D&B Announces Final 2003 First Quarter Results.Business Editors SHORT HILLS, N.J.--(BUSINESS WIRE)--April 21, 2003 D&B (NYSE NYSE See: New York Stock Exchange : DNB DNB Dictionary of National Biography DNB Drum N Bass (music) DNB De Nederlandsche Bank DNB Dun & Bradstreet (stock symbol) DNB Den Norske Bank DNB David Nelson Band ): -- EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Meets Revised First Call Consensus of 51 Cents; 48 Cents After Net Charges -- Confirms Previous 2003 EPS Guidance on Lowered Revenue Outlook D&B (NYSE: DNB), the leading provider of global business information and technology solutions, today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter ended March 31, 2003, of 51 cents, up 19 percent from 43 cents in the prior year quarter, before previously-announced net charges totaling 3 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, D&B reported diluted earnings per share of 48 cents, up 12 percent. The net charges are described below. See Schedule 1 for results as reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP"), Schedule 2 for results before non-core gains and charges, and Schedule 3 for a reconciliation of GAAP results to results before non-core gains and charges. Also see below for a discussion of the Company's use of non-GAAP financial measures. "As we said when we announced our preliminary results on April 9th, we are pleased that our flexible business model and focused implementation of our Blueprint blueprint, white-on-blue photographic print, commonly of a working drawing used during building or manufacturing. The plan is first drawn to scale on a special paper or tracing cloth through which light can penetrate. for Growth strategy enabled us to deliver strong EPS growth," said Allan Allan can refer to:
p. p. 1. strong p. p. os> of Lose. Noun 1. Loren - Italian film actress (born in 1934) Sofia Scicolone, Sophia Loren , chairman and chief executive officer of D&B. "Our North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. segment's profitability improved slightly, despite a revenue decline and dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. from our acquisition of Hoover's Hoover's, Inc. is a business research company that has provided information on U.S. and foreign companies and industries since 1990. Since 1993, the company has made its information available on its website www.hoovers.com. . In addition, our International segment reported a profitable first quarter for the first time in over 6 years. These profitability improvements are a testament to the success of our financial flexibility initiatives." D&B's First Quarter 2003 Results Total revenue for the quarter was $314.7 million, flat compared with the prior year quarter, including 4 percentage points of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact from foreign exchange rate movements and 2 percentage points of favorable impact from the Company's acquisitions of Data House in the fourth quarter of 2002 and Hoover's, Inc. in March 2003. These revenue results reflect the following by product line: -- Risk Management Solutions revenue of $224.1 million, up $9.0 million or 4 percent (including 5 percentage points of favorable impact from foreign exchange, and 2 percentage points of favorable impact from the Data House acquisition); -- Sales & Marketing Solutions revenue of $80.6 million, down $11.6 million or 13 percent (including 2 percentage points of favorable impact from foreign exchange); -- Supply Management Solutions revenue of $7.5 million, up $0.3 million or 6 percent (including 4 percentage points of favorable impact from foreign exchange); and -- E-Business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. Solutions revenue of $2.5 million, representing the results of Hoover's, Inc. since March 3, 2003. This E-Business Solutions product line is being reported separately for the first time this quarter. "We are disappointed with our revenue results, which reflect cautious customer investment behavior in the current economic environment," said Loren. D&B continued to make progress in migrating its product delivery to the Web, a more efficient delivery channel. In the first quarter of 2003, D&B delivered 68 percent of its revenue over the Web, up from 65 percent in the 2002 fourth quarter, and from 42 percent in the first quarter of 2002. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter was $55.6 million, down $3.4 million or 6 percent from the year-ago period. Operating income grew in each of the Company's geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. segments, and Corporate and other expense declined, all reflecting the benefits of the Company's ongoing financial flexibility initiatives. However, these improvements were offset by a previously-announced $10.9 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , described below. Before this charge, operating income was up $7.5 million or 13 percent. D&B had $3.1 million of non-operating income - net for the first quarter of 2003, compared with $4.6 million of non-operating expense - net in the prior-year period. The 2003 amount included a previously-announced insurance recovery of $7.0 million, described below. Before this non-core gain, D&B would have had Non-operating expense - net of $3.9 million, an improvement of 14 percent over the prior-year period, primarily due to lower interest expense. Net income for the quarter was $37.1 million, up $3.6 million or 11 percent from the prior-year period, including the restructuring charge and insurance recovery. Before these non-core gains and charges, net income was up $5.9 million or 18 percent. Cash provided by operating activities during the quarter was $60.7 million, including $7.0 million from the insurance recovery, compared to $7.5 million in the prior year quarter. This improved result includes the benefit of working capital management, another area of focus of the Company's financial flexibility initiatives. The Company ended the quarter with $149.3 million of cash and cash equivalents. First Quarter 2003 Segment Results North America North America's first-quarter revenue was $226.5 million, down $13.2 million or 6 percent from $239.7 million in the prior year period. This decline is primarily due to lower Sales & Marketing Solutions revenue reflecting the effect of cautious customer investment behavior in the current economic environment. North America's revenue results include: -- $151.7 million from Risk Management Solutions, down $3.2 million or 2 percent; -- $66.9 million from Sales & Marketing Solutions, down $12.1 million or 15 percent; -- $5.4 million from Supply Management Solutions, down $0.4 million or 6 percent; and -- a $2.5 million contribution from E-Business Solutions, which represents the results of Hoover's Inc. since its acquisition on March 3, 2003. North America's operating income for the quarter was $80.3 million, compared to $80.2 million in the prior year quarter. Profitability in the quarter was impacted by an increase in non-cash pension costs resulting from previously-disclosed changes in the U.S. Retirement Plan's actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin assumptions, and $1.2 million of dilution from the Hoover's acquisition, offset by benefits from the Company's financial flexibility initiatives. International D&B began reporting its Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). segment (including Europe,
Middle East and Africa) and its Asia Pacific / Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. segment as
a single, new International segment effective January January: see month. 1, 2003.The International segment's first-quarter revenue was $88.2 million, up $13.2 million from $75.0 million in the prior year quarter. The 18 percent increase in International revenue was primarily due to the favorable effect of foreign exchange rate movements, which contributed 17 percentage points of growth. Before the effect of foreign exchange, revenue grew 1 percent, including the acquisition of Data House, which contributed $5.4 million or 6 percentage points of growth. These International revenue results reflect: -- $72.4 million from Risk Management Solutions, up $12.2 million or 20 percent, including 17 percentage points of favorable impact from foreign exchange and 8 percentage points of growth from the acquisition of Data House; -- $13.7 million from Sales & Marketing Solutions, up $0.5 million or 4 percent, including 14 percentage points of favorable impact from foreign exchange, and; -- $2.1 million from Supply Management Solutions, up $0.7 million or 55 percent, including 25 percentage points of favorable impact from foreign exchange. The International segment's operating income for the quarter was $1.3 million, compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $4.0 million in the prior year quarter. This improvement in profitability was primarily due to the lower expense base associated with the Company's financial flexibility program. Operating income growth also benefited from the favorable impact of foreign exchange. See Schedule 4 for revenue by product line for each geographic segment and other supplemental information. Non-Core Gains and Charges In its January 13, 2003 press release, the Company announced that it had received cash of $7.0 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ($4.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. or 6 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) in settlement of its insurance claim to recover losses related to the events of September September: see month. 11, 2001. In the first quarter of 2003, this non-core gain was recorded within Non-operating income - net. On January 13, 2003, the Company also announced a series of financial flexibility initiatives which is expected to initially reduce D&B's 2003 expense base by $75 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, before any restructuring charges and transition costs, and before any reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation of spending. In the announcement, D&B said it expected this series of actions to result in restructuring charges totaling $16 million, primarily for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. costs, which would be recognized during 2003. In accordance with a new accounting rule, SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 146, "Accounting for Costs Associated with Exit or Disposal Activities," restructuring charges must now be recognized when the liability is incurred, rather than at the date the company commits to an exit plan. The adoption of this rule will result in the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses being recognized over a period of time, rather than at one time. In the first quarter of 2003, the Company recorded $10.9 million pre-tax ($6.6 million after-tax or 9 cents per diluted share) of the expected $16 million charge within Operating income as Corporate and other expense. D&B's restructuring charges may be viewed as recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. as they are incurred as part of each phase of its financial flexibility initiatives. However, in addition to reporting GAAP results, the Company reports results before restructuring charges and other non-core gains and charges because it does not consider these charges and other items to reflect its underlying business performance. See Use of Non-GAAP Financial Measures, below. 2003 Outlook Earnings Per Share and Operating Cash Flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. The Company is confirming its previous full-year diluted earnings per share guidance of between $2.25 and $2.29 on a GAAP basis. This range of EPS represents between 20 and 22 percent growth, compared to $1.87 reported on a GAAP basis for 2002. This EPS guidance includes the previously-announced 8 cent per share dilutive impact of the Hoover's acquisition, and certain non-core gains and charges totaling a net charge of 25 cents per share as described below. Before non-core gains and charges, D&B expects full-year diluted earnings per share to be between $2.50 and $2.54, representing between 16 and 18 percent growth, compared to $2.15 of diluted earnings per share before a restructuring charge of 28 cents per share in 2002. This range of guidance for 2003 is also unchanged from what was communicated previously. D&B expects to record in 2003 the following non-core gains and charges which were announced in the company's January 13th, 2003, press release: -- an insurance recovery of $7 million pre-tax ($4.3 million after-tax or 6 cents per share), recognized in the first quarter; -- restructuring charges totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $16 million pre-tax ($11 million after tax, or 14 cents per share), of which $10.9 million pre-tax ($6.6 million after-tax or 9 cents per share) was recognized in the first quarter, and the balance is expected to be recognized primarily in the second quarter; and -- a loss on monetization Monetization The securitization of the gross revenues of a contract. of real estate of approximately $13 million pre-tax ($13 million after-tax or 17 cents per share), expected in the third quarter. "As a result of the financial flexibility program we initiated over 2 years ago, we now have a significantly lower operating cost base," said Loren. "We manage our business by continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. seeking opportunities to reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of our spending to activities that drive revenue growth while, at the same time, improving our profitability. Our business is not capital-intensive Capital-intensive Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive. , and it generates strong operating cash flows. As a result," Loren concluded, "we believe we can continue to deliver solid earnings and operating cash flow growth in 2003, despite the current lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" business environment." The Company expects operating cash flow for 2003 to be between $232 million and $272 million, before any payments to the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. in settlement of tax and legal matters described in D&B's 2002 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Because D&B is unable to predict the amount or timing of any such future payments, the Company is unable to provide an outlook for 2003 operating cash flow on a GAAP basis. Operating cash flow was $213.1 million in 2002. Revenue D&B believes full-year core revenue growth will be in the range of 1 to 4 percent before the effects of foreign exchange. D&B previously expected core revenue growth in the range of 4 to 5 percent before these effects. Because D&B is unable to predict the future movements of foreign exchange rates or potential business model changes, the Company is unable to provide an outlook for 2003 revenue on a GAAP basis. "We believe that, with superb leadership by our team members and the investments we are making to drive growth in our business, we will achieve our aspiration aspiration /as·pi·ra·tion/ (as?pi-ra´shun) 1. the drawing of a foreign substance, such as the gastric contents, into the respiratory tract during inhalation. 2. to become a growth company," said Loren. "However, we expect it will take some time before customer investment behavior changes Behavior change refers to any transformation or modification of human behavior. Such changes can occur intentionally, through behavior modification, without intention, or change rapidly in situations of mental illness. in a meaningful way. As a result, we are lowering our revenue growth outlook for 2003 to reflect a continuation continuation - continuation passing style of current business conditions," Loren said. Management will provide further information about its growth plans for 2003 and beyond at an investor meeting scheduled for May 16, 2003. Details about the meeting will be provided in the coming weeks. Other Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. Further with respect to guidance for full year 2003, the Company expects that: -- It will deliver 70+ percent of its revenue over the Web by the end of the year, compared with 65 percent at the end of 2002; -- Capital expenditures and capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software costs will be between $40 and $50 million, compared with $53.5 million in 2002; and -- Depreciation and amortization expense will be between $75 and $80 million, compared with $84.2 million in 2002. This guidance is also unchanged from previous expectations. Use of Non-GAAP Financial Measures D&B reports non-GAAP financial measures in this press release and the schedules attached. Specifically, D&B reports core revenue, revenue growth before the effects of foreign exchange, and operating income, net income and diluted earnings per share before non-core gains and charges. Please see D&B's Form 10-K for the fiscal year ended December December: see month. 31, 2002 under the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Item 1. Business - How We Evaluate Our Performance" for a discussion of how the Company defines these measures, why it uses them and why it believes they provide useful information to investors. First-Quarter Teleconference D&B will review its first-quarter financial results in a conference call with the investment community on Tuesday Tuesday: see week. , April 22, 2003, at 10 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 Investor relations The process by which the corporation communicates with its investors. Web site at http://investor.dnb.com. ************** D&B (NYSE: DNB) provides the information, tools and expertise to help customers Decide with Confidence. D&B enables customers quick access to objective, global information whenever and wherever they need it. Customers use D&B Risk Management Solutions to manage credit exposure, D&B Sales & Marketing Solutions to find profitable customers and D&B Supply Management Solutions to manage suppliers efficiently. D&B's E-Business Solutions are also used to provide Web-based access to trusted business information for traditional customers as well as new small business and other non-traditional customers. Over 90 percent of the Business Week Global 1000 rely on D&B as a trusted partner to make confident business decisions. For more information, please visit www.dnb.com. ************** Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements The section entitled "2003 Outlook" of this press release contains projections of future results and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of trends, risks and uncertainties and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The following important factors could cause actual results to differ materially from those projected in such forward-looking statements. Demand for D&B's products is subject to intense competition, changes in customer preferences and economic conditions which impact customer behavior. The Company's results are also dependent upon its continued ability to: -- develop new products; -- invest in its database and maintain its reputation for providing reliable data; -- develop and maintain a successful Web-based business model; -- reallocate expense to achieve growth through its financial flexibility program; -- manage employee satisfaction and maintain its global expertise as it implements its financial flexibility program; and -- protect against damage or interruptions affecting its database or its data centers. The Company is also subject to the effects of foreign economies, exchange rate fluctuations and U.S. and foreign legislative or regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Its results are also dependent upon the availability of data from its database. Developments in any of these areas could cause results to differ materially from results that have been or may be projected. In addition, the Company's projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. for operating cash flow in 2003 is dependant upon Adj. 1. dependant upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, contingent upon, dependant on, dependent on, dependent upon, depending on, contingent , among other things, the Company's ability to generate sales, the Company's collection processes, customer payment patterns and the amount and timing of payments related to tax matters and legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. involving the Company as more fully described in the Company's filings with the SEC. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2002, including the section entitled "Item 7. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations ("MD&A")," and the subsection subsection Noun any of the smaller parts into which a section may be divided Noun 1. subsection - a section of a section; a part of a part; i.e. entitled "Trends, Risks and Uncertainties" in the MD&A. Copies of the Company's Annual Report on Form 10-K are available on its web site at www.dnb.com and on the SEC's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . D&B cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements.
The Dun & Bradstreet Corporation
Consolidated Statement of Operations (unaudited) - As Reported
----------------------------------------------------------------------
Quarter Ended Effects of
March 31, AFX Foreign BFX
----------------
% Change Exchange % Change
Amounts in millions, Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
except per share
data 2003 2002
----------------------------------------------------------------------
Revenue:
North America $226.5 $239.7 -6% 0% -6%
International 88.2 74.8 18% 17% 1%
-------------------------------------
Core Revenue 314.7 314.5 0% 4% -4%
Divested Businesses
(1) - .2 -100% 0% -100%
-------------------------------------
Total Revenue $314.7 $314.7 0% 4% -4%
------------------------------------- ----------------------
Operating Income
(Loss):
North America $80.3 $80.2 0%
International 1.3 (4.0) -
----------------
Total Divisions 81.6 76.2 7%
Corporate and Other
(2) (26.0) (17.2) -51%
-------------------------------------
Operating Income 55.6 59.0 -6%
-------------------------------------
Interest Income .8 .7 14%
Interest Expense (4.5) (5.0) 10%
Other Income
(Expense) - Net
(3) 6.8 (.3) -
-------------------------------------
Non-Operating Income
(Expense) - Net 3.1 (4.6) -
-------------------------------------
Income before
Provision for Income
Taxes 58.7 54.4 8%
Provision for Income
Taxes 21.6 20.4 -6%
Equity in Net Losses
of Affiliates - (.5) 100%
-------------------------------------
Net Income (4) $37.1 $33.5 11%
-------------------------------------
Basic Earnings Per
Share of Common
Stock $.50 $.45 11%
-------------------------------------
Diluted Earnings Per
Share of Common
Stock (5) $.48 $.43 12%
-------------------------------------
-------------------------------------
Weighted Average Number of
Shares Outstanding:
Basic 74.4 75.0 1%
-------------------------------------
Diluted 76.7 77.9 2%
------------------------------------------------
See Schedule 3 (Notes to Schedules), which is an integral part of the
consolidated statement of operations.
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
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
Consolidated Statement of Operations (unaudited) - Before Non-Core
Gains and Charges
Quarter Ended Effects of
March 31, AFX Foreign BFX
----------------
% Change Exchange % Change
Amounts in Fav/(Unfav) Fav/(Unfav) Fav/(Unfav)
millions, except
per share data 2003 2002
----------------------------------------------------------------------
Revenue:
North America $226.5 $239.7 -6% 0% -6%
International 88.2 74.8 18% 17% 1%
-----------------------------------
Core Revenue 314.7 314.5 0% 4% -4%
Divested Businesses
(1) - .2 -100% 0% -100%
-----------------------------------
Total Revenue $314.7 $314.7 0% 4% -4%
----------------------------------- -----------------------
Operating Income
(Loss):
North America $80.3 $80.2 0%
International 1.3 (4.0) -
----------------
Total Divisions 81.6 76.2 7%
Corporate and Other
(2) (15.1) (17.2) 12%
-----------------------------------
Operating Income 66.5 59.0 13%
-----------------------------------
Interest Income .8 .7 14%
Interest Expense (4.5) (5.0) 10%
Other Income
(Expense) - Net
(3) (0.2) (0.3) 33%
-----------------------------------
Non-Operating
Income (Expense) -
Net (3.9) (4.6) 14%
-----------------------------------
Income before
Provision for
Income Taxes 62.6 54.4 15%
Provision for
Income Taxes 23.2 20.4 -14%
Equity in Net
Losses of
Affiliates - (.5) 100%
-----------------------------------
Net Income (4) $39.4 $33.5 18%
-----------------------------------
Basic Earnings Per
Share of Common
Stock $.53 $.45 18%
-----------------------------------
Diluted Earnings
Per Share of
Common Stock (5) $.51 $.43 19%
-----------------------------------
-----------------------------------
Weighted Average Number of
Shares Outstanding:
Basic 74.4 75.0 1%
-----------------------------------
Diluted 76.7 77.9 2%
-----------------------------------------------
See Schedule 3 (Notes to Schedules), which is an integral part of the
consolidated statement of operations.
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
Non-Core Gains and Charges - For internal management purposes, we
treat certain gains and charges which are included in "Corporate and
Other" and "Other Income (Expense) - Net" as non-core gains and
charges. These pre-tax non-core gains and charges are summarized in
Schedule 3. We exclude non-core gains and charges when evaluating our
financial performance because we do not consider these items to
reflect our underlying business performance.
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
Notes to Schedules 1 and 2 (unaudited)
(1) 2002 includes revenues from the Company's Korean business, which
was divested in the quarter ended December 31, 2002.
(2) The following table reconciles between Corporate and Other
expenses included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
--------------
% Change
Amounts in millions 2003 2002 Fav/(Unfav)
-------------------------------------------------------------------
Corporate and Other - As Reported
(Schedule 1) $(26.0)$(17.2) -51%
Restructuring Charge (10.9) - N/M
--------------
Corporate and Other - Before Non-Core
Gains and Charges (Schedule 2) $(15.1)$(17.2) 12%
-------------------------
In 2003, the Company recorded, within Corporate and Other, a charge
for restructuring related to the fourth phase of its financial
flexibility program.
(3) The following table reconciles between the Other Income (Expense)-
Net included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
--------------
% Change
Amounts in millions 2003 2002 Fav/(Unfav)
-------------------------------------------------------------------
Other Income (Expense)-Net - As Reported
(Schedule 1) $6.8 $(.3) -
Insurance Recovery related to World Trade
Center Tragedy 7.0 - N/M
--------------
Other Income (Expense)-Net - Before Non-
Core Gains and Charges (Schedule 2) $(.2) $(.3) 33%
-------------------------
(4) The following table reconciles between the Net Income included in
Schedule 1 and Schedule 2:
Quarter Ended
March 31,
--------------
% Change
Amounts in millions 2003 2002 Fav/(Unfav)
-------------------------------------------------------------------
Net Income - As Reported (Schedule 1) $37.1 $33.5 11%
Restructuring Charge (6.6) - N/M
Insurance Recovery related to World Trade
Center Tragedy 4.3 - N/M
--------------
Net Income - Before Non-Core Gains and
Charges (Schedule 2) $39.4 $33.5 18%
-------------------------
(5) The following table reconciles between the Diluted Earnings Per
Share included in Schedule 1 and Schedule 2:
Quarter Ended
March 31,
--------------
% Change
2003 2002 Fav/(Unfav)
-------------------------------------------------------------------
Diluted EPS - As Reported (Schedule 1) $.48 $.43 12%
Restructuring Charge (.09) - N/M
Insurance Recovery related to World Trade
Center Tragedy .06 - N/M
--------------
Diluted EPS - Before Non-Core Gains and
Charges (Schedule 2) $.51 $.43 19%
-------------------------
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
Supplemental Financial Data
(unaudited)
Quarter Ended Effects of
March 31, AFX Foreign BFX
--------------
% Change Exchange % Change
Amounts in millions 2003 2002 Fav/(Unfav)Fav/(Unfav)Fav/(Unfav)
----------------------------------------------------------------------
Product Line Revenue:
North America:
Risk Management
Solutions $151.7 $154.9 -2% 0% -2%
Sales & Marketing
Solutions 66.9 79.0 -15% 0% -15%
Supply Management
Solutions 5.4 5.8 -6% 0% -6%
E-Business Solutions 2.5 - - - -
--------------
Core Revenue 226.5 239.7 -6% 0% -6%
Divested Businesses - - - - -
--------------
Total North America 226.5 239.7 -6% 0% -6%
--------------
International:
Risk Management
Solutions 72.4 60.2 20% 17% 3%
Sales & Marketing
Solutions 13.7 13.2 4% 14% -10%
Supply Management
Solutions 2.1 1.4 55% 25% 30%
--------------
Core Revenue 88.2 74.8 18% 17% 1%
Divested Businesses - .2 -100% 0% -100%
--------------
Total International 88.2 75.0 18% 17% 1%
--------------
Total Corporation:
Risk Management
Solutions 224.1 215.1 4% 5% -1%
Sales & Marketing
Solutions 80.6 92.2 -13% 2% -15%
Supply Management
Solutions 7.5 7.2 6% 4% 2%
E-Business Solutions 2.5 - - - -
--------------
Core Revenue 314.7 314.5 0% 4% -4%
Divested Businesses - .2 -100% 0% -100%
--------------
Total Revenue $314.7 $314.7 0% 4% -4%
-------------- ----------------------
Geographic Revenue:
United States $218.9 $233.3 -6%
International 95.8 81.4 18%
--------------
Total Geographic
Revenue $314.7 $314.7 0%
--------------
Operating Costs:
Operating Expenses $106.1 $108.8 3%
Selling and
Administrative
Expenses 125.9 127.4 1%
Depreciation and
Amortization 16.2 19.5 17%
Restructuring Expense 10.9 - -
--------------
Total Operating Costs $259.1 $255.7 -1%
--------------
Capital Expenditures $3.7 $3.3 -12%
--------------
Additions to Computer
Software & Other
Intangibles $2.2 $6.0 63%
-------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 30,
2003 2002 2002 2002 2002
----------------------------------------
Net Debt Position:
Cash and Cash Equivalents $149.3 $191.9 $136.0 $147.1 $89.4
Notes Payable (.1) (.1) (.1) (.1) (35.7)
Long-Term Debt (299.8) (299.9) (299.9) (299.7) (299.6)
----------------------------------------
Net Debt $(150.6)$(108.1)$(164.0)$(152.7)$(245.9)
----------------------------------------
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
This financial information should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and related notes of The Dun & Bradstreet Brad·street , Anne Dudley 1612-1672. English-born colonial poet who wrote several collections of verse, including The Tenth Muse Lately Sprung Up in America (1650). Corporation contained in filings with the Securities and Exchange Commission. |
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