted Operating Income $ 180.7 $ 174.4 4%
 
GAAP Diluted Earnings (Loss) Per Share $ 2.10 $ 2.11 0%
As Adjusted Diluted Earnings (Loss) Per Share $ 2.99 $ 2.87 4%
 

See attached Schedules 5 and 6 for a reconciliation of As Adjusted metrics to GAAP results, as well as the definitions of the non-GAAP financial measures that the Company uses to evaluate the business.

Deferred revenue for the Company as of December 31, 2016 was $628.1 million, down 3% year over year; Americas was $564.0 million, up 3% year over year and Non-Americas was $64.1 million, down 37% year over year. After adjusting for the effect of foreign exchange, dispositions of our Benelux and Latin America operations and the impacts of the write-down of deferred revenue due to purchase accounting, total Company deferred revenue was up 2%, Americas was up 3% and Non-Americas was down 2%, each as compared to last year.

Fourth Quarter 2016 Segment Results

Americas

  • GAAP revenue of $441.2 million, up 6% year over year both after and before the effect of foreign exchange; As Adjusted revenue of $441.2 million, up 5% year over year after the effect of foreign exchange (up 4% before the effect of foreign exchange);
  • GAAP operating income of $175.6 million, up 19% year over year; As Adjusted operating income of $187.3 million, up 7% year over year.

Non-Americas

  • GAAP revenue and As Adjusted revenue of $75.9 million, each down 8% year over year after the effect of foreign exchange (flat before the effect of foreign exchange);
  • GAAP operating income of $12.2 million, down 38% year over year. As Adjusted operating income of $14.6 million, down 25% year over year.

See attached Schedules 3, 4, 5, and 6 for additional detail.

Full Year 2016 Highlights

 

           
Full Year AFX BFX
December 31, % Change % Change
(Amounts in millions, except per share data) 2016 2015 Fav (Unfav) Fav (Unfav)
GAAP Revenue $ 1,703.7 $ 1,637.1 4% 5%
As Adjusted Revenue $ 1,706.8 $ 1,657.0 3% 4%
Organic Revenue $ 1,641.8 $ 1,624.7 2%
 
GAAP Operating Income $ 359.2 $ 337.0 7%
As Adjusted Operating Income $ 448.5 $ 437.3 3%
 
GAAP Diluted Earnings (Loss) Per Share(1) $ 2.65 $ 4.64 (43%)
As Adjusted Diluted Earnings (Loss) Per Share $ 7.35 $ 7.25 1%
 
Year-To-Date

Dec 31,
2016

Dec 31,
2015

Net Cash Provided By Operating Activities - Continuing Operations (GAAP) $ 322.7 $ 336.8
Free Cash Flow $ 262.5 $ 272.0
 
(1)   GAAP diluted earnings per share includes a non-cash loss of $2.66 for full year 2016 related to the sale of operations in Benelux and Latin America.
 

See attached Schedules 5 and 6 for a reconciliation of As Adjusted metrics to GAAP results, as well as the definitions of the non-GAAP financial measures that the Company uses to evaluate the business.

Full Year 2016 Segment Results

Americas

  • GAAP revenue of $1,416.1 million, up 7% year over year both after and before the effect of foreign exchange; As Adjusted revenue of $1,419.2 million, up 5% year over year both after and before the effect of foreign exchange;
  • GAAP operating income of $429.5 million, up 16% year over year; As Adjusted operating income of $465.0 million, up 10% year over year.

Non-Americas

  • GAAP revenue and As Adjusted revenue of $287.6 million, each down 7% year over year after the effect of foreign exchange (down 1% before the effect of foreign exchange);
  • GAAP operating income of $59.4 million, down 28% year over year. As Adjusted operating income of $62.2 million, down 25% year over year.

See attached Schedules 3, 4, 5, and 6 for additional detail.

Dividend Increase

Dun & Bradstreet today announced that it has declared an increased quarterly cash dividend of $0.5025 per share, up from the Company’s prior quarterly dividend of $0.4825 per share. This quarterly cash dividend is payable on March 10, 2017, to shareholders of record as of the close of business on February 23, 2017.

Use of Non-GAAP Financial Measures

In addition to reporting generally accepted accounting principles in the United States of America (“GAAP”) results, the Company evaluates performance and reports on a total company basis and on a business segment level basis its results (such as revenue, operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) on an “As Adjusted” basis. The term “As Adjusted” refers to the following: the elimination of the effect on revenue due to purchase accounting fair value adjustments to deferred revenue; restructuring charges; other non-core gains and charges that are not in the normal course of our business (such as gains and losses on sales of businesses, impairment charges and material tax and legal settlements); acquisition and divestiture-related fees (such as costs for bankers, legal fees, diligence costs, retention payments, and contingent consideration adjustments); and acquisition-related intangible amortization expense. A recurring component of our “As Adjusted” basis is our restructuring charges, which we believe do not reflect our underlying business performance. Such charges are variable from period to period based upon actions identified and taken during each period. Additionally, our “As Adjusted” results exclude the results of Discontinued Operations.

We also isolate the effects of changes in foreign exchange rates on our revenue growth because we believe it is useful for investors to be able to compare revenue from one period to another, both after and before the effects of foreign exchange. The change in our operating performance attributable to foreign currency rates is determined by converting both our prior and current periods by a constant rate. As a result, we monitor our “As Adjusted” revenue growth both after and before the effects of foreign exchange.

We also analyze “As Adjusted” revenue growth on an organic basis because management believes this information provides important insight into the underlying/ongoing performance of the business. Organic revenue excludes revenue from acquired businesses for one year from the date of the acquisition and net divested revenue which we define as the historical revenues from the divested businesses net of the annual ongoing future revenue streams resulting from the commercial arrangements entered into in connection with such divestitures.

We may from time to time use the term “sales”, which we define as the annual value of committed customer contracts. This term is often referred to as “bookings” or “commitments” by other companies.

We also monitor free cash flow as a measure of our business. We define free cash flow as net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles. Free cash flow measures our available cash flow for potential debt repayment, acquisitions, share repurchases, dividend payments and additions to cash, cash equivalents and short-term investments. We believe free cash flow to be relevant and useful to our investors as this measure is used by our management in evaluating the funding available after supporting our ongoing business operations and our portfolio of investments.

We also monitor deferred revenue after adjusting for the effect of foreign exchange, dispositions, acquisitions and the impacts of the write-down of deferred revenue due to purchase accounting.

We believe that the use of our non-GAAP financial measures provides useful supplemental information to our investors. Non-GAAP results are presented only as a supplement to the financial statements presented in accordance with GAAP. The non-GAAP financial information is provided to enhance the reader’s understanding of our underlying financial performance. These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of revenue, operating income, operating margin, net income, diluted EPS or net cash provided by operating activities as determined in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented and defined in Schedules 5 and 6 attached to this press release.

Fourth Quarter 2016 Teleconference

As previously announced, Dun & Bradstreet will review its fourth quarter and full year 2016 results and its 2017 outlook in a conference call with the investment community on Thursday, February 9, 2017, at 8 a.m. ET. Live audio, as well as a replay of the conference call will be accessible on Dun & Bradstreet's Investor Relations Web site at http://investor.dnb.com.

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

About Dun & Bradstreet®

Dun & Bradstreet (NYSE: DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect our customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics. For more about Dun & Bradstreet, visit DNB.com. Twitter: @DnBUS

Forward-Looking and Cautionary Statements

We may from time-to-time make written or oral “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements contained in filings with the Securities and Exchange Commission, in reports to shareholders and in press releases and investor Web casts. These forward-looking statements include, without limitation, any statements related to financial guidance or strategic goals. These forward-looking statements can also be identified by the use of words like “anticipates,” “aspirations,” “believes,” “commits,” “continues,” “estimates,” “expects,” “goals,” “guidance,” “intends,” “plans,” “projects,” “strategy,” “targets,” “will” and other words of similar meaning. They can also be identified by the fact that they do not relate strictly to historical or current facts.

We cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements and whether to invest in, or remain invested in, our securities.

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are identifying the following important factors that, individually or in the aggregate, could cause actual results to differ materially from those contained in any forward-looking statements made by us; any such statement is qualified by reference to the following cautionary factors: (i) reliance on third parties to support critical components of our business model; (ii) our ability to protect our information technology infrastructure against cyber-attack and unauthorized access; (iii) risks associated with potential violations of the Foreign Corrupt Practices Act and similar laws; (iv) customer demand for our products; (v) the successful implementation of our business strategy; (vi) the integrity and security of our global database and data centers; (vii) our ability to maintain the integrity of our brand and reputation; (viii) our ability to renew large contracts and the related revenue recognition and timing thereof; (ix) the impact of macro-economic challenges on our customers and vendors; (x) future laws or regulations with respect to the collection, compilation, storage, use, cross-border transfer and/or publication of information and adverse publicity or litigation concerning the commercial use of such information; (xi) our ability to acquire and successfully integrate other businesses, products and technologies; (xii) adherence by third-party members of our Dun & Bradstreet Worldwide Network, or other third parties who license and sell under the Dun & Bradstreet name, to our quality standards and to the renewal of their agreements with Dun & Bradstreet; (xiii) the effects of foreign and evolving economies, exchange rate fluctuations, legislative or regulatory requirements and the implementation or modification of fees or taxes to collect, compile, store, use, transfer cross-border and/or publish data; and (xiv) the other factors described under the headings “Risk Factors,” “Management’s Discussion and Analysis,” “Legal Proceedings” and elsewhere in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and the Company’s other reports or documents filed or furnished with the Securities and Exchange Commission.

It should be understood that it is not possible to predict or identify all risk factors. Consequently, the above list of important factors and the Risk Factors discussed in Item 1A. of our Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q should not be considered to be a complete discussion of all of our potential trends, risks and uncertainties. Except as otherwise required by federal securities laws, we do not undertake any obligation to update any forward-looking statement we may make from time-to-time.

                       
The Dun & Bradstreet Corporation Schedule 1

Consolidated Statement of Operations (unaudited) - GAAP Results

 
Effects of Effects of
Quarter Ended AFX Foreign BFX Full Year AFX Foreign BFX
December 31, % Change Exchange % Change December 31, % Change Exchange % Change
Dollar amounts in millions, except per share data 2016 2015 Fav (Unfav) Fav (Unfav) Fav (Unfav) 2016 2015 Fav (Unfav) Fav (Unfav) Fav (Unfav)
 
Revenue:
 
Americas (1) $ 441.2 $ 416.9 6% 0.0% 6% $ 1,416.1 $ 1,329.1 7% (0.1)% 7%
Non-Americas   75.9   82.4 (8)% (7.8)% 0%   287.6   308.0 (7)% (5.4)% (1)%
 
Total Revenue (2) $ 517.1 $ 499.3

4%

(1.3)% 5% $ 1,703.7 $ 1,637.1 4% (1.2)% 5%
 
Operating Income (Loss):
 
Americas (3) $ 175.6 $ 147.8 19% $ 429.5 $ 369.3 16%
Non-Americas (4) 12.2 19.7

(38)%

59.4 83.1 (28)%
 
Corporate and Other (5)   (25.1)     (38.8) 35% (129.7)   (115.4) (12)%
 
Total Operating Income (6) 162.7 128.7 26% 359.2 337.0 7%
 
Interest Income 0.4 0.5 (28)% 1.8 1.6 15%
Interest Expense (13.0) (14.0) 7% (53.1) (51.0) (4)%
Other Income (Expense) - Net (9)   (12.4)   (0.2) N/M   (104.3)   (7.6) N/M
 
Non-Operating Income (Expense) - Net (10)   (25.0)   (13.7) (83)%   (155.6)   (57.0) N/M
 
Income Before Provision for Income Taxes 137.7 115.0 20% 203.6 280.0 (27)%
 
Less: Provision for Income Taxes (11) 54.9 37.7 (45)% 99.9 74.2 (35)%
Equity in Net Income (Loss) of Affiliates   (0.1)   (0.2) 54%   2.8   2.7 4%
 
Net Income From Continuing Operations 82.7 77.1 7% 106.5 208.5 (49)%
 
Less: Net (Income) Loss Attributable to the Noncontrolling Interest   (1.5)   (1.2) (32)%   (5.0)   (4.3) (16)%
 
Net Income From Continuing Operations Attributable to Dun & Bradstreet 81.2 75.9 7% 101.5 204.2 (50)%
 
Income from Discontinued Operations, Net of Income Taxes - - 0% - 2.1 N/M
Loss on Disposal of Business, Net of Tax Impact (3.2) 0.8 N/M (4.1) (37.5) 89%
       
Income (Loss) from Discontinued Operations, Net of Income Taxes   (3.2)   0.8 N/M   (4.1)   (35.4) 88%
 
Net Income Attributable to Dun & Bradstreet (7) $ 78.0 $ 76.7 2% $ 97.4 $ 168.8 (42)%
 
Basic Earnings (Loss) Per Share:
From Continuing Operations $ 2.21 $ 2.10 5% $ 2.78 $ 5.66 (51)%
From Discontinued Operations   (0.09)   0.02 N/M   (0.11)   (0.98) 89%
 
Basic Earnings (Loss) Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders

$ 2.12 $ 2.12 0% $ 2.67 $ 4.68 (43)%
 
Diluted Earnings (Loss) Per Share:
From Continuing Operations $ 2.19 $ 2.08 5% $ 2.76 $ 5.61 (51)%
From Discontinued Operations   (0.09)   0.03 N/M   (0.11)   (0.97) 89%
 
Diluted Earnings (Loss) Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders (8)

$ 2.10 $ 2.11 0% $ 2.65 $ 4.64 (43)%
 
Weighted Average Number of Shares Outstanding:
Basic   36.8   36.2 (2)%   36.5   36.1 (1)%
Diluted   37.1   36.4 (2)%   36.8   36.4 (1)%
 
 
Operating Margins (Calculated on Total Revenue)
 
Americas 39.8% 35.5% 30.3% 27.8%
Non-Americas 16.0% 23.8% 20.6% 27.0%
Total Company   31.5%   25.8%   21.1%   20.6%
 
Effective Tax Rate   39.8%   32.7%   49.0%   26.5%
 

AFX - After Effects of Foreign Exchange

 

BFX - Before Effects of Foreign Exchange

 

N/M - Not Meaningful

This financial information should be read in conjunction with the consolidated financial statements and related notes of The Dun & Bradstreet Corporation contained in filings with the Securities and Exchange Commission.

 
                       
The Dun & Bradstreet Corporation Schedule 2

Certain Selected As Adjusted* Metrics (unaudited)

 
Effects of Effects of
Quarter Ended AFX Foreign BFX Full Year AFX Foreign BFX
December 31, % Change Exchange % Change December 31, % Change Exchange % Change
Dollar amounts in millions, except per share data 2016 2015 Fav (Unfav) Fav (Unfav) Fav (Unfav) 2016 2015 Fav (Unfav) Fav (Unfav) Fav (Unfav)
 
Revenue:
 
Americas (1) $ 441.2 $ 422.0

5%

0.1%

4%

$ 1,419.2 $ 1,349.0

5%

(0.1)%

5%

Non-Americas   75.9   82.4 (8)% (7.8)%

0%

  287.6   308.0 (7)% (5.4)% (1)%
 
Total Revenue (2) $ 517.1 $ 504.4

2%

(1.3)%

4%

$ 1,706.8 $ 1,657.0

3%

(1.1)%

4%

 
 
Organic Revenue:**
Total Revenue $ 517.1 $ 504.4

4%

$ 1,706.8 $ 1,657.0

4%

Less:
Acquisitions - - N/M 40.0 - N/M
Net Divested   4.7   9.0 N/M   25.0   32.3 N/M
 
Organic Revenue $ 512.4 $ 495.4

5%

$ 1,641.8 $ 1,624.7

2%

 
 
Operating Income (Loss):
 
Americas (3) $ 187.3 $ 174.6

7%

$ 465.0 $ 424.2

10%

Non-Americas (4) 14.6 19.6

(25)%

62.2 82.7 (25)%
 
Corporate and Other (5)   (21.2)   (19.8) (6)%   (78.7)   (69.6) (13)%
 
Total Operating Income (6) $ 180.7 $ 174.4

4%

$ 448.5 $ 437.3

3%

 
 
Net Income Attributable to Dun & Bradstreet (7) $ 110.8 $ 104.8

6%

$ 270.2 $ 263.9

2%

 
 
Basic Earnings Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders

$ 3.01 $ 2.90

4%

$ 7.41 $ 7.31

1%

 
Diluted Earnings Per Share of Common Stock

Attributable to Dun & Bradstreet Common Shareholders (8)

$ 2.99 $ 2.87

4%

$ 7.35 $ 7.25

1%

 
Weighted Average Number of Shares Outstanding:
Basic   36.8   36.2 (2)%   36.5   36.1 (1)%
Diluted   37.1   36.4

(2)%

  36.8   36.4 (1)%
 
 

Other Information:

 
Interest Income $ 0.4 $ 0.5 (28)% $ 1.8 $ 1.6

15%

Interest Expense (13.0) (14.0)

7%

(53.1) (51.0) (4)%
Other Income (Expense) - Net (9)   (0.2)   (0.2) (34)%   (0.7)   0.8 N/M
 
Non-Operating Income (Expense) - Net (10) $ (12.8) $ (13.7)

6%

$ (52.0) $ (48.6) (7)%
 
Provision for Income Taxes (11) $ 55.5 $ 54.5 (2)% $ 124.1 $ 123.2

(1)%

 
Operating Margins (Calculated on Total Revenue)
 
Americas

42.4%

41.4%

32.8%

31.4%

Non-Americas

19.3%

23.8%

21.6%

26.9%

Total Company  

35.0%

 

34.6%

 

26.3%

 

26.4%

 
Effective Tax Rate  

33.1%

 

33.9%

 

31.3%

 

31.7%

 

AFX - After Effects of Foreign Exchange

 

BFX - Before Effects of Foreign Exchange

 

N/M - Not Meaningful

See Schedule 6 (Notes to Schedules) for a reconciliation of each of these As Adjusted metrics to the corresponding GAAP metrics.

 

* As Adjusted includes the effect of divesting our operations in Benelux and Latin America

** See Schedule 6 (Notes to Schedules) for definition of Organic Revenue

 
                     
The Dun & Bradstreet Corporation Schedule 3

Supplemental Revenue Detail (unaudited) - GAAP Results

 
 
 
Quarter Ended Effects of Full Year Effects of
December 31, AFX Foreign BFX December 31, AFX Foreign BFX
% Change Exchange % Change % Change Exchange % Change
Amounts in millions 2016 2015 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav) 2016 2015 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
 
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit $ 131.5 $ 136.5 (4)%

0.1%

(4)% $ 518.5 $ 530.7 (2)% (0.2)% (2)%
Other Enterprise Risk Management   78.5   67.8

16%

0.0%

16%

  256.9   202.7

27%

(0.3)%

27%

Total Americas Risk Management Solutions 210.0 204.3

3%

0.1%

3%

775.4 733.4

6%

(0.2)%

6%

 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 39.8 $ 43.4 (9)%

0.0%

(9)% $ 147.3 $ 147.2

0%

(0.1)%

0%

Advanced Marketing Solutions   191.4   169.2

13%

0.0%

13%

  493.4   448.5

10%

(0.1)%

10%

Total Americas Sales and Marketing Solutions 231.2 212.6

9%

0.0%

9%

640.7 595.7

8%

(0.1)%

8%

       
Total Americas Revenue $ 441.2 $ 416.9

6%

0.0%

6%

$ 1,416.1 $ 1,329.1

7%

(0.1)%

7%

 
Non-Americas:
Risk Management Solutions
Trade Credit $ 43.5 $ 45.8 (5)% (7.5)%

2%

$ 169.4 $ 181.5 (7)% (5.2)% (1)%
Other Enterprise Risk Management   17.9   18.3 (2)% (6.8)%

5%

  67.0   63.4

6%

(5.5)%

11%

Total Non-Americas Risk Management Solutions 61.4 64.1 (4)% (7.3)%

3%

236.4 244.9 (3)% (5.2)%

2%

 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 4.8 $ 5.4 (10)% (4.2)% (6)% $ 16.6 $ 18.4 (9)% (4.5)% (5)%
Advanced Marketing Solutions   9.7   12.9 (25)% (11.7)% (13)%   34.6   44.7 (23)% (7.1)% (16)%
Total Non-Americas Sales and Marketing Solutions   14.5   18.3 (21)% (9.5)% (11)%   51.2   63.1 (19)% (6.3)% (13)%
 
Total Non-Americas Revenue $ 75.9 $ 82.4 (8)% (7.8)%

0%

$ 287.6 $ 308.0 (7)% (5.4)% (1)%
 
Total Corporation:
Risk Management Solutions
Trade Credit $ 175.0 $ 182.3 (4)% (1.8)% (2)% $ 687.9 $ 712.2 (3)% (1.4)% (2)%
Other Enterprise Risk Management   96.4   86.1

12%

(1.5)%

14%

  323.9   266.1

22%

(1.6)%

23%

Total Risk Management Solutions 271.4 268.4

1%

(1.7)%

3%

1,011.8 978.3

3%

(1.5)%

5%

 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 44.6 $ 48.8 (9)% (0.5)% (8)% $ 163.9 $ 165.6 (1)% (0.6)%

0%

Advanced Marketing Solutions   201.1   182.1

10%

(0.8)%

11%

  528.0   493.2

7%

(0.7)%

8%

Total Sales and Marketing Solutions   245.7   230.9

6%

(0.7)%

7%

  691.9   658.8

5%

(0.7)%

6%

 
Total Revenue $ 517.1 $ 499.3

4%

(1.3)%

5%

$ 1,703.7 $ 1,637.1

4%

(1.2)%

5%

 
Trade Credit Revenue:
Americas:
DNBi $ 96.4 $ 97.5 (1)%

0.0%

(1)% $ 380.5 $ 391.0 (3)% (0.2)% (3)%
Other Trade Credit   35.1   39.0 (10)%

0.2%

(10)%

  138.0   139.7 (1)% (0.2)% (1)%
Total Americas Trade Credit Revenue 131.5 136.5 (4)%

0.1%

(4)% 518.5 530.7 (2)% (0.2)% (2)%
 
Non-Americas:
DNBi $ 5.4 $ 6.2 (14)% (9.9)% (4)% $ 23.7 $ 25.2 (6)% (6.2)%

0%

Other Trade Credit   38.1   39.6 (4)% (7.1)%

3%

  145.7   156.3 (7)% (5.0)% (2)%
Total Non-Americas Trade Credit Revenue 43.5 45.8 (5)% (7.5)%

2%

169.4 181.5 (7)% (5.2)% (1)%
 
Total Corporation:
DNBi $ 101.8 $ 103.7 (2)% (0.6)% (1)% $ 404.2 $ 416.2 (3)% (0.5)% (2)%
Other Trade Credit   73.2   78.6 (7)% (3.5)% (3)%   283.7   296.0 (4)% (2.7)% (1)%
Total Trade Credit Revenue $ 175.0 $ 182.3 (4)% (1.8)% (2)% $ 687.9 $ 712.2 (3)% (1.4)% (2)%
 
Total Revenue:

 

Americas:
Direct $ 394.4 $ 379.2

4%

0.0%

4%

$ 1,282.5 $ 1,216.7

5%

(0.2)%

6%

Alliances & Partners   46.8   37.7

24%

0.5%

24%

  133.6   112.4

19%

0.4%

18%

Total Americas Revenue 441.2 416.9

6%

0.0%

6%

1,416.1 1,329.1

7%

(0.1)%

7%

 
Non-Americas:
Direct $ 47.7 $ 57.0 (16)% (8.7)% (8)% $ 191.4 $ 214.2 (11)% (6.2)% (4)%
Alliances & Partners   28.2   25.4

11%

(5.8)%

17%

  96.2   93.8

2%

(3.7)%

6%

Total Non-Americas Revenue 75.9 82.4 (8)% (7.8)%

0%

287.6 308.0 (7)% (5.4)% (1)%
 
Total Corporation:
Direct $ 442.1 $ 436.2 1 % (1.1)%

2%

$ 1,473.9 $ 1,430.9

3%

(1.1)%

4%

Alliances & Partners   75.0   63.1 19 % (2.1)%

21%

  229.8   206.2

11%

(1.5)%

13%

Total Revenue $ 517.1 $ 499.3

4%

(1.3)%

5%

$ 1,703.7 $ 1,637.1

4%

(1.2)%

5%

 

This financial information should be read in conjunction with the consolidated financial statements and related notes of The Dun & Bradstreet Corporation contained in filings with the Securities and Exchange Commission.

 
                       
The Dun & Bradstreet Corporation Schedule 4

Supplemental Revenue Detail (unaudited) - As Adjusted*

 
 
 
Quarter Ended Effects of Full Year Effects of
December 31, AFX Foreign BFX December 31, AFX Foreign BFX
% Change Exchange % Change % Change Exchange % Change
Amounts in millions 2016 2015 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav) 2016 2015 Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
 
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit $ 131.5 $ 137.0 (4)% 0.1% (4)% $ 518.8 $ 532.6 (3)% (0.2)% (2)%
Other Enterprise Risk Management   78.5   71.3 10% 0.0% 10%   259.1   215.6 20% (0.3)% 20%
Total Americas Risk Management Solutions 210.0 208.3 1% 0.1% 1% 777.9 748.2 4% (0.2)% 4%
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 39.8 $ 44.3 (10)% 0.0% (10)% $ 147.9 $ 150.6 (2)% (0.1)% (2)%
Advanced Marketing Solutions   191.4   169.4 13% 0.0% 13%   493.4   450.2 10% (0.1)% 10%
Total Americas Sales and Marketing Solutions   231.2   213.7 8% 0.0% 8%   641.3   600.8 7% (0.1)% 7%
 
Total Americas Revenue $ 441.2 $ 422.0 5% 0.1% 4% $ 1,419.2 $ 1,349.0 5% (0.1)% 5%
 
Non-Americas:
Risk Management Solutions
Trade Credit $ 43.5 $ 45.8 (5)% (7.5)% 2% $ 169.4 $ 181.5 (7)% (5.2)% (1)%
Other Enterprise Risk Management   17.9   18.3 (2)% (6.8)% 5%   67.0   63.4 6% (5.5)% 11%
Total Non-Americas Risk Management Solutions 61.4 64.1 (4)% (7.3)% 3% 236.4 244.9 (3)% (5.2)% 2%
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 4.8 $ 5.4 (10)% (4.2)% (6)% $ 16.6 $ 18.4 (9)% (4.5)% (5)%
Advanced Marketing Solutions   9.7   12.9 (25)% (11.7)% (13)%   34.6   44.7 (23)% (7.1)% (16)%
Total Non-Americas Sales and Marketing Solutions   14.5   18.3 (21)% (9.5)% (11)%   51.2   63.1 (19)% (6.3)% (13)%
 
Total Non-Americas Revenue $ 75.9 $ 82.4 (8)% (7.8)% 0% $ 287.6 $ 308.0 (7)% (5.4)% (1)%
 
Total Corporation:
Risk Management Solutions
Trade Credit $ 175.0 $ 182.8 (4)% (1.8)% (2)% $ 688.2 $ 714.1 (4)% (1.4)% (2)%
Other Enterprise Risk Management   96.4   89.6 8% (1.4)% 9%   326.1   279.0 17% (1.5)% 18%
Total Risk Management Solutions 271.4 272.4 0% (1.7)% 1% 1,014.3 993.1 2% (1.4)% 4%
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 44.6 $ 49.7 (10)% (0.5)% (10)% $ 164.5 $ 169.0 (3)% (0.6)% (2)%
Advanced Marketing Solutions   201.1   182.3 10% (0.8)% 11%   528.0   494.9 7% (0.7)% 7%
Total Sales and Marketing Solutions   245.7   232.0 6% (0.7)% 7%   692.5   663.9 4% (0.7)% 5%
 
Total Revenue $ 517.1 $ 504.4 2% (1.3)% 4% $ 1,706.8 $ 1,657.0 3% (1.1)% 4%
 
Trade Credit Revenue:
Americas:
DNBi $ 96.4 $ 97.6 (1)% 0.0% (1)% $ 380.6 $ 391.5 (3)% (0.2)% (3)%
Other Trade Credit   35.1   39.4 (11)% 0.2% (11)%   138.2   141.1 (2)% (0.2)% (2)%
Total Americas Trade Credit Revenue 131.5 137.0 (4)% 0.1% (4)% 518.8 532.6 (3)% (0.2)% (2)%
 
Non-Americas:
DNBi $ 5.4 $ 6.2 (14)% (9.9)% (4)% $ 23.7 $ 25.2 (6)% (6.2)% 0%
Other Trade Credit   38.1   39.6 (4)% (7.1)% 3%   145.7   156.3 (7)% (5.0)% (2)%
Total Non-Americas Trade Credit Revenue 43.5 45.8 (5)% (7.5)% 2% 169.4 181.5 (7)% (5.2)% (1)%
 
Total Corporation:
DNBi $ 101.8 $ 103.8 (2)% (0.6)% (1)% $ 404.3 $ 416.7 (3)% (0.5)% (2)%
Other Trade Credit   73.2   79.0 (7)% (3.4)% (4)%   283.9   297.4 (5)% (2.7)% (2)%
Total Trade Credit Revenue $ 175.0 $ 182.8 (4)% (1.8)% (2)% $ 688.2 $ 714.1 (4)% (1.4)% (2)%
 
Total Revenue:
Americas:
Direct $ 394.4 $ 384.3 3% 0.0% 3% $ 1,285.6 $ 1,236.1 4% (0.2)% 4%
Alliances & Partners   46.8   37.7 24% 0.5% 24%   133.6   112.9 18% 0.4% 18%
Total Americas Revenue 441.2 422.0 5% 0.1% 4% 1,419.2 1,349.0 5% (0.1)% 5%
 
Non-Americas:
Direct $ 47.7 $ 57.0 (16)% (8.7)% (8)% $ 191.4 $ 214.2 (11)% (6.2)% (4)%
Alliances & Partners   28.2   25.4 11% (5.8)% 17%   96.2   93.8 2% (3.7)% 6%
Total Non-Americas Revenue 75.9 82.4 (8)% (7.8)% 0% 287.6 308.0 (7)% (5.4)% (1)%
 
Total Corporation:
Direct $ 442.1 $ 441.3 0% (1.1)% 1% $ 1,477.0 $ 1,450.3 2% (1.1)% 3%
Alliances & Partners   75.0   63.1 19% (2.1)% 21%   229.8   206.7 11% (1.5)% 13%
Total Revenue $ 517.1 $ 504.4 2% (1.3)% 4% $ 1,706.8 $ 1,657.0 3% (1.1)% 4%
 

* As Adjusted includes the effect of divesting our operations in Benelux and Latin America

 

This financial information should be read in conjunction with the consolidated financial statements and related notes of The Dun & Bradstreet Corporation contained in filings with the Securities and Exchange Commission.

 

See Schedule 6 (Notes to Schedules) for a reconciliation of each of these As Adjusted metrics to the corresponding GAAP metrics.

 
                 
The Dun & Bradstreet Corporation Schedule 5
Supplemental Financial Data (unaudited)
  Quarter Ended Full Year
December 31, AFX December 31, AFX
% Change % Change
Amounts in millions 2016 2015 Fav/(Unfav) 2016 2015 Fav/(Unfav)
 
Operating Costs (GAAP):
Operating Expenses $ 146.5 $ 144.9 (1)% $ 542.6 $ 544.7 0%
Selling and Administrative Expenses 186.9 192.4 3% 711.2 664.4 (7)%
Depreciation and Amortization 17.7 16.1 (9)% 68.6 58.7 (17)%
Restructuring Expense   3.3     17.2   81%   22.1     32.3   32%
 
Total Operating Costs (GAAP) $ 354.4   $ 370.6   4% $ 1,344.5   $ 1,300.1   (3)%
 
Capital Expenditures (GAAP) $ 2.3   $ 6.0   62% $ 14.4   $ 12.8   (12)%
 
Additions to Computer Software & Other Intangibles (GAAP) $ 10.0   $ 15.4   35% $ 45.8   $ 52.0   12%
 
Operating Costs (As Adjusted):
Operating Expenses $ 146.5 $ 142.6 (3)% $ 542.6 $ 542.4 0%
Selling and Administrative Expenses 178.2 177.4 0% 671.3 636.4 (5)%
Depreciation and Amortization 11.7 10.0 (15)% 44.4 40.9 (8)%
Restructuring Expense   -     -   N/M   -     -   N/M
 
Total Operating Costs (As Adjusted) $ 336.4   $ 330.0   (2)% $ 1,258.3   $ 1,219.7   (3)%
 
 
 
 
Quarter Ended Full Year
December 31, December 31,
 
Amounts in millions 2016 2015 2016 2015
 
Operating Expenses (GAAP): $ 146.5 $ 144.9 $ 542.6 $ 544.7
Impaired Asset - Data Management and Back Office Infrastructure - (2.2 ) - (2.2 )
Impaired Assets - Parsippany, NJ Building   -     (0.1 )   -     (0.1 )
 
Operating Expenses (As Adjusted) $ 146.5   $ 142.6   $ 542.6   $ 542.4  
 
Selling and Admin (GAAP) $ 186.9 $ 192.4 $ 711.2 $ 664.4
Legal and Other Professional Fees and Shut-Down

(Costs) Recoveries Related to Matters In China

(0.4 ) (0.4 ) (2.0 ) (1.6 )
Accrual for Legal Matters - - (26.0 ) -
Impairment for China (2.4 ) - (2.4 ) -
Acquisition/Divestiture Related Costs (5.9 ) (10.1 ) (9.5 ) (21.9 )
Impaired Asset - Data Management and Back Office Infrastructure   -     (4.5 )   -     (4.5 )
 
Selling and Admin (As Adjusted) $ 178.2   $ 177.4   $ 671.3   $ 636.4  
 
Depreciation and Amortization (GAAP) $ 17.7 $ 16.1 $ 68.6 $ 58.7
Amortization of Acquisition Related Intangibles   (6.0 )   (6.1 )   (24.2 )   (17.8 )
 
Depreciation and Amortization (As Adjusted) $ 11.7   $ 10.0   $ 44.4   $ 40.9  
 
Restructuring (GAAP) $ 3.3 $ 17.2 $ 22.1 $ 32.3
Restructuring   (3.3 )   (17.2 )   (22.1 )   (32.3 )
 
Restructuring (As Adjusted) $ -   $ -   $ -   $ -  
 
 
Quarter Ended
 
Amounts in millions Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015
 
Net Debt Position:
Cash and Cash Equivalents $ 352.6 $ 327.3 $ 379.1 $ 365.7 $ 365.7
Short-Term Debt (22.5 ) (20.0 ) (20.0) (20.0 ) (20.0 )
Long-Term Debt   (1,594.5 )   (1,586.4 )   (1,715.6)   (1,725.4 )   (1,797.0 )
 
Net Debt $ (1,264.4 ) $ (1,279.1 ) $ (1,356.5) $ (1,379.7 ) $ (1,451.3 )
 
 

Full Year

 
 

Amounts in millions

        Dec 31, 2016 Dec 31, 2015 % Change Fav/

(Unfav)

 
Free Cash Flow:
Net Cash Provided By Operating Activities - Continuing Operations (GAAP) $ 322.7 $ 336.8 (4 )%
Less:
Capital Expenditures (GAAP) 14.4 12.8 (12 )%
Additions to Computer Software & Other Intangibles (GAAP)   45.8     52.0 12 %
 
Free Cash Flow $ 262.5   $ 272.0 (4 )%
 

This financial information should be read in conjunction with the consolidated financial statements and related notes of The Dun & Bradstreet Corporation contained in filings with the Securities and Exchange Commission.

 

See Schedule 6 (Notes to Schedules) for a reconciliation of each of these As Adjusted metrics to the corresponding GAAP metrics.

 
               
The Dun & Bradstreet Corporation Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
   
(1 ) The following table reconciles Americas Total Revenue included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Americas Total Revenue (GAAP) (Schedule 1) $ 441.2 $ 416.9 $ 1,416.1 $ 1,329.1
Acquisition Related Deferred Revenue Fair Value Adjustment   -     (5.1 )   (3.1 )   (19.9 )
 
Americas Total Revenue (As Adjusted) (Schedule 2) $ 441.2   $ 422.0   $ 1,419.2   $ 1,349.0  
 
(2 ) The following table reconciles Total Revenue included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Total Revenue (GAAP) (Schedule 1) $ 517.1 $ 499.3 $ 1,703.7 $ 1,637.1
Acquisition Related Deferred Revenue Fair Value Adjustment   -     (5.1 )   (3.1 )   (19.9 )
 
Total Revenue (As Adjusted) (Schedule 2) $ 517.1   $ 504.4   $ 1,706.8   $ 1,657.0  
 
(3 ) The following table reconciles Americas Operating Income included in Schedule 1 and Schedule 2:
 
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Americas Operating Income (GAAP) (Schedule 1) $ 175.6 $ 147.8 $ 429.5 $ 369.3
 
Acquisition/Divestiture Related Costs (5.7 ) (8.8 ) (8.2 ) (10.4 )
Amortization of Acquisition Related Intangibles (6.0 ) (6.1 ) (24.2 ) (17.8 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (5.1 ) (3.1 ) (19.9 )
Impaired Asset - Data Management and Back Office Infrastructure - (6.7 ) - (6.7 )
Impaired Assets - Parsippany, NJ Building   -     (0.1 )   -     (0.1 )
 
Americas Operating Income (As Adjusted) (Schedule 2) $ 187.3   $ 174.6   $ 465.0   $ 424.2  
 
(4 ) The following table reconciles Non-Americas Operating Income included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Non-Americas Operating Income (GAAP) (Schedule 1) $ 12.2 $ 19.7 $ 59.4 $ 83.1
 
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China - 0.1 (0.1 ) 0.6
Acquisition/Divestiture Related Costs - - (0.3 ) (0.2 )
Impairment of Certain Intangible Assets in China   (2.4 )   -     (2.4 )   -  
 
Non-Americas Operating Income (As Adjusted) (Schedule 2) $ 14.6   $ 19.6   $ 62.2   $ 82.7  
 
(5 ) The following table reconciles Corporate and Other expenses included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Corporate and Other (GAAP) (Schedule 1) $ (25.1 ) $ (38.8 ) $ (129.7 ) $ (115.4 )
 
Restructuring Charges (3.3 ) (17.2 ) (22.1 ) (32.3 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China (0.4 ) (0.5 ) (1.9 ) (2.2 )
Accrual for Legal Matters - - (26.0 ) -
Acquisition/Divestiture Related Costs   (0.2 )   (1.3 )   (1.0 )   (11.3 )
 
Corporate and Other (As Adjusted) (Schedule 2) $ (21.2 ) $ (19.8 ) $ (78.7 ) $ (69.6 )
 
(6 ) The following table reconciles Total Operating Income included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Total Operating Income (GAAP) Schedule 1) $ 162.7 $ 128.7 $ 359.2 $ 337.0
 
Restructuring Charges (3.3 ) (17.2 ) (22.1 )

 

(32.3 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China (0.4 ) (0.4 ) (2.0 ) (1.6 )
Accrual for Legal Matters - - (26.0 ) -
Acquisition/Divestiture Related Costs (5.9 ) (10.1 ) (9.5 ) (21.9 )
Amortization of Acquisition Related Intangibles (6.0 ) (6.1 ) (24.2 ) (17.8 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (5.1 ) (3.1 ) (19.9 )
Impaired Asset - Data Management and Back Office Infrastructure - (6.7 ) - (6.7 )
Impaired Assets - Parsippany, NJ Building - (0.1 ) - (0.1 )
Impairment of Certain Intangible Assets in China   (2.4 )   -     (2.4 )   -  
 
Total Operating Income (As Adjusted) (Schedule 2) $ 180.7   $ 174.4   $ 448.5   $ 437.3  
 
(7 ) The following table reconciles Net Income Attributable to Dun & Bradstreet included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Net Income Attributable to Dun & Bradstreet (GAAP) (Schedule 1) $ 78.0 $ 76.7 $ 97.4 $ 168.8
 
Restructuring Charges (2.2 ) (10.8 ) (14.4 ) (20.6 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China (0.2 ) (0.3 ) (1.3 ) (0.8 )
Accrual for Legal Matters (0.6 ) - (22.6 ) -
Acquisition/Divestiture Related Costs (5.6 ) (9.1 ) (8.0 ) (18.4 )
Amortization of Acquisition Related Intangibles (3.8 ) (3.7 ) (15.1 ) (11.0 )
Acquisition Related Deferred Revenue Fair Value Adjustment 0.1 (3.2 ) (2.1 ) (13.6 )
Impaired Asset - Data Management and Back Office Infrastructure - (4.7 ) - (4.7 )
Impairment of Certain Intangible Assets in China (2.4 ) - (2.4 ) -
Effect of Legacy and Other Tax Matters - - 1.7 7.4
Gain (Loss) on Investment (6.7 ) - (6.7 ) (0.9 )
Gain (Loss) on Sale of Businesses (8.2 ) - (97.8 ) -
Tax Impact on Repatriation of Foreign Earnings   -     2.9     -     2.9  
 
After-Tax Impact (29.6 ) (28.9 ) (168.7 ) (59.7 )
 
Income (Loss) From Discontinued Operations, Net of Income Taxes   (3.2 )   0.8     (4.1 )   (35.4 )
 
Net Income Attributable to Dun & Bradstreet (As Adjusted) (Schedule 2) $ 110.8   $ 104.8   $ 270.2   $ 263.9  
 
(8 ) The following table reconciles Diluted Earnings Per Share Of Common Stock included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
2016 2015 2016 2015
 
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders (GAAP) (Schedule 1) $ 2.10 $ 2.11 $ 2.65 $ 4.64
 
Restructuring Charges

(0.06

) (0.29 ) (0.39 ) (0.57 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China (0.01 ) (0.01 ) (0.04 ) (0.02 )
Accrual for Legal Matters (0.02 ) - (0.61 ) -
Acquisition/Divestiture Related Costs (0.15 ) (0.25 ) (0.22 ) (0.51 )
Amortization of Acquisition Related Intangibles (0.10 ) (0.10 ) (0.41 ) (0.30 )
Acquisition Related Deferred Revenue Fair Value Adjustment - (0.09 ) (0.06 ) (0.38 )
Impaired Asset - Data Management and Back Office Infrastructure - (0.13 ) - (0.13 )
Impairment of Certain Intangible Assets in China (0.06 ) - (0.06 ) -
Effect of Legacy and Other Tax Matters - - 0.04 0.21
Gain (Loss) on Investment (0.18 ) - (0.18 ) (0.02 )
Gain (Loss) on Sale of Businesses (0.22 ) - (2.66 ) -
Tax Impact on Repatriation of Foreign Earnings - 0.08 - 0.08
Discontinued Operations   (0.09 )   0.03     (0.11 )   (0.97 )
 
Diluted EPS Attributable to Dun & Bradstreet Common Shareholders (As Adjusted) (Schedule 2) $ 2.99   $ 2.87   $ 7.35   $ 7.25  
 
 
(9 ) The following table reconciles Other Income (Expense)-Net included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Other Income (Expense)-Net (GAAP) (Schedule 1) $ (12.4 ) $ (0.2 ) $ (104.3 ) $ (7.6 )
Effect of Legacy and Other Tax Matters - - (1.7 ) (6.9 )
Gain (Loss) on Investment (6.7 ) - (6.7 ) (1.2 )
Gain (Loss) on Sale of Businesses (5.5 ) - (95.1 ) -
Acquisition/Divestiture Related Costs   -     -     (0.1 )   (0.3 )
 
Other Income (Expense)-Net (As Adjusted) (Schedule 2) $ (0.2 ) $ (0.2 ) $ (0.7 ) $ 0.8  
 
 
(10 ) The following table reconciles Non-Operating Income (Expense)-Net included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,

Amounts in millions

2016 2015 2016 2015
 
Non-Operating Income (Expense) - Net (GAAP) (Schedule 1) $ (25.0 ) $ (13.7 ) $ (155.6 ) $ (57.0 )
Effect of Legacy and Other Tax Matters - - (1.7 ) (6.9 )
Gain (Loss) on Investment (6.7 ) - (6.7 ) (1.2 )
Gain (Loss) on Sale of Businesses (5.5 ) - (95.1 ) -
Acquisition/Divestiture Related Costs   -     -     (0.1 )   (0.3 )
 
Non-Operating Income (Expense) - Net (As Adjusted) (Schedule 2) $ (12.8 ) $ (13.7 ) $ (52.0 ) $ (48.6 )
 
(11 ) The following table reconciles Provision for Income Taxes included in Schedule 1 and Schedule 2:
Quarter Ended Full Year
December 31, December 31,
Amounts in millions 2016 2015 2016 2015
 
Provision for Income Taxes (GAAP) (Schedule 1) $ 54.9 $ 37.7 $ 99.9 $ 74.2
 
Restructuring Charges (1.1 ) (6.4 ) (7.7 ) (11.7 )
Legal and Other Professional Fees and Shut-Down (Costs) Recoveries Related to Matters In China (0.2 ) (0.1 ) (0.7 ) (0.8 )
Accrual for Legal Matters 0.6 - (3.4 ) -
Acquisition/Divestiture Related Costs (0.3 ) (1.0 ) (1.6 ) (3.8 )
Amortization of Acquisition Related Intangibles (2.2 ) (2.4 ) (9.1 ) (6.8 )
Acquisition Related Deferred Revenue Fair Value Adjustment (0.1 ) (1.9 ) (1.0 ) (6.3 )
Impaired Asset - Data Management and Back Office Infrastructure - (2.0 ) - (2.0 )
Impaired Assets - Parsippany, NJ Building - (0.1 ) - (0.1 )
Effect of Legacy and Other Tax Matters - - (3.4 ) (14.3 )
Gain (Loss) on Investment - - - (0.3 )
Gain (Loss) on Sale of Businesses 2.7 - 2.7 -
Tax Impact on Repatriation of Foreign Earnings   -     (2.9 )   -     (2.9 )
 
Provision for Income Taxes (As Adjusted) (Schedule 2) $ 55.5   $ 54.5   $ 124.1   $ 123.2  
 
             
The Dun & Bradstreet Corporation Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
 
Quarter Ended December 31, 2016 Quarter Ended December 31, 2015
Amounts in millions  

GAAP
(Sched 3)

Acquisition
Related
Deferred
Revenue

As Adjusted*
(Sched 4)

GAAP
(Sched 3)

Acquisition
Related
Deferred
Revenue

As Adjusted*
(Sched 4)

 
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit $ 131.5 $ - $ 131.5 $ 136.5 $ 0.5 $ 137.0
Other Enterprise Risk Management   78.5   -   78.5   67.8   3.5   71.3
Total Americas Risk Management Solutions 210.0 - 210.0 204.3 4.0 208.3
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 39.8 $ - $ 39.8 $ 43.4 $ 0.9 $ 44.3
Advanced Marketing Solutions   191.4   -   191.4   169.2   0.2   169.4
Total Americas Sales and Marketing Solutions 231.2 - 231.2 212.6 1.1 213.7
           
Total Americas Revenue $ 441.2 - $ 441.2 $ 416.9 5.1 $ 422.0
 
Non-Americas:
Risk Management Solutions
Trade Credit $ 43.5 $ - $ 43.5 $ 45.8 $ - $ 45.8
Other Enterprise Risk Management   17.9   -   17.9   18.3   -   18.3
Total Non-Americas Risk Management Solutions 61.4 - 61.4 64.1 - 64.1
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 4.8 $ - $ 4.8 $ 5.4 $ - $ 5.4
Advanced Marketing Solutions   9.7   -   9.7   12.9   -   12.9
Total Non-Americas Sales and Marketing Solutions 14.5 - 14.5 18.3 - 18.3
           
Total Non-Americas Revenue $ 75.9 $ - $ 75.9 $ 82.4 $ - $ 82.4
 
Total Corporation:
Risk Management Solutions
Trade Credit $ 175.0 $ - $ 175.0 $ 182.3 $ 0.5 $ 182.8
Other Enterprise Risk Management   96.4   -   96.4   86.1   3.5   89.6
Total Risk Management Solutions 271.4 - 271.4 268.4 4.0 272.4
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 44.6 $ - $ 44.6 $ 48.8 $ 0.9 $ 49.7
Advanced Marketing Solutions   201.1   -   201.1   182.1   0.2   182.3
Total Sales and Marketing Solutions 245.7 - 245.7 230.9 1.1 232.0
           
Total Revenue $ 517.1 $ - $ 517.1 $ 499.3   5.1 $ 504.4
 
Trade Credit Revenue:
Americas:
DNBi $ 96.4 $ - $ 96.4 $ 97.5 $ 0.1 $ 97.6
Other Trade Credit   35.1   -   35.1   39.0   0.4   39.4
Total Americas Trade Credit Revenue 131.5 - 131.5 136.5 0.5 137.0
 
Non-Americas:
DNBi $ 5.4 $ - $ 5.4 $ 6.2 $ - $ 6.2
Other Trade Credit   38.1   -   38.1   39.6   -   39.6
Total Non-Americas Trade Credit Revenue 43.5 - 43.5 45.8 - 45.8
 
Total Corporation:
DNBi $ 101.8 $ - $ 101.8 $ 103.7 $ 0.1 $ 103.8
Other Trade Credit   73.2   -   73.2   78.6   0.4   79.0
Total Trade Credit Revenue $ 175.0 $ - $ 175.0 $ 182.3 $ 0.5 $ 182.8
 
Total Revenue:
Americas:
Direct $ 394.4 $ - $ 394.4 $ 379.2 $ 5.1 $ 384.3
Alliances & Partners   46.8   -   46.8   37.7   -   37.7
Total Americas Revenue 441.2 - 441.2 416.9 5.1 422.0
 
Non-Americas:
Direct $ 47.7 $ - $ 47.7 $ 57.0 $ - $ 57.0
Alliances & Partners   28.2   -   28.2   25.4   -   25.4
Total Non-Americas Revenue 75.9 - 75.9 82.4 - 82.4
 
Total Corporation:
Direct $ 442.1 $ - $ 442.1 $ 436.2 $ 5.1 $ 441.3
Alliances & Partners   75.0   -   75.0   63.1   -   63.1
Total Revenue $ 517.1 $ - $ 517.1 $ 499.3   5.1 $ 504.4
 

* As Adjusted includes the effect of divesting our operations in Benelux and Latin America

             
The Dun & Bradstreet Corporation Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
 
Full Year December 31, 2016 Full Year December 31, 2015
Amounts in millions    

GAAP
(Sched 3)

Acquisition
Related
Deferred
Revenue

As Adjusted*
(Sched 4)

GAAP
(Sched 3)

Acquisition
Related
Deferred
Revenue

As Adjusted*
(Sched 4)

 
Geographic and Customer Solution Set Revenue:
Americas:
Risk Management Solutions
Trade Credit $ 518.5 $ 0.3 $ 518.8 $ 530.7 $ 1.9 $ 532.6
Other Enterprise Risk Management   256.9   2.2   259.1   202.7   12.9   215.6
Total Americas Risk Management Solutions 775.4 2.5 777.9 733.4 14.8 748.2
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 147.3 $ 0.6 $ 147.9 $ 147.2 $ 3.4 $ 150.6
Advanced Marketing Solutions   493.4   -   493.4   448.5   1.7   450.2
Total Americas Sales and Marketing Solutions 640.7 0.6 641.3 595.7 5.1 600.8
           
Total Americas Revenue $ 1,416.1 $ 3.1 $ 1,419.2 $ 1,329.1 19.9 $ 1,349.0
 
Non-Americas:
Risk Management Solutions
Trade Credit $ 169.4 $ - $ 169.4 $ 181.5 $ - $ 181.5
Other Enterprise Risk Management   67.0   -   67.0   63.4   -   63.4
Total Non-Americas Risk Management Solutions 236.4 - 236.4 244.9 - 244.9
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 16.6 $ - $ 16.6 $ 18.4 $ - $ 18.4
Advanced Marketing Solutions   34.6   -   34.6   44.7   -   44.7
Total Non-Americas Sales and Marketing Solutions 51.2 - 51.2 63.1 - 63.1
           
Total Non-Americas Revenue $ 287.6 $ - $ 287.6 $ 308.0 $ - $ 308.0
 
Total Corporation:
Risk Management Solutions
Trade Credit $ 687.9 $ 0.3 $ 688.2 $ 712.2 $ 1.9 $ 714.1
Other Enterprise Risk Management   323.9   2.2   326.1   266.1   12.9   279.0
Total Risk Management Solutions 1,011.8 2.5 1,014.3 978.3 14.8 993.1
 
Sales and Marketing Solutions
Traditional Prospecting Solutions $ 163.9 $ 0.6 $ 164.5 $ 165.6 $ 3.4 $ 169.0
Advanced Marketing Solutions   528.0   -   528.0   493.2   1.7   494.9
Total Sales and Marketing Solutions 691.9 0.6 692.5 658.8 5.1 663.9
           
Total Revenue $ 1,703.7 $ 3.1 $ 1,706.8 $ 1,637.1   19.9 $ 1,657.0
 
Trade Credit Revenue:
Americas:
DNBi $ 380.5 $ 0.1 $ 380.6 $ 391.0 $ 0.5 $ 391.5
Other Trade Credit   138.0   0.2   138.2   139.7   1.4   141.1
Total Americas Trade Credit Revenue 518.5 0.3 518.8 530.7 1.9 532.6
 
Non-Americas:
DNBi $ 23.7 $ - $ 23.7 $ 25.2 $ - $ 25.2
Other Trade Credit   145.7   -   145.7   156.3   -   156.3
Total Non-Americas Trade Credit Revenue 169.4 - 169.4 181.5 - 181.5
 
Total Corporation:
DNBi $ 404.2 $ 0.1 $ 404.3 $ 416.2 $ 0.5 $ 416.7
Other Trade Credit   283.7   0.2   283.9   296.0   1.4   297.4
Total Trade Credit Revenue $ 687.9 $ 0.3 $ 688.2 $ 712.2 $ 1.9 $ 714.1
 
Total Revenue:
Americas:
Direct $ 1,282.5 $ 3.1 $ 1,285.6 $ 1,216.7 $ 19.4 $ 1,236.1
Alliances & Partners   133.6   -   133.6   112.4   0.5   112.9
Total Americas Revenue 1,416.1 3.1 1,419.2 1,329.1 19.9 1,349.0
 
Non-Americas:
Direct $ 191.4 $ - $ 191.4 $ 214.2 $ - $ 214.2
Alliances & Partners   96.2   -   96.2   93.8   -   93.8
Total Non-Americas Revenue 287.6 - 287.6 308.0 - 308.0
 
Total Corporation:
Direct $ 1,473.9 $ 3.1 $ 1,477.0 $ 1,430.9 $ 19.4 $ 1,450.3
Alliances & Partners   229.8   -   229.8   206.2   0.5   206.7
Total Revenue $ 1,703.7 $ 3.1 $ 1,706.8 $ 1,637.1   19.9 $ 1,657.0
 

* As Adjusted includes the effect of divesting our operations in Benelux and Latin America

 
                   
The Dun & Bradstreet Corporation Schedule 6
Notes to Schedules 1, 2, 3, and 4 (unaudited) and Definitions of Non-GAAP Measures
 
 
N/M - Not Meaningful
 
The following defines the non-GAAP measures used to evaluate performance:
 

In addition to reporting generally accepted accounting principles in the United States of America (“GAAP”) results, the Company evaluates performance and reports on a total company basis and on a business segment level basis its results (such as revenue, operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) on an “As Adjusted” basis. The term “As Adjusted” refers to the following: the elimination of the effect on revenue due to purchase accounting fair value adjustments to deferred revenue; restructuring charges; other non-core gains and charges that are not in the normal course of our business (such as gains and losses on sales of businesses, impairment charges and material tax and legal settlements); acquisition and divestiture-related fees (such as costs for bankers, legal fees, diligence costs, retention payments, and contingent consideration adjustments); and acquisition-related intangible amortization expense. A recurring component of our “As Adjusted” basis is our restructuring charges, which we believe do not reflect our underlying business performance. Such charges are variable from period to period based upon actions identified and taken during each period. Additionally, our “As Adjusted” results exclude the results of Discontinued Operations. Management reviews operating results on an “As Adjusted” basis on a monthly basis and establishes internal budgets and forecasts based upon such measures. Management further establishes annual and long-term compensation such as salaries, target cash bonuses and target equity compensation amounts based on performance on an “As Adjusted” basis and a significant percentage weight is placed upon performance on an “As Adjusted” basis in determining whether performance objectives have been achieved. Management believes that by reflecting these adjustments to our GAAP financial measures, business leaders are provided incentives to recommend and execute actions that support our long-term growth strategy rather than being influenced by the potential impact one of these items can have in a particular period on their compensation. The Company adjusts for these items because they do not reflect the Company’s underlying business performance and they may have a disproportionate positive or negative impact on the results of its ongoing business operations. We believe that the use of our non-GAAP financial measures provides useful supplemental information to our investors.

 

We also isolate the effects of changes in foreign exchange rates on our revenue growth because we believe it is useful for investors to be able to compare revenue from one period to another, both after and before the effects of foreign exchange. The change in our operating performance attributable to foreign currency rates is determined by converting both our prior and current periods by a constant rate. As a result, we monitor our “As Adjusted” revenue growth both after and before the effects of foreign exchange.

 

We also analyze “As Adjusted” revenue growth on an organic basis because management believes this information provides important insight into the underlying/ongoing performance of the business. Organic revenue excludes revenue from acquired businesses for one year from the date of the acquisition and net divested revenue which we define as the historical revenues from the divested businesses net of the annual ongoing future revenue streams resulting from the commercial arrangements entered into in connection with such divestitures.

 

We may from time to time use the term “sales”, which we define as the annual value of committed customer contracts. This term is often referred to as “bookings” or “commitments” by other companies.

 

We monitor free cash flow as a measure of our business. We define free cash flow as net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles. Free cash flow measures our available cash flow for potential debt repayment, acquisitions, stock repurchases, dividend payments and additions to cash, cash equivalents and short-term investments. We believe free cash flow to be relevant and useful to our investors as this measure is used by our management in evaluating the funding available after supporting our ongoing business operations and our portfolio of investments.

 

Free cash flow should not be considered as a substitute measure for, or superior to, net cash flows provided by operating activities, investing activities or financing activities. Therefore, we believe it is important to view free cash flow as a complement to the consolidated statements of cash flows.

 

We also monitor deferred revenue after adjusting for the effect of foreign exchange, dispositions, acquisitions and the impacts of the write-down of deferred revenue due to purchase accounting.

 
 

This financial information should be read in conjunction with the consolidated financial statements and related notes of The Dun & Bradstreet Corporation contained in filings with the Securities and Exchange Commission.

Contacts

Dun & Bradstreet
Media:
Deborah McBride, 973-921-5714
mcbrided@dnb.com
or
Investors/Analysts:
Kathy Guinnessey, 973-921-5892
Kathy.Guinnessey@dnb.com

Contacts

Dun & Bradstreet
Media:
Deborah McBride, 973-921-5714
mcbrided@dnb.com
or
Investors/Analysts:
Kathy Guinnessey, 973-921-5892
Kathy.Guinnessey@dnb.com