The Dun & Bradstreet Corporation
Oct 28, 2009

D&B Announces Third Quarter 2009 Results; Reconfirms Guidance

Printable Financials

SHORT HILLS, N.J., Oct 28, 2009 (BUSINESS WIRE) -- D&B (NYSE: DNB), the leading provider of global business information, tools and commercial insight, today reported results for the third quarter ended September 30, 2009.

"Our third quarter performance was very much in line with our expectations," noted Steve Alesio, D&B's Chairman and CEO. "International delivered another quarter of strong growth. North America performed as expected and continues to focus on enhancing our value proposition and retaining customers for the long term. We feel good about our company's performance on a year-to-date basis in the context of the economic environment and relative to many other companies."

Third Quarter 2009 Results

Diluted earnings per share before non-core gains and charges for the quarter ended September 30, 2009, were $1.13, up 1 percent from $1.12 in the prior year similar period. On a GAAP basis, diluted earnings per share for the quarter ended September 30, 2009, were $1.02, down from $1.18 in the prior year similar period, due to discrete tax benefits recorded in the prior year quarter.

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 2009 was $399.0 million, up 2 percent from the prior year similar period before the effect of foreign exchange (flat after the effect of foreign exchange).

Core revenue results for the third quarter of 2009 reflect the following by solution set:

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

Total revenue for the third quarter of 2009, was $399.0 million. This result is down 1 percent as compared to the prior year similar period, which included the results of a divested business as described below, before the effect of foreign exchange (down 3 percent after the effect of foreign exchange).

We reclassified revenue associated with the domestic portion of our Italian operations as non-core as of the quarter ending June 30th, 2009, due to the sale of substantially all of the assets and liabilities associated with that portion of the business (see the Company's Form 8-K, filed with the SEC on June 1, 2009). Total revenue for the third quarter of 2008 included $10.2 million of revenue associated with the domestic portion of our Italian operations, with no revenue from those operations in the third quarter of 2009.

Operating income before non-core gains and charges for the third quarter of 2009 was $104.8 million, down 3 percent from the prior year similar period. On a GAAP basis, operating income was $92.6 million, up 2 percent from the prior year similar period. During the third quarter of 2009, the Company also incurred transition costs of $4.0 million compared with $3.1 million incurred in the prior year similar period.

Net income before non-core gains and charges for the third quarter of 2009 was $60.1 million, down 3 percent from the prior year similar period. On a GAAP basis, net income for the quarter was $54.0 million, down 17 percent from the prior year similar period, primarily due to discrete tax benefits in the same prior year period.

See attached Schedule 3 for additional detail.

Free cash flow for the first nine months of 2009, excluding the impact of legacy tax matters, was $244 million, compared with $273 million in the prior year similar period. The Company defines free cash flow as net cash provided by operating activities less capital expenditures and additions to computer software and other intangibles. On a GAAP basis, net cash provided by operating activities for the first nine months of 2009 was $303 million, compared with $348 million in the prior year similar period.

See attached Schedule 4 for additional detail.

Share repurchases during the third quarter of 2009 under the Company's discretionary repurchase program totaled $60 million, while repurchases made to offset the dilutive effect of shares issued under employee benefit plans totaled an additional $4 million.

The Company ended the quarter with $187 million of cash and cash equivalents.

Third Quarter 2009 Segment Results

North America

Core and total revenue for the third quarter of 2009 was $310.8 million, down 3 percent from the prior year similar period both before and after the effect of foreign exchange.

North America core and total revenue results for the third quarter of 2009 reflect the following:

Operating income for the third quarter of 2009 was $105.4 million, down 7 percent from the prior year similar period. The result was primarily due to lower revenue, partially offset by reengineering savings.

International

Core revenue for the third quarter of 2009 was $88.2 million, up 24 percent from the prior year similar period before the effect of foreign exchange (up 13 percent after the effect of foreign exchange).

International core revenue results for the third quarter of 2009 reflect the following:

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

Total revenue for the third quarter of 2009, was $88.2 million, up 10 percent from the prior year similar period before the effect of foreign exchange (flat after the effect of foreign exchange). The results of the domestic portion of our Italian operation which we divested in the second quarter of 2009 are included in the prior year period total revenue.

Operating income for the third quarter of 2009 was $17.7 million, up 13 percent from the prior year similar period. The increase was primarily due to revenue growth in the International segment, lower costs resulting from the sale of our domestic portion of our Italian operations and the benefit of reengineering savings, partially offset by the negative impact of foreign exchange.

Non-Core Gains and Charges

During the third quarter of 2009 and 2008, the Company recorded:

See attached Schedule 3 for additional explanations and details of these charges.

D&B's restructuring charges may be viewed as recurringas they are part of its Financial Flexibility initiatives. In addition to reporting GAAP results, the Company reports results before restructuring charges and other non-core gains and charges because they do not reflect the Company's underlying business performance and they may have a disproportionate positive or negative impact on the results of its ongoing business operations. For additional information, see the section titled "Use of Non-GAAP Financial Measures" below.

Full Year 2009 Guidance

D&B today reconfirmed the following financial guidance for the full year 2009:

D&B does not provide guidance on a GAAP basis because D&B is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of non-core gains and charges, such as restructuring charges and legacy tax matters, which are a component of the most comparable financial measures calculated in accordance with GAAP. Non-core gains and charges are uncertain and will depend on several factors, including industry conditions, and could be material to D&B's results computed in accordance with GAAP.

Use of Non-GAAP Financial Measures

D&B reports non-GAAP financial measures in this press release and the schedules attached. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - How We Manage Our Business" in the Company's Annual Report on Form 10-K for the year ending December 31, 2008, filed February 24, 2009 with the SEC, for a discussion of how the Company defines these measures, why it uses them and why it believes they provide useful information to investors. Additionally, these measures are defined in Schedule 3 attached to this press release.

Third Quarter 2009 Teleconference

As previously announced, D&B will review its third quarter 2009 financial results in a conference call with the investment community on October 29, 2009, at 8 a.m. ET. Live audio, as well as a replay of the conference call and other related information, will be accessible on D&B's Investor Relations Web site at http://investor.dnb.com.

About Dun & Bradstreet®(D&B)

Dun & Bradstreet (NYSE:DNB) is the world's leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence® for 168 years. D&B's global commercial database contains more than 150 million business records. The database is enhanced by D&B's proprietary DUNSRight® Quality Process, which provides our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions.

D&B provides solution sets that meet a diverse set of customer needs globally. Customers use D&B Risk Management 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. For more information, please visit www.dnb.com.

Forward-Looking and Cautionary Statements

This press release, including, in particular, the section titled "Full Year 2009 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.

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 most recent filings with the SEC, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are available on its Web site at www.dnb.com and on the SEC's web site at www.sec.gov. D&B cautions that the foregoing list of important factors is not complete and except as otherwise required by federal securities laws does not undertake any obligation to update any forward-looking statements.

The Dun & Bradstreet Corporation                                       Schedule 1

Consolidated Statement of Operations (unaudited) - GAAP Results

                     
                                             
        Quarter Ended       Effects of       Year-To-Date       Effects of    
        September 30,   AFX  

Foreign

  BFX   September 30,   AFX   Foreign   BFX
                % Change   Exchange   % Change             % Change   Exchange   % Change

Amounts in millions, except per share data

  2009   2008   Fav/(Unfav)   Fav/(Unfav)   Fav/(Unfav)   2009   2008   Fav/(Unfav)   Fav/(Unfav)   Fav/(Unfav)
Revenue:                                        
  North America   $ 310.8     $ 321.0     (3 )%   0 %   (3 )%   $ 952.3     $ 984.4     (3 )%   0 %   (3 )%
  International     88.2       78.0     13 %   (11 )%   24 %     249.1       231.5     8 %   (14 )%   22 %
                                             
    Core Revenue     399.0       399.0     0 %   (2 )%   2 %     1,201.4       1,215.9     (1 )%   (2 )%   1 %
                                             
  Divested Business (1)     -       10.2     N/M     N/M     N/M       21.9       35.7     (39 )%   (9 )%   (30 )%
                                             
Total Revenue   $ 399.0     $ 409.2     (3 )%   (2 )%   (1 )%   $ 1,223.3     $ 1,251.6     (2 )%   (3 )%   1 %
Operating Income (Loss):                                        
  North America   $ 105.4     $ 113.1     (7 )%           $ 338.7     $ 345.8     (2 )%        
  International     17.7       15.7     13 %             51.9       45.4     14 %        
    Total Divisions     123.1       128.8     (5 )%             390.6       391.2