D&B Announces Second Quarter 2006 Results, Raises EPS Guidance, Announces New Share Repurchase Program.SHORT HILLS, N.J. -- 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 Up 15 Percent Before Non-Core Gains and Charges; Up 18 Percent on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Basis --Core and Total Revenue Up 5 Percent Before Foreign Exchange; Up 4 Percent After Foreign Exchange --Raises 2006 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. Guidance by 3 Cents to Range of $3.86 to $3.96 --Announces New One-Year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants $200 Million Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Program D&B (NYSE: DNB), the leading provider of global business information, tools and business insight, today reported results for the second quarter ended June June: see month. 30, 2006. "We are pleased with our results in the second quarter, which represents another in a string of quarters in which we've we've Contraction of we have. we've have consistently delivered strong performance," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Alesio, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of D&B. "Looking ahead, we believe that our unique competitive advantages and ongoing investments in the business will allow us to continue to drive profitable revenue growth and deliver increased value to our shareholders." Second Quarter 2006 Results 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 before non-core gains and charges for the quarter ended June 30, 2006, were $0.84, up 15 percent from $0.73 in the prior year quarter. On a GAAP basis, diluted earnings per share were $0.79, up 18 percent from $0.67 in the prior year quarter. See attached Schedule 3 for a reconciliation of 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 and total revenue for the quarter was $367.4 million, up 5 percent before the effect of foreign exchange (up 4 percent after the effect of foreign exchange) from the prior year quarter. Core and total revenue results for the second quarter of 2006 reflect the following: --Risk Management Solutions revenue of $248.9 million, up 2 percent before the effect of foreign exchange (up less than 1 percent after the effect of foreign exchange); --Sales & Marketing Solutions revenue of $88.2 million, up 10 percent (both before and after the effect of foreign exchange); --E-Business Solutions revenue of $21.5 million, up 29 percent (both before and after the effect of foreign exchange); and --Supply Management Solutions revenue of $8.8 million, up 33 percent before the effect of foreign exchange (up 32 percent after the effect of foreign exchange). See attached Schedules 4 and 5 for additional detail. 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. before non-core gains and charges was $89.2 million, up 7 percent from the prior year quarter. On a GAAP basis, operating income was $85.6 million, up 12 percent from the prior year quarter. During the quarter, the Company also incurred transition costs of $4.8 million compared with $8.1 million in the prior year quarter. See attached Schedule 3 for additional detail. Net income before non-core gains and charges was $55.2 million for the quarter, up 8 percent from $51.4 million in the prior year quarter. On a GAAP basis, net income was $52.2 million, up 11 percent from $47.1 million in the prior year quarter. See attached Schedule 3 for additional detail. Free cash flow for the first six months of 2006, excluding the impact of legacy tax matters, was $162.5 million, up 27 percent from the first six months of 2005. Free cash flow now includes the effect of our adoption of expensing stock options pursuant to 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. 123R, which resulted in a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of $25.1 million from Cash Flow from Operating Activities to Cash Flow from Financing Activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. in the first six months of 2006. The Company defines free cash flow as net cash provided by operating activities less capital expenditures and additions to computer software and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . On a GAAP basis, net cash provided by operating activities for the first six months of 2006 was $137.9 million, up 14 percent from the prior year period. Net cash provided by operating activities for the first six months of 2006, excluding $45.6 million of legacy tax matters was $183.5 million, up 34 percent from the first six months of 2005, which excluded $15.8 million of legacy tax matters. See attached Schedule 4 for additional detail. Share repurchases during the quarter, under the Company's current two-year program commenced in the first quarter of 2005 totaled $119.3 million, with $411.2 million repurchased since inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. of this two-year $500 million program. This amount is in addition to the Company's existing repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program to offset the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of shares issued under employee benefit plans, which totaled $154.8 million in the second quarter of 2006. The Company ended the quarter with $117.1 million of cash. Second Quarter 2006 Segment Results United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Core and total revenue for the quarter was $271.2 million, up 7 percent from $253.7 million in the prior year quarter. U.S. core and total revenue results for the second quarter of 2006 reflect the following: --Risk Management Solutions revenue of $169.7 million, up 3 percent; --Sales & Marketing Solutions revenue of $73.7 million, up 10 percent; --E-Business Solutions revenue of $20.2 million, up 25 percent; and --Supply Management Solutions revenue of $7.6 million, up 38 percent. See attached Schedules 4 and 5 for additional detail. Operating income for the quarter was $87.8 million, up 7 percent from the prior year quarter. This increase was primarily due to improved revenue in the U.S. segment and benefits from the Company's Financial Flexibility program, partially offset by higher benefit costs and costs associated with our revenue generating investments. International Core and total revenue for the quarter was $96.2 million, up 1 percent before the effect of foreign exchange (down 2 percent after the effect of foreign exchange from $98.0 million in the prior year quarter). During the second quarter, the Italian real estate data business had a negative five point impact primarily due to retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a price increases in the second quarter of 2005 and continuing legislative changes. All of this impact is reflected in the Risk Management Solutions results. International core and total revenue results for the second quarter of 2006 reflect the following: --Risk Management Solutions revenue of $79.2 million, down 1 percent before the effect of foreign exchange (down 4 percent after the effect of foreign exchange); --Sales & Marketing Solutions revenue of $14.5 million, up 9 percent before the effect of foreign exchange (up 6 percent after the effect of foreign exchange); --E-Business Solutions revenue of $1.3 million; and --Supply Management Solutions revenue of $1.2 million, up 6 percent before the effect of foreign exchange (up 1 percent after the effect of foreign exchange). See attached Schedules 4 and 5 for additional detail. Operating income for the quarter was $23.7 million, up $2.4 million from $21.3 million in the prior year quarter. This increase was primarily due to improved revenue in the International segment and benefits from the Company's Financial Flexibility program, partially offset by investments in our DUNSRight(TM) quality process. On a GAAP basis, operating income was $23.7 million, up $3.2 million from $20.5 million in the prior year quarter. New $200 Million One-Year Share Repurchase Program; And New Four-Year Five Million Share Repurchase Program to Offset 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. The Company announced today that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a new $200 million one-year share repurchase program. The new $200 million program is in addition to the Company's existing two-year $500 million program commenced in the first quarter of 2005. The new program will commence upon completion of the current $500 million program, which has $88.8 million remaining. The Company anticipates that the new $200 million program will be completed within twelve months after its initiation initiation, the transition and attendant ceremonies, such as ordeals and rites, involved in passing from one state or status to another, often from childhood to adulthood. It was among the most important social institutions of early humans. . The Company also announced today that its Board of Directors has authorized a new four-year five million share repurchase program to offset dilution. The three-year six million share repurchase program we currently have in place to offset dilution is set to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. in September September: see month. , 2006. Non-Core Gains and Charges During the second quarter of 2006, the Company recorded a net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , non-core charge of $3.6 million related to its Financial Flexibility initiatives and a tax charge of $0.8 million related to the legacy tax item referred to as "Royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. Expense Deductions 1993-1997" in the company's SEC filings. During the second quarter of 2005, the Company recorded pre-tax, non-core charges of $6.5 million related to its Financial Flexibility initiatives and charges totaling $1.9 million related to a dispute on the sale of the Company's French business. These charges were partially offset by pre-tax, non-core gains of $3.5 million related to the sale of a 5 percent investment in a South African company and $0.8 million related to lower than expected costs related to the sale of the Company's Iberian Iberian Any member of a prehistoric people of southern and eastern Spain. They were largely untouched by the migrations of Celtic peoples to northern and central Spain beginning in the 8th century BC. Culturally they were influenced by Greek and Phoenician trading colonies. business. D&B's restructuring charges 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. 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 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 are not a component of its ongoing income or expenses and may have a disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por positive or negative impact on the results of its
ongoing underlying business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . For additional information, see
the section titled "Use of Non-GAAP Financial Measures" below.See attached Schedule 3 for additional detail. 2006 Outlook The Company raised its EPS guidance, lowered its tax guidance range, and confirmed guidance for all 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. . More specifically, the Company's full year guidance for 2006, which includes the expensing of stock options, is now: --Core revenue growth of 6 percent to 8 percent, before the effect of foreign exchange, all of which will be organic; --Operating income growth before non-core gains and charges of 8 percent to 10 percent; --Diluted EPS of $3.86 to $3.96 before non-core gains and charges, representing 11 percent to 13 percent growth; --Free cash flow of $290 million to $305 million. As a reminder, the Company's free cash flow outlook excludes the impact of the Company's legacy tax matters; and --Tax rate before non-core gains and charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 37 to 38 percent. D&B does not provide revenue growth guidance on a GAAP basis because D&B is unable to predict, with reasonable certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. , the future movement of foreign exchange rates. Additionally, the Company does not provide EPS guidance, operating income growth, free cash flow or tax rate guidance on a GAAP basis because the Company is unable to predict, with reasonable certainty, 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 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 GAAP. Non-core gains and charges are uncertain and will depend on several factors, including industry conditions. The impact of these non-core gains and charges could be material to D&B's results computed in accordance with GAAP. See attached Schedule 3 for additional detail. Use of Non-GAAP Financial Measures D&B reports non-GAAP financial measures in this press release and the schedules attached. D&B reports core revenue after the effects of foreign exchange and core revenue growth before and after the effects of foreign exchange. Additionally, the Company reports organic revenue growth and each of operating income, operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , net income, diluted earnings per share and tax rate (defined as Provision for Income Taxes divided by Income before Provision for Income Taxes) before non-core gains and charges, free cash flow, and net debt position. See "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 - How We Manage Our Business" in the Company's most recent 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. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , as filed 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. These measures are defined in Schedule 3 attached to this earnings release. Second Quarter Teleconference As previously announced, D&B will review its second quarter financial results in a conference call with the investment community on Thursday Thursday: see week. , August 3, 2006, 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. About D&B D&B (NYSE:DNB) is the world's leading source of business information and insight, enabling companies to Decide with Confidence(R) for 165 years. D&B's global commercial database contains more than 100 million business records. The database is enhanced by D&B's proprietary DUNSRight(R) Quality Process, which transforms the enormous amount of data D&B collects daily into decision-ready insight. Through the D&B Worldwide Network - an unrivaled alliance of D&B and leading business information providers around the world - customers gain access to the world's largest and highest quality global commercial business information database. D&B partners with many of the world's largest and most successful enterprises as well as mid-size companies and entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. start-ups. Customers use D&B Risk Management Solutions(TM) to mitigate mit·i·gate v. To moderate in force or intensity. mit i·ga tion n. credit risk, increase cash flow and drive increased
profitability; D&B Sales & Marketing Solutions(TM) to increase
revenue from new and existing customers; D&B 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(TM) to convert prospects into clients faster by enabling
business professionals to research companies, executives and industries;
and D&B Supply Management Solutions(TM) to generate ongoing savings
through supplier consolidation, and to protect their businesses from
supply chain disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. and serious financial, operational and
regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. risk. 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 This press release, including, in particular, the section titled "2006 Outlook," 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. --D&B relies significantly on third parties to support critical components of its business model in a continuous and high-quality manner, including third-party data providers, strategic partners in its Worldwide network, and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. partners. --Demand for D&B's products is subject to intense competition, changes in customer preferences and, to a lesser extent, economic conditions which impact customer behavior. --The profitability of D&B's International segment depends on its ability to identify and execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on various initiatives, such as the implementation of subscription plan pricing and successfully managing its Worldwide Network, and to identify and contend with various challenges present in foreign markets, such as local competition and the availability of public records at no cost. --D&B's ability to renew large contracts, the related revenue recognition and the timing thereof may impact its results of operations from period to period. --D&B's results, including operating income, are 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. , and the adoption of new or changes in accounting policies and practices, including pronouncements by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). or other standard-setting bodies. --D&B's solutions and brand image are dependent upon the integrity of its global database and the continued availability thereof through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and by other means, as well as our ability to protect key assets, such as data center capacity. --D&B is involved in various 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. , the outcomes of which are unknown and uncertain with respect to the impact on D&B's cash flow and profitability. See the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and notes to the financial statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. included therewith there·with adv. 1. With that, this, or it. 2. In addition to that. 3. Archaic Immediately thereafter. Adv. 1. , for a more detailed description of these matters. --D&B's ability to successfully implement its 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 requires that it successfully reduce its expense base through its Financial Flexibility Program, and 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 certain of the expense base reductions into initiatives that produce desired revenue growth. --D&B's future success requires that it attract and retain qualified personnel in regions throughout the world. --D&B's ability to repurchase shares is subject to market conditions, including trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. in its stock, and its ability to repurchase securities in accordance with applicable securities laws. --D&B's ability to acquire and successfully integrate other complementary businesses, products and technologies into its existing business, without significant disruption to its existing business or to its financial results. --D&B'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 free cash flow in 2006 is dependent upon its ability to generate revenue, its collection processes, customer payment patterns, the timing and volume of stock option exercises, the amount and timing of payments related to the tax and other matters and legal proceedings in which it is involved, as referenced above and as more fully described in the Company's filings with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and notes to the financial statement included therewith. For a more detailed discussion of the trends, risks and uncertainties that may affect D&B's operating and financial results and its ability to achieve the financial objectives discussed in this press release, readers should review the Company's most recent filings with the SEC, including the Annual Report on Form 10-K and Quarterly Report 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 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 any obligation to update any forward-looking statements.
Schedule 1
The Dun & Bradstreet Corporation
Consolidated Statement of Operations (unaudited) - As Reported
-----------
Effects
Quarter Ended AFX of Foreign BFX
Amounts in millions, June 30, % Change Exchange % Change
except per share ----------------- Fav/ Fav/ Fav/
data 2006 2005 (Unfav) (Unfav) (Unfav)
--------------------- -------- -------- --------- ---------- ---------
Revenue:
U.S. $271.2 $253.7 7% 0% 7%
International 96.2 98.0 (2)% (3)% 1%
--------------------- -------- --------
Core and Total
Revenue $367.4 $351.7 4% (1)% 5%
--------------------- -------- -------- ---------- ---------
Operating Income
(Loss):
U.S. $87.8 $82.3 7%
International (1) 23.7 20.5 16%
-------- --------
Total Divisions 111.5 102.8 9%
Corporate and
Other (2) (25.9) (26.6) 3%
--------------------- -------- --------
Operating Income 85.6 76.2 12%
--------------------- -------- --------
Interest Income 1.6 3.1 (49)%
Interest Expense (4.2) (5.0) 17%
Minority Interest
Income (Loss) (0.1) (0.4) 72%
Other Income
(Expense) - Net (3) 0.4 3.4 N/M
--------------------- -------- --------
Non-Operating Income
(Expense) - Net (2.3) 1.1 N/M
--------------------- -------- --------
Income before
Provision for Income
Taxes 83.3 77.3 8%
Provision for Income
Taxes 31.2 30.2 (3)%
Equity in Net Income
(Loss) of Affiliates 0.1 - N/M
--------------------- -------- --------
Net Income (4) $52.2 $47.1 11%
--------------------- -------- --------
Basic Earnings Per
Share of Common
Stock $0.81 $0.70 16%
--------------------- -------- --------
Diluted Earnings Per
Share of Common
Stock (5) $0.79 $0.67 18%
--------------------- -------- --------
--------------------- -------- --------
Weighted Average
Number of Shares
Outstanding:
Basic 64.3 67.7 5%
--------------------- -------- --------
Diluted 66.1 70.4 6%
--------------------- -------- -------- ---------
Effects
Year-to-Date AFX of Foreign BFX
Amounts in millions, June 30, % Change Exchange % Change
except per share ----------------- Fav/ Fav/ Fav/
data 2006 2005 (Unfav) (Unfav) (Unfav)
--------------------- -------- -------- --------- ---------- ---------
Revenue:
U.S. $557.2 $516.9 8% 0% 8%
International 177.4 176.1 1% (5)% 6%
--------------------- -------- --------
Core and Total
Revenue $734.6 $693.0 6% (1)% 7%
--------------------- -------- -------- ---------- ---------
Operating Income
(Loss):
U.S. $191.5 $180.4 6%
International (1) 32.4 22.4 45%
-------- --------
Total Divisions 223.9 202.8 10%
Corporate and
Other (2) (52.3) (54.6) 4%
--------------------- -------- --------- -------
Operating Income 171.6 148.2 16%
--------------------- -------- --------- -------
Interest Income 4.3 5.9 (27)%
Interest Expense (9.6) (10.3) 7%
Minority Interest
Income (Loss) (0.2) 0.3 N/M
Other Income
(Expense) - Net (3) (0.1) 3.2 N/M
--------------------- -------- --------
Non-Operating Income
(Expense) - Net (5.6) (0.9) N/M
--------------------- -------- --------
Income before
Provision for Income
Taxes 166.0 147.3 13%
Provision for Income
Taxes 62.5 48.3 (30)%
Equity in Net Income
(Loss) of Affiliates 0.2 0.2 0%
--------------------- -------- --------
Net Income (4) $103.7 $99.2 5%
--------------------- -------- --------
Basic Earnings Per
Share of Common Stock $1.59 $1.46 9%
--------------------- -------- --------
Diluted Earnings Per
Share of Common
Stock (5) $1.54 $1.40 10%
--------------------- -------- --------
--------------------- -------- --------
Weighted Average
Number of Shares
Outstanding:
Basic 65.3 67.9 4%
--------------------- -------- --------
Diluted 67.1 70.6 5%
--------------------- -------- -------- ---------
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 (unaudited).
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.
Schedule 2
The Dun & Bradstreet Corporation
Consolidated Statement of Operations (unaudited) -
Before Non-Core Gains and Charges
---------------------------------
Effects
Quarter Ended AFX of Foreign BFX
Amounts in millions, June 30, % Change Exchange % Change
except per share ----------------- Fav/ Fav/ Fav/
data 2006 2005 (Unfav) (Unfav) (Unfav)
--------------------- -------- -------- --------- ---------- ---------
Revenue:
U.S. $271.2 $253.7 7% 0% 7%
International 96.2 98.0 (2)% (3)% 1%
--------------------- -------- --------
Core and Total
Revenue $367.4 $351.7 4% (1)% 5%
--------------------- -------- -------- ---------- ---------
Operating Income
(Loss):
U.S. $87.8 $82.3 7%
International (1) 23.7 21.3 12%
-------- --------
Total Divisions 111.5 103.6 8%
Corporate and
Other (2) (22.3) (20.1) (11)%
--------------------- -------- --------
Operating Income 89.2 83.5 7%
--------------------- -------- --------
Interest Income 1.6 3.1 (49)%
Interest Expense (4.2) (5.0) 17%
Minority Interest
Income (Loss) (0.1) (0.4) 72%
Other Income
(Expense) - Net (3) 0.4 0.2 N/M
--------------------- -------- --------
Non-Operating Income
(Expense) - Net (2.3) (2.1) (10)%
--------------------- -------- --------
Income before
Provision for Income
Taxes 86.9 81.4 7%
Provision for Income
Taxes 31.8 30.0 (6)%
Equity in Net Income
(Loss) of Affiliates 0.1 - N/M
--------------------- -------- --------
Net Income (4) $55.2 $51.4 8%
--------------------- -------- --------
Basic Earnings Per
Share of Common
Stock $0.86 $0.76 13%
--------------------- -------- --------
Diluted Earnings Per
Share of Common
Stock (5) $0.84 $0.73 15%
--------------------- -------- --------
--------------------- -------- --------
Weighted Average
Number of Shares
Outstanding:
Basic 64.3 67.7 5%
--------------------- -------- --------
Diluted 66.1 70.4 6%
--------------------- -------- -------- ---------
Effects
Year-to-Date AFX of Foreign BFX
Amounts in millions, June 30, % Change Exchange % Change
except per share ----------------- Fav/ Fav/ Fav/
data 2006 2005 (Unfav) (Unfav) (Unfav)
--------------------- -------- -------- --------- ---------- ---------
Revenue:
U.S. $557.2 $516.9 8% 0% 8%
International 177.4 176.1 1% (5)% 6%
--------------------- -------- --------
Core and Total
Revenue $734.6 $693.0 6% (1)% 7%
--------------------- -------- -------- ---------- ---------
Operating Income
(Loss):
U.S. $191.5 $180.4 6%
International (1) 32.4 23.2 40%
-------- --------
Total Divisions 223.9 203.6 10%
Corporate and
Other (2) (42.3) (37.7) (12)%
--------------------- -------- --------
Operating Income 181.6 165.9 10%
--------------------- -------- --------
Interest Income 4.3 5.9 (27)%
Interest Expense (9.6) (10.3) 7%
Minority Interest
Income (Loss) (0.2) 0.3 N/M
Other Income
(Expense) - Net (3) (0.1) - N/M
--------------------- -------- --------
Non-Operating Income
(Expense) - Net (5.6) (4.1) (36)%
--------------------- -------- --------
Income before
Provision for Income
Taxes 176.0 161.8 9%
Provision for Income
Taxes 65.3 60.4 (8)%
Equity in Net Income
(Loss) of Affiliates 0.2 0.2 0%
--------------------- -------- --------
Net Income (4) $110.9 $101.6 9%
--------------------- -------- --------
Basic Earnings Per
Share of Common
Stock $1.70 $1.50 13%
--------------------- -------- --------
Diluted Earnings Per
Share of Common
Stock (5) $1.65 $1.44 15%
--------------------- -------- --------
--------------------- -------- --------
Weighted Average
Number of Shares
Outstanding:
Basic 65.3 67.9 4%
--------------------- -------- --------
Diluted 67.1 70.6 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.
Schedule 3
The Dun & Bradstreet Corporation
Notes to Schedules 1 and 2 (unaudited) and Definitions of Non-GAAP
Measures
(1) The following table reconciles International Operating Income
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, % Change June 30, % Change
Amounts in --------------- Fav/ --------------- Fav/
millions 2006 2005 (Unfav) 2006 2005 (Unfav)
---------------- ------- ------- --------- ------- ------- ---------
International
Operating
Income - As
Reported
(Schedule 1) $23.7 $20.5 16% $32.4 $22.4 45%
Charge Related
to a Dispute
on the Sale
of the
Company's
French
Business - (0.8) N/M - (0.8) N/M
------- ------- --------- ------- ------- ---------
International
Operating
Income - Before
Non-Core Gains
and Charges
(Schedule 2) $23.7 $21.3 12% $32.4 $23.2 40%
------- ------- --------- ------- ------- ---------
(2) The following table reconciles Corporate and Other expenses
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, % Change June 30, % Change
Amounts in --------------- Fav/ --------------- Fav/
millions 2006 2005 (Unfav) 2006 2005 (Unfav)
---------------- ------- ------- --------- ------- ------- ---------
Corporate and
Other - As
Reported
(Schedule 1) $(25.9) $(26.6) 3% $(52.3) $(54.6) 4%
Restructuring
Charges (3.6) (6.5) 46% (10.0) (16.9) 41%
------- ------- ------- ------- ---------
Corporate and
Other - Before
Non-Core Gains
and Charges
(Schedule 2) $(22.3) $(20.1) (11)% $(42.3) $(37.7) (12)%
------- ------- --------- ------- ------- ---------
(3) The following table reconciles Other Income (Expense) - Net
included in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, % Change June 30, % Change
Amounts in --------------- Fav/ --------------- Fav/
millions 2006 2005 (Unfav) 2006 2005 (Unfav)
---------------- ------- ------- --------- ------- ------- ---------
Other Income
(Expense) - Net
- As Reported
(Schedule 1) $0.4 $3.4 N/M $(0.1) $3.2 N/M
Gain on Sale of
a 5% Investment
in a South
African
Company - 3.5 N/M - 3.5 N/M
Lower Costs
Related to the
Sale of Iberia
(Spain and
Portugal) - 0.8 N/M - 0.8 N/M
Charge Related
to a Dispute
on the Sale of
the Company's
French
Business - (1.1) N/M - (1.1) N/M
------- ------- ------- ------- ---------
Other Income
(Expense) - Net
- Before Non-Core
Gains and Charges
(Schedule 2) $0.4 $0.2 N/M $(0.1) $- N/M
------- ------- --------- ------- ------- ---------
(4) The following table reconciles Net Income included in Schedule 1
and Schedule 2:
Quarter Ended Year-to-Date
June 30, % Change June 30, % Change
Amounts in --------------- Fav/ --------------- Fav/
millions 2006 2005 (Unfav) 2006 2005 (Unfav)
---------------- ------- ------- --------- ------- ------- ---------
Net Income -
As Reported
(Schedule 1) $52.2 $47.1 11% $103.7 $99.2 5%
Restructuring
Charges (2.2) (5.9) N/M (6.4) (13.0) N/M
Tax Benefits
Recognized
upon the
Liquidation of
Dormant
International
Corporations - - N/M - 9.0 N/M
Gain on Sale of
a 5% Investment
in a South
African Company - 2.0 N/M - 2.0 N/M
Lower Costs
Related to the
Sale of Iberia
(Spain and
Portugal) - 0.8 N/M - 0.8 N/M
Charge/Increase
in Tax Legacy
Reserve for
"Royalty
Expense
Deductions
1993-1997" (0.8) - N/M (0.8) - N/M
Charge Related
to a Dispute
on the Sale of
the Company's
French Business - (1.2) N/M - (1.2) N/M
------- ------- ------- ------- ---------
Net Income -
Before Non-Core
Gains and
Charges
(Schedule 2) $55.2 $51.4 8% $110.9 $101.6 9%
------- ------- --------- ------- ------- ---------
(5) The following table reconciles Diluted Earnings Per Share included
in Schedule 1 and Schedule 2:
Quarter Ended Year-to-Date
June 30, % Change June 30, % Change
--------------- Fav/ --------------- Fav/
2006 2005 (Unfav) 2006 2005 (Unfav)
---------------- ------- ------- --------- ------- ------- ---------
Diluted EPS -
As Reported
(Schedule 1) $0.79 $0.67 18% $1.54 $1.40 10%
Restructuring
Charges (0.04) (0.08) N/M (0.10) (0.19) N/M
Tax Benefits
Recognized
upon the
Liquidation of
Dormant
International
Corporations - - N/M - 0.13 N/M
Gain on Sale of
a 5% Investment
in a South
African Company - 0.03 N/M - 0.03 N/M
Lower Costs
Related to the
Sale of Iberia
(Spain and
Portugal) - 0.01 N/M - 0.01 N/M
Charge/Increase
in Tax Legacy
Reserve for
"Royalty
Expense
Deductions
1993-1997" (0.01) - N/M (0.01) - N/M
Charge Related
to a Dispute
on the Sale of
the Company's
French Business - (0.02) N/M - (0.02) N/M
------- ------- ------- ------- ---------
Diluted EPS -
Before Non-Core
Gains and Charges
(Schedule 2) $0.84 $0.73 15% $1.65 $1.44 15%
------- ------- --------- ------- ------- ---------
N/M - Not Meaningful
The following defines the non-GAAP measures used to evaluate
performance:
* 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 "revenue growth before the effects of foreign
exchange." We also separately analyze core revenue growth before the
effects of foreign exchange among two components, "organic core
revenue growth" and "core revenue growth from acquisitions." In
addition, we analyze core revenue both before and after the financial
results of our Italian real estate data business because of the
distortion of comparability of financial results due to significant
price increases implemented in 2005 in response to legislative changes
and the uncertainty of other regulatory changes.
* 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 not to 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."
* Cash, cash equivalents and marketable securities minus short-term
debt and long-term debt is referred to as "net debt position."
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.
Schedule 4
The Dun & Bradstreet Corporation
Supplemental Financial Data (unaudited)
Effects
Quarter Ended AFX of Foreign BFX
June 30, % Change Exchange % Change
----------------- Fav/ Fav/ Fav/
Amounts in millions 2006 2005 (Unfav) (Unfav) (Unfav)
---------------------- -------- -------- --------- ---------- --------
Geographic and Customer
Solution Set Revenue:
U.S.:
Risk Management
Solutions $169.7 $165.3 3% 0% 3%
Sales &
Marketing
Solutions 73.7 66.8 10% 0% 10%
E-Business
Solutions 20.2 16.1 25% 0% 25%
Supply
Management
Solutions 7.6 5.5 38% 0% 38%
-------- --------
Core and Total
U.S. 271.2 253.7 7% 0% 7%
-------- --------
International:
Risk Management
Solutions 79.2 82.7 (4)% (3)% (1)%
Sales &
Marketing
Solutions 14.5 13.6 6% (3)% 9%
E-Business
Solutions 1.3 0.6 N/M N/M N/M
Supply
Management
Solutions 1.2 1.1 1% (5)% 6%
-------- --------
Core and Total
International 96.2 98.0 (2)% (3)% 1%
-------- --------
Total Corporation:
Risk Management
Solutions 248.9 248.0 0% (2)% 2%
Sales &
Marketing
Solutions 88.2 80.4 10% 0% 10%
E-Business
Solutions 21.5 16.7 29% 0% 29%
Supply
Management
Solutions 8.8 6.6 32% (1)% 33%
-------- --------
Core and Total
Revenue $367.4 $351.7 4% (1)% 5%
-------- -------- ------- -------- -------
Operating Costs:
Operating
Expenses $117.7 $107.0 (10)%
Selling and
Administrative
Expenses 153.0 153.2 0%
Depreciation and
Amortization 7.5 8.8 16%
Restructuring
Expense 3.6 6.5 46%
-------- --------
Total Operating
Costs $281.8 $275.5 (2)%
-------- --------
Capital
Expenditures $2.6 $1.4 (86)%
-------- --------
Additions to Computer
Software & Other
Intangibles $12.7 $3.6 N/M
-------- -------- -------
Effects
Year-to-Date AFX of Foreign BFX
June 30, % Change Exchange % Change
----------------- Fav/ Fav/ Fav/
Amounts in millions 2006 2005 (Unfav) (Unfav) (Unfav)
---------------------- -------- -------- --------- ---------- --------
Geographic and Customer
Solution Set Revenue:
U.S.:
Risk Management
Solutions $345.8 $330.0 5% 0% 5%
Sales & Marketing
Solutions 157.3 144.2 9% 0% 9%
E-Business Solutions 39.8 31.3 27% 0% 27%
Supply Management
Solutions 14.3 11.4 25% 0% 25%
-------- --------
Core and Total
U.S. 557.2 516.9 8% 0% 8%
-------- --------
International:
Risk Management
Solutions 147.0 150.1 (2)% (5)% 3%
Sales & Marketing
Solutions 26.0 22.9 13% (5)% 18%
E-Business Solutions 2.3 1.0 N/M N/M N/M
Supply Management
Solutions 2.1 2.1 0% 0% 0%
-------- --------
Core and Total
International 177.4 176.1 1% (5)% 6%
-------- --------
Total Corporation:
Risk Management
Solutions 492.8 480.1 3% (1)% 4%
Sales & Marketing
Solutions 183.3 167.1 10% 0% 10%
E-Business Solutions 42.1 32.3 31% 0% 31%
Supply Management
Solutions 16.4 13.5 20% (2)% 22%
-------- --------
Core and Total
Revenue $734.6 $693.0 6% (1)% 7%
-------- -------- ------- -------- -------
Operating Costs:
Operating Expenses $227.1 $202.1 (12)%
Selling and
Administrative
Expenses 311.9 308.4 (1)%
Depreciation and
Amortization 14.0 17.4 20%
Restructuring
Expense 10.0 16.9 41%
-------- --------
Total Operating Costs $563.0 $544.8 (3)%
-------- --------
Capital Expenditures $4.2 $4.5 7%
-------- --------
Additions to Computer
Software & Other
Intangibles $16.8 $5.1 N/M
-------- -------- -------
Year-to-Date Quarter Ended
------------ -------------------
Reconciliation of International Jun 30, Jun 30, Mar 31,
Revenue Growth excluding 2006 2006 2006
Italian Real Estate Data Business: ------------ --------- ---------
Total and Core Revenue AFX 1% (2)% 4%
Unfavorable Effects of Foreign
Exchange (5)% (3)% (7)%
------------ --------- ---------
Total and Core Revenue BFX 6% 1% 11%
Effect of Italian Real Estate Data
Business BFX (1)% (5)% 3%
------------ --------- ---------
Total and Core Revenue BFX excluding
Italian Real Estate Data Business 7% 6% 8%
------------ --------- ---------
Amounts in Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
millions 2006 2006 2005 2005 2005 2005
--------------- -------- ------- ------- ------- ------- -------
Net Debt
Position:
Cash and
Cash
Equivalents $117.1 $126.1 $195.3 $264.6 $245.3 $295.4
Marketable
Securities - 103.2 109.4 - 69.2 34.4
Short-Term
Debt (0.4) (1.1) (300.8) (303.0) (303.3) (301.7)
Long-Term
Debt (354.3) (299.3) (0.1) (0.3) (0.4) -
-------- ------- ------- ------- ------- -------
Net Debt $(237.6) $(71.1) $3.8 $(38.7) $10.8 $28.1
-------- ------- ------- ------- ------- -------
Year-To-Date
------------------------------
% Change
Jun 30, Jun 30, Fav/
Amounts in millions 2006 2005 (Unfav)
----------------------------- --------- ---------- ----------
Free Cash Flow:
Net Cash Provided By Operating
Activities (As Reported) $137.9 $121.4 14%
Less:
Capital Expenditures
(As Reported) 4.2 4.5 7%
Additions to Computer
Software & Other
Intangibles (As Reported) 16.8 5.1 N/M
--------- ----------
Free Cash Flow 116.9 111.8 5%
Add: Legacy Tax Matters 45.6 15.8 N/M
--------- ----------
Free Cash Flow excluding
Legacy Tax Matters $162.5 $127.6 27%
--------- ---------- ----------
Year-To-Date
------------------------------
% Change
Jun 30, Jun 30, Fav/
Amounts in millions 2006 2005 (Unfav)
----------------------------- --------- ---------- ----------
Free Cash Flow excluding Legacy Tax
Matters and the Effect of Adoption
of SFAS 123R:
Free Cash Flow excluding
Legacy Tax Matters $162.5 $127.6 27%
Add: Effect of Adoption
of SFAS No. 123R (6) 25.1 - N/M
---------- ----------
Free Cash Flow excluding Legacy
Tax Matters and the Effect of
Adoption of SFAS 123R $187.6 $127.6 47%
--------- ---------- ----------
Year-To-Date
------------------------------
% Change
Jun 30, Jun 30, Fav/
Amounts in millions 2006 2005 (Unfav)
----------------------------- --------- ---------- ----------
Net Cash Provided By Operating
Activities excluding Legacy
Tax Matters:
Net Cash Provided By Operating
Activities (As Reported) $137.9 $121.4 14%
Add: Legacy Tax Matters 45.6 15.8 N/M
---------- ----------
Net Cash Provided By Operating
Activities excluding Legacy Tax
Matters $183.5 $137.2 34%
---------- ---------- --------
AFX - After Effects of Foreign Exchange
BFX - Before Effects of Foreign Exchange
N/M - Not Meaningful
(6) We adopted SFAS 123R under the "Modified Prospective" method
effective January 1, 2006. Accordingly, there is no corresponding
amount for the 2005 time period.
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.
Schedule 5
The Dun & Bradstreet Corporation
Revenue Reconciliation and Detail
Quarter Ended June 30, 2006
Quarter Ended June 30, 2006 vs. 2005
-----------------------------------------------------
Traditional/VAPs as a
% of Total Customer
AFX BFX Solution Sets/Core
% Effects % ----------------------
Change of Change 2006 2005
Amounts in Fav/ Foreign Fav/ % Product % Product
millions (Unfav) Exchange (Unfav) Line/Core Line/Core
---------------- -------- --------- ------- ---------- ----------
Revenue:
----------------
U.S.:
Risk Management
Solutions:
Traditional 3% 0% 3% 77% 49% 77% 50%
VAPs 2% 0% 2% 23% 14% 23% 15%
Total Risk
Management
Solutions 3% 0% 3% 63% 65%
Sales & Marketing
Solutions:
Traditional 5% 0% 5% 45% 12% 47% 12%
VAPs 15% 0% 15% 55% 15% 53% 14%
Total Sales &
Marketing
Solutions 10% 0% 10% 27% 26%
E-Business
Solutions 25% 0% 25% 7% 7%
Supply Management
Solutions 38% 0% 38% 3% 2%
Core and Total
U.S. Revenue 7% 0% 7%
International:
Risk Management
Solutions:
Traditional (5)% (3)% (2)% 89% 74% 90% 76%
VAPs 4% (1)% 5% 11% 9% 10% 8%
Total Risk
Management
Solutions (4)% (3)% (1)% 83% 84%
Sales & Marketing
Solutions:
Traditional (2)% (3)% 1% 49% 7% 52% 7%
VAPs 15% (3)% 18% 51% 8% 48% 7%
Total Sales &
Marketing
Solutions 6% (3)% 9% 15% 14%
E-Business
Solutions N/M N/M N/M 1% 1%
Supply Management
Solutions 1% (5)% 6% 1% 1%
Core and Total
International
Revenue (2)% (3)% 1%
Total
Corporation:
Risk Management
Solutions:
Traditional 0% (1)% 1% 81% 55% 81% 57%
VAPs 3% 0% 3% 19% 13% 19% 13%
Total Risk
Management
Solutions 0% (2)% 2% 68% 70%
Sales & Marketing
Solutions:
Traditional 4% 0% 4% 45% 11% 48% 11%
VAPs 15% (1)% 16% 55% 13% 52% 12%
Total Sales &
Marketing
Solutions 10% 0% 10% 24% 23%
E-Business
Solutions 29% 0% 29% 6% 5%
Supply Management
Solutions 32% (1)% 33% 2% 2%
Core and Total
Revenue 4% (1)% 5%
---- ------ ---- ---------- ----------
Year-to-Date Ended June 30, 2006 vs. 2005
-----------------------------------------------------
Traditional/VAPs as a
% of Total Customer
AFX BFX Solution Sets/Core
% Effects % ----------------------
Change of Change 2006 2005
Amounts in Fav/ Foreign Fav/ % Product % Product
millions (Unfav) Exchange (Unfav) Line/Core Line/Core
---------------- -------- --------- ------- ---------- ----------
Revenue:
----------------
U.S.:
Risk Management
Solutions:
Traditional 4% 0% 4% 77% 48% 78% 50%
VAPs 10% 0% 10% 23% 14% 22% 14%
Total Risk
Management
Solutions 5% 0% 5% 62% 64%
Sales &
Marketing
Solutions:
Traditional 3% 0% 3% 44% 12% 47% 13%
VAPs 15% 0% 15% 56% 16% 53% 15%
Total Sales &
Marketing
Solutions 9% 0% 9% 28% 28%
E-Business
Solutions 27% 0% 27% 7% 6%
Supply Management
Solutions 25% 0% 25% 3% 2%
Core and Total
U.S. Revenue 8% 0% 8%
International:
Risk Management
Solutions:
Traditional (3)% (5)% 2% 89% 74% 91% 77%
VAPs 11% (1)% 12% 11% 9% 9% 8%
Total Risk
Management
Solutions (2)% (5)% 3% 83% 85%
Sales &
Marketing
Solutions:
Traditional 9% (4)% 13% 51% 8% 52% 7%
VAPs 18% (5)% 23% 49% 7% 48% 6%
Total Sales &
Marketing
Solutions 13% (5)% 18% 15% 13%
E-Business
Solutions N/M N/M N/M 1% 1%
Supply Management
Solutions 0% 0% 0% 1% 1%
Core and Total
International
Revenue 1% (5)% 6%
Total
Corporation:
Risk Management
Solutions:
Traditional 1% (2)% 3% 81% 54% 82% 57%
VAPs 10% 0% 10% 19% 13% 18% 12%
Total Risk
Management
Solutions 3% (1)% 4% 67% 69%
Sales &
Marketing
Solutions:
Traditional 4% 0% 4% 45% 11% 47% 11%
VAPs 15% (1)% 16% 55% 14% 53% 13%
Total Sales &
Marketing
Solutions 10% 0% 10% 25% 24%
E-Business
Solutions 31% 0% 31% 5% 5%
Supply Management
Solutions 20% (2)% 22% 3% 2%
Core and Total
Revenue 6% (1)% 7%
---- ------- ----- ---------- ----------
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.
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