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     0 %        
  Corporate and Other (2)     (30.5 )     (37.6 )   19 %             (73.3 )     (93.7 )   22 %        
                                             
Operating Income     92.6       91.2     2 %             317.3       297.5     7 %        
Interest Income     0.6       2.9     (79 )%             2.5       9.0     (73 )%        
Interest Expense     (11.4 )     (11.7 )   3 %             (34.2 )     (34.3 )   1 %        
Other Income (Expense) - Net (3)     (2.0 )     9.9     N/M               13.9       1.8     N/M          
                                             
Non-Operating Income (Expense) - Net     (12.8 )     1.1     N/M               (17.8 )     (23.5 )   25 %        
                                             
Income before Provision for Income Taxes     79.8       92.3     (14 )%             299.5       274.0     9 %        
Provision for Income Taxes     25.4       27.3     7 %             63.5       64.8     2 %        
Equity in Net Income (Loss) of Affiliates     0.3       0.3     0 %             1.0       0.9     11 %        
                                             
Income From Continuing Operations     54.7       65.3     (16 )%             237.0       210.1     13 %        
                                             
Discontinued Operations:                                        
                                             
Income from Discontinued Operations, Net of Income Taxes     -       -     0 %             -       0.7     N/M          
                                             
Gain on Disposal of Italian Real Estate business, No Income Tax Impact     -       -     0 %             -       0.4     N/M          
                                             
Income from Discontinued Operations, Net of Income Taxes     -       -     0 %             -       1.1     N/M          
                                             
Net Income   $ 54.7     $ 65.3     (16 )%           $ 237.0     $ 211.2     12 %        
                                             
Less: Net (Income) Loss Attributable to the Noncontrolling Interest     (0.7 )     (0.2 )   N/M               (2.0 )     (0.7 )   N/M          
                                             
Net Income Attributable to D&B (4)   $ 54.0     $ 65.1     (17 )%           $ 235.0     $ 210.5     12 %        
                                             
Basic Earnings Per Share of Common Stock:                                        
Income from Continuing Operations Attributable to D&B Common Shareholders   $ 1.03     $ 1.20     (14 )%           $ 4.44     $ 3.79     17 %        
Income from Discontinued Operations Attributable to D&B Common Shareholders     -       -     0 %             -       0.02     N/M          
Net Income Attributable to D&B Common Shareholders   $ 1.03     $ 1.20     (14 )%           $ 4.44     $ 3.81     17 %        
                                             
Diluted Earnings Per Share of Common Stock:                                        
Income from Continuing Operations Attributable to D&B Common Shareholders   $ 1.02     $ 1.18     (14 )%           $ 4.39     $ 3.73     18 %        
Income from Discontinued Operations Attributable to D&B Common Shareholders     -       -     0 %             -       0.02     N/M          
Net Income Attributable to D&B Common Shareholders (5)   $ 1.02     $ 1.18     (14 )%           $ 4.39     $ 3.75     17 %        
                                             
                                             
Weighted Average Number of Shares Outstanding:                                        
  Basic     52.0       53.9     4 %             52.6       54.8     4 %        
                                             
  Diluted     52.6       54.8     4 %             53.2       55.8     5 %        
                                             
Amounts Attributable to D&B Common Shareholders:                                        
Income from Continuing Operations, Net of Income Taxes   $ 54.0     $ 65.1     (17 )%           $ 235.0     $ 209.4     12 %        
Income from Discontinued Operations, Net of Income Taxes     -       -     0 %             -       1.1     N/M          
Net Income   $ 54.0     $ 65.1     (17 )%           $ 235.0     $ 210.5     12 %        
                                             
AFX - After Effects of Foreign Exchange                                        
BFX - Before Effects of Foreign Exchange                                        
N/M - Not Meaningful                                        
                                             
See Schedule 3 (Notes to Schedules), which is an integral part of the consolidated statement of operations.

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

The Dun & Bradstreet Corporation                                       Schedule 2

Consolidated Statement of Operations (unaudited) - (On a Continuing Operations Basis) - Before Non-Core Gains and Charges

           
                                             
        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     0 %        
  Corporate and Other (2)     (18.3 )     (20.4 )   11 %             (57.0 )     (64.9 )   12 %        
                                             
Operating Income     104.8       108.4     (3 )%             333.6       326.3     2 %        
Interest Income     0.6       2.9     (79 )%             2.5       9.0     (73 )%        
Interest Expense     (11.4 )     (11.7 )   3 %             (34.2 )     (34.3 )   1 %        
Other Income (Expense) - Net (3)     (0.1 )     1.6     N/M               (0.2 )     0.5     N/M          
                                             
Non-Operating Income (Expense) - Net     (10.9 )     (7.2 )   (50 )%             (31.9 )     (24.8 )   (28 )%        
                                             
Income before Provision for Income Taxes     93.9       101.2     (7 )%             301.7       301.5     0 %        
Provision for Income Taxes     33.4       39.2     15 %             104.0       110.3     6 %        
Equity in Net Income (Loss) of Affiliates     0.3       0.3     0 %             1.0       0.9     11 %        
Net Income   $ 60.8     $ 62.3     (2 )%           $ 198.7     $ 192.1     3 %        
                                             
Less: Net (Income) Loss Attributable to the Noncontrolling Interest     (0.7 )     (0.2 )   N/M               (2.0 )     (0.7 )   N/M          
                                             
Net Income Attributable to D&B (4)   $ 60.1     $ 62.1     (3 )%           $ 196.7     $ 191.4     3 %        
                                             
Basic Earnings Per Share of Common Stock   $ 1.15     $ 1.14     1 %           $ 3.72     $ 3.47     7 %        
                                             
Diluted Earnings Per Share of Common Stock (5)   $ 1.13     $ 1.12     1 %           $ 3.67     $ 3.41     8 %        
                                             
                                             
Weighted Average Number of Shares Outstanding:                                        
  Basic     52.0       53.9     4 %             52.6       54.8     4 %        
                                             
  Diluted     52.6       54.8     4 %             53.2       55.8     5 %        
                                             
                                             
AFX - After Effects of Foreign Exchange                                        
BFX - Before Effects of Foreign Exchange                                        
N/M - Not Meaningful                                        
                                             
See Schedule 3 (Notes to Schedules) for a definition of Non-GAAP measures and a reconciliation of non-core gains and charges.

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

The Dun & Bradstreet Corporation                         Schedule 3
Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP Measures                
                                 
                                 
(1)   Includes revenue from the Italian Domestic business                        
(2)   The following table reconciles Corporate and Other expenses included in Schedule 1 and Schedule 2:            
                                 
            Quarter Ended       Year-To-Date    
            September 30,       September 30,    
                    % Change           % Change
    Amounts in millions     2009   2008   Fav/(Unfav)   2009   2008   Fav/(Unfav)
    Corporate and Other - GAAP Results (Schedule 1)     $ (30.5 )   $ (37.6 )   19 %   $ (73.3 )   $ (93.7 )   22 %
      Restructuring Charges       (12.2 )     (17.2 )   29 %     (16.3 )     (28.8 )   43 %
    Corporate and Other - Before Non-Core Gains and Charges (Schedule 2)   $ (18.3 )   $ (20.4 )   11 %   $ (57.0 )   $ (64.9 )   12 %
                                 
                                 
                                 
                                 
(3)   The following table reconciles Other Income (Expense)-Net included in Schedule 1 and Schedule 2:        
                                 
            Quarter Ended       Year-To-Date    
            September 30,       September 30,    
                    % Change           % Change
    Amounts in millions     2009   2008   Fav/(Unfav)   2009   2008   Fav/(Unfav)
    Other Income (Expense)-Net - GAAP Results (Schedule 1)   $ (2.0 )   $ 9.9     N/M     $ 13.9     $ 1.8     N/M  
      Effect of Legacy Tax Matters       0.3       0.2     (50 )%     0.7       0.9     22 %
      Tax Reserve true-up for the Settlement of 2003 tax year, related to the "Amortization and     -       -     N/M       -       (7.7 )   N/M  
      Royalty Expense Deductions" transaction                        
      Settlement of Legacy Tax Matter Arbitration     -       8.1     N/M       4.1       8.1     N/M  
      Gain on Disposal of Italian Domestic business     (2.2 )     -     N/M       9.3       -     N/M  
    Other Income (Expense)-Net - Before Non-Core Gains and Charges (Schedule 2)   $ (0.1 )   $ 1.6     N/M     $ (0.2 )   $ 0.5     N/M  
                                 
                                 
                                 
(4)   The following table reconciles Net Income included in Schedule 1 and Schedule 2:            
                                 
            Quarter Ended       Year-To-Date    
            September 30,       September 30,    
                    % Change           % Change
    Amounts in millions     2009   2008   Fav/(Unfav)   2009   2008   Fav/(Unfav)
    Net Income Attributable to D&B - GAAP Results (Schedule 1)   $ 54.0     $ 65.1     (17 )%   $ 235.0     $ 210.5     12 %
                                 
      Restructuring Charges       (7.6 )     (11.0 )   31 %     (10.2 )     (18.7 )   45 %
      Settlement of Legacy Tax Matter Arbitration       -       5.0     N/M       1.0       5.0     (80 )%
      Tax Reserve true-up for the Settlement of 2003 tax year, related to the "Amortization and     -       -     N/M       -       7.7     N/M  
      Royalty Expense Deductions" transaction                        
      Favorable resolution of Global Tax Audits including the Liquidation of Dormant International     -       9.0     N/M       -       22.7     N/M  
      Corporations and/or Divested Entities                        
      Interest on IRS Deposit       -       -     N/M       -       1.3      
      Benefits Derived From Worldwide Legal Entity Simplification     3.0       -     N/M       36.2       -     N/M  
      Gain on Disposal of Italian Domestic business     (1.5 )     -     N/M       11.3       -     N/M  
      Income from Discontinued Operations, Net of Income Taxes     -       -     N/M       -       0.7     N/M

 

      Gain on Disposal of Italian Real Estate business     -       -     N/M       -       0.4     N/M  
    Net Income Attributable to D&B - (On a Continuing Operations Basis) - Before Non-Core Gains and Charges (Schedule 2)   $ 60.1     $ 62.1     (3 )%   $ 196.7     $ 191.4     3 %
                                 
                                 
(5)   The following table reconciles Diluted Earnings Per Share included in Schedule 1 and Schedule 2:                
                                 
            Quarter Ended       Year-To-Date    
            September 30,       September 30,    
                    % Change           % Change
            2009   2008   Fav/(Unfav)   2009   2008   Fav/(Unfav)
    Diluted EPS Attributable to D&B - GAAP Results (Schedule 1)   $ 1.02     $ 1.18     (14 )%   $ 4.39     $ 3.75     17 %
                                 
      Restructuring Charges       (0.14 )     (0.20 )   30 %     ($0.19 )     (0.34 )   44 %
      Settlement of Legacy Tax Matter Arbitration     -       0.09     N/M       0.02       0.09     N/M  
      Tax Reserve true-up for the Settlement of 2003 tax year, related to the "Amortization and     -       -     N/M       -       0.14     N/M  
      Royalty Expense Deductions" transaction                        
      Favorable resolution of Global Tax Audits including the Liquidation of Dormant International     -       0.17     N/M       -       0.41     N/M  
      Corporations and/or Divested Entities                        
      Interest on IRS Deposit       -       -     N/M       -       0.02     N/M  
      Benefits Derived From Worldwide Legal Entity Simplification     0.06       -     N/M       0.68       -     N/M  
      Gain on Disposal of Italian Domestic business     (0.03 )     -     N/M       0.21       -     N/M  
      Income from Discontinued Operations, Net of Income Taxes     -       -     N/M       -       0.02     N/M  
    Diluted EPS Attributable to D&B- (On a Continuing Operations Basis) - Before Non-Core Gains and Charges (Schedule 2)   $ 1.13     $ 1.12     1 %   $ 3.67     $ 3.41     8 %
                                 

 

                         

N/M - Not Meaningful

                         
 

The following defines the non-GAAP measures used to evaluate performance:

*For 2008, our non-GAAP measures reflect results on a "Continuing Operations" basis

*Total revenue excluding the revenue of divested businesses is referred to as "core revenue." Core revenue includes the revenue from acquired businesses from the date of acquisition

*Core revenue growth, excluding the effects of foreign exchange, is referred to as "core revenue growth before the effects of foreign exchange." We also separately, from time to time, analyze core revenue growth before the effects of foreign exchange among two components, "organic core revenue growth" and "core revenue growth from acquisitions"

*Results (such as operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) exclude Restructuring Charges (whether recurring or non-recurring) and certain other items that we consider do no reflect our underlying business performance. We refer to these Restructuring Charges and other items as "non-core gains and (charges)"

*Net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles is referred to as "free cash flow"

 
 

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

The Dun & Bradstreet Corporation                               Schedule 4
Supplemental GAAP Financial Data (unaudited)                                
                                                     
                                                     
                                                     
            Quarter Ended       Effects of           Year-To-Date       Effects of    
            September 30,   AFX   Foreign   BFX       September 30,   AFX   Foreign   BFX
                    % Change   Exchange   % Change               % Change   Exchange   % Change
  Amounts in millions   2009   2008   Fav/(Unfav)   Fav/(Unfav)   Fav/(Unfav)       2009   2008   Fav/(Unfav)   Fav/(Unfav)   Fav/(Unfav)
  Geographic and Customer Solution Set Revenue:                                            
  North America:                                            
    Risk Management Solutions     198.7     201.5       (1 )%     0 %     (1 )%         607.1       615.6     (1 )%   0 %   (1 )%
    Sales & Marketing Solutions     84.7     89.6       (6 )%     (1 )%     (5 )%         258.1       279.3     (8 )%   (1 )%   (7 )%
    Internet Solutions         27.4     29.9       (9 )%     (1 )%     (8 )%         87.1       89.5     (3 )%   (1 )%   (2 )%
                                                     
    Subtotal Core Revenue       310.8     321.0       (3 )%     0 %     (3 )%         952.3       984.4     (3 )%   0 %   (3 )%
                                                     
    Divested Business         -     -       N/M       N/M       N/M           -       -     N/M     N/M     N/M  
                                                     
  Total North America Revenue     310.8     321.0       (3 )%     0 %     (3 )%         952.3       984.4     (3 )%   0 %   (3 )%
                                                     
  International:                                                
    Risk Management Solutions     66.1     62.2       6 %     (10 )%     16 %         187.8       182.0     3 %   (15 )%   18 %
    Sales & Marketing Solutions     21.2     14.7       46 %     (8 )%     54 %         58.7       46.2     27 %   (10 )%   37 %
    Internet Solutions         0.9     1.1       (19 )%     (17 )%     (2 )%         2.6       3.3     (22 )%   (22 )%   0 %
                                                     
    Subtotal Core Revenue       88.2     78.0       13 %     (11 )%     24 %         249.1       231.5     8 %   (14 )%   22 %
                                                     
    Divested Business         -     10.2       N/M       N/M       N/M           21.9       35.7     (39 )%   (9 )%   (30 )%
                                                     
  Total International Revenue     88.2     88.2       0 %     (10 )%     10 %         271.0       267.2     1 %   (14 )%   15 %
                                                     
  Total Corporation:                                                
    Risk Management Solutions     264.8     263.7       0 %     (3 )%     3 %         794.9       797.6     0 %   (3 )%   3 %
    Sales & Marketing Solutions     105.9     104.3       2 %     0 %     2 %         316.8       325.5     (3 )%   (1 )%   (2 )%
    Internet Solutions         28.3     31.0       (9 )%     (1 )%     (8 )%         89.7       92.8     (3 )%   (1 )%   (2 )%
                                                     
    Subtotal Core Revenue       399.0     399.0       0 %     (2 )%     2 %         1,201.4       1,215.9     (1 )%   (2 )%   1 %
                                                     
    Divested Business         -     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 Costs:                                                
    Operating Expenses     $ 120.5   $ 116.6       (3 )%               $ 366.9     $ 362.5     (1 )%        
    Selling and Administrative Expenses     159.9     169.8       6 %                 480.4       521.1     8 %        
    Depreciation and Amortization     13.8     14.4       4 %                 42.4       41.7     (2 )%        
    Restructuring Expense       12.2     17.2       29 %                 16.3       28.8     43 %        
                                                     
  Total Operating Costs     $ 306.4   $ 318.0       4 %               $ 906.0     $ 954.1     5 %        
                                                     
  Capital Expenditures         2.6   $ 3.8       32 %                 6.0     $ 9.3     35 %        
                                                     
  Additions to Computer Software & Other Intangibles   $ 13.7   $ 11.8       (16 )%               $ 41.9     $ 39.8     (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.
                                                     
                Quarter Ended            
  Amounts in millions   Sep 30, 2009   Jun 30, 2009   Mar 31, 2009   Dec 31, 2008   Sep 30, 2008   Jun 30, 2008   Mar 31, 2008            
                                                     
  Net Debt Position:                                                
    Cash and Cash Equivalents       $ 187.3     $ 226.4     $ 179.9     $ 164.2     $ 230.6     $ 245.5     $ 215.7              
    Short-Term Debt             (1.3 )     (0.6 )     (0.6 )     -       -       -       -              
    Long-Term Debt         (894.2 )     (868.0 )     (900.0 )     (904.3 )     (864.6 )     (825.6 )     (790.0 )            
                                                     
  Net Debt           $ (708.2 )   $ (642.2 )   $ (720.7 )   $ (740.1 )   $ (634.0 )   $ (580.1 )   $ (574.3 )            
                                                     
                                                     
                Year-to-Date                            
                        % Change                            
  Amounts in millions   Sep 30, 2009   Sep 30, 2008   Fav/(Unfav)                            
  Free Cash Flow:                                                
    Net Cash Provided By Operating Activities from Continuing Operations (GAAP Results)   $ 302.8     $ 348.0       (13 )%                            
    Less:                                                
    Capital Expenditures (GAAP Results)     6.0       9.3       35 %                            
    Additions to Computer Software & Other Intangibles (GAAP Results)     41.9       39.8       (5 )%                            
                                                     
  Free Cash Flow             254.9       298.9       (15 )%                            
    Legacy Tax Matters (Refund) Payment     (10.8 )     (25.6 )     58 %                            
  Free Cash Flow Excluding Legacy Tax Matters   $ 244.1     $ 273.3       (11 )%                            
                                                     
                                                     
                Year-to-Date                            
                                                     
                        % Change                            
  Amounts in millions   Sep 30, 2009   Sep 30, 2008   Fav/(Unfav)                            
                                                     
  Net Cash Provided By Operating Activities excluding Legacy Tax Matters:                                      
    Net Cash Provided By Operating Activities from Continuing Operations (GAAP Results)   $ 302.8     $ 348.0       (13 )%                            
    Legacy Tax Matters (Refund) Payment     (10.8 )     (25.6 )     58 %                            
                                                     
    Net Cash Provided By Operating Activities Excluding Legacy Tax Matters   $ 292.0     $ 322.4       (9 )%                            
                                                     
                                                     
                                                     
N/M - Not Meaningful                                        
                                                     

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

The Dun & Bradstreet Corporation                                   Schedule 5
GAAP Revenue Reconciliation and Detail (unaudited)                                
                                                                   
          Quarter Ended September 30, 2009 vs. 2008   Year-To-Date September 30, 2009 vs. 2008
                            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   2009   2008   % Change   Foreign   % Change   2009   2008
          Fav/(Unfav)   Exchange   Fav/(Unfav)   % Product Line/Core   % Product Line/Core   Fav/(Unfav)   Exchange   Fav/(Unfav)   % Product Line/Core   % Product Line/Core
                                                                   
  Revenue:                                                              
  North America:                                                              
    Risk Management Solutions:                                                            
    Traditional     (3)%     0%     (3)%     73% 47%   74% 46%   (2)%     (1)%     (1)%     73% 47%   73% 46%
    VAPs     1%     0%     1%     21% 13%   20% 13%   (5)%     (1)%     (4)%     20% 13%   21% 13%
    Supply Management Solutions   14%     (1)%     15%     6% 4%   6% 4%   11%     0%     11%     7% 4%   6% 4%
    Total Risk Management Solutions   (1)%     0%     (1)%       64%     63%   (1)%     0%     (1)%       64%     63%
    Sales & Marketing Solutions:                                                            
    Traditional     (6)%     0%     (6)%     45% 12%   45% 13%   (13)%     0%     (13)%     39% 10%   41% 12%
    VAPs     (5)%     0%     (5)%     55% 15%   55% 15%   (4)%     (1)%     (3)%     61% 17%   59% 16%
    Total Sales & Marketing Solutions   (6)%     (1)%     (5)%       27%     28%   (8)%     (1)%     (7)%       27%     28%
    Internet Solutions     (9)%     (1)%     (8)%       9%     9%   (3)%     (1)%     (2)%       9%     9%
    Core Revenue     (3)%     0%     (3)%                 (3)%     0%     (3)%              
    Divested Business     N/M     N/M     N/M                 N/M     N/M     N/M              
                                                                   
  Total North America Revenue   (3)%     0%     (3)%                 (3)%     0%     (3)%              
                                                                   
  International:                                                              
    Risk Management Solutions:                                                            
    Traditional     9%     (10)%     19%     83% 63%   81% 65%   8%     (14)%     22%     84% 63%   80% 63%
    VAPs     (11)%     (11)%     0%     15% 11%   18% 14%   (16)%     (15)%     (1)%     15% 11%   19% 15%
    Supply Management Solutions   62%     (22)%     84%     2% 1%   1% 1%   13%     (22)%     35%     1% 1%   1% 1%
    Total Risk Management Solutions   6%     (10)%     16%       75%     80%   3%     (15)%     18%       75%     79%
    Sales & Marketing Solutions:                                                            
    Traditional     N/M     N/M     N/M     58% 14%   44% 8%   55%     (30)%     85%     50% 12%   41% 8%
    VAPs     6%     (1)%     7%     42% 10%   56% 11%   8%     (1)%     9%     50% 12%   59% 12%
    Total Sales & Marketing Solutions   46%     (8)%     54%       24%     19%   27%     (10)%     37%       24%     20%
    Internet Solutions     (19)%     (17)%     (2)%       1%     1%   (22)%     (22)%     (0)%       1%     1%
    Core Revenue     13%     (11)%     24%                 8%     (14)%     22%              
    Divested Business     N/M     N/M     N/M                 (39)%     (9)%     (30)%              
                                                                   
  Total International Revenue   0%     (10)%     10%                 1%     (14)%     15%              
                                                                   
  Total Corporation:                                                              
    Risk Management Solutions:                                                            
    Traditional     0%     (2)%     2%     75% 50%   76% 50%   1%     (3)%     4%     76% 50%   75% 49%
    VAPs     (2)%     (3)%     1%     19% 13%   20% 13%   (7)%     (4)%     (3)%     19% 13%   21% 13%
    Supply Management Solutions   17%     0%     17%     6% 3%   4% 3%   11%     (1)%     12%     5% 3%   4% 3%
    Total Risk Management Solutions   0%     (3)%     3%       66%     66%   (0)%     (3)%     3%       66%     65%
    Sales & Marketing Solutions:                                                            
    Traditional     8%     (1)%     9%     47% 13%   45% 12%   (4)%     (3)%     (1)%     41% 11%   41% 11%
    VAPs     (3)%     0%     (3)%     53% 14%   55% 14%   (2)%     0%     (2)%     59% 16%   59% 16%
    Total Sales & Marketing Solutions   2%     0%     2%       27%     26%   (3)%     (1)%     (2)%       27%     27%
    Internet Solutions     (9)%     (1)%     (8)%       7%     8%   (3)%     (1)%     (2)%       7%     8%
    Core Revenue     0%     (2)%     2%                 (1)%     (2)%     1%              
    Divested Business     N/M     N/M     N/M                 (39)%     (9)%     (30)%              
                                                                   
  Total Revenue     (3)%     (2)%     (1)%                 (2)%     (3)%     1%              
                                                                   
                                                                   
                                                                   
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful

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

The Dun & Bradstreet Corporation                                 Schedule 6
Supplemental Revenue Data (unaudited)                                          
                                                 
        Quarter Ended
  % of Product Line   Sep 30, 2009   Jun 30, 2009   Mar 31, 2009   Dec 31, 2008   Sep 30, 2008   Jun 30, 2008   Mar 31, 2008
  North America Risk Management Solutions                                            
    Subscription 1     64%     63%     58%       53%     52%     49%     45%
    Non-Subscription 1     36%     37%     42%       47%     48%     51%     55%
                                                 
  North America Risk Management Solutions                                            
    DNBi 2     56%     54%     51%       45%     43%     38%     33%
    Non-DNBi 2     44%     46%     49%       55%     57%     62%     67%
                                                 
                                                 
        Year-to-Date September 30, 2009     Year-to-Date September 30, 2008     Full Year December 31, 2008
                                                 
        Amounts                 Amounts                 Amounts    
  % of Core International Revenue   in millions     % of Core           in millions     % of Core           in millions   % of Core
  International:                                            
    Europe and Other International Markets (excluding Asia Pacific) $ 152.4     61%           $ 172.0     74%           $ 230.7   73%
    Asia Pacific     96.7     39%             59.5     26%             83.7   27%
                                                 
  Core Revenue   $ 249.1                 $ 231.5                 $ 314.4    
                                                 
                                                 
Notes:                                            
                                                 
1 We define Subscription and Non-Subscription revenue as follows:
 

- Subscription revenue represents contracts that allow customers unlimited use within predefined ranges, subject to certain conditions. In these instances, we recognize revenue ratably over the term of the contract, which is generally one year.

  - Non-Subscription revenue represents all other revenue streams.
                                                 
2 We define DNBi and Non-DNBi revenue as follows:
 

- DNBi, is our interactive, customizable online application that offers our customers real time access to our most complete and up-to-date global DUNSRight information, comprehensive monitoring and portfolio analysis

  - Non-DNBi revenue represents all other revenue streams.                                  
                                                 
                                                 

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

         

SOURCE: D&B

For D&B
Media:
Ana Cano, 212-367-6920
ana.cano@eurorscg.com
or
Investors/Analysts:
Kathy Guinnessey, 973-921-5892
guinnesseyk@dnb.com

Copyright Business Wire 2009