D&B Announces Third Quarter 2012 Results and Reaffirms Full Year 2012 Guidance
- Diluted EPS Before Non-Core Gains and Charges Up 24% From the Prior Year Similar Period; GAAP Diluted EPS Up 48%;
- Core Revenue Up 2% Before the Effect of Foreign Exchange (Up 1% After the Effect of Foreign Exchange);
- Total Revenue on a GAAP Basis Down 5% Before the Effect of Foreign Exchange (Down 6% After the Effect of Foreign Exchange);
-
Announces
Manny Conti has been named President,North America ; -
Announces
Byron Vielehr has been named President, International and Global Operations.
"D&B had a solid third quarter despite a difficult environment, and we
remain on track to meet our full year guidance," stated
Third Quarter 2012 Results
Diluted earnings per share before non-core gains and charges for
the quarter ended
On a GAAP basis, diluted earnings per share for the quarter ended
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 third quarter of 2012 was
Core revenue results for the third quarter of 2012 reflect the following by solution set:
-
Risk Management Solutions revenue of
$265.8 million , down 1% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period; -
Sales & Marketing Solutions revenue of
$117.5 million , up 11% before the effect of foreign exchange (up 10% after the effect of foreign exchange), as compared to the prior year similar period; and -
Internet Solutions revenue of
$29.9 million , down 2% before the effect of foreign exchange (down 3% 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 third quarter of 2012 was
See attached Schedule 3 for additional detail.
Operating income before non-core gains and charges for the third
quarter of 2012 was
See attached Schedule 3 for additional detail.
Net income attributable to D&B before non-core gains and
charges for the third quarter of 2012 was
See attached Schedule 3 for additional detail.
Free cash flow for the first nine months of 2012, excluding the
impact of legacy tax matters, was
See attached Schedule 4 for additional detail.
Share repurchases during the third quarter of 2012 under the
Company's discretionary repurchase program totaled
The Company ended the third quarter of 2012 with
Third Quarter 2012 Segment Results
Core revenue for the third quarter of 2012 was
-
Risk Management Solutions revenue of
$178.8 million , down 2% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period; -
Sales & Marketing Solutions revenue of
$100.5 million , up 10% both before and after the effect of foreign exchange, as compared to the prior year similar period; and -
Internet Solutions revenue of
$29.0 million , down 3% 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 third quarter of 2012 was
Operating income for the third quarter of 2012 was
Core revenue for the third quarter of 2012 was
-
Risk Management Solutions revenue of
$38.1 million , up 3% before the effect of foreign exchange (down 2% after the effect of foreign exchange), as compared to the prior year similar period; -
Sales & Marketing Solutions revenue of
$6.5 million , up 73% before the effect of foreign exchange (up 58% after the effect of foreign exchange), as compared to the prior year similar period; and -
Internet Solutions revenue of
$0.2 million , down 3% before the effect of foreign exchange (down 18% after the effect of foreign exchange), as compared to the prior year similar period.
Total revenue for the third quarter of 2012 was
See attached Schedules 4, 5 and 6 for additional detail.
Operating income before non-core gains and charges for the third
quarter of 2012 was
On a GAAP basis, operating income for the third quarter of 2012 was
See attached Schedule 3 for additional detail.
Core and total revenue for the third quarter of 2012 was
-
Risk Management Solutions revenue of
$48.9 million , up 4% before the effect of foreign exchange (down 3% after the effect of foreign exchange), as compared to the prior year similar period; -
Sales & Marketing Solutions revenue of
$10.5 million , down 5% before the effect of foreign exchange (down 10% after the effect of foreign exchange), as compared to prior year similar period; and -
Internet Solutions revenue of
$0.7 million , up 5% before the effect of foreign exchange (up 1% 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 third quarter of 2012 was
MaxCV
In
In the third quarter of 2012, the Company incurred
For the full year 2012, the Company anticipates spending approximately
See attached Schedule 3 for additional detail.
Non-Core Gains and Charges
During the third quarters of 2012 and 2011, the Company recorded:
-
A net pre-tax, non-core charge of
$33.6 million in the third quarter of 2012, and a net pre-tax, non-core charge of$25.8 million in the third quarter of 2011; and -
A net after-tax, non-core gain of
$0.2 million in the third quarter of 2012, and a net after-tax, non-core charge of$11.6 million in the third 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.
D&B Announces Changes to Global Leadership Team, Effective
Full Year 2012 Guidance
D&B today reaffirmed its financial guidance for the full year 2012:
- Core revenue growth of 0% to 3%, before the effect of foreign exchange;
- Operating income growth of 4% to 7%, before non-core gains and charges;
- Diluted EPS growth at the high-end of our range 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 ourChina operations, and including expenses related to 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
Third Quarter 2012 Teleconference
As previously announced, D&B will review its third quarter financial
results in a conference call with the investment community on
**************
About
D&B provides solution sets that meet a diverse set of customer needs globally. Customers use D&B Risk Management SolutionsTM to mitigate credit and supplier risk, increase cash flow and drive increased profitability; D&B Sales & Marketing SolutionsTM to increase revenue from new and existing customers; and D&B Internet SolutionsTM 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 inFebruary 2010 and to maintain sufficient investment in our technology infrastructure thereafter. -
Any consequences of the investigations 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 secure its information technology infrastructure from cyber attack and unauthorized access.
- 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 problems
with their earnings, cash flow, or both. 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 materially, 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 a material adverse effect on D&B's business and financial results. - 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.
- The profitability of D&B's international businesses depends on its ability to identify and execute on various initiatives, such as successfully managing its D&B Worldwide Network, complying with the Foreign Corrupt Practices Act and other anti-bribery and anti-corruption laws in all jurisdictions, and its 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 future success requires that it attract and retain qualified personnel, including members of its sales force and technology teams, in regions throughout the world.
- 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
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Schedule 1 | |||||||||||||||||||||||||||||||||
Consolidated Statement of Operations (unaudited) - GAAP Results |
||||||||||||||||||||||||||||||||||
Effects of | Effects of | |||||||||||||||||||||||||||||||||
Quarter Ended | AFX | Foreign | BFX | Year-To-Date | AFX | Foreign | BFX | |||||||||||||||||||||||||||
|
% Change | Exchange | % Change |
|
% Change | Exchange | % Change | |||||||||||||||||||||||||||
Dollar amounts in millions, except per share data | 2012 | 2011 | Fav (Unfav) | Fav (Unfav) | Fav (Unfav) | 2012 | 2011 | Fav (Unfav) | Fav (Unfav) | Fav (Unfav) | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||
|
$ | 308.3 | $ | 304.7 | 1 | % | 0 | % | 1 | % | $ | 872.8 | $ | 879.2 | (1 | %) | 0 | % | (1 | %) | ||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
44.8 | 43.2 | 4 | % | (5 | %) | 9 | % | 133.2 | 122.1 | 9 | % | (3 | %) | 12 | % | ||||||||||||||||||
|
60.1 | 62.9 | (4 | %) | (7 | %) | 3 | % | 175.8 | 179.0 | (2 | %) | (5 | %) | 3 | % | ||||||||||||||||||
International | 104.9 | 106.1 | (1 | %) | (6 | %) | 5 | % | 309.0 | 301.1 | 3 | % | (3 | %) | 6 | % | ||||||||||||||||||
Core Revenue | $ | 413.2 | $ | 410.8 | 1 | % | (1 | %) | 2 | % | $ | 1,181.8 | $ | 1,180.3 | 0 | % | (1 | %) | 1 | % | ||||||||||||||
Divested and Other Business (1) | - | 28.6 | N/M | N/M | N/M | 18.1 | 79.5 | (77 | %) | 1 | % | (78 | %) | |||||||||||||||||||||
Total Revenue | $ | 413.2 | $ | 439.4 | (6 | %) | (1 | %) | (5 | %) | $ | 1,199.9 | $ | 1,259.8 | (5 | %) | (1 | %) | (4 | %) | ||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||||||||||||
|
$ | 117.3 | $ | 112.1 | 5 | % | $ | 323.0 | $ | 324.0 | 0 | % | ||||||||||||||||||||||
|
5.1 | 5.0 | 1 | % | (0.4 | ) | 10.7 | N/M | ||||||||||||||||||||||||||
|
17.3 | 15.4 | 12 | % | 46.1 | 36.2 | 27 | % | ||||||||||||||||||||||||||
International | 22.4 | 20.4 | 10 | % | 45.7 | 46.9 | (3 | %) | ||||||||||||||||||||||||||
Corporate and Other (3) | (30.0 | ) | (31.8 | ) | 6 | % | (95.3 | ) | (91.2 | ) | (5 | %) | ||||||||||||||||||||||
Total Operating Income | 109.7 | 100.7 | 9 | % | 273.4 | 279.7 | (2 | %) | ||||||||||||||||||||||||||
Interest Income | 0.2 | 0.4 | (52 | %) | 0.5 | 1.3 | (60 | %) | ||||||||||||||||||||||||||
Interest Expense | (9.5 | ) | (9.1 | ) | (4 | %) | (27.8 | ) | (27.4 | ) | (1 | %) | ||||||||||||||||||||||
Other Income (Expense) - Net (4) | (15.4 | ) | (8.9 | ) | (73 | %) | (8.8 | ) | (20.5 | ) | 57 | % | ||||||||||||||||||||||
Non-Operating Income (Expense) - Net | (24.7 | ) | (17.6 | ) | (40 | %) | (36.1 | ) | (46.6 | ) | 23 | % | ||||||||||||||||||||||
Income Before Provision for Income Taxes | 85.0 | 83.1 | 2 | % | 237.3 | 233.1 | 2 | % | ||||||||||||||||||||||||||
Less: Provision for Income Taxes | 4.8 | 24.7 | 81 | % | 37.3 | 68.4 | 46 | % | ||||||||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | 0.5 | 0.4 | (7 | %) | 1.3 | 1.1 | 8 | % | ||||||||||||||||||||||||||
Net Income | 80.7 | 58.8 | 37 | % | 201.3 | 165.8 | 21 | % | ||||||||||||||||||||||||||
Less: Net (Income) Loss Attributable to the Noncontrolling Interest (5) | (1.1 | ) | (0.4 | ) | N/M | (1.8 | ) | 1.0 | N/M | |||||||||||||||||||||||||
Net Income Attributable to D&B (6) | 79.6 | 58.4 | 36 | % | 199.5 | 166.8 | 20 | % | ||||||||||||||||||||||||||
Less: Allocation to |
0.0 | (0.1 | ) | 79 | % | (0.1 | ) | (0.2 | ) | 72 | % | |||||||||||||||||||||||
Net Income Attributable to D&B Common Shareholders | 79.6 | 58.3 | 36 | % | 199.4 | 166.6 | 20 | % | ||||||||||||||||||||||||||
Basic Earnings Per Share of Common Stock
Attributable to D&B Common Shareholders |
$ | 1.77 | $ | 1.19 | 49 | % | $ | 4.29 | $ | 3.38 | 27 | % | ||||||||||||||||||||||
Diluted Earnings Per Share of Common Stock
Attributable to D&B Common Shareholders (7) |
$ | 1.76 | $ | 1.19 | 48 | % | $ | 4.26 | $ | 3.36 | 27 | % | ||||||||||||||||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 44.8 | 48.9 | 8 | % | 46.4 | 49.2 | 6 | % | ||||||||||||||||||||||||||
Diluted | 45.2 | 49.1 | 8 | % | 46.8 | 49.6 | 6 | % | ||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||||
|
Schedule 2 | |||||||||||||||||||||||||||||||||
Consolidated Statement of Operations (unaudited) - Before Non-Core Gains and Charges |
||||||||||||||||||||||||||||||||||
Effects of | Effects of | |||||||||||||||||||||||||||||||||
Quarter Ended | AFX | Foreign | BFX | Year-To-Date | AFX | Foreign | BFX | |||||||||||||||||||||||||||
|
% Change | Exchange | % Change |
|
% Change | Exchange | % Change | |||||||||||||||||||||||||||
Dollar amounts in millions, except per share data | 2012 | 2011 | Fav (Unfav) | Fav (Unfav) | Fav (Unfav) | 2012 | 2011 | Fav (Unfav) | Fav (Unfav) | Fav (Unfav) | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||
|
$ | 308.3 | $ | 304.7 | 1 | % | 0 | % | 1 | % | $ | 872.8 | $ | 879.2 | (1 | %) | 0 | % | (1 | %) | ||||||||||||||
|
44.8 | 43.2 | 4 | % | (5 | %) | 9 | % | 133.2 | 122.1 | 9 | % | (3 | %) | 12 | % | ||||||||||||||||||
|
60.1 | 62.9 | (4 | %) | (7 | %) | 3 | % | 175.8 | 179.0 | (2 | %) | (5 | %) | 3 | % | ||||||||||||||||||
International | 104.9 | 106.1 | (1 | %) | (6 | %) | 5 | % | 309.0 | 301.1 | 3 | % | (3 | %) | 6 | % | ||||||||||||||||||
Core Revenue | $ | 413.2 | $ | 410.8 | 1 | % | (1 | %) | 2 | % | $ | 1,181.8 | $ | 1,180.3 | 0 | % | (1 | %) | 1 | % | ||||||||||||||
Divested and Other Business (1) | - | 28.6 | N/M | N/M | N/M | 18.1 | 79.5 | (77 | %) | 1 | % | (78 | %) | |||||||||||||||||||||
Total Revenue | $ | 413.2 | $ | 439.4 | (6 | %) | (1 | %) | (5 | %) | $ | 1,199.9 | $ | 1,259.8 | (5 | %) | (1 | %) | (4 | %) | ||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||||||||||||
|
$ | 117.3 | $ | 112.1 | 5 | % | $ | 323.0 | $ | 324.0 | 0 | % | ||||||||||||||||||||||
|
6.4 | 5.0 | 29 | % | 14.3 | 10.7 | 34 | % | ||||||||||||||||||||||||||
|
17.3 | 15.4 | 12 | % | 46.1 | 36.2 | 27 | % | ||||||||||||||||||||||||||
International | 23.7 | 20.4 | 16 | % | 60.4 | 46.9 | 29 | % | ||||||||||||||||||||||||||
Corporate and Other (3) | (13.1 | ) | (14.0 | ) | 7 | % | (35.5 | ) | (40.6 | ) | 13 | % | ||||||||||||||||||||||
Total Operating Income | 127.9 | 118.5 | 8 | % | 347.9 | 330.3 | 5 | % | ||||||||||||||||||||||||||
Interest Income | 0.2 | 0.4 | (52 | %) | 0.5 | 1.3 | (60 | %) | ||||||||||||||||||||||||||
Interest Expense | (9.5 | ) | (9.1 | ) | (4 | %) | (27.8 | ) | (27.4 | ) | (1 | %) | ||||||||||||||||||||||
Other Income (Expense) - Net (4) | 0.0 | (0.9 | ) | 99 | % | 0.2 | (1.7 | ) | N/M | |||||||||||||||||||||||||
Non-Operating Income (Expense) - Net | (9.3 | ) | (9.6 | ) | 3 | % | (27.1 | ) | (27.8 | ) | 3 | % | ||||||||||||||||||||||
Income Before Provision for Income Taxes | 118.6 | 108.9 | 9 | % | 320.8 | 302.5 | 6 | % | ||||||||||||||||||||||||||
Less: Provision for Income Taxes | 38.6 | 38.9 | 1 | % | 105.3 | 103.0 | (2 | %) | ||||||||||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | 0.5 | 0.4 | (7 | %) | 1.3 | 1.1 | 8 | % | ||||||||||||||||||||||||||
Net Income | 80.5 | 70.4 | 14 | % | 216.8 | 200.6 | 8 | % | ||||||||||||||||||||||||||
Less: Net (Income) Loss Attributable to the Noncontrolling Interest (5) | (1.1 | ) | (0.4 | ) | N/M | (1.7 | ) | 1.0 | N/M | |||||||||||||||||||||||||
Net Income Attributable to D&B (5) | 79.4 | 70.0 | 14 | % | 215.1 | 201.6 | 7 | % | ||||||||||||||||||||||||||
Less: Allocation to |
0.0 | (0.1 | ) | 82 | % | 0.0 | (0.3 | ) | 75 | % | ||||||||||||||||||||||||
Net Income Attributable to D&B Common Shareholders (6) | 79.4 | 69.9 | 14 | % | 215.1 | 201.3 | 7 | % | ||||||||||||||||||||||||||
Basic Earnings Per Share of Common Stock
Attributable to D&B Common Shareholders |
$ | 1.77 | $ | 1.43 | 24 | % | $ | 4.63 | $ | 4.09 | 13 | % | ||||||||||||||||||||||
Diluted Earnings Per Share of Common Stock
Attributable to D&B Common Shareholders (7) |
$ | 1.76 | $ | 1.42 | 24 | % | $ | 4.60 | $ | 4.06 | 13 | % | ||||||||||||||||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 44.8 | 48.9 | 8 | % | 46.4 | 49.2 | 6 | % | ||||||||||||||||||||||||||
Diluted | 45.2 | 49.1 | 8 | % | 46.8 | 49.6 | 6 | % | ||||||||||||||||||||||||||
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 |
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|
Schedule 3 |
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Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP Measures | |||||||||||||||||||||
(1 | ) | The following table reconciles Divested and Other Business included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
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Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Divested and Other Business: | |||||||||||||||||||||
Purisma | $ | - | $ | 1.4 | $ | - | $ | 3.1 | |||||||||||||
AllBusiness | - | 0.9 | - | 3.1 | |||||||||||||||||
|
- | - | - | 1.1 | |||||||||||||||||
Domestic Portion of Japan Operations | - | 15.9 | 12.7 | 45.4 | |||||||||||||||||
Market Research Business in |
- | 4.7 | - | 11.3 | |||||||||||||||||
Roadway |
- | 5.7 | 5.4 | 15.5 | |||||||||||||||||
Total Divested and Other Business | $ | - | $ | 28.6 | $ | 18.1 | $ | 79.5 | |||||||||||||
(2 | ) | The following table reconciles Asia Pacific Operating Income included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Asia Pacific Operating Income - GAAP Results (Schedule 1) | $ | 5.1 | $ | 5.0 | $ | (0.4 | ) | $ | 10.7 | ||||||||||||
Legal Fees and Other Shut-Down Costs Associated with Matters in |
(1.3 | ) | - | (1.8 | ) | - | |||||||||||||||
Impairments Related to Matters in |
- | - | (12.9 | ) | - | ||||||||||||||||
Asia Pacific Operating Income - Before Non-Core Gains and Charges (Schedule 2) | $ | 6.4 | $ | 5.0 | $ | 14.3 | $ | 10.7 | |||||||||||||
(3 | ) | The following table reconciles Corporate and Other expenses included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Corporate and Other - GAAP Results (Schedule 1) | $ | (30.0 | ) | $ | (31.8 | ) | $ | (95.3 | ) | $ | (91.2 | ) | |||||||||
Restructuring Charges | (4.8 | ) | (5.3 | ) | (23.2 | ) | (18.0 | ) | |||||||||||||
MaxCV | (6.7 | ) | (12.5 | ) | (25.6 | ) | (32.6 | ) | |||||||||||||
Legal Fees and Other Shut-Down Costs Associated with Matters in |
(5.4 | ) | - | (11.0 | ) | - | |||||||||||||||
Corporate and Other - Before Non-Core Gains and Charges (Schedule 2) | $ | (13.1 | ) | $ | (14.0 | ) | $ | (35.5 | ) | $ | (40.6 | ) | |||||||||
(4 | ) | The following table reconciles Other Income (Expense)-Net included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Other Income (Expense)-Net - GAAP Results (Schedule 1) | $ | (15.4 | ) | $ | (8.9 | ) | $ | (8.8 | ) | $ | (20.5 | ) | |||||||||
Effect of Legacy Tax Matters | (15.4 | ) | 0.3 | (15.0 | ) | (7.4 | ) | ||||||||||||||
Gain (Loss) on Sale of Businesses | - | - | 6.0 | - | |||||||||||||||||
Gain (Loss) on Investment | - | (8.3 | ) | - | (11.4 | ) | |||||||||||||||
Other Income (Expense)-Net - Before Non-Core Gains and Charges (Schedule 2) | $ | - | $ | (0.9 | ) | $ | 0.2 | $ | (1.7 | ) | |||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Total Pre-Tax Impacts: | |||||||||||||||||||||
Restructuring Charges | $ | (4.8 | ) | $ | (5.3 | ) | $ | (23.2 | ) | $ | (18.0 | ) | |||||||||
MaxCV | (6.7 | ) | (12.5 | ) | (25.6 | ) | (32.6 | ) | |||||||||||||
Legal Fees and Other Shut-Down Costs Associated with Matters in |
(6.7 | ) | - | (12.8 | ) | - | |||||||||||||||
Impairments Related to Matters in |
- | - | (12.9 | ) | - | ||||||||||||||||
Effect of Legacy Tax Matters | (15.4 | ) | 0.3 | (15.0 | ) | (7.4 | ) | ||||||||||||||
Gain (Loss) on Sale of Businesses | - | - | 6.0 | - | |||||||||||||||||
Gain (Loss) on Investment | - | (8.3 | ) | - | (11.4 | ) | |||||||||||||||
Total Pre-Tax Impacts | $ | (33.6 | ) | $ | (25.8 | ) | $ | (83.5 | ) | $ | (69.4 | ) | |||||||||
(5 | ) | The following table reconciles Net Income (Loss) Attributable to the Noncontrolling Interest Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Net Income (Loss) Attributable to the Noncontrolling Interest - GAAP Results (Schedule 1) | $ | (1.1 | ) | $ | (0.4 | ) | $ | (1.8 | ) | $ | 1.0 | ||||||||||
Minority Share of Gain on Sale of Business | - | - | (0.9 | ) | - | ||||||||||||||||
Impairments Related to Matters in |
- | - | 0.8 | - | |||||||||||||||||
Net Income (Loss) Attributable to the Noncontrolling Interest - Before Non-Core Gains and Charges (Schedule 2) | $ | (1.1 | ) | $ | (0.4 | ) | $ | (1.7 | ) | $ | 1.0 | ||||||||||
(6 | ) | The following table reconciles Net Income Attributable to D&B included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
Amounts in millions | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Net Income Attributable to D&B - GAAP Results (Schedule 1) | $ | 79.6 | $ | 58.4 | $ | 199.5 | $ | 166.8 | |||||||||||||
Restructuring Charges | (3.0 | ) | (3.6 | ) | (14.7 | ) | (11.8 | ) | |||||||||||||
MaxCV | (5.1 | ) | (9.2 | ) | (18.3 | ) | (25.2 | ) | |||||||||||||
Legal Fees and Other Shut-Down Costs Associated with Matters in |
(4.7 | ) | - | (8.6 | ) | - | |||||||||||||||
Impairments Related to Matters in |
- | - | (12.1 | ) | - | ||||||||||||||||
Gain (Loss) on Investment | - | (7.3 | ) | - | (11.1 | ) | |||||||||||||||
Effect of Legacy Tax Matters | 13.0 | - | 13.0 | 4.8 | |||||||||||||||||
Gain (Loss) on Sale of Businesses | - | - | 11.1 | - | |||||||||||||||||
Minority Share of Gain on Sale of Business | - | - | (0.9 | ) | - | ||||||||||||||||
Tax Benefit on a Loss on the Tax Basis of a Legal Entity | - | 8.5 | 14.9 | 8.5 | |||||||||||||||||
After-Tax Impact | 0.2 | (11.6 | ) | (15.6 | ) | (34.8 | ) | ||||||||||||||
Net Income Attributable to D&B - Before Non-Core Gains and Charges (Schedule 2) | $ | 79.4 | $ | 70.0 | $ | 215.1 | $ | 201.6 | |||||||||||||
(7 | ) | The following table reconciles Diluted Earnings Per Share Attributable to D&B included in Schedule 1 and Schedule 2: | |||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||
|
|
||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Diluted EPS Attributable to D&B - GAAP Results (Schedule 1) | $ | 1.76 | $ | 1.19 | $ | 4.26 | $ | 3.36 | |||||||||||||
Restructuring Charges | (0.07 | ) | (0.07 | ) | (0.32 | ) |
(0.24 |
) | |||||||||||||
MaxCV | (0.11 | ) | (0.19 | ) | (0.39 | ) | (0.51 | ) | |||||||||||||
Legal Fees and Other Shut-Down Costs Associated with Matters in |
(0.11 | ) | - | (0.19 | ) | - | |||||||||||||||
Impairments Related to Matters in |
- | - | (0.26 | ) | - | ||||||||||||||||
Gain (Loss) on Investment | - | (0.14 | ) | - | (0.22 | ) | |||||||||||||||
Minority Share of Gain on Sale of Business | - | - | (0.02 | ) | - | ||||||||||||||||
Effect of Legacy Tax Matters | 0.29 | - | 0.28 | 0.10 | |||||||||||||||||
Gain (Loss) on Sale of Businesses | - | - | 0.24 | - | |||||||||||||||||
Tax Benefit on a Loss on the Tax Basis of a Legal Entity | - | 0.17 | 0.32 | 0.17 | |||||||||||||||||
Diluted EPS Attributable to D&B - Before Non-Core Gains and Charges (Schedule 2) | $ | 1.76 | $ | 1.42 | $ | 4.60 | $ | 4.06 | |||||||||||||
|
|||||||||||||||||||||
N/M - Not Meaningful |
|||||||||||||||||||||
The following defines the non-GAAP measures used to evaluate performance: |
|||||||||||||||||||||
*Total revenue excluding the revenue of divested and shut-down 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
|
|||||||||||||||||||||
|
Schedule 4 | ||||||||||||||||||||||||||||||||||||||||
Supplemental GAAP Financial Data (unaudited) | |||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Effects of | Year-To-Date | Effects of | ||||||||||||||||||||||||||||||||||||||
|
AFX | Foreign | BFX |
|
AFX | Foreign | BFX | ||||||||||||||||||||||||||||||||||
% Change | Exchange | % Change | % Change | Exchange | % Change | ||||||||||||||||||||||||||||||||||||
Amounts in millions | 2012 | 2011 | Fav/(Unfav) | Fav/(Unfav) | Fav/(Unfav) | 2012 | 2011 | Fav/(Unfav) | Fav/(Unfav) | Fav/(Unfav) | |||||||||||||||||||||||||||||||
Geographic and Customer Solution Set Revenue: | |||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 178.8 | $ | 183.5 | (3 | )% | (1 | )% | (2 | )% | $ | 518.5 | $ | 539.8 | (4 | )% | 0 | % | (4 | )% | |||||||||||||||||||||
Sales & Marketing Solutions | 100.5 | 91.6 | 10 | % | 0 | % | 10 | % | 267.3 | 253.1 | 6 | % | 0 | % | 6 | % | |||||||||||||||||||||||||
Internet Solutions | 29.0 | 29.6 | (3 | )% | 0 | % | (3 | )% | 87.0 | 86.3 | 1 | % | 0 | % | 1 | % | |||||||||||||||||||||||||
Subtotal Core Revenue | 308.3 | 304.7 | 1 | % | 0 | % | 1 | % | 872.8 | 879.2 | (1 | )% | 0 | % | (1 | )% | |||||||||||||||||||||||||
Divested and Other Business 1 | - | 2.3 | N/M | N/M | N/M | - | 7.3 | N/M | N/M | N/M | |||||||||||||||||||||||||||||||
Total North America Revenue | 308.3 | 307.0 | 0 | % | (1 | )% | 1 | % | 872.8 | 886.5 | (2 | )% | 0 | % | (2 | )% | |||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 38.1 | $ | 38.9 | (2 | )% | (5 | )% | 3 | % | $ | 112.2 | $ | 108.0 | 4 | % | (2 | )% | 6 | % | |||||||||||||||||||||
Sales & Marketing Solutions | 6.5 | 4.1 | 58 | % | (15 | )% | 73 | % | 20.5 | 13.4 | 53 | % | (10 | )% | 63 | % | |||||||||||||||||||||||||
Internet Solutions | 0.2 | 0.2 | (18 | )% | (15 | )% | (3 | )% | 0.5 | 0.7 | (12 | )% | (11 | )% | (1 | )% | |||||||||||||||||||||||||
Subtotal Core Revenue | 44.8 | 43.2 | 4 | % | (5 | )% | 9 | % | 133.2 | 122.1 | 9 | % | (3 | )% | 12 | % | |||||||||||||||||||||||||
Divested and Other Business 1 | - | 26.3 | N/M | N/M | N/M | 18.1 | 72.2 | (75 | )% | 1 | % | (76 | )% | ||||||||||||||||||||||||||||
Total Asia Pacific Revenue | 44.8 | 69.5 | (36 | )% | (2 | )% | (34 | )% | 151.3 | 194.3 | (22 | )% | 0 | % | (22 | )% | |||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 48.9 | $ | 50.6 | (3 | )% | (7 | )% | 4 | % | $ | 145.1 | $ | 147.8 | (2 | )% | (5 | )% | 3 | % | |||||||||||||||||||||
Sales & Marketing Solutions | 10.5 | 11.6 | (10 | )% | (5 | )% | (5 | )% | 28.7 | 29.4 | (2 | )% | (3 | )% | 1 | % | |||||||||||||||||||||||||
Internet Solutions | 0.7 | 0.7 | 1 | % | (4 | )% | 5 | % | 2.0 | 1.8 | 9 | % | (3 | )% | 12 | % | |||||||||||||||||||||||||
Subtotal Core Revenue | 60.1 | 62.9 | (4 | )% | (7 | )% | 3 | % | 175.8 | 179.0 | (2 | )% | (5 | )% | 3 | % | |||||||||||||||||||||||||
Divested and Other Business 1 | - | - | 0 | % | 0 | % | 0 | % | - | - | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||
Total |
60.1 | 62.9 | (4 | )% | (7 | )% | 3 | % | 175.8 | 179.0 | (2 | )% | (5 | )% | 3 | % | |||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 87.0 | $ | 89.5 | (3 | )% | (7 | )% | 4 | % | $ | 257.3 | $ | 255.8 | 1 | % | (3 | )% | 4 | % | |||||||||||||||||||||
Sales & Marketing Solutions | 17.0 | 15.7 | 8 | % | (7 | )% | 15 | % | 49.2 | 42.8 | 15 | % | (5 | )% | 20 | % | |||||||||||||||||||||||||
Internet Solutions | 0.9 | 0.9 | (4 | )% | (7 | )% | 3 | % | 2.5 | 2.5 | 3 | % | (5 | )% | 8 | % | |||||||||||||||||||||||||
Subtotal Core Revenue | 104.9 | 106.1 | (1 | )% | (6 | )% | 5 | % | 309.0 | 301.1 | 3 | % | (3 | )% | 6 | % | |||||||||||||||||||||||||
Divested and Other Business 1 | - | 26.3 | N/M | N/M | N/M | 18.1 | 72.2 | (75 | )% | 1 | % | (76 | )% | ||||||||||||||||||||||||||||
Total International Revenue | 104.9 | 132.4 | (21 | )% | (4 | )% | (17 | )% | 327.1 | 373.3 | (12 | )% | (1 | )% | (11 | )% | |||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 265.8 | $ | 273.0 | (3 | )% | (2 | )% | (1 | )% | $ | 775.8 | $ | 795.6 | (3 | )% | (2 | )% | (1 | )% | |||||||||||||||||||||
Sales & Marketing Solutions | 117.5 | 107.3 | 10 | % | (1 | )% | 11 | % | 316.5 | 295.9 | 7 | % | (1 | )% | 8 | % | |||||||||||||||||||||||||
Internet Solutions | 29.9 | 30.5 | (3 | )% | (1 | )% | (2 | )% | 89.5 | 88.8 | 1 | % | 0 | % | 1 | % | |||||||||||||||||||||||||
Subtotal Core Revenue | 413.2 | 410.8 | 1 | % | (1 | )% | 2 | % | 1,181.8 | 1,180.3 | 0 | % | (1 | )% | 1 | % | |||||||||||||||||||||||||
Divested and Other Business 1 | - | 28.6 | N/M | N/M | N/M | 18.1 | 79.5 | (77 | )% | 1 | % | (78 | )% | ||||||||||||||||||||||||||||
Total Corporation Revenue | 413.2 | 439.4 | (6 | )% | (1 | )% | (5 | )% | 1,199.9 | 1,259.8 | (5 | )% | (1 | )% | (4 | )% | |||||||||||||||||||||||||
Operating Costs: | |||||||||||||||||||||||||||||||||||||||||
Operating Expenses | $ | 124.2 | $ | 150.2 | 17 | % | $ | 395.2 | $ | 431.1 | 8 | % | |||||||||||||||||||||||||||||
Selling and Administrative Expenses | 154.5 | 162.6 | 5 | % | 448.2 | 470.4 | 5 | % | |||||||||||||||||||||||||||||||||
Depreciation and Amortization | 20.0 | 20.6 | 3 | % | 59.9 | 60.6 | 1 | % | |||||||||||||||||||||||||||||||||
Restructuring Expense | 4.8 | 5.3 | 8 | % | 23.2 | 18.0 | (29 | )% | |||||||||||||||||||||||||||||||||
Total Operating Costs 2 | $ | 303.5 | $ | 338.7 | 10 | % | $ | 926.5 | $ | 980.1 | 6 | % | |||||||||||||||||||||||||||||
Capital Expenditures 3 | $ | 1.0 | $ | 1.0 | 0 | % | $ | 2.1 | $ | 3.0 | 30 | % | |||||||||||||||||||||||||||||
Additions to |
$ | 16.7 | $ | 12.7 | (32 | )% | $ | 49.8 | $ | 29.7 | (68 | )% | |||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||||||||
Amounts in millions |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Net Debt Position: | |||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 137.0 | $ | 118.6 | $ | 117.7 | $ | 84.4 | $ | 89.5 | $ | 83.1 | $ | 83.6 | |||||||||||||||||||||||||||
Short-Term Debt | (400.2 | ) | (400.6 | ) | (1.0 | ) | (1.1 | ) | (188.6 | ) | (160.9 | ) | (2.1 | ) | |||||||||||||||||||||||||||
Long-Term Debt | (623.9 | ) | (613.0 | ) | (841.8 | ) | (963.9 | ) | (704.6 | ) | (700.6 | ) | (888.6 | ) | |||||||||||||||||||||||||||
Net Debt | $ | (887.1 | ) | $ | (895.0 | ) | $ | (725.1 | ) | $ | (880.6 | ) | $ | (803.7 | ) | $ | (778.4 | ) | $ | (807.1 | ) | ||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||||||||||||||||||||||
Amounts in millions |
|
|
% Change Fav/(Unfav) | ||||||||||||||||||||||||||||||||||||||
Free |
|||||||||||||||||||||||||||||||||||||||||
Net Cash Provided By Operating Activities (GAAP Results) | $ | 307.1 | $ | 271.2 | 13 | % | |||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||
Capital Expenditures (GAAP Results) 3 | 2.1 | 3.0 | 30 | % | |||||||||||||||||||||||||||||||||||||
Additions to |
49.8 | 29.7 | (68 | )% | |||||||||||||||||||||||||||||||||||||
Free |
$ | 255.2 | $ | 238.5 | 7 | % | |||||||||||||||||||||||||||||||||||
Legacy Tax Matters (Refund) Payment | - | (7.6 | ) | N/M | |||||||||||||||||||||||||||||||||||||
Free Cash Flow Excluding Legacy Tax Matters | $ | 255.2 | $ | 230.9 | 11 | % | |||||||||||||||||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||||||||||||||||||||||
Amounts in millions |
|
|
% Change Fav/(Unfav) | ||||||||||||||||||||||||||||||||||||||
Net Cash Provided By Operating Activities excluding Legacy Tax Matters: | |||||||||||||||||||||||||||||||||||||||||
Net Cash Provided By Operating Activities (GAAP Results) | $ | 307.1 | $ | 271.2 | 13 | % | |||||||||||||||||||||||||||||||||||
Legacy Tax Matters (Refund) Payment | - | (7.6 | ) | N/M | |||||||||||||||||||||||||||||||||||||
Net Cash Provided By Operating Activities Excluding Legacy Tax Matters | $ | 307.1 | $ | 263.6 | 17 | % | |||||||||||||||||||||||||||||||||||
Notes: | |||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Year-To-Date | ||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
1 | Divested and Other Business: | ||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 1.1 | |||||||||||||||||||||||||||||||||
Sales & Marketing Solutions | 0.0 | 1.4 | 0.0 | 3.1 | |||||||||||||||||||||||||||||||||||||
Internet Solutions | 0.0 | 0.9 | 0.0 | 3.1 | |||||||||||||||||||||||||||||||||||||
Total Divested and Other Business | $ | 0.0 | $ | 2.3 | $ | 0.0 | $ | 7.3 | |||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 0.0 | $ | 10.1 | $ | 8.7 | $ | 27.3 | |||||||||||||||||||||||||||||||||
Sales & Marketing Solutions | 0.0 | 16.2 | 9.4 | 44.9 | |||||||||||||||||||||||||||||||||||||
Internet Solutions | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||
Total Divested and Other Business | $ | 0.0 | $ | 26.3 | $ | 18.1 | $ | 72.2 | |||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||||||||||||
Sales & Marketing Solutions | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||
Internet Solutions | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||
Total Divested and Other Business | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | |||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions | $ | 0.0 | $ | 10.1 | $ | 8.7 | $ | 28.4 | |||||||||||||||||||||||||||||||||
Sales & Marketing Solutions | 0.0 | 17.6 | 9.4 | 48.0 | |||||||||||||||||||||||||||||||||||||
Internet Solutions | 0.0 | 0.9 | 0.0 | 3.1 | |||||||||||||||||||||||||||||||||||||
Total Divested and Other Business | $ | 0.0 | $ | 28.6 | $ | 18.1 | $ | 79.5 | |||||||||||||||||||||||||||||||||
2 | MaxCV: | ||||||||||||||||||||||||||||||||||||||||
Operating Expenses | $ | 6.6 | $ | 9.6 | $ | 26.8 | $ | 27.9 | |||||||||||||||||||||||||||||||||
Selling and Administrative Expenses | 0.0 | 2.0 | (1.8 | ) | 2.4 | ||||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 0.1 | 0.9 | 0.6 | 2.3 | |||||||||||||||||||||||||||||||||||||
Total Operating Costs | $ | 6.7 | $ | 12.5 | $ | 25.6 | $ | 32.6 | |||||||||||||||||||||||||||||||||
3 | MaxCV: | ||||||||||||||||||||||||||||||||||||||||
Capital Expenditures | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.9 | |||||||||||||||||||||||||||||||||
Additions to |
$ | 6.1 | $ | 4.3 | $ | 22.4 | $ | 9.7 | |||||||||||||||||||||||||||||||||
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
|
|||||||||||||||||||||||||||||||||||||||||
|
Schedule 5 |
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GAAP Revenue Reconciliation and Detail (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended |
Year-To-Date |
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Traditional/VAPs as a | Traditional/VAPs as a | |||||||||||||||||||||||||||||||||||||||||||||
AFX | Effects of | BFX | % of Total Customer Solution Sets/Core | AFX | Effects of | BFX | % of Total Customer Solution Sets/Core | |||||||||||||||||||||||||||||||||||||||
% Change | Foreign | % Change | 2012 | 2011 | % Change | Foreign | % Change | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Fav/(Unfav) | Exchange | Fav/(Unfav) | % Product Line/Core | % Product Line/Core | Fav/(Unfav) | Exchange | Fav/(Unfav) | % Product Line/Core | % Product Line/Core | |||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||
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Risk Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (2 | )% | 0 | % | (2 | )% | 68 | % | 39 | % | 68 | % | 41 | % | (3 | )% | 0 | % | (3 | )% | 70 | % | 42 | % | 69 | % | 42 | % | ||||||||||||||||||
VAPs | 1 | % | 0 | % | 1 | % | 24 | % | 14 | % | 23 | % | 14 | % | (6 | )% | 0 | % | (6 | )% | 22 | % | 13 | % | 23 | % | 14 | % | ||||||||||||||||||
Supply Management Solutions | (14 | )% | 0 | % | (14 | )% | 8 | % | 5 | % | 9 | % | 5 | % | (9 | )% | 0 | % | (9 | )% | 8 | % | 5 | % | 8 | % | 5 | % | ||||||||||||||||||
Total Risk Management Solutions | (3 | )% | (1 | )% | (2 | )% | 58 | % | 60 | % | (4 | )% | 0 | % | (4 | )% | 60 | % | 61 | % | ||||||||||||||||||||||||||
Sales & Marketing Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (4 | )% | 0 | % | (4 | )% | 26 | % | 9 | % | 29 | % | 9 | % | (11 | )% | 0 | % | (11 | )% | 24 | % | 7 | % | 28 | % | 8 | % | ||||||||||||||||||
VAPs | 16 | % | 0 | % | 16 | % | 74 | % | 24 | % | 71 | % | 21 | % | 12 | % | 0 | % | 12 | % | 76 | % | 23 | % | 72 | % | 21 | % | ||||||||||||||||||
Total Sales & Marketing Solutions | 10 | % | 0 | % | 10 | % | 33 | % | 30 | % | 6 | % | 0 | % | 6 | % | 30 | % | 29 | % | ||||||||||||||||||||||||||
Internet Solutions | (3 | )% | 0 | % | (3 | )% | 9 | % | 10 | % | 1 | % | 0 | % | 1 | % | 10 | % | 10 | % | ||||||||||||||||||||||||||
Core Revenue | 1 | % | 0 | % | 1 | % | (1 | )% | 0 | % | (1 | )% | ||||||||||||||||||||||||||||||||||
Divested and Other Business | N/M | N/M | N/M | N/M | N/M | N/M | ||||||||||||||||||||||||||||||||||||||||
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0 | % | (1 | )% | 1 | % | (2 | )% | 0 | % | (2 | )% | ||||||||||||||||||||||||||||||||||
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Risk Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (5 | )% | (4 | )% | (1 | )% | 91 | % | 77 | % | 94 | % | 84 | % | 3 | % | (2 | )% | 5 | % | 90 | % | 76 | % | 91 | % | 81 | % | ||||||||||||||||||
VAPs | 46 | % | (2 | )% | 48 | % | 9 | % | 8 | % | 6 | % | 6 | % | 15 | % | 0 | % | 15 | % | 10 | % | 8 | % | 9 | % | 7 | % | ||||||||||||||||||
Supply Management Solutions | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||
Total Risk Management Solutions | (2 | )% | (5 | )% | 3 | % | 85 | % | 90 | % | 4 | % | (2 | )% | 6 | % | 84 | % | 88 | % | ||||||||||||||||||||||||||
Sales & Marketing Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | 47 | % | (19 | )% | 66 | % | 63 | % | 9 | % | 68 | % | 7 | % | 37 | % | (12 | )% | 49 | % | 66 | % | 10 | % | 73 | % | 8 | % | ||||||||||||||||||
VAPs | 80 | % | (7 | )% | 87 | % | 37 | % | 6 | % | 32 | % | 3 | % | 96 | % | (4 | )% | 100 | % | 34 | % | 6 | % | 27 | % | 3 | % | ||||||||||||||||||
Total Sales & Marketing Solutions | 58 | % | (15 | )% | 73 | % | 15 | % | 10 | % | 53 | % | (10 | )% | 63 | % | 16 | % | 11 | % | ||||||||||||||||||||||||||
Internet Solutions | (18 | )% | (15 | )% | (3 | )% | 0 | % | 0 | % | (12 | )% | (11 | )% | (1 | )% | 0 | % | 1 | % | ||||||||||||||||||||||||||
Core Revenue | 4 | % | (5 | )% | 9 | % | 9 | % | (3 | )% | 12 | % | ||||||||||||||||||||||||||||||||||
Divested and Other Business | N/M | N/M | N/M | (75 | )% | 1 | % | (76 | )% | |||||||||||||||||||||||||||||||||||||
Total |
(36 | )% | (2 | )% | (34 | )% | (22 | )% | 0 | % | (22 | )% | ||||||||||||||||||||||||||||||||||
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Risk Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (6 | )% | (8 | )% | 2 | % | 81 | % | 66 | % | 83 | % | 67 | % | (5 | )% | (5 | )% | 0 | % | 80 | % | 66 | % | 82 | % | 68 | % | ||||||||||||||||||
VAPs | 7 | % | (7 | )% | 14 | % | 17 | % | 14 | % | 15 | % | 12 | % | 10 | % | (4 | )% | 14 | % | 18 | % | 15 | % | 16 | % | 13 | % | ||||||||||||||||||
Supply Management Solutions | 16 | % | (19 | )% | 35 | % | 2 | % | 2 | % | 2 | % | 1 | % | 29 | % | (15 | )% | 44 | % | 2 | % | 2 | % | 2 | % | 1 | % | ||||||||||||||||||
Total Risk Management Solutions | (3 | )% | (7 | )% | 4 | % | 82 | % | 80 | % | (2 | )% | (5 | )% | 3 | % | 83 | % | 82 | % | ||||||||||||||||||||||||||
Sales & Marketing Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (20 | )% | (4 | )% | (16 | )% | 64 | % | 11 | % | 72 | % | 14 | % | (6 | )% | (3 | )% | (3 | )% | 63 | % | 10 | % | 66 | % | 11 | % | ||||||||||||||||||
VAPs | 17 | % | (9 | )% | 26 | % | 36 | % | 6 | % | 28 | % | 5 | % | 5 | % | (5 | )% | 10 | % | 37 | % | 6 | % | 34 | % | 6 | % | ||||||||||||||||||
Total Sales & Marketing Solutions | (10 | )% | (5 | )% | (5 | )% | 17 | % | 19 | % | (2 | )% | (3 | )% | 1 | % | 16 | % | 17 | % | ||||||||||||||||||||||||||
Internet Solutions | 1 | % | (4 | )% | 5 | % | 1 | % | 1 | % | 9 | % | (3 | )% | 12 | % | 1 | % | 1 | % | ||||||||||||||||||||||||||
Core Revenue | (4 | )% | (7 | )% | 3 | % | (2 | )% | (5 | )% | 3 | % | ||||||||||||||||||||||||||||||||||
Divested and Other Business | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||||||||||||
Total |
(4 | )% | (7 | )% | 3 | % | (2 | )% | (5 | )% | 3 | % | ||||||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||||||||||||
Risk Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (5 | )% | (6 | )% | 1 | % | 85 | % | 71 | % | 88 | % | 74 | % | (1 | )% | (3 | )% | 2 | % | 85 | % | 70 | % | 86 | % | 73 | % | ||||||||||||||||||
VAPs | 16 | % | (7 | )% | 23 | % | 13 | % | 11 | % | 11 | % | 9 | % | 11 | % | (3 | )% | 14 | % | 14 | % | 12 | % | 13 | % | 11 | % | ||||||||||||||||||
Supply Management Solutions | 16 | % | (19 | )% | 35 | % | 2 | % | 1 | % | 1 | % | 1 | % | 29 | % | (15 | )% | 44 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||
Total Risk Management Solutions | (3 | )% | (7 | )% | 4 | % | 83 | % | 84 | % | 1 | % | (3 | )% | 4 | % | 83 | % | 85 | % | ||||||||||||||||||||||||||
Sales & Marketing Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (3 | )% | (7 | )% | 4 | % | 64 | % | 10 | % | 71 | % | 11 | % | 8 | % | (6 | )% | 14 | % | 64 | % | 10 | % | 68 | % | 10 | % | ||||||||||||||||||
VAPs | 36 | % | (8 | )% | 44 | % | 36 | % | 6 | % | 29 | % | 4 | % | 29 | % | (5 | )% | 34 | % | 36 | % | 6 | % | 32 | % | 4 | % | ||||||||||||||||||
Total Sales & Marketing Solutions | 8 | % | (7 | )% | 15 | % | 16 | % | 15 | % | 15 | % | (5 | )% | 20 | % | 16 | % | 14 | % | ||||||||||||||||||||||||||
Internet Solutions | (4 | )% | (7 | )% | 3 | % | 1 | % | 1 | % | 3 | % | (5 | )% | 8 | % | 1 | % | 1 | % | ||||||||||||||||||||||||||
Core Revenue | (1 | )% | (6 | )% | 5 | % | 3 | % | (3 | )% | 6 | % | ||||||||||||||||||||||||||||||||||
Divested and Other Business | N/M | N/M | N/M | (75 | )% | 1 | % | (76 | )% | |||||||||||||||||||||||||||||||||||||
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(21 | )% | (4 | )% | (17 | )% | (12 | )% | (1 | )% | (11 | )% | ||||||||||||||||||||||||||||||||||
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Risk Management Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (3 | )% | (2 | )% | (1 | )% | 74 | % | 48 | % | 74 | % | 50 | % | (2 | )% | (1 | )% | (1 | )% | 75 | % | 49 | % | 75 | % | 50 | % | ||||||||||||||||||
VAPs | 4 | % | (1 | )% | 5 | % | 21 | % | 13 | % | 20 | % | 13 | % | (2 | )% | 0 | % | (2 | )% | 19 | % | 13 | % | 19 | % | 13 | % | ||||||||||||||||||
Supply Management Solutions | (13 | )% | (1 | )% | (12 | )% | 5 | % | 4 | % | 6 | % | 4 | % | (7 | )% | 0 | % | (7 | )% | 6 | % | 4 | % | 6 | % | 4 | % | ||||||||||||||||||
Total Risk Management Solutions | (3 | )% | (2 | )% | (1 | )% | 65 | % | 67 | % | (3 | )% | (2 | )% | (1 | )% | 66 | % | 67 | % | ||||||||||||||||||||||||||
Sales & Marketing Solutions: | ||||||||||||||||||||||||||||||||||||||||||||||
Traditional | (4 | )% | (2 | )% | (2 | )% | 31 | % | 9 | % | 36 | % | 9 | % | (5 | )% | (1 | )% | (4 | )% | 30 | % | 8 | % | 34 | % | 9 | % | ||||||||||||||||||
VAPs | 17 | % | 0 | % | 17 | % | 69 | % | 19 | % | 64 | % | 17 | % | 13 | % | (1 | )% | 14 | % | 70 | % | 19 | % | 66 | % | 16 | % | ||||||||||||||||||
Total Sales & Marketing Solutions | 10 | % | (1 | )% | 11 | % | 28 | % | 26 | % | 7 | % | (1 | )% | 8 | % | 27 | % | 25 | % | ||||||||||||||||||||||||||
Internet Solutions | (3 | )% | (1 | )% | (2 | )% | 7 | % | 7 | % | 1 | % | 0 | % | 1 | % | 7 | % | 8 | % | ||||||||||||||||||||||||||
Core Revenue | 1 | % | (1 | )% | 2 | % | 0 | % | (1 | )% | 1 | % | ||||||||||||||||||||||||||||||||||
Divested and Other Business | N/M | N/M | N/M | (77 | )% | 1 | % | (78 | )% | |||||||||||||||||||||||||||||||||||||
Total Revenue | (6 | )% | (1 | )% | (5 | )% | (5 | )% | (1 | )% | (4 | )% | ||||||||||||||||||||||||||||||||||
AFX - After Effects of Foreign Exchange |
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BFX - Before Effects of Foreign Exchange |
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N/M - Not Meaningful |
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This financial information should be read in conjunction with the consolidated financial statements and related notes of
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Schedule 6 | ||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||
% of Core Product Line |
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North America Risk Management Solutions | |||||||||||||||||||||||||||||
Subscription 1 | 68 | % | 72 | % | 73 | % | 66 | % | 69 | % | 72 | % | 72 | % | 67 | % | |||||||||||||
Non-Subscription 1 | 32 | % | 28 | % | 27 | % | 34 | % | 31 | % | 28 | % | 28 | % | 33 | % | |||||||||||||
North America Risk Management Solutions | |||||||||||||||||||||||||||||
DNBi 2 | 60 | % | 63 | % | 63 | % | 57 | % | 59 | % | 61 | % | 60 | % | 57 | % | |||||||||||||
Non-DNBi 2 | 40 | % | 37 | % | 37 | % | 43 | % | 41 | % | 39 | % | 40 | % | 43 | % | |||||||||||||
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. |
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- 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. |
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- 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
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D&B
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